We offer external audit of financial statements of small and medium sized-entities belonging to the industry of manufacturing, logistics, retail, education and non-profit organizations and who are not offering stocks and other financial instruments in the capital markets.
The ripple effects of mismanagement are deeply felt by stakeholders. The investors, bankers, customers and other key stakeholders want to be assured more than ever. The local and international regulators have put up stricter measures to disclose as much information as possible about the company to protect the interest of stakeholders. The stakeholders are heavily banking on the credibility of the financial information. The auditor's attestation on financial reports reflects his/her opinion on the reasonable accuracy and reliability of financial information. Businesses become more complex these days while other companies are operating in unregulated business environment. Therefore, stakeholders clamor for more independence in substance over form from auditors.
We work closely with our clients to address the important issues surrounding their financial reports. We strive our best to help them improve the financial and operating controls by communicating the important and practical administrative and accounting controls that balances of cost and benefit considerations.
We offer external audit of financial statements to small and medium sized-entities belonging to the industry of manufacturing, logistics, retail and non-profit organizations and who are not offering stocks and other financial instruments in the capital markets.
The audited financial statements of small and medium-sized entities must conform with the financial reporting standards for SMEs as prescribed by the Philippine Securities and Exchange Commission. The Commission defines SMEs, per SRC rule 68 as amended, as companies having total assets between P3M and P350M or having total liabilities between P3M and P250M. If the entity is a parent company, the financial amounts shall be based on consolidated figures. They are not required to file the financial statements under part 2 of SRC rule 68. These companies are not in the process of filing their financial statements for the purpose of issuing any class of instruments in a public market and are not holders of secondary licenses issued by the regulatory agencies. To know more about PFRS for SMEs, please visit the website of PICPA or SEC.
We assist companies that need help in the preparation of financial statements. We prepare the monthly, quarterly or annual financial statements, depending on the needs of the client, without expressing any assurance thereof. We compile the financial information based on the appropriate financial statement form and representation from Management. In the preparation of financial statements, we make sure that facts and figures are presented in conformity with the generally accepted accounting principles attuned to the client's industry.
We provide limited assurance through review of financial statements. We tell our clients whether the numbers make sense in the financial statements without employing any audit procedures. We read the client's compiled financial statements and then investigate the numbers through inquiries and analytical procedures. This assurance is limited. If the client wants more assurance, we advise them to have the financial statements audited.
The US-based public companies with business operations overseas are required to undergo a series of reviews before the annual audit is conducted. For these foreign companies operating in the Philippines, we check not only the accuracy and reliability of financial data but also the operating effectiveness of the Company's internal controls that produce these data. To know more about this, please go to Sarbanes-Oxley 404 or SOX 404.
We accept requests from clients who want comprehensive reviews of their company in regard to adherence to prescribed rules and guidelines of the regulatory body. We also accept engagements to determine whether the company is following the terms of agreement with their contracting parties. We are thorough in our review of documents and processes that generate those documents.
We assist our clients in the preparation and submission of report requirements of the Securities and Exchanges (SEC), Bureau of Internal Revenue (BIR), Philippine Export Zone Authority (PEZA) and other regulatory agencies.
We examine the specific elements or accounts based on the procedures agreed upon with the client. Some clients request that we follow their examination procedures, hence, the client takes the responsibility for the adequacy of the procedures. If there are other important points that we missed out during the discussion, we bring this matter to the client and ask them to take a second look on the examination procedures.
We issue the report or findings based on the specific elements or account items. We request a representation letter from the client based on the engagement and use of the report or findings.