Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1911)
The main subject is the adoption of the Philippine Standards on Auditing (PSA) and Philippine Auditing Practice Statements (PAPS) in the rules and regulations governing audits in the Philippines.
These auditing standards became effective for audits of financial statements ending on or after December 31, 2004, unless otherwise indicated in the circular.
They were approved by the Auditing Standards and Practices Council (ASPC).
SEC Resolution No. 11 Series of 2005 formally approved the adoption of the Philippine Standards on Auditing and Philippine Auditing Practice Statements in the Commission's rules and regulations.
Examples include PSA 100 'Assurance Engagements', PSA 240(Revised) 'The Auditor's Responsibility to Consider Fraud and Error in an Audit of Financial Statements', and PSA 600 'Using the Work of Another Auditor'.
Copies may be obtained at the offices of the Philippine Institute of Certified Public Accountants (PICPA).
The Memorandum Circular shall take effect fifteen (15) days following its publication in two (2) newspapers of general circulation.
Yes, it adopts the Philippine Auditing Practice Statement No. 1005, which covers special considerations in the audit of small business.
Yes, PAPS No. 1008 titled 'Risk Assessments and Internal Control - CIS Characteristics and Considerations' is included.
PSA 240(Revised) addresses the auditor's responsibility to consider fraud and error in an audit of financial statements.