What you need to know
Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers (PwC), dismissed two partners involved in auditing the Maria Francesca Tan (MFT) Group of Companies and forfeited their benefits, according to SEC Commissioner Rogelio Quevedo. Quevedo also said criminal charges have been filed against the two partners, while Isla Lipana was fined P8 million by the SEC. The SEC later restored Isla Lipana's accreditation after the firm paid the penalty and expressed willingness to assist in prosecuting Tan and other MFT directors.
Key takeaways
- Two partners at Isla Lipana & Co. were dismissed and stripped of their benefits over their involvement in auditing the MFT Group.
- Criminal charges have been filed against the two dismissed partners.
- The SEC imposed an P8 million fine on Isla Lipana & Co. for audit irregularities.
- The SEC subsequently restored Isla Lipana's accreditation after the firm paid the penalty and pledged cooperation with the prosecution of MFT executives.
- The Department of Justice indicted the auditors for allegedly helping validate dividend revenues that prosecutors said contained significant misrepresentations.
By Eileen Mencias
Isla Lipana & Co., the Philippine member firm of PricewaterhouseCoopers (PwC), dismissed two partners involved in auditing the Maria Francesca Tan (MFT) Group of Companies and forfeited their benefits, a Securities and Exchange Commission official said.
SEC commissioner Rogelio Quevedo said criminal charges had been filed against the two partners, while Isla Lipana was fined P8 million.
“Binatawan nila, nilaglag nila. Naaawa nga ako, mga bata pa yun,” Quevedo said, referring to the firm’s action against the auditors.
Quevedo said criminal charges could only be brought against individuals, while the SEC’s sanctions against the accounting firm were limited to penalties.
He said the authority to revoke the professional licenses of certified public accountants and auditors rests with the Professional Regulation Commission.
The SEC had accused Isla Lipana and its auditors of irregularities in MFT’s audited financial statements. The Department of Justice later indicted auditors after finding they had allegedly helped validate dividend revenues used in financial statements that prosecutors said contained significant misrepresentations.
Isla Lipana previously said it would cooperate with authorities investigating MFT and maintained that MFT Group of Companies Inc. was its audit client. The firm also said it condemned fraud or bad faith against the public.
The SEC later restored Isla Lipana’s accreditation after the firm paid a penalty and expressed willingness to assist authorities in prosecuting Tan and other MFT directors.—Bilyonaryo.com
RELATED STORIES
