Rules Prescribing Penalties for Submitting Different Sets of Financial Statements

January 2, 1995 RULES PRESCRIBING PENALTIES FOR SUBMITTING DIFFERENT SETS OF FINANCIAL STATEMENTS With the end in view of fully disclosing the financial condition of corporations to the investors and the general public in connection with the audited financial statements submitted by corporations, the Commission, pursuant to P.D. No. 902-A, as amended and the Corporation Code, promulgates the following: llcd 1. The corporation which caused the preparation of financial reports which do not bear its true and correct financial condition shall be subject to: a) First Offense Penalty of P5,000.00 b) Second Offense Penalty of P10,000.00 c) Third Offense suspension/revocation of certificate of resignation. 2. The auditing firm which examined and knowingly rendered reports which do not reflect the true and correct financial condition of companies shall be subject to: a) First Offense P3,000.00 b) Second Offense P8,000.00 c) Third Offense suspension/revocation of certificate of registration of the firm and referral to Professional Regulation Commission for appropriate action against the signing auditor. These rules shall take effect fifteen (15) days after publication in a newspaper of general circulation in the Philippines. (SGD.) ROSARIO N. LOPEZ Chairman