Today is July 5, 2020

External Auditor/Auditing Firms

Application for inclusion in the List Of Accredited/Selected External Auditors – Individual and Auditing Firm

Schedule of Availability of Service:
Monday to Friday, 7:00 AM to 6:00 PM (no noon break)

Who May Avail of the Service:
Auditing Firms, individual practitioners/external auditors

What are the Requirements:

INDIVIDUAL
1. Fully accomplished application form for external auditor (SEC Form ExA – Revised 2019)
2. For sole practitioners, Certificate of Registration as public practitioner issued by BOA. For applicant-partners, PRC/BOA Certification containing the list of registered partners of the firm
3. Quality Assurance Manual (for sole practitioner)
4. Notarized certification that the applicant has fundamental knowledge of the regulatory requirements on each of the secondary licensees of the Commission and compliance with the required 120 CPD units
5. Notarized complete list of corporate clients detailing among others the total assets of each
6. For initial application, certification from managing partner or signing partner (current and/or former) indicating the detailed participation of the applicant in the audit of the firm’s corporate-clients and various positions held in the firm
AUDITING FIRM
1. Fully accomplished application form for auditing firm (SEC Form AuF – Revised 2019)
2. Certificate of Registration issued by BOA to the firm which is current and effective including its registered partners
3. Quality Assurance Manual.
4. Notarized complete list of corporate clients detailing among others the total assets of each

How to avail of the service:

STEP APPLICANT/CLIENT SERVICE PROVIDER DURATION OF ACTIVITY PERSON IN CHARGE FEES FORM
PRE-EVALUATION PROCEDURES
1 Secures checklist of requirement from the OGA Provides client a checklist of requirements with instructions. 5 minutes Officer of the Day None Auditing Firm
SEC Form AuF(Revised 2019)

External Auditor
SEC Form ExA (Revised 2019)

2 Presents application and supporting documents 1) Pre-evaluates application and supporting documents.
a) If application and supporting documents are not complete, the same are returned to applicant with list of requirements not complied with
b) If application and supporting documents are complete, the “Officer of the Day” forwards the application to the Executive Assistant
1 hour Officer of the Day
3  1) Checks contents and stamps and receives the three (3) sets of
application document
 2) Returns one (1) copy of the application document to the client.
 3) Inputs application to Index Tracking System and forwards the same to the Assistant Director for assignment

For BSP and/or IC applications:
 4) Forwards/Refer to BSP and/or IC applications for accreditation.

10 minutes Executive Assistant
4 Selects AFS to be reviewed thru risk based approach from the notarized complete list of clients submitted and forwards documents to assigned personnel with attached copy of completed Pre-Evaluation Sheet. 3 days Assistant Director
5 Downloads selected AFS and reviews AFS supporting documents using the OGA’s Evaluation Sheet. 7 days Assigned Personnel
6 Prepares comment letters and Memorandum to operating departments to inquire pending case of client-corporations and status of AFS referrals 1 hour Assigned Personnel
7 Reviews comment letter and Memorandum and returns to Assigned Personnel to effect corrections. GO TO STEP 6

If draft letter/Memorandum is already acceptable, forwards the same to General Accountant for approval and signature.

20 minutes Assistant Director
8 Approves and signs comment letter and Memorandum (applicant will be advised to pay the required processing fee prior to the release of the comment letter)

If draft letter/Memorandum is already acceptable, forwards the same to General Accountant for approval and signature.

