ACCREDITATIONS

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Application for Inclusion in the List of Accredited/Selected External Auditors - Individual and Auditing Firm

All corporations with secondary licenses with the Commission shall have independent auditors accredited by the Commission under the appropriate category. The accreditation of independent auditors and auditing firm serves as a quality control mechanism or quality assurance review by the Commission on the work of the accredited external auditors. Said accreditation prescribes higher standard of qualifications and audit quality to ensure reliability and integrity of financial reports being submitted by covered companies.

       
Classification: Highly Technical
Type of Transaction: G2C – Government to Citizen
G2B – Government to Business
Who may avail: Auditing Firms
Individual practitioners/External Auditors
CHECKLIST OF REQUIREMENTS WHERE TO SECURE
INDIVIDUAL
1. Fully accomplished application form for external auditor (Application for inclusion in the list of Accredited/Selected External Auditors-Individual) and pre-evaluation notice (1 original, 2 photocopies) Securities and Exchange Commission official website
(https://www.sec.gov.ph/forms-and-fees/accreditation/)
(https://www.sec.gov.ph/accountants-information/forms/)
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 (1 original, 2 photocopies) Professional Regulation Commission/Board of Accountancy
3. Quality Assurance Manual (for sole practitioner) (1 original, 2 photocopies) Applicant
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 (1 original, 2 photocopies) Applicant
5. Notarized complete list of corporate clients detailing among others the total assets of each (1 original, 2 photocopies) Applicant
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 (1 original, 2 photocopies) Applicant
AUDITING FIRM
1. Fully accomplished application form for auditing firm (Application for inclusion in the list of Accredited/Selected External Auditors-Auditing Firm) and pre-evaluation notice (1 original, 2 photocopies) Securities and Exchange Commission official website
(https://www.sec.gov.ph/forms-and-fees/accreditation/)
(https://www.sec.gov.ph/accountants-information/forms/)
2. Certificate of Registration issued by BOA to the firm which is current and effective including its registered partners (1 original, 2 photocopies) Professional Regulation Commission/Board of Accountancy
3. Quality Assurance Manual (1 original, 2 photocopies) Applicant
4. Notarized complete list of corporate clients detailing among others the total assets of each (1 original, 2 photocopies) Applicant

 

CLIENT STEPS AGENCY ACTIONS FEES TO BE PAID PROCESSING TIME PERSON RESPONSIBLE
Pre-Evaluation Procedures
1. Secures checklist of requirement from the OGA. 1. Provides client a checklist of requirements with instructions. None 5 minutes Officer of the day
Office of the General Accountant
2. Presents application and supporting documents. 2. Pre-evaluates and authenticates application and supporting documents. None 1 hour Officer of the day
Office of the General Accountant
      2.1.1. If application and supporting documents are not complete, the same are returned to applicant with list of requirements not complied with.      
      2.1.2. If application and supporting documents are complete, the “Officer of the Day” forwards the application to the Executive Assistant.      
    2.2. Checks contents and stamps and receives the three (3) sets of application document.   10 minutes Executive Assistant
    2.3. Returns one (1) copy of the application document to the client.      
    2.4. Inputs application to Index Tracking System and forwards the same to the Assistant Director for assignment.      
    2.5. 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
      2.5.1. For BSP and/or IC applications: Forwards/Refer to BSP and/or IC applications for accreditation.      
    2.6. Downloads selected AFS and reviews AFS supporting documents using the OGA’s Evaluation Sheet.   7 days Assigned Personnel
Office of the General Accountant
    2.7. Prepares comment letters and Memorandum to operating departments to inquire pending case of client-corporations and status of AFS referrals.   1 hour Assigned Personnel
Office of the General Accountant
    2.8. Reviews comment letter and Memorandum and returns to Assigned Personnel to effect corrections. GO TO STEP 2.7.   20 minutes Assistant Director
      2.8.1. If draft letter/ Memorandum is already acceptable, forwards the same to General Accountant for approval and signature.      
    2.9. 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).   20 minutes General Accountant
    2.10. Prepares Payment Assessment Form (PAF) and instructs applicant to process payment at Cashier for issuance of official receipt.   10 minutes Executive Assistant
3. Presents the PAF at the Cashier and settles the required fee. 3. Processes payment and issues O.R.

