Date of Publication


Document Type

Master's Thesis

Degree Name

Master of Science in Accountancy

Subject Categories



Ramon V. Del Rosario College of Business



Thesis Adviser

Lope E. Dapun

Defense Panel Chair

Tereso S. Tullao, Jr.

Defense Panel Member

Cesar C. Rufino
Wilfredo A. Baltazar


This study examines the factors that determine the extent of disclosures in financial statements of Metro Cebu corporations audited by non-affiliated CPA practitioners. The study utilized the descriptive, evaluative and correlation research designs. The descriptive design focused on identifying the financial reporting standards mandated by the recognized bodies and regulatory agencies consisting of 23 aspects beginning January 1, 2001 and 20 in prior years. The financial statements for the calendar years 1999-2000 (Period 1) and 2001-2002 (Period 2) of ninety-seven Metro Cebu-based corporations which were audited by 76 non-affiliated CPA practitioners (28 are members of ACPAPP and 48 non-ACPAPP) were taken from 449 audited financial statements field with the Securities and Exchange Commission (SEC) in April 2003. The evaluative design delved on determining the impact of the auditor's (CPA practitioner's) membership in the ACPAPP as well as in determining the effect of the SEC directive. Univariate and multivariate methods were employed to test the relationship between the independent variables and the level of compliance with required financial statement disclosures.

Results revealed that , in both periods, audited financial statements of Metro Cebu-based corporations moderately complied with the mandatory financial statement disclosures and that SEC's directive on adoption of international Accounting Standards significantly decreased the level of compliance. This implies that corporate management as well as the non-affiliated CPA practitioner was not ready, either professionally or technically, to adopt International Accounting Standards not even the Philippine accounting standards. The CPA practitioner's membership in the professional organization ACPAPP, possession and use of extensive professional library and rank in the audit firm have a certain significant influence on the disclosure level and could play a major role in promoting mandatory disclosure. Since other variables were found to be significant, the study finally concludes that there is a possibility that full disclosure in financial statements may not be entirely applicable to close or private corporations, which is a significant feature of Metro Cebu business.

Abstract Format






Accession Number


Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

1 computer optical disc ; 4 3/4 in.


Financial disclosure—Philippines-—Cebu City; Financial statements—Philippines-—Cebu City; Auditing—Philippines-—Cebu City

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