SEC: Firms must disclose fees paid to external auditors

To boost transparency and accountability in the reporting of financial and operational results, the Securities and Exchange Commission (SEC) is now requiring publicly listed companies to disclose fees paid to their external auditors.

- By RICHMOND MERCURIO

Through the issuance of Memorandum Circular 18, Series of 2024, the SEC has provided the guidelines on the disclosure of fee-related information of external auditors.

The guidelines will apply to the annual financial statements (AFS) of companies for the period ending Dec. 31, 2024 and thereafter.

It covers public interest entities such as listed companies, issuers which have sold a class of its securities, and public companies or firms with assets of at least P50 million and have 200 or more holders of at least 100 shares of a class of equity securities each.