MY CPA, DISGUSTING, DISTRUSTING
Chapter 1 - Auditors' Certificate
By Emelino T Maestro, Father of Tax Accounting, Tax Guru
December 30, 2013, #cpadisgusting, #cpadistrusting,#cpaengagementletter, #ETM, #emelinomaestro
Today, the Philippines is celebrating the death anniversary of Dr. Jose Rizal.
This important celebration is to remind every Filipino that he can also effect change to his life by way of changing his concept, perception and idea of himself.
As a taxpayer, you can effect change to your life. Do the unexpected that is “Don’t use generally accepted accounting principles or Philippine Financial Reporting Standards in preparing your financial statements where the figures from your income tax return shall be lifted.”
For the past years, you became so predictable. And, being so, the scalawags in the Bureau of Internal Revenue are the happiest people to learn about it.
A big CPA firm would not hesitate bill you 3,000,000 pesos to prepare and issue opinionated financial statements. If it is not within your budget, a small-time CPA would charge you at least 50,000 pesos for his alleged professional services. ETM believes that any of the said amounts is too costly to get an opinion.
Submitting your income tax return accompanied by audited financial statements whether prepared/audited either by a big auditing firm or a not-so-known Certified Public Accountant (just like ETM) is an advertisement that you are so illiterate in taxation. Please be reminded that you are required to submit audited financial statements based on the language of the National Internal Revenue Code (NIRC/Tax Code).
Don’t blame yourself. It is not your fault but a grand design by those who are profiting from your non-conformity with requirements of the laws of the State. (Please click this link to register for Tax Accounting for Retailer, Wholesaler, Dealer, etc - GenSan City “https://www.facebook.com/
First, you are so predictable that every year, you would hire an incompetent CPA, require him to prepare/issue opinionated financial statements that are so alien and not relevant to you, lift the figures therefrom and place them in your annual income tax return and lastly, attach the such statements to your income tax return.
Finally, you are so predictable that every year, you would entertain the illegal advances of so many enterprising revenue officials by way of accepting their letters of authority, letter notices and subpoena duces tecum, are so fearful to question the way they prepare their audit findings/deficiency tax assessments and substantially share to them, rather than to your family and friends, the financial blessings that the Almighty God had provided you.
To understand these chronic problems, ETM would help you understand the source of your problems, the AUDITOR’S CERTIFICATE (in other terms, Auditor’s Report, [http://www.7-eleven.com.ph/
ADDRESSEE
Most of the issued financial statements is addressed either to the Stockholders, the Board of Directors, the President or combination thereof. For example is the following, viz;
“The Stockholders and the Board of Directors
Emelino T Maestro
7th Floor, The Columbia Tower
Ortigas Avenue, Mandaluyong City”
Predictable as you are, you consciously allow every year your CPA/auditor to address his Auditor’s Certificate to these people. Are you not fed up with this arrangement? Are you sure that his Auditor’s Certificate must always be prepared this way? Have you not ask him why it is so? Let ETM remind you that the Securities and Exchange Commission, Bureau of Internal Revenue, Bangko Sentral ng Pilipinas, etc…. (in other words, the Philippine Government is requiring you to submit to its agencies audited financial statements and other reports) are the ones who are interested to see your financial health. Your stockholders, directors and corporate officers would not be happy if the profit of their labor would be given away to a third party who may be a CPA or a lawyer as a payment for alleged professional services.
Thus, the Auditor’s Certificate must always be addressed to a government agency that requires audited financial statements. The reason is so simple. The legal obligation for their fair presentation shall be the responsibility of the CPA/auditor and not of the company itself. This would spare the company of additional expenses for the incompetence that is usually included in his services.
To help you NOT TO BE PREDICTABLE THIS YEAR, the following should be taken serious consideration, viz;
OPENING STATEMENT
Standard as they are, most of the Auditors’ Certificates would start like this, viz;
“We have audited the accompanying consolidated financial statements of EMELINO T MAESTRO and Subsidiaries, which comprise the consolidated balance sheets as at December 31, 2021 and 2022, and the consolidated statements of comprehensive income, statements of changes in equity and statements of cash flows for each of the three years in the period ended December 31, 2022, and a summary of significant accounting policies and other explanatory information.”
