GRACE CORPORATION Summary of Interest Expense December 31, 2011

Audit Objective: > To determine whether all transactions relative to accounts payable and interest expense exist at year-end in the ordinary course >To deterrmine whetherinterest expense are recorded and presented at proper amounts. Audit Assertions Affected > Occurrence >Measurement Audit Procedures: 1. Obtain from client a lisitng of accounts payable as of year end. 2. Reconcile to general ledger. 3. Vouch recorded accounts payable to vendors' statements. 4. Recalculate the interest expense from the accounts payables. Findings: Summary of Interest for the Month of December: Beginning balance N8 Ending balance Php Php 66,565.00 2,805.00 69,370.00

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 45,500.00 66,565.00 Php 112,065.00

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

t expense exist at year-end in the ordinary course of business

Adjusted Balance Php 45,500.00 69,370.00 Php 114,870.00

GRACE CORPORATION Summary of Miscellaneous Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative miscellaneous expense exist at year-end in the ordinary course of business Audit Assertions Affected > Occurrence Audit Procedures: 1. Reconcile to general ledger. 2. Vouch recorded miscellaneous expenses. Findings: Summary of Miscellaneous Expense for the Month of December: Beginning balance C2 C3 Ending balance Php 400.00 150.00 2,500.00 3,050.00

Php

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 397,538.00 400.00 Php 397,938.00

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

ear-end in the ordinary course of business

Adjusted Balance Php 397,538.00 3,050.00 Php 400,588.00

GRACE CORPORATION Summary of Insurance Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative miscellaneous expense exist at year-end in the ordinary course of business >To deterrmine whether miscellaneous expense are recorded and presented at proper amounts. Audit Assertions Affected > Occurrence >Measurement Audit Procedures: 1. Reconcile to general ledger. 2. Vouch recorded miscellaneous expenses. 4. Recalculate the insurance expense. Findings: Unadjusted Balance Php 550,000.00 Php 550,000.00 Remarks #

30-Nov-11 31-Dec-11 Balance

# No additional transactions made during the month of December.

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

end in the ordinary course of business

GRACE CORPORATION Insurance For the Year Ended December 31, 2011 DATE 1/2/2011 CV # PAYEE Cardinal Insurance Corporation PARTICULARS Premium on insurance of delivery vans for one year effective 1/1/2011 Premium in insurance of building and equipment and fixture for one year effective 3/15/2011 (Pol. # 279825) AMOUNT 360,000.00

3/12/2011

Filipino Insurance Corporation

240,000.00

600,000.00

GRACE CORPORATION Advertising Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative advertising expense exist at year-end in the ordinary course of business Audit Assertions Affected > Occurrence Audit Procedures: 1. Reconcile to general ledger. 2. Vouch recorded advertisings expenses. Findings: Unadjusted Balance Php 257,195.00 550,000.00 13,325.00 820,520.00

30-Nov-11 31-Dec-11 Balance

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

-end in the ordinary course of business

GRACE CORPORATION Advertising For the Year Ended December 31, 2011 DATE CV # 2/15/2010 6/15/2011 PAYEE Cathy Ads, Inc. Cathy Ads, Inc. PARTICULARS AMOUNT Advertising in Bulletin Today 250,000.00 Published 1/15/2011 Retainer fee for seven months effective 350,000.00 7/1/2011 TOTAL 600,000.00 Advertisement-Times Journal 8/21/2011 Brochures TOTAL 257,195.00

8/20/2011

PhilAD

12/31/2011

Franks Digital * Not included.

100,000.00 957,195.00

Remarks *

GRACE CORPORATION Representation Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative representation expense exist at year-end in the ordinary course of business >To deterrmine whether representation expense are recorded and presented at proper amounts. Audit Assertions Affected > Occurrence Audit Procedures: 1. Reconciled to general ledger. 2. Vouch recorded representation expenses. Findings: Summary of Representative Expense for the Month of December: Beginning balance C2 Ending balance Php Php 2,000.00 2,000.00 4,000.00

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 118,000.00 2,000.00 118,000.00

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

year-end in the ordinary course of business

Adjusted Balance Php 118,000.00 4,000.00 Php 122,000.00

GRACE CORPORATION Summary of Bad Debt Expense December 31, 2011

Audit Objective: > To determine whether all transactions relative to accounts receivable and bad debt expense exist at year-end in the ordinary cou >To deterrmine whether bad debt expense are recorded and presented at proper amounts. Audit Assertions Affected > Occurrence >Measurement Audit Procedures: 1. Obtain from client a lisitng of accounts receivable as of year end. 2. Reconcile to general ledger. 3. Vouch recorded accounts receivable to vendors' statements. 4. Recalculate the bad debt expense from the accounts receivables. Findings: Summary of Bad Debts Expense for the Month of December: Beginning balance E1 Ending balance Php Php 497,811.00 242,771.80 255,039.20

