Adoption of the Philippine Standards on Auditing

June 12, 2003 SEC MEMORANDUM CIRCULAR NO. 10-03 SUBJECT : Adoption of the Philippine Standards on Auditing The Commission, in its Resolution No. 213 Series of 2003 dated June 12, 2003, approved the adoption in its rules and regulations of the following Philippine Standards on Auditing approved by the Auditing Standards and Practices Council and the Board of Accountancy (BOA)/Professional Regulation Commission (PRC). Seven of these new auditing standards will become effective for audits of financial statements ending on or after June 30, 2003 and the other seven for audits of financial statements ending on or after December 31, 2003. PSAs No. Title Effective June 30, 2003 400 Risk Assessments and Internal Control 401 Auditing in a Computer Information Systems Environment 320 Audit Materiality 620 Using the Work of an Expert 250 Consideration of Laws and Regulations in an Audit of Financial Statements 1001 CIS Environment Stand-Alone Personal Computers 1002 CIS Environment On-Line Computer Systems Effective December 31, 2003 520 Analytical Procedures 610 Considering the Work of Internal Auditing 1003 CIS Environment Database Systems 920 Engagement on Agreed-Upon Procedures 910 Engagements to Review Financial Statements 1000 Inter-Bank Confirmation Procedures 500 Audit Evidence This Memorandum Circular shall take effect fifteen (15) days following its publication in a newspaper of general circulation. Issued this 12th day of June 2003 at EDSA, Greenhills, Mandaluyong City. ETDHaC (SGD.) LILIA R. BAUTISTA Chairperson