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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
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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.
Empowering taxpayers during tax assessments
10 Mar 2020March is International Women’s Month; we are celebrating the contributions of women to society, upholding women’s rights, and advocating women empowerment.
Speaking of empowerment, the Bureau of Internal Revenue (BIR) recently issued Revenue Memorandum Circular (RMC) No. 15-2020, directing all revenue officials and employees to provide a printed copy of the procedures in a tax assessment. RMC No. 15-2020 intends to inform taxpayers on the proper procedures in responding to a deficiency tax assessment arising from the conduct of an audit or investigation. Printed guidelines detailing the procedures shall be furnished to the taxpayer; and the revenue officer is required to fully explain the contents to the taxpayer. The RMC was issued in line with a BIR campaign to empower taxpayers with a clear understanding of their rights to due process on administrative protests at the beginning of the audit or assessment.
The BIR’s efforts in highlighting taxpayers’ rights to due process were lauded when the Bureau issued Revenue Regulations (RR) No. 7-2018, restoring the provision on Notice of Informal Conference (NIC). The provision was restored to give the taxpayer an opportunity to present his or her side of the case. The NIC stage provided in RR No. 12-99 was previously revoked by RR No. 18-2013.
During the effectivity of RR No. 18-2013, no other discussion could take place after the Letter of Authority (LoA) is served to the taxpayer and the documents are provided to the BIR. After the documents are evaluated and the BIR determines that there is sufficient basis to assess the taxpayer for deficiency tax, a Preliminary Assessment Notice (PAN) is issued. The taxpayer was given only 15 days to respond, after which a Final Assessment Notice (FAN) was promptly issued and the taxpayers would either need to pay the assessment or file an administrative protest. After five years of effectivity, the BIR recognized that RR No. 18-2013 was demanding and that doing away with the NIC stage made the assessment process more challenging instead of more efficient.
As a tax practitioner handling mostly assessment cases, I have come to appreciate the restoration of the NIC in RR No. 7-2018. Discussing the itemized audit finding in an assessment is not easy with the constant, back-and-forth discussions with the BIR on the factual and legal basis of the taxpayer’s contentions. The issuance of RMC No. 15-2020 bolstered the purpose of RR No. 7-2018: to give the taxpayer the opportunity to present their case and exercise their right to due process. RMC 15-2020 prescribes how taxpayers are to be informed of the procedures in responding to the issuance of deficiency tax assessments arising from the conduct of an audit or investigation. Printed guidelines, as provided in Annex A of the RMC, must be furnished to the taxpayer during the Discussion of Discrepancy stage of the assessment. More importantly, Annex A also clearly identifies the type of assessment documents that must be issued by the BIR and the proper BIR official who must issue such assessment document.
Any findings of discrepancies or disallowances that may lead to deficiency assessments that were discovered during the audit or investigation by the BIR are to be sent in a “Notice of Discrepancy.” The contents of the Notice must be explained by the BIR to the taxpayers or their authorized representative during the Discussion of Discrepancy. If the taxpayer agrees with the audit findings as presented and explained, the taxpayer may sign the “Agreement Form” and pay the deficiency taxes, including penalties and interest.
Currently, the BIR issues the NIC and, if the taxpayer does not contest the findings, the amount contained in the NIC will be settled by the taxpayer. I have encountered several cases wherein the Notice of Informal Conference was sent accompanied by some sort of agreement form, where options were presented to the taxpayer: if the taxpayer fully subscribes to the findings, if the taxpayer does not subscribe, or if the taxpayer wants to avail of other administrative and legal remedies.
Aside from the NIC, discussions between the taxpayer and the BIR are encouraged in order to duly inform the taxpayer of their assessment. Based on my experience, there are many issues that can be resolved at this stage, considering the BIR and the taxpayer can freely discuss issues that can be easily resolved. In cases where an Improperly Accumulated Earning Tax (IAET) is being assessed, for example, the taxpayer can present proof that its ultimate parent is a publicly held company or that a loan agreement exists, which restricts the company from declaring dividends unless the loan is paid. There are also other items in the assessment that can be easily cancelled if the proper explanation and evidence is presented, such as professional expenses that were not subject to withholding tax, because they were paid to General Professional Partnerships or certain compensation expenses that were not subject to withholding tax on compensation, because they were paid to minimum wage earners.
If these issues are properly explained and resolved during the discussion stage, there is no need to include these items in the deficiency assessment. The BIR and the taxpayer can concentrate on the more contentious items. More often than not, the taxpayer gets intimidated by the size of the deficiency assessment presented in the BIR’s initial findings; thus, making the task seem insurmountable and hopeless.
The new circular (RMC 15-2020) will be appreciated if the contents of Annex A are fully discussed with the taxpayer and both parties can properly follow the procedures. It is when the BIR deviates from the established procedures that the taxpayer gets lost and is unable to decide on a course of action. One can hope that the RMC will achieve its true purpose of reinforcing the right to due process of taxpayers. Sometimes, the taxpayer is powerless to contend with the discretionary powers of the BIR during the assessment and is left with no recourse in the event such discretion is exercised. To be empowered with the information given and explained during the initial stage is indeed a welcome step forward. I hope that with the issuance of the RMC the procedures outlined are followed, giving both parties clarity and guidance on the entire assessment process.
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.
Gemmalu O. Molleno-Placido is a senior associate of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.
As published in BusinessWorld, dated 10 Marc 2020