V.

Brief description of the current accounting system or data processing of your

division/ department

a. Accounting application currently utilized in data processing

There are diff erent accounti ng applicati on currently uti lized in data processing like : Audit
Quality Review (AQR) program , the SGV Group served as AW’s link to East Asia while AW
afforded SGV access to its highly advanced computer technology and training programs and to its
international network, and EY’s institutional response to the growing technological needs of
businesses, the GDS Automation Central aims to build a digital workforce to support our highest
performing teams. Global Delivery Services (GDS), RPA computer software Canvas- stores all the
accounting data and EY random software use in selecting sample of the population.

b. Implication of the use of the foregoing accounting application

EY Random is an accounting software that is created by Ernst and Young. It is adopted by Sycip,
Gorres and Velayo Co. to process accounting data of their client and produce reliable output that
comply with the accounting standards it is widely used by different accounting worldwide which
partner by Ernst and Young

SGV execute the EY Audit Quality Review (AQR) program to evaluate whether our system of
audit quality control has operated effectively so as to provide reasonable assurance that EY
Philippines and our people comply with applicable professional standards, internal policies and
regulatory requirements

The results of the AQR program and external inspections are evaluated and communicated
within EY Philippines to provide the basis for continual improvement in audit quality, consistent
with the highest standards in the profession.

"The association with AW was a big strategic step, AW because it was the best in IT and they
knew that IT would be a critical competitive factor in our profession.”
The relationship between the two organizations was mutually beneficial. The SGV Group served
as AW’s link to East Asia while AW afforded SGV access to its highly advanced computer
technology and training programs and to its international network.
The Firm’s scope of practice grew to include the whole range of audit, tax and consulting
services using advanced technologies, methodologies and approaches for all industry groups
within a worldwide network of offices, experts and resources while serving clients on a global
scale from a solid Asian base..
The RPA is a technological application that allows employees to configure
computer software, to capture and interpret existing applications for processing a
transaction, manipulating data, triggering responses and communicating with other
digital systems.
 c. Observable strength and weaknesses of the current accounting system

Stength

 simple data entry - it is typically fast, straightforward and only required once Precise and
accurate application
 Precise and accurate application
 fast processes - delays, for example between a sale and invoicing, are minimal
 Produces accounting policies that is reliable and comply with the accounting standard
 automation of reports and analysis - eg on profit and loss, debtors and creditors, customer
accounts, inventory counts, sales, forecasting, etc
 automation of tasks - eg calculating pay, producing payslips, calculating VAT, etc
 reduction of errors - eg transposition of figures, incorrect or incomplete recording of
transactions, etc
 integration with other systems, such as online banking and e-filing
Using accounting software can help you save time and money, and offer you valuable insight into
your business. If you choose the package carefully, investing in a computerised accounting system
can be one of the best decisions you can make for your business.

Weaknesses

 A. Requiring internet connection to function and produce report

 Technical Issues - Computers might acquire a virus and fail. There is also the potential
of users incorrectly performing software tasks that they are not familiar with. If a user tries to do
one thing but inadvertently does something else, it might take some work to undo the error.
 Implementation - manual accounts are generally easier to set up and can be more
flexible than computerised accounting. You will probably need some initial help setting up
accounting software. Your accountant or system provider will usually charge you for this
service.
 Support - you may need to purchase yearly maintenance and support for your package.
 Potential Fraud dependence on computers sometimes leads to bigger problems. With
more software data being housed in the cloud, there are more opportunities for hackers to get
your business's financial data and use it. This puts assets at risk and creates potential liability if
hackers use employer tax identification to open credit cards and business loans. There is also the
risk of someone within the business accessing the information, perhaps pilfering money from
daily deposits and altering the data in the program. Business owners must diligently protect
financial information.
d. Internal control and data security measures

Only employees of SGV have access to EY random, they required independence conformation in
order to access the system. Then it is not accessible to public

Internal quality control system Structure EY Philippines’s reputation for providing high-quality
professional audit services independently, objectively and ethically is fundamental to our success
as independent auditors. They continue to invest in initiatives to promote enhanced objectivity,
independence and professional skepticism.

