Extension on the Deadline of Compliance of Paragraphs 5.C. and 5.D. of Part III of the Revised SRC Rule 68

June 9, 2022 SEC MEMORANDUM CIRCULAR NO. 6, S. 2022 SUBJECT : Extension on the Deadline of Compliance of Paragraphs 5.C. and 5.D. of Part III of the Revised SRC Rule 68 Particularly on the Transition from Sole Practitioner to Partnership Structure and Two (2)-Partner Requirement WHEREAS , Paragraphs 5.C. and 5.D. of Part III of Revised SRC Rule 68 provides the following: "C. Compliance with the Two (2)-Partner Requirement Auditing firms which have less than two (2) partners as of the date of the effectivity of this Rule shall be given until 30 June 2022 within which to comply with the new two (2)-partner requirement. D. Compliance with the Transition from Sole Proprietorship to Partnership Sole practitioners as of the date of the effectivity of this Rule shall be given until 30 June 2022 within which to comply with the requirements to convert to a Partnership structure from Sole Proprietorship in order to continue being accredited by the Commission." WHEREAS , the Commission received requests from concerned firms and sole practitioners relative to the extension of the deadline of compliance with the above-requirements primarily due to the impact of the COVID-19 pandemic thru the Association of Certified Public Accountants in Public Practice. WHEREAS , finding merit on said requests, the Commission in its Meeting held on 09 June 2022, resolved to EXTEND THE DEADLINE OF 30 JUNE 2022 FOR FOUR (4) MORE YEARS OR UNTIL 30 JUNE 2026 WITHOUT FURTHER EXTENSION requiring all SEC accredited external auditors and auditing firms to comply with the requirements under the Revised SRC Rule 68 on the Transition from Sole Practitioner to Partnership Structure and Two (2)-Partner requirement. With said extension, the Office of the General Accountant will continue to accept applications for accreditation of sole practitioners and auditing firms with only one (1) partner only until 31 March 2026 to give way for transition to comply with the above-requirements of the Revised SRC Rule 68 with the commitment from applicants that they will comply with the said requirements by 30 June 2026. WHEREAS , this Memorandum Circular is hereby issued to effect the subject extension. This Memorandum Circular shall take effect after its publication in two (2) newspapers of general circulation. Pasay City, Philippines. (SGD.) EMILIO B. AQUINO Chairperson Published in the Philippine Daily Inquirer and The Philippine Star on June 15, 2022. Filed with UP Law Center on June 13, 2022.