JEREMIAS C.

GARCIA
Certified Public Accountant
Board Certificate No. 0027698
408-C Cerin Bldg. Maharlika Hi-way
Dicarma, Cabanatuan City

AUDIT ENGAGEMENT LETTER

December 29,
2015
THE BOARD OF DIRECTORS
ALIAGA BROTHERHOOD FOR REFORM ORGANIZATION
MULTIPURPOSE COOPERATIVE
Poblacion East II, Aliaga, Nueva Ecija
Attention: MR. LEONARDO V. GUNGAB
Chairman
Gentlemen/Ladies:
You have requested that I audit the statement of financial position of ALIAGA BROTHERHOOD FOR
REFORM ORGANIZATION MULTIPURPOSE COOPERATIVE as of December 31, 2015 and the related
statements of activities, equity and cash flows for the years then ended. I am pleased to confirm
my acceptance and my understanding of this engagement by means of this letter. My audit will be
with the objective of my expressing an opinion on the financial statements.
I will conduct my audit in accordance with Philippine Standards on Auditing. Those Standards
require that I plan and perform the audit and to obtain reasonable assurance that the financial
statement 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 financial statements presentation.
Because of the test nature and other inherent limitations of an audit, together with the inherent
limitations of any accounting internal control system, there is an unavoidable risk that even some
material misstatements may remain undiscovered.
In addition to my report on the financial statements, I expect to provide you with a separate letter
concerning any material weaknesses in the accounting and internal control system, which may
come to my knowledge.
I remind you that the responsibility for the preparation of financial statements including adequate
disclosure is that of the management of the Company. This includes the maintenance of adequate
accounting records and internal controls, the selection and application of accounting policies, and
safeguarding of the assets of the company. As part of my audit process, I will request from the
management written confirmation concerning representation made to me in connection with the
audit.
My professional fee for the fiscal year ended 2015 examination of ALIAGA BROTHERHOOD FOR
REFORM ORGANIZATION MULTIPURPOSE COOPERATIVE shall be P 3, 000.00 which will be paid in
the following manner:
Upon completion

100%

The fee estimate quoted above assumes I will receive appropriate assistance from your staff in the
preparation of the schedules and other matters. I look forward to full cooperation with your staff
and I trust that they will make available to me whatever records; documentation and other
information that are requested in connection with my audit.
Out-of-pocket expenses incurred in connection with the engagement will be for your account and
will be included in my billings. This shall be included in the final billing upon approval of the Board.
My maximum liability to ALIAGA BROTHERHOOD FOR REFORM ORGANIZATION MULTIPURPOSE
COOPERATIVE for any reason, including my negligence, relating to the services under this letter
shall be limited to the fees paid to me for the services or work product giving rise to the liability,
except to the extent finally determined to have resulted from my gross negligence or willful
misconduct.
If you intend to publish or otherwise reproduce the financial statements together with my report
(or otherwise make reference to me) in a document that contains other information, you agree to
provide me with a draft of the document to read and comment on before it is printed or
distributed. Furthermore, you agree that the terms of this engagement do not encompass an
undertaking by me (1) to consent, by means of a separate letter or otherwise, to the inclusion of
my auditors report on the financial statements referred to above in a filing with any regulatory
agency or otherwise reissue my report for purposes of securities offering or other financing
transaction, or (2) to acknowledge reliance on my report by others.
I look forward to full cooperation with your staff and I trust that they will make available to me
whatever records; documentation and other information are requested in connection with my
audit.
This letter will be effective for this engagement only unless it is terminated, amended or
superseded by either party with a written notice at least two (2) months period to date of intended
termination.
Please sign and return the attach copy of this letter to indicate it is accordance with your
understanding of the arrangements for my audit of your financial statements should you have any
comment on the top of those already stipulated above, please feel free to do so, so will be able to
incorporate the same in this engagement letter.
Very Truly Yours,
Agreed and accepted by:

JEREMIAS C. GARCIA

MR. LEONARDO V. GUNGAB

Independent Auditor
TIN: 139-135-693

Chairman

CPA Certificate No. 0027698

PTR No. CBN-0740789 01-04-2016, Cab. City
PRC BOA Acc. No. 2943, Aug.11, 2015 to expire on Dec. 31,

2018
CDA Reg, No. CEA 0486 dated 12-20-13 to expire on 12- 1916
BIR Accreditation No. 04-005239-1-2014, Issued Jan. 13, 2014
to expire on January 13, 2017