QuestionsQuestions (PRC BOARD OF ACCOUNTANCY Resolution NO. 82)
It concerns the adoption of the Philippine Standard on Auditing (PSA) 402-Audit Considerations Relating to Entities Using Service Organizations.
It was adopted on October 28, 2002.
PSA 402-Audit Considerations Relating to Entities Using Service Organization.
Eugene Mateo, Chairman.
Solita V. Delantar, John S. Bala, Froilan G. Ampil, and Estelita C. Aguirre.
Carlos G. Almelo(r), Secretary, Professional Regulatory Board.
Antoinieta Fortuna-Ibe as Chairperson, and Alfonso G. Abad and Avelina De la Rea-Tan as Commissioners.
It adopts a specific PSA (PSA 402) for auditors, particularly concerning audit considerations when the client uses a service organization.
The adopted PSA becomes part of the applicable auditing framework that auditors in the Philippines should follow when performing audits involving service organizations, subject to the PRC’s regulatory implementation.
The text states it appears in the NAR (NATIONAL ADMINISTRATIVE REGISTER) Vol. 13 Nos. 1-4, Oct-Dec 2002; this is relevant as it indicates official administrative register publication, which helps establish notice and official character.
Because when a client relies on a service organization, the auditor must consider how the services provided affect the client’s financial information and the audit risk.
By examining the signatories and attestations: it is issued by the PRC Board of Accountancy, attested by the Professional Regulatory Board Secretary, and approved by PRC Commissioners.
It says the text is available at the Office of the National Administrative Register, U.P. Law Complex, Diliman, Quezon City.
Based on the provided excerpt, it primarily adopts PSA 402; it does not reproduce the PSA content, which is referenced as available elsewhere (via NAR office).
“Adopted” refers to the Board’s action in passing the resolution; “approved” refers to endorsement/approval by PRC leadership (Chairperson and Commissioners) and reflects internal administrative concurrence/approval requirements.
It is an administrative issuance by a professional regulatory body that adopts an auditing standard (PSA 402) to guide professional practice in a defined auditing context.