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  • Ybiernas, SGV, 2go, KPMG

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    Wayne Ybiernas
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    2GO Group appointed a new CFO and treasurer following adjustments to its reported net income for 2015-2016. A special audit found certain accounts in the previously audited financials required restatement, with 2GO's restated net income declining 90% in 2015 and 74% in 2016. The restatements were a commitment by the new management to raise corporate governance standards. KPMG RG Manabat, who audited the original statements, said the restatements related to management's judgments and estimates at the time of the audit. The restated financials came after an acquisition of 2GO's parent company, and

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    Ybiernas, Sgv, 2go, Kpmg

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    2GO Group appointed a new CFO and treasurer following adjustments to its reported net income for 2015-2016. A special audit found certain accounts in the previously audited financials required restatement, with 2GO's restated net income declining 90% in 2015 and 74% in 2016. The restatements were a commitment by the new management to raise corporate governance standards. KPMG RG Manabat, who audited the original statements, said the restatements related to management's judgments and estimates at the time of the audit. The restated financials came after an acquisition of 2GO's parent company, and

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    134 views2 pages

    Ybiernas, SGV, 2go, KPMG

    Uploaded by

    Wayne Ybiernas
    2GO Group appointed a new CFO and treasurer following adjustments to its reported net income for 2015-2016. A special audit found certain accounts in the previously audited financials required restatement, with 2GO's restated net income declining 90% in 2015 and 74% in 2016. The restatements were a commitment by the new management to raise corporate governance standards. KPMG RG Manabat, who audited the original statements, said the restatements related to management's judgments and estimates at the time of the audit. The restated financials came after an acquisition of 2GO's parent company, and

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    of 2

    Ybiernas, Wayne Kyler C.

    November 15, 2018


    BSA-5 AC 522 TTH 12:00-1:30 PM

    KPMG RG Manabat and 2GO Accounting Scandal

    1. 2GO Group Incorporated appointed a new chief financial officer and treasurer,
    following adjustments in its reported net income for 2015 and 2016. After a
    special audit, 2GO also reported a restatement of its financial performance for
    2015 and 2016, as well as the unaudited financial statements for the 1st quarter
    of 2017.

    After the appointment of the new chief financial officer and treasurer, the
    company engaged SGV and Company to audit the company's balance sheet and
    income statement as of the closing date to ensure fair presentation of financial
    statements and establish accountabilities. The new 2GO president said the audit
    showed that certain accounts in the previously audited financials required
    restatement.

    In its special audit, 2GO reported its net income actually stood at P109.131
    million in 2015. This is a 90% decline from the P1.08-billion profit 2GO earlier
    reported in its 2015 annual report. For 2016, 2GO said in the disclosure that its
    restated net income is P344.035 million, 74% lower than what was reported in its
    2016 annual report.

    Dennis Uy, the newly-appointed president of 2GO said that the restatement is a
    commitment of the new management and board of directors to raise corporate
    governance standards in the company.

    Sharon Dayoan, the vice chairperson and head of audit of KPMG RG Manabat,
    said that the restatements that you now see in the news are essentially relating
    to items of judgment and estimates made by 2GO's management. When we did
    our audit, it was an audit on the judgment and estimates made by management
    at the time that we had to deliver our opinion.

    The restated financial statements came after SM Investments


    Corporation acquired a 34.5% stake in 2GO's parent company for $124.50
    million. Coincidentally, Manabat has also been an advisor to the board of SM
    Investments Corporation for good corporate governance since 2016.
    2.

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