Title: Unmodified/ Unqualified Report

Addressee: Shareholders of CRC-ACE Company

Opinion:

We have audited the financial statements of CRC-ACE Company (the Company), which comprise
the statements of financial position as at December 31, 20X2 and 20X1, and the statements of
comprehensive income, statements of changes in equity, and statement of cash flows for the
years then .ended, and notes to the financial statements, including a summary of significant
accounting policies, In our opinion, the accompanying financial statements present fairly, in all
material respects, the financial position of the Company as at December 31, 20X2 and 20X1,
and its financial performance and its cash flows for the years ended in accordance with
Philippine financial Reporting Standards (PFRSs).

Basis of Opinion:

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for
the Audit of the financial Statements section of our report We are independent of the Company
in accordance with the Code of Ethics for Professional Accountants in the Philippines (Code of
Ethics) together with the ethical requirements that are relevant to our audit of the financial
statements in the Philippines, and we have fulfilled our ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.

Management Responsibility:

Management is responsible for the preparation and fair presentation of the financial statements
in accordance with PRFSs, and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error In preparing the financial statements, management is responsible
for assessing the Company' S ability to continue as going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting, unless
management either intends to liquidate the Company to cease operations, or has no realistic
alternative but to do so. Those charged with governance are responsible for overseeing the
Company's financial reporting process.
Auditor’s Responsibility:

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with PSAs will always detect a
material misstatement when it exists Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.

Signature:

Auditor’s Address:

Date:

Title: Modified/ Qualified Report

Addressee: Shareholders of CRC-ACE Company

Opinion:

We have audited the financial statements. of CRC-ACE Company (the Company), which
comprise the statements of financial position as at December 31, 20X2 and 20X1, and the
statements of comprehensive income, statements of changes in equity, and statement of cash
flows for the years then ended, and notes to the financial statements, including a summary of
significant accounting policies. In our opinion, except for the effects of the matter described in
the Basis for Qualified Opinion section, the accompanying financial statements present fairly, in
all material respects, the financial position of the Company as at December 31, 20X2 and 20X1,
and its financial performance and its cash flows for the years ended in accordance with
Philippine financial Reporting Standards (PFRSs).

Basis of Opinion:

The Company's investment in ABC Company, an associate acquired during the year and
accounted for using he equity method, is carried at PXXX on the statement of financial position
as at December 31, 20X2, and the CRC-ACE's share of ABC's net income of PXXX in included in
CRC-ACĘ's net income for the year then ended We were unable to obtain sufficient appropriate
evidence about the carrying amount of CRC- ACE's investment in ABC as at December 31, 20X2
and CRC-ACE's share of ABCs n income for the year because we were denied access to the
financial information AR. Company. Consequently, we were unable to determine whether any
adjustments to these amounts were necessary. We believe that the audit evidence we have
obtained sufficient and appropriate to provide a basis for our qualified opinion.

Management Responsibility:

Management is responsible for the preparation and fair presentation of the financial statements
in accordance with PRSs, and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error In preparing the financial statements, management is responsible
for assessing the Company's ability to continue as going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting, unless
management either intends to liquidate the Company to cease operations, or has no realistic
alternative but to do so. Those charged with governance are responsible for overseeing the
Company's financial reporting process.

Auditor’s Responsibility:

Our objectives are to obtain reasonable assurance about the audit whether the financial
statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with PSAs will always
detect a material misstatement when it exists Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.

Other Legal and Regulatory Requirements:

Signature:

Auditor’s Address:

Date:

Title: Disclaimer Report

Addressee: Shareholders of CRC-ACE Company

Opinion:

We were engaged to audit the financial statements of CRC-ACE Company (the Company), which
comprise the statements of financial position as at December 31, 20X2 and 20X1, and the
statements of comprehensive income, statements of changes in equity, and statement of cash
flows for the years then .ended, and notes to the financial statements, including a summary of
significant accounting policies, In our opinion, the accompanying financial statements present
fairly, in all material respects, the financial position of the Company as at December 31, 20X2
and 20X1, and its financial performance and its cash flows for the years ended in accordance
with Philippine financial Reporting Standards (PFRSs).

