Planning File

CONSULTANT LJJ & ASSOCIATES
SOBOSE COMPANY SA
FINANCIAL AUDIT AS OF 03/31/2012
LP
COMPANY SOCIEDAD BOLIVANA DE CEMENTO SA Period: 2012
PLANNING FILE
REF.
DESCRIPTION
P/T
PLANNING MEMORANDUM LPA
AUDIT PROGRAMS LPB
AUDIT APPROACH SYNOPSIS WORKSHOP LPC
DECISION SHEET BY COMPONENTS LPD
TREND ANALYSIS OF FINANCIAL STATEMENTS LPE
ANALYSIS OF FINANCIAL RATIOS AND REASONABILITY TESTS LPF
SUMMARY OF COMPANY INFORMATION LPG
BACKGROUND AND GENERAL DATA OF THE COMPANY LPH
CONCLUSION OF THE INTERNAL CONTROL SYSTEM LPI
CONCLUSION OF DESIGN TESTS LPJ
INTERNAL CONTROL DESIGN QUESTIONNAIRE (EXGRESS) LPK
INTERNAL CONTROL DESIGN QUESTIONNAIRE (INCOME) LPL
TESTS OF COMPLIANCE WITH INTERNAL CONTROL (EXGRESS) LPM
TESTS OF COMPLIANCE WITH INTERNAL CONTROL (ENTRY) LPN
INTERNAL CONTROL DEFICIENCIES (EXGRESS) LPO
INTERNAL CONTROL DEFICIENCIES (INCOME) LPP
NARRATIVE OF INTERNAL CONTROL DESIGN LPQ
FLOW GRAMS OF INTERNAL CONTROL DESIGN LPR
CONCLUSION OF COMPLIANCE TESTS LPS
COMPUTERIZED INFORMATION SYSTEM EVALUATION LPT
ADMINISTRATIVE INFORMATION AND CORRESPONDENCE LPU
TERMS OF REFERENCE, PROPOSAL AND SIGNED CONTRACT LPV
EARRINGS SHEET LPW
INITIALS RUBRIC AND DATE

Post Initials Signature Date
Senior auditor J.R. 24/12/2012
Audit Manager J.F. 24/12/2012
Partner LQ 24/12/2012
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SOBOSE COMPANY SA
PLANNING MEMORANDUM
CONTENT
1. TERMS OF REFERENCE
1.1 Nature of work
1.2 Objective of the audit
1.3 Quantity and types of report to be issued
1.4 Scope of review and restrictions
1.5 Standards, principles and legal provisions to apply
1.6 Auditor responsibilities
2. BACKGROUND, OPERATIONS OF THE COMPANY AND THEIR INHERENT RISKS

2.1 Background and objectives of the company
2.2 Organization and structure
2.3 Financing (main partners and creditors)
2.4 Nature of operations (What it does, how it does it and for whom it does it)
2.5 Sources of resource generation
Resource application
Management information issued
Existing economic circumstances
Workforce (quantity and quality of employees, influence of unions)
Applicable laws and regulations (tax, regulations, environmental, etc.)
Internal Audit Capacity
External audit reports and results
Inherent risk of the organization, operations, information and personnel competence
3. INFORMATION SYSTEM
Structure and personnel of the systems unit
Types of software application
Number of equipment and age
Backup Frequency
4. UNDERSTANDING COMPONENTS OF INTERNAL CONTROL
Control Environment - Management philosophy in relation to internal control, independent

controls, general controls
risk assessment
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SOBOSE COMPANY SA
Control Activities
Information and communication
Supervision or monitoring
5. ACCOUNTING POLICIES
For each item in the financial statements
6. OPERATING UNITS
Description of the most important operating units
7. AUDIT RISK FACTORS AND AUDIT APPROACH BY ITEMS

financial statements
Inherent risk
Control Risk
Detection risk
Audit risk
Audit approach by critical areas or items
 Description of the relative importance of the item or account
 Critical objective by financial statement item
 Identification of inherent and control risks
 Most important audit procedure
8. AUDIT EMPHASIS ROTATION

When it corresponds to recurring audits
9. CONSIDERATIONS ON SIGNIFICANCE
Define the level of materiality by item and/or account
10. INTERNAL AUDIT SUPPORT
11. SUPPORT FROM OTHER PROFESSIONALS
12. WORK ADMINISTRATION
13. WORK PROGRAMS
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SOBOSE COMPANY SA
1. TERMS OF REFERENCE
1.1 Nature of audit work
In compliance with the contract signed on October 15, 2012 with the Industrial Company
SOBOCE SA, the planning of the examination on the reasonableness of the financial statements
of the 2012 management has been carried out, referring to the following statements:
 Balance sheet
 Statement of income
 Statement of changes in equity
 Statement of cash flows
 Notes to the financial statements
1.2 Audit Objective
The objective of the Financial Audit is to obtain an independent professional opinion regarding
the reasonableness with which the Financial Statements of the Industrial Company SOBOCE
SA were prepared and whether they present reasonably in all significant aspects, and in
accordance with the Accounting Standards. National or International, the equity and financial
situation, the results of its operations, cash flows, the evolution of net worth, for the year from
April 1, 2011 to December 31, 2012, based on the review of the documentation generated by the
organizational areas that make up the entity, and in accordance with the provisions of the
technical specifications indicated in this document and the Auditing Standards issued by the
College of Auditors.
1.3 Quantities and types of reports to be issued
 Audit opinion on the reasonableness of the financial statements as of December 31,

2012
 Report with recommendations of the internal control system and the accounting manage-
ment system.
 Opinion on supplementary tax information or (report on tax situation)
 Report on the minimum audit procedures carried out
 Report with recommendations of responsibilities if applicable
1.4 Scope of review and restrictions
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SOBOSE COMPANY SA
Our audit will cover the operations between April 1, 2011 and December 31,
2012; however, for analysis purposes, the report is scheduled to be delivered
on December 24, 2012.
1.5Regulations, principles and legal provisions to apply
Rules and legal provisions to apply:
 Accounting standards, issued by the National Technical Council for Auditing and Ac-
counting of the College of Auditors of Bolivia.
 International Financial Reporting Standards (IFRS)
 Auditing Standards, issued by the National Technical Council for Auditing and Account-
ing of the College of Auditors of Bolivia.
 International Standards on Auditing (ISA)
 Main legal provisions inherent to the entity, such as Law 843 and 1606 and its supreme
decrees related to taxes; General Labor Law and Supreme Regulatory Decrees, Social
Security Law, Law 2492 Tax Code, Law 1333 on the Environment and others.
 Regulatory documents of the entity, manuals, regulations and others.
1.6 Auditor's responsibility
Issuing an opinion on the reasonableness of the Financial Statements, results of operations and
changes in financial position, in accordance with Generally Accepted Accounting Principles.
Issue an opinion or report through which you express your opinion, if circumstances require it,
refrain from giving an opinion.
2 BACKGROUND, OPERATIONS OF THE COMPANY AND ITS INHERENT RISKS
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2.1 BACKGROUND AND OBJECTIVES

SOBOSE COMPANY SA
The industrial company SOBOCE SA ..., is legally constituted under testimony No. 155/97 as a
public limited company, with a share capital of Bs1,663,000.00 whose main activity is the
manufacture of cement, ready-mixed concrete, concrete products, the exploitation and
production of stone aggregates, the manufacture of any other type of construction materials and
any other activity related to construction. Likewise, the company's purpose is the development
and real estate investments, the provision of national and international cargo transportation
services and the purchase of raw materials and inputs for the production, marketing and
distribution of products and/or services that are manufactured or made. for the company's social
responsibility projects, including handmade toys.
It is registered with the National Tax Service with NIT 120235024.
The main address of its activities is located at Calle Mercado Nº 1075 in the city of La Paz
Bolivia.
 Mission
“Satisfy with excellence the needs of our clients with products and services associated with
cement and its applications, being the best option for them.”
 Vision
“We have strengthened our leadership in the Bolivian cement industry; we are a profitable and
competitive organization; We live a high-performance culture and are a socially responsible
company.
Our company is the best place to work in Bolivia.”
The main objective of the SOBOCE SA industry is:

 Guarantee our Shareholders a constant generation of value and satisfactory and sustain-
able profitability.
 Promote for our Personnel an adequate work environment, participatory and highly com-
municative, where they can develop comprehensively and be recognized for their perfor-
mance.
 Contribute to the development of the community and protect the Environment.
 Develop lasting and mutually beneficial relationships with our Clients and Suppliers.
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2.2 ORGANIZATION AND STRUCTURE
Within the organizational structure, an organizational chart is proposed that reflects the
education of each and every one of the participating sectors of the industry in a vertical
SOBOSE COMPANY SA
hierarchical scheme with the delimitation of levels and their respective relationships that allow a
better appreciation of responsibilities and functions. , which will be better understood with the
functions manual later.
Regarding the delimitation of authority and the dynamics that this represents, this
complementarity between those who participate in a certain activity can be better appreciated.
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SOBOCE SA ORGANIZATION CHART

SOBOSE COMPANY SA
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- Chairman
- Principal directors
SOBOSE COMPANY SA
Made up of 6 partners, they correspond to the highest decision-making and deliberation

body whose main responsibility is to supervise the management of the company SOBOCE
SA
Its organic structure includes the Assembly of the partners of the industrial company
SOBOCE SA .
- Executive level , made up of general management and regional management
- Administrative level , made up of National Operations Management, National Sales and
Marketing Management, National Project Management, National Logistics Planning Man-
agement, National Finance Management, National Technology and Finance Management,
National HR and Administration Management.
- Operational Level, made up of Technical Managers, salespeople and Workers
2.3 FINANCING
Main partners
The company SOBOCE SA supplies raw materials and inputs for production in the local and
national market, mainly from the following suppliers:
Main creditors
TYPE OF AMOUNT
CREDITOR CREDITOR B.S.
Maria Martinez Ortega Partner 300.000
Teresa Ortuño Ortega Partner 300.000
Viviana Torres Andia Partner 228.687
TOTAL 828.687
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2.4 NATURE OF OPERATIONS
The main activities of the cement industry are the following:

SOBOSE COMPANY SA
 Cement manufacturing. IP-40 and IP30

 Premixed concrete.
 simple concrete
 High resistance concrete
 Pumpable concrete
 Concretes with special characteristics
 Concretes for rigid pavements
 Cement floor and cement mortars
 Concrete products.
 The exploitation and production of stone aggregates.
 Sand
 Gravel
 Gravel
 The manufacture of any other type of construction materials
Likewise, the Company's purpose is the development and real estate investments, the provision
of national and international cargo transportation services and the purchase of raw materials and
inputs for the production, marketing and distribution of products and/or services that are manu-
factured or made. for the company's social responsibility projects, including handmade toys
As it does?
 80% of the purchases made by SOBOCE in value are concentrated in 62 strategic suppli-
ers.
 15 of the main suppliers supply USD 14 million in different items, which is equivalent to 51%
of the total purchases made by the company.
 SOBOCE complies with the provisions of Law 1008, Supreme Decree No. 25846, rules, reg-
ulations and resolutions established by the General Directorate of Controlled Substances
(DGSC) for the purchase, administration, use, storage and internal transport of precursors
for industrial use; For this, it establishes appropriate control mechanisms that guarantee the
legal security of the company and therefore correct acquisition and administration of all pur-
chases made for this concept.
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Who does it do it for?
Market participation
SOBOSE COMPANY SA
 Soboce 48.2%
 Coboce 18.6%
 French 27.9%
 Itacamba5.3%
2.5 SOURCES OF RESOURCE GENERATION
 Sales revenue
 Permanent investments:
National Cement Factory SA (FANCESA)
Specialists in Limestone Minerals SA (ESMICAL)
Exploradora de Minerales Calcáreos Ltda. (EXMICAL)
Comprehensive Consignment and Services Company (CIS)
Banco BISA SA
Fees in telephone cooperatives
Others
 Partner loans
2.6 RESOURCE APPLICATION
PHILOSOPHY:
SOBOCE is a company that, in addition to offering quality products and services, generating
profits, employment and paying taxes, challenges its creativity to identify problems that plague
its community and proposes alternatives for their solution.
COMMITMENT:
SOBOCE, committed to the sustainable development of Bolivia, has the mission of improving
the living conditions of the communities where its productive operations and suppliers of raw
materials are located, based on the principle that all Bolivians have the right to a decent life with
opportunities in education, health, housing and work.
POLICY:
SOBOCE, by policy, allocates 10% of its profits and 10% of its executives' time to fulfill its
mission of commitment to its community.
SOBOCE has prioritized six lines of action for the development of social responsibility projects
and activities aimed at improving the quality of life of its community. The lines of action
developed are:
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a) Competitive Children and Youth

SOBOSE COMPANY SA
- The JISUNÚ FOUNDATION develops its activities in the areas of Education, Health and
Productive Development, strengthened by the values of solidarity, ethics, gender
equality, participation, integrity and respect.
- The ESTACIÓN CENTRAL Project offers a sports, cultural and pedagogical support
meeting space aimed at motivating and promoting the active participation of young
people and children in the city of Viacha.
- The SOBOCE RUNNING CLUB Project promotes athletics as an integrative and
accessible sport through a training program and the organization of races.
- The ONE CHILD, ONE COMPUTER Project encourages the development of knowledge
of children and teachers at school, through access to technology.
b) Productive Microentrepreneurs
- The ANATINA TOYS Project generates greater opportunities for the development of
small Bolivian producers with the production and marketing of handmade toys with
international quality.
- The TRUCHAS CHAPACAS Project promotes and consolidates the trout production
chain in the municipalities of the upper zone of Tarija, as an alternative and sustainable
activity to improve their living conditions and income, in strategic alliance with the
Peasant Research and Training Institute ( IICA) and the Municipalities of Yunchará and
El Puente.
- The EL PAÍS WE WANT Project encourages an entrepreneurial culture through the
identification and promotion of successful ventures in the country.
c) Environment
- The RECICLA Project seeks to raise awareness among the population about solid waste
management and the advantages of having a cleaner city.
- The EFFICIENT STOVES Project allows the use of less firewood and the reduction of
smoke and toxic gases through the installation of Efficient Kitchens, in strategic alliance
with GTZ, CEDES BOLIVIA and SOBOCE with the Municipal Governments of Warnes
and Ascensión de Guarayos, Department of Santa Cruz.
d) Citizen security
- The JUNTOS project seeks to turn Viacha into a safe city that serves as an example for
other intermediate cities in the country.
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e) Infrastructure
SOBOSE COMPANY SA
- The ROAD INFRASTRUCTURE Project aims to improve access roads in the areas of
influence of SOBOCE.
f) Donations
- The company makes DONATIONS OF CEMENT, PREMIXED CONCRETE AND

