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Audit approach overview
Our audit approach will allow our client's accounting personnel to make the maximum contribution to the audit effort without compromising their ongoing responsibilities
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Annual and short period audit
At P&A Grant Thornton, we provide annual and short period financial statement audit services that go beyond the normal expectations of our clients. We believe strongly that our best work comes from combining outstanding technical expertise, knowledge and ability with exceptional client-focused service.
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Review engagement
A review involves limited investigation with a narrower scope than an audit, and is undertaken for the purpose of providing limited assurance that the management’s representations are in accordance with identified financial reporting standards. Our professionals recognize that in order to conduct a quality financial statement review, it is important to look beyond the accounting entries to the underlying activities and operations that give rise to them.
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Other Related Services
We make it a point to keep our clients abreast of the developments and updates relating to the growing complexities in the accounting world. We offer seminars and trainings on audit- and tax-related matters, such as updates on Accounting Standards, new pronouncements and Bureau of Internal Revenue (BIR) issuances, as well as other developments that affect our clients’ businesses.
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Tax advisory
With our knowledge of tax laws and audit procedures, we help safeguard the substantive and procedural rights of taxpayers and prevent unwarranted assessments.
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Tax compliance
We aim to minimize the impact of taxation, enabling you to maximize your potential savings and to expand your business.
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Corporate services
For clients that want to do business in the Philippines, we assist in determining the appropriate and tax-efficient operating business or investment vehicle and structure to address the objectives of the investor, as well as related incorporation issues.
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Tax education and advocacy
Our advocacy work focuses on clarifying the interpretation of laws and regulations, suggesting measures to increasingly ease tax compliance, and protecting taxpayer’s rights.
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Business risk services
Our business risk services cover a wide range of solutions that assist you in identifying, addressing and monitoring risks in your business. Such solutions include external quality assessments of your Internal Audit activities' conformance with standards as well as evaluating its readiness for such an external assessment.
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Business consulting services
Our business consulting services are aimed at addressing concerns in your operations, processes and systems. Using our extensive knowledge of various industries, we can take a close look at your business processes as we create solutions that can help you mitigate risks to meet your objectives, promote efficiency, and beef up controls.
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Transaction services
Transaction advisory includes all of our services specifically directed at assisting in investment, mergers and acquisitions, and financing transactions between and among businesses, lenders and governments. Such services include, among others, due diligence reviews, project feasibility studies, financial modelling, model audits and valuation.
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Forensic advisory
Our forensic advisory services include assessing your vulnerability to fraud and identifying fraud risk factors, and recommending practical solutions to eliminate the gaps. We also provide investigative services to detect and quantify fraud and corruption and to trace assets and data that may have been lost in a fraud event.
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Cyber advisory
Our focus is to help you identify and manage the cyber risks you might be facing within your organization. Our team can provide detailed, actionable insight that incorporates industry best practices and standards to strengthen your cybersecurity position and help you make informed decisions.
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ProActive Hotline
Providing support in preventing and detecting fraud by creating a safe and secure whistleblowing system to promote integrity and honesty in the organisation.
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Accounting services
At P&A Grant Thornton, we handle accounting services for several companies from a wide range of industries. Our approach is highly flexible. You may opt to outsource all your accounting functions, or pass on to us choice activities.
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Staff augmentation services
We offer Staff Augmentation services where our staff, under the direction and supervision of the company’s officers, perform accounting and accounting-related work.
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Payroll Processing
Payroll processing services are provided by P&A Grant Thornton Outsourcing Inc. More and more companies are beginning to realize the benefits of outsourcing their noncore activities, and the first to be outsourced is usually the payroll function. Payroll is easy to carve out from the rest of the business since it is usually independent of the other activities or functions within the Accounting Department.
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Our values
Grant Thornton prides itself on being a values-driven organisation and we have more than 38,500 people in over 130 countries who are passionately committed to these values.
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Global culture
Our people tell us that our global culture is one of the biggest attractions of a career with Grant Thornton.
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Learning & development
At Grant Thornton we believe learning and development opportunities allow you to perform at your best every day. And when you are at your best, we are the best at serving our clients
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Global talent mobility
One of the biggest attractions of a career with Grant Thornton is the opportunity to work on cross-border projects all over the world.
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Diversity
Diversity helps us meet the demands of a changing world. We value the fact that our people come from all walks of life and that this diversity of experience and perspective makes our organisation stronger as a result.
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In the community
Many Grant Thornton member firms provide a range of inspirational and generous services to the communities they serve.
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Fresh Graduates
Fresh Graduates
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Students
Whether you are starting your career as a graduate or school leaver, P&A Grant Thornton can give you a flying start. We are ambitious. Take the fact that we’re the world’s fastest-growing global accountancy organisation. For our people, that means access to a global organisation and the chance to collaborate with more than 40,000 colleagues around the world. And potentially work in different countries and experience other cultures.
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Experienced hires
P&A Grant Thornton offers something you can't find anywhere else. This is the opportunity to develop your ideas and thinking while having your efforts recognised from day one. We value the skills and knowledge you bring to Grant Thornton as an experienced professional and look forward to supporting you as you grow you career with our organisation.
Digital transformation has been a buzzword in the business community for years now, and its importance was emphasized when the COVID-19 pandemic hit. As COVID-19 affects businesses globally, business entities must find ways to continue their operations despite the government restrictions that were enforced to ensure public health and safety. Accordingly, for some companies COVID-19 became the main driver behind their digital transformation journey.
