There can be more than one reason
The audited financial statements requirement for BIR is not the only test. SEC rules, another regulator, a lender or a contract may also require an audit. A business below one threshold can still have another obligation.
Identify the entity, year and purpose before deciding what must be prepared.
The BIR gross-annual threshold
Section 232, as amended by the TRAIN law and quoted in BIR RMC 48-2022, requires annual independent CPA examination for covered entities or persons whose gross annual sales, earnings, receipts or output exceed ₱3 million.
“Exceed” matters. Do not rewrite that threshold as exactly ₱3 million or use profit instead of the specified gross measure. Confirm applicability and current requirements for the actual taxpayer.
Check the other filing requirements separately
An audit requirement, annual return deadline and attachment submission method are separate questions. The relevant tax form and regulatory filings may require different documents and timing.
Confirm the auditor’s independence and required accreditations. A compiled spreadsheet is not an audit opinion. Arrange the engagement early enough for proper work and review.
Prepare a useful audit pack
Reconcile the ledgers, bank accounts, receivables, payables and supporting schedules. List missing documents with an owner and date. Tell the auditor about significant changes and unusual transactions.
OLi Audit can collect client files and track engagement tasks. It does not determine whether an audit is legally required. Ask the adviser to document the basis, then keep that conclusion with the annual filing checklist.
Sources and scope
Checked. 5 October 2026. BIR RMC 48-2022 quoting amended Section 232. Examples are illustrative. Coverage, exceptions and more favorable terms matter. For a specific legal or tax issue, obtain advice based on the facts.
Quick answers
Does every business automatically need a BIR audit?+
Check the statutory threshold and applicability, then assess other requirements separately.
Does being below the BIR threshold remove SEC obligations?+
No. SEC and other requirements need their own review.
Original practical guidance prepared for OLi with AI assistance. It focuses on workflow and product evaluation. It does not replace your organization’s policies or professional advice.