AGGREGATE , intended for the improvement of community, educational, sports, cultural
and health infrastructure.
- During the year-end holidays, SOBOCE makes a DONATION OF TOYS , in gratitude for
the support provided by the towns surrounding the operation centers of its plants, as well
as the residents of the quarries from which raw materials are extracted for the products.
2.7 MANAGEMENT INFORMATION ISSUED
It has an administrative manual, which allows it to regulate the administrative accounting

operations in the tannery, the routines and procedures that are developed in it and the
establishment of responsibilities in the different steps of each process.
The accounting practices adopted by the Tannery are the following:
Accounting estimates - The preparation of financial statements in accordance with accounting

principles generally accepted in Bolivia requires that the Company's Management make
estimates that affect the amounts of assets, liabilities, income and expenses for the year. Actual
results may differ from estimates made.
Consideration of the effects of inflation - In accordance with Resolution CTNAC 01/2008 of

January 11, 2008 of the College of Auditors and Public Accountants of Bolivia, the Company
adjusts its financial statements for inflation taking into account the Unidad de Fomento a la
Housing (UFV). The UFV as of December 31, 2012 and 2011 was 1.75985 and 1.50703,
respectively.
Valuation criteria - The most significant accounting principles applied by the Company are the
following:
a) Foreign currency - Assets and liabilities in foreign currency are valued at the exchange
rate at the end of each financial year. Exchange differences are recorded in the results of
the year, in the Exchange Difference account.
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b) Temporary investments - Temporary investments in: a) Investment Fund Management

Companies are valued at their updated nominal value as of the year-end date plus accrued
SOBOSE COMPANY SA
returns; and b) Fixed Term Deposits are valued at their updated nominal value as of the
year-end date.
c) Uncollectible allowance - The allowance for uncollectible accounts for commercial accounts
receivable, except for those of the public sector and except for those that have real
guarantees established in favor of the Company, is determined by applying percentages
from 10 to 100 percent, progressively. based on the delinquency of accounts receivable;
from accounts with arrears greater than 91 days to accounts with arrears greater than 1,080
days.
d) Inventories.- Raw materials, materials for processing and packaging, products in process,
finished products and materials and supplies are valued at their updated weighted average
cost.
Inventories of spare parts, materials and supplies are valued at their updated cost.
The net book value of inventories does not exceed their recoverable value.
e) Assets for sale - Assets for sale are recorded at market values resulting from technical
appraisals carried out in September 2005 by independent experts, re-expressed in closing
currency until March 31, 2007. Subsequently, the Company has decided to suspend the
inflation adjustment of these accounts so as not to exceed their market value.
f) Permanent investments - Investments are updated and valued as follows:
- The shares of Fábrica Nacional de Cemento SA (FANCESA), at their proportional equity

value based on its unaudited and 2011 audited financial statements as of December 31,
2012.
- The capital quotas in Sociedad Explotadora de Minerales Calcáreos Ltda. (EXMICAL), at

their proportional equity value as of December 31, 2012 and 2011, not audited because its
fiscal closing is September 30 of each year.
- The shares in Especialistas en Minerales Calizos SA (ESMICAL), at their proportional eq-

uity value as of December 31, 2012 and 2011, not audited because its fiscal closing is
September 30 of each year.
-
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- The capital quotas in Compañía Integral de Consignaciones y Servicios Ltda. (CIS Ltda.),
at its proportional equity value as of December 31, 2006, re-expressed in closing currency.
This Company has no operations or accounting movements in recent years.
SOBOSE COMPANY SA
- Shares in Banco BISA SA are valued at their acquisition cost, restated in closing currency.
- The participation fees in the telephone cooperatives, COTEL, COTAS, COMTECO and
COSETT, at their acquisition cost updated until March 31, 2007. Subsequently, the Com-
pany has decided to suspend the inflation adjustment of these accounts so as not to ex-
ceed their market value.
The net book value of permanent investments does not exceed their recoverable value.
g) Fixed assets - The fixed assets of the “Viacha” plant existing as of October 31, 1994 are
recorded at the values resulting from a technical revaluation carried out on that date by
independent experts, re-expressed in closing currency. Subsequent additions are recorded
at acquisition cost restated in closing currency. The fixed assets of the “El Puente” plant
are recorded at the value paid at the time of the acquisition of said assets from Sociedad
Cemento “El Puente” SA, said value was
Ratified by independent technical experts during the 1997 administration. Subsequent additions
to this plant are recorded at cost in accordance with the criteria indicated in Note 2.2.
The depreciation corresponding to machinery, equipment and facilities is calculated based on
the relationship between production capacity and units produced, a factor that is applied to
the cost value or updated revaluation of the goods.
The rest of the fixed assets are depreciated on a straight line basis applying rates
sufficient to extinguish the value of said assets at the end of their useful life.
Maintenance, repairs, renovations and improvements that do not extend the useful life of
the assets are charged to the results of the year in which they are incurred.
The resulting net values as a whole do not exceed their recoverable value.
g) Deferred charges - Deferred charges are recognized at cost and are updated for
inflation in accordance with the criteria described in Note 2.2. These costs are amortized
according to the following useful lives.
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- Software licenses - Between 4 and 7 years.

- FANCESA Project - Other costs - 5 years.
- ISOS Certification - 5 years.
- Other minors - Between 4 and 6 years
SOBOSE COMPANY SA
i) Goodwill - Corresponds to the highest value paid in the acquisition of investments with
respect to their proportional equity value, valued at their updated cost at the end of the
year.
The amortization of these concepts is carried out, based on technical criteria defined by
Management, as follows:
- The goodwill corresponding to the investment made in FANCESA is amortized over

twenty years.
- The goodwill corresponding to the investment made in ReadyMix is amortized over ten
years.
- The net book value of the goodwill does not exceed its recoverable value.
j) Provision for compensation to personnel - The provision for compensation is established

for all personnel for the total liabilities accrued at the end of the year, which is consistent
with the provisions of Supreme Decree No. 110 published on May 7, 2011. , which
recognizes the right to payment of compensation (equivalent to one month's salary per
year of service), in favor of workers after having completed more than ninety (90) days of
continuous work, whether there is untimely dismissal or resignation voluntary on the part of
the worker.
k) Financing costs - Financing costs are recorded in the results of the year in which they are
incurred.
l) Net equity - The Company adjusts the total equity based on the provisions of Accounting
Standard No. 3 of the College of Auditors of Bolivia. The adjustment corresponding to the
Capital accounts is recorded in the Capital Adjustment account and the adjustment of
reserves in the Reserves Adjustment account. The adjustment of accumulated results is
exposed in the same account.
m) Results for the year - The Company determines the result for each year taking into account
the effects of inflation.
Individual items on the profit and loss statement are not adjusted, but a global adjustment is
recorded in the “Adjustment for inflation and ownership of assets” account. This procedure
does not cause a significant distortion in the individual items of said state.
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n) Revenue recognition - The Company recognizes sales revenue upon delivery of the product
(cement or concrete) to the buyer.
The recognition of income from construction contracts is carried out with reference to the
progress status of the work. Under this method, the income derived from the contract is
SOBOSE COMPANY SA
compared to the costs incurred in construction, thereby revealing the amount of income,
expenses and results that are attributed to the portion of the contract executed each year.
2.8 EXISTING ECONOMIC CIRCUMSTANCES
The current economic circumstances that prevail in the country are not very good for companies,
because there is uncertainty in business due to the political aspect, what also affects is the tax
regulations that are constantly modified, making the part more insecure. of taxation within the
company, inflation is another factor that considerably affects the Bolivian industry in the sales
sector, the effects of this can be clearly noted.
2.9 WORKFORCE
During 2011, according to the salary schedule, the following number of personnel worked in the
production area:
 1 chairman of the board

 6 regular directors
 1 general manager and a regional manager
 7 administrative managers
 1 technical head from each region.
 5 sellers from each region: La Paz, Tarija, Oruro, Cochabamba and Santa Cruz)
 1 secretary
 900 permanent workers and 1,300 indirect workers.
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The staff composition is as follows:
NUMBER OF
CONCEPT POST
OFFICERS
Chairman Partner director 1
Principal directors directors 6
Management level General manager 1
SOBOSE COMPANY SA
Regional manager 1
Administrative level National Sales and Marketing 1
Management
National Project Management 1
National logistics planning 1
management
National Finance Management 1
National Technology and Finance 1
Management
National HR and Administration 1
Management
Operative Level Technical Manager by region 5

Sellers by region 5
Workers 900
TOTAL PEOPLE 925
2.10 APPLICABLE LAWS AND REGULATIONS
The laws and regulations that are applicable to the tannery activity are the following:
- Law 843 on Tax Reform and regulatory decrees

- Law 1606 on Corporate Profits Tax and regulatory decree
- Environmental Law 1333
- General Labor Law
- Tributary Code
- Commercial Code
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2.11 INTERNAL AUDIT CAPABILITY
The SOBOCE company has the internal audit capacity which issues financial
statements in accordance with accounting standards.
2.12 REPORTS AND EXTERNAL AUDIT RESULTS

SOBOSE COMPANY SA
Annually, in compliance with legal regulations, it contracts the services of an audit to issue an
external audit report and complementary tax information.
2.13 INHERENT RISK OF THE ORGANIZATION, OPERATIONS, INFORMATION AND

PERSONAL COMPETENCE
The risk to which the company is subject is to the economic situation that the country is going
through, since prices do not remain constant. The insecurity that the country presents due to the
lack of regulations and laws that guarantee security for companies.
3. INFORMATION SYSTEM
The Finance Unit has 1 computer equipment for processing economic and financial operations.
The Financial Statements for the 2012 management were prepared using the ODYSEA
computerized system, having processed and issued accounting vouchers in which income and
expenses are recorded.
4. UNDERSTANDING THE COMPONENTS OF INTERNAL CONTROL
4.1 Control environment
The industrial company SOBOCE SA, has as its maximum authority three owner-partners who
constitute the highest decision-making body of the company. Their powers and responsibilities
are established in its statutes, regulations, organization manual, functions manual and
procedures manual. .
The operations carried out during 2012, in most cases, have been carried out based on usual
procedures, partially guided by the company's regulatory documents.
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It is worth mentioning that controls have been implemented that are executed according to the
importance of each case, promoting compliance with the procedures established through
internal regulations, in order to obtain adequate and reliable accounting and tax information. Its
main activities include:
 Coordinate the action of the various administrative systems, marketing of their products,
internal activities and operations linked to companies and people
SOBOSE COMPANY SA
Individuals, in order to achieve the desired goals and policies, through the implementa-
tion of control procedures for compliance with scheduled activities, based on instructions
from the administrative, operational and marketing areas of their products.
 Directs and promotes compliance with the orders issued, mainly through written instruc-
tions, service orders, board resolutions and others that improve the organic and adminis-
trative functioning of the company.
 Promotes the execution of the decisions issued by the Board of Directors, through reso-
lutions and instructions that are issued, bringing them to the attention of its dependents.
 Issues Board resolutions and Management Circulars, according to the needs of the com-
pany.
 Adopts measures to comply with the recommendations, formulated through the reports
issued by the External Financial and Tax Audit, an aspect that demonstrates its willing-
ness to amend observations resulting from the audit examinations carried out.
Based on what has been described, it is considered that the general internal control environment
implemented by the Board of Directors and General Management provides reliability on the
processing of transactions, taking into account the risk analysis by components shown in the
Decision Sheet by Components. However, the existence of weaknesses in the control
procedures and in compliance with legal and tax provisions, which are generated by the
company's activities, was confirmed, facts that could affect confidentiality, integrity, availability,
compliance, reliability and security of the information recorded and processed.
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4.2 Risk assessment
As a result of the risk assessment of the industrial company SOBOCE SA, it has been
determined:
a) Currency risk
The position in foreign currency mentioned in Note 16 exposes the Company to the risk of
variation in the exchange rate of the local currency with respect to the US dollar. The
Company considers that it is not necessary to use any financial instrument to minimize the
aforementioned risk. It should be noted that within commercial policies, the sales price is
set in bolivianos.
SOBOSE COMPANY SA
b) Credit risk
The Company's credit risk is spread across several clients. Additionally, the Company has
credit policies aimed at reducing the risk of recoverability of said credits. These policies,
together with a collection control process, reduce the Company's credit risk.
c) Liquidity risk
The Company has prudent treasury policies aimed at maintaining sufficient funds to meet
its obligations, as well as having adequate financial facilities. These policies are
complemented through strict monitoring of collections. Due to the dynamic nature of the
Company's businesses, treasury policies are defined with the objective of maintaining
flexibility in financing, through access to lines of credit and active participation in the
Bolivian Stock Exchange, which generates the opportunity to optimize your financial cost.
d) Interest rate risk
The Company finances its operations by obtaining loans that have various interest rates.
The Company does not use financial instruments such as interest rate swaps to minimize
its exposure to the risk of variations in interest rates. The Company does not have financial
assets that are exposed to interest rate risk.
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4.3Control activities
It was evident that there are necessary policies and procedures to verify that each of the
company's activities or the controls indicated by its regulations and procedure manuals are
complied with.
It was evident that the company has clear objectives in terms of planning its production and
sales, and these objectives are clearly written, which are communicated to all employees of the
company.
Planning systems have been implemented that do not make periodic comparisons of amounts
recorded in the accounting system with physical assets. Likewise, there are no restrictions to
prevent unauthorized access to or destruction of documents, records and assets.
Likewise, in the evaluation of the internal control system, no deficiencies have been detected.
SOBOSE COMPANY SA
4.4 Information and communication-
 Information
It was evident that information systems provide management with the necessary reports on the
company's performance in relation to the established objectives, including relevant internal and
external information and provides the information to the appropriate people, with the necessary
detail and on time, which It allows them to fulfill their responsibilities effectively and efficiently.
 Communication
It was evident that there is adequate communication throughout the company, which allows its
employees to fulfill their responsibility effectively, and the company takes timely and appropriate
follow-up actions on the communications received from clients, suppliers or other external
parties.
4.5 Supervision and surveillance
It was evident that in the company, periodic evaluations of internal control are carried out and
evidence is obtained from self-dependent personnel that the internal control system continues to
function.
On the other hand, it is evident that the internal control recommendations of the external auditors
are being implemented.
LPA 20
Nor does it have an internal audit unit that monitors the operation of internal control through
audits.
5. ACCOUNTING POLICIES
The company has a computerized financial accounting system.
- Presents monthly sworn declarations corresponding to VAT, IT, and annually presents
DD.JJ. of the IUE.
- Depreciation method Bolivian legislation
- For the valuation of FIFO inventories
6. OPERATING UNITS
No operating units found
SOBOSE COMPANY SA
7. AUDIT RISK FACTORS AND AUDIT APPROACH BY ITEMS
Based on the company's financial statements, we carry out the planning analysis for each item
or component of said statements.
LPA 21
BALANCE SHEET
AS OF MARCH 31, 2012 AND 2011
(Expressed in Bolivians)
ASSET 2012 2011

