Question & AnswerQ&A (PRC BOARD OF ACCOUNTANCY Resolution NO. 44, S. 2009)
The resolution adopts the pronouncements of the Auditing and Assurance Standards Council (AASC) as part of the Philippine Standards on Auditing for compliance by practicing Certified Public Accountants.
Key pronouncements include PSA 200 (Overall Objectives of the Independent Auditor and Conduct of an Audit), PSA 250 (Consideration of Laws and Regulations in an Audit), PSA 320 (Materiality in Planning and Performing an Audit), PSA 450 (Evaluation of Misstatements during the Audit), and others related to auditing standards.
The pronouncements were initially approved by the Auditing and Assurance Standards Council (AASC).
These pronouncements took effect fifteen (15) days after their publication in the Official Gazette or any newspaper of general circulation in the Philippines, whichever came first.
The Board reviewed and found the pronouncements to be well-taken and instructive, and resolved to adopt them for mandatory compliance by practicing Certified Public Accountants.
PSA 200 deals with the overall objectives of the independent auditor and the conduct of an audit in accordance with Philippine Standards on Auditing.
PSA 250 addresses the auditor's considerations of laws and regulations during the audit of financial statements.
PSA 450 covers the evaluation of misstatements identified during the audit.
Practicing Certified Public Accountants in the Philippines are required to comply with the adopted Philippine Standards on Auditing.
They ensure consistency and integration of the pronouncements with the Preface to the Philippine Standards on Quality Control, Auditing, Review, Other Assurance and Related Services, and other Philippine Standards on Auditing.