PHILIPPINES: SEC MOVES TO TIGHTEN AUDIT STANDARDS

Tuesday April 7 2026

On 6^th April 2026, the Securities and Exchange Commission (SEC) announced that it is moving to tighten oversight and elevate qualification standards for auditing firms and external auditors, in a bid to further safeguard the investing public and prevent corruption by expanding scrutiny to government contractors.

The Commission on April 1 issued for public comment the draft memorandum circular containing amendments in SEC accreditation guidelines of auditing firms and external auditors.

The proposal seeks to amend pertinent provisions on the accreditation of independent auditors of SEC-regulated entities under Revised Rule 68 of Republic Act No. 8799, or the Securities Regulation Code.

The SEC accredits auditing firms and independent auditors for quality assurance review. They are classified into three categories: Group A is for issuers of registered securities, except timeshares/membership certificates; listed companies; public companies with assets of at least P50 million and 200 or more holders; clearing agencies and clearing agencies as depositories; as well as stock exchanges and other self-regulatory organizations.

Group B covers investment houses, brokers and dealers of securities, investment companies, government securities eligible dealers, and universal banks registered as underwriters, as well as issuers of registered timeshares and membership certificates.

Meanwhile, Group C includes financing companies with assets over P10 million, lending companies with assets over P5 million, and transfer agents.

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