Question & AnswerQ&A (PRC BOARD OF ACCOUNTANCY Resolution NO. 14, SERIES 2004)
The resolution adopts the Philippine Standards on Auditing (PSA) 240, which addresses the auditor's responsibility to consider fraud and error in the audit of financial statements.
The Auditing Standards and Practices Council (ASPC) approved PSA 240 before submitting it to the Board for approval.
PSA 240 deals with the auditor's responsibility to consider fraud and error in the audit of financial statements.
PSA 240 becomes part of the Philippine Standards of Auditing and must be complied with by practicing Certified Public Accountants.
The Board adopted PSA 240 on February 9, 2003.
The resolution and PSA 240 took effect 15 days after their publication in the Official Gazette or in a newspaper of general circulation in the Philippines, whichever was earlier.
Practicing Certified Public Accountants (CPAs) in the Philippines are required to follow PSA 240.
It guides auditors in their responsibility to detect and consider the possibility of fraud and error during financial statement audits, thereby enhancing audit quality and reliability.
The resolution is attested by the Secretary of Professional Regulatory Boards, in this case, Carlos G. Almelor.
Eugene T. Mateo was the Chairman of the Board of Accountancy who signed the resolution, while Antonieta Fortuna-Ibe was the Chairperson who approved the resolution.