December 1, 2004
BSP MEMORANDUM
| TO | : | All Universal and Commercial Banks |
To facilitate effective implementation of Circular No. 439 dated 5 July 2004, the following clarifications are hereby issued:
1. On whether the required accreditation of external auditors is to be conducted by the Securities and Exchange Commission (SEC) or by the BSP, the process for accreditation, and the responsibility of the banks in the accreditation process.
Response: Banks must ensure that external auditors of clients are accredited by the SEC. The SEC accreditation process can be viewed on the SEC website (www.sec.gov.ph). It is important to note that SEC accreditation requires prior Professional Regulation Commission (PRC)/Board of Accountancy (BOA) accreditation.
2. On the requirement to have bank clients' financial statements audited only by accredited auditors vs. affordability by/accessibility of bank clients.
Response: Both the SEC and the BOA have confirmed that they have regional centers which are readily accessible by even provincial external auditors intending to be accredited. The process is quite straightforward. The BOA accreditation costs only P1,000 for a 3-year accreditation and the SEC accreditation cost is likewise...