CURRENT ACTIVE Bs Bs
Availability 33,440,144 19,994,436
Temporary investments 153,184,239 150,276,870
Trade accounts receivable 33,035,539 31,723,517
Other accounts receivable 24,942,761 42,806,078
Inventories 119,840,367 85,498,321
Prepaid expenses 68,785,300 57,114,965
Total current assets 433,228,350 387,414,187
NON-CURRENT ASSET
Trade accounts receivable 618,511 631,328
Other accounts receivable 29,109,814 57,984,395
SOBOSE COMPANY SA
Permanent investments 323,915,153 288,479,295

Assets for sale 11,971,080 13,100,670
Fixed assets 1,134,607,064 991,750,500
Deferred charges 8,818,994 13,134,240
Key value 66,496,813 74,533,001
Total non-current assets 1,575,537,429 1,439,613,429
Total asset 2,008,765,779 1,827,027,616
LPA 22
PASSIVE
CURRENT LIABILITIES
Commercial debts 102,700,095 103,253,954
Bank and financial debts 60,902,632 89,316,285
Taxes to pay 67,517,866 69,627,934
Social debts and other debts 13,085,219 10,809,886
Total current liabilities 244,205,812 273,008,059
NON-CURRENT LIABILITIES
Bank and financial debts 631,322,797 839,490,463
Provision for compensation 38,541,385 34,533,848
Non-current liabilities 669,864,182 566,482,404
NET WORTH
Paid-in capital 196,614,600 196,614,600
Contributions to Capitalize 1,058,010 1,058,010
SOBOSE COMPANY SA
Bookings 368,149,497 357,715,348

Accumulated results 528,873,678 432,149,195
Total net worth 1,094,695,785 987,537,153
Total liabilities and net worth 2,008,765,779 1,827,027,616
.
LPA 23
STATEMENT OF INCOME
FROM MARCH 31, 2011 TO 2012
(Expressed in Bolivians)
2012 2011
Bs Bs
Net sales 1,009,267,041 859,468,027
Sales cost (548,263,438) (492,184,874)
Gross profit 461,003,603 367,283,153
Bills:
Of administration (125,243,880) (98,705,282)
Marketing (161,938,136) 138,693,842)
Operating profit 173,821,587 129,884,029
Other gains (losses):

Financial expenses (52,675,109) (53,708,924)
SOBOSE COMPANY SA
Financial income 4,930,411 4,606,514

Investment performance 51,178,357 40,708,190
Other net profits and (losses) 3,575,290 3,733,432
Exchange rate (513,398) 30,264,839
Adjustment for inflation and ownership of assets 9,204,690 77,105,015
Result before income tax 189,521,828 232,593,095
Tax on corporate profits (11,058,676) (21,734,666)
Net profit for the year 178,463,152 210,858,429
AUDIT RISK
a) Inherent risks
 The volume, type and value of income and expenses fluctuate significantly; Likewise,
current expenses affect 73% of income, according to efficiency coefficient.
 Introduction of new products on the market
 High trading volume
 Social movements in the country
 The political persecution of partner Doria Medina makes the relationship with state
entities difficult to control the company.
LPA 24
 Fluctuations in raw material and chemical prices

 The electronic backup processes are carried out daily at the end of the day and once
all users have exited the system, this task is carried out based on
The extraction, compression and storage phases, which do not meet the necessary
conditions in case the equipment is damaged, there is a risk of losing information and
backups.
Due to the aspects mentioned above, it is established that the inherent risk is high and
the most relevant risks that affect the assertions of the financial statements are
considered in the audit approach.
b) Control risks
 Lack of control of fixed assets in poor condition and obsolete machinery.

 Absence of information in contracts signed with contractors
 Absence of Supervision procedures in the use of receipt notes and notes issued from
the Warehouse.
 Outdated kardex control
 Lack of expense control
SOBOSE COMPANY SA
Due to the aspects mentioned above, it is established that the control risk is high and the
most relevant risks that affect the assertions of the financial statements are considered in
the audit approach.
c) Detection risk
Considering the audit procedures, it is estimated that the risk of detection will be at the
moderate or medium level.
d) Audit risk
Considering the procedures to reduce inherent risk, control risk and detection risk, it is
estimated that the audit risk will be low.
Description of component audit approach

Below we detail the risks or potential problems, identified as critical aspects and the suggested
audit approach:
LPA 25
ASSET
Availabilities show a growth of 67% as of 12/31/2012 compared to current assets.
RISK : That the exposed balances are not correct, do not exist or not all of the company's
resources are exposed.
 The preparation of cash counts will be verified
 Balance confirmation requests to banks
PASSIVE
The short-term liability has a balance as of 12/31/2012 of 153795. It is 35% of the liabilities.
RISK : That the calculated amounts of the management are not correct and there is a risk that
the debts contracted are inflated unnecessarily and considerably affect the Financial
Statements.
 Proof of debts incurred during the current administration will be verified.
 Short-term liabilities will be calculated.
HERITAGE
The equity presents a balance as of 12/31/2012 of 651704Bs. It is 65% of the total liabilities.
SOBOSE COMPANY SA
RISK : The company presents a profit and is violating the principle of a going concern
considering that the company just started this activity in this same management.
 The initial and final balance will be verified and calculated.
 The accounting records and accounting policies will be reviewed.
EGRESS
Total management expenses represent 82% of total income.
RISK : The company is selling its products at very low prices, which makes it impossible for it to
have a better income, making its costs almost equal to its income.
 Product cost analysis
 Global tests on expenditure accounts.
INCOME
The income is minimal considering the amount of raw materials that enter the company, the
production capacity of the installed plant.
RISK : That the company is not correctly recording, declaring or accounting for sales.
 Determination of quantities of products sold
LPA 26
 Information crossing with the production cost

 Global tests on income accounts
8. AUDIT EMPHASIS ROTATION
Not applicable
9. CONSIDERATIONS ON SIGNIFICANCE
Consider the level of materiality as follows:

 10% for low risk
For the workshop:
 Materiality of the audit Bs18,000,000
 Materiality per account Bs4,000
Materiality or tolerable error Eeff amounts in Bs Low Risk10%

Asset 2.008.765.779 200.876.578
Passive 914.069.994 91.406.999
Heritage 1.094.695.785 109.469.579
Income 1.078.155.789 107.815.579
Bills 899.692.637 89.969.264
Results 178.463.152 17.846.315
SOBOSE COMPANY SA
Operation 254.954.365 25.495.437

Investment 198.195.367 19.819.537
Financing 40.405.921 4.040.592
Average 740.822.088 74.082.209
General materiality for the audit 74.082.209
Materiality for component (50% of materiality) 37.041.104
Materiality for account and to accumulate adjustments (10% of

materiality) 7.408.221
Accounts for amounts greater than 7,500.00 will be analyzed and the following
adjustments will be recorded:
Detail Bs
a) Adjustments will be proposed for those items that affect the financial statements,
whose amount exceeds 10% of the average assets, liabilities, equity, income,
expenses, results, operating flows, investment and financing. 74.000.000
b) Those individual items that affect the financial statements for an amount equal
to or greater than 50% of the previous amount will be noted in the possible
adjustments form, for evaluation of the final impact on the financial statements. 37.000.000
c) The possible adjustments of all those items that affect the financial statements in
10% of the established materiality will be noted, for their final evaluation and
inclusion in the internal control report. 7.500.000
LPA 27
Dates of the stages to be completed:
STAGE START FINAL

PERMANENT 15/10/2012 14/11/2012
PLANNING 15/11/2012 14/11/2012

EXECUTION 15/11/2012 20/12/2012
COMMUNICATION OF RESULTS 21/12/2012 24/12/2012
SOBOSE COMPANY SA
Hourly Budget:
PLANNING AND TESTING EXE-

STAFF REPORT TOTAL
PROGRAMMING CUTION
Audit Manager 40 20 20 80
Supervisor 80 60 60 200
Jr. Auditor 28 100 24 152
Jr. Auditor 28 100 24 152
TOTALS 176 280 128 584
10. WORK PROGRAMS

Contents in LPB
LPB 1
COMPANY: SOCIEDAD BOLIVANA DE CEMENTO SA Period: 2012
AUDIT PROGRAM
AVAILABILITY
AS OF 12/31/2012
Goals:
1. Establish that the balances of the cash flow accounts actually exist
2. Establish that the balances of the cash flow accounts are property of the company
3. Establish that the integrity of the company's available resources is recorded in the availability
category.
4. Establish that the balances of the cash flow accounts are correctly valued at the end of the
fiscal year
5. Establish that the balances of the cash flow accounts are adequately disclosed in the Bal-
ance Sheet and in notes to the financial statements.
PROCEDURES AIM REF. MADE

SOBOSE COMPANY SA
P.T. BY:
1. Prepare a summary record, compare the balances with 1 TO
the Balance Sheet and ledger accounts.
Box
2. Carry out cash audits and cut documents at the closing 1, 2
date, to verify if the balances are correctly displayed in
the financial statements.
At 3/1
3. Analyze the appropriate classification of the item and its 2 At 3/2
exposure in notes to the financial statements.
Banks
1,2,4 A3/2
4. Request confirmation from each of the banks
5. Analyze the responses with the balances exposed by the 1 JFV

entity A1-A2
6. If necessary, other alternative procedures will be carried 3 A1-A2

out according to the circumstances.
CONCLUSION
7. Issue a conclusion on the reasonableness of the balance
of the item, if it is in accordance with Accounting Stan-
dards.
LPB 2
AUDIT PROGRAM
REQUIRED ASSET
AS OF December 31, 2012
GOALS:
1. Determine the existence and ownership of required accounts
2. Verify the correct valuation of the accounts at the end of the year.
3. Verify that the balances of the payable item include all the Company's collection rights
and are fully accounted for.
4. Determine that they are adequately disclosed in the financial statements.
REF. MADE
PROCEDURES AIM
P/T
1.- Prepare the summary record of the required asset that 1, 2
SOBOSE COMPANY SA
shows the management balances in a comparative manner.
ACCOUNTS RECEIVABLE
2.- Prepare a subsumy record and co-reference with the 1,3
summary.
3.- Request confirmation of balances from bank customers.

1,2,3, 4
4.- Verify that the accounts receivable balances are properly

disclosed in the Financial Statements. 2,3, 4
CONCLUSION : JFV
5.-Prepare a conclusion on the balance of the receivable
asset establishing whether the sample is prepared in
accordance with GAAP
SOBOSE COMPANY SA
LPB 3
AUDIT PROGRAM
REALIZABLE ASSET
GOALS:
1 Verify that warehouse stocks are the property of the Company.

2 Determine whether the Assets declared in the financial statements really exist and are
complete.
3 Check if the assets are correctly disclosed in the financial statements.
4 Check the correct valuation of assets in accordance with GAAP
REF. MADE
PROCEDURES AIM
P/T
1
1.- Prepare the summary schedule of the realizable asset
that shows the balances of the analyzed management in a
comparative manner.
INVENTORIES
2.- Check the balances of the most traded products,
1,2
performing a physical count
JFV
3.- Verify that the application of standard 3 3
4.- Verify that the inventory account balances are correctly 3 ,4

valued.
CONCLUSION:
5.- Prepare a conclusion on the reasonableness of the
balance of the realizable asset.
SOBOSE COMPANY SA
LPB 4
AUDIT PROGRAM
FIXED ASSETS
GOALS :
1. Check that the fixed asset exists and is fully accounted for.
2. verify that the Fixed Assets are owned by the entity.
3. establish that the assets declared in EEFF. They exist and are in conditions representative
of their value.
4. verify correct classification and exposure
REF. MADE
PROCEDURES AIM
P/T
1.- Prepare the summary schedule of the fixed assets that 1 ,2

shows the balances of the audited management in a
comparative manner.
1,2,3
2.- Confirm asset balances
3, 4
3.- Perform verification of revalued assets JFV
1,4
4.- Verify the proper presentation and exposure of the
balances of this account.
CONCLUSION
balances in this item.
SOBOSE COMPANY SA
LPB 5
AUDIT PROGRAM
OTHER ASSETS
GOALS:
1. Determine the existence and ownership of other asset accounts
3. Verify that the balances of the other assets category are fully accounted for.
AIM REF. MADE

PROCEDURES P/T
1.- Prepare the summary schedule of other assets that 1 ,4

shows the management balances in a comparative manner.
ANTICRETIC CONTRACT
1 ,3
2.- Prepare the sub-summary record.
3.-Verify that the anti-criticism contract corresponds to the 1,3 JFV

Entity.
Make sure it has been updated according to standard 3
4.- Verify the proper presentation and exposure of the 1 ,4

TELEPHONE INVESTMENTS
5.- Prepare the sub-summary record.

