Engagement procedures:

1. Observation of the business operations

- This involves looking at the business with a fresh set of eyes to see the good and
the areas that need improvements in the operation.

a. Observation in the manner of selling their inventories

b. Observation of delivery of goods to customers
c. Observation of ordering, receiving and stocking of supplies

2. Inquiries with the management key personnel and staff

- This involves asking relevant questions to the owner or key personnel and staff
about their operation and controls being implemented in the business.
a. Inquiry of information about the operations and potential problems from the
staff/ employees.
b. Inquiry of information about the operations and going concern of the entity
from the owner.

3. Inspection of the workplace and facilities utilized by the business.

- This involves physical examination of the building, facilities, equipment and
machinery used in operation.

4. Review of the client`s business and tax registration.

- This involves reviewing the client`s business and tax registration if it has properly
complied with all the requirements with the following government agencies:
a. Department of Trade and Industry
b. Local government units where the business is located:
b.1. Barangay
b.2. Mayor`s Office
c. Bureau of Internal Revenue

5. Examination of Invoices and other pertinent documents.

6. Presentment of recommendations to the client/ entity.