ANG CHUA ENRIQUEZ AND COMPANY

Accounting . Advisory . Audit . Tax

701A MBI Building, Ronquillo St., Sta. Cruz, Manila
Mobile No.: (+63)9565637756

February 2, 2022

Sheila Alvarez-Yu
Alvarez Park Cafe
Valenzuela City

Dear Ms. Yu:

We are pleased to present the terms and objectives of our engagement proposal for internal
accounting services as well as the nature and limitations of the services we will provide to
ALVAREZ PARK CAFE.

The Monthly retainers fee is set at P13,440.00, net of Value Added Tax.

The objective and scope of this proposal and the nature and limitation of services are outlined
below:

SCOPE OF SERVICES INCLUSIVE IN MONTHLY RETAINERS:

1. Ensuring that proper control, governance, and risk management process are taking place in the
company.
2. To present objective findings and make recommendations for corrective measures
3. To audit, compile and present monthly financial statements
4. To perform analysis on the monthly financial statements
5. To assist in the computation of certain incentives/commissions.
6. Providing financial advisory consultation

ALL OTHER SERVICES ARE EXCLUDED IN THE MONTHLY RETAINERS:

Our engagement cannot be relied upon to disclose errors, fraud, or other illegal acts that may exist.
However, it may be necessary to ask you for clarification of some of the information you provide, and
we will inform you of any material errors, fraud, or illegal acts that come to our attention unless they
are clearly inconsequential.

You are also responsible to provide us with all the necessary documents such as financial records of
the company which is necessary for preparing our deliverables.

In order for us to complete this engagement, and to do so efficiently, we require unrestricted access to
the following documents and information concerning your company:

a. Copies of basic documents reflecting your financial transactions, including check

stubs, summaries of cash receipts and sales (cash and credit), bank statements and
canceled checks, listings of accounts receivable and accounts payable, and
documentary support of property and equipment transactions-purchases, trades, and
other dispositions;
ANG CHUA ENRIQUEZ AND COMPANY
Accounting . Advisory . Audit . Tax
701A MBI Building, Ronquillo St., Sta. Cruz, Manila
Mobile No.: (+63)9565637756

b. Information concerning any mortgage or pledge of business assets on business debts,

any personal guarantees or debt, leases, or other information that affects or may affect
the results of operations of the business;
c. Any other financial information necessary for purpose of reflection on your
accounting records, trial balance, and tax returns;
d. identification of all cash receipts as to source (i.e., Loans, sales, etc.), and
information concerning all transactions that are consummated with cash.
e. Other relevant documents as necessary

Any failure to provide such documents and information, and to do so on a timely basis, will impede
our services and may require us to suspend our services or withdraw from the engagement. You agree
to accept responsibility for any effects on your accounting records and financial statements of basic
financial information or transaction documents not submitted to us for processing and entry, or losses
that may result from their absence.

Any penalties incurred due to delay in payment of billing statements the payment of taxes shall be
shouldered by the Company Client. Our firm policy is for clients to settle their billing for taxes at
least two days before the scheduled deadline to provide ample time for check clearing. For purposes
of entry of financial information from your basic transaction documents, classification according to
the agreed-upon chart of accounts will be performed by you or your employees. As business
conditions change, we may mutually agree to change/modify this arrangement.

The client agrees that these documents should be forwarded to our office on a periodic basis, such
as monthly, as this will enable us to provide you with a current, meaningful, and useful financial
statement. It is also understood that incidental expenses regarding the engagement shall be on the
account of the Company and shall be billed to you separately at cost.

In the event that either or both parties intend to terminate in part or the whole contract, a written letter
of notice shall be given at least one month before the effectivity date to give ample time for the turn-
over of documents.

Should you wish to discuss any of the terms of our proposal, please do not hesitate to call us at
the contact number indicated on the letterhead.

Thank you and we look forward to a good working relationship with you and your management team.

Sincerely,

LEITZ CAMYLL M. ANG, CPA

Managing Partner

Conformed:

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Alvarez Park Cafe