Navigating the Maze: Management’s Role in External Audits In Philippines

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In the world of external audits in Philippines, the spotlight often shines brightly on auditors and their responsibilities. However, there is a significant player behind the scenes whose role is equally pivotal yet sometimes overlooked—the management of the company in Philippines being audited. In this article, we will explore on the extent of management’s involvement in ensuring the accuracy of audited financial statements in Philippines and examine the vital role that external auditors in Philippines play in preserving this accountability. The Power and Perils of Financial Statements in Philippines Financial statements in Philippines serves as a treasure trove of information, offering a snapshot of a company’s financial health. It wields considerable influence over the decisions of various stakeholders, including investors, creditors, government agencies and the public, in general. The accuracy of financial statements in Philippines is pivotal for making well-informed choices, underscoring their reliability as paramount. Financial Statements in Philippines

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3 Things You Should Know About Final Pay in the Philippines

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There are several reasons why employees choose to be separated from work, like looking for better opportunities, a better work environment, better salaries and benefits, or a role that best suits their passions. During times of separation of employees in their company, the payroll or human resources personnel are tasked with computing his or her final pay. This article tackles the things you should know and consider when verifying or making final payments to employees in the Philippines.  One of the items to consider in the computation of final pay is the addition of pro-rated 13th-month pay and other benefits. Employers are required to pay their rank-and-file employees a 13th-month pay benefit. However, this is not required for supervisory and managerial employees and is a company discretionary benefit. 13th-month pay is part of the non-taxable or exempt compensation income, particularly in the 13th-month pay and other benefits up to the

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2023 BAR EXAMINATIONS Remedial Law

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Rafaelle Beatrice filed an action for recovery of the sum of P2.5 million against Tess in the Regional Trial Court (RTC ) of Taguig City. Attached to the complaint was the promissory note, the check issued by Rafaelle Beatrice to Tess covering said amount, and a copy of the withdrawal slip of Tess from Banco de Otso-Rockwell Branch, Makati City. In her answer, Tess raised as her compulsory counterclaim the recovery of her attorney’s fees in the amount of P500,000 arising from the case, and a permissive counterclaim against Rafaelle Beatrice for rescission of a contract of sale involving an Arturo Luz painting valued at P2 million. Tess paid the filing fees of her permissive counterclaim. Are the counterclaims within the jurisdiction of RTC of Taguig City? Discuss your answer.

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2023 BAR EXAMINATIONS Criminal Law

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Catalina, a Spanish national, and Conrado, a Filipino, set up a counterfeiting factory in Shenzhen, China. Their factory produces fake United States (USD) Dollar, Japanese Yen, and Philippine Pesos, which are distributed only in Europe and the US. While vacationing in Panglao, Bohol, they were arrested by a special task force if the National Bureau of Investigation on the strength of a warrant of arrest issued by a Philippine court for Counterfeiting and Forgery. Both Catalina and Conrado claimed that the Philippine court does not have jurisdiction over them since they did not commit any criminal act within the territory of the Philippines. Catalina also argued that the Philippine court does not have jurisdiction over her person as she is a Spanish citizen. Are Catalina and Conrado correct? Discuss.

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2023 Bar Examinations Civil Law

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1. Christopher, a citizen of the United States (US), married Lila, a Filipino, in Dallas, Texas. Their marriage was later terminated by a divorce decree issued by a US court. At the time, their child, Amado, was only 18 months old. Lila and Christopher returned to the Philippines and settled in El Nido, Palawan. Christopher allegedly promised to give support to Amado in the amount of US$1,000 per month, but he never did. Subsequently, Christoper also settled in Cebu where he cohabited with another Filipino woman. When Lila learned of the whereabouts of Christopher, she filed a complaint against him for violation of the Anti-Violence Against Women and Their Children Act for his refusal to support Amado. Lila also invoked Article 195 of the Family Code, which provides for those who are obliged to support each other. She argued that notwithstanding their divorce, Christopher is not excused from complying with

