Background: We are tasked to make an Auditor$$s Report with complete FS$.($However$,$ I don$$t know where to start and the process.$)$

NEED TO DO: Make an entry on the AUDIT PROPER. And give me advice or timeline on how I will finish the AUDITOR'S REPORT AND COMPLETE FS

Can you give me a timeline on how will I finished the Auditor$$s report especially the complete FS$.$ After the adjusting entry in Audit proper, what will I do$?$ Can I generate now the FS$?$ Then, is that my basis now of my FS and NOTES? How will I form my opinion $($e$.$g$.$ QUALIFIED$).$ PLEASE, I REALLY NEED HELP. I don$$t know the process of the preparation of the AUDITOR$$s Report.

You were appointed by the Board of Directors to audit the company for the fiscal year ending August $31,2024.$ As the external auditor, you were asked by your audit partner to create the necessary adjusting entries, reflect the changes to your trial balance, and prepare a full set of financial statements including the notes and auditor$$s report. Below are your audit findings:

$1)$The company$$s additional loan for P$1,500,000$ was approved and release by the bank on $8/31/2024.$ The loan will be paid in eighteen equal monthly installments. The bank erroneously credited the proceeds of this loan to another borrower$$s account. This did not appear as a reconciling item in the company$$s bank reconciliation as at $8/31/2024.$ The net proceeds of the loan was computed as follows:

Principal $1,500,000$

Bank charges $80,000$

Interest deducted in advance $180,000$

$2)$A review of the customer$$s ledgers disclosed that a collection of P$335,000$ on $8/15/2024$ was not booked.

$3)$Shipments made and billed to customers at year$-$end $($AUGUST$)$ amounted to P$500,000$ was entered into the books on $9/2/2024.$ It was determined that $15\%$ of the shipment were returned by the customers on $9/20/2024.$ Upon their return, the client issued the corresponding credit memo. The client recognized $20\%$ profit based on cost$.$ Term: FOB shipping point.

$4)$The client uses the allowance account in recognizing uncollectible accounts receivable. The allowance is based upon $10\%$ of adjusted accounts receivable $$ trade. Based on historical loss rate and adjusted for current observable data, it is determined that $10\%$ of the accounts receivable $$ trade will not be collected.

$5)$The purchased cut$-$off examination revealed that a supplier shipped goods costing P$400,000$ at year$-$end. Terms: FOB destination. The goods were received on $9/5/2024.$

$6)$Inventories amounting to P$1,000,000$ were left outside the warehouse exposed under the rain at year$-$end. These were no longer saleable.

$7)$Analysis of the investment in ABC shares classified as available for sale securities revealed the following ledger entries:

Debit Credit

a$\mathrm{.}6/30/2024$ Purchased $10,000$ shares $5,000,000$

b$\mathrm{.}7/15/2024$ Share in net income $500,000$

c$\mathrm{.}8/1/2024$ Proceeds from sale of

$1\mathrm{.}2,500$ shares $1,337,500$

d$.$

e$.$Broker$$s commission amounting to P$25,000$ was not recorded on $6/30/2024.$

f$.$Company received $1,500$ shares dividends on $8/15/2024.$

g$.$Market value per share of ordinary share at year$-$end was P$550.$

$8)$The company bought office and store supplies on various dates totaling P$90,000$ and booked them as expenses. As at year end, unused supplies amounted to P$30,000.$

$9)$Depreciation for the year have been verified and found to have been overstated by P$150,000.$

$10)$Available for sale securities revealed that their estimated market value amounted to P$1,000,000.$

$11)$Income tax rate for the year is $30\%.\backslash$table$[[$Accounts Payable,,$1,650,000\mathrm{.}00],[$Accounts Receivable $-$ Others,$500,000\mathrm{.}00,],[$Accounts Receivable $-$ Trade,$14,000,000\mathrm{.}00,],[$Accumulated Depreciation $-$ Building,,$1,000,000\mathrm{.}00],[$Accumulated Depreciation $-$ Equipment,,$1,500,000\mathrm{.}00],[$Additional Paid$-$in$,,2,500,000\mathrm{.}00],[$Allowance for doubtful accounts,,$1,400,000\mathrm{.}00],[$Available for sale marketable equity securities $-$ cost$,890,000\mathrm{.}00,],[$Building$,4,000,000\mathrm{.}00,],[$Cash in Bank,$3,485,000\mathrm{.}00,],[$Discount on Notes Payable,,$],[$Equipment$,2,500,000\mathrm{.}00,],[$Income Tax Payable,,$976,200\mathrm{.}00],[$Inventories$,9,000,000\mathrm{.}00,],[$Investment In ABC Company,$5,000,000\mathrm{.}00,],[$Land$,3,000,000\mathrm{.}00,],[$Notes Payable $-$ Current,,$500,000\mathrm{.}00],[$Notes Payable $-$ Noncurrent,,$6,500,000\mathrm{.}00],[$Ordinary Share @P$1,000$ par,,$25,000,000\mathrm{.}00],[$Petty Cash,$15,000\mathrm{.}00,],[$Prepaid expenses,$310,000\mathrm{.}00,],[$Retained Earnings,,$1,923,800\mathrm{.}00],[$Treasury Shares,$250,000\mathrm{.}00,],[$Valuation Allowance $-$ Marketable Securities,,$]]$