A Philippine corporation needs audited financial statements when it crosses an SEC threshold, a BIR threshold, or both. Chamberlain is not an audit firm and does not sign audit opinions. We prepare your books, schedules, and supporting documents for an independent CPA firm, and we coordinate the audit and the filings that follow.
When your company needs an audit
Two sets of rules can apply, and they use different tests.
SEC rule. SEC Memorandum Circular No. 4, series of 2026, amended Revised SRC Rule 68. Stock and non-stock corporations with total assets or total liabilities of more than P3,000,000 must submit audited financial statements. Smaller companies file unaudited statements with a sworn Statement of Management’s Responsibility. The amended threshold applies to fiscal years ending on or after December 31, 2025. According to Grant Thornton Philippines’ summary of the rule, the test is total assets or total liabilities.
BIR rule. Section 232(A) of the National Internal Revenue Code, as amended by RA 10963 (TRAIN), requires books to be audited and examined yearly by independent CPAs where gross annual sales, earnings, receipts, or output exceed P3,000,000. These taxpayers must also attach an Account Information Form to their income tax returns.
Revised Corporation Code. RA 11232 Section 177(a) also requires annual financial statements audited by an independent CPA. It allows statements with total assets or total liabilities under P600,000 to be certified under oath instead. That figure does not match the SRC Rule 68 threshold above. Confirm with your auditor which figure governs your fiscal year.
What the auditor needs from you
Auditors usually start with a request list. Expect to provide:
- The trial balance and general ledger for the year
- Bank statements and reconciliations for every account
- Receivable and payable schedules, with aging
- The fixed asset register and depreciation schedule
- Payroll registers and remittance records
- Filed BIR returns for the year, reconciled to the ledger
- Related-party transactions and the agreements behind them
- Board resolutions for major transactions and loans
- Prior-year audited statements
Records that were never registered or kept properly slow the audit down. See our guide to books of accounts in the Philippines for the record-keeping rules.
How Chamberlain prepares the file
Our work happens before and around the audit:
- Books review. We check that your books are complete and up to date before the auditor sees them.
- Schedules. We prepare the supporting schedules on the request list and reconcile the ledger to your filed returns.
- Coordination. We send the package to your CPA firm, answer their questions, and track open items until they close.
- Filing support. After the audit is signed, we prepare the SEC and BIR submissions.
We do not perform the audit, form an opinion, or sign the audit report. The CPA firm does that. For ongoing ledger and tax support, see our accounting and bookkeeping services.
Filing the audited statements
SEC. Audited statements go to the SEC each year with your General Information Sheet. According to Triple Consulting’s summary, SEC filing has been electronic through eFAST as of 2024. Our guide to SEC annual compliance, GIS and AFS covers the filing calendar.
BIR. According to Triple Consulting’s summary of BIR rules, audited statements are submitted through the eAFS portal on or before the 15th day of the fourth month after the fiscal year ends. For calendar-year companies, that is April 15.
Common mistakes
- Checking only one SEC test. The SEC test uses assets or liabilities, so a company above P3,000,000 on either measure is in scope.
- Assuming the BIR and SEC tests match. The BIR test uses gross annual sales, which can put a company in scope even when the SEC test does not.
- Starting in the last weeks before the deadline. Auditors need time to ask questions and resolve differences.
- Letting the ledger drift from filed returns. Differences between the ledger and the returns are the most common cause of audit delays.
Next step
If your company may cross either threshold this year, start with a readiness review. We will check your books, list the schedules you need, and tell you what to fix before the auditor arrives. Contact Chamberlain to book one, or review our tax compliance services to see how filing support fits in.
Frequently asked questions
Does Chamberlain audit my company or sign the audit report?
No. Chamberlain is not an audit firm and does not sign audit opinions. Chamberlain prepares the books, schedules, and supporting documents, and coordinates with an independent CPA firm, which performs the audit and signs the report.
When does a Philippine corporation need audited financial statements?
Under SEC rules, stock and non-stock corporations with total assets or total liabilities above P3,000,000 must file audited statements (SEC Memorandum Circular No. 4, series of 2026). Under Section 232(A) of the NIRC, as amended by RA 10963, books must be audited yearly where gross annual sales exceed P3,000,000. Confirm with your auditor how the P600,000 figure in RA 11232 Section 177(a) applies.
Is the BIR threshold the same as the SEC threshold?
No. The SEC test uses total assets or total liabilities. The BIR test uses gross annual sales, earnings, receipts, or output. A company can fall under one test and not the other, so check both.
When are audited financial statements due to the BIR?
According to Triple Consulting's summary of BIR rules, they are due on or before the 15th day of the fourth month after the fiscal year ends, which is April 15 for calendar-year companies. BIR circulars change the schedule, so confirm the deadline for the year you are filing.
What should we have ready before the auditor starts?
A trial balance, general ledger, bank reconciliations, receivable and payable schedules, a fixed asset register, and a reconciliation of your filed returns to the ledger. Chamberlain prepares these schedules and tracks the auditor's open requests.