Insights That Illuminate. Advice That Empowers.

The Department of Trade and Industry (DTI) has issued Department Administrative Order (DAO) No. 25-12, Series of 2025, to further strengthen the implementation of the 

E-Commerce Philippine Trustmark (TRUSTMARK), reinforcing consumer protection, transparency, and accountability in the rapidly growing online marketplace. This new order amends DAO No. 25-07 (2025) and emphasizes the mandatory registration of all online merchants, e-retailers, e-marketplaces, digital platforms, and third-party platforms operating in the Philippines, ensuring that all participants in e-commerce adhere to standardized practices that protect both sellers and consumers.

The TRUSTMARK is a visible seal of compliance that signals an online seller’s or platform’s commitment to fair, secure, and responsible online trade. Importantly, it is not a business permit or license, but rather a certification demonstrating adherence to established 

e-commerce standards and best practices. Its presence reassures consumers that the online business they are transacting with meets minimum requirements for security, transparency, and lawful conduct.

Key provisions of DAO 25-12 include:

• Mandatory Registration – All online sellers and platforms, regardless of size or reach, are required to register with the DTI E-Commerce Bureau. This ensures that every active participant in the digital marketplace is properly documented and accountable.
  
• Deadline for Registration – Applications must be submitted on or before September 30, 2025. Online businesses that have applied but are still awaiting approval must clearly indicate that their TRUSTMARK registration is in process, maintaining transparency with their customers.
  
• Fee Policy – While regular registration fees continue to apply as outlined in DAO 25-07, Barangay Micro Business Enterprises (BMBEs) are exempt from paying the initial application fee, supporting smaller businesses and encouraging their participation in formal e-commerce compliance.
  
• Compliance Monitoring – TRUSTMARK holders are required to adhere to all relevant laws, including the Standards Law, the Consumer Act, and the Internet Transactions Act, among others. Regular compliance checks by DTI will ensure that online businesses maintain the required standards for secure, fair, and ethical commerce.
  
• Regulated Products – Sellers dealing with regulated goods and services must submit valid government-issued licenses or permits. This provision ensures that products requiring special authorization, such as food, health, or pharmaceutical items, meet government standards and are safe for public consumption.
  
• Effectivity – DAO 25-12 becomes effective 15 days after its publication in two newspapers of general circulation and its filing with the Office of the National Administrative Register (ONAR), giving businesses a clear timeline for compliance and public awareness.

In essence, DAO 25-12 strengthens the framework for safe and reliable online commerce in the Philippines, ensuring that all digital trade activities are registered, monitored, and compliant with consumer protection and trade laws. By enforcing these standards, the DTI aims to foster trust, accountability, and confidence in the growing e-commerce ecosystem, ultimately protecting consumers and supporting the responsible growth of online businesses across the country.

This website does not claim ownership of the material and does not provide legal advice, opinions, or interpretations. For authoritative reference, please consult the Official Gazette or other official government publications.

[CTC]+DAO+No.+25-12.PDF 

In an era where digital transformation is reshaping every aspect of governance and business, the field of auditing is also evolving. One of the most promising technologies driving this change is blockchain—a system that records data in secure, tamper-proof digital ledgers. With increasing concerns about corruption, data manipulation, and lack of transparency in both public and private institutions, blockchain is now being recognized as a potential cornerstone for a more transparent and accountable auditing system. This was highlighted in a recent Senate hearing led by Senator Bam Aquino, where lawmakers and experts discussed how blockchain technology could be used to promote transparency and accountability in government transactions through the proposed National Budget Blockchain Act.

What is Blockchain?

Blockchain works by creating a chain of records, or “blocks,” that are securely linked and distributed across multiple computers. Once information is entered, it cannot be altered without leaving a trace, ensuring data integrity. For auditors, this is a significant breakthrough. Instead of manually checking transactions or relying on potentially biased reports, auditors can access a real-time, immutable record of financial activities. This makes it much harder for fraudulent transactions or errors to go unnoticed.

One of the key advantages of blockchain is transparency. Every transaction recorded on a blockchain can be viewed and verified by authorized users, allowing both auditors and the public to see how funds are used. This transparency strengthens trust not only in financial reports but also in institutions themselves. In the public sector, it could mean that citizens would have the power to monitor how their taxes are being spent. In the private sector, it could reassure investors and stakeholders that companies are operating ethically and efficiently.

Beyond transparency, blockchain also improves efficiency. Traditional auditing often requires a long and tedious process of collecting, verifying, and cross-checking data. With blockchain, auditors can perform continuous auditing—monitoring transactions as they happen. This allows for quicker identification of discrepancies and more accurate financial assessments. It also reduces administrative workload and the possibility of human error.

