What financial limits determine whether a corporation’s financial statements may be certified by its officers instead of an independent auditor?
The general rule requires annual financial statements to be audited by an independent certified public accountant for submission to the SEC (SEC. 74, Revised Corporation Code of the Philippines). However, if the corporation’s total assets or total liabilities are less than Six hundred thousand pesos (P600,000.00), the independent audit requirement is waived. In such cases, the financial statements may be certified under oath by the corporation’s treasurer and president. This exemption simplifies compliance for small corporations, though the Department of Finance retains the authority to adjust this financial threshold if deemed appropriate.
31 October 2025
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