31-Dec-11 Balance

Unadjusted Balance Php 497,811.00 Php 497,811.00

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

debt expense exist at year-end in the ordinary course of business

Adjusted Balance Php 255,039.20 Php 255,039.20

GRACE CORPORATION Organization Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative advertising expense exist at year-end in the ordinary course of business Audit Assertions Affected > Occurrence Audit Procedures: 1. Reconcile to general ledger. 2. Vouch recorded organization expenses. Findings: Unadjusted Balance Php 200,000.00 Php 200,000.00

31-Dec-11 Balance

Adjusting journal entry: Retained Earnings Amortization Expense Organization Cost Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date 1,000,000.00 200,000.00 800,000.00

Date 3/1/2013

MJFV

n the ordinary course of business

Adusted Balance -

GRACE CORPORATION Organization Cost December 31, 2004

Date May 2 April 3 April 15 July 30

Securities and Exchange Commission Atty. Arthur Cruz Century park Sheraton Officers and Employees

Reference CV# 2002 5-2 CV#2002 4-3 CV# 2002 4-6 Cv# 2002 6-4

RACE CORPORATION Organization Cost December 31, 2004

registration fee for the corporation professional fee for incorporation papers food served for meetings on the establishment of the corporation salaries for the 1st month of the corporation's existence

Amount 100,000.00 200,000.00 280,000.00 420,000.00 1,000,000.00

GRACE CORPORATION Summary of Depreciation Expense - Office Equipment December 31, 2011

Audit Objective: > To determine whether the property, plant and equipment included in the statement of financial position exist. >To determine if the furniture and fixtures includes all capitalizable cost and that capitalizable cost were not expensed. >To determine that property is stated at cost and allowances for depreciation are acceptable and computed on the basis of accept >To determine that the property is described and classified in the statement of financial position and related disclosures are adequ Audit Assertions Affected > Occurrence >Completeness >Measurement Audit Procedures: 1. Obtain or prepare a summary of the property and equipment and analysis of the accumulated depreciation during the year. 2. Check footing, and reconcile with general ledger. 3. Conduct physical inspection of major acquisition of plant and equipment. 4. Vouch additions to property and equipment during the year. 5. Investigate disposals and retirements of property and equipment during the year. 6. Test client's computation of depreciation. 7. Perform analytical procedures for property and equipment. 8. Review financial statement presentation and disclosure for property and equipment and for related revenuue and expense. Findings: Summary of Depreciation Expense for the Month of December: Beginning balance K1 Depreciation Expense-Office Equipment Ending balance

31-Dec-11 Balance

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

statement of financial position exist. that capitalizable cost were not expensed. n are acceptable and computed on the basis of acceptable and consistent methods. of financial position and related disclosures are adequate.

s of the accumulated depreciation during the year.

equipment and for related revenuue and expense.

Php Php

426,000.00 (5,000.00) 421,000.00

Unadjusted Balance Php 426,000.00 Php 426,000.00

Adjusted Balance Php 421,000.00 Php 421,000.00

GRACE CORPORATION Summary of Depreciation Expense - Transportation Equipment December 31, 2011

Audit Objective: > To determine whether the property, plant and equipment included in the statement of financial position exist. >To determine if the furniture and fixtures includes all capitalizable cost and that capitalizable cost were not expensed. >To determine that property is stated at cost and allowances for depreciation are acceptable and computed on the basis of accept >To determine that the property is described and classified in the statement of financial position and related disclosures are adequ Audit Assertions Affected > Occurrence >Completeness >Measurement Audit Procedures: 1. Obtain or prepare a summary of the property and equipment and analysis of the accumulated depreciation during the year. 2. Check footing, and reconcile with general ledger. 3. Conduct physical inspection of major acquisition of plant and equipment. 4. Vouch additions to property and equipment during the year. 5. Investigate disposals and retirements of property and equipment during the year. 6. Test client's computation of depreciation. 7. Perform analytical procedures for property and equipment. 8. Review financial statement presentation and disclosure for property and equipment and for related revenuue and expense. Findings: Summary of Depreciation Expense for the Month of December: Beginning balance K1 Depreciation Expense-Transportation Equipment Ending balance Unadjusted Balance 1,200,000.00 Php 1,200,000.00

31-Dec-11 Balance

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

ment of financial position exist. capitalizable cost were not expensed. e acceptable and computed on the basis of acceptable and consistent methods. nancial position and related disclosures are adequate.

he accumulated depreciation during the year.

ment and for related revenuue and expense.