The CPA/auditor is completely informing you and your stockholders, directors and corporate officers what he examined. This is so you, so predictable by way of accepting what he examined is really what to be examined is to emphasize that you are ignorant of the laws of the State. Please be reminded that the laws of the State (NIRC/Tax Code) required your CPA/auditor to examine your books of accounts and not your financial statements. Thus, you and your CPA/auditor are clearly violating the laws of the State. ‘Negligence’ is punishable by imprisonment. Your CPA/auditor knew it before you hired him. And, to escape his legal responsibility not only to you as his client but most importantly, to the State, he would require all his proposed adjusting journal entries (PAJE) to be approved by you so that you would be legally accountable to whatever his adjustments might be and later on, he would require you to sign the so-called ‘Statement of Management’s Responsibility’ so that the pains of criminal humiliation shall be for your account alone.
MANAGEMENT RESPONSIBILITY
The so conventional 2nd paragraph of an Auditor’s Certificate usually states the following, viz;
“Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Philippine Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.”
As your CPA/auditor is directly advertising and emphasizing, regardless how much you paid him, the legal responsibility to the financial statements that he examined using the so-called ‘Philippine Financial Reporting Standards (generally accepted accounting principles) is solely shouldered by you. On top of it, he is exempting himself from any misstatement that your financial statements may bring to others although he is the last person who checked and double-checked them if the same is free from any material misstatement and misrepresentation. So, what really is the legal participation or purpose of getting, hiring and paying a CPA/auditor if at the end, you will be criminally prosecuted by the laws of the State? Would you please enlighten ETM?
AUDITOR’S RESPONSIBILITY
The next paragraph that you need to take seriously is this, viz;
“Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
“An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.”
Your CPA/auditor has clearly identified to where his alliance is that is the Philippine Financial Reporting Standards/ Philippine Standards on Auditing while you shall be criminally and civilly liable for any misrepresentation and misstatement of your financial statements that are prepared using these standards and principles. For your information and appreciation, the PFRS/PSA, as it is widely known, is not even a substantive law of the State. The NIRC/Tax Code says the accounting bookkeeping that is to be used in making entries in your books of accounts must not be contrary the provisions of the NIRC/Tax Code. So, if only your CPA/auditor had examined your books of accounts and not your financial statements which in the first place, the preparation of the latter falls on his shoulders, his Auditor’s Certificate shall show that the audit procedures are in accordance with the laws of the State and not just a mere standard or principle which is not being used by any government agency or branch of the Philippine Government. In other words, the Philippine Government has its owns rules and regulations such as the NIRC/Tax Code and it has no power and authority to implement a standard/principle that is not originated from the Philippine Congress. DON’T USE PFRS/PSA because you are advertising your predictability that is you are consistent law-violator.
OPINION
The last statements that you would read from an Auditor’s Certificate may look like this, viz;
“We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
“In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of EMELINO T MAESTRO and Subsidiaries as at December 31, 2021 and 2022, and their financial performance and their cash flows for each of the three years in the period ended December 31, 2022 in accordance with Philippine Financial Reporting Standards.”
First, your CPA/auditor believes that by using the PFRS/PSA, he can now issue an ‘opinion.’ Here, he is still unsure if after he examined your supplied financial statements and used these standards, he would be able to issue an opinion. But, have you asked yourself if his opinion matters not to you which most of you don’t understand the materiality and relevance of a CPA/auditor’s opinion? The laws of the State such as the NIRC/Tax Code require all CPAs and CPA firms whether big or small to certify financial statements and issue ‘certified financial statements’ and not to issue opinionated financial statements. The term ‘certify’ is not synonymous to ‘make an opinion’. These two word/phrase are not even interchangeable or comparable to one another. If the law says certified financial statements, it means certified financial statements and NOT OPINIONATED FINANCIAL STATEMENTS.