These are fundamental attributes of a high-quality audit. At EY Philippines, our role as auditors
is to provide assurance on the fair presentation of the financial statements of the companies they
audit.

They bring together qualified teams to provide our services, drawing on our broad experience
across industry sectors and services.

They continually strive to improve our quality and risk management processes so that the quality
of our service is at a consistently high level.

They recognize that in today’s environment characterized by continuing globalization and the
rapid movement of capital and the impact of technology changes the quality of our audit services
has never been more important.

Effectiveness of the quality control system EY has designed and implemented a comprehensive
set of global audit quality control policies and practices.

These policies and practices meet the requirements of the International Standards on Quality
Control issued by the International Auditing and Assurance Standards Board (IAASB). EY
Philippines has adopted these global policies and procedures, and has supplemented them as
necessary to comply with local laws and professional guidelines, and to address specific business
needs.

e. Recommendation and improvement

Efficiency of software because you may experience system outage duration for period of time
that a system fails to provide or perform its primary function. Reasons for unplanned outage
system failures (such as a crash) or communications failures (commonly known as
network outage) when you have poor and unstable internet connection.
Increase storage to handle data and process them accurately

They need to continue to invest heavily in developing and maintaining our audit methodology,
tools and other resources needed to support quality service.

While their market and stakeholders need to continue to demand high-quality audits, they also
demand increasingly efficient and effective delivery of audit services. In addition to the
investments mentioned, EY continues to seek ways to improve the effectiveness and efficiency
of its audit methodology and processes, while improving audit quality.

Enable us continually to improve audit quality, and we believe that taking effective and
appropriate actions to improve quality is important. To seek and learn more from external and
internal inspection activities and to identify root causes of adverse quality occurrences to

VI. Summary of the company accounting practices

In SGV they practice management and leadership because it makes everything else possible.
To adopt a corporate governance structure that allows most decisions to be made by the partner
and a small management team. To keep partners out of admin work so they can focus on clients
and staff. Have a strategic plan and a vision; keep the firm on track. To convincing partners to
bill more aggressively – not gouge – but bill what they are truly worth.  Firms should strive to be
higher priced/lower volume instead of low price/high volume. Metrics: Partner billing rate,
overall net firm billing rate realization

They provide independent assurance on financial and nonfinancial information to

meet regulatory and other stakeholder requirements utilizing world-class business-
process-based methodologies and supporting tools. Delivers a consistent, high-
quality audit anywhere in the world.

They provide review services by performing inquiry and analytical procedures

that provide the Company with a reasonable basis for expressing limited assurance
that there are no material modifications that should be made to the statements in
order for them to be in conformity with generally accepted accounting principles or,
if applicable, with another comprehensive basis of accounting. This service
generally includes limited review of interim financial statements.

They assist companies in the proper applications of accounting principles and

provide awareness of new accounting principles that will become effective.

Their tax professionals provide a diagnostic evaluation of a company’s tax position,

practices, and procedures to determine whether they comply with Philippine tax
laws. There’s a lot of tax accounting practices the firm must do like:
Tax Services, Tax Compliance Review, Tax Planning Engagement, Tax Due,
Diligence Review, Tax Advocacy/Controversy Work
They assist companies in converting their present financial reporting system to
International Accounting Standards (IAS) and in addressing accounting, auditing,
and other reporting needs as well as other associated business issues. US Generally
Accepted Accounting Principles (GAAP) Conversion We assist companies in
converting their present financial reporting system to US GAAP and in addressing
accounting, auditing, and other reporting needs as well as other associated business