1
6.- Verify that the value of the shares are valued at nominal 1,3
value.
7.- Verify the proper presentation and exposure of the 1,3,4

MERCHANDISE IN TRANSIT 1
8.- Prepare the sub-summary record. 1,3

SOBOSE COMPANY SA
Verify that merchandise in transit that has been nationalized 1,3,4

is accounted for...
Verify the proper presentation and exposure of the balances
of this account.
CONCLUSION:
9.- Prepare a conclusion on the balance of the receivable
asset establishing whether the sample is prepared in
accordance with GAAP
SOBOSE COMPANY SA
LPB 6
AUDIT PROGRAM
PASSIVE IN A SHORT TIME
AS OF DECEMBER 31, 2012
GOALS:
1. Determine the existence of passive accounts.

2. Verify the adequate Valuation of liabilities and whether they have supporting documents.
3. Determine that the liability accounts are property of the company
4. Verify that the balances of the payable include all the same copper of the company and
that they are detailed Integrity accounted for.
5. Determine that they are adequately disclosed in the Financial Statements
MADE
PROCEDURES OBJECT. REF. P/T
BY:
1.- Prepare the summary of this item that shows 4
comparatively the balances of the 2012 management,
compare the amounts with ledger balances and trial
balances of sums and balances.
TAXES TO PAY
2.- Obtain the composition of the taxes payable account 1 and 4
as of 03/31/2012 or prepare a sub-summary schedule and
co-reference with the summary. 5
3.- Confirm tax balances through sworn declarations
IT PAYABLE
4.- Obtain the composition of balances of the IT account
1 and 2
payable as of 03/31/2012 and co-reference with the
summary record.
1 and 4
5.- Confirm the balance of the IT payable through
management sales. 4 and 5
6.- Review the correct classification and exposure of
short-term liabilities
CONCLUSION: Issue a conclusion on the

reasonableness of the agreement's short-term liability
balances.
LPB 7
SOBOSE COMPANY SA
AUDIT PROGRAM
LONG-TERM LIABILITIES
GOALS:
1. Verify that long-term debts are fully recorded.

2. Check that all balances payable really exist.
3. Check that debts are adequately exposed and revealed in Financial Statements.
4. Verify the correct valuation of obligations at closing.
5. verify that the debts incurred are property of the company and that there are backups.
REF. MADE
PROCEDURES OBJECT.
P/T BY:
1.- Prepare the summary of this item that shows the 1 and 3
balances of the 2012 management in a comparative
manner. Compare amounts with ledger balances and
sums and balances trial balances 1
2.- Review the forecast calculation
2, 4 and 5
5.- Verify the proper presentation and exposure of the
balances of this component
CONCLUSION: Prepare a conclusion on the

reasonableness of the long-term liability balances
LPB 8
AUDIT PROGRAM
SOBOSE COMPANY SA
HERITAGE
GOALS:
1. Verify that the amounts shown in the balance sheet are fully reviewed.
2. Check that all equity balances really exist
3. Determine that this item is adequately exposed and disclosed in the Financial State-
ments.
4. Verify the correct valuation of the assets and whether they have supporting documents.
5. Check that the assets are property of the company.
PROCEDURES OBJECT REF. P/T MADE

. BY:
1.- Prepare a summary schedule of the equity item and 1 and 3

compare it with balances with the ledger and balance sheet.
2.- Review the testimony of constitution of share capital. 1,4
3.- Review and calculate the capital adjustment account

2 and 4
4.- Check the correct classification and exposure of the 1 to 5
heritage.
CONCLUSION: Issue a conclusion on the reasonableness of

equity balances.
LPB 9
AUDIT PROGRAM
SOBOSE COMPANY SA
INCOME
GOALS:
1. Determine the existence and ownership of income accounts.

3. Verify that income balances are fully accounted for.
REF. MADE
PROCEDURES AIM
P/T
1.- Prepare a summary record of the income 1,2

account.
SALES INCOME
1,3,4
2.- Check if the sales are updated according to
standard 3
3.- Review the correct classification and exposure of 2 ,3, 4

the income.
CONCLUSION
4.-Issue a conclusion on the reasonableness of the

income balances.
SOBOSE COMPANY SA
LPB 10
AUDIT PROGRAM
EXPENDITURE
GOALS:
1. Determine the existence and ownership of Expenditure accounts.
3. Verify that Expenditure balances are fully accounted for.
4. Determine that they are adequately disclosed in the financial statements
OBJECT. REF. MADE

PROCEDURES
P/T
1.- Prepare the summary record of Expenses that 1, 2
shows in a comparative way the balances of the
management that is being audited
2.- Check if the entity updates expenses 1,3,4
3.- Verify that the operations carried out have sufficient

supporting documents. 2,3
4.- Review the correct classification and exposure of the

expense. 3,4
CONCLUSION:
balances in this item.
SOBOSE COMPANY SA
LPE
COMPANY: SOCIEDAD BOLIVANA DE CEMENTO SA Period: 2012
TREND ANALYSIS OF FINANCIAL STATEMENTS
BALANCE SHEET AS OF MARCH 31, 2012 AND 2011

Variac.
DESCRIPTION MANAGEMENT Variation Horizontal Variac. Vertical
ASSET 2012 2011
BS. % 2011 2012
CURRENT ACTIVE Bs Bs
Availability 19994436 33440144 13445708 67 1 2
Temporary investments 150276870 153184239 2907369 2 8 8
Trade accounts receivable 31723517 33035539 1312022 4 2 2
Other accounts receivable 42806078 24942761 -17863317 -42 2 1
Inventories 85498321 119840367 34342046 40 5 6
Prepaid expenses 57114965 68785300 11670335 20 3 3
Total current assets 387414187 433228350 45814163 12 21 22
0 0
NON-CURRENT ASSET 0 0
Trade accounts receivable 631 619 -12,817 -2 0 0
Other accounts receivable 57984395 29109814 -28874581 -50 3 1
Permanent investments 288479295 323915153 35435858 12 16 16
Assets for sale 13100670 11971080 -1129590 -9 1 1
Fixed assets 991750500 1134607064 142856564 14 54 56
Deferred charges 13134240 8818994 -4315246 -33 1 0
Key value 74533001 66496813 -8036188 -11 4 3
Total non-current assets 1439613429 1575537429 135924000 9 79 78
Total asset 1827027616 2008765779 181738163 10 100 100
LPE
TREND ANALYSIS OF FINANCIAL STATEMENTS

SOBOSE COMPANY SA
BALANCE SHEET AS OF MARCH 31, 2012 AND 2011

PASSIVE 2012 2011 Vertical
Horizontal variation analysis
CURRENT LIABILITIES Bs Bs Bs % 2011 2010
Local suppliers 63.242.791 58.525.530 4.717.261 8 6,9 7,0
Foreign suppliers 2.967.562 2.441.957 525.605 22 0,3 0,3
Freight to pay 7.864.212 7.344.296 519.916 7 0,9 0,9
Advances received for construction 896.284 15.958.261
contracts -15.061.977 -94 0,1 1,9
Various creditors 24.019.614 12.964.686 11.054.928 85 2,6 1,5
Deposits and collections for advances 624.073 -624.073 -100 0,0 0,1
Reversed checks 846.281 307.510 538.771 175 0,1 0,0
Others 2.863.351 5.087.641 -2.224.290 -44 0,3 0,6
Bank and financial debts 0 0,0 0,0
Livestock Bank 0 10.150.770 -10.150.770 -100 0,0 1,2
Banco Bisa SA 5.554.996 16.138.156 -10.583.160 -66 0,6 1,9
Santa Cruz Mercantile Bank 6.363.000 6.494.860 -131.860 -2 0,7 0,8
National Bank of Bolivia 5.891.667 9.242.118 -3.350.451 -36 0,6 1,1
CAF 14.521.780 27.408.308 -12.886.528 -47 1,6 3,3
Promissory notes 21.000.000 0 21.000.000 -47 2,3 0,0
Interest and commissions payable 7.571.189 19.882.073 -12.310.884 -62 0,8 2,4
Taxes to pay 67517866 69627934 -2.110.068 -3 7,4 8,3
Social debts and other debts 13085219 10809886 2.275.333 21 1,4 1,3
Total current liabilities 244.205.812 273.008.059 -28.802.247 -11 26,7 32,5
NON-CURRENT LIABILITIES
Livestock Bank 41.820.000 16.913.698 24.906.302 147 4,6 2,0
Banco Bisa SA 24.997.504 33.350.589 -8.353.085 -25 2,7 4,0
Santa Cruz Mercantile Bank 59.391.500 42.216.588 17.174.912 41 6,5 5,0
National Bank of Bolivia 31.225.833 37.204.937 -5.979.104 -16 3,4 4,4
CAF 473.887.960 402.262.744 71.625.216 18 51,8 47,9
Provision for compensation 38.541.385 34.533.848 4.007.537 12 4,2 4,1
Total current liabilities 669.864.182 566.482.404 103.381.778 18 73,3 67,5
TOTAL LIABILITIES 914.069.994 839.490.463 74.579.531 9 100,0 100,0
LPI
SOBOSE COMPANY SA
CONCLUSION OF THE INTERNAL CONTROL SYSTEM
BASED ON OUR CONCLUSIONS REGARDING THE INTERNAL CONTROL DESIGN

QUESTIONNAIRE AND THE COMPLIANCE EVIDENCE FILED IN THE LPP, LPP3 WORK PAPERS
WE CONCLUDE THAT INTERNAL CONTROL IS EFFECTIVE.
LPJ
INTERNAL CONTROL DEFICIENCIES

SOBOSE COMPANY SA
REF.
DEFICIENCY PROVISION
P/T
1
LACK OF SAFEGUARDING ACCOUNTING

DOCUMENTS
CONDITION
The company has not safeguarded the documents for the
management concluded on 12/31/12
CRITERION
According to Basic Accounting Standards, all registered

operations must have sufficient documentation.
CAUSE
This fact is due to the carelessness of those responsible for the

accounting unit for not demanding compliance with the
documentation requirements.
EFFECT
This fact causes transactions without support that affects the

credibility of the company and affects the accounting situation
of the entity.
RECOMMENDATION
It is recommended that the manager of the entity instruct the

person responsible for the accounting area to adopt the
pertinent measures so that there is better protection of the
accounting documentation.
LPJ 1
SOBOSE COMPANY SA
REF.
P/T
2
LACK OF SIGNATURES ON RECEIPTS
CONDITION:
In the company it was verified that the Income Receipts
do not have authorized signatures of the Financial
Manager.
CRITERION:
According to Accounting Standard No. 11, the receipts
or records made must contain the minimum required
information.
CAUSE:
This deficiency is due to the lack of good control by the
Company's Accountant, by not verifying that the Income
receipts are properly signed.
EFFECT:
This implies that the receipts lose validity, because they
do not have the signatures that confirm the correct
presentation of the transactions.
.
RECOMMENDATIONS :
It is recommended that Management correct this
observation as soon as possible and thus avoid future
errors in the receipts.
LPJ 2
SOBOSE COMPANY SA
REF.
P/T
3
DELAYS IN INCOME DEPOSITS
CONDITION:
It has been found that cash receipts are not immediately
deposited into the company's bank accounts.
CRITERION:
According to the company's collection and income
policy, all income greater than bs. 10000 must be
deposited in the account. Cte. of the company
immediately.
CAUSE:
This deficiency is due to the lack of good control of the
collections and cash area for making deposits in a timely
manner.
EFFECT:
This implies that having too much cash in the company
can expose the company to being subject to theft or
robbery by staff or third parties.
.
RECOMMENDATIONS :
It is recommended that Management correct this
observation as soon as possible and thus avoid
contingencies or theft.
LPJ 3
SOBOSE COMPANY SA
REF.
P/T
4
LACK OF SIGNATURES ON CHECKS DRAWN
CONDITION
It has been confirmed that the checks issued by the entity do

not have the approval signature of the financial manager.
CRITERION
According to the procedures manual, all checks drawn must

bear the authorization signatures of the General Manager and
the approval of the Financial Manager, for which an Assistant
or book of checks drawn will be carried.
CAUSE
The fact is due to negligence on the part of the Financial

Manager.
EFFECT
This causes a weakening of the internal control system and the

possibility of unauthorized checks being issued and cashed.
RECOMMENDATION
It is recommended to the company's board of directors to

recommend to the Financial Manager on the importance of
monitoring the issuing of checks.
LPJ 4
REF. DEFICIENCY PROVISION

P.T.
SOBOSE COMPANY SA
INCOME FROM SALES AND SERVICES IS NOT FULLY

RECORDED
CONDITION :
It was evident that the company does not fully record income from
sales and services.
CRITERION:
According to company policies that are defined in the organization
manual.
CAUSE:
It is due to the lack of knowledge of the organization manual that
exists in the company on the part of the assigned personnel.
EFFECT :
The effect that it can have on the company is that there is a risk of
theft, that the staff in charge uses the money for personal expenses.
RECOMMENDATION :
It is recommended that the general manager instruct relevant
personnel to make deposits no later than two days.
LPK
CONCLUSION OF DESIGN TESTS

SOBOSE COMPANY SA
BASED ON OUR COMPLIANCE TESTS AND EXCEPT FOR THE DEFICIENCIES

DESCRIBED IN: LPJ TO LPJ4, WE CONCLUDE THAT THE EXPENDITURE CYCLE, AS
WELL AS REVENUE, ARE NOT IN FORCE AND DO NOT FUNCTION IN REGARDS TO
CONTROLS AND PROCEDURES IDENTIFIED IN THE COMPLIANCE PROGRAMS
ARCHIVED IN: LPP AND LPP3 ACCORDINGLY WE CAN PERFORM THE SUBSTANTIAL
TESTS.
SOBOSE COMPANY SA
LPL
INTERNAL CONTROL DESIGN QUESTIONNAIRE

(EXPENSE CYCLE)
REF.
QUESTIONNAIRE YEAH NO P.T.
1.- Does the company have its own rules or procedures re-
lated to the acquisition of goods? 
2.- Is there stock control by the sales manager? 
3.- Is there a detail or list of suppliers? 
4.- Does every purchase have warehouse entry forms? 