Having a computerized accounting system is vital in a company's digital transformation. However, when I tell our clients, especially foreign clients, that they need to secure from the BIR (Bureau of Internal Revenue) a "permit to use" (PTU) a computerized accounting system (CAS) beforehand, they observe that this is not a common practice in other countries. Other countries do not require registration of CAS while others only need to wait for the system to be accredited; once the accounting system is approved, all companies using such a system no longer need to secure permit to use.
In the Philippines, however, there is a two-step process before a taxpayer can use a CAS. First, the CAS must be accredited, and second, the company will use it needs to secure a PTU the accredited CAS.
Securing PTU begins with submitting an application with a number of documentary requirements.The CAS will then be scheduled for a system demonstration, which involves a walk-through of the CAS. Most of the time, getting on the system demonstration schedule is a challenge considering the volume of the applications that the BIR technical team is processing. After the system demonstration, taxpayer-applicants must address the issues or concerns, if any, identified by the BIR-evaluators. Afterwards, upon recommendation of the technical working group (TWG), the CAS accreditation will be approved by the Accreditation Board, and finally, the PTU will be issued. Timeline for securing a PTU could take a year or more.
Fortunately, in February last year, all taxpayers with pending applications for PTU were relieved when the BIR issued Revenue Memorandum (RMC) No. 10-2020. In lieu of PTU, the TWG Secretariat of the concerned Revenue District Office (RDO) is to issue an Acknowledgement Certificate (AC) within three days from the submission of all documentary requirements enumerated in the RMC. However, there is confusion on whether it also covers new applications filed after the effectivity of RMC No. 10-2020.
Finally, we could say goodbye to PTU. Recently, the BIR issued RMC No. 5-2021, which provides for a simplified registration process for the CAS, computerized books of account (CBA) and/or its components, including electronic storage system (ESS), middleware and other similar systems (collectively referred to as “system”). This RMC supersedes the provisions of RMC No. 10-2020 and certain portions of Revenue Memorandum Order (RMO) No. 29-2002.
As provided under RMC No. 5-2021, all taxpayers intending to use CAS, CBA and /or its components, including ESS, middleware and other similar systems, are not required to secure PTUs. They are, however, still required to register the System by submitting to the RDO where the taxpayer is registered all the documentary requirements as provided under Annex “A” of the RMC. These documents include the following:
- Sworn statement with attached duly accomplished summary of system description, commercial invoice/receipt, document description, among others;
- Sample print-out of principal and supplementary receipts/invoices compliant with Revenue Regulations (RR) No. 16-2018 and other accountable forms that will be used;
- Printed copy of audit trail;
- Standard functional and technical requirements; and
- Certification from the purchasing company allowing the taxpayer to use the same system, in case the license of the software to be used is under the name of the parent or affiliate.
On the other hand, the RDO must issue an AC within three days upon submission of complete documentary requirements. A system demonstration or pre-evaluation is no longer required prior to the use of the system. A post-evaluation will be conducted by the RDO to determine the compliance of the system with the standard set forth in Annex B of the RMC. Failure to comply with the standard will lead to the taxpayer-user incurring penalties provided under the existing regulations. Hence, it is important for the taxpayers to ensure that their CAS comply with the standard.
Annex B requires that the system reflect certain details in the printout and electronic copy of the books of account, financial statements and other system-generated reports. Among these items are the registered address where such reports are generated and the phrase “VAT REG TIN” or “NON-VAT REG TIN”, whichever is applicable, followed by the nine-digit tax identification number (TIN) plus the branch code of the taxpayer. I believe these details are not necessary since the taxpayer name should suffice. I agree that those details should be required in the invoices and receipts, but not in the books of account and other system-generated reports. What is important is to ensure the credibility of the reports.
On the other hand, one of the common concerns of taxpayers using CAS is whether all enhancements made in the system require registration. At last, this was clarified in the RMC.
The RMC specifically provides that the new registration is required only if there are “major” system enhancements. Major enhancements are those that have a direct impact on the financial aspect of the system, which include but not limited to the following:
- Change in the functionality of the system:
- Addition or removal of modules or submodules within the system;
- Change in the system/software version or release number; and
- All other enhancements deemed major system enhancements based on the recommendations of the technical evaluators after the comparative functionalities of the old and upgraded system were presented by the taxpayer.
In case of “minor” system enhancement/s, the taxpayer must submit a written notification to its RDO stating minor enhancements on the system. Minor enhancements include user interface modification, bug fixes and performance improvements, among others.
The effects of the pandemic continue to unfold. New of strains of the COVID-19 virus have been discovered in other countries and Japan declared last week its second COVID state of emergency. Accordingly, business entities should continue to find ways to ensure that their operations, including back-office supports, continues in case more drastic government restrictions are again be enforced to ensure public health and safety. Hence, the streamlined policies for the registration of CAS represent a welcome development to all taxpayers adopting to it. I would hope they can all fully implement their CAS before the next lockdown (but of course, I’m still praying we do not come to that point).
Let's Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.
Edward D. Roguel is a partner of the Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd. For comments and inquiries, please email pagrantthornton@ph.gt.com.
As published in BusinessWorld, dated 12 January 2021