Ethical and professional standard

Instilled professional values Sustainable Audit Quality Quality is the foundation for exceptional client
service. It is what we pride ourselves on. It is integral to our work and central to our responsibility to
provide confidence to the capital markets. Delivering quality is at the heart of all we do and supports our
purpose of building a better working world for our people, our clients and our communities. This is
reflected in the Sustainable Audit Quality (SAQ) program, which is the highest priority for our Assurance
practices. Each member firm that makes up our global structure is committed to providing high-quality
audits. In 2015, we launched the SAQ initiative throughout our Assurance practices. SAQ establishes a
governance structure and is focused on continuously improving our audit process. We use the word
“sustainable” in SAQ to demonstrate that this is not a one-off, short-term initiative, but an ongoing
process of improvement. EY has had a common audit methodology for some time; now we have a
common language and processes regarding audit quality. There are six components to SAQ: tone at the
top, strengthening people capabilities, simplification, audit technology and digital, enablement and
quality support, and accountability. SAQ is implemented by each member firm, and is coordinated and
overseen globally. Audit quality and the key elements of SAQ are something every senior manager,
manager and team member must understand and be committed to implementing locally. SAQ is
essential to all our goals and ambitions, and each of the Regional and Area leaders is held accountable
for those goals. We have made significant progress through SAQ. EY’s internal and external inspection
findings globally are showing improvement, and we are producing greater consistency in execution. We
have deployed world-class tools that enhance the quality and value of our audits. Our ability to deliver
consistency is based in part on the use of EY Canvas, our online audit platform. It better supports audit
execution, streamlines communications and enables us to provide a seamless audit.

Strength na nilagay ko sa accounting process pwede sa 8 professional standards wag kalimutang

kumuha sa pdf ng sgv

Instilled professional values Sustainable Audit Quality Quality is the foundation for exceptional client
service. It is what we pride ourselves on. It is integral to our work and central to our responsibility to
provide confidence to the capital markets. Delivering quality is at the heart of all we do and supports our
purpose of building a better working world for our people, our clients and our communities. This is
reflected in the Sustainable Audit Quality (SAQ) program, which is the highest priority for our Assurance
practices. Each member firm that makes up our global structure is committed to providing high-quality
audits. In 2015, we launched the SAQ initiative throughout our Assurance practices. SAQ establishes a
governance structure and is focused on continuously improving our audit process. We use the word
“sustainable” in SAQ to demonstrate that this is not a one-off, short-term initiative, but an ongoing
process of improvement. EY has had a common audit methodology for some time; now we have a
common language and processes regarding audit quality. There are six components to SAQ: tone at the
top, strengthening people capabilities, simplification, audit technology and digital, enablement and
quality support, and accountability. SAQ is implemented by each member firm, and is coordinated and
overseen globally. Audit quality and the key elements of SAQ are something every senior manager,
manager and team member must understand and be committed to implementing locally. SAQ is
essential to all our goals and ambitions, and each of the Regional and Area leaders is held accountable
for those goals. We have made significant progress through SAQ. EY’s internal and external inspection
findings globally are showing improvement, and we are producing greater consistency in execution. We
have deployed world-class tools that enhance the quality and value of our audits. Our ability to deliver
consistency is based in part on the use of EY Canvas, our online audit platform. It better supports audit
execution, streamlines communications and enables us to provide a seamless audit.

We recently launched the EY Canvas Client Portal, which adds to the leading-edge tools already offered
to our auditors. In addition, we have deployed the 2018 Audit Milestones Program globally, which
establishes the use of Milestones on selected PIE audits as one important step to improving results and
sustaining quality across engagements. There is also a network of Quality Enablement Leaders (QELs)
across the practice and an overall Global Audit Quality Committee. They help us in executing and
reviewing root-cause analysis and understanding the impact our initiatives are having in driving quality
outcomes, better behaviors and a continuous improvement mindset. This infrastructure demonstrates
that audit quality is the single most important factor in our decision-making and the key measure on
which our professional reputation stand