1
5.- Does every expense have sufficient documentary support?
6.- Is all payment to suppliers by check? 
7.- Are expenses accounted for in the period in which the ex-
pense was incurred regardless of whether they were canceled
or not? 
8.- Are all payment vouchers authorized by the highest au-

thority of the company? 
9.- Do the payment receipts have the signatures: 
-Elaborated
-Reviewed
-Approved
10.- Does the merchandise reception manager verify that ev-
erything entered is in accordance with what is specified in the
purchase order? 
11.- Are all credits with suppliers paid within the established
period? 
SOBOSE COMPANY SA
12.- Are all expenses incurred the property of the company? 

13.- Are invoices from suppliers and/or services verified for
legality and accuracy before payment? 
LPL 1
14.- Were purchase orders prepared for all acquisitions with

the exception of minor expenses? 
15Is there a manual for warehouse management? 
16. Are the receipts listed consecutively? 

17. To acquire a good or service, are there at least three
quotes from different companies? 
18. Do all documents have the signature of the respective per-
2
son responsible for the area?
19. Do all product purchases enter the warehouse in their en-
tirety? 
20. Are entry notes signed by the person in charge issued for
every entry into the warehouse? 
21. Are all disbursements of funds charged to be rendered
timely and in full and do they have sufficient support and ap-
proved by management? 
Comment/conclusion:
Effective=19/(19+2) = 19/21 = 0.0.90*100 = 90%
According to the internal control design evaluation, we conclude that the company's own internal
control system is EFFECTIVE .
T/R
 Verified to satisfaction
SOBOSE COMPANY SA
Deficiency
LPL 2
INTERNAL CONTROL DESIGN QUESTIONNAIRE

(REVENUE CYCLE)
YEA REF.
QUESTIONNAIRE NO
H P.T.
1.- Does every cash deposit have supporting documents? 
2.- Are all income received deposited immediately ? 3
3.- Are the accounting receipts of income on file? 
4.- Do the income receipts have pre-printed numbers? 

5.- Does the accounting department perform bank

reconciliations periodically?
6.- Are sales income fully recorded ? 
7.- Do the company's cashier personnel have personal


guarantees?
8.- Does the company have a detail or list of debtor clients 
9.- Do sales made have proof of departure from warehouses? 

10.- Does the company have income from fixed-term deposits?
11.- Are sales income collected in cash? 
12.- Are sales income fully recorded? 
13.- Are the company's income fully disclosed in the receipts? 

14.- Did the company obtain bank loans during its

management?
15.- Do the income receipts have their respective backups? 
SOBOSE COMPANY SA
16.- Does all income received by the company go into cash?


LPL 3
Comment/conclusion:
Effective=15/(15+1) = 15/16 = 0.94*100 = 94%
According to the internal control design evaluation, we conclude that the company's own internal
control system is EFFECTIVE .
T/R
√ Verified to satisfaction
3
Deficiency
SOBOSE COMPANY SA
LPL 4
NARRATIVE OF INTERNAL CONTROL DESIGN
NOT APPLICA-
BLE
SOBOSE COMPANY SA
LPN
FLOW GRAMS OF INTERNAL CONTROL DESIGN
NOT APPLICA-
BLE
SOBOSE COMPANY SA
LPO
CONCLUSION OF COMPLIANCE TESTS
based on our compliance testing and excepting the deficiencies described in: LPJ A LPJ4;
We conclude that the cycle of expenses, banks and accounts payable as well as cash
receipts and accounts receivable are not in force and do not function in terms of controls and
procedures identified in the compliance programs filed in: LPP and LPP3 , consequently,
compliance with the internal control system is effective .
SOBOSE COMPANY SA
LPP
COMPLIANCE PROGRAMS
(BILLS)
GOALS:
1. Verify the integrity and custody of expenses.
2. Check the proper recording of accounts and the accuracy of amounts.
3. Verify the existence of authorization levels and supporting legal documentation.
4. Verify segregation of duties
Relations
Ref.
PROCEDURE hip with Made by:
P/T
Objective
a) Verify that expense receipts have been prepared in
accordance with the accounting manual.
b) Verify that the checks drawn are duly approved and

signed by the corresponding officials.
c) Verify that the entity has all the supporting docu-

mentation for the expense operations and that they
are duly signed.
d) Verify if the entity's expense receipts have all the

necessary and required signatures.
e) Verify if the entity has exit notes and approved re-

ceipts, duly signed and reviewed by competent per-
sonnel.
f) Verify that all expenses incurred are related to the

company's activity.
SOBOSE COMPANY SA
LPP 1
TESTS OF COMPLIANCE WITH INTERNAL CONTROL

COMPLIANCE SHEET
(EXPRESSES)
N CBTE PROCEDURE
No. DATE CONCEPT AMOUNT
to b c d and F
Bs
1 000016 01/02/11 Payment of salaries and 250000  2    
wages
2 000039 13/02/11 IT Cancellation 30000  2    
3 000028 22/08/11 Services pay 153000  2    
4 000030 01/09/11 Payment of salaries for 5.254,00  2    

the month of August
5 000031 01/12/11 Cancellation of basic 55000     

services for February 2
6 000040 13/01/12 Tax payment 88000  2    
7 000037 30/02/12 Payment of basic services 250000     

2
T/R
2
The checks issued do not have the signature of the financial manager.
SOBOSE COMPANY SA
LPP 2
COMPLIANCE PROGRAMS
(INCOME)
Goals:
6. verify the integrity and custody of income
7. Check the proper recording of accounts and the accuracy of amounts.
8. Verify the existence of authorization levels and supporting legal documentation.
9. Verify segregation of duties
AIM REF. MADE

PROCEDURES P/T BY:
a) Verify that the income receipts have been prepared 2
in accordance with the accounting manual.
b) Verify that the general manager has reviewed by 2 and 3

signing that all receipts are duly signed.
c) Verify that the entity has all the supporting docu- 1 and 3
mentation for income operations and that they
have their respective signatures.
LPP 3
JFV
d) Verify if the entity issues invoices for each sale 3
and/or equivalent document that justifies the in-
come made.
e) Verify if the entity's income receipts have all the 3

necessary and required signatures.
f) Verify whether the entity has approved stock entry 4

and exit notes, duly signed and reviewed by com-
petent personnel.
LPP 3
SOBOSE COMPANY SA
COMPLIANCE TESTS OF INTERNAL CONTROL

COMPLIANCE SHEET
(INCOME)
No CBT DATE CONCEPT AMOUNT PROCEDURE

. NO.
to b c d and F
1 000007 13/03/11 For the sale of 9458,00

cement
1 2 3
2 000008 21/03/11 income from cement 2929,00

glue sales 1 2 3
3 000015 05/03/11 For the sale of 1773,00

cement
1 2 3
4 000017 11/03/11 For the sale of 18067,00

cement 1 2 3

glue sales
N/A
6 000023 13/04/11 income from cement 19.463,00

glue sales 2 3
1

glue sales
1 2 3
T/R
The1general manager has not reviewed the receipts, they are not properly signed.
2 Income receipts are not properly signed
3 The receipts have a warehouse exit note but are not properly signed
LPQ
SOBOSE COMPANY SA
EVALUATION OF THE COMPUTERIZED INFORMATION SYSTEM
QUESTIONNAIRE YE NO N/A REF.

AH P.T.
Does the company use computer equipment to generate information?
Is there a specialized unit within the company in charge of the

computerized information system?
COMMENT / CONCLUSION:
After applying the questionnaire, we can mention that the entity has a computerized information
system.
SOBOSE COMPANY SA
LPS
TERMS OF REFERENCE, PROPOSAL AND CONTRACT
REF.
DETAIL
P.T.
TERMS OF REFERENCE OF THE AUDIT WORK LPS1
AUDIT PROPOSAL LPS2
SIGNED CONTRACT LPS3

SOBOSE COMPANY SA
LPS1
TERMS OF REFERENCE CONTRACT

Audit of the Financial Statements
From April 1, 2011 to March 31, 2012
1. BACKGROUND
SOBOCE in its capacity as a company dedicated to the commercialization of products with an indefinite duration,
which enjoys its own legal personality and administrative, technical and economic autonomy, and whose Testimony is
approved.
In 2008, it has financed its operating operations with Specific Resources (Own Income).
2. GENERALITIES.
In this contracting process, all consulting companies that so wish and that are registered in the respective “Registry of
Independent Auditing Firms and Professionals in the College of Auditors of Bolivia” may participate.
3. GENERAL OBJECTIVE.
The objective of the Financial Audit is to obtain an independent professional opinion regarding the reasonableness
with which the Financial Statements were prepared and whether they present reasonably in all significant aspects,
and in accordance with National or International Accounting Standards, the situation. patrimonial and financial, the
results of its operations, cash flows, the evolution of net worth, for the year from April 1, 2011 to March 31, 2012,
based on the review of the documentation generated by the organizational areas that make up the entity, and in
accordance with the provisions of the technical specifications indicated in this document and the Auditing Standards
issued by the College of Auditors.
4. SPECIFIC OBJECTIVES.
4.1 Determine whether the financial information is presented in accordance with criteria established or expressly
declared in the Notes to the Financial Statements.
4.2 Evaluate the structure and operation of the administration and control systems, verifying whether they have
been designed and implemented to achieve the Company's objectives, presenting the appropriate recom-
mendations.
LPS 1/1
SOBOSE COMPANY SA
4.3 Review and evaluate whether the Company has complied with specific financial requirements, verifying the
correct use of financial resources and compliance with Internal Control Standards and other legal provisions.
4.4 Evaluate the tax information generated in the management, verifying that it is complete and in accordance
with current legal regulations, including complementary tax information, with the 13 Annexes based on the
Resolution issued by the Directorate of Internal Taxes.
5. LOCATION AND AVAILABLE INFORMATION.
The Financial Audit must be carried out in the company's offices, whose information and documentation is located
there.
6. SCOPE OF SERVICES.
The Audit must include adequate planning with a focus aimed at achieving goals and objectives, to issue an opinion
on the reasonableness of the records and the Financial Statements between April 1, 2011 to March 31, 2012, as well
as the internal controls implemented in the Company, aimed at the following aspects:
6.1 It mainly includes the examination of the Balance Sheet as of December 31, 20011 and its corresponding
Account Statements of Assets and Liabilities, Statement of Resources and Expenses, Evolution of Equity,
Cash Flow Statement and Complementary Tax Information.
6.2 Monitoring the implementation of the recommendations of the audits carried out in the previous manage-
ment, evaluation of the implementation of the Company's controls, Information Systems: General review and
evaluation of the information technology systems, technological environment, management procedures. con-
trol.
6.3 Likewise, considering the complexity, increase and diversification of the Company's activities, the Audit firm,
based on experience and professional specialization in the field of Commerce, must develop field and office
work in the company's offices.
7. REQUIRED METHODOLOGY.
The Audit work must be carried out in accordance with the Auditing Standards in force in Bolivia, which corresponds
to the application of the processes of:
7.1 Audit Planning

The audit should be planned in such a way that the objectives of the examination are efficiently achieved.
LPS 1/2
SOBOSE COMPANY SA
In this sense, the Audit work must minimally consider, among others, the following aspects.
a) Terms of reference.
b) Understanding the activities
c) Planning analysis.
d) Relative importance.
e) Critical audit objectives.
f) Audit history.
g) Internal control.
h) Audit risks.
 Inherent risk
 Control risk .
 Detection risk .
i) sampling.
j) work programs.
k) Team formation and work schedule.
As a result of the audit planning process, a summary document (MPA) must be prepared, which must contain all the
aspects detailed in the Auditing Standards manual and those that are considered necessary to include, and that are
related to the objectives and scope of the exam.
7.2 Supervision
Personnel competent in the subject of the audit must systematically and timely supervise the work carried out by the
professionals who make up the audit team. Supervision includes directing the efforts of the audit team toward the
achievement of audit objectives and should include tasks such as:
 instruct the audit team;

 inform yourself of significant problems;
 review the work done;
 help resolve technical and administrative problems;
 and promptly assist and train the audit team.
Supervision should provide guidance on the performance of the examination and the achievement of the audit
objectives, to reasonably ensure that personnel clearly understand the work to be performed, why it is to be
performed and what it is expected to achieve, evidence of supervision in work papers, this task may vary according to
the importance of the work or the experience of the staff.
7.3 Execution of the Audit

