The Philippine Securities and Exchange Commission (SEC) has issued draft amendments for public comment that would tighten the accreditation of auditing firms and external auditors and extend Group A audit requirements to major government contractors. Corporations with a single government contract of at least PHP 100 million, or combined contracts of at least PHP 150 million within a reporting year, would have to retain a Group A-accredited external auditor until the projects are completed or delivered. They would also submit a notarized schedule of project descriptions, costs and status covered by an auditor’s report. The proposal would raise experience requirements across all three accreditation groups. Applicants would need at least five corporate clients, with minimum assets of PHP 100 million each for Group A, PHP 50 million each for Group B and PHP 5 million each for Group C. New grounds for outright denial would include misrepresentation or concealment during an evaluation, an unqualified opinion despite material misstatements arising from an incorrect accounting framework, six or more material findings in one set of financial statements, and failures of auditor independence, including directly preparing a client’s financial statements. Comments are due by May 15.
2026-04-06Philippine Securities and Exchange Commission
Philippine Securities and Exchange Commission consults on tighter auditor accreditation and Group A audits for major government contractors
The Philippine Securities and Exchange Commission is consulting on tighter auditor accreditation standards and mandatory Group A audits for corporations with major government contracts. The proposal raises applicants’ experience thresholds and expands the grounds for outright denial of accreditation. Comments are due by May 15.