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ATTY. LOUIE A. RASTICA

Certified Public Accountant

AUDITOR’S REPORT

AND

AUDITED

FINANCIAL STATEMENTS

Of

BALWARTE, FLORO TUBAL

Bunao, Dumaguete City, Negros Oriental
Philippines

Philippine Peso
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BALWARTE, FLORO TUBAL

Bunao, Dumaguete City, Negros Oriental
Philippines

STATEMENT OF MANAGEMENT RESPONSIBILITY

FOR FINANCIAL STATEMENTS

The management of BALWARTE, FLORO TUBAL is responsible for all information and representations
contained in the financial statements’ year ended 2019, 2020, 2021 and 2022. The financial statements
have been prepared in conformity with Financial Reporting Standards applicable to Small and Medium-
sized Entities (SME’s) in the Philippines and reflect the amounts that are based on the best estimates
and informed judgment of management with an appropriate consideration to materiality.

In this regard, management maintains a system of accounting and reporting which provides for the
necessary internal controls to ensure that transactions are properly authorized and recorded, assets
are safeguarded against unauthorized use or disposition and liabilities are recognized.

The proprietor reviews the financial statements before such statements are approved.

Atty. Louie A. Rastica, CPA, the independent auditor appointed by the proprietor, has examine the
financial statements of the business in accordance with the Philippines Standards on Auditing and the
Standard Audit Systems for Small and Medium-sized Entities (SME’s) and has expressed his opinion
on the fairness of presentation upon completion of such examination in his report to the proprietor.

BALWARTE, FLORO TUBAL

Proprietor
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ATTY. LOUIE A. RASTICA

Certified Public Accountant-Lawyer
Contact # Tel No. (035) 523-5529
Batinguel, Dumaguete City
Dumaguete City

INDEPENDENT AUDITOR’S REPORT

BALWARTE, FLORO TUBAL

Proprietor
Dumaguete City, Negros Oriental

Opinion

I have audited the accompanying Financial Statements of BALWARTE, FLORO TUBAL which comprise
the statement of financial condition year ended 2019, 2020, 2021 and 2022 and the statement of
comprehensive income, statement of cash flows, and statement of changes in equity for the year then
ended, and notes to financial statements.

In my opinion, the accompanying financial statements present fairly, in all material respects the
financial position of BALWARTE, FLORO TUBAL year ended 2019, 2020, 2021 and 2022 its Statement of
Comprehensive Income and its cash flows for the year then ended in accordance with Financial
Reporting Standards applicable to Small and Medium-sized Entities (SME’s) in the Philippines.

Basis for Opinion

I conducted my audit in accordance with Philippine Standards on Auditing (PSAs). My responsibilities

under those standards are further described in the Auditor’s Responsibilities for the Audit of Financial
Statements section of my report. I am independent of the company in accordance with the Code of
Ethics for Professional Accountants in the Philippines (Code of Ethics) together with the ethical
requirements that are relevant to my audit of the financial statements in the Philippines, and I have
fulfilled my other ethical responsibilities in accordance with these requirements and the Code of Ethics.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
opinion.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of the financial statements in accordance with Philippine
Reporting Standards and for such internal control as management determines is necessary to enable
the preparation of the financial statements that are free from material misstatement, whether due to
fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the company or to
cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting
process.

Auditor’s Responsibility for the Audit of the Financial Statements

My objectives are to obtain reasonable assurance whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.
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As part of an audit in accordance with PSAs, I exercise professional judgment and maintain
professional skepticism throughout the audit. I also:

 Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
 Obtain an understanding of internal control relevant to the audit 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 company’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.

 Conclude on the appropriateness of management’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, I am required to
draw attention in my auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit
evidence obtained up to the date of my auditor’s report. However, future events or conditions
may cause the company to cease to continue as a going concern.

I communicate with those charged with the governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that I Identify during my audit.

Report on Regulatory Requirements

My audit was conducted for the purpose of forming an opinion on the basic financial statements taken
as a whole. The supplementary information required under Revenue Regulations Nos. 15-2010 and 19-
2011 on taxes, duties and license fees paid or accrued during the taxable year, taxable income, and
deductions to the financial statements are presented for purposes of filing with the Bureau of Internal
Revenue and is not required as part of the basic financial statements. Such information is the
responsibility of the management. The information has been subjected to the auditing procedures
applied in our audit of the basic financial statements. In my opinion, the information is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.
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ATTY. LOUIE A. RASTICA

Certified Public Accountant
Contact # (035) 523-5529
Batinguel Dumaguete City
Dumaguete City

REPORT OF INDEPENDENT CERTIFIED PUBLIC

ACCOUNTANT TO ACCOMPANY INCOME TAX RETURN

I have examined the financial statements of BALWARTE, FLORO TUBAL on which I have
rendered the attached report year ended 2019 , 2020, 2021 and 2022.

In compliance with Revenue Regulations V-20, I am stating that I am not related by

consanguinity or affinity to the management or to the officers of the organization.

ATTY. LOUIE RASTICA

CPA - Lawyer
PRC license Number 96167
BIR Acc. No. 12-004410-1-2008