Академический Документы
Профессиональный Документы
Культура Документы
COMMISSION ON AUDIT
Local Government Sector
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with State Accounting Principles, and for such internal control
as management determines in necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud of error.
Auditor’s Responsibility
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the Auditor’s
judgment, including the assessment on the risks of material misstatement in the financial
statement whether due to fraud or error. In making those risks assessment, the Auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our qualified opinion.
As discussed in Part II, the Auditor rendered qualified opinion on the fairness of
presentation of the Financial Statements because the reported balance of Property, Plant
and Equipment of ₱3,060,592.43 of December 31, 2017 was unreliable due to the failure
of the Barangay to conduct physical count of its property and absence of property records
to support the accounting and recording contrary to the Systems and Procedures Manual
on the Management of Barangay Funds and Property.
Qualified Opinion
In our opinion, except for the effect of any adjustment which might have been determined
to be necessary based on the matters discussed in the Basis for Qualified Opinion
paragraph, the financial statements present fairly the financial position of the Barangay as
of December 31, 2016 and December 31, 2017 and its financial performance and cash
flows for the years then ended in accordance with State Accounting Principles..
COMMISSION ON AUDIT
By:
HADIYAH A. ALIÑO
State Auditor II
OIC-Audit Team Leader