SEC eases audit rules for sub-P3M entities

The Securities and Exchange Commission (SEC) wants to exempt more corporations from the mandatory submission of audited financial statements, in a bid to further reduce compliance costs for micro, small, and medium enterprises (MSMEs).

- By JAMES A. LOYOLA

In a policy paper submitted to the Department of Finance (DOF) on Oct. 28, the SEC recommended that corporations with total assets or liabilities not exceeding P3 million be required to submit annual financial statements (FS) certified under oath by their treasurer or chief financial officer (CFO) in lieu of audited FS.

"We have repeatedly said that MSMEs are the backbone of the Philippine economy, which is why the SEC remains committed to implementing measures that will foster a business environment that is easier to navigate for our budding entrepreneurs," SEC Chairperson Francis Lim said.