MORNBFI Vol. 1 - Planters Development Bank

APP. Q-3009.12.31a. An external auditor/auditing firmshall only be delisted upon prior notice tohim/it and after giving him/it the opportunityto be heard and defend himself/itself bypresenting witnesses/ evidence in his favor.Delisted external auditor and/or auditingfirm may re-apply for BSP selection after theperiod prescribed by the Monetary Board.b. BSP shall keep a record of itsproceeding/investigation. Said proceedings/investigation shall not be public, unlessotherwise ordered by the Monetary Boardfor good cause shown, with the consent ofthe parties to such proceedings.c. A determination of the MonetaryBoard to impose a suspension or delistingunder this section shall be supported by aclear statement setting forth the following:(1) Each act or practice in which theselected/accredited external auditor orauditing firm, or associated entry, ifapplicable, has engaged or omitted toengage, or that forms a basis for all or partof such suspension/delisting;(2) The specific provision/s of thisregulation, the related SEC rules orprofessional standards which the MonetaryBoard determined as has been violated; and(3) The imposed suspension ordelisting, including a justification for eithersanction and the period and otherrequirements specially required withinwhich the delisted auditing firm or externalauditor may apply for re-accreditation.d. The suspension/delisting, includingthe sanctions/penalties provided in Sec.X189 shall only apply to:(1) Intentional or knowing conduct,including reckless conduct, that results inviolation or applicable statutory, regulatoryor professional standards; or(2) Repeated instances of negligentconduct, each resulting in a violation of theapplicable statutory, regulatory orprofessional standards.e. No associate person or employedauditor of a selected/accredited auditingfirm shall be deemed to have failedreasonably to supervise any other personfor purpose of Item "I.2.g" above, if:(1) There have been established in andfor that firm procedures, and a system forapplying such procedures, that comply withapplicable rules of BSP and that wouldreasonably be expected to prevent anddetect any such violation by such associatedperson; and(2) Such person or auditor hasreasonably discharged the duties andobligations incumbent upon that person byreason of such procedures and system, andhad no reasonable cause to believe that suchprocedures and system were not beingcomplied with.f. The BSP shall discipline anyselected external auditor that is suspendedor delisted from being associated with anyselected auditing firm, or for any selectedauditing firm that knew, or in the exerciseor reasonable care should have known,of the suspension or delisting of anyselected external auditor, to permit suchassociation, without the consent of theMonetary Board.g. The BSP shall discipline any coveredinstitution that knew or in the exercise ofreasonable care should have known, of thesuspension or delisting of its external auditoror auditing firm, without the consent of theMonetary Board.h. The BSP shall establish forappropriate cases an expedited procedurefor consideration and determination of thequestion of the duration of stay of any suchdisciplinary action pending review of anydisciplinary action of the BSP under thisSection.J. SPECIFIC REVIEWWhen warranted by supervisoryconcern, the Monetary Board may, at theexpense of the covered institution requirethe external auditor and/or auditing firm toundertake a specific review of a particularQ RegulationsAppendix Q-30 - Page 10Manual of Regulations for Non-Bank Financial Institutions