MORNBFI Vol. 1 - Planters Development Bank

APP. Q-3009.12.31b. A notarized undertaking of theexternal auditor that he is in compliancewith the qualification requirements underItem "E" and that the external auditor shallkeep an audit or review working papers forat least seven (7) years in sufficient detail tosupport the conclusion in the audit reportand making them available to the BSP’sauthorized representative/s when requiredto do so;c. Copy of Audit Work Program whichshall include assessment of the auditedinstitution’s compliance with BSP rules andregulations, such as, but not limited to thefollowing:(1) capital adequacy ratio, as currentlyprescribed by the BSP;(2) AMLA framework;(3) risk management system,particularly liquidity and market risks; and(4) loans and other risk assets reviewand classification, as currently prescribedby the BSP rules and regulations.d. If the applicant will have clientsfalling under Category A, copy of the QualityAssurance Manual which, aside from thebasic elements as required under the BOAbasic quality assurance policies andprocedures, specialized quality assuranceprocedures should be provided consistingof, among other, review asset quality,adequacy of risk-based capital, riskmanagement systems and corporategovernance framework of the coveredentities.e. Copy of the latest AFS of theapplicant’s two (2) largest clients in termsof total assets.2. Subject to BSP’s provision on earlydeletion from the list of selected externalauditor, the selection may be renewedwithin two (2) months before the expirationof the three (3)-year effectivity of theselection upon submission of the writtenapplication for renewal to the appropriatedepartment of the SES together with thefollowing documents/information:(a) copy of updated BOA Certificate ofAccreditation with the attached list ofqualified partner/s of the firm;(b) notarized certification of the externalauditor that he still possess all qualificationrequired under Item "F.1.b" of this Appendix;(c) list of corporate clients auditedduring the three (3)-year period of beingselected as external auditor by BSP. Suchlist shall likewise indicate the findings notedby the BSP and other regulatory agencieson said AFS including the action thereonby the external auditor; and(d) written proof that the auditor hasattended or participated in trainings for atleast thirty (30) hours in addition to theBOA’s prescribed training hours. Suchtraining shall be in subjects like internationalfinancial reporting standards, internationalstandards of auditing, corporategovernance, taxation, code of ethics,regulatory requirements of SEC, IC and BSPor other government agencies, and othertopics relevant to his practice, conductedby any professional organization orassociation duly recognized/accredited bythe BSP, SEC or by the BOA/PRC through aCPE Council which they may set up.The application for initial or renewalaccreditation of an external auditor shall beaccomplished by a fee of P2,000.00.G. APPLICATION FOR AND/ORRENEWAL OF THE SELECTION OFAUDITING FIRMS1. The initial application shall besigned by the managing partner of theauditing firm and shall be submitted tothe appropriate department of the SEStogether with the following documents/information:a. copy of effective and valid BOACertificate of Accreditation with attachmentlisting the names of qualified partners;b. notarized certification that the firmis in compliance with the generalqualification requirements under Item "E.2"Q RegulationsAppendix Q-30 - Page 6Manual of Regulations for Non-Bank Financial Institutions