PRACTICE AND REGULATION OF THE

ACCOUNTANCY PROFESSION  Term of Office – 3 years

o Not more than 12 years
 RA 9298 – the Philippine Accountancy Act o After 2 successive complete terms, 1
of 2004 year lapse before reappointment
 Objectives: o Vacancy shall be filled up for
o Standardization & regulation of unexpired portion only and shall not
accounting education be considered as a complete term
o Examination for registration of
CPAs  Powers & Functions of BOA
o Supervision, control, & o Prescribe & adopt the rules &
regulations necessary
regulation of the practice of
o Supervise the registration, licensure,
accountancy in the Philippines
and practice of accountancy
 PRC & BOA – to effectively enforce the o Administer oaths in connection with
provisions of RA 9298 the administration of RA 9298
 Secretary of Justice – legal adviser to PRC o Issue, suspend, revoke, or reinstate
and BOA certificate of registration
o Adopt an official seal of BOA
SCOPE OF PRACTICE
o Prescribe / adopt a code of ethics
1. Public – there should be a client-service
o Monitor the conditions affecting the
provider relationship present
practice of accountancy
2. Commerce & Industry – employer-
o Conduct an oversight into the quality
employee relationship
of audits
 CPA is a must if: o Investigate violations of RA 9298
o Paid-up capital > 5M o Make investigations as it deems
o Annual revenue > 10M necessary to determine whether any
3. Government – employer-employee person has violated any provisions
relationship must be present o Issue a cease & desist order to any
- Involves GOCC entities violator of RA 9298
4. Academe – involves teaching o Punish for contempt of BOA
o Prepare, adopt, issue, or amend the
BOARD OF ACCOUNTANCY (BOA) syllabi of the subjects for
- 1 chairman & 6 members examinations, determine and
- 1 vice chairman from the members prepare questions for examination
- Sectors must be equitably represented o Ensure that all higher educational
institution and offering of
APO / accountancy comply with the
PRC President
PICPA requirements prescribed by CHED
o Exercise other powers as may be
5 nominees 3 recommendees 1 appointee provided by law

 Grounds for Suspension / Removal

 Qualification of Members o Neglect of duty or incompetence
 Natural born resident citizen o Violation or tolerance of any
 CPA w/ at least 10 year experience in violation of RA 9298, code of ethics,
any scope and other standards of practice
 With good moral character o Final judgment of crimes involving
 No pecuniary interest in any moral turpitude
educational institution o Manipulation or rigging of the CPA
 Not a director / officer of APO during licensure examination results,
his appointment disclosure of secret and confidential
information
EXAMINATION, REGISTRATION, AND LICENSURE
EXAMINATION OF CPAS

 Qualifications of Applications  Refusal to Issue

Filipino citizen Certificate of Live o Convicted of criminal offenses
Birth (PSA) involving moral turpitude
Good moral character Valid NBI Clearance o Guilty of immoral & dishonorable
BSA degree holder Transcript of Records conduct
- Married female applicants shall submit a o Unsound mind
copy of marriage contract
 Suspension and Revocation
 Scope of Examination o Grounds for refusal to issue
- FAR, AFAR, RFBT, TAX, MAS, AUD o Unprofessional conduct
- Changes shall not be made often than o Malpractice
once every 3 years o Violation of RA 9298 & its IRR, Code
of Ethics, and standards of practice
 Ratings in the LECPA
o Passed – GA > 75% PRACTICE OF ACCOUNTANCY
- No grades below 65%  A person shall not represent him/herself
o Conditional – GA < 75% as a CPA if he/she is not a CPA
- Majority (4/6) > 75%
o Failed – otherwise  Certificate of Registration
- Certificate under seal, attesting that a
 Refresher Course – taken by an examinee CPA Firm or a partnership is duly
who failed for 2 complete CPALE accredited to practice public accountancy
- > 24 units of subjects - Minimum of 3 years of meaningful
experience in any areas
 Reporting of Ratings – within 10 days after  Significant involvement in commerce
& industry, and government
REGISTRATION (documents received)  Not less than 3 years of teaching
1. Certificate of Registration  At least 1 year as audit assistant and
- Primary proof of a person’s acceptance in 2 years as auditor in charge
the profession
- Lifetime validity  Seal & Use of Seal