20 minutes General Accountant
9 Prepares Payment Assessment Form (PAF) and instructs applicant to process payment at Cashier for issuance of official receipt 10 minutes Executive Assistant
10 Presents the PAF at the Cashier and settles the required fee Processes payment and issues O.R. 10 minutes Cashier SEC ACCREDITATION
Auditing Firm
Group A
Filing Fee: P20,000
LRF*: P200
Total: P20,200

Group B
Filing Fee: P15,000
LRF*: P150
Total: P20,200

Group C
Filing Fee: P5,000
LRF*: P50
Total: P5,050

Annual Fee**
Group A – P2,500 per accredited partner + P20,000 for the firm

Group B – P2,000 per accredited partner + P15,000 for the firm

Group C – P1,500 per accredited partner + P5,000 for the firm

Individual Applicant-Practitioner
Group A
Filing Fee: P5,000
LRF*: P50
Total: P5,050

Group B
Filing Fee: P3,000
LRF*: P30
Total: P3,030

Group C
Filing Fee: P2,000
LRF*: P20
Total: P2,020

b>Annual Fee**
Group C – P5,000 for each accredited sole practitioners

BSP ACCREDITATION

Auditing Firm
Initial or Renewal
Filing Fee: P5,000
Total: P5,000

External Auditor
Initial or Renewal
Filing Fee: P2,000
Total: P2,000

IC ACCREDITATION
Auditing Firm
Initial or Renewal
Filing Fee: P50,000
LRF*: P500
Total: P50,500

External Auditor
Initial or Renewal
Filing Fee: P5,000
LRF*: P50
Total: P5,050

* Legal Research Fee is equivalent to 1% of the Filing Fee but not less than P10.

11 Submits the machine-validated PAF to OGA with the application and its supporting documents Forwards the PAF to the Assigned Personnel 5 minutes Executive Assistant Documentary Stamp**
P30/application

** Deferred until further notice

PROCESSING PROCEDURES
1 Submits letter explanation on noted findings in receiving department Acknowledges receipt of letter explanation and forwards the same to the Assistant Director for assignment 10 minutes Executive Assistant
2 Forwards documents to assigned personnel with attached copy of completed Pre-Evaluation Sheet for evaluation. 10 minutes Assistant Director
3 A. If no compliance is made within the prescribed period or compliance is not fully compliant with the requirements:
  1) Checks contents and stamps and receives the three (3) sets of
application document
1 day Assigned Personnel
  2) Reviews letter and returns to Assigned Personnel to effect corrections.

  If draft letter is already acceptable, forwards the same to General Accountant for approval and signature.

20 minutes Assistant Director
B. If applicant meets threshold to qualify for accreditation but has noted material findings in the reviewed clients’ AFS:
  1) Prepares an assessment letter and/or directive to submit amended AFS 2 days Assigned Personnel
  2) Reviews letter and returns to Assigned Personnel to effect corrections.

  If draft letter is already acceptable, forwards the same to General Accountant for approval and signature.

20 minutes Assistant Director
 3) Approves and signs letter 20 minutes General Accountant
 4) Prepares letter for mailing 20 minutes Index Tracking Personnel
Presents assessment letter  5) Prepares Payment Assessment Form (PAF) for penalty and instructs applicant to process payment for penalty at the Cashier for issuance of official receipt 10 minutes Executive Assistant The assessed penalty is based on SEC MC Nos. 8 and 13/ Revised SRC Rule 68
Presents the PAF at the Cashier and settles the required penalty  6) Processes payment and issues O.R. 10 minutes Cashier
Submits the machine-validated PAF to OGA  7) Records penalty collected and forwards PAF to Assistant Director 5 minutes Executive Assistant
 8) Forwards documents to assigned personnel to form part of application documents 5 minutes Assistant Director
4 If applicant fully complies with the requirements and the operating departments have already provided a Memo-reply:
 1) For Group A/B, prepares Memorandum to Commission En Banc, Evaluation Sheet and other supporting documents, i.e., working paper, matrix of findings, google searches on top ten (10) clients for any pending case/issues on them including the concurrence of BSP and/or IC on their approval/denial of the applications (through Supervising Commissioner) then GO TO STEP 5, 6 and 9.

2) For Group C, finalizes evaluation sheet and other supporting documents, i.e., working paper, matrix of findings, google searches on reviewed client-corporations for any pending case/issues on them including the concurrence of BSP and/or IC on their approval/denial of the applications for submission to General Accountant, then GO TO STEP 7, 8 and 9.

