SEC Tightens Accreditation Rules for Auditors of Government Contractors

The Securities and Exchange Commission (SEC) in the Philippines is set to tighten audit requirements for companies that have government contracts, as scrutiny of public infrastructure projects intensifies amid the flood control scandal. Under SEC Memorandum Circular No. 26, Series of 2026, the corporate regulator has amended its accreditation guidelines for auditing firms to enhance the quality of audit work and ensure transparency in public contracting. This regulatory tightening is a measure aimed at preventing fraud and irregularities in the execution of public projects and ensuring that taxpayers' money is used appropriately. Infrastructure development, in particular, is a crucial element for the growth of the Philippine economy, and ensuring reliability and accountability in its implementation is a pressing issue. With the revised regulations, government contractors and their auditors will be required to meet more stringent audit standards. This is expected to improve the credibility of audit reports and contribute to the sound operation of public projects. Allegations of corruption related to public works have been repeatedly pointed out in the Philippines in the past, and the SEC's move is being watched as a response to such issues. Source: Inquirer Business