Audit Of Financial Statements
Certain business and individuals are mandated by law to file a yearly financial statement duly examined and audited by an Independent Certified Public Accountant.
Under the Revised Security Regulation Code (SRC) which was approved by the Securities & Exchange Commission (SEC) on 19 August 2019, the Financial Statements of the following corporations shall be audited by an independent certified public accountant (CPA) registered with the Board of Accountancy (BOA):
Stock corporations with total assets or total liabilities of Six Hundred Thousand Pesos (P600,000) or more;
Non-stock corporations with total assets or total liabilities of Six Hundred Thousand Pesos (P600,000) or more;
Branch offices/representative offices of stock foreign corporations with assigned capital in the equivalent amount of One Million Pesos (P1,000,000) or more;
Branch offices/representative offices of non-stock foreign corporations with total assets in the equivalent amount of One Million Pesos (P1,000,000) or more;
Regional operating headquarters of foreign corporations with total revenues in the equivalent amount One Million Pesos (P1,000,000) or more.
Furthermore, the Bureau of Internal Revenue (BIR) requires that a corporation, partnership or individual whose gross quarterly receipts, earnings or output exceed P150,000.00 are mandated to file annual financial statements audited and examined by an independent Certified Public Accountant.
The objective of the external audit by an Independent Certified Accountant is to provide independent assurance that management has, in its financial statements, presented a “true and fair” view of the company’s financial performance and position. It determines whether the accounting records are accurate and complete and the financial statements are fairly presented in accordance with Philippine Financial Reporting Standards.
Our firm provides independent assurance on financial statements to comply with the government regulatory requirements. We conduct an independent audit on the financial statements in accordance with the Philippine Standards on Auditing (PSA) and express the appropriate audit opinion on the financial statements.
Our firm have extensive experience in external audit and its partners are duly qualified and accredited by the Board of Accountancy (BOA), Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR) to conduct an independent audit of the financial statements.
Our firm performs compilation services that involve the preparation of financial statements in accordance with the applicable financial reporting framework. The financial reporting framework refers to a set of accounting principles, standards, interpretations and pronouncement that must be adopted in the preparation and submission of the annual financial statements of a particular class of entities as defined by the rule of the Securities & Exchange Commission. These are but not limited to the following:
Philippine Financial Reporting Standards (PFRS) – This framework is applicable to Public Interest and Large Entities with assets of more than Three Hundred Fifty Million Pesos (P350 Million) or total liabilities of more than Two Hundred Fifty Million Pesos (P250 Million). Including companies holding secondary licenses issued by regulatory agencies such as lending and financing companies.
Philippine Financial Reporting Standards for Medium-Sized Entities (PFRS for SME) – This framework is applicable to entities with assets of more One Hundred Million Pesos (P100,000,000) to Three Hundred Fifty Million Pesos (P350 Million).
Philippine Financial Reporting Standards for Medium-Sized Entities (PFRS for SME) – This framework is applicable to entities with total assets of between Three Million Pesos (P3 Million) to One Hundred Million Pesos (P100,000,000).
On Site Verification Of Financial Records
The Securities & Exchange Commission (SEC) issued Memorandum Circular No. 6 Series of 2008 which requires On-Site Verification of Financial Records by an independent accredited Certified Public Accountant relative to the following application filed to the Commission:
Application for Increase in Capital Stock
Application for a Certificate of Authority to operate as a Financing or Lending Company
The On-Site Verification Procedures must be conducted by an independent and accredited CPA who will accordingly issue the verification report required by the SEC.
Our partners are highly qualified to perform the above mentioned procedures and duly qualified and accredited to issue the required verification report.
Set-Up Of Computerized Accounting System
Our firm provides services for Agreed Upon Procedures Engagement in accordance with the Philippine Standards on Related Services (PSRS4400). We review certain financial information based on agreed upon procedures with the clients. The engagement may involve the conduct of certain procedures concerning individual items of account, financial data, transaction, information or statement. Our firm and client must agree on the objective of the audit and the procedures that will be taken in the conduct of the engagement.
Our professional team can evaluate and test your existing internal control system. We will determine if your present internal control system is adequate and effective. We would recommend additional internal control measures should we find some weaknesses in your system during the course of our examination.
This audit is conducted when the management has suspicions that there is fraud within the Company. Thorough examination of records will be done and report on finding will be submitted after.