Kamakailan lamang ay napabalita ang pagsara ng KAPA. Ito ay sa gitna ng diumano’y “scam” sa mga miyembro nito. Ang rason ng Securities and Exchange Commission: Marami ang nagrereklamo sa naturang institusyon. Nangako diumano ang grupo ng 30% “return” kada buwan bilang kapalit ng kanilang “donations.” Habang isinusulat ito, may mga galit pag itinutuwid sila sa financial literacy, at may mga galit pa kay Pang. Duterte.
Sa isyung ito, susubukan natin ang “analytic side”, na importante lalo na sa atin na nasa actual practice. Use all of the skills that you learned in Auditing, RFBT, and Practical Acctg 1. Solve this problem:
You were tasked by your firm to check on the veracity of financial statements from KAPA Community Ministry.
In connection with the engagement, you obtained the financial statement from SEC:
You also inquired members about the businesses engaged by KAPA. Here are their responses:
- You may also see our website http://www.kapamilyonaryo.com and look on our various businesses.
- Visit GenSan and Tagum City. KAPA has four industrial fishing boats, lobster farm, bangus farm, poultry farm, mango plantation, rice plantation, mining, Tagum Doctor’s Hospital, Tagum Aces, Convention Center, heavy equipments for hauling, and cryptocurrency. You are most welcome to visit and see for yourself.
- We have also mining business having 10 billion yearly income. Added to that is our 1,200 hectare banana plantation, hotel, restaurant, and more.
- (Aud Prob: Audit Report) If you will prepare an audit report on KAPA, what type of opinion will you issue?
(b) Unqualified with Emphasis on Matter
(e) Disclaimer of Opinion
- With all the pictures and businesses presented to you, and given the current financial position, would you think they can give 30% interest to their members? Explain.
- Were the financial statements fairly stated, in all material respects? Define why or why not.
- (Prac Acctg 1: Substance Over Form) A member told that the contributions/investments and returns are “donations” and “love blessings”, respectively. Does it need to be recorded on the books of accounts?
- (RFBT: ObliCon) Does the members’ contributions qualify as donation? Explain.
- (RFBT: Corpo Code) Being registered as religious organization, is the corporation doing an ultra vires act? Cite also other legal or illegal acts committed, with BP 68 and Revised Corpo Code (R.A. 11232) as bases.
Suggested answers will be available via e-mail, upon request.
Auditing Problem prepared by: TweetNewscaster