November 30, 2011 November 30, 2011
Mr. Jeronimo U. Kilayko, CEO Mr. Jeronimo U. Kilayko, CEO United Coconut Planters Bank United Coconut Planters Bank Head Office
Head Office
7907 Makati Ave. 7907 Makati Ave.
Makati City, Philippines Makati City, Philippines
Dear Mr. Kilayko: Dear Mr. Kilayko:
You
You have have requested requested that that we we audit audit the the balance balance sheet sheet of of United United CoconutCoconut Pl
Plantanterers s BaBank nk as as of of DeDececembmber er 31 31 20201111, , anand d ththe e rerelalateted d ststatatememenents ts of of income, cash flows and changes in stockholders’ equity for the year then income, cash flows and changes in stockholders’ equity for the year then ending.
ending. We are pleaWe are pleased to confirm our sed to confirm our acceptance and our undeacceptance and our understanding of rstanding of this engag
this engagemenement by means of this lettert by means of this letter. . Our audit wilOur audit will be made with thel be made with the objective of our expressing an opinion
objective of our expressing an opinion on the financial statements.on the financial statements. We
We wiwill ll cocondnducuct t ouour r audaudit it in in acaccocordrdancance e wiwith th PhPhililipippipine ne StStanandardards ds onon Auditing.
Auditing. Those Standards requiThose Standards require that we re that we plan and perform plan and perform the audit and tothe audit and to ob
obtatain in rereasasononabable le asassusurarancnce e ththat at ththe e fifinanancnciaial l ststatatememenents ts arare e frfree ee of of mat
materierial al mimisstsstateatemementsnts. . Our audit Our audit incincludludes es exaexaminmininging, , on on a a tetest st basbasis,is, e
evividedencnce e susuppppororttining g ththe e amamouountnts s anand d ddisisclclososurures es iin n ththe e fifinanancnciialal statements.
statements. Our audit also iOur audit also includes assessing the accncludes assessing the accounting principles usedounting principles used and significant estimates made by management, as well as evaluating the and significant estimates made by management, as well as evaluating the overall financial statements presentation.
overall financial statements presentation. Be
Becacaususe e of of ththe e tetest st natnaturure e anand d ototheher r ininhehererent nt lilimimitatatitionons s of of an an audauditit,, tog
togethether er witwith h the the inhinhererent ent lilimitmitatiations ons of of any any accaccounountinting g intinternernal al concontrotroll system, there is an unavoidable risk that even some material misstatements system, there is an unavoidable risk that even some material misstatements may remain undiscovered.
may remain undiscovered.
In addition to our report on the financial statements, we expect to provide In addition to our report on the financial statements, we expect to provide you with a
you with a separate letter concerning any material weaknesses in accountingseparate letter concerning any material weaknesses in accounting and internal control systems which come to our
and internal control systems which come to our knowledge.knowledge. We
We reremimind nd yoyou u ththat at ththe e rerespspononsisibibilility ty fofor r ththe e prprepepararatatioion n of of fifinanancnciaiall state
statementments s inclincluding adequate disclosuding adequate disclosure is ure is that of that of the managemethe management nt of of thethe comp
company. any. This incluThis includes the des the mainmaintenantenance of ce of adequatadequate accountine accounting g recorecordsrds and internal controls, the selection and application of accounting policies, and internal controls, the selection and application of accounting policies, and the safe
and the safeguaguardirding of ng of the assethe assets of ts of the comthe companypany. . As part of our As part of our audauditit process, we will request from management written confirmation concerning process, we will request from management written confirmation concerning representations made to us in connection with the
representations made to us in connection with the audit.audit.
Honrado, Jarlego, Javier, Latayan,
Honrado, Jarlego, Javier, Latayan,
People Support Center, Ayala corner People Support Center, Ayala corner Sen. Gil Puyat Avenue, Makati City,
Sen. Gil Puyat Avenue, Makati City, Phils.Phils. 02-545-2681
02-545-2681
www.hjlassociatescpa.net
(FOR ACADEMIC USE ONLY)
However, as part of our responsibility as an accredited external auditor of the Securities and Exchange Commission, we shall report to the Commission any of the following cases which may have been discovered based on generally accepted auditing standards, if the company fails to disclose the same to the Commission under its current reports:
1. Any material findings involving fraud or error which will reduce the consolidated total assets of the company by five percent (5%).
