Question & AnswerQ&A (NEA GUIDELINES ON NEA ACCREDITATION OF EXTERNAL AUDITORS OF ELECTRIC COOPERATIVES)
The accreditation must be approved by the NEA Administrator as recommended by the Committee on the Accreditation of External Auditors for Electric Cooperatives.
An External Auditor's audit services shall not exceed five (5) consecutive years to enhance auditor independence.
The auditor must be registered with the SEC or DTI, accredited by BIR and BOA, have an audit team including a senior partner and at least five CPA key audit staff employed for at least six months before application, and must have at least three years of public accounting experience.
Documents include the application letter, authenticated SEC/DTI registration, valid BIR and BOA certificates of accreditation, company and audit organizational charts, plantilla of audit personnel with CPA licenses, copies of CPA licenses, professional qualifications of partners, client list with engagement periods, and a sworn statement attesting to the authenticity of documents.
Non-compliance can result in the cancellation of the External Auditor’s accreditation and may lead to the imposition of penalties including fines.
A penalty of Php15,000.00 is imposed for each EC if audit reports and management letters are submitted late or if financial statements are audited by unaccredited or expired accreditation External Auditors.
External Auditors must submit a copy of the Audit Report and Management Letter to the NEA Finance Services Department through the ITCSD-RMU on or before April 15 of the year following the audit period. Hard copies must be submitted within one week if reports are submitted online.
Cancellation grounds include expiration without timely renewal, non-compliance with reportorial and engagement requirements, loss of independence in audit conduct, revocation of CPA license/registration, and material misrepresentation in application or documents.