We do not express an opinion on the accompanying financial statements of the Company.

Because of the significance of the matter described in the Basis for Disclaimer of Opinion
section of our report, we have not been able to obtain sufficient appropriate evidence to
provide a basis for an audit opinion on these financial statements.

Basis of Opinion:

The Company's investment in its joint venture XYZ Company is carried at PXXX on the
Company's statement of financial position, which represents over 90% of the Company's net
assets as at December 31, 20X2. We were not allowed access to the management and the
auditors of XYZ Company, including XYZ auditor's working papers. As a result, we were unable to
determine whether any adjustments were necessary in respect of the carrying amount of its
investment in joint venture and Company's share of XYZ Company's net income for the year.

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for
the Audit of the financial Statements section of our report We are independent of the Company
in accordance with the Code of Ethics for Professional Accountants in the Philippines (Code of
Ethics) together with the ethical requirements that are relevant to our audit of the financial
statements in the Philippines, and we have fulfilled our ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our qualified opinion

Management Responsibility:

Management is responsible for the preparation and fair presentation of the financial statements
in accordance with PRSs, and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error In preparing the financial statements, management is responsible
for assessing the Company's ability to continue as going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting, unless
management either intends to liquidate the Company to cease operations, or has no realistic
alternative but to do so. Those charged with governance are responsible for overseeing the
Company's financial reporting process.

Auditor’s Responsibility:

Our responsibility is to conduct an audit of the Company's financial statements in accordance

with the Philippine Standards on Auditing and to issue an auditor's report. However, because of
the matter described in the Basis for Disclaimer of Opinion section of our report, we were not
able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on
the financial statements. We are independent of the Company in accordance with the ethical
requirements that are relevant to our audit of the financial statements in the Philippines, and
we have fulfilled our ethical responsibilities in accordance with these requirements.

Signature:

Auditor’s Address:
Date:

Title: Adverse Report

Addressee: Shareholders of CRC-ACE Company

Opinion:

We have audited the financial statements of CRC-ACE Company (the Company), which comprise
the statements of financial position as at December 31, 20X2 and 20X1, and the statements of
comprehensive income, statements of changes in equity, and statement of cash flows for the
years then ended, and notes to the financial statements, including a summary of significant
accounting policies.

In our opinion, because of the significance of the matter described in the Basis for Adverse
Opinion section of our report, the accompanying financial statements do no present fairly the
financial. position of the Company as at December 31, 20X2 and its financial performance and
cash flows for the year then ended in accordance with the Philippine Financial Reporting
Standards.

Basis of Opinion:

On January 15, 20X2, the Company issued debentures in the amount of PXXX for the purpose of
financing plant expansion. The debenture agreement restricts the payment of future cash
dividends to earnings after December 31, 20X1. In our opinion disclosure of this information is
required by PFRS 9.

We conducted our audit in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor's Responsibilities for
the Audit of the financial Statements section of our report We are independent of the Company
in accordance with the Code of Ethics for Professional Accountants in the Philippines (Code of
Ethics) together with the ethical requirements that are relevant to our audit of the financial
statements in the Philippines, and we have fulfilled our ethical responsibilities in accordance
with these requirements and the Code of Ethics. We believe that the audit evidence we have
obtained sufficient and appropriate to provide a basis for our adverse opinion.

Management Responsibility:

Management is responsible for the preparation and fair presentation of the financial statements
in accordance with PRSs, and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error In preparing the financial statements, management is responsible
for assessing the Company' S ability to continue as going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting, unless
management either intends to liquidate the Company to cease operations, or has no realistic
alternative but to do so. Those charged with governance are responsible for overseeing the
Company's financial reporting process.

Auditor’s Responsibility:

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with PSAs will always detect a
material misstatement when it exists Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.

Signature:

Auditor’s Address:

Date: