Location: 50 sq/m

Niconfirm ko kay kyla kasi parang narinig ko nung meeting na hindi ata gagamit ng soil. Sabi niya
gagamit daw tau Cocopeat – parang soil pero hindi. Just to plant lang yung seedling tas pag tumubo
na ililipat na natin sa water. Kasi water-based ung production

Other fees and expenses na baka need include sa capital:

 Delivery fees? (Idedeliver ba natin yung mga produce? D me sure dito) – D NA

 I think ung Water Bill medj mas mahal I think lang AHAHAHAH kasi daily ba tutubigan sa start
tapos water-based na tau – 200+
 Tools & supplies
 Legal stuff
 Storage expenses?
 Housing ng buong farm/Polyhouse/UV plastic (kasi wala pala bubong ung farm so need
protection from sun and the outside and the heat)
 Temperature control units (Fans/Cooling pads/Temperature sensors)
 Water pumps
 Water filtration units
 More hydroponic tubes? In case na NFT structure gagawin natin? (see mo rin ung picture,
like patong-patong ung tubes c mas magamit ng maigi ung space, or sufficient na ba ung 20?)

D ko pa knows kung how much kaya magssearch palang me pero I think malaki magiging need ilabas
pero partner

Hydroponic Set ups / raw materials:

Plastic tubes
Container
Pumping cable
Thermometer
Temperature contro units (150-200)
- https://shopee.ph/search?keyword=temperature%20controller
Water pumps (2k to 3k; 7k to 12k)
- https://iprice.ph/home-improvement/water-pumps/
Water Filtrations
Seeds (5 pesos/pack)
Nutrient solutions
Insecticides
PSA 200 (revised and drafted)
Clark partner (Mr. Earl C. Santos (ECS)) A Manila partner has an investment in a fund of the equity of
the potential client (CEC)

- part of the firm. Based in establish office in Clark, Pampanga

If partner is a part of the firm and review team, it is violation of the code of ethics independence.

Our goal: help Clark establish a client base

Interestingly, the company controller who was just hired this year, was your university senior, Mr.
Simon Collins, and was the top of his class when he graduated. Both of you had served in your
university student organization in the past but never really had much interaction with each other
aside from the student organization related activities.

- A school mate of ours but no direct and personal relationship

Independence Reviews
In your firm, all personnel conduct regular independence confirmation at least
quarterly and every time personnel are to be assigned to an assurance engagement.
Based on the information you have gathered, you noted that a partner in your Manila
office has shares in a fund that has an equity investment with Central Energy
Corporation but the amount of the fund’s investment in the company is minimal
(less than 1% of the company’s entire capitalization). You also found out personally that
the son of your sister (your nephew) is having his internship in the engineering
department of the company. There are no other independence issues noted by you.

- Manila partner has financial interest in the company (Even if not part of review
team, part of the firm)
- Personal connection – nephew internship

The partner in Manila having shares in a fund that has an equity to Central Energy Corporation
constitutes a violation on the auditor’s independence in accordance with the Code of Ethics for
Professional Accountants in the Philippines. According to Section A14 of PSA 200 (Revised and
Redrafted), an auditor is subject to independence in relation to financial statement audit
engagements. According to Section 16, as required by the Code of Ethics, the auditor’s
independence must exist in both state of mind and state of appearance for he/she must form an
opinion without influence from others and be totally separate from the client as to personal
relationship, financial interest, etc. The partner’s financial interest on CEC’s equity will
constitute a violation on the auditor’s independence for:
 He/she is part of the firm providing the assurance engagements;
 An indirect financial relationship between the firm and the client is existing thus not in
the benefit of public interest;
 He/she may take advantage of the situation by influencing the audit team’s opinion to
get incentives from the client;
 The partner’s financial interest breaches both independence of mind and appearance.