AudTheo 3

RA 9298

Philippine accountancy act

Requirements to enter accountancy profession

1. BSA degree holder.

2. CPALE Passer.

3. Satisfy all other legal and regulatory requirements.

Qualifications of applicants for licensure examinations.

1. Filipino citizen

2. good moral character

3. BSA degree holder

4. has not yet convicted to any criminal offense including moral turpitude

Liberalization of services

Requires that academic and professional qualifications of the accountant be at par with other countries to enable him to perform competently in the workplace and to be recognized internationally

Core values of CPA profession

Integrity, Competence, Lifelong learning, objectivity, commitment to excellence, relevance in the global marketplace.

Integrity

conduct CPAs themselves with integrity and honesty, holding themselves to rigorous standards of professional ethics.

Competence

CPAs demonstrate superior technical proficiency by performing a high level expertise and knowledge

Lifelong learning

CPAs highly value education beyond certification and continually pursue new skills and knowledge

Objectivity

CPAs maintain intellectual honesty hy remaining free of personal bias and conflicts of interest.

commitment to excellence

CPAs deliver exemplary, high quality services

Relevance in the global market

CPAs enhance their value by meeting the ever changing needs of the world around them

Core competencies

unique combination of human skills, knowledge and technology that provide value to users

Leadership skills

CPAs are adept at influencing, inspiring and motivating others to achieve excellence.

critical thinking skills

CPAs are skillfully evaluating facts, challenging assumptions and applying judgement to develop relevant solutions.

Professional Regulation Commission

administers, implements and enforces regulatory policies of government for regulations and licensing of various profrssions.

Board of Accountancy

Body that may issue or revoke CPA license to practice

Philippine institute of certified public