MORNBFI Vol. 1 - Planters Development Bank

APP. Q-3009.12.31and that the firm shall keep an audit orreview working papers for at least seven(7) years insufficient detail to support theconclusions in the audit report and makingthem available to the BSP’s authorizedrepresentative/s when required to 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 firm will haveclients falling under Category A, copyQuality Assurance Manual where, asidefrom the basic elements as required underthe BOA basic quality assurance policiesand procedures, specialized qualityassurance procedures should be providedrelative to, among others review assetquality, adequacy of risk-based capital, riskmanagement systems and corporategovernance framework of covered entities;e. Copy of the latest AFS of theapplicant’s two (2) largest clients in termsof total assets; andf. Copy of firm’s AFS for theimmediately preceding two (2) years.2. Subject to BSP’s provision on earlydeletion from the list of selected auditingfirm, the selection may be renewed withintwo (2) months before the expiration of thethree (3)-year effectivity of the selection uponsubmission of the written application forrenewal to the appropriate department ofthe SES together with the followingdocuments/information:a. a copy of updated BOA Certificateof Registration with the attached list ofqualified partner/s of the firm;b. amendments on Quality AssuranceManual, inclusive of written explanation onsuch revision, if any; andc. notarized certification that the firmis in compliance with the generalqualification requirements under Item"G.1.b" hereof;The application for initial or renewalaccreditation of an auditing firm shall beaccompanied by a fee of P5,000.00.H. REPORTORIAL REQUIREMENTS1. To enable the BSP to take timely andappropriate remedial action, the externalauditor and/or auditing firm must report tothe BSP within thirty (30) calendar days afterdiscovery, the following cases:a. Any material finding involving fraudor dishonesty (including cases that wereresolved during the period of audit);b. Any potential losses the aggregate ofwhich amounts to at least one percent (1%)of the capital;c. Any finding to the effect that theconsolidated assets of the company, on agoing concern basis, are no longeradequate to cover the total claims ofcreditors; andd. Material internal control weaknesseswhich may lead to financial reportingproblems.2. The external auditor/auditing firmshall report directly to the BSP within fifteen(15) calendar days from the occurrence ofthe following:a. Termination or resignation asexternal auditor and stating the reasontherefor;b. Discovery of a material breach oflaws or BSP rules and regulations such as,but not limited to:(1) CAR; and(2) Loans and other risk assets reviewand classification.c. Findings on matters of corporategovernance that may require urgent actionby the BSP.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-30 - Page 7