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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.
Understanding 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.
There are two types of CUP Method:
1. Internal CUP Method – Applicable if the Company transacts comparable transactions with both related and unrelated parties. This means the company compares the price it charges in a controlled transaction to the price it charges in a similar transaction with an unrelated party, using the company’s internal data. When the internal data is consistent and the transactions are highly comparable, it is considered more reliable than using external CUP.
2. External CUP Method – Applicable if the Company uses comparable data of transactions entered into between two unrelated parties. In other words, the company compares its related-party price to market prices from other companies doing similar transactions.
Between the two, external CUP is more difficult to apply due to the usual lack of publicly available data on comparable third-party transactions.
Comparability Factors to determine if uncontrolled transactions are comparable to a controlled transaction:
1. Characteristics of the goods or service transferred – Goods or services should be highly similar like in physical feature, quality and grade of the product, functionality and intended use and scope and complexity of the service.
2. Functional Analysis – It examines the functions performed (i.e., Distribution and Research and Development), assets used (i.e., Trademarks and Buildings), and risks assumed (i.e., Operational risk and Credit risk) by each company involved in a controlled transaction.
3. Contractual Terms – it refers to the specific conditions agreed upon by the parties involved like payment timelines and delivery conditions. These must be matched between controlled and uncontrolled transactions.
4. Economic Circumstances – It refers to the market and business conditions under which transactions take place. These are external factors such as but not limited to geographic location, economic cycles, market level, and timing of the transaction like seasonal demand and currency fluctuations.
5. Business Strategies – It refers to the business strategies involved in a transaction that may justify differences in pricing between controlled and uncontrolled transactions such as Product differentiation Strategy and Risk Management Strategy.
Advantages of the CUP Method
1. Simple and direct - compares actual controlled prices with comparable uncontrolled prices
2. Highly reliable- produces accurate result when comparable data is highly similar.
3. Flexible comparables- can use both internal and external comparable transactions.
4. Suitable for commodity transactions- works well with actual public market prices such as oil, metals, or grains where pricing is standardised and widely published.
Limitations and Challenges
1. Strict comparability requirement - it is challenging to identify a transaction that’s appropriately comparable to the controlled transaction.
2. Adjustment difficulties - making accurate and quantifiable adjustments can be complex to account for differences.
3. Market fluctuation sensitivity - harder to establish comparability without time-aligned data since prices may vary significantly over time or between markets.
4. Not suitable for highly differentiated products.
(Chapter II: Transfer Pricing Methods, OECD Transfer Pricing Guidelines, January 2022 and BIR RR No. 2-2013)
To ensure the use of CUP method is both accurate and compliant, it is crucial to find reliable comparable data and thoroughly evaluate the comparability factors. Where differences exist, adjustments should be made to improve comparability. Also, maintaining detailed documentation throughout the process is essential to support compliance and reduce tax risks.