2GO - The Case of Overstated Profits and Understated Losses
2GO went under fire in 2017 when its financial reports saw discrepancies in 2015 and 2016. What and why did this happen?
At a glance
Issue
Accounting Anomalies
Involving Parties
2GO, SGV, R.G. Manabat & Co.
Year of Issue
2017
Abstract
2GO Group, a leading logistics provider in the Philippines, faced a financial scandal in 2017 that exposed serious discrepancies in its financial statements for 2015 and 2016. Under new management led by Dennis Uy and the SM Group, a special audit by SyCip Gorres Velayo & Co. (SGV) revealed overstated profits and understated losses, attributed to liberal accounting practices by the former auditor, R.G. Manabat & Co., a KPMG affiliate.
This case study examines the aftermath of the scandal, including regulatory scrutiny, reputational damage, and governance reforms. It explores the broader implications for auditing practices and corporate accountability in the Philippines. By analyzing the root causes, responses, and lessons from the 2GO case, the case offers insights into the importance of transparent financial reporting and robust governance in fostering investor confidence and preventing future crises.
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