Php Php

1,200,000.00 (600,000.00) 600,000.00

Adjusted Balance Php 600,000.00 Php 600,000.00

GRACE CORPORATION Summary of Depreciation Expense -Furniture and Fixture December 31, 2011

Audit Objective: > To determine whether the property, plant and equipment included in the statement of financial position exist. >To determine if the furniture and fixtures includes all capitalizable cost and that capitalizable cost were not expensed. >To determine that property is stated at cost and allowances for depreciation are acceptable and computed on the basis of accept >To determine that the property is described and classified in the statement of financial position and related disclosures are adequ Audit Assertions Affected > Occurrence >Completeness >Measurement Audit Procedures: 1. Obtain or prepare a summary of the property and equipment and analysis of the accumulated depreciation during the year. 2. Check footing, and reconcile with general ledger. 3. Conduct physical inspection of major acquisition of plant and equipment. 4. Vouch additions to property and equipment during the year. 5. Investigate disposals and retirements of property and equipment during the year. 6. Test client's computation of depreciation. 7. Perform analytical procedures for property and equipment. 8. Review financial statement presentation and disclosure for property and equipment and for related revenuue and expense. Findings: Summary of Depreciation Expense for the Month of December: Beginning balance K1 Depreciation Expense-Furniture and Fixture Ending balance Unadjusted Balance Php 355,000.00 Php 355,000.00

31-Dec-11 Balance

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

ment of financial position exist. capitalizable cost were not expensed. e acceptable and computed on the basis of acceptable and consistent methods. nancial position and related disclosures are adequate.

he accumulated depreciation during the year.

ment and for related revenuue and expense.

Php Php

355,000.00 285,000.00 640,000.00

Adjusted Balannce Php 640,000.00 Php 640,000.00

GRACE CORPORATION Summary of Depreciation Expense -Building December 31, 2011

Audit Objective: > To determine whether the property, plant and equipment included in the statement of financial position exist. >To determine if the furniture and fixtures includes all capitalizable cost and that capitalizable cost were not expensed. >To determine that property is stated at cost and allowances for depreciation are acceptable and computed on the basis of accept >To determine that the property is described and classified in the statement of financial position and related disclosures are adequ Audit Assertions Affected > Occurrence >Completeness >Measurement Audit Procedures: 1. Obtain or prepare a summary of the property and equipment and analysis of the accumulated depreciation during the year. 2. Check footing, and reconcile with general ledger. 3. Conduct physical inspection of major acquisition of plant and equipment. 4. Vouch additions to property and equipment during the year. 5. Investigate disposals and retirements of property and equipment during the year. 6. Test client's computation of depreciation. 7. Perform analytical procedures for property and equipment. 8. Review financial statement presentation and disclosure for property and equipment and for related revenuue and expense. Findings: Summary of Depreciation Expense for the Month of December: Beginning balance K1 Depreciation Expense-Building Ending balance Unadjusted Balance Php 650,000.00 Php 650,000.00

31-Dec-11 Balance

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

nt of financial position exist. pitalizable cost were not expensed. ceptable and computed on the basis of acceptable and consistent methods. ncial position and related disclosures are adequate.

accumulated depreciation during the year.

nt and for related revenuue and expense.

Php

650,000.00 1,986,301.37 Php 2,636,301.37 Adjusted Balance Php 2,636,301.37 Php 2,636,301.37

GRACE CORPORATION Summary of Light, Water and Telephone December 31, 2011 Audit Objective: > To determine whether all transactions relative to light, water and telephone exist at year-end in the ordinary course of business Audit Assertions Affected > Occurrence Audit Procedures: 1. Obtain from client a lisitng of expenses as of year end. 2. Reconcile to general ledger. 3. Vouch recorded expenses to vendors' statements. Findings: Summary of Utilites Expense for the Month of December: Beginning balance C2 C2 N7 Ending balance Php 14,550.00 800.00 500.00 148,500.00 164,350.00

Php

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 1,208,450.00 1,300.00 13,250.00 Php 1,223,000.00

