MORNBFI Vol. 1 - Planters Development Bank

APP. Q-3009.12.312. An auditing firms; accreditationshall be suspended or delisted, after duenotice and hearing, for the followinggrounds:a. Failure to submit the report underItem "H" or the required reports under Sec.X190.1.b. Continuous conduct of auditdespite loss of independence of the firm asprovided under this regulation and underthe Code of Professional Ethics;c. Any willful misrepresentation in thefollowing information/ documents;(1) Application and renewal foraccreditation;(2) Report required under Item "H";and(3) Notarized certification of themanaging partner of the firm.d. Dissolution of the auditing firm/partnership, as evidenced by an Affidavitof Dissolution submitted to the BOA, orupon findings by the BSP that the firm/partnership is dissolved. The accreditationof such firm/partnership shall however bereinstated by the BSP upon showing thatthe said dissolution was solely for thepurpose of admitting new partner/s havecomplied with the requirements of thisregulation and thereafter shall bereorganized and re-registered;e. There is a showing that theaccreditation of the following number orpercentage of external auditors, whicheveris lesser, have been suspended or delistedfor whatever reason, by the BSP:(1) at least ten (10) signing partners andcurrently employed selected/accreditedexternal auditors, taken together; or(2) such number of external auditorsconstituting fifty percent (50%) or more ofthe total number of the firm’s signingpartners and currently selected/accreditedauditors, taken together.f. The firm or any one (1) of its auditorshas been involved in a major accounting/auditing scam or scandal. The suspensionor delisting of the said firm shall depend onthe gravity of the offense or the impact ofsaid scam or scandal on the investing publicor the securities market, as may bedetermined by the BSP;g. The firm has failed reasonably tosupervise an associated person andemployed auditor, relating to the following:(1) auditing or quality control standards,or otherwise, with a view to preventingviolations of this regulations;(2) provisions under SRC relating topreparation and issuance of audit reportsand the obligations and liabilities ofaccountants with respect thereto;(3) the rules of the BSP under thisAppendix; or(4) professional standards.h. Refusal for no valid reason, uponorder of the BSP, to submit requesteddocuments in connection with an ongoinginvestigation. The firm should however bemade aware of such investigation.3. Pursuant to paragraph 8 of theaforesaid MOA, the SEC, BSP and IC shallinform BOA of any violation by anaccredited/selected external auditor whichmay affect his/her accreditation status as apublic practitioner. The imposition ofsanction by BOA on an erring practitionershall be without prejudice to the appropriatepenalty that the SEC, IC or BSP may assessor impose on such external auditor pursuantto their respective rules and regulations. Incase of revocation of accreditation of a publicpractitioner by BOA, the accreditation bySEC, BSP and IC shall likewise beautomatically revoked/derecognized.The SEC, BSP and IC shall inform eachother of any violation committed by anexternal auditor who is accredited/selectedby any one (1) or all of them. Each agencyshall undertake to respond on any referralor endorsement by another agency withinten (10) working days from receipt thereof.4. Procedure and Effects of Delisting/Suspension.Manual of Regulations for Non-Bank Financial InstitutionsQ RegulationsAppendix Q-30 - Page 9