Engagement Letter

June 15, 2018
Board of Directors
Grace Corporation
12 Ninoy Aquino Avenue,
Parañaque City, Philippines
To the Board of Directors of Grace Corporation,
You have requested that we audit the financial statements of Grace Corporation which comprise
the statement of financial position as at December 31, 2018, and the income statement, statement
of changes in equity and cash flow statement for the year ended, and a summary of significant
accounting policies and other explanatory information. We are pleased to confirm our acceptance
and our understanding of this audit engagement by means of this letter. Our audit will be
conducted with the objective of our expressing an opinion on the financial statements.
Our Responsibilities
We will conduct our audit in accordance with Philippine Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
Because of the inherent limitations of an audit, together with the inherent limitations of internal
control, there is an unavoidable risk that some material misstatements may not be detected, even
though the audit is properly planned and performed in accordance with PSAs.
In making our risk assessments, we consider internal control relevant to the entity's preparation
of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. However, we will communicate to you in writing any significant
deficiencies in internal control relevant to the audit of the financial statements that we have
identified during the audit.
Unless unanticipated difficulties are encountered, our report will be substantially in the following
form:
[Form and content of the auditor's report]
The form and content of our report may need to be amended in the light of our audit findings.
Management's Responsibility
Our audit will be conducted on the basis that management and 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
Philippine Financial Reporting Standards;
B. For such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due
to fraud or error; and
C. To provide us with:
1. Access to all information of which you are aware that is relevant to the
preparation of the financial statements such as records, documentation and other
matters;
2. Additional information that we may request form you for the purpose of an
audit; and
3. Unrestricted access to persons within the company from whom we determine it
necessary to obtain audit evidence.
As part of our audit process, we will request from management and when appropriate, those
charged with governance written confirmation concerning representations made to us in
connection with the audit.
We look forward to full cooperation from your staff during our audit.
Fees
Our fees which are based on the time required by individuals assigned to the engagement will be
plus out-of-pocket expenses and will be billed as work progresses. Individual hourly rates vary
according to the degree of responsibility involved and the experience and skill required.
This letter will be effective for future periods unless it is terminated, amended, or suspended.
Please sign and return the attached copy of this letter to indicate that it is in accordance with your
understanding of the arrangements for our audit of the financial statements.
Respectfully yours,
Roces Adriano & Salas CPAs
Acknowledged on behalf of Grace Corporation by
Sarah B. Tuason
Treasurer

Engagement Letter

Uploaded by

Copyright:

Available Formats

Engagement Letter

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Engagement Letter

Uploaded by

Copyright:

Available Formats

June 15, 2018

To the Board of Directors of Grace Corporation,

[Form and content of the auditor's report]

Roces Adriano & Salas CPAs

Acknowledged on behalf of Grace Corporation by

You might also like