The Philippine Securities and Exchange Commission published its 2026 Oversight Assurance Review Public Inspection Report, covering inspections conducted from 2022 to 2025 at six major audit firms. These firms audit about 87% of publicly listed companies and represent about 99% of Philippine Stock Exchange market capitalization. The review found more firm-level issues during the transition to the Philippine Standard on Quality Management 1, but improved performance in individual audit engagements. Firm-level findings concerned areas including ethical requirements, monitoring and remediation, governance and risk assessment. Engagement improvements reflected stronger consultation, review and audit-file processes, although accounting estimates, audit sampling and group audits require further attention. The commission encouraged robust root cause analysis and greater use of automated tools, artificial intelligence, data analytics and cloud technology, and highlighted sustainability reporting requirements that become mandatory for certain entities in 2026.
2026-07-10Philippine Securities and Exchange Commission
Philippine Securities and Exchange Commission identifies firm-level audit gaps despite improved engagement performance
The Philippine Securities and Exchange Commission found increased firm-level issues but improved engagement performance in inspections of six major audit firms conducted from 2022 to 2025. It called for improvements in accounting estimates, audit sampling and group audits, alongside stronger root cause analysis and greater use of audit technology.