Regulatory Alerts2026-01-20
SEC MC No. 04, Series of 2026: Amendments to SRC Rule 68 Audit Threshold
The Securities and Exchange Commission of the Philippines issued Memorandum Circular No. 4, Series of 2026, to raise the audit threshold for corporations from P600,000 to P3,000,000 in total assets or liabilities. This amendment exempts qualifying entities from mandatory audits, requiring them instead to submit financial statements accompanied by a Statement of Management's Responsibility signed under oath. The revised definitions for Small and Micro Entities align with national MSME policies, with the new threshold applying to fiscal years ending on or after December 31, 2025.
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