Statement of Representation to Accompany Financial Statements Submitted by Corporations

December 27, 1982 SEC CIRCULAR NO. 07-82 TO : All Certified Public Accountants All financial statements to be submitted by corporations to the Securities and Exchange Commission which are required to be certified by an independent Certified Public Accountant, shall in addition to the report of the certifying CPA, be accompanied by the following statement: LexLib "TO THE SECURITIES AND EXCHANGE COMMISSION: In connection with my examination of the financial statements of client-corporations, which are to be submitted to the Commission, I hereby represent the following: 1) That said financial statements are presented in conformity with generally accepted accounting principles in all cases where I shall express an unqualified opinion; Except that in case of any departure from such principles, I shall indicate the nature of the departure, the effects thereof, and the reasons why compliance with the principles would result in a misleading statement, if, such is a fact; 2) That I shall fully meet the requirements of independence as provided in Section 14 of the Code of Professional Ethics for CPAs; 3) That in the conduct of the audit, I shall comply with the generally accepted auditing standards promulgated by the Board of Accountancy; in case of any departure from such standards or any limitation in the scope of my examination, I shall indicate the nature of the departure and the extent of the limitation, the reasons therefor and the effects thereof on the expression of my opinion or which may necessitate the negation of the expression of an opinion; and 4) That relative to the expression of my opinion on the said financial statements, I shall not commit any facts discreditable to the profession as provided in Section 23 of the Code of Professional Ethics for CPAs. As a CPA engaged in public practice, I make these representations in my individual capacity and as a partner in the accounting firm of ___________________. Signature _____________ Printed Name _______________ CPA Cert. No. ______________ T A N ______________ Date: _____________" The above statement of representation shall be required starting January 1, 1983, to be filed only once with the Commission, and shall be considered as forming part of all financial statements presented to the Commission, bearing the signature of the CPA practitioner. This Circular is pursuant to the provisions of Sec. 141 of the Corporation Code of the Philippines, Batas Pambansa Bilang 68. Any CPA who, after due notice and hearing, is found by the Commission to have violated the above Statement of Representation, may, in addition to the penalties imposed in Sec. 144 of Batas Pambansa Bilang 68, be held liable under other applicable laws, without prejudice to any actions that may be taken against him at the Professional Regulation Commission. This Circular repeals SEC Circular dated October 28, 1981 which requires an Affidavit of Representation. Please be guided accordingly. (SGD.) MANUEL G. ABELLO Chairman