June 16, 2020

The Board of Directors

Asia’s Latin City Transport Services Cooperative (ALTSCOOP)
Mayor Jaldon Street, Canelar
Zamboanga City

Attention: Mr. Moh. Nur A. Askalan

Chairman

Thru: Mr. Alano A. Alihuddin

General Manager

Sir:

At your request, I am pleased to submit this proposal for the audit of the financial
statements of the Asia’s Latin City Transport Services Cooperative (ALTSCOOP) for
the year ending December 31, 2019. My audit will be made with the objective of
expressing my opinion on the year-end financial statements.

I will conduct my audit in accordance with Philippine Standards on Auditing, as well

as the Standard Audit System for Cooperatives. Those Standards require that I plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation.

Because of the test nature and other inherent limitations of an audit, together with
the inherent limitations of any accounting and internal control system, there is an
unavoidable risk that even some material misstatements may remain undiscovered.
In the event that there is a reasonable proof of such, I will bring this matter to your
immediate attention.

May I remind you that the responsibility for the preparation of financial statements
including adequate disclosure is that of the management. This includes the
maintenance of adequate accounting records and internal controls, the selection of
accounting policies and the safeguarding of assets of the cooperative. As part of the
audit process, I will request from management written confirmation concerning
representations made to me in connection with the audit.

I am looking forward to full cooperation with your staff and I trust that they will
make available to us whatever records, documentation and other information are
requested in connection with my audit.
AUDIT FEES AND TIMETABLE

I shall be billing you the amount of TWENTY THOUSAND PESOS ( Php 20,000.00) ,
NET OF TAX, as audit fees , for the audit of the Cooperative’s financial statements,
plus reimbursement of actual incidental charges that we may incur in the course of
the audit like mailing, photocopying, etc.

I will also be available for consultation with regards to various matters or

developments concerning the Cooperative.

I and my staff will be starting my preliminary audit procedures once this

engagement has been agreed upon. I will also be giving, by the end of June, 2020, the
required schedules which I will be needing for purposes of year-end audit. I will be
conducting a conference with your General Manager so as to be able to agree on the
exact date by which they will also be able to comply with my requirements. I will be
glad to inform you of any developments connected with my audit.

Please feel free to call me at (0917) 553-3998 or e-mail me at

melaniemanueloffice@gmail.com for any questions or clarifications with regards to
my proposal.

Thank you

Sincerely yours,

MELANIE M. MANUEL, CPA, MBA

CPA No. 0111591
BOA Reg. No. 7134
TIN No. 937-077-085
BIR Accreditation No. 15-00046-1-2017
CDA Accreditation No. 1528

Conforme:

______________________________
Chairman/General Manager

Vicente Drive, Candido Street, Tetuan, Zamboanga City * Mobile Number 0917-5533998