WHEN THE LAW IS VERY CLEAR, NO ROOM FOR FURTHER INTERPRETATION IS NECESSARY. ACCORDING TO NUMEROUS PHILIPPINE SUPREME COURT’S DECISIONS, IF THE LANGUAGE OF THE LAW IS TOO SIMPLE TO BE MISTAKENLY UNDERSTOOD, THERE IS NO NEED TO INTERPRET THE LAW.. However, in the case of the CPA practice, the law is placed as a SUPPLETORY to the standards which are so copied from abroad.. Please be advise that it is the other way around.
ETM wants to remind you that most of the CPAs here in the Philippines needeed you to be so independent to them so that the flow of cash from you to their pockets shall remain constant and overflowing.
The penalty for submitting an annual income tax return without audited/certified financial statements is just 25,000/50,000 pesos while to get a CPA/auditor to issue an opinionated ‘Auditor’s Certificate’ may reach to 3,000,000 pesos…. ETM as a fighter for the rights and privileges of taxpayers who are being oppressed (just like you) recommends that you just prepare and submit an annual income tax return without its PREDICTABLE attachment that is opinionated financial statements… Just wait for the Bureau of Internal Revenue to penalize you later on. You penalty would be used to help the needy and the poor. Don’t be a victim of blood-suckers.
Don’t be predictable. Do the unexpected now.
For those who have big deficiency tax assessments and don’t know how to reduce it legally, ETM is inviting you to register now because in February 2014, he would solve your tax problems with the BIR without bribing anyone, asking favor from somebody and paying too much for the services that you don’t understand. He has a full-proof plan in decreasing your deficiency tax that is shown either your Preliminary Assessment Notice or Formal Letter of Demand/Final Assessment Notice.
You would be amazed that the NIRC/Tax Code is too accommodating to solve your tax woes and worries.
For details, only 20 taxpayers shall be entertained so register now via kataxpayer@gmail.com or call Manila Office 439 3918 or 921 6107 or 0922 801 0922 or 0998 979 3922. Salamat..
TAX ACCOUNTING COURSE FOR
a. VAT REGISTERED TAXPAYERS
b. NON-VAT REGISTERED TAXPAYERS
shall start in the first week of February 2014, please register early to get the most out of your investment
“https://www.facebook.com/
Chapter 1 - Auditors' Certificate
By Emelino T Maestro, Father of Tax Accounting, Tax Guru
December 30, 2013, #cpadisgusting, #cpadistrusting,#cpaengagementletter, #ETM, #emelinomaestro
Today, the Philippines is celebrating the death anniversary of Dr. Jose Rizal.
This important celebration is to remind every Filipino that he can also effect change to his life by way of changing his concept, perception and idea of himself.
As a taxpayer, you can effect change to your life. Do the unexpected that is “Don’t use generally accepted accounting principles or Philippine Financial Reporting Standards in preparing your financial statements where the figures from your income tax return shall be lifted.”
For the past years, you became so predictable. And, being so, the scalawags in the Bureau of Internal Revenue are the happiest people to learn about it.
A big CPA firm would not hesitate bill you 3,000,000 pesos to prepare and issue opinionated financial statements. If it is not within your budget, a small-time CPA would charge you at least 50,000 pesos for his alleged professional services. ETM believes that any of the said amounts is too costly to get an opinion.
Submitting your income tax return accompanied by audited financial statements whether prepared/audited either by a big auditing firm or a not-so-known Certified Public Accountant (just like ETM) is an advertisement that you are so illiterate in taxation. Please be reminded that you are required to submit audited financial statements based on the language of the National Internal Revenue Code (NIRC/Tax Code).
Don’t blame yourself. It is not your fault but a grand design by those who are profiting from your non-conformity with requirements of the laws of the State. (Please click this link to register for Tax Accounting for Retailer, Wholesaler, Dealer, etc - GenSan City “https://www.facebook.com/
First, you are so predictable that every year, you would hire an incompetent CPA, require him to prepare/issue opinionated financial statements that are so alien and not relevant to you, lift the figures therefrom and place them in your annual income tax return and lastly, attach the such statements to your income tax return.
Finally, you are so predictable that every year, you would entertain the illegal advances of so many enterprising revenue officials by way of accepting their letters of authority, letter notices and subpoena duces tecum, are so fearful to question the way they prepare their audit findings/deficiency tax assessments and substantially share to them, rather than to your family and friends, the financial blessings that the Almighty God had provided you.