SEC ACCREDITATION

Auditing Firm
Group A
Filing Fee: PHP 20,000.00
LRF*: PHP 200.00
Total: PHP 20,200.00

Group B
Filing Fee: PHP 15,000.00
LRF*: PHP 150.00
Total: PHP 15,150.00

Group C
Filing Fee: PHP 5,000.00
LRF*: PHP 50.00
Total: PHP 5,050.00

Annual Fee**
Group A – PHP 2,500.00 per accredited partner + PHP20,000.00 for the firm

Group B – PHP2,000.00 per accredited partner + PHP15,000.00 for the firm

Group C – PHP1,500.00 per accredited partner + PHP5,000.00 for the firm

Individual Applicant-Practitioner
Group A
Filing Fee: PHP 5,000.00
LRF*: PHP 50.00
Total: PHP 5,050.00

Group B
Filing Fee: PHP 3,000.00
LRF*: PHP 30.00
Total: PHP 3,030.00

Group C
Filing Fee: PHP 2,000.00
LRF*: PHP 20.00
Total: PHP 2,020.00

Annual Fee**
Group C – PHP5,000.00 for each accredited sole practitioners

Documentary Stamp PHP 30.00/application

BSP ACCREDITATION

Auditing Firm
Initial or Renewal
Filing Fee: PHP 5,000.00
Total: PHP 5,000.00

External Auditor
Initial or Renewal
Filing Fee: PHP 2,000.00
Total: PHP 2,000.00

IC ACCREDITATION

Auditing Firm
Initial or Renewal
Filing Fee: PHP 50,000.00
LRF*: PHP 500.00
Total: PHP 50,500.00

External Auditor
Initial or Renewal
Filing Fee: PHP 5,000.00
LRF*: PHP 50.00
Total: PHP 5,050.00

* Legal Research Fee is equivalent to 1% of the Filing Fee but not less than PHP10.00.

** Deferred until further notice

10 minutes
*Subject to the prescribed processing of the Cashier Treasury Division, FMD
Teller
Financial Management Department (FMD)
4. Presents the PAF at the Cashier and settles the required fee. 4. Forwards the PAF to the Assigned Personnel. None 5 minutes Executive Assistant
Office of the General Accountant
Processing Procedures
5. Submits letter explanation on noted findings in receiving department. 5. Acknowledges receipt of letter explanation and forwards the same to the Assistant Director for assignment. None 10 minutes Executive Assistant
Office of the General Accountant
    5.1. Forwards documents to assigned personnel with attached copy of completed Pre-Evaluation Sheet for evaluation.   10 minutes Assistant Director
Office of the General Accountant
    5.2. If no compliance is made within the prescribed period or compliance is not fully compliant with the requirements:      
      5.2.1. Prepares a letter denying the application for failure to comply with the requirements.   1 day Assigned Personnel
Office of the General Accountant
      5.2.2. Reviews letter and returns to Assigned Personnel to effect corrections.   20 minutes Assistant Director
Office of the General Accountant
      5.2.3. If draft letter is already acceptable, forwards the same to General Accountant for approval and signature.      
    5.3. If applicant meets threshold to qualify for accreditation but has noted material findings in the reviewed clients’ AFS:      
      5.3.1. Prepares an assessment letter and/or directive to submit amended AFS.   2 days Assigned Personnel
Office of the General Accountant
      5.3.2. Reviews letter and returns to Assigned Personnel to effect corrections.   20 minutes Assistant Director
Office of the General Accountant
      5.3.3. If draft letter is already acceptable, forwards the same to General Accountant for approval and signature.      
    5.4. Approves and signs letter.   20 minutes General Accountant
    5.5. Prepares letter for mailing.   20 minutes Index Tracking Personnel
Office of the General Accountant
6. Presents assessment letter. 6. Prepares Payment Assessment Form (PAF) for penalty and instructs applicant to process payment for penalty at the Cashier for issuance of official receipt. The assessed penalty is based on SEC MC Nos. 8 and 13/ Revised SRC Rule 68. 10 minutes Executive Assistant
Office of the General Accountant
7. Presents the PAF at the Cashier and settles the required penalty 7. Processes payment and issues O.R. None

