Due Diligence Audit Report Template for Philippines

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Key Requirements PROMPT example:

Due Diligence Audit Report

"I need a Due Diligence Audit Report for a Philippine manufacturing company that's planning to go public in March 2025, with particular focus on environmental compliance and operational efficiency in the industrial sector."

Document background
Due Diligence Audit Reports are essential documents in the Philippine business environment, particularly for significant corporate transactions such as mergers, acquisitions, investments, or major business restructuring. These reports are prepared in compliance with Philippine regulatory requirements, including the Corporation Code, Securities Regulation Code, and Philippine Standards on Auditing. A Due Diligence Audit Report provides a comprehensive examination of a company's financial statements, operational processes, legal compliance, corporate governance, and risk profile. It serves as a crucial tool for informed decision-making by investors, board members, and other stakeholders, offering detailed insights into the company's current status, potential risks, and opportunities. The document must adhere to strict regulatory standards while maintaining international best practices in audit and assessment procedures.
Suggested Sections

1. Executive Summary: High-level overview of key findings, material issues, and major recommendations

2. Scope and Objectives: Detailed outline of the audit scope, objectives, and methodology employed

3. Company Overview: Basic information about the target company, including history, structure, and operations

4. Corporate Structure and Governance: Analysis of corporate organization, shareholding structure, and governance framework

5. Financial Analysis: Review of financial statements, key metrics, and financial position

6. Legal and Regulatory Compliance: Assessment of compliance with applicable laws, regulations, and licensing requirements

7. Operational Assessment: Evaluation of business operations, processes, and operational efficiency

8. Human Resources: Review of employment matters, labor compliance, and HR policies

9. Material Contracts: Analysis of key business agreements and contractual obligations

10. Risk Assessment: Identification and evaluation of key business and operational risks

11. Findings and Recommendations: Detailed presentation of issues identified and recommended actions

Optional Sections

1. Industry-Specific Compliance: Include when the target operates in a regulated industry (e.g., banking, insurance, healthcare)

2. Environmental Compliance: Include for companies with significant environmental impact or requirements

3. Intellectual Property: Include when IP assets are material to the business

4. Information Technology: Include for technology-dependent companies or digital businesses

5. Real Estate and Assets: Include when the company has significant property holdings or fixed assets

6. Market Analysis: Include when market position and competition are crucial factors

7. Tax Structure Analysis: Include for complex corporate structures or international operations

8. Customer and Supplier Analysis: Include when there are significant dependencies on key customers or suppliers

Suggested Schedules

1. Financial Statements: Detailed financial statements and supporting schedules

2. Corporate Documents: Copies of key corporate documents, certificates, and filings

3. Material Contracts Schedule: List and copies of significant contracts and agreements

4. Compliance Certificates: Copies of regulatory compliance certificates and permits

5. Legal Documents: Copies of legal opinions, litigation documents, and regulatory correspondence

6. Employee Information: Key employment agreements and HR policies

7. Asset Register: Detailed listing of company assets and properties

8. Risk Matrix: Detailed risk assessment and rating matrix

9. Interview Notes: Summary of key management interviews and findings

10. Document Request List: List of documents reviewed and outstanding items

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Banking and Financial Services

Manufacturing

Real Estate and Property Development

Technology and Communications

Energy and Utilities

Healthcare and Pharmaceuticals

Retail and Consumer Goods

Mining and Natural Resources

Transportation and Logistics

Agriculture and Food Processing

Education

Construction and Infrastructure

Relevant Teams

Legal

Finance

Compliance

Internal Audit

Risk Management

Corporate Governance

Investment

Operations

Strategy

Mergers and Acquisitions

Business Development

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Legal Officer

Corporate Secretary

Audit Partner

Due Diligence Manager

Financial Controller

Compliance Officer

Risk Manager

Investment Analyst

Corporate Lawyer

Managing Director

Board Director

Internal Audit Manager

Business Development Director

Industries
Corporation Code of the Philippines (Batas Pambansa Blg. 68): Primary law governing corporations in the Philippines, including corporate structure, obligations, and compliance requirements
Securities Regulation Code (Republic Act No. 8799): Regulates the securities market and requires disclosure of material information in corporate transactions
Philippine Financial Reporting Standards (PFRS): Standards for financial reporting and disclosure requirements aligned with International Financial Reporting Standards (IFRS)
Philippine Standards on Auditing (PSA): Guidelines for conducting audits in accordance with international auditing standards
Data Privacy Act of 2012 (Republic Act No. 10173): Governs the protection of personal and sensitive information in data collection and processing during due diligence
Anti-Money Laundering Act (Republic Act No. 9160): Requirements for financial due diligence and reporting suspicious transactions
Philippine Competition Act (Republic Act No. 10667): Regulations regarding market competition and merger control that may affect due diligence findings
Labor Code of the Philippines: Labor law compliance requirements that need to be verified during employment-related due diligence
Environmental Laws (Various): Environmental compliance requirements including Clean Air Act, Clean Water Act, and other environmental regulations
Tax Code of the Philippines (National Internal Revenue Code): Tax compliance requirements and regulations that need to be assessed during financial due diligence
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Due Diligence Audit Report

A detailed audit assessment report compliant with Philippine regulations, examining a company's operations, finances, legal status, and risks.

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