2. Professional Identification Card

- To have an immediate proof of being a
Certified Public Accountant
- Renewable every 3 years (registrant’s
date of birth)

3. Special / Temporary Permit – given to a

foreign CPA practicing in the Philippines
- Called for consultation / for specific  Penal Provision (violation of RA 9298)
purpose o Fine of > 50,000 or
- Engaged as professor, lecturer, or critic in o Imprisonment for not more than 2 years
fields essential to accountancy education o Or BOTH
- Internationally recognized expert / with
specialization in any scope of practice CONTINUING PROFESSIONAL DEVELOPMENT
 Inculcation of advanced knowledge, skills,
and ethical values in a post-licensure
examination
 RA 10912: CPD Act of 2016 – act
mandating & strengthening the CPD
program for all professions
 Required CUs  7 members with a chairman
o Renewal of PIC – 15 CUs  Chairman – senior practitioner in public
o For Accreditation – 120 CUs practice

Technical Competence 30 FRSC AASC ETC QRC

Professional Skills 5 Chairman 1 1 1 1
Professional Values, BOA 1 1 1 1
Ethics, and Attitudes 5 COA 1 1 - -
Flexible CPD Units 80 SEC 1 1 - -
Total 120 BSP 1 1 - -
BIR 1 - - -
FINEX 1 - - -
 CPD Activities
APO
 Seminars / Workshops
 Academic Track  Public 2 6 1 2
 Self-directed / Lifelong Learning  Private 2 1 1 1
 Other activities to be recommended  Academe 2 1 2 1
by CPD Council & approved by BOA  Gov’t 2 1 1 1
& PRC Association / Org.
of CPAs in active - 1 - -
ORGANIZATIONS AFFECTING ACCOUNTANCY public practice
PROFESSION IN THE PHILIPPINES Total 15 15 7 7

1. Accounting & Auditing Standards Setting  Term – 3 years renewable

Bodies – to assist BOA in carrying out its
powers and functions 4. Accredited Profession Organization (APO)
a. FRSC  PICPA – October 2, 1975
 15 members with a chairman  Purpose – for the benefit & welfare of
 Chairman – senior practitioner CPAs, advancement of profession, and
in any scope attainment of other professional ends
 Grounds for Cancellation of Accreditation
b. AASC o Ceased to possess qualifications
 15 members with a chairman o No longer serves the best interest
 Chairman – senior practitioner of CPAs
in public practice o Did not achieve its plan w/in 3 years
o Committed acts inimical to its
2. Educational Technical Council (ETC) members and profession
 To assist the BOA in: o Failure to renew accreditation
 Ensuring that all institutions offering within reasonable time
accountancy are in compliance with
requirements of the CHED 5. CPE Councils – assist BOA in implementing its
 Attaining the objectives of CPE programs
continuously upgrading the
accountancy education  Composition
 7 members with a chairman o Chairperson – member of BOA
 Chairman – senior practitioner in o 1st member – president / any officer
academe / education chosen by BOD of PICPA
o 2nd member – from organization of
3. Quality Review Committee (QRC) deans / department heads
 To assist the BOA in:
 Conducting quality review on  Term of office – co-terminus with their
applicants for registration to practice incumbency in BOA, PICPA, or organization
public accounting
 Recommend to BOA the revocation
of COR & PIC
  Powers & Functions
o Accept, evaluate, and approve
applications of CPE providers, CPE
programs, activities or sources, and
exemptions from CPE requirements
o Monitor implementation by CPE
providers of programs, activities, or
sources
o Assess periodically & upgrade criteria
for accreditation of CPE providers and
programs
o Perform other related functions

6. Regulatory Agencies

 Professional Regulation Commission (PRC)

- Administers, implements, and enforces
the regulatory policies of the government

 Commission on Audit (COA)

- Philippine’s Supreme Audit Institution
- Ensure accountability and transparency
of public funds

 Securities and Exchange Commission (SEC)

- Supervision over the corporate sector,
capital market, participants, securities
and investment markets, etc.

 Bureau of Internal Revenue (BIR)

- Raises revenue for the government

 Bangko Sentral ng Pilipinas (BSP)

- Maintains price stability conducive to a
balanced and sustainable economic
growth

 Insurance Commission (IC)

- Promulgates & implements policies,
rules, and regulations governing the
operations of entities engaged in
insurance and pre-need activities