Republic of the Philippines
COMMISSION ON AUDIT
Commonwealth Ave., Quezon City
CORPORATE GOVERNMENT SECTOR
CLUSTER 1 - BANKING AND CREDIT
INDEPENDENT AUDITOR'S REPORT
The Board of Directors
Land Bank of the Philippines
Manila
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Land Bank of the Philippines and its
Subsidiaries (the Group) and of Land Bank of the Philippines (the Parent) which
comprise the statements of financial position as at December 31, 2020 and 2019, and
the statements of comprehensive income, statements of changes in equity and
statements of cash flows for the years then ended, and notes to 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 Group and the Parent as at December 31, 2020
and 2019, and their financial performance and their cash flows for the years then ended,
in accordance with Philippine Financial Reporting Standards (PFRSs).
Basis for Opinion
We conducted our audits in accordance with International Standards of Supreme Audit
Institutions (ISSAls). Our responsibilities under those standards are described in the
Auditor's Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Group and of the Parent Bank in accordance with the
Revised Code of Conduct and Ethical Standards for Commission on Audit Officials and
Employees together with the ethical requirements that are relevant to our audits of the
financial statements in the Philippines, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Responsibilities of Management and Those Charged with Governance for the
Financial Statements
Management is responsible for the preparation and fair presentation of the financial
statements in accordance with PFRSs, 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
Group's and the Parent's ability to continue as a 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 Group and the Parent or
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's and
Parent's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
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 ISSAls 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 financial statements.
As part of an audit in accordance with ISSAls, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
* Identify and assess the risks of material misstatement of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control.
* Obtain an understanding of internal control relevant to the audit 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 Group's and the Parent's internal
control.
* Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
* Conclude on the appropriateness of management's use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on
the Group's and the Parent's ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor's
report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor's report. However, future events or conditions
may cause the Group and the Parent to cease to continue as a going concern.
* Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
Report on Other Regulatory Requirements
Our audits were conducted for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information required under Revenue
Regulations No. 15-2010 in Note 26 and the Bangko Sentral ng Pilipinas (BSP) Circular
No. 1074 in Note 32 to the financial statements is presented for purposes of filing with
the Bureau of Internal Revenue and complying with the BSP, respectively, and is not a
required part of the basic financial statements. Such supplementary information is the
responsibility of management of the Parent and has been subjected to the auditing
procedures applied in our audits of the basic financial statements. In our opinion, the
supplementary information is fairly stated in all material respects, in relation to the basic
financial statements taken as a whole.
COMMISSION ON AUDIT
R CHIE . FELICES
Superi   Auditor
August 19, 2021