SEC eyes stricter audit compliance to boost corporate governance

The Securities and Exchange Commission (SEC) is pushing for stricter compliance with audit quality and financial reporting to improve local corporate governance.

SEC Chairperson Emilio B. Aquino reiterated the agency's commitment to ensuring companies strictly adhere to accounting policies and maintain audit quality.

During an International Forum of Independent Audit Regulators (IFIAR) inspection workshop in Mauritius, SEC officials highlighted challenges in the Philippines related to auditing and financial reporting.

These challenges include instances of companies misapplying accounting policies, particularly in revenue recognition and measurement.

Auditors were also noted for failing to properly evaluate whether accounting policies comply with local reporting standards.

The SEC stated that these issues emphasize the need for stricter oversight and enhanced auditor training to ensure professional skepticism and due care.