The Philippine Securities and Exchange Commission represented the Philippines at the International Forum of Independent Audit Regulators (IFIAR) Inspection Workshop in Mauritius, positioning the event as part of its push to strengthen audit quality and financial reporting integrity. In a first-time presentation at the IFIAR workshop, the SEC’s Oversight Assurance Review inspection leaders co-presented with South Africa on revenue inspections, focusing on revenue as a critical audit area given the complexity of applying IFRS 15. Drawing on Philippine case studies, the SEC pointed to misapplication of accounting policies by companies in recognising and measuring revenue under the five-step model in Philippine Financial Reporting Standards 15, and highlighted instances where auditors did not properly evaluate whether those accounting policies complied with PFRS 15. The SEC emphasised the need for stricter oversight, enhanced auditor training, and stronger firm consultation policies and procedures, and referenced SEC Memorandum Circular No. 1, Series of 2024, which adopts PFRS and Philippine Interpretations Committee questions and answers as part of SEC financial reporting rules.
Philippine Securities and Exchange Commission 2025-03-13
Philippine Securities and Exchange Commission flags PFRS 15 revenue recognition shortcomings and calls for stronger audit oversight at IFIAR inspection workshop
The Philippine SEC joined the International Forum of Independent Audit Regulators Workshop in Mauritius to enhance audit quality and financial reporting integrity. Alongside South Africa, it highlighted issues in revenue inspections under IFRS 15, citing misapplications in accounting policies and inadequate auditor evaluations. The SEC urged stricter oversight, improved auditor training, and stronger consultation policies, referencing SEC Memorandum Circular No. 1, Series of 2024.