BATAS PAMBANSA BILANG 178
THE REVISED SECURITIES ACT
CHAPTER II
Registration of Securities
Sec. 4. Requirement of registration of securities. — (a) No securities, except of a class
exempt under any of the provisions of Section five hereof or unless sold in any
transaction exempt under any of the provisions of Section six hereof, shall be sold or
offered for sale or distribution to the public within the Philippine unless such securities
shall have been registered and permitted to be sold as hereinafter provided.
(b) Notwithstanding the provisions of paragraph (a) of this Section and the succeeding
Sections regarding exemptions, no commercial paper as defined in Section two hereof
shall be issued, endorsed, sold, transferred or in any other manner conveyed to the
public, unless registered in accordance with the rules and regulations that shall be
promulgated in the public interest and for the protection of investors by the Commission.
The Commission, however, with due regard to the public interest and the protection of
investors, may, by rules and regulations, exempt from registration any commercial
paper that may otherwise be covered by this paragraph. In either case, the rules and
regulations promulgated by the Commission shall be subject to the approval of the
Monetary Board of the Central Bank of the Philippines. The Monetary Board shall,
however, have the power to promulgate its own rules on the monetary and credit
aspects of commercial paper issues, which may include the imposition of ceilings on
issues by any single borrower, and the authority to supervise the enforcement of such
rules and to require issues of commercial papers to submit their financial statements
and such periodic reports as may be necessary for such enforcement. As far as
practicable, such financial statements and periodic reports, when required by both the
Commission and the Monetary Board, shall be uniform. chanrobles virtual law library
(c) A record of the registration of securities shall be kept in a Register of Securities in
which shall be recorded orders entered by the Commission with respect to such
securities. Such register and all documents or information with respect to the securities
registered therein shall be open to the public inspection at reasonable hours on
business days. chanrobles virtual law library.
REPUBLIC ACT NO. 3456
REPUBLIC ACT NO. 3456 - AN ACT PROVIDING FOR THE CREATION,
ORGANIZATION AND OPERATION OF INTERNAL AUDIT SERVICES IN ALL
DEPARTMENTS, BUREAUS AND OFFICES OF THE NATIONAL GOVERNMENT
Section 1. The title of this Act shall be "Internal Auditing Act of 1962."
Sec. 2. There shall be created, organized and operated in all departments, bureaus and
offices of the National Government, internal audit services which shall assist
management to achieve an efficient and effective fiscal administration and performance
of agency affairs and functions.
Sec. 3. The Internal Audit Service shall be under the direct administrative supervision
and control of the chief and/or assistant chief of the agency. It shall be organized as an
independent staff unit and shall correspondingly perform staff functions. It shall be
responsible for instituting and conducting a program of internal audit for the agency. The
chief of the Internal Audit Service shall have the rank and salary equivalent to the third
ranking official of the agency. He shall report directly to the chief or assistant chief of the
agency.
Sec. 4. The Auditor General shall be responsible for the promulgation and enforcement
of general policies, rules and regulations on internal auditing. He shall coordinate and
schedule the gradual installation of internal audit services in all departments, bureaus
and offices in the National Government, and shall develop for execution, working plans
and training programs to maintain continuously the effectiveness of these internal audit
services. The Internal Auditing Coordinating Staff of the General Auditing Office shall
assist the Auditor General in the discharge of these responsibilities.
Sec. 5. Such sums as may be necessary for the implementation of this Act shall be
included in the annual General Appropriations Act beginning with the fiscal year
nineteen hundred and sixty-three.
Sec. 6. This Act shall take effect upon its approval.
Approved: June 16, 1962.
What is 'Positive Confirmation'
Positive confirmation is an auditing inquiry that requires the customer to respond to the
auditor whether the customer's records do or do not correspond with the auditor's
records. Positive confirmation requires proof of accuracy, affirming that the original
information was correct or providing the correct information if the original information is
found to be inaccurate.
BREAKING DOWN 'Positive Confirmation'
Both positive and negative confirmation are used in auditing accounts receivable.
Positive confirmation is the more involved of the two options, as records must be
produced even if the original information was correct; it is more likely to be used if the
company's books are suspected to have errors.
What is 'Negative Confirmation'
Negative confirmation is a method of communication that requests a message recipient
only respond to the sender of the message in the event the message recipient has a
problem with the contents of the message or wants to opt out of the event the message
is discussing. It can be used in many types of business situations and is often used in
the financial industry. The purpose of a negative confirmation communication is to
reduce the number of incoming responses an organization receives in response to a
message it sends to its client base. In a negative confirmation or negative consent
communication situation, the company or entity sending the message only receives
responses from "no" votes, as opposed to responses from everybody regardless of their
opinion.
BREAKING DOWN 'Negative Confirmation'
Negative confirmation as applied to the auditing process is a request by an auditor sent
to a sample of a company's customers asking them to respond only if they find a
discrepancy between their books and the account recorded on the financial statements
of the company being audited. Negative confirmation is used when the accounting
controls of a company have historically had very few errors and are thus considered to
be strong. The company is asked to double-check the numbers and only confirm if there
is a discrepancy.
Positive vs. Negative Confirmation
While positive confirmation requires supporting information regardless of whether the
original records are accurate, negative confirmation requires a response only if there is
a discrepancy. During a negative confirmation request, a business may be asked to
confirm that an account balance is listed at a specific amount, such as $100,000. If the
account balance currently reflects the amount as $100,000, then no additional action is
required to satisfy the request. If the balance reflects any amount aside from $100,000,
additional information must be provided to justify the difference.
Negative confirmation is more commonly used if the individual's or business's records
are generally considered to be highly accurate by nature, often based on stringent
internal requirements or business practices.