Moreover, blockchain provides stronger security measures. Since each block of data is encrypted and linked to the previous one, any attempt to alter records would immediately be detected. This reduces the risk of data tampering and enhances the credibility of financial information. Auditors can rely on blockchain-based systems to verify the authenticity of records without depending entirely on intermediaries or 

third-party confirmations.

Challenges

However, adopting blockchain in auditing comes with challenges. It requires technical expertise, investment in digital infrastructure, and updated regulatory frameworks. Auditors must develop digital literacy to fully understand how blockchain systems operate, while institutions must ensure data privacy and compliance with ethical standards. Despite these hurdles, the benefits of integrating blockchain into audit practices outweigh the difficulties, especially in an age where information integrity and accountability are paramount.

Key Takeaways

The promise of blockchain lies in its ability to redefine the audit process—from one that relies on periodic reviews and manual verification to one that provides continuous assurance and public accountability. As technology advances, auditors have the opportunity to evolve with it, transforming their role from mere examiners of past transactions into real-time guardians of transparency. Blockchain does not only modernize auditing—it strengthens trust in the entire financial ecosystem.

As the world moves further into the digital age, the integration of blockchain into auditing is not just an innovation—it is a necessity. By embracing this technology, auditors can ensure that every financial transaction is not only recorded but also verified and trusted. Blockchain may well become the foundation of a more transparent, accountable, and ethical financial world.

Disclaimer: This article draws from discussions presented during a Senate hearing on the proposed National Budget Blockchain Act, led by Senator Bam Aquino.

EXPLAINER: Ano ang blockchain at paano nito mababantayan ang paggasta ng pamahalaan? 

The Auditing and Assurance Standards Council (AASC) has approved the adoption of the International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements and Conforming Amendments to Other International Standards Arising from ISSA 5000, as Philippine Standard on Sustainability Assurance 5000 (PSSA 5000), General Requirements for Sustainability Assurance Engagements and Conforming Amendments to Other International Standards Arising from PSSA 5000.

Adoption:

On January 27, 2025, the AASC formally adopted ISSA 5000, issued by the International Auditing and Assurance Standards Board (IAASB) in November 2024, as PSSA 5000. This move aligns Philippine standards with global practices, reinforcing transparency, accountability, and consistency in sustainability reporting.

Effective Date:

PSSA 5000 becomes effective for sustainability assurance engagements on information reported for periods beginning on or after December 15, 2026, or as at a specific date on or after that time. Earlier application is permitted.

Objectives:

The objectives of a sustainability assurance engagement under PSSA 5000 are:

1. To obtain reasonable or limited assurance about whether the sustainability information is free from material misstatement.
2. To express a written conclusion report on the sustainability information that conveys a reasonable or limited assurance conclusion, and describes the basis for the conclusion; and
3. To communicate further as required by the standard.

When reasonable or limited assurance cannot be obtained and a qualified conclusion in the practitioner’s assurance report is insufficient, practitioners are required by the standard to disclaim a conclusion or withdraw from the engagement. 

• It applies to all assurance engagements on sustainability information, regardless of how the information is presented.
• It deals with both reasonable and limited assurance engagements, unless otherwise stated. 
• It is an overarching standard that includes requirements and application material for all elements of a sustainability assurance engagement.
• It applies only to attestation engagements, not direct engagements. 
• It does not address sustainability information included in the entity’s financial statements, practitioners must apply the International Standards on Auditing (ISA).
• It acknowledges that sustainability information may be presented together with the audited financial statements which are treated as “other information”. 
• The standard is scalable, intended for assurance engagements on sustainability information for entities of all sizes and complexities. However, the requirements of this ISSA are intended to be applied in the context of the nature and circumstances of the engagement.

Read more here:  Auditing and Assurance Standards Council (AASC)

Disclaimer: This article is for informational purposes only. For official guidance, please refer to the Auditing and Assurance Standards Council (AASC) website. 

AI transforms audits by facilitating deeper insights, quicker data processing, and better risk detection. However, human judgment, ethics, and critical thinking are still necessary despite its power.

In June 2025, a global roundtable co-hosted by International Association for Accounting Education and Research (IAAER), the International Auditing and Assurance Standards Board (IAASB), the South African Independent Regulatory Board for Auditors, and IFAC gathered regulators, educators, and professionals to tackle one urgent question: How should auditors be prepared for a technology-driven future? 

Find out here:  Embracing the AI Frontier: Rethinking Auditor Skills and Education | IFAC 

Disclaimer: The above document is shared for informational purposes only. All rights and authority remain with the International Federation of Accountants.

Republic Act No. 12252 (Amending RA 7652 – Investors’ Lease Act) signed on September 3, 2025, expands and strengthens the rules governing land leases by foreign investors in the Philippines. The law allows lease terms of up to 99 years, provides for mandatory registration of contracts, and imposes stricter compliance measures to ensure the integrity of long-term lease agreements.

