MORNBFI Vol. 1 - Planters Development Bank

§§ 4186Q.3 - 4190Q09.12.31NSSLAs, local Coop Banks, subsidiaries andaffiliates engaged in allied activities, andother FIs under BSP supervision.§ 4186Q.4 (2008 - 4164Q.4) Code ofethics and internal auditing standards. Theinternal auditor should conform with theCode of Professional Ethics for CPAs andensure compliance with sound internalauditing standards, such as the Institute ofInternal Auditors’ International Standards forthe Professional Practice of Internal Auditing(e-mail: standards@theiia.org; Web: http://www.theiia.org.) and other supplementalstandards issued by regulatory authorities/government agencies. The standards addressindependence and objectivity, professionalproficiency, scope of work, performance ofaudit work, management of internal audit,quality assurance reviews, communicationand monitoring of results.Secs. 4187Q - 4188Q (Reserved)Sec. 4189Q (2008 - 4180Q) Selection,Appointment, Reporting Requirements andDelisting of External Auditors and/orAuditing Firm; Sanction. Pursuant to Section58, R.A. No. 8791, and the existingprovisions of the executed Memorandum ofAgreement (MOA) dated 12 August 2009,binding the BSP, SEC, ProfessionalRegulation Commission (PRC) – Board ofAccountancy (BoA) and the InsuranceCommission (IC) for a simplified andsynchronized accreditation requirements forexternal auditor and/or auditing firm,following are the revised rules andregulations that shall govern the selectionand delisting by the BSP of coveredinstitutions which under special laws aresubject to BSP supervision.Statement of policy. It is the policy ofthe BSP to ensure effective audit andsupervision of banks, QBs, trust entities and/or NSSLAs including their subsidiaries andaffiliates engaged in allied activities and otherFIs which under special laws are subject toBSP supervision, and to ensure reliance byBSP and the public on the opinion ofexternal auditors and auditing firms byprescribing the rules and regulations thatshall govern the selection, appointment,reporting requirements and delisting forexternal auditors and auditing firms of saidinstitutions, subject to the binding provisionsof and implementing regulations pursuantto the aforesaid MOA.a. Rules and regulations. The revisedrules and regulations that shall to govern theselection and delisting by the BSP of coveredinstitutions which under special laws aresubject to BSP supervision are shown inAppendix Q-30.b. Sanctions. The applicable sanctions/penalties prescribed under Sections 36 and37 of R. A. No. 7653 to the extent applicableshall be imposed on the covered institution,its audit committee and the directorsapproving the hiring of external auditors/auditing firm who/which are not in the BSPlist of selected auditors for coveredinstitution or for hiring, and/or retaining theservices of the external auditor/auditing firmin violation of any of the provisions of thisSection and for non-compliance with theMonetary Board directive under Item “K" inAppendix Q-30. Erring external auditors/auditing firm may also be reported by the BSPto the PRC for appropriate disciplinary action.(As amended by Circular Nos. 660 dated 25 August 2009 and529 dated 11 May 2006)Sec. 4190Q (2008 - 4172Q) AuditedFinancial Statements of Quasi-Banks;Financial Audit. The following rules shallgovern the utilization and submission ofaudited financial statements (AFS) of QBs.For purposes of this Section, AFS shallinclude the balance sheets, incomestatements (IS), statements of changes inequity, statements of cash flows and notesto financial statements which shall includeamong other information, disclosure of theManual of Regulations for Non-Bank Financial InstitutionsQ RegulationsPart I - Page 53