Question & AnswerQ&A (PRC BOARD OF ACCOUNTANCYResolution NO. 43, S. 2009)
The main purpose is to adopt the pronouncements of the Auditing and Assurance Standards Council (AASC) as part of the Philippine Standards on Auditing.
The pronouncements are: PSA 260 (Revised and Redrafted) - Communication with Those Charged with Governance; PSA 720 (Redrafted) - The Auditor's Responsibility in Relation to Other Information in Documents Containing Audited Financial Statements; PSA 540 (Revised and Redrafted) - Accounting Estimates, Including Fair Value Estimates and Related Disclosures; PSA 230 (Redrafted) - Audit Documentation; PSA 560 (Redrafted) - Subsequent Events.
The AASC approves key auditing pronouncements and submits them to the Board of Accountancy for approval and adoption into the Philippine Standards on Auditing.
The resolution and pronouncements took effect 15 days after their publication in the Official Gazette or any newspaper of general circulation in the Philippines, whichever was earlier.
Practicing Certified Public Accountants (CPAs) in the Philippines are instructed to comply with these pronouncements.
PSA 260 (Revised and Redrafted) concerns communication with those charged with governance.
PSA 720 (Redrafted) addresses the auditor's responsibility in relation to other information in documents containing audited financial statements.
PSA 540 (Revised and Redrafted) covers accounting estimates, including fair value estimates and related disclosures.
PSA 230 (Redrafted) deals with audit documentation.
PSA 560 (Redrafted) concerns subsequent events affecting financial statements.