To understand these chronic problems, ETM would help you understand the source of your problems, the AUDITOR’S CERTIFICATE (in other terms, Auditor’s Report, [http://www.7-eleven.com.ph/
ADDRESSEE
Most of the issued financial statements is addressed either to the Stockholders, the Board of Directors, the President or combination thereof. For example is the following, viz;
“The Stockholders and the Board of Directors
Emelino T Maestro
7th Floor, The Columbia Tower
Ortigas Avenue, Mandaluyong City”
Predictable as you are, you consciously allow every year your CPA/auditor to address his Auditor’s Certificate to these people. Are you not fed up with this arrangement? Are you sure that his Auditor’s Certificate must always be prepared this way? Have you not ask him why it is so? Let ETM remind you that the Securities and Exchange Commission, Bureau of Internal Revenue, Bangko Sentral ng Pilipinas, etc…. (in other words, the Philippine Government is requiring you to submit to its agencies audited financial statements and other reports) are the ones who are interested to see your financial health. Your stockholders, directors and corporate officers would not be happy if the profit of their labor would be given away to a third party who may be a CPA or a lawyer as a payment for alleged professional services.
Thus, the Auditor’s Certificate must always be addressed to a government agency that requires audited financial statements. The reason is so simple. The legal obligation for their fair presentation shall be the responsibility of the CPA/auditor and not of the company itself. This would spare the company of additional expenses for the incompetence that is usually included in his services.
To help you NOT TO BE PREDICTABLE THIS YEAR, the following should be taken serious consideration, viz;
OPENING STATEMENT
Standard as they are, most of the Auditors’ Certificates would start like this, viz;
“We have audited the accompanying consolidated financial statements of EMELINO T MAESTRO and Subsidiaries, which comprise the consolidated balance sheets as at December 31, 2021 and 2022, and the consolidated statements of comprehensive income, statements of changes in equity and statements of cash flows for each of the three years in the period ended December 31, 2022, and a summary of significant accounting policies and other explanatory information.”
The CPA/auditor is completely informing you and your stockholders, directors and corporate officers what he examined. This is so you, so predictable by way of accepting what he examined is really what to be examined is to emphasize that you are ignorant of the laws of the State. Please be reminded that the laws of the State (NIRC/Tax Code) required your CPA/auditor to examine your books of accounts and not your financial statements. Thus, you and your CPA/auditor are clearly violating the laws of the State. ‘Negligence’ is punishable by imprisonment. Your CPA/auditor knew it before you hired him. And, to escape his legal responsibility not only to you as his client but most importantly, to the State, he would require all his proposed adjusting journal entries (PAJE) to be approved by you so that you would be legally accountable to whatever his adjustments might be and later on, he would require you to sign the so-called ‘Statement of Management’s Responsibility’ so that the pains of criminal humiliation shall be for your account alone.
MANAGEMENT RESPONSIBILITY
The so conventional 2nd paragraph of an Auditor’s Certificate usually states the following, viz;
“Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Philippine Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.”
As your CPA/auditor is directly advertising and emphasizing, regardless how much you paid him, the legal responsibility to the financial statements that he examined using the so-called ‘Philippine Financial Reporting Standards (generally accepted accounting principles) is solely shouldered by you. On top of it, he is exempting himself from any misstatement that your financial statements may bring to others although he is the last person who checked and double-checked them if the same is free from any material misstatement and misrepresentation. So, what really is the legal participation or purpose of getting, hiring and paying a CPA/auditor if at the end, you will be criminally prosecuted by the laws of the State? Would you please enlighten ETM?
AUDITOR’S RESPONSIBILITY
The next paragraph that you need to take seriously is this, viz;
“Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
“An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.”