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

t at year-end in the ordinary course of business

Adjusted Balance Php 1,208,450.00 164,350.00 Php 1,372,800.00

GRACE CORPORATION Transportation Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative to transportation expense exist at year-end in the ordinary course of business Audit Assertions Affected > Occurrence Audit Procedures: 1. Obtain from client a lisitng of expenses as of year end. 2. Reconcile to general ledger. 3. Vouch recorded expenses to vendors' statements. Findings: Summary of Transportation Expense for the Month of December: Beginning balance C2 Ending balance Php Php 250.00

250.00

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php Php -

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

at year-end in the ordinary course of business

Adjusted Balance Php 250.00 Php 250.00

GRACE CORPORATION Gasoline Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative to gasoline expense exist at year-end in the ordinary course of business Audit Assertions Affected > Occurrence Audit Procedures: 1. Obtain from client a lisitng of expenses as of year end. 2. Reconcile to general ledger. 3. Vouch recorded expenses to vendors' statements. Findings: Summary of Gas Expense for the Month of December: Beginning balance C2 C2 Ending balance Php 18,600.00 2,050.00
2,550.00

Php

23,200.00

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 1,127,400.00 4,600.00 14,000.00 Php 1,146,000.00

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

-end in the ordinary course of business

Adjusted Balance Php 1,127,400.00 23,200.00 Php 1,150,600.00

GRACE CORPORATION Summary of HDMF Premium Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative to HDMF expense exist at year-end in the ordinary course of business Audit Assertions Affected > Occurrence Audit Procedures: 1. Obtain from client a lisitng of expenses as of year end. 2. Reconcile to general ledger. 3. Vouch recorded expenses to vendors' statements. Findings: Summary of HDMF for the Month of December: Beginning balance N9 Ending balance Php Php 43,200.00 43,200.00

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 1,100.00 Php 1,100.00

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

n the ordinary course of business

Adjusted Balance Php 1,100.00 43,200.00 Php 44,300.00

GRACE CORPORATION Summary of SSS, Medicare Premiums Expense December 31, 2011

Audit Objective: > To determine whether all transactions relative to SSS, Medicare Premiums Expense exist at year-end in the ordinary course of bu Audit Assertions Affected > Occurrence Audit Procedures: 1. Obtain from client a lisitng of expenses as of year end. 2. Reconcile to general ledger. 3. Vouch recorded expenses to vendors' statements. Findings: Summary of SSS for the Month of December: Beginning balance N9 Ending balance Php Php 87,500.00

87,500.00

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 1,270,500.00 Php 1,270,500.00

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

e exist at year-end in the ordinary course of business

Adjusted Balance Php 1,270,500.00 87,500.00 Php 1,358,000.00

GRACE CORPORATION Taxes and Licenses December 31, 2011 Audit Objective: > To determine whether all transactions relative to taxes and licenses exist at year-end in the ordinary course of business Audit Assertions Affected > Occurrence Audit Procedures: 1. Obtain from client a lisitng of expenses as of year end. 2. Reconcile to general ledger. 3. Vouch recorded expenses to vendors' statements. Findings: Summary of SSS for the Month of December: Beginning balance N9 Ending balance Php 34,200.00 70,000.00

Php

104,200.00

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 910,000.00 Php 910,000.00

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

end in the ordinary course of business

Adjusred Balance Php 910,000.00 104,200.00 Php 1,014,200.00

GRACE CORPORATION Taxes and Licenses For the Year Ended December 31, 2011 Date 2/15/2011 2/15/2011 2/18/2011 2/28/2011 12/31/2011 12/31/2011 Payee Real Estate Tax Municipal Tax Residence Certificate C & C1 Registration for Delivery Vans Witholding Tax Property Taxes Expense OR# A-72925 S-842782 F-231475 W-24687 N9 N9

Amount 240,000.00 500,000.00 30,000.00 140,000.00 34,200.00 70,000.00 1,014,200.00

GRACE CORPORATION Summary of Supplies Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative tooffice supplies exist at year-end in the ordinary course of business Audit Assertions Affected > Occurrence Audit Procedures: 1. Reconcile to general ledger. 2. Vouch recorded purchases of office suppiles on a test basis to vendors' statements. 3. Con duct physical count of supplies inventory on a test basis. Findings:

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 1,406,862.00 5,000.00 Php 1,411,862.00

* No additional transaction. Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

n the ordinary course of business

Adjusted Balance Remarks Php 1,406,862.00 5,000.00 * Php 1,411,862.00

GRACE CORPORATION Insurance Expense December 31, 2011 Audit Objective: > To determine whether all transactions relative salaries expense exist at year-end in the ordinary course of business >To deterrmine whether salaries expense are recorded and presented at proper amounts. Audit Assertions Affected > Occurrence >Measurement Audit Procedures: 1. Reconcile to general ledger. 2. Vouch recorded salaries expenses. 4. Recalculate the salaries expense. Findings: Unadjusted Balance Php 21,682,480.00 1,238,760.00 1,101,600.00 Php 24,022,840.00

