The Securities and Exchange Commission (SEC) has received an “unmodified opinion” from the Commission on Audit (COA) for the fifth consecutive year, reflecting its efforts to ensure transparency and accountability in financial management.
In an independent auditor’s report dated May 31, State Auditor Concepcion C. Reyes rendered an “unmodified opinion,” also known as an “unqualified opinion,” on the fairness of the presentation of the Commission’s 2022 financial statements.
“In our opinion, the accompanying statements present fairly, in all material respects, the financial position of the SEC as at December 31, 2022, and its financial performance, changes in net assets/equity, cash flows and notes to financial statements, in accordance with International Public Sector Accounting Standards (IPSASs),” the report read.
The audit was conducted in accordance with the International Standards of Supreme Audit Institutions, and in order to ascertain the level of assurance that may be placed on the management’s assertion on the financial statements; determine the propriety of transactions; recommend improvement opportunities; and determine the extent of the implementation of prior years’ audit recommendations.
An unmodified opinion is given when auditors conclude that the financial statements as a whole are free from material misstatements, which could arise from either error or fraud, according to the IPSAS.
The SEC also received an unqualified opinion on the fairness of presentation of its financial statements for 2018, 2019, 2020, and 2021, making this the longest streak of unqualified opinions the Commission has received over the past decade.
“As the overseer of the corporate sector, it is of paramount importance that the SEC serve as a role model in financial accountability and transparency,” said SEC Chairperson Emilio B. Aquino, the first CPA-lawyer to lead the Commission.
“This five-year streak of unmodified opinions from COA show the Commission’s unrelenting commitment to high standards of reporting and the prudent and judicious use of resources, as part of our efforts to champion good governance,” he added.
The SEC has continuously advocated for good governance and transparency in the use of financial resources, in order to maintain the people’s trust and confidence as the country’s corporate registrar and regulator of the capital markets.
Upon the nomination of COA, the SEC was named an Outstanding Accounting Office by the Association of Government Accountants of the Philippines in 2022. Mr. Aquino was likewise given the Accountancy Centenary Award of Excellence during the accountancy profession’s 100-year anniversary this year.
The Commission has consistently received the 3G Awards for Good Governance and Transparency by London-based Cambridge International Finance Advisory from 2021 to 2023. It also received the 3G Awards for Transparency in 2022, as well as the 3G Awards for Championship in ESG Practices in 2023.
In 2022, the SEC was conferred the International Standards of Accounting Reporting (ISAR) Honours by the United Nations Conference on Trade and Development (UNCTAD), in recognition of its efforts and contributions to promote sustainability reporting.