3 days Assigned Personnel
5 Reviews Memorandum, Evaluation Sheets and other supporting documents and returns to Assigned Personnel to effect corrections.

If Memorandum and other documents are already acceptable, forwards the same to General Accountant for approval and signature.

20 minutes Assistant Director
6 Approves and signs Memorandum, Evaluation Sheets and other supporting documents. Forwards application folder to Supervising Commissioner for approval/clearance for presentation to Commission En Banc 20 minutes General Accountant
7 Reviews Evaluation Sheets and other supporting documents and returns to Assigned Personnel to effect corrections.

 If Evaluation Sheet and other documents are already acceptable, forwards the same to General Accountant for approval and signature.

20 minutes Assistant Director
8 Approves and signs Evaluation Sheets and other supporting documents. Forwards the same to the Supervising Commissioner for final approval. 20 minutes General Accountant
9 Reviews Memorandum / Evaluation Sheet and other documents.

 For Group A/B, If application is already acceptable, signs document for presentation by General Accountant to Commission En Banc.

 For Group C, if application is already acceptable, signs Evaluation Sheet and returns application folder to OGA for preparation of certificate. (GO TO STEP 12)

2 days Supervising Commissioner
10 Presents Memorandum to the Commission En Banc for consideration (after clearance from Supervising Commissioner) 50 minutes General Accountant
11 Receives advice of the resolution of the Commission En Banc on the application

If approved, GO TO STEP 12.

1. If denied/deferred:

If draft letter is already acceptable, forwards the same to General Accountant for approval and signature.

• Denial: Notifies the applicant of the denial and reasons thereof

• Deferment: Notifies the applicant of the deferment and requirement to be complied with or necessary action to correct the deficiency.

1 day Assigned Personnel
2. Reviews letter and returns to Assigned Personnel to effect corrections.

If draft letter is already acceptable, forwards the same to General Accountant for approval and signature.

20 minutes Supervising Accountant
3. Approves and signs letter 20 minutes General Accountant
4. Prepares letter for mailing 20 minutes Index Tracking Personnel
12 Submits letter explanation on noted findings in receiving department Acknowledges receipt of letter explanation and forwards the same to the Assistant Director for assignment 10 minutes Executive Assistant
 a. Prints two (2) copies 10 minutes Executive Assistant
 b. Checks details and Initials on copies 5 minutes Assigned Personnel
 c. Checks details and Initials on copies 5 minutes Assistant Director
 d. Signs certificates 5 minutes General Accountant
 e. Notifies applicant that the Certificate may be picked up (in case of representative, subject to presentation of authorization letter) 5 minutes Executive Assistant
 f. Releases Certificate of accreditation and forwards duplicate file to clerk 10 minutes Executive Assistant
 g. Logs in registry of Accredited Appraisal Companies; informs Index Tracking Personnel of the issuance of the certificate. 10 minutes Executive Assistant
 h. Provides MIS with updated list 30 minutes Executive Assistant
 i. Updates tracking system 30 minutes Index Tracking Personnel
Duration:
Pre-evaluation of application: 10 days and 1 hour
Processing of application: 20 days
Total duration: 20 days

• Processing time is exclusive of time allotted for the AFS evaluation and response period from first comment letter. The above processing time commences upon actual receipt of letter explanation from the applicant on the noted findings on the AFS evaluation.

• The above processing time only includes the period of time wherein the application is within the Office of the General Accountant. It likewise excludes extensions, requirements to amend the audited financial statements, additional procedures/documents that the Supervising Commissioner/Commission en banc may require as deemed necessary and period of time to receive the concurrence of BSP and/or IC on the approval/denial of the applications.

• Additional processing time of 20 days shall be added from the total processing time if the assigned personnel requested supplemental information due to insufficiency of the applicant’s explanation on noted findings. Such supplemental shall be requested before the original processing time lapse.

• The Commission may either grant a five (5) year SEC accreditation or a conditional accreditation subject to the result of the review. The applicant may only avail or be granted conditional accreditation on the same level up to three (3) times only.

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