Purok Kalambuan, Brgy.

Magugpo North,
Tagum City, Davao del Norte
Telephone No. (083) 662-4651
Email address: jeanemaeleniarboo@gmail.com

General Information
Name of the Company: _Thirsty Vendo Machine Co._________________________
Registered Address: Lapu-Lapu Street, Magugpo Poblacion, Tagum City Davao del
Norte_________________________________________________________________
Registration No.: _1029____________ Accounting Year End: __Dec. 31,2020____
Acceptance Procedure: __________ Continuance Procedure: ____ _________

Management
Name and Title
Chloe Aleniar, President/CEO
Alenseis Seismundo, VP Finance
Justin Jones Notarte, Chief Audit
Executive
Name and Title
Phoebus Lloyd Mula, General Manager
Ryan Ledesma, Marketing Manager
Diane Princess Ferido, Branch Manager

Audit Committee of the Management

Name Name
Justin Jones Notarte Dean Patrick Ferido
Aladin Intoy Edsel Siasol

Industry
Food and Beverages Industry
Client Continuance Form
To Evaluate Client’s Risk and Profitability
Criteria 5-No Risk 4-Below 3- Ave. Risk 2-Above Ave. 1-
Ave. Risk Risk High
Risk
Job 
Risk/Complexi
ty
5-100% or 4-90%-99% 3-80%-89% 2-75%-79% 1-75%
more and
below
Profitability 
5=Excellen 4=Occasion 3=Possible 2=Tied to 1=No
t al referrer, if another client referral/N
referrer/Tie referrer/Tied asked o tie
d to an "A" to another
client client

Referral 
Source/Client
Tie in

5=Emergin 4=Mature 3=Transition 2=Startup/ 1=State

g Growth Profitability al Entrepreneuri of
Uncertainty al Decline

Life Cycle 

5=Could 4=A few 3=Full now 2=Reached 1=Doesn'

be doing a additional but future full potential t value
lot more opportunitie potential what we
s do now

Additional 
Potential
Services

5=30 days 4=31-60 3=61-90 2=90-120 1=over

or fewer days days days 120 days

Timeliness of 
Payment
 5=Great to 4=Good 3=OK job, 2=Can be 1=Client
work with environment we get stressful at hates us
and our through it times and
team treats our
enjoys people
them poorly

Satisfaction 

Total 2 2 3 0 0

To Determine if the Client is Good Fit to the Firm

5=Strongly 4=Agree 3=Somewha 2=Disagre 1=Strongly
Agree t Agree e Disagree

Criteria

The client cares about 

our integrity

The client insists the 

work be done correctly
(vs. asking that
shortcuts be taken)

The client is available 

and willing to answer
questions

The client has 

identified a main point
of contact

The client provides 

clear answers in a
timely fashion and
provides any
documentation
requested

We have a good 
relationship with the
client and employees.
There are no concerns 
as it relates to
management's
integrity (reputation of
owners, mgmt,
governance, etc.)

After re-visiting our 

understanding of the
client's annual
operations and
reviewing relevant
reports (tax returns,
regulator reports, etc),
there are no significant
changes or additional
evidence that would
regard the engagement
as high-risk or warrant
us to not want to
associate with the
client

There isn't anything 

that causes us to be
uncomfortable about
the engagement

In working with this 

client, there isn't
anything that would
prevent us from
complying with legal
and ethical
requirements

Firm personnel have 

experience and have
performed at least #
similar engagements in
this relevant industry
or subject matter area

Firm personnel have 

adequate and recent
CPA (within last 12
months) in the same
relevant industry or
subject matter area

Firm personnel have 

the competence and
knowledge to service
the client and comply
with specialized
industry guidelines,
regulations, etc.

The firm is 
independent as
required by the AICPA,
state CPA societies,
state boards of
accountancy,
DOL/ERISA, and other
regulatory bodies, as
applicable

We currently have 
sufficient personnel,
including the use of
specialists, that is
needed for the
engagement in order to
complete the
engagement within the
reporting deadline

The firm has go-to 

A&A resources to call
upon for answers,
should the
engagement pose a
situation of which we
lack expertise (e.g.
network of industry
mentors/specialists;
AICPA Center for Plain
English Accounting or
AICPA Audit Quality
Center)

The proposed fee is 

adequate for the
time/resources that is
required to do a
thorough audit which
will result in a quality
profitable engagement.

Total
6 11 0 0 0

Acceptance Procedure
Financial Statements
Question
Questions: Response Remarks
Entity Financial Information:
Total Asset
Non-Current Asset
Total Liabilities
Non-Current Liabilities
Equity Capital
What accounting standards are to be applied to the
engagement?

What auditing standards are to be applied to the

engagement?

Business Reputation of the Yes/No Other Relevant

Info
Client
Do we have any concerns identifying ownership,
key management or those charged with
governance?
Is there domination of key management by one/few
individuals?
Do we have concerns regarding management's
competence?
Does management have an unhealthy tolerance of
business risk?
Does management's attitude towards financial
performance and business management raise a
concern?
Are there any overall concerns with the integrity or
business reputation of the management or those
charged with governance?

Do we have concerns that the board does not foster

and are not supportive of an ethical business
culture?
Financial and Going
Concern Considerations
Do we have any concerns with the financial
condition of the entity such as:
Financial Statement analysis
Profitability margins and their consistency
Debt covenants/credit ratings
Market presence and growth
Regulators
Others
Nature of Client's
Operations
Does the complexity of the entity's structure
provide us with any cause for concern?

Do the entity operations involve tax complexities?

Is the Entity an SEC Registrant?

Is the entity involved in any past, current or
impending litigation?

Attitude Towards
Interpretation of Accounting
Standards and Internal
Contro Environment
Is ther an attitude towards aggressive interpretation
of accounting standards?
Is ther a concerning attitude towards the internal
control environment?
Is ther a history of unreliable accounting estimates
by management?
Do we have any concerns that management
turnover has had a negative impact on the internal
control environment?
Payment of Fees
Have there been any concerns over management's
ability and willingness to pay for professional
services rendered in the last year?

Scope Limitation
Is ther any indication of an inappropriate limitation
in the scope of work/access to records?

Money Laundering or Other

Criminal Activities
Is the entity operating in an industry or sector
which has an exposure to fraud or illegal acts?

Does the mode of the client's operation or business

practices cast doubt on its integrity?

Non-Reappointment of the
Previous Firm
Have the quality of any of our dealings with the

Is there any concerning reasons why the previous

auditors have not been re-appointed?
Have other firms refused to provide services to this
entity?
Do we have any history of disputes dealing with the
entity?
Business Reputation of
Related Parties
Do we have any concerns with related party
transactions outside the ordinary course of
business?
Does the complexity of related party transactions
give concern with respect to integrity?
Overall Assessment
Does the integrity of the entity, its principal owners,
key management, or those charges with its
governance create an unacceptable risk?
From the scale of 1-10, 10 is the highest and 1 is the
lowest, rate the client risk?
Competence to perform the
Engagement
Indicate the number of years of experience the
engagement manager has in the entity's industry.
Does the entity have operations in any of the
following risk industries or portfolios? If yes,
please indicate.
Are there any concerns regarding the availability of
professional staff to enable completion of the
engagement in accordance with quality standards
and in a timely manner?
Compliance with Ethical
Requirements
Does any partner of the Firm have family or
personal relationships with the entity or any direct
financial or indirect financial interest in the entity?
Does the entity's audit committee have any issue
regarding this engagement?
Is the entity subject to SEC or regulatory rules?
Does this engagement involve a limitation of liability?

Chloe Aleniar _
Client’s Signature