DATE

CLIENT

CLIENT ADDRESS

This engagement letter will confirm the terms and conditions upon which Sher, Lyn, Anacion &
Co. (“we” or “SLA” ) has been engaged to audit and report on the financial statements of ___ for
the year ending December 31, 2020.

We will conduct our audit in accordance with Philippine Standards on Auditing (“PSAs”). Those
standards require that we are independent and that we fulfill our ethical responsibilities that are
relevant to our audit.

The objective of our audit is to obtain reasonable assurance about whether financial statements
are free from material misstatements, whether due to fraud or error, and to express our opinion
on whether the financial statements present fairly, in all material respects, the financial position,
financial performance, and cash flow of the Company in accordance with Philippine Financial
Reporting Standards (“PFRS”).

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates and related disclosures made by the
management, as well as evaluating the overall financial statement presentation.

Because of the inherent limitations of an audit, together with the inherent limitations of internal
control, there is unavoidable risk that some material misstatements may not be detected, even
though the audit is properly planned and performed in accordance with the PSA.

Our audit will be conducted on the basis that management and where appropriate, those charged
with governance, acknowledge and understand that they have responsibility:

a. For the preparation and fair presentation of the financial statements in accordance with
PFRS;

b. For such internal control as management determines is necessary to enable for the
preparation of financial statements are free from material misstatements, whether due to fraud or
error; and

c. To provide us with; (1) access to all information of which the management is aware of
that is relevant to the preparation of financial statements such as documents and other matters.
(2) Additional information that we may request from the management for the purpose of audit.
(3) Unrestricted access to persons within the Company from whom necessary to obtain audit
evidence.

Management failure to provide us information referred to above or access to persons within the
company may cause us to defer our report, modify our procedures, or even terminate our
engagement.

Management is also responsible for adjusting financial statements to correct material

misstatements and affirming to us its representation letter that the effects of any uncorrected
misstatement are immaterial, individually and in aggregate, to the financial statements as a
whole. As part of our audit process, we will request from management written confirmation
concerning representation made to us in connection with the audit.

We look forward to full cooperation with your staff and we trust that they will make us available
to all documentation, records, and other information requested necessary to the audit. Our fees,
which will be billed as work progresses, is based on the time required by the individual assigned
to the engagement plus out of pocket expenses (OPE). Individual hourly rates vary according to
the degree of responsibility involved and the skills required.

If this letter correctly expresses your understanding, please sign the enclosed copy where
indicated and return it to us.

We appreciate the opportunity to serve you and trust that our association will be a long and
pleasant one.

Sincerely,