The Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Insurance Commission (IC) and the Professional Regulatory Board of Accountancy (BOA) signed a Memorandum of Agreement (MOA) on 12 August 2009 simplifying the accreditation process for external auditors. The MOA is part of the continuing efforts of the regulators to promote adherence to quality control standards in auditing for the ultimate purpose of enhancing quality and transparency in financial reporting.
The MOA generally provides a framework for harmonizing the different accreditation process of the regulatory agencies by streamlining their documentary requirements and procedures for accreditation. Moreover, it strengthens the cooperative stance of regulators as it sets forth the guidelines for coordination and information exchange.
The BSP, SEC and IC have until 31 December 2009 to issue their revised rules on the accreditation of external auditors to pave the way for the implementation of the provisions of the MOA. The changes that will be introduced by the regulators will lead to the rationalization of the documentary and qualification requirements as said agencies will no longer ask for those that are already required by BOA. The BSP, SEC and IC will also prescribe a common set of minimum requirements, which will only be supplemented by other conditions that are pertinent for those auditing their respective regulated entities. Moreover, they will also observe a mutual recognition policy on auditors that they have individually accredited for certain pre-agreed types of institutions.
The MOA simplifying the accreditation process for external auditors was developed under the auspices of the Financial Sector Forum (FSF), which is a voluntary interagency body created to provide an institutionalized framework for coordinating the supervision and regulation of the financial system. The BSP, SEC, IC and the Philippine Deposit Insurance Corporation are the members of the FSF.