The Philippine Securities and Exchange Commission has issued amended external auditor accreditation rules that extend its audit oversight to major government contractors and raise qualification and evaluation standards across all accreditation groups. Covered contractors must retain the accredited auditor until their government projects are completed or delivered, and the new audit requirements apply to annual or interim financial statements for fiscal years or periods ending on or after June 30, 2027. Contractors with a single government contract exceeding PHP 750 million or cumulative contracts exceeding PHP 1 billion must engage a Group A auditor. Group B auditors are required for single contracts of PHP 400 million to PHP 750 million or cumulative contracts of PHP 500 million to PHP 1 billion. Covered companies must also submit a notarized schedule of project descriptions, costs and status accompanied by an auditor’s report. The amendments increase applicants’ required number and size of corporate clients and add nine grounds for outright denial, including misrepresentation during evaluation, certain materially incorrect unqualified audit opinions and failures to maintain independence. Five-year Group A or Group B accreditation will be subject to tighter limits on material and minor findings in the financial statements reviewed. Requirements other than those governing audits of financial statements take effect after publication of the memorandum circular.

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