Expenses are overstated by about 4.82 billion pesos because some expenses were not recorded or accrued, some were recorded in the wrong period, some were misclassified, and depreciation was not provided correctly.

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Original Audit Finding Excerpt

"The reported balance of the Expense accounts is net overstated by P4,820,153,543.07 due to: (a) non-recording/non-accrual of expense incurred totaling P6,499,149.87; (b) erroneous recording of expenses in the proper accounting period aggregating P70,425,390.73; (c) improper classification of expense accounts; and (d) erroneous/non-provision of depreciation aggregating P4,884,079,783.93."

Source Document