AUDITING THEORIES

1. Read the background information about the real estate industry and conduct additional research on the internet to obtain the latest news and information on the industry, specially the effects of the Covid-19 pandemic. Brainstorm relevant industry, regulatory, and other external factors including the applicable financial reporting framework. Relevant industry factors include industry conditions such as the competitive environment, supplier and customer relationships, and technological developments. Examples of matters the auditor may consider include

"The market and competition, including demand, capacity, and price competition."

(Do include this risk factor)

also, indicate how this risk factor might impact the risk of material misstatements in specific financial statement accounts or disclosures.

Introduction E than Properties Philippines, Inc. was registered with the Philippine SEC in 2008 and is engaged in developing and operating for sale, lease, or hold for investment real estate of all kinds, including buildings, houses, apartments, and other structures. From the its inception, the company has completed various developments including a number of high-rise building, a mid-rise development, residential subdivisions, commercial centers, BPO Offices, an Events Venue Center, and serviced residences. Currently, the company has three (3) on-going development of commercial buildings. The Company markets its projects to residential market segments, office locators and commercial tenants through internal and external sales and marketing channels. For its leasing business, the Company employs a dedicated team who coordinates with business entities for leasing opportunities in the company's various projects. The Company has a wide network of suppliers, both local and foreign. The Company has also a wide customer base and is not dependent on one or a limited number of customers. The Company complies with all government agencies in securing licenses to sell, development permits, Environmental Compliance Certificate (ECC) and all other mandated requirements of the industry. The Company had 391 and 400 employees at the close of the calendar year December 31, 2019 and 2018, respectively. The Company's employees do not belong to any labor union or federation. At present, its employees receive compensation and benefits in accordance with the Labor Code of the Philippines. The Philippine real estate development industry is highly competitive with respect to township developments in Metro Manila and high-rise condominiums. Ethan believes that it is a strong competitor in the mid- and high-end markets due to the quality of its products and materials used in construction and finishing. In addition, the Company believes that the prime locations of its developments allow it to effectively compete in the market. On the other hand, the Company has access, through its holdings and holdings of its affiliates, to one of the most extensive land banks in the Philippines, comprising properties strategically located in the prime areas of Metro Manila and its periphery