10 minutes

*Subject to the prescribed processing of the Cashier Treasury Division, FMD

Teller
Financial Management Department (FMD)
8. Submits the machine- validated PAF to OGA 8. Records penalty collected and forwards PAF to Assistant Director. None 5 minutes Executive Assistant
Office of the General Accountant
    8.1. Forwards documents to assigned personnel to form part of application documents   5 minutes Assistant Director
Office of the General Accountant
    8.2. If applicant fully complies with the requirements and the operating departments have already provided a Memo-reply:   3 days Assigned Personnel
Office of the General Accountant
      8.2.1. 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 Com- missioner) then GO TO STEP 8.3, 8.4 and 8.7.      
      8.2.2. 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 8.5, 8.6 and 8.7.      
    8.3. Reviews Memorandum, Evaluation Sheets and other supporting documents and returns to Assigned Personnel to effect corrections.   20 minutes Assistant Director
      8.3.1. If Memorandum and other documents are already acceptable, forwards the same to General Accountant for approval and signature.      
    8.4. 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
    8.5. Reviews Evaluation Sheets and other supporting documents and returns to Assigned Personnel to effect corrections.   20 minutes Assistant Director
      8.5.1. If Evaluation Sheet and other documents are already acceptable, forwards the same to General Accountant for approval and signature      
    8.6. Approves and signs Evaluation Sheets and other supporting documents. Forwards the same to the Supervising Commissioner for final approval.   20 minutes General Accountant
    8.7. Reviews Memorandum/ Evaluation Sheet and other documents.   2 days Supervising Commissioner
Office of the Supervising Commissioner
      8.7.1. For Group A/B, if application is already acceptable, signs document for presentation by General Accountant to Commission En Banc.      
      8.7.2. For Group C, if application is already acceptable, signs Evaluation Sheet and returns application folder to OGA for preparation of certificate (GO TO STEP 9).      
    8.8. Presents Memorandum to the Commission En Banc for consideration (after clearance from Supervising Commissioner).   50 minutes General Accountant
    8.9. Receives advice of the resolution of the Commission En Banc on the application.   1 day Assigned Personnel
      8.9.1. If approved, GO TO STEP 9.      
      8.9.2. If denied/ deferred:      
        8.9.2.1. Denial: Notifies the applicant of the denial and reasons thereof.      
        8.9.2.2. Deferment: Notifies the applicant of the deferment and requirement to be complied with or necessary action to correct the deficiency.      
    8.10. Reviews letter and returns to Assigned Personnel to effect corrections   20 minutes Assistant Director
      8.10.1. If draft letter is already acceptable, forwards the same to General Accountant for approval and signature.      
    8.11. Approves and signs letter.   20 minutes General Accountant
    8.12. Prepares letter for mailing.   20 minutes Index Tracking Personnel
Office of the General Accountant
9. Presents authority to receive the certificate 9. Prepares Certificates of Accreditation: None    
    9.1. Prints two (2) copies   10 minutes Executive Assistant
Office of the General Accountant
    9.2. Checks details and Initials on copies   5 minutes Assigned Personnel
Office of the General Accountant
    9.3. Checks details and Initials on copies   5 minutes Assistant Director
    9.4. Signs certificates   5 minutes General Accountant
    9.5. Notifies applicant that the Certificate may be picked up (in case of representative, subject to presentation of authorization letter)   5 minutes Executive Assistant
    9.6. Releases Certificate of accreditation and forwards duplicate file to clerk   10 minutes Executive Assistant
    9.7. Logs in registry of Accredited Appraisal Companies; informs Index Tracking Personnel of the issuance of the certificate.   10 minutes Executive Assistant
    9.8. Provides MIS with updated list   30 minutes Executive Assistant
    9.9. Updates tracking system   30 minutes Index Tracking Personnel
Office of the General Accountant
   

SEC ACCREDITATION

Auditing Firm
Group A
Filing Fee: PHP 20,000.00
LRF*: PHP 200.00
Total: PHP 20,200.00

Group B
Filing Fee: PHP 15,000.00
LRF*: PHP 150.00
Total: PHP 15,150.00

Group C
Filing Fee: PHP 5,000.00
LRF*: PHP 50.00
Total: PHP 5,050.00

Annual Fee**
Group A – PHP2,500.00 per accredited partner + PHP20,000.00 for the firm

Group B – PHP2,000.00 per accredited partner + PHP15,000.00 for the firm

Group C – PHP1,500.00 per accredited partner + PHP5,000.00 for the firm

Individual Applicant-Practitioner
Group A
Filing Fee: PHP 5,000.00
LRF*: PHP 50.00
Total: PHP 5,050.00

Group B
Filing Fee: PHP 3,000.00
LRF*: PHP 30.00
Total: PHP 3,030.00

Group C
Filing Fee: PHP 2,000.00
LRF*: PHP 20.00
Total: PHP 2,020.00

Annual Fee**
Group C – PHP5,000.00 for each accredited sole practitioners

Documentary Stamp PHP30.00/applicationBSP ACCREDITATION

Auditing Firm
Initial or Renewal
Filing Fee: PHP 5,000.00
Total: PHP 5,000.00

External Auditor
Initial or Renewal
Filing Fee: PHP 2,000.00
Total: PHP 2,000.00IC ACCREDITATION

Auditing Firm
Initial or Renewal
Filing Fee: PHP 50,000.00
LRF*: PHP 500.00
Total: PHP 50,500.00

External Auditor
Initial or Renewal
Filing Fee: PHP 5,000.00
LRF*: PHP 50.00
Total: PHP 5,050.00

* Legal Research Fee is equivalent to 1% of the Filing Fee but not less than PHP10.00.

** Deferred until further notice

20 days  

Notes:

● 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) audit year SEC accreditation or a conditional accreditation for a period of one (1) audit year 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.

● In the event that the application is denied due to applicant’s failure to meet the required audit quality, such applicant can only re-apply for accreditation after six (6) months from said denial for the same category.

● Existing accredited external auditors under Group A & B can only apply for upgrading after one (1) year from the grant of their accreditation.