• 1993 – RA 7652 (Investors’ Lease Act) was enacted, limiting leases to 50 years, renewable for 25 years
• September 3, 2025 – RA 12252 signed into law by President Ferdinand Marcos Jr.
• September 4,  2025 – Law published in the Official Gazette
• Effectivity – 15 days after publication
• Within 90 days – DTI (through BOI) and LRA to issue Implementing Rules and Regulations (IRR)

• Lease Term Extended – Foreign investors may now lease private lands for up to 99 years, subject to national security considerations.
• Registration Requirement – Lease and sublease contracts must be registered with the Registry of Deeds and annotated on land titles; registration is the operative act binding contracts against third parties.
• Investment Timeline – Projects must commence within 3 years from signing the lease, or incentives may be revoked.
• Subleasing Allowed – Permitted with lessor’s consent, subject to registration and compliance with lease conditions.
• Tourism Investments – Lease of private land limited to projects with minimum USD 5 million investment, with 70% infused within 3 years.
• Penalties – Violations carry fines of ₱1 million–₱10 million and/or imprisonment of 6 months–6 years.

• Reinforces the Philippines’ competitiveness by aligning with international norms (99-year leases).
• Provides greater stability and legal certainty for foreign investors in industries such as manufacturing, tourism, agriculture, and eco-conservation.
• Strengthens government oversight by requiring registration, annotation, and compliance monitoring.
• Creates stronger safeguards for public interest, especially in areas tied to national security and critical infrastructure.

• Foreign Investors – Gain access to longer, more secure lease arrangements, encouraging large-scale, long-term projects.
• Local Landowners – Benefit from clearer protections, binding registration, and regulated sublease agreements.
• Regulators (DTI, BOI, LRA, FIRB) – Strengthened authority to enforce compliance, revoke incentives, and safeguard against misuse.

RA 12252 is a landmark reform that liberalizes land leasing while balancing investor security and national interest. It provides a stronger framework for attracting foreign investments and ensuring compliance with Philippine laws.

Disclaimer:  The document and information below are sourced from the Official Gazette of the Republic of the Philippines and are shared solely for educational and informational purposes. No modifications have been made to the original publication. All rights and authority remain with the Government of the Philippines.

This website does not claim ownership of the material and does not provide legal advice, opinions, or interpretations. For authoritative reference, please consult the Official Gazette or other official government publications.

SRV

As auditors prepare for the current audit season, it’s timely to revisit the Auditing and Assurance Standards Council’s (AASC) guidance to practitioners on the proper referencing of accounting standards in independent auditors’ reports. 

Earlier this year, through Alert No. 001, Series of 2025, the AASC outlined the changes in the naming convention of locally adopted accounting and sustainability standards in the Philippines. 

Key Updates on Naming Conventions

Following its official announcement earlier this year, the Philippine Financial and Sustainability Reporting Standards Council (PFSRSC) has reaffirmed—via its website—that locally adopted standards shall now be formally referred to as:

• “IFRS Accounting Standards” now “PFRS Accounting Standards”
• “IFRS Sustainability Disclosure Standards” now “PFRS Sustainability Disclosure Standards”
• “IFRS for SMEs Accounting Standard” now “PFRS for SMEs Accounting Standard”

What This Means for Auditors

The AASC emphasizes that external auditors engaged in audits under the Philippine Standards on Auditing must update references in their independent auditors’ report to reflect these changes:

• Opinion section (second paragraph):  Financial statements must be stated as prepared in accordance with the Philippine Financial Reporting Standards (PFRS) Accounting Standards.
• Responsibilities of Management and Those Charged with Governance (first paragraph): Management’s responsibility should likewise be stated in accordance with PFRS Accounting Standards.

This guidance applies only to entities using PFRS Accounting Standards in preparing their financial statements.

External Auditors are also advised to consider other aspects of the audit engagements such as:

• Letter of engagement
• Management letters of comments and recommendations
• Management (and/or where appropriate, those charged with governance) representation letter

Background Information

The changes were made in relation to the updates made by the IFRS Foundation trademark guidelines, which affect references to the International Accounting Standards and International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). 

• Issued by the IASB ➝ IFRS Accounting Standards
• Issued by International Sustainability Standards Board ➝ IFRS Sustainability Disclosure Standards

The Alert was approved during the AASC’s regular meeting on February 24, 2025. Notably, the AASC’s action aligns with global developments, as the International Auditing and Assurance Standards Board issued similar guidance in December 2023 through its IASB Liaison Working Group, promoting consistency between Philippine and international auditing practices.

 Source:  AASC-Alert-No.-001-s2025-Changes-to-the-Naming-Convention-of-Accounting-Standards.pdf 

HJA