LPS 1/3
Evaluation of the internal control system

SOBOSE COMPANY SA
An appropriate study and evaluation of internal control should be carried out as a basis for determining the nature,
extent and timing of audit procedures. The five components that interact with each other and are integrated into the
management process must be focused: Control environment, Risk assessment, Information and Communication
control activities, in addition to Supervision.
The work of the financial audit must give fundamental importance to the controls that have a direct and important
relationship with the financial records, in order to evaluate said controls to determine the nature, extent and timing of
the substantive procedures. The study and evaluation of internal control must include two phases:
a) knowledge and understanding of the procedures established in the entity, at the end of which, a preliminary
evaluation must be made assuming satisfactory compliance with internal control.
b) verification that the procedures related to internal controls are being applied as they were observed in the first
phase, with the purpose of determining the degree of confidence in the substantive tests.
The significant observations resulting from the study and evaluation of internal control and the relevant
recommendations must give rise to an evaluation report on internal control related to the accounting system.
Obtaining evidence
Competent and sufficient evidence must be obtained as a reasonable basis to support the external auditor's opinion.
The external auditor's work should consist largely of obtaining and examining evidence relating to the assertions -
Existence or occurrence, Integrity, Ownership or enforceability, Valuation. Presentation and Disclosure, which are
contained in the financial statements to formulate your opinion on them.
The evidence that supports these statements consists of accounting data and other information that corroborates it.
The evidence obtained by the audit may be Testimonial,

Documentaries, Physics, Analytical, Computer Science.
The evidence obtained by the audit must be kept in working papers. The working papers comprise all the documents
prepared or received by the external auditors, so that, together, they constitute a compendium of the tests carried out
during the audit process and the evidence obtained to form an opinion or abstain. her.
LPS 1/4
Working papers should serve three purposes: to provide the primary support for the external auditors' report, to allow
the external auditors to perform and supervise the audit, and finally to allow others to review the quality of the audit.
7.4 Communication of results and preparation of reports
The report must express whether the financial statements are presented in accordance with Accounting Standards. It
must also indicate if said standards have not been applied uniformly with respect to the previous year.
SOBOSE COMPANY SA
The information disclosures contained in the financial statements should be considered reasonably adequate, unless
otherwise indicated in the report.
The report must contain an opinion regarding the financial statements taken as a whole or a statement that an opinion
cannot be expressed. When such an opinion cannot be expressed, the reasons for this must be stated. Likewise, the
report must indicate the degree of responsibility that the auditor assumes regarding the opinion on the financial
statements.
Where an opinion is expressed on the financial statements taken as a whole, the report must clearly indicate that the
audit has been performed in accordance with the Auditing Standards.
7.5 Follow-up and subsequent events
The audit must take into account the events after the closing of the fiscal year and prior to the formal issuance of the
financial statements, which are significant, for which the following accounting treatment must be given to the financial
statements that correspond to the completed management:
 If they result from events that provide additional evidence regarding conditions that existed at the date of
the financial statements and affect the estimates related to their preparation, they require adjustments to
the financial statements.
 If they result from those events that provide evidence regarding conditions that did not exist at the closing
date of the financial statements, but that arose after said date, they do not require adjustments but do re-
quire adequate disclosure in the notes to the financial statements of the company. closed management.
7.6 Determine the general state of the company related to administrative and financial activities, formulate
those specific recommendations consistent with the company's objectives inherent to the new role it
fulfills, both long and short term that allows it to improve and strengthen its management, ensure the
transparency, objectivity and independence of its decisions within the framework of current regulations.
LPS 1/5
7.7 Obtain an independent professional opinion on the internal control system and tax information, on the rea-
sonableness of the financial statements for the fiscal year from April 1, 2011 to March 31, 2012 and complementary
reports.
7.8 Present the work methodology to be applied, chronologically ordered and coherently structured, supported
by good planning and optimal use of the appropriate methods, techniques and instruments.
SOBOSE COMPANY SA
7.9 Precentate the Work Plan, which details the activities scheduled to achieve the stated objectives, in addition
to the logistics and organization of the work group that will develop the proposed work plan.
8. REPORTS AND CALENDAR OF ACTIVITIES.
The external auditor will deliver the short final report and the long final report to the Administration Management in 10
originals and on magnetic media, (compact disk), complying with the delivery deadlines stipulated below:
8.1 Presentation of an Audit Planning Memorandum that includes the scope and schedule of activities of the ser-
vices provided, as well as the list of professional personnel in charge of executing the audit within a period of 15 cal -
endar days from the beginning of the audit. service.
8.2 Presentation of a short report, which includes the professional opinion of the reasonableness of the Financial
Statements, the internal financial control report and an analysis on the correct use of resources, as a draft called
Short Discussion Report that must be presented within of ninety (90) calendar days counted from the start of the ser -
vice.
The Short Final Report must be submitted ten (10) days after the approval of the Short Discussion Report.
8.3 The Final Long Discussion Internal Control Report must be presented within thirty calendar days, counted
from the presentation of the Short Discussion Report, which includes the evaluation of complementary tax
information, administration and control systems, monitoring to the implementation of the recommendations contained
in the audit reports of the previous management, and information systems.
9 DATA, SERVICES, PERSONNEL AND FACILITIES TO BE PROVIDED BY THE CONVENER .
To comply with the required Audit, the company will provide the physical space and furniture in the facilities where the
work is carried out, with the exception of the photocopy service and computer equipment.
LPS 1/6
10 PERIOD OF PERFORMANCE OF THE AUDIT SERVICE.
The period to carry out the audit service will be a maximum of 120 (one hundred and twenty) calendar days, starting
from the order to proceed or the date of signing the contract.
11 PROFESSIONAL RESPONSIBILITY OF THE AUDIT FIRM

SOBOSE COMPANY SA
The auditor will carry out his tasks in strict application of Auditing Standards and professional ethics, being directly
and absolutely responsible for the audit work to be carried out, he must be responsible for the work carried out, so if
required for any pertinent clarification or correction will be summoned in accordance with current regulations.
The auditor is responsible for the work carried out within the terms of reference, mentioning the application of the
Auditing Standards and others according to the particularity of the Company.
The Auditor is responsible for maintaining complete integrity and objectivity of the information that has been given
confidentially in order to carry out the requirements assigned to him and obtain sufficient, reliable and useful evidence
to effectively achieve the objectives of the Audit. .
All reports issued and delivered by the Audit firm to the Company will be the property of SOBOCE and no part of them
may be disclosed by the firm without the prior consent of the contractor; consent that must be in writing.
The three Auditors must be included in Model Form No. 10 “Activity Schedule”; However, it should not be taken into
account for the calculation of the 20% workload of the Audit Manager.
12 PROFILE OF THE CONSULTANTS:
To fulfill the objectives, the audit firm must present a description of the training and experience of each of the
professionals that the proponent agrees to assign to the service, duly registered in the College of Professionals to
which they correspond and legally qualified.
Certifications issued by the Audit firm itself will be accepted. Auditors, lawyers and other professionals who are former
SOBOCE officials may be included in the work team to be proposed, only if one year has passed since the
termination of the employment relationship with the company.
The professional profile that should be considered is the following:
12.1 An Audit Manager with a Postgraduate and/or Master's degree, with a minimum general experience of 5
years in Auditing private companies and Public Entities.
LPS 1/7
12.2 an Auditor and a Field Supervisor (Specialists) with a Postgraduate and/or Master's degree with a minimum
of 3 years general experience in Auditing private companies and Public entities.
12.3 A Systems Engineer or Computer Science graduate with a Postgraduate or Master's degree, and a minimum
of 3 years general experience in Audits of private companies and Public Entities (if applicable).
12.4 A Graduate in Legal Sciences, with a postgraduate or master's degree, with a minimum general experience
of 3 years in Audits of private companies and Public Entities.
SOBOSE COMPANY SA
12.5 A graduate in Public Accounting specializing in taxation with 3 years of general experience in Audits of pri-
vate companies and Public Entities (if applicable).
12.6 At least three Graduates in Public Accounting or Auditing with a degree in National Provision or Academic Ti-
tle, which for the purposes of the Terms of Reference is called “June Auditor”, qualified to carry out audit work, and
with a minimum of one year's general experience in Audits of private companies and Public Entities.
Only in the case of “Junior Auditors”, registration in the respective professional association will not be required.
In relation to the Auditors who are included in the proposal, they must meet the requirements established above, and
it is not necessary for them to apply Model Form No. 9; However, they must attach an information form documented
in a simple photocopy with the following information: Names and Surnames, Date of the Title in National Provision /
Academic Title, and General Experience. In case of award, original documentation or copies legalized by the entities
that issued the original documents must be presented.
13 CURRENCY AND PAYMENT METHOD.
The proposal and payment of the contract amount must be expressed in legal tender, therefore the payment method
will be the following after presentation of the corresponding fiscal notes:
13.1 Advance payment of twenty percent (20%) upon signing the contract, upon presentation of a Bank Note
guarantee, for correct investment of the advance.
13.2 Thirty percent (30%) first payment, of the total value of the contracted service, against the presentation and
acceptance of the Short Final Report that includes the Professional Opinion on the Financial Statements according to
compliance with the schedule of work activities.
13.3 Fifty percent (50%) last payment, of the total value of the contracted service, upon presentation of the Long
Final Report by the contracted consultant, and acceptance by the contracting company.
LPS 1/8
The auditor assumes the tax and social obligations that arise from the execution of the activities provided for in the
Contract.
The auditing firm undertakes to comply with this document.
14 COMPLEMENTARY ASPECTS
In relation to the documentation requirements in Legalized Photocopy of Forms No. 6214 Verification of the Legal and
Administrative Documents of Envelope “A”, and No. 6215 Evaluation of Legal and Administrative Documents of
Envelope “A”, the provisions of the numerals 7.2. And 7.4 of the Base Contracting Document; that is, documentation
SOBOSE COMPANY SA
in simple photocopies, which for the signing of the contract must be presented in originals or photocopies legalized by
the entities that issued the original documents.
Cochabamba, April 2012

SOBOSE COMPANY SA
LPS 2
COVERING LETTER OF THE TECHNICAL PROPOSAL
Date Cochabamba May 20, 2011

Sirs:
SOBOCE SA
Present
Ref.: Public Call No. _0010/11

(EEFF AUDIT)
From my consideration:
After having examined the Base Contracting Document approved by Administrative Resolution No. 0022-
10-11 (5), the undersigned offers to provide the reference audit services, in accordance with said
documents, for the amount and within the period indicated in the proposal.
I declare the veracity of all the information provided and hereby authorize any natural or legal person to
provide the representatives of the Entity with all the information they consider necessary to verify the
documentation I present, and if any incorrectness in it, I am notified that your Entity has the right to
disqualify my proposal.
If my proposal is accepted, I undertake to present within the period established in the Base Contracting
Document, the original documents or legalized photocopies of each and every one of the documents
presented in photocopy and a contract performance guarantee for an amount equivalent to the seven
percent (7%) of the total value of the Contract to ensure due compliance thereof.
I also express my full acceptance of the content of the Base Contract Document, adhering to the text of the
contract.
LPS 2/1
SOBOSE COMPANY SA
I agree to maintain this proposal for a period of 120 days from the date set for the opening of proposals.
The proposal will bind me and may be accepted at any time before the indicated period expires.
This proposal, together with the award notification, will constitute a mandatory commitment, until a formal
contract is prepared and signed in accordance with the model presented in the Base Contracting Document.
______________________________
_____________________________ ____________________________
SOBOSE COMPANY SA
LPS 3
CONTRACT MINUTES
GOVERNMENT NOTARY OF THE DISTRICT OF COCHABAMBA

