According to the requirements of Securities and Exchange Commission, the companies, which are relatively small-scale with capital more than 50,000 pesos, are necessary to receive the financial audit of independent accountant. Furthermore, according to the regulations of Tax Act, the companies, which the sales of four quarters more than 150,000 pesos should attach the audited financial statements when submit the tax declaration.
The conditions of auditors:
Independent accountants should conduct financial auditors. In order to be the certified public accountants in Philippines, the persons should pass the examinations and have at least three years of work experience.
The standards of financial audit are the Philippines Standard on Auditing. The followings are some parts of present title of PSA.
PSA 120 – Framework of Philippine Standards on Auditing
PSA 200 (Revised and Redrafted) – Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing
PSA 210 (Redrafted) – Agreeing the Terms of Audit Engagements
PSA 220 (Redrafted) – Quality Control for Audits of Historical Financial Statements
PSA 230 (Redrafted) – Audit Documentation
PSA 240 (Redrafted) – The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements
PSA 250 (Redrafted) – Consideration of Laws and Regulations in an Audit of Financial Statements
PSA 260 (Revised and Redrafted) – Communication with Those Charged with Governance
PSA 265 (New) – Communicating Deficiencies in Internal Control to Those Charged with Governance and Management
PSA 300 (Redrafted) – Planning an Audit of Financial Statements
PSA 315 (Redrafted) – Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment
PSA 320 (Revised and Redrafted) – Materialize in Planning and Performing an Audit
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