Your CPA/auditor has clearly identified to where his alliance is that is the Philippine Financial Reporting Standards/ Philippine Standards on Auditing while you shall be criminally and civilly liable for any misrepresentation and misstatement of your financial statements that are prepared using these standards and principles. For your information and appreciation, the PFRS/PSA, as it is widely known, is not even a substantive law of the State. The NIRC/Tax Code says the accounting bookkeeping that is to be used in making entries in your books of accounts must not be contrary the provisions of the NIRC/Tax Code. So, if only your CPA/auditor had examined your books of accounts and not your financial statements which in the first place, the preparation of the latter falls on his shoulders, his Auditor’s Certificate shall show that the audit procedures are in accordance with the laws of the State and not just a mere standard or principle which is not being used by any government agency or branch of the Philippine Government. In other words, the Philippine Government has its owns rules and regulations such as the NIRC/Tax Code and it has no power and authority to implement a standard/principle that is not originated from the Philippine Congress. DON’T USE PFRS/PSA because you are advertising your predictability that is you are consistent law-violator.
OPINION
The last statements that you would read from an Auditor’s Certificate may look like this, viz;
“We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
“In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of EMELINO T MAESTRO and Subsidiaries as at December 31, 2021 and 2022, and their financial performance and their cash flows for each of the three years in the period ended December 31, 2022 in accordance with Philippine Financial Reporting Standards.”
First, your CPA/auditor believes that by using the PFRS/PSA, he can now issue an ‘opinion.’ Here, he is still unsure if after he examined your supplied financial statements and used these standards, he would be able to issue an opinion. But, have you asked yourself if his opinion matters not to you which most of you don’t understand the materiality and relevance of a CPA/auditor’s opinion? The laws of the State such as the NIRC/Tax Code require all CPAs and CPA firms whether big or small to certify financial statements and issue ‘certified financial statements’ and not to issue opinionated financial statements. The term ‘certify’ is not synonymous to ‘make an opinion’. These two word/phrase are not even interchangeable or comparable to one another. If the law says certified financial statements, it means certified financial statements and NOT OPINIONATED FINANCIAL STATEMENTS.
WHEN THE LAW IS VERY CLEAR, NO ROOM FOR FURTHER INTERPRETATION IS NECESSARY. ACCORDING TO NUMEROUS PHILIPPINE SUPREME COURT’S DECISIONS, IF THE LANGUAGE OF THE LAW IS TOO SIMPLE TO BE MISTAKENLY UNDERSTOOD, THERE IS NO NEED TO INTERPRET THE LAW.. However, in the case of the CPA practice, the law is placed as a SUPPLETORY to the standards which are so copied from abroad.. Please be advise that it is the other way around.
ETM wants to remind you that most of the CPAs here in the Philippines needeed you to be so independent to them so that the flow of cash from you to their pockets shall remain constant and overflowing.
The penalty for submitting an annual income tax return without audited/certified financial statements is just 25,000/50,000 pesos while to get a CPA/auditor to issue an opinionated ‘Auditor’s Certificate’ may reach to 3,000,000 pesos…. ETM as a fighter for the rights and privileges of taxpayers who are being oppressed (just like you) recommends that you just prepare and submit an annual income tax return without its PREDICTABLE attachment that is opinionated financial statements… Just wait for the Bureau of Internal Revenue to penalize you later on. You penalty would be used to help the needy and the poor. Don’t be a victim of blood-suckers.
Don’t be predictable. Do the unexpected now.
For those who have big deficiency tax assessments and don’t know how to reduce it legally, ETM is inviting you to register now because in February 2014, he would solve your tax problems with the BIR without bribing anyone, asking favor from somebody and paying too much for the services that you don’t understand. He has a full-proof plan in decreasing your deficiency tax that is shown either your Preliminary Assessment Notice or Formal Letter of Demand/Final Assessment Notice.
You would be amazed that the NIRC/Tax Code is too accommodating to solve your tax woes and worries.
For details, only 20 taxpayers shall be entertained so register now via kataxpayer@gmail.com or call Manila Office 439 3918 or 921 6107 or 0922 801 0922 or 0998 979 3922. Salamat..
TAX ACCOUNTING COURSE FOR
a. VAT REGISTERED TAXPAYERS
b. NON-VAT REGISTERED TAXPAYERS
shall start in the first week of February 2014, please register early to get the most out of your investment
“https://www.facebook.com/
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