BSP Deputy Governor Nestor A. Espenilla Jr. said the MB has approved amendments to Circular No. 410.

"The amendments clearly say that if there are no matters to report, the external auditor should still submit within 15 days a notarized note that there is nothing to report," Espenilla said.

The circular, first approved in October 2003, is a policy promoting "high ethical and professional standards in public accounting practice and to encourage coordination and sharing of information between external auditors and regulatory authorities of banks, quasi-banks and trust entities to ensure effective audit and supervision and to avoid duplication of efforts."

The BSP lists qualified external auditors that the banks and trust companies can engage, but anyone not complying with the rules will be delisted.

Sources from the BSP said accounting and auditing giant SGV & Co. could be delisted as an accredited external auditor because it is not following notarization requirements.

SGV apparently only submit notarizations in the evidence of fraud, however the rule was scam or not, external auditors are required to notarize all transactions.

The circular policy was to ensure that reliance by regulatory authorities and the public on the opinion of external auditors is well placed.

Banks, quasi-banks and trust entities will engage only external auditors included in the BSP list of selected external auditors for their regular audit needs.