Building trust

The financial statement audit has never been more important. There is stronger clamor for good corporate governance and greater reliability of financial reports. This has influenced reforms in the regulatory landscape and significant changes in financial reporting standards.

As a network firm of PricewaterhouseCoopers, Isla Lipana & Co. is at the forefront of changes in the international and local accounting and auditing standards. The impact of the changes is embedded in our audit methodology; and we ensure the understanding of the effects on our clients.

We apply the full rigor of our global audit methodology ("PwC Audit") to our clients and tailor it to the size and nature of their business. This methodology provides a robust assurance process that is of global standards.

We adhere to the PwC independence rules which are generally more stringent than local independence rules.

Risk based, top down approach

Our risk based, top down audit approach provides the necessary framework that increases audit effectiveness and efficiency, and clearly responds to a client’s needs. We obtain a thorough understanding of the client’s business and industry, the internal control environment, overall business objectives and the risks associated with those objectives.

Combining these factors with our independently formed expectations, we focus on the risks that will impact on financial reporting and our audit responsibilities. We plan and perform assurance work so that the audit risks will be limited to an acceptable level that, in our professional judgment, is appropriate to express an opinion on the financial statements.

As external auditors, we have a role to play in good corporate governance because we interact with the audit committee. Some of the more important benefits of our interaction are:

• For those in charge of corporate governance – we provide fresh perspectives towards best practices in corporate reporting and governance useful in discharging governance responsibilities and building public trust.
• For those in charge of operations and administration – we enhance their sense of responsibility and ownership of day-to-day processes with the improved internal control environment as a result of the audit.