April 23, 2008
SEC NOTICE
In its meeting on April 3, 2008, the Commission En Banc resolved to approve the amendment of Annex "A" of SEC Memorandum Circular No. 13, Series of 2006 ("Circular").
The Amended Guidelines on the Evaluation of Audit Work of Applicants for Accreditation as External Auditors shall therefore read as follows:
I. GROUP A or B APPLICATIONS
a. The latest audited financial statements (AFS) of the top two (2) clients of the applicant, based on total assets, shall be reviewed. However, if any of these clients is a bank, insurance company or cooperative, the AFS of the next largest client which is not engaged in the business of any of the said corporations shall become the subject of evaluation.
b. For Group A applications, the audit work of the applicant shall be acceptable only if the number of minor disclosure deficiencies found in the AFS of the applicant's clients do not exceed two (2). For Group B applications, the acceptable number of minor disclosure deficiencies shall not exceed five (5).
Please see paragraph III (a), (b)...
