The Securities and Exchange Commission is inviting public comments on draft amendments to its accreditation rules for auditing firms and external auditors.
The proposed guidelines aim to strengthen oversight under the Revised Securities Regulation Code and SEC Memorandum Circular No. 20, Series of 2019.
One major change expands the scope of entities required to hire SEC-accredited auditors, including corporations holding significant government contracts.
Under the draft, firms with a single contract of at least Php, 100 million or combined contracts totaling Php, 150 million in a year would be classified under Group A.
The SEC is also raising auditor qualification standards. Group A applicants must have at least five corporate clients with assets of Php, 100 million each, while Group B applicants must have five clients with assets of Php, 50 million.
Smaller entities such as financing and lending firms, transfer agents, and nonprofits are included under Group C. The amendments cover financing firms with assets above Php, 10 million, lending firms with more than Php, 5 million, and nonprofits receiving donations over Php, 25 million or holding fund balances above Php, 100 million over three years.
The proposal introduces stricter sanctions for auditors, including suspension or revocation for repeated violations, fraud, concealment of material findings, or failure to comply with Philippine Standards on Auditing. Conditional accreditation will be limited and cannot be renewed repeatedly.
Companies with government contracts will be required to submit a notarized schedule detailing project descriptions, contract costs, status, and timelines alongside their financial statements. The SEC said the rules aim to improve audit quality, protect investors, and uphold integrity in financial reporting. Comments can be submitted until May 15, 2026.
