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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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Sustainability
At P&A Grant Thornton sustainability is at the core of our mission. We are committed to fostering a healthier planet through innovative practices that reduce our environmental footprint, promote social responsibility, and ensure economic viability for future generations.
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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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Behind the Numbers: People of P&A Grant Thornton
Discover the inspiring stories of the individuals who make up our vibrant community. From seasoned veterans to fresh faces, the Purple Tribe is a diverse team united by a shared passion.
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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.
Overview of 5 Common Transfer Pricing Methods
Transfer pricing refers to the pricing of goods, services, or intangibles transferred between and among related entities. It determines how profits are allocated among different jurisdictions by applying the arm’s length principle, which ensures that transactions between related parties are priced as if they were between independent entities.
Below are the five (5) commonly used transfer pricing methods:
1. Comparable Uncontrolled Price (CUP) Method
The CUP method compares the price charged in a controlled transaction with the price charged in a comparable uncontrolled transaction under similar conditions. It is considered one of the most direct and reliable methods when high-quality comparables are available, as it directly assesses pricing based on market benchmarks.
2. Resale Price Method (RPM)
The RPM assesses transfer pricing by starting with the resale price of a product that a related party sells to an independent entity. From the resale price, an appropriate gross margin based on comparable uncontrolled transactions is subtracted to determine the arm’s length price. This method is commonly used for distribution activities where the reseller adds limited value to the product.
3. Cost Plus Method
CPM begins with the costs incurred by a supplier in a controlled transaction and adds an appropriate markup to reflect an arm’s length profit, where the markup is typically based on comparable transactions between independent parties. CPM is commonly used in manufacturing or service arrangements where the supplier performs significant value-adding functions.
4. Transactional Net Margin Method (TNMM)
TNMM examines the net profit margin relative to an appropriate base (e.g., costs, sales, assets) that a taxpayer realises from a controlled transaction. This method uses the indicator of profit level in comparable independent transactions to determine the net operating profit of related party transactions.
TNMM assesses the arm’s length nature of a controlled transaction by examining the net profit margin relative to an appropriate financial base, such as costs, sales, or assets, earned by the taxpayer, where the margin is compared to those achieved in comparable uncontrolled transactions. TNMM is widely used due to its flexibility and the availability of reliable financial data.
5. Profit Split Method
PSM allocates the combined profits from intercompany transactions based on the relative value of each party’s contribution. It is particularly useful in cases involving highly integrated operations or when both parties contribute unique and valuable intangibles. In such scenarios, separate testing of each party’s results is impractical, making a joint analysis more appropriate to reflect an arm’s length outcome.
The selection of a transfer pricing method should be based on its reliability and relevance to the specific facts and circumstances of the transaction. While the Bureau of Internal Revenue (BIR) does not mandate a specific method, taxpayers are expected to adopt the approach that most accurately reflects an arm’s length result. This requires the use of high-quality data and sound economic analysis to support the chosen method.
(Chapter III, Revenue Audit Memorandum Order (RAMO) No. 1-2019)
Taxpayers must be able to justify their choice of transfer pricing method through proper documentation. Maintaining comprehensive and well-organised records that clearly explain the rationale behind the selected approach is essential for demonstrating compliance with the arm’s length principle. As transfer pricing remains a key focus of tax audits, it is crucial for taxpayers to stay informed, maintain robust documentation, and proactively manage their compliance obligations.