October 24, 2018

Entrepreneurship Group #23

Sweet Nicole Gonzales
Nikkaella Verde
Lean Gabriel Reyes
Ronyel Rodriguez
Kenneth Puno
Sienna Relucio

SCOPE
The information used in this report was collected through the review of relevant
documents, interviews and visual inspections of inventories and cash. Interviews were
also completed with the nearby booths to obtain additional necessary information.
The audit team performed the audit for the period of 8am to 4pm.
The following elements were audited:
• Sales
• Expenses
• Source documents
• Cash
• Beginning Inventory
• Ending Inventory

AUDIT FINDINGS

The stall failed to open on time. They started operating at 9am. During the day, there were no
purchases for the inventory.
The group kept records of sales and purchases but did not submit, and there were irregularities
regarding the declared sales and the audited amount.
Before the store closing, some lemonades were given to people for free. There were unaccounted
changes in the inventory.
At 5pm the auditors conducted cash and inventory count. Sales declared by the group was 3260.
Cash Sales per audit amounted to 3240php. There was no declared ending inventory. The
auditors discovered that the ending inventory was 1040.
 October 24, 2018

The group complied with the auditors regarding the submission of the financial statements on a
reasonable time but failed to provide information on product costing.

OPINION
Adverse Opinion
In our opinion, the group has not presented fairly the financial statements for the period ending
October 23, 20128 in accordance with the requirement imposed by their respective adviser. The
auditors have obtained all the sufficient and appropriate evidences and concluded that there are
material misstatements and are pervasive to all financial statements.
Basis for Adverse Opinion
The auditors discovered that the group has not accounted for inventory correctly and has kept
incomplete records of cash, sales and purchases. As a result, the auditors would likely give a
qualified opinion for the group due to both limitation of scope (incomplete records) and deviation
from the guidelines imposed.

Entrepreneurship Group #6 “Sweet Puff”

John Carl Padua
Michael John Ato
Monsiro Macapagal
Justine Jay Sagun
Kurt Espiritu
Dave Escuadro

The entrepreneurship group, whose members are all athletes taking part in the Palarong
Wesleyan 2018 did NOT operate for the whole day due to conflicts with their respective training
schedules in view of the imminent sportive events.