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2023 Bar Examinations Labor Law

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1. Santos Hauling Incorporated (SHI) dismissed its drivers and helpers after discovering that they were committing anomalous transactions involving the sale of excess broilers and crates, without the knowledge and consent of SHI. The drivers and helpers filed a complaint for illegal dismissal against SHI. In its defense, SHI presented as evidence the affidavits of co-employees narrating the alleged anomalous transactions in detail. May the drivers and helpers be dismissed on the bases of these affidavits? Explain your answer. 2. Mara met Ange, Louise, and Sam at a coffee shop one afternoon. Maria promised she could send the three of them to work as bartenders in Scotland in exchange for P100,000 each. Ange, Louise, and Sam immediately agreed and gave the money to Maria. Upon receipt of the placement fees, Maria used the money to buy a luxury bag and posted it on her Instagram page. Ange, Louise, and Sam

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2023 Bar Examination Political Law and Public Internation Law

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September 17, 2023 (8:00 P.M. – 12:00 P.M.) 1. As an incentive for Filipino nurses to remain or be employed in the Philippines, the “Ang Nars Incentives Act of 2023” was approved by the President. The law allows children of any nurse to be enrolled in any private tertiary institution without need of taking any entrance examination provided the child maintains the required passing average grade each year. A 70% tuition waiver for each child shall be extended by the institution and 50% of the tuition waiver may be creditable to any national taxes owed by the institution to the government. Is the law constitutional? Explain briefly. 2. Sulu Second District Representative Alfonso died during the second year of his term. House Speaker Rodil then designated Sulu First District Representative Midas as the legislative caretaker for the remaining period of the term of Alfonso. Upon the prodding of majority of

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2023 Bar Examinations Commercial and Taxation Laws

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Juan, acting as president of Maharlika Car Dealers Incorporated (MCDI), entered into a contract of long-term lease with Antonino over a large commercial property along Pasong Tamo Avenue owned by the latter, When Antonino received a better offer for the commercial property, and having learned that MCDI was nor formally incorporated with the Securities and Exchange Commission, he sought to have the contract of lease nullified on the ground that it was void for lack of the essential element of consent, since the lessee was not a juridical person with capacity to contract. May Juan, acting on behalf of MCDI, which is in the process of incorporation, legally insist on the enforceability and binding effect of the contract of lease as against Antonino? Explain your answer.

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2022 BAR EXAMINATION Civil Law I

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I Noel is the son of spouses Marie and Benedict. Benedict has passed away. For Noel’s 7th birthday, his paternal grandparents offered to organize and pay for this birthday party. In coordination with Marie, the grandparents booked the party venue, signed the contracts with the caterer and the entertainers, finalized the guest list, and paid all amounts due. Marie promised them to bring Noel to the party. A week before the scheduled birthday party, Marie decided that she would not bring Noel to the party, and that she would instead take him out on an out-of-town trip on the day of the party. Marie could not forget that her parents-in-law initially opposed Benedict’s marriage to her because she was a farmer burlesque dancer. Marie did not notify the grandparents of her plan to skip the birthday party. During the party, the grandparents kept trying to get in touch with her

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2022 BAR EXAMINATION Remedial Law I

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I Lebron, a Makati resident, obtained a Php 350,000.00 loan from a bank secured by a real estate mortgage (REM) over his lot located in Quezon City with an assessment value of Php 500,000.00. Lebron failed to pay despite written demands. The bank intends to file an action for judicial foreclosure of the REM, Where should the action for judicial foreclosure of the REM be filed in which court? Explain briefly. II Asya, Inc. sued Kobe a resident of Bukidnon. To serve summons, the sheriff waited in the lobby of Makati Hotel (MH), where Kobe stays whenever he is in Manila. The sheriff failed to serve the summons Kobe left the hotel for an emergency. Hours later, the sheriff asked the front desk about Kobe’s whereabouts and his room number. The hotel refused to disclose on grounds of confidentiality. The sheriff tried again the next day, but Kobe was in

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