What is the specific penalty for an independent auditor found to be in collusion with the corporation’s directors?
An independent auditor who, in collusion with the corporation’s directors or representatives, certifies financial statements despite their incompleteness, inaccuracy, or failure to present a fair and accurate condition, shall be punished (SEC. 163, Revised Corporation Code of the Philippines). The initial fine for this collusion ranges from Eighty thousand pesos (P80,000.00) to Five hundred thousand pesos (P500,000.00). If the certified statement or report is found to be fraudulent, or has the effect of causing injury to the general public, the auditor or responsible officer may face an increased fine ranging from One hundred thousand pesos (P100,000.00) to Six hundred thousand pesos (P600,000.00). This provision establishes a clear penalty structure for professional misconduct affecting financial integrity.
02 November 2025
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