30-Nov-11 31-Dec-11 Balance

* No additional transactions. Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial

Date 3/1/2013

Date

MJFV

in the ordinary course of business

Adjusted Balance Remarks Php 21,682,480.00 1,238,760.00 * 1,101,600.00 * Php 24,022,840.00

GRACE CORPORATION Salaries Expense For the Year Ended December 31, 2011

Name of Employee Eric Gaston Joan Gaston Amy Josef Sarah Tuason Other Employees

Particulars Salary for the year @ 80,000/month Salary for the year @ 42,000/month Salary for the year @ 50,000/month Salary for the year @ 48,320/month

Amount 960,000.00 504,000.00 600,000.00 579,840.00 21,379,000.00 24,022,840.00

2011

GRACE CORPORATION Insurance Expense December 31, 2011

Audit Objective: >To determine whether inventories exist and represent items which are for sale in ordinary course of business. >To determine whether all transactions regarding inventory are recorded properly. >To determine whether inventory included in the inventory list are accurate and inventory quantities includes both inventory on h >To determine whether inventories are properly stated at its cost. >To determine that merchandise inventory and cost of goods sold are properly presented and classified in the balance sheet in acc Audit Assertions Affected > Occurrence >Completeness >Measurement >Presentation and Disclosue Audit Procedures: 1. Obtain list of inventory and reconcile to ledgers. 2. Observe the taking of physical inventory and conduct test counts. 3. Obtain final list of inventory based from the test counts during inventory observation. 4. Review cutoff of purchases and sales transactions. 5. Review the computation and entries to cost of goods sold. 6. Perform analytical review related to inventories and cost of goods sold. 7. Vouch and test inventory pricing. 8. Evaluate financial statement presentation and disclosure of merchandise inventory. Findings: Summary ofCOS for the Month of December: Beginning balance F1 N1 Ending balance Php 1,861,387.00
597,792.11 (1,181,770.00)

Php 1,277,409.11

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php 54,785,500.00 1,861,387.00 Php 56,646,887.00

Conclusion: No exceptions noted.

Prepared by: Initial

Date 3/1/2013

Reviewed by: Initial

Date

MJFV

ordinary course of business.

entory quantities includes both inventory on hand and in transit.

ented and classified in the balance sheet in accordance with PAS/PFRS.

Adjusted Balance Php 54,785,500.00 1,277,409.11 Php 56,062,909.11

GRACE CORPORATION Cost of Sales 2011

Month January February March April May June July August September October November December Total
Total Amount From January to November

Amount 5,342,356.00 5,266,997.00 4,792,627.00 6,127,495.00 6,803,923.00 4,770,269.00 4,857,439.00 3,581,742.00 4,922,788.00 4,151,050.00 4,168,814.00 1,861,387.00 56,646,887.00 54,785,500.00

GRACE CORPORATION Interest Income December 31, 2011

Audit Objective: > To determine whether all transactions relative to accounts receivable and interest income exist at year-end in the ordinary cours >To deterrmine whether interest income are recorded and presented at proper amounts. Audit Assertions Affected > Occurrence >Measurement Audit Procedures: 1. Obtain from client a lisitng of accountsreceivable as of year end. 2. Reconcile to general ledger. 3. Vouch recorded accounts Rceivable to vendors' statements. 4. Recalculate the interest incomee from the accounts Receivables. Findings: Unadjusted Balance Php 210,000.00 38,853.00 Php 248,853.00

30-Nov-11 31-Dec-11 Balance

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

est income exist at year-end in the ordinary course of business

GRACE CORPORATION Interest Income December 31, 2011

Audit Objective: > To determine whether all transactions relative to dividend receivable and dividend income exist at year-end in the ordinary cours >To deterrmine whether dividend income are recorded and presented at proper amounts. Audit Assertions Affected > Occurrence >Measurement Audit Procedures: 1. Obtain from client a lisitng of accounts receivable as of year end. 2. Reconcile to general ledger. 3. Vouch recorded accounts receivableble to vendors' statements.

Findings:

30-Nov-11 31-Dec-11 Balance

Unadjusted Balance Php Php -

Conclusion: No exceptions noted. Prepared by: Initial Reviewed by: Initial Date

Date 3/1/2013

MJFV

end income exist at year-end in the ordinary course of business

Adjusted Balance Php Php 40,000.00 40,000.00