Principle 9.

The company should establish standards for the appropriate selection of an external auditor, and
exercise effective oversight of the same to strengthen the external auditor’s independence and
enhance audit quality.

Importante sa sayo na business/company an trustworthy reports para makahatag saira appropriate ngan
reliable information para sa decision-making. Hiring an external auditor can give a crucial status report
specially pag-abot sa Financial Status (nga sayo sa pinaka importante na report kay mau gud an
makakahatag saira status sa ira kwarta). Now if ini na mga external auditor dire umagi sin selection
standards before sira ig-hire san company dako an magigin impact sa decision-making process san
company which could leads to a more serious circumstances or problems later on.

Sayo na dapat himuon magkayaon standard an company na magbackground check sa External Auditor na
ighihire nira nga maii-scrutinize an level of competence san external auditor based sa ira past
performances. Importante ini para makasigurado an company na makakahatag sin tama ngan totoo nga
report an ira ig hihire na auditor. Siguro pwede sira mag research about firms na nakabuild na goodwill
through years or magbasa mga tabloids or websites about firms.

After sun, pinaka importante para makahatag an External Auditor unbiased ngan fair opinion dapat
independent sya sa company. Though may na naka set talaga na level of independence an External
Auditor, mas better kun pati an sa company mismo may standard para sine kay if waray or makaligtaan
ini sa selection standard before sira ighire pwede loko-lokohun la an report ngan magpasa favorable nga
result where in fact an reality dire ngay an. Pwede kasi makalusot an mga auditor na tanyag na or close
na sa management or may kapamilya sa sulod san company nga pwede makaaffect ngan magcause
biased opinion (Familiarity Threat). Pwede before ighire an auditor ighighlight sa meeting with external
auditors an responsibility san both party.

Principle 10.

Going Concern Issue

The company should ensure that the material and reportable non-financial and sustainability issues
are disclosed.

Business world nowadays is more tight and competitive specially that we are now in an era of
globalization. Companies should be flexible enough to cope up with every changes to attract more
buyers, investors and market.
Goodwill is vital im every company because this is one of the factors that catches the eyes of every
person who wants to deal or enter into a business transaction. Investors lets say trust their money to a
company to make sure it can give them a benefit at the end of the day. Syempre pipilion san tawo an
company na mapapatanag sira sa ira kwarta and to achieve this, the company should be open to the
public or its investors. Disclose dapat niya an mga material and important reportable non-financial data
specially when it comes to sustainability kay it means may capacity kam na mag grow ngan magprogress,
iisipon san investors may hingangadtuan ira kwarta. Sayo sa concern san investors permi lakin scam,
example sa networking kaya damo an issue nga scam ngan damo nag ruruhaduha kay risky dire kasi
naiimud an security san ihahatag na kwarta.

Kailangan lat magdisclose an company permanente updates sa ira operation, specially an short-term and
long-term goals para mahibaruan lat san investors and employees an kaganapan san company nga may
concrete future na gin aaim para makahatag pa sin mas maupay na services sa ngatanan nga involve and
para lat makaattract pa sin damo na investors. Sayo lat nga rason para ig disclose an ira short term and
long term goals is to be stable in the market, pwede kasi maforecast san ira hihimuon na goals an mga
possible scenario in the future ngan of course para may guide an company to achieve its peak and
prevent any tremendous malfunctions ahead.

Principle 11.

Communication is very vital in decision making.

The company should maintain a comprehensive and cost-efficient communication channel for
disseminating relevant information. This channel is crucial for informed decision-making by
investors, stakeholders and other interested users.

Business just like a relationship if there is an error in communication it could leads to break-up or
separation.

In every business communication system should be stable and functions efficiently and effectively. A
small misunderstanding can be the start of company's downfall. The world of business is full of decision-
making situations whether to accept it or not, go for it or not, enter into or not and before a decision is
made a constant communication should be done. Needed reports should be communicated promptly
and accurately for them to be useful. Data needed should be in relevant and accurate so that it can be
helpful. Board of Directors and other concern individuals should be properly informed for them to
generate a realiable decisions. Thus, the company must cost-efficiently plan and handle the
communication system to be used and it should be directed to everyone in the company.

Principle 12.

Importance of Internal Control

To ensure the integrity, transparency and proper governance in the conduct of its affairs, the
company should have a strong and effective internal control system and enterprise risk
management framework.

Parang an importance man la sa internal control an ginsusugad ngadi. “Conduct of its affairs” kay an
business transactions an critical kun kay nano dapat mayda internal controls. Kailangan internal control
para maensure an integrity or an truthfulness sa transactions. Transparency kasi pag mayda internal
control, more likely nga masusuportahan an existence sa transaction kay syempre nag-agi siya sa internal
control so masusugad mo nga reliable an mga transactions sa sayo nga business nga may ada maupay
nga internal cotnrols. Proper governance man kasi an pag-account sa ira (transactions gihap)

to handle the company effectively and efficiently there should be controls in every activity being done
this will hinder any backlogs or misadministration that may cause so much trouble later on.

Sa Enterprise Risk Management man kailangan siya sa Company para ma mitigate an mga flaws na mag
aarise

di man kasi maiiwasan an mga Risk sa company at least mayda sira pan tapar sa mga risk na pwede mag
arise

Prevention is better than cure. Many problems or malfunctions may arise in any business operation, it
may be on machines, equipment and also people in the company. And every malfunctions that arise
consequent to loses and decreasing income. Before this problem occurs, company should create a strong
internal control policies. It may be the time alloted for every machine used, a proper authority to
manipulate and use the equipment or the competence of employees in performing his/her designated
function. Each role in the business should be properly controlled para dire magcause sin dako na
problem later on. Sa pag handle para san Cash san company dapat may na tulo na internal control
(Control para sa authorization, recording ngan custody)

After formulating of Internal Control, combat should also develop an Enterprise Risk Management this
could help the company in dealing problems ahead. Syempre dire maiiwasan nga may mga problema tlga
na maabot sa sayo na business ngan para masolutionan dayun kailangan mayda Risk Management an
company na mau an magigin basis para maresolve an problems.