Tacloban City, Philippines 0995 398 9482 info@aaccocpas.com
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Advisory & Business Consultancy in Tacloban City

Practical advice for growing and scaling — grounded in numbers, delivered with strategy.

What the service covers

  • Business policy making. Drafting and revision of accounting, finance and operating policies and manuals, so that practice is written down and consistently applied.
  • Financial due diligence. An examination of a business being acquired, invested in or financed: quality of earnings, working capital, debt, commitments and contingencies.
  • Risk management. Identification and assessment of business risks, and the design or evaluation of the internal controls that answer them.
  • Strategic management. Business plans, budgets, forecasts and feasibility studies that put figures behind a proposed direction.

Standards that apply

Advisory engagements are governed by the Code of Ethics for Professional Accountants in the Philippines, including its requirements on objectivity and confidentiality. Where an engagement calls for assurance, it is performed under the Philippine Standards on Assurance Engagements. Where the client and a third party need specific procedures performed and the findings reported, it is performed as an agreed-upon procedures engagement under PSRS 4400 (Revised).

Who needs it

  • Owners planning an expansion, a new branch or a new line of business.
  • Buyers and investors who need an independent view of a target before committing.
  • Boards and owners formalising how a growing or family-run business is governed and controlled.
  • Borrowers asked by a bank for projections or a feasibility study.
  • Regulated entities strengthening their risk management and internal control.

How an engagement runs

  1. Scoping. We agree the question to be answered, the information available, the deliverable and the timetable, and record them in an engagement letter.
  2. Fact-finding. Interviews with management, a walk-through of the processes concerned, and a review of the records.
  3. Analysis. The figures are tested and the findings set against the question the engagement was meant to answer.
  4. Draft report. Findings and recommendations are discussed with you before they are finalised.
  5. Final report. The written report is delivered, and where agreed we assist with putting the recommendations into practice.

What a report contains

Every report states the question it was asked to answer, the information it relied on, the work performed and the limits of that work. Findings are separated from recommendations, so that a reader can tell what was observed from what is advised. Figures are traced to their source, and the assumptions behind any forecast or projection are stated so that they can be challenged.

  • Policy manuals are delivered as working documents, with the forms and approval limits that go with each policy.
  • Due diligence reports set out the adjustments to reported earnings and net assets, with the matters a buyer may want covered in the purchase agreement.
  • Risk and control reviews list each risk, the control that answers it, and the gaps found.
  • Plans and feasibility studies carry the projected financial statements and the assumptions on which they rest.

Frequently asked questions

What does a financial due diligence report contain?

The scope is set by the transaction. It commonly covers the quality of reported earnings, normal working capital, debt and debt-like items, tax exposures, and commitments and contingencies that do not appear on the balance sheet.

Our bank has asked for a feasibility study. What will it need?

Usually the project description and cost, the market and operating assumptions, projected financial statements over the term of the loan, and the resulting debt service capacity. The bank’s own checklist governs.

How long does an engagement take?

It depends on the scope and on how quickly information is made available. The timetable is fixed in the engagement letter before work begins.

Is the information we provide kept confidential?

Yes. Confidentiality is a requirement of the Code of Ethics, and the engagement letter states who may receive the report.

Can you advise us if you are also our auditor?

Some advisory services are compatible with an audit and some are not. We assess the threat to independence before accepting either engagement.

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