Philippine Accountancy Act of 2004 (Republic Act No. 9298) - Vocabulary Flashcards

Vocabulary flashcards covering key terms and definitions from the Philippine Accountancy Act of 2004 (RA 9298).

Philippine Accountancy Act of 2004 (Republic Act No. 9298)

National law regulating the practice of accountancy in the Philippines, repealing Presidential Decree No. 692, and establishing licensing, education standardization, and regulatory frameworks.

Professional Regulatory Board of Accountancy (PRBA)

The regulatory board under the Professional Regulation Commission tasked with governing the practice, licensure, and ethics of accountancy.

Professional Regulation Commission (PRC)

Governing body that supervises professional boards (including the PRBA) and implements professional regulatory laws.

Certified Public Accountant (CPA)

A person registered with the Board to practice accountancy and provide professional accounting services.

Scope of Practice

The categories of accountancy practice recognized by the Act: Public Accountancy, Commerce and Industry, Education/Academe, and Government.

Public Accountancy

Practice of accounting services offered to the public, including audits, financial reporting, and related procedures by CPAs or firms.

Practice in Commerce and Industry

CPA work within organizations in decision-making that requires professional accounting knowledge.

Practice in Education/Academe

Teaching accounting, auditing, and related subjects in educational institutions; may include exceptions for teaching business law and taxation.

Practice in Government

Accountancy work in government offices or government-owned/controlled corporations requiring CPA qualifications.

Section 5 – Board Composition

PRBA consists of a Chairman and six members appointed by the President from nominees submitted by professional bodies.

Section 6 – Qualifications of Board Members

Board candidates must be natural-born Filipino citizens, CPAs with at least 10 years of experience, of good moral character, and without conflicts of interest with educational institutions.

Section 7 – Term of Office

Chairman and board members serve a 3-year term; vacancies filled for the unexpired portion; no two consecutive complete terms per person.

Section 8 – Compensation and Allowances

Board members receive compensation and allowances comparable to those of other regulatory boards under the Commission.

Section 9 – Powers and Functions of the Board

The Board can prescribe rules, supervise licensure, administer oaths, issue/cancel registrations, adopt ethics codes, and oversee practice quality.

Section 13 – CPA Examinations

Licensure examinations for CPAs administered by the Board in coordination with the Commission, with standards set by law.

Section 14 – Qualifications of Applicants for Examinations

Applicants must be Filipino citizens of good moral character and hold a CHED-recognized BS Accountancy degree with no moral turpitude conviction.

Section 15 – Scope of Examination (Subjects)

Exams cover Theory of Accounts; Business Law and Taxation; Management Services; Auditing Theory; Auditing Problems; Practical Accounting Problems I & II.

Section 16 – Rating in the Licensure Examination

Passing requires a general average of 75% with no subject below 65%; conditional credit may be given; remaining subjects must be completed within 2 years.

Section 17 – Report of Rating

The Board reports each candidate's rating to the Commission within 10 calendar days after the examination; results are mailed to examinees.

Section 18 – Failing Candidates to Take Refresher Course

A candidate who fails twice must enroll in at least 24 units of subjects from the licensure exam to retake examinations.

Section 19 – Oath

Successful CPA examinees must take an oath of profession before a Board member or authorized official before practicing.

Section 20 – Issuance of Certificate of Registration and PIC

Issuance of CoR and a Professional Identification Card to registrants; CoR is valid until withdrawn or revoked; PIC is renewable every 3 years.

Section 21 – Roster of CPAs

A continually updated roster of all registered CPAs maintained by the Board and made available as needed.

Section 26 – Prohibition in the Practice of Accountancy

No one may practice or claim CPA status without a valid CoR/PIC; violations are punishable.

Section 28 – Limitation of the Practice of Public Accountancy

Public practice accreditation requires at least 3 years of meaningful experience, unless already granted before effectivity; SEC won’t register accounting corporations.

Section 29 – Ownership of Working Papers

Working papers are confidential and belong to the CPA unless a client agreement states otherwise; exceptions apply for subpoenas.

Section 30 – Accredited Professional Organization

All CPAs must be part of an integrated national professional organization registered with the SEC and recognized by the Board.

Section 32 – Continuing Professional Education (CPE)

CPAs must meet CPE requirements established by the Board, in coordination with the APO, via a CPE Council.

Section 34 – Foreign Reciprocity

Foreign CPAs may practice under international/reciprocal agreements, subject to conditions and national law.

Section 36 – Penal Provisions

Violations of the Act or its rules carry fines (not less than 50,000 PHP) and/or imprisonment up to 2 years, or both.

Section 37 – Implementing Rules and Regulations

The Board, with the APO, must issue implementing rules within 90 days of effectivity; rules take effect 15 days after publication.

Section 41 – Transitory Provision

Incumbent Chairman and Board continue to serve; graduates with a BS in Accounting may take the CPA exam within 2 years under new rules.