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Mr. Sabado is a member of the Philippine Institute of Certified Public

Accountants. It is globally recognized and integrated national organization of

Filipino Certified Public Accountants in all sectors. He established a name for

himself and known for his quality service. The main objective of the firm is to gain

profit, to render good quality service and to be able to satisfy their clients.

1.1 Main Office

EF Sabado Accounting Office is located at #20 Delmar Subdivision, Purok

Malakas, General Santos City. It is situated in a residential area and it has no

name that can be easily recognized as an accounting office. Despite of the

location, it is not a hindrance for the firm to get the extent of its clients. The firm

has no other branch in the national and local area.

1.3 Services

EF Sabado Accounting Office caters accounting, auditing, consultancy

services and retainers agreement. The firm has various clients which may vary

from small business to large corporate ones.

Accounting Services is their main service which involves construction of the

financial statements of their clients. It involves Statement of Financial Position,

Statement of Financial Performance, Statement of Changes in Owners Equity for

sole proprietorship, Statement of Partners Equity for partnership, Statement of

Stockholders Equity for corporation, Statement of Cash Flows and

Supplementary Notes.

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Auditing Services involves evaluating the reliability and credibility of the

financial statements of their clients and as well as the systems and processes

responsible for recording and summarizing that information. The firm conducts

fieldwork to analyze documents and transactions to ascertain the degree of

compliance with the generally accepted accounting principles (GAAP). The firm

then makes an independent auditors report after obtaining findings throughout

their audit process.

Consultancy Services involves preparing and filling of returns for BIR,

preparing reportorial requirements for SEC, accepts engagement for conducting

a feasibility study of putting up different businesses and other management

accounting services.

Retainers Agreement constitutes an agreement between the client and the

firm for consulting services for the period specified. During this period, the firm

agrees to devote up to number of hours per month on assignments to be

determined by the client.

1.4 Number of Personnel

EF Sabado Accounting Office is composed of 10 active employed individuals

in whom four of them are Certified Public Accountants. Each of them has their

designated tasks to be performed.

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1.5.2 Duties and Responsibilities

This part defines the duties and responsibilities of the personnel

based on the position they have in the firm. They have provided job

description and specification so as to avoid overlapping of duties as well

as confusion in their work.

OWNER/MANAGER

Responsible for day-to-day operation of the firm

Signs the reports prepared by the firm for the client

Do the final review on various reports prepared by the firm

ASSOCIATES

Finalizes the preparation of financial statements of clients

Audits the financial operations of clients

ASSISTANT MANAGER

Assigns duties and monitors quality of work; assures staff conforms

to organizational policies and procedures and government

regulations

Hires, trains, supervises, motivates, and develops accounting staff

and manages workflow

OPERATIONS HEAD

Plan, direct and coordinate the operations of the firm

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Liaison with top management. Assist in the development of

strategic plans for operational activity. Implement and manage

operational plans.

FINANCE HEAD

Ensure credibility of finance group by providing timely and accurate

analysis of budgets, financial trends and forecasts.

Ensure that effective internal controls are in place and ensure

compliance with GAAP and applicable federal, state and local

regulatory laws and rules for financial and tax reporting.

STAFF

Do the actual fieldwork

Do various transactions with different agencies

Coordinate with clients for necessary documents

1.5.3 Qualifications

The firm is consists of personnel and each of them has a role. The

personnel were deliberately assigned to where their qualifications may fit

so that there is matching of skills to the job.

OWNER/MANAGER

A graduate of Bachelor of Science in Accountancy

Has a professional experience in any related accounting practice

Must be a Certified Public Accountant

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FINANCE HEAD

A graduate of Bachelor of Science in Accountancy or Management

Accounting

Trustworthy and be highly trainable

Can work independently

Must be hardworking and determined to work

Good in oral and written communication

STAFF

A graduate of any business courses

Must be computer literate

Must be hardworking and can work under pressure

Good in oral and written communication

1.6 The Accounting Systems

This part refers to the accounting system used by the firm. This contains

the revenue and expenditure accounting system. Revenue accounting system is

the inflows of cash to the entity as the entity render services or sells goods.

Expenditure accounting system is the outflows of cash from the entity as it pays

for the expenses it incurs while selling the goods or rendering various services.

Conversion accounting system is not applicable in this company since it is a

service type of business and not the manufacturing type of business

This part also consists of data flow diagram, document flowchart, narrative

descriptions of transaction processing and internal controls.

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1.6.1 Revenue Accounting System

The revenue accounting system of EF Sabado Accounting Office

has a simple way of recording transactions. When the firm finished the

reports needed by the client, the firm prepares source documents for the

payment of the client.

1.6.1.1 Accounting Records

Accounting records are the documents or files usually used by the

firm to record their business transactions so that they will have their bases

for future references. The following are the accounting records used by

the firm:

Documents. A document provides evidence that an economic

event has occurred and is used to initiate transaction

processing. The documents used by the firm include billing

statements and official receipts.

Journals. A journal is a record of chronological entry. The

journal holds complete records of transactions and thus

provides a means for posting to accounts.

Ledgers. A ledger is a book of accounts that reflects the

financial effects of the firms transactions after they are posted

from the various journals.

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1.6.1.2 Data Flow Diagram

Data flow diagram uses symbols to represent the entities,

processes and data flows, and data stores that pertain to the system. It is

used to represent systems at different levels of detail from very general to

highly detailed. Figure 2 presents the data flow diagram of the revenue

accounting system of EF Sabado Accounting Office. See page 11.

1.6.1.3 Document Flow Chart

A document flow chart is used to depict the elements of a manual

system, including accounting records, organizational departments involved

in the process, and activities that are performed in the departments.

Figure 3 presents the document flow chart of the revenue accounting

system of EF Sabado Accounting Office. See page 12.