Question & AnswerQ&A (PRC BOARD OF ACCOUNTANCY Resolution NO. 82)
The resolution adopts the Philippine Standard on Auditing (PSA) 402, which provides audit considerations relating to entities using service organizations.
It was adopted on October 28, 2002.
The resolution was approved by Antonieta Fortuna-Ibe, Chairperson, Alfonso G. Abad, Commissioner, and Avelina De La Rea-Tan, Commissioner.
Carlos G. Almelor, Secretary of the Professional Regulatory Board, attested the resolution.
Adopting PSA 402 standardizes audit procedures when dealing with entities using service organizations, ensuring consistency and reliability in audits.
A service organization is an entity that provides services to another organization that are relevant to the latter’s financial reporting.
The scope covers audit considerations that auditors must take into account when auditing entities that use service organizations.
Eugene Mateo was the Chairman of the Board of Accountancy at the time of adoption.
The text is available at the Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.