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Between National Government Agencies, issued by the Philippine Office of the Solicitor General (OSG), took effect. The Rules cover disputes between any government entity, office or officer, other than a court with the power to adjudicate or resolve disputes, and other than a government owned or controlled corporation. The Solicitor General (SolGen) shall choose the most appropriate ADR for a particular dispute. However, those involving constitutional issues, public order, public policy, morals, principles of public exemplarity or other matters of public interest, shall be resolved through adjudication. Mediation shall be conducted by an accredited OSG lawyer-mediator, either chosen by the parties or by the Assistant SolGen assigned. The mediation shall be terminated after 30 days from the initial mediation conference, unless the parties request for an extension of another 30 days, and the request is granted by the mediator with the written approval of the SolGen. Arbitration is declared to be a condition precedent before disputants may file complaints before the regular courts. The petition to arbitrate is filed before the SolGen, who then orders the respondent to file an answer. The failure of the respondent to answer and participate shall not affect the arbitration proceedings. The dispute may be resolved on the basis of the complaint and its supporting documents. The SolGen shall choose either a sole arbitrator or panel of arbitrators depending on the complexities of the dispute, but all from the list of accredited OSG lawyer-arbitrators. The parties may agree on the procedure but, in default, the procedure provided in the Rules shall primarily govern. The arbitral award is transmitted to the Secretary of Justice within 10 days for final action approving, disapproving, or modifying the award. A motion to vacate, modify or correct an arbitral award may be filed with the Secretary of Justice within 10 days from receipt. The order of the Secretary of Justice may be appealed to the Office of the President within 15 days from receipt; otherwise, the arbitral award shall become final and executory. www.legalbusinessonline.com
Written By Ricardo Ma. P.G. Ongkiko, Partner SyCip Salazar Hernandez & Gatmaitan 3rd Floor, SSHG Law Centre 105 Paseo de Roxas 1226 Makati City, Philippines T: (632) 982 3500; (632) 982 3600 F: (632) 817 3896; (632) 817 3567 E: rmpgongkiko@syciplaw.com W: www.syciplaw.com
SINGAPORE
Joint Effort Of Sgx And Acra In Providing Guidance To Audit Committees 1. The effective interaction between Audit Committees (“AC”) and external auditors plays a critical role in preserving the quality of audit outcome as well as promoting the effectiveness of corporate governance framework. The value of audit is enhanced when auditors are able to engage the AC effectively on all audit and related matters and that the audit report is further substantiated by underlying audit work of high quality. In view of this, the Accounting and Corporate Regulatory Authority (ACRA) and the Singapore Exchange Limited (SGX) have jointly issued the “Guidance to Audit Committees on Evaluation of Quality of Work Performed by External Auditors” on 15 July 2010 (“Guidance”). 2. The Guidance provides practical guidelines to AC to assist them in the evaluation of the quality of work performed by external auditors based on key indicators of audit quality observed through a programme developed by ACRA that assesses public accountants’ compliance with auditing standards and pronouncements known as Practice Monitoring Programme (PMP). 3. The key indicators of audit quality are known as E-A-S-E indicators and these represent: (a) Emphasis on quality by the audit
engagement partner and the audit firm; (b) Allocation of adequate and appropriate human resources; (c) Substantial involvement of the audit engagement partner; and (d) Exercise of professional scepticism. 4. The Guidance encourages the AC to ask for a description of the audit firm’s quality control system; to observe as to the priority placed in ensuring robustness and effectiveness of such controls and further that the audit plan be presented, discussed and approved at the early stage of the audit cycle. AC are also advised to assess the sufficiency of the audit partner and team members’ experience and to enquire as to the extent of the audit partner’s involvement in the audit. More importantly, AC are advised to be alert to the auditors’ level of professional scepticism and their willingness to speak up on key issues and to challenge management’s assertions to contribute towards the effectiveness of the audit. 5. The Guidance is not expected to impose additional compliance requirements or to replace any existing requirements to which AC may already be subject. It should be used predominantly by AC, company directors and persons involved in corporate governance activities and financial reporting. 6. For a better understanding of the Guidance, a list of sample questions directly relevant to the identified indicators is also annexed to the Guidance. The Guidance is available on the websites of ACRA (www.acra.gov. sg) and SGX (www.sgx.com). Written by Mr Teo Boon Hai and Ms Chew Lee Sian Mr Teo Boon Hai, Foreign Counsel Legal Associate (Corporate Practice) Ph: (65) 6322-2235 ax: (65) 6534-0833 E-mail: teoboonhai@loopartners. com.sg and Ms Chew Lee Sian, Foreign Counsel Legal Associate (Corporate Practice) Ph: (65) 6322-2237 Fax: (65) 6534-0833 E-mail: chewleesian@loopartners. com.sg Loo & Partners LLP 16 Gemmill Lane Singapore 069254
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