In the registry of Public Deeds in your charge, you will be able to insert this Audit services contract in support of the
Subsequent External Control to carry out a financial audit, subject to the following clauses:
GENERAL CONDITIONS OF THE CONTRACT
FIRST .- (CONTRACTING PARTIES) You will say that the Contracting parties are: SOBOCE S.A, represented by
ARMANDO RAMIRO GUMUCIO KARS CULOVIK, which from now on will be called the CONTRACTING PARTY and
NVN AUDITORES, legally represented by Power of Attorney No. 002-25/00 granted on APRIL 29, 2012 in the CITY
OF COCHABAMBA in favor of LIC. AGUILAR GARCÍA SILVIA CI 5199838, which from now on will be called the
AUDITOR, those who celebrate and sign this Audit Services Contract.
SECOND .- (LEGAL BACKGROUND OF THE CONTRACT) You will say that the CONTRACTING PARTY, through
the Proposal Contest modality , through Public Call No. ( 00555), with CUCE No. 05/22/11 , publicly called for Firms
or independent professionals to present documents, technical and economic proposals for evaluation, all under the
rules and regulations for contracting of the Regulation for the Contracting of External Audit services in support of
Subsequent External Control.
The Qualification Commission of the CONTRACTING Entity, after the opening of the submitted proposals, carried out
the analysis and evaluation of both Envelope “A” and Envelope “B”, having issued a report and recommendation to
the Person Responsible for the Contracting Process of the Entity, the same that was approved, based on which, the
Administrative Award Resolution No. 003-05-0011 of April 29, 2012 was pronounced , resolving to award the
provision of the service to (NVN AUSITORE ) , for having been qualified in the first place. First, when your proposal
meets all the requirements and is the most convenient to the interests of the CONTRACTING Entity.
THIRD.- (OBJECT OF THE CONTRACT) The AUDITOR undertakes and is obliged by this Contract to provide the
service for the FINANCIAL AUDIT OF THE FINANCIAL STATEMENTS until its conclusion, which from now on will be
called the AUDIT , with strict and absolute subjection to this Contract. , to the documents that form part of it and to the
contractual clauses contained in this legal instrument.
For the correct provision of the service until its conclusion and to guarantee its quality within the terms of reference,
as well as within the terms of the Proposal presented by the AUDITOR, (which form part of this Contract) the AUDI-
TOR is obliged to provide the service, with the appropriate professional staff and equipment offered, as well as, in ac-
cordance with the contracting documents.
LPS 3.1
SOBOSE COMPANY SA
FOURTH.- (TERM OF SERVICE PROVISION) The AUDITOR will carry out his activities in a satisfactory manner, in
strict accordance with the scope of work, the awarded proposal, the terms of reference and the schedule of activities
within a period of (120,) days calendar, which will be computed from the date of signing the contract or the date on
which the advance payment is made effective if it is granted.
FIFTH.- (AMOUNT OF THE CONTRACT) The total amount proposed and accepted by both parties for the execution
of the object of this Contract is: Bolivianos Seven hundred thousand 700000/00 , established in the Award Resolution
002-20-00. This price is the result of applying the prices of the awarded proposal, established in the economic
proposal that is part of this Contract.
It is established that the prices stated in the awarded proposal include all the elements, without exception, that are
necessary for the performance and fulfillment of the AUDIT service.
It is the exclusive responsibility of the AUDITOR to provide the contracted services within the amount established as
the cost of the service, since no payments will be recognized or made for services that exceed said amount.
SIXTH.- (ADVANCE PAYMENT) After the Contract has been legally signed, in order to cover mobilization expenses,
the CONTRACTING PARTY will deliver to the AUDITOR , in accordance with his proposal, and at his express
request, an advance payment of up to twenty percent (20 %) of the total amount of the service at most, an amount
that will be discounted in DRAWABLE CHECKS until the total amount of the advance is covered.
THE CONTRACTING PARTY will have direct control of the validity and validity of the Guarantee of Correct
Investment of the Advance, in terms of the amount and term, in order to request its extension to the AUDITOR or
proceed with its execution.
SEVENTH.- (GUARANTEES) The AUDITOR guarantees compliance with this Contract, with the following
guarantees:
7.1 Contract Compliance Guarantee: The AUDITOR guarantees the correct compliance and faithful execution of this
CONTRACT in all its parts with Guarantee Note No. 001515 issued by EL BANCO NACIONAL DA BOLIVIA
BNB on APRIL 29, 2012 with validity until April 29. JUNE 2012, to the order of SOBOCE SA for seven percent
(7%) of the value of the Contract, equivalent to: Bolivians FORTY-NINE THOUSAND (49000).
The amount of said guarantee in the event of any contractual breach incurred by the AUDITOR will be
executed and paid in favor of the CONTRACTING PARTY without the need for any judicial procedure or
action, at its sole request.
However, if the product is definitively received within the contractual period and in a satisfactory manner, a fact
that will be recorded by the corresponding Minutes, signed by both Contracting Parties, said guarantee will be
returned after the Liquidation of the Contract, together with the Contract Compliance Certificate.
LPS 3.2
SOBOSE COMPANY SA
The AUDITOR has the obligation to keep the Contract Compliance Guarantee updated during its validity. The
CONTRACTING PARTY will directly control its validity under its responsibility.
7.2 Guarantee of Correct Investment of the Advance . : The AUDITOR will deliver to the CONTRACTING PARTY ,
on the date he receives the advance, a GUARANTEE NOTE Nº 001515 issued by BANCO NACIONAL DA
BOLIVIA BNB on APRIL 29, 2012 with validity until JUNE 29, 2012, to the order of SOBOCE SA , for one hun-
dred percent (100%) of the amount of the advance requested by the AUDITOR equivalent to: BOLIVIANOS
FORTY-NINE THOUSAND (49000) valid until the total amortization of the advance, to the order of SOBOCE
SA
The amount of the guarantee may be collected by the CONTRACTING PARTY in the event that the AUDITOR
has not started the provision of the service within the 120 days established for this purpose, when it is proven
that the Independent Professional or Audit Firm had made an incorrect investment of the advance payment, by
termination of the contract for reasons attributable to the AUDITOR , before the entire advance payment has
been deducted, or in the event that there is no personnel to perform the service stipulated in the contract, once
it has started.
This original guarantee may be replaced periodically by deducting the amortized amount and issued for the
balance that remains to be amortized.
The substitute guarantees must remain valid continuously and until the originally planned period, so the
AUDITOR will carry out the corresponding actions for this purpose in a timely manner.
7.3 The guarantees described above will be under the custody of the Administrative Area, which will not exempt the
responsibility of the CONTRACTING PARTY.
EIGHTH.- (ADDRESS FOR NOTIFICATION PURPOSES) Any notice or notification to the parties under this Contract
will be sent: to the AUDITOR Cochabamba Zona Central Av. San Martin N° 2126 Max Building Fourth Floor Office
5D.
To the CONTRACTING PARTY : Calle Mercado N° 1075, LA Paz Bolivia
NINTH.- (VALIDITY OF THE CONTRACT) This Contract will come into force once the advance payment has been
signed or granted, and the following procedures must then be completed:
1. Be protocolized, when appropriate.
2. Be registered with the Comptroller General of the Republic, attaching the supporting documentation, as estab-
lished in the Specific Regulations.
TENTH.- (CONTRACT DOCUMENTS) In order to comply with the provisions of this contract, the following documents
form part of it, without requiring formalization:
10.1 Base Contract Document for Call No. 0010/11
LPS 3.3
SOBOSE COMPANY SA
10.1.1 Terms of reference

10.1.2 Other documents necessary for the provision of the service such as
10.1.3
10.2 Complete documents of the AUDITOR proposal , including the Economic Proposal Model, details of qualified
personnel and equipment assigned to provide the service, program and execution method, and technical pro-
posal.
10.3 Administrative Award Resolution.
10.4 Specific Annexes to the Contract.
10.5 Accidental Partnership Agreement, if applicable.
ELEVENTH.- (LANGUAGE) This Contract, all the documentation applicable to it and the documentation that emerges
from the service, must be prepared in Spanish, as it is the official language of Bolivia.
TWELFTH.- (LEGISLATION APPLICABLE TO THE CONTRACT) This contract is an Administrative Contract,

therefore it is subject to the regulations provided for in Law No. 1178, on Government Administration and Control, in
the aspects of its execution and results.
THIRTEENTH.- (AUDITOR RIGHTS): The AUDITOR has the right to file claims for non-payment of the service
provided, or for any other aspect stated in this Contract.
Claims must be raised in writing and in documented form up to ten (10) business days after the event.
Within the non-postponable period of twenty (20) business days, the CONTRACTING PARTY will analyze the claim,
in order to accept or reject it, a period computed from receipt of the claim. (If the service provision period is short, the
expected period may be reduced in accordance with the contract period.)
The CONTRACTING PARTY will not address claims submitted outside the period established in this clause.
FOURTEENTH.- (STIPULATIONS ON TAXES) The AUDITOR will be responsible for paying all taxes in force in the
country, on the date of presentation of the proposal.
FIFTEENTH.- (COMPLIANCE WITH LABOR LAWS) The AUDITOR must strictly comply with the labor and social
legislation in force in the Republic of Bolivia.
THE AUDITOR is solely responsible for any fine or penalty of any type or nature that was imposed due to non-
compliance or violation of said labor or social legislation, and the CONTRACTOR is excluded from said
responsibilities.
SIXTEENTH.- (PRICE READJUSTMENT).

LPS 3.4
SOBOSE COMPANY SA
The CONTRACTING PARTY will not acknowledge to the AUDITOR the price adjustment.
SEVENTH.- (CONTRACT PROTOCOLIZATION) (This article must be eliminated in amounts that are not applicable
as established in the Contracting Regulations) This minute will be protocolized with all the formalities of the Law by
the CONTRACTING PARTY, so it is part of the amount of the contract, the amount that for protocolization must be
paid by THE AUDITOR and for the purposes of its use it is established that the amount foreseen for this procedure is
Two thousand Bolivianos ) , which will be deducted from the AUDITOR by the CONTRACTING PARTY in the first
month of service provision, to carry out the protocolization process.
This protocol will contain the following documents:

- Contract minutes (original).
- Legal document of representation of the CONTRACTING PARTY and Power of legal representation of
AUDITOR (legalized photocopies).
- Guarantees (simple photocopy).
In the event that for any duly justified circumstance, this document is not formalized, it will serve for the purposes of
the Law and its compliance, as a sufficient document for the parties.
EIGHTEENTH.- (INTRANSFERIBILITY OF THE CONTRACT) The AUDITOR under no circumstances may assign,
transfer, subrogate, totally or partially this Contract.
NINETEENTH.- (CAUSES OF FORCE MAJEURE AND/OR FORTUOUS EVENT). In order to exempt the AUDITOR
from certain responsibilities for late payment during the term of this contract, the CONTRACTING PARTY will have
the power to qualify the causes of force majeure and/or fortuitous event, which could have effective consequences on
the execution of the Contract.
Force majeure is understood to be the external, unforeseen or inevitable obstacle that causes a force foreign to man
that prevents the fulfillment of the obligation (example: fires, floods and other natural disasters).
Fortuitous event is understood to be the internal obstacle attributable to man, unforeseen or inevitable, coming from
the very conditions in which the obligation had to be fulfilled (Example: civil commotions, strikes, blockades and
revolutions.).
So that any of these events may constitute justification of an impediment in the service provision process or a delay in
compliance with those provided for in the Work Schedule, giving rise to delays in progress, in an inexcusable and
essential manner in each case. AUDITOR must expressly justify with supporting documentation the existence of the
impediment, within five (5) business days of the event occurring, without which and within the established period, in
no way and for no reason may he request an extension of the period. of the Contract or exemption from payment of
penalties.
LPS 3.5
SOBOSE COMPANY SA
TWENTY.- (TERMINATION OF THE CONTRACT) This contract will conclude under one of the following modalities:
20.1 FOR FULFILLMENT OF CONTRACT

The CONTRACTING PARTY and the AUDITOR will terminate this Contract once both parties have complied with all
the conditions and stipulations contained therein, which will be recorded in writing.
20.2 BY TERMINATION OF THE CONTRACT

If the case arises and as an exceptional way to terminate the contract, for the corresponding legal purposes, the
CONTRACTING PARTY and the AUDITOR may invoke the following causes to process the termination of the
Contract:
20.2.1 RESOLUTION AT THE REQUEST OF THE CONTRACTING PARTY, for reasons attributable to the
AUDITOR . The CONTRACTING PARTY may terminate the contract in the following cases:
a) For failure to initiate services, if it takes more than fifteen (15) calendar days to start the work. (in case
of short-term service, this period may be reduced).
b) Due to dissolution of THE AUDIT FIRM .
c) Due to declared bankruptcy of THE AUDIT FIRM
d) For suspension of service without justification, for 30 calendar days, without written authorization from
the CONTRACTING PARTY.
e) For unjustified non-compliance with the service provision schedule without the AUDITOR adopting nec-
essary and timely measures to recover its delay and ensure the completion of the service within the
current period.
f) Due to non-compliance with the participation of the main professionals included in the proposal, quali-
fied for the award of the service (Audit Manager and/or Lawyer).
g) By subcontracting of or a part of the service without this having been foreseen in the proposal.
h) When the amount of the fine for delay in the provision of the service and/or in the delivery of the final
product reaches ten percent (10%) of the total amount of the contract - optional decision -, or twenty
percent (20% ) mandatory.
20.2.2 RESOLUTION AT THE REQUEST OF THE AUDITOR FOR CAUSES ATTRIBUTABLE TO THE
CONTRACTING PARTY , The AUDITOR may Terminate the Contract, in the following cases:
-Due to unjustified instructions from the CONTRACTING PARTY for the suspension of the provision of the ser-
vice for more than thirty (30) calendar days.
-If, deviating from the terms of the contract, the CONTRACTING PARTY intends to carry out increase or de-
crease in the service without issuance of a Modifying Contract, which in the case of increases guarantee pay-
ment.
20.3 RULES APPLICABLE TO RESOLUTION: To process the Termination of the Contract for any of the indicated
causes, the guarantees must be fully in force and the CONTRACTING PARTY or AUDITOR will give notice by
notarized letter to the other party of their intention to terminate the Contract, establishing clearly the alleged cause.
LPS 3.6
SOBOSE COMPANY SA
If within fifteen (15) business days following the date of notification, the failures are amended, the development of the
services will be normalized and the necessary measures will be taken to normally continue with the stipulations of the
Contract, the person requesting the resolution, will express in writing its agreement to the solution, with the notice of
intention to resolve being withdrawn.
Otherwise, if at the expiration of the fifteen (15) day period there is no response, the resolution process will continue
to which end the CONTRACTING PARTY or the AUDITOR , depending on who requested the resolution of the
contract, will notify by notarized letter to the On the other hand, that the termination of the contract has become
effective.
This letter will give rise to the execution and payment in favor of the CONTRACTING PARTY of the Contract
Performance Guarantee and the Correct Advance Investment Guarantee (if applicable) when the resolution is for
reasons attributable to the AUDITOR. The CONTRACTING PARTY will be free to contract the Audit services with
another AUDIT FIRM or INDEPENDENT PROFESSIONAL ; For which purpose, it will consult the second-ranked
bidder to establish whether it maintains its proposal and so on, as long as said proposals are acceptable in price and
deadline.
20.4 RESOLUTION DUE TO CAUSES OF FORCE MAJEURE OR FORTUOUS EVENT THAT AFFECTS THE
CONTRACTING PARTY or the AUDITOR: If at any time before the termination of the provision of the service that is
the subject of the Contract, the CONTRACTING PARTY finds itself in situations beyond the control of the parties that
make the conclusion impossible. of the service or go against the interests of the State, the CONTRACTING PARTY at
any time, by means of a notarized letter addressed to the AUDITOR, will suspend the work and terminate the Con -
tract in whole or in part.
Upon delivery of said official resolution communication, the AUDITOR will suspend the service in accordance with the
instructions issued for this purpose by the CONTRACTING PARTY .
TWENTY-FIRST.- (RESOLUTION OF DISPUTES).

