The company through its BOD or Audit Committee should conduct due diligence in confirming professional qualifications of the external auditor.
The company should require the auditor to present a copy of his professional license from the PRC and Certificate of Accreditation issued by the BOA to the auditing firm if he is a partner thereof.
The company should confirm by checking the list of accredited practitioners issued by the BOA, along with expiration date counted 3 years from the year of issuance.
The company through its BOD or audit committee should closely monitor whether its external auditor is personally conducting the audit. Planning meetings and exit meetings should be attended personally by the handling partner.
A complete documentation of the foregoing requirements should be retained by the company.
Failure to comply with any of the foregoing requirements shall make the company liable for the fines provided in SEC Memorandum Circular No. 8 Series of 2009, or any amendments thereto.