2. Losses or potential losses the aggregate of which amounts to at least ten percent (10%) of the consolidated total assets of the company;
3. Any findings to the effect that the consolidated assets of the company, on a going concern basis are no longer adequate to cover the total claims of creditors.
We look forward to full cooperation with your staff. Also, we trust that they will make available to us whatever records, documentation and other information requested in connection with our audit. Our fees, which will be billed as work progresses, are based on the time required by the individuals assigned to the engagement plus out-of-pocket expenses. Individual hourly rates vary according to the degree of responsibility involved and the experience and skill required.
This letter will be effective for three (3) years unless it is terminated, amended or superseded.
Please sign and return the attached copy of this letter to indicate that it is in accordance with your understanding of the arrangements for our audit of your financial statements.
Very truly yours,
Honrado, Jarlego, Javier, Latayan, Lumbres, CPAs
EMIL KENNEDY F. JARLEGO, CPA Managing Partner
Accepted and agreed to by:
JERONIMO U. KILAYKO Chief Executive Officer
United Coconut Planters Bank Head Office
Honrado, Jarlego, Javier, Latayan,
People Support Center, Ayala corner Sen. Gil Puyat Avenue, Makati City,
Phils. 02-545-2681
(FOR ACADEMIC USE ONLY) January 20, 2012
HONRADO, JARLEGO, JAVIER, LATAYAN, LUMBRES, CPAS
We are providing this letter in connection with your audit of the
balance sheet of United Coconut Planters Bank as of December 31 2011, and the related statements of income, cash flows and changes in stockholders’ equity for the year then ending for the purpose of expressing an opinion as to whether the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of United Coconut Planters Bank in conformity with generally accepted accounting principles. We confirm that we are responsible for the fair presentation in the
statements of financial position, results of operations, and cash flows in conformity with generally accepted accounting principles.
Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the
judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.
We confirm, to the best of our knowledge and belief, as of December 31 2011 the following representations made to you during your audit.
1. The financial statements referred to above are fairly presented in conformity with generally accepted accounting principles.
2. We have made available to you all— a. Financial records and related data
b. Minutes of the meetings of stockholders, directors, and committees of directors, or summaries of actions of recent meetings for which minutes have not yet been prepared.
3. There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in financial reporting practices.
4. There are no material transactions that have not been properly recorded in the accounting records underlying the financial statements.
5. There has been no—
a. Fraud involving management or employees who have significant roles in internal control.
7907 Makati Avenue Makati City, Philippines Phone: 632 811-9000 Fax: 632 814-2930 www.ucpb.com
b. Fraud involving others that could have a material effect on the financial statements.
6. The company has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
7. The following have been properly recorded or disclosed in the financial statements:
a. Related-party transactions, including sales, purchases, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties.
b. Guarantees, whether written or oral, under which the company is contingently liable.
c. Significant estimates and material concentrations known to
management that are required to be disclosed in accordance with the PICPA’s Statement of Position 94-6, ‘‘Disclosure of Significant Risks and Uncertainties.’’
8. There are no—
a. Violations or possible violations of laws or regulations whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency.
b. Unasserted claims or assessments that our lawyer has advised us are probable of assertion and must be disclosed in accordance with Financial Accounting Standards Board (FASB) Statement No. 5,
‘‘Accounting for Contingencies.’’
c. Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by FASB Statement No. 5.
9. The company has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset been pledged as collateral.
10. The company has complied with all aspects of contractual agreements that would have a material effect on the financial statements in the event of noncompliance.
To the best of our knowledge and belief, no events have occurred
subsequent to the balance-sheet date and through the date of this letter that would require adjustment to or disclosure in the aforementioned financial statements.
Very truly yours,
JERONIMO U. KILAYKO Director, President and CEO United Coconut Planters Bank Head Office
(FOR ACADEMIC USE ONLY) CESAR A. RUBIO
Chief Financial Officer
United Coconut Planters Bank Head Office