In the event of disputes arising between the CONTRACTING PARTY and the AUDITOR, the parties are entitled to go
to court, under coercive fiscal jurisdiction.
TWENTY -TWO.- (MODIFICATIONS TO THE CONTRACT) The terms and conditions contained in this Contract may
be modified in the cases and through the instruments expressly provided for in this Contract and in no way
unilaterally.
II. SPECIAL CONDITIONS OF THE CONTRACT
TWENTY-THIRD .- (BEGINNING OF SERVICE PROVISION) The provision of the service will be effective from the
date on which the AUDITOR begins the Audit, which will coincide with the date of signing the contract or the date on
which make the advance payment effective if it is granted.
LPS 3.7
SOBOSE COMPANY SA
TWENTY -FOUR.- (COUNTERPART) In order to monitor and control the service to be provided by the AUDITOR, the
CONTRACTING PARTY will designate in writing one or more competent public servants AUDITORS , from the staff
of the requesting area, who will be responsible for making fulfill the formal part of the contract as compliance with the
proposed deadlines, carry out periodic controls in order to verify that the personnel proposed to perform the service
by the Independent Professional or Audit Firm hired in support of the Subsequent External Control, are the ones
participating in execution and according to the committed schedule, as well as the authorized means of
communication and notification with the AUDITOR.
TWENTY -FIFTH.- (AUDIT MANAGER) The AUDITOR appoints LIC as his Audit Manager in the service. VEIZAGA
TORRICO DANITZA, who is authorized to:
a) Direct the Audit service.
b) Represent THE AUDIT FIRM throughout the provision of the service.
c)Keep the CONTRACTOR permanently informed about all aspects related to the service.
TWENTY-SIXTH.- (FIRM STAFF OR INDEPENDENT PROFESSIONAL) Experienced professional and technical

personnel will fulfill their duties and responsibilities assigned to the service, according to the number and specialties
indicated in their technical proposal, according to the work schedule.
The main proposed professionals, the basis on which the qualification was made and the award was determined
(Audit Manager and Lawyer), cannot be replaced. Any change of other qualified professionals in the proposal, except
those mentioned above, will be exceptional, and will be duly justified as force majeure by the AUDITOR , replacing it
with another of equal or higher level, in accordance with what is expressly established in the Base Document of
Contracting. ( In the case of hiring an Independent Professional, this paragraph is not considered and must be
excluded)
26.1 The AUDITOR will contract insurance for the following concepts, the cost of which is included in the amount
received for this contract:
Accidents or disability for AUDITOR personnel, in accordance with the General Labor Law of Bolivia.
TWENTY-SEVENTH.- (REPORTS) The AUDITOR will submit to the CONTRACTING PARTY the reports provided for
in the terms of reference.
The final report must be presented by the AUDITOR in FOUR COPIES.
TWENTY -EIGHTH.- (APPROVAL OF REPORTS AND OWNERSHIP THEREOF)

28.1. APPROVAL PROCEDURE: The COUNTERPART , once received the final report and its components that
emerge from the Audit, will review the formal aspects and will inform the AUDITOR of its observations within a
maximum period of THIRTY (30) calendar days computed from from the date of its presentation. If within the
established calendar days, the COUNTERPART does not send its observations
LPS 3.8
SOBOSE COMPANY SA
to the AUDITOR, the final report, defined in the preceding clause, will be considered approved.
The AUDITOR undertakes to satisfy within a period of FIFTEEN (15) calendar days of receipt, any request for
clarification or observation made by the COUNTERPART; Failure to comply with the established deadline generates
fines for each day of delay as established in CLAUSE THIRTY-FOURTH.
28.2. AFTER THE FINAL REPORT IS APPROVED BY THE COUNTERPART, it will be sent to the Reception
Committee to receive and analyze the reports issued by the AUDITOR in accordance with the provisions of the Terms
of Reference, the technical proposal, the presentation schedule and the conditions of the contract. If there are no
observations, it will approve them and prepare the report accordingly.
Once the receipt and conformity report has been issued, the final payment will be processed in favor of the
AUDITOR.
28.3. OWNERSHIP OF THE EMERGING REPORTS OF THE AUDIT: The final document in original, copy and
photocopies of the same, as its magnetic support, and other documents resulting from the provision of the service are
the property of the CONTRACTING PARTY and, consequently, must be delivered to it upon completion of the Audit
service, and it is absolutely prohibited for AUDITOR to disseminate said documentation, in whole or in part, without
prior written consent of the CONTRACTING PARTY, except for sending the report to the Comptroller General of the
Republic, as established by Law No. 1178 and the Regulations. approved by Supreme Decree No. 23215.
THE AUDITOR is prohibited from disclosing or revealing any reserved and confidential information to which he may
have access in the execution of the Contract, unless written authorization has been granted. This prohibition also
extends to employees, legal representatives and other officials of the AUDITOR .
THE AUDITOR may only mention the service to third parties, as proof of his professional background, on which the
CONTRACTING PARTY will issue the relevant detailed certification.
28.4. OWNERSHIP OF THE WORK PAPERS: The work papers that support the audit reports issued by the
Independent Professionals and Audit Firms are their property.
TWENTY -NINTH.- (PAYMENT METHOD) Payment will be made according to the following detail:
- Advance payment (maximum 20%)
- Partial payment (50%)
- Final Payment (50%) (record the period or expected
date) .
If the partial or total payment delay exceeds sixty (60) calendar days, from the date of the Conformity Report issued
by the Reception Commission ; The AUDITOR has the right to claim payment of interest on the unpaid amount for
each additional day of delay, starting on day sixty-one (61), calculated based on the nominal weighted average
annual passive interest rate of the banking system. for savings deposits in national currency that are periodically
published by the Central Bank of Bolivia, from the week prior to which the interest is going to be set, which will be
divided into three hundred and sixty-five (365) days and multiplied by the days of delay incurred by the
CONTRACTING PARTY .
LPS 3.9
SOBOSE COMPANY SA
THIRTY .- (BILLING) The AUDITOR will issue the corresponding invoice in favor of the CONTRACTING PARTY
against each payment.
If the respective invoice is not issued, the CONTRACTING PARTY will not make payment effective.
THIRTY-FIRST.- (MODIFICATION TO THE TERM OF SERVICE)

Through Modifying Contract:
The term of execution of the service will be modified only due to circumstances of force majeure or fortuitous event
following technical-legal support that establishes the causes and reasons why this document should be signed, which
must be sent to the Highest Executive Authority for approval. of the signing of the modifying contract.
THIRTY-SECOND.- (RESPONSIBILITY AND OBLIGATIONS OF THE AUDITOR

Technical Responsibility: The AUDITOR assumes absolute technical responsibility for the professional services
provided under this contract, as established in the Terms of Reference and technical-economic proposal, so he must
carry out his work in accordance with the technical standards of professional competence. , laws, Government
Auditing Standards and others related to professional practice and the purpose of the SERVICE.
The AUDITOR guarantees and is responsible for the service provided under this Contract, so if his/her presence is
required in writing, for any clarification, after the settlement of the contract, he/she undertakes not to deny his/her
participation.
The AUDITOR should not replace the audit manager and Lawyer, because the qualification obtained in the call is
based mainly on the competence of said professionals.
The AUDITOR will carry out their audit with a minimum scope of 70% of the operations subject to examination; scope
that must be extended to operations and accounts in which fraudulent transactions are established.
35.1 CIVIL LIABILITY: The AUDITOR will be solely responsible for judicial and/or extrajudicial claims made by third
parties that result from acts or omissions related exclusively to the provision of the service under this contract.
THIRTY-THIRD.- (SUSPENSION OF ACTIVITIES) The CONTRACTING PARTY is authorized to temporarily suspend

the services presented by the AUDITOR, at any time for reasons of force majeure, fortuitous event and/or reasons
convenient to the interests of the State, for which it will notify the AUDITOR in writing, with an advance notice of 5
calendar days, except in cases of urgency due to an emergency, this suspension may be total or partial.
LPS 3.10
If the suspension is longer than ten (10) calendar days, the contract execution period will be extended.
SOBOSE COMPANY SA
Likewise, the AUDITOR may communicate to the CONTRACTING PARTY the suspension or temporary cessation of
its services in the AUDIT, when situations of force majeure or fortuitous events arise, circumstances that must be duly
supported and approved by the CONTRACTING PARTY, this suspension may be partial or total. . If the suspension is
longer than ten (10) calendar days, the contract execution period will be extended.
THIRTY -FOURTH.- (DEFAULT AND ITS PENALTIES) It is agreed between the contracting parties that if the
AUDITOR does not deliver the final product within the period established in the contract, default will be constituted
without the need for any prior request from the CONTRACTING PARTY, being obligated only by the expiration of the
term to pay for each calendar day of delay in fulfilling the contract, a fine equivalent to half a percent (0.5%) of the
amount of the services, for each calendar day of delay.
If the observations made by the COUNTERPART are not corrected within the period established in CLAUSE
TWENTY-EIGHTH, NUMBER 28.1, a fine of half a percent (0.5%) of the total amount of the services will be applied,
for each calendar day of delay.
These fines will be deducted before final payment.
THIRTY-FIFTH.- (CERTIFICATE OF CONTRACT COMPLIANCE)

Once the Conformity Report has been issued by the Reception Commission, the contracting entity will proceed to
close the contract by issuing the Contract Compliance Certificate.
THIRTY-SIXTH.- (FINAL SETTLEMENT PAYMENT PROCEDURE)

The following concepts will be deducted from the amount of the Final Payment:
36.1 Previous sums already paid
36.2 Replacement of damages, if any.
36.3 The percentage corresponding to the recovery of the advance if there are outstanding balances.
36.4 Fines and penalties, if any.
36.5 For the formalization of the contract, if this payment has not been made.
Likewise, the AUDITOR may establish the amount of payments to which he considers he is entitled, which had been
claimed, supported and timely (within thirty calendar days (30) of the event that gave rise to the claim) and which had
not been paid by the CONTRACTING PARTY .
Once the final payment has been prepared by the technician designated for this purpose, he will send it to the
CONTRACTOR 's office, for information, who, if applicable, will require the clarifications that I consider pertinent. If
there is no observation for payment processing, it will be authorized.
LPS 3.11
This process will use the deadlines provided in clause twenty-ninth of this Contract, for the payment of balances if
they exist.
SOBOSE COMPANY SA
THIRTY-SEVENTH.- (CONFORMITY) As a sign of conformity and for its faithful and strict compliance, this Contract is
signed in four copies of the same tenor and validity by ARMANDO GUMUCIO KARZ CULOVING , in legal
representation of the CONTRACTING PARTY , and Lic. TORRES DIAZ DILAN
This document, in accordance with current legal provisions of fiscal control, will be registered with the Comptroller
General of the Republic.
You, Mr. Notary, will be kind enough to insert all other clauses that are of style and security.
Cochabamba April 29, 2012
___________________________ _________________________
Lic. TORRES DIAZ DILAN ARMANDO GUMUCIO KARZ CULOVING

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CONSULTANT LJJ & ASSOCIATES

INITIALS RUBRIC AND DATE

2. BACKGROUND, OPERATIONS OF THE COMPANY AND THEIR INHERENT RISKS

4. UNDERSTANDING COMPONENTS OF INTERNAL CONTROL

Control Environment - Management philosophy in relation to internal control, independent

7. AUDIT RISK FACTORS AND AUDIT APPROACH BY ITEMS

8. AUDIT EMPHASIS ROTATION

10. INTERNAL AUDIT SUPPORT

11. SUPPORT FROM OTHER PROFESSIONALS

12. WORK ADMINISTRATION

13. WORK PROGRAMS

1.1 Nature of audit work

1.2 Audit Objective

1.3 Quantities and types of reports to be issued

 Audit opinion on the reasonableness of the financial statements as of December 31,

1.4 Scope of review and restrictions

1.5Regulations, principles and legal provisions to apply

Rules and legal provisions to apply:

 International Financial Reporting Standards (IFRS)

 International Standards on Auditing (ISA)

 Regulatory documents of the entity, manuals, regulations and others.

1.6 Auditor's responsibility

2 BACKGROUND, OPERATIONS OF THE COMPANY AND ITS INHERENT RISKS

2.1 BACKGROUND AND OBJECTIVES

It is registered with the National Tax Service with NIT 120235024.

The main objective of the SOBOCE SA industry is:

2.2 ORGANIZATION AND STRUCTURE

SOBOCE SA ORGANIZATION CHART

COMPANY SOCIEDAD BOLIVANA DE CEMENTO SA Period: 2011

Made up of 6 partners, they correspond to the highest decision-making and deliberation

2.4 NATURE OF OPERATIONS

The main activities of the cement industry are the following:

 Cement manufacturing. IP-40 and IP30

Who does it do it for?

2.5 SOURCES OF RESOURCE GENERATION

2.6 RESOURCE APPLICATION

a) Competitive Children and Youth

- The company makes DONATIONS OF CEMENT, PREMIXED CONCRETE AND

2.7 MANAGEMENT INFORMATION ISSUED

It has an administrative manual, which allows it to regulate the administrative accounting

The accounting practices adopted by the Tannery are the following:

Accounting estimates - The preparation of financial statements in accordance with accounting

Consideration of the effects of inflation - In accordance with Resolution CTNAC 01/2008 of

b) Temporary investments - Temporary investments in: a) Investment Fund Management

f) Permanent investments - Investments are updated and valued as follows:

- The shares of Fábrica Nacional de Cemento SA (FANCESA), at their proportional equity

- The capital quotas in Sociedad Explotadora de Minerales Calcáreos Ltda. (EXMICAL), at

- The shares in Especialistas en Minerales Calizos SA (ESMICAL), at their proportional eq-

- Software licenses - Between 4 and 7 years.

- The goodwill corresponding to the investment made in FANCESA is amortized over

j) Provision for compensation to personnel - The provision for compensation is established

2.8 EXISTING ECONOMIC CIRCUMSTANCES

 1 chairman of the board

The staff composition is as follows:

Operative Level Technical Manager by region 5

2.10 APPLICABLE LAWS AND REGULATIONS

- Law 843 on Tax Reform and regulatory decrees

2.12 REPORTS AND EXTERNAL AUDIT RESULTS

2.13 INHERENT RISK OF THE ORGANIZATION, OPERATIONS, INFORMATION AND

4. UNDERSTANDING THE COMPONENTS OF INTERNAL CONTROL

4.1 Control environment

4.2 Risk assessment

d) Interest rate risk