acknowledgement letter or equivalent from predecessor auditors • The firm or its auditor may not consider necessary information and circumstances thoroughly and may be exposed to the risk of accepting or continuing
% KPPH Low High After-tax cost of debt (rd ) 6.80% 6.80% (corporate bond yield + country specific spread for Philippines) Cost of equity (re ) 17.10% 18.20% (preliminary cost of equity + country risk
. However, other costs with regard to holding a significant stake might still be high. In many instances institutional investors are prevented from doing this because it is beyond their capacity or would
Human resources are significant factors to audit quality. Accordingly, retaining competent and capable human resources in the audit firms’ rosters will contribute to high-standard audit quality. High
their needs for advisory services of financial planning to attain targeted savings, do not have access to these services. The existing advisory services are catering primarily to high net worth investors
associated risks that are too high. In a situation where a risk level is higher than normal or there is a potential conflict of interest or a possible lack of independence, the audit firms must put in place
market Moderate to high exposure to the capital market Low to moderate exposure to the capital market Low exposure to the capital market Figure 1: The firm-level inspection results, categorized by risk
internal audit plan in place by reviewing all departments’ operational risk management plans and prioritising them according to their risk level. The audit will focus on high risk/high impact areas and will
directions that focus on effective, timely and proactive integrated risk management (IRM), internal operation efficiency, maximized resource utilization, along with better IT systems, to ensure that we will