R.G. Manabat & Co., the local partner of international accounting firm KPMG, said on Monday it was seeking more information about the alleged infirmities in the financial records of logistics firm 2Go which it audited for the fiscal years 2015-2016.
In a statement, R.G. Manabat & Co. said it was “confident” it had performed the audits of 2GO Group Inc. “in compliance with the Philippine Standards on Auditing.”
The logistics firm – now jointly owned by Davao City-based businessman Dennis Uy and the SM group – disclosed over the weekend a substantial downward restatement of its earnings for 2015 and 2016 of approximately P1 billion for each fiscal year.
“The firm has requested, but has yet to receive, from 2GO Group the details on the restatement of its 2015 and 2016 financial statements,” said the audit firm, whose senior partners were former members of SGV & Co., the firm tasked by 2G)’s new owners to conduct the so-called “due diligence” audit.
Third-party accounting experts opined that the restated items in question, in particular, the treatment of non-cash receivables on the books of the logistics firm might have been treated liberally by KPMG and conservatively by SGV because of the different roles they played in examining the firm’s books.
Nonetheless, KPMG stood by its audit findings, citing its adherence to accounting standards – standard language used by audit firms to preface their findings.
“Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements,” KPMG said. /atm