Independent Auditors Report

[ Appropriate Addressee]

We have audited the accompanying financial statements of ABC Company, which comprises the statement of financial position
as at December 21, 20x3, and the income statement, statement of changes in equity ad cash flow statement for the year ended,
and a summary of significant accounting policies and other explanatory information. The financial statements have been
prepared by management based on the financial reporting provision of Section Y of Regulation Z.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statement in accordance with the financial
reporting provision of Section Y of Regulation Z, this includes the design, implementation and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether sue to
fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Philippine Standard on Auditing. Those standards require thaw we comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatements.

An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgement, including the assessment of the risk of material misstatement of
financial statements, whether due to fraud or error, in making those risk assessments, the auditor consider internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but the purpose of expressing an opinion on the effectiveness of the entity’s internal control

An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements presents fairly, in all material aspects, the financial position of ABC Company as at
December 31, 20x3 and (of) its financial performance and its cash flows for the year then ended in accordance with the financial
reporting provision of Section Y of Regulation Z

Basis of Accounting

Without modifying our opinion, we draw attention to Note X to the financial statements, which describes the basis of accounting .
The financial statements are prepared to assist ABC Company to meet the requirements of Regulator DEF. As a result, the
financial statements may not be suitable for another purpose.

Other Matter

ABC Company has prepared a separate set of financial statements for the year ended December 31, 20x3 in accordance with
Philippine Financial Reporting Standards on which we issued a separate auditor’s report to the shareholders of ABC Company
dated March 31, 20x4.
[ Auditor’s Signature]
[ Date of the auditor’s report]
[Auditor’s address]

Prepared by:

May Jennylyn S. Chico

BSA-III