08/02/2026
WHAT ARE AUDITED FINANCIAL STATEMENTS (AFS)
Audited Financial Statements (AFS) are more than just numbers on paper. They are official, legally recognized financial reports that present a company’s financial position, performance, and cash flows, examined and verified by an independent professional in accordance with Philippine Standards on Auditing (PSAs) and Philippine Financial Reporting Standards (PFRS).
An AFS is commonly required for:
SEC submissions
BIR filings and tax clearances
Bank loans and credit facilities
Investors, joint ventures, and due diligence
Business valuations, mergers, and acquisitions
Under Philippine law, an Audited Financial Statement is only valid and legally binding if it is signed by:
✔️ A Certified Public Accountant (CPA)
✔️ Who is duly registered and in good standing
✔️ And accredited by the Board of Accountancy (BOA)
Without BOA accreditation, the audit report has no legal effect, regardless of experience or intent.
A CPA–Lawyer brings a distinct advantage:
Ensures compliance not only with accounting and auditing standards, but also with tax laws, corporate laws, and regulatory requirements
Anticipates legal risks arising from misstatements, disclosures, or non-compliance
Strengthens your AFS against BIR assessments, SEC scrutiny, and legal challenges
Provides credibility that banks, investors, and regulators recognize immediately
In short:
📌 A CPA ensures technical accuracy
📌 A BOA-accredited CPA ensures legal validity
📌 A CPA–Lawyer ensures legal protection and strategic compliance
Your AFS is not just a report — it is a legal document.
Make sure it is prepared, audited, and signed by professionals who are qualified, accredited, and accountable under the law.
If your business requires AFS that is defensible, compliant, and respected by regulators, choose the right professional from the start.
Accuracy is compliance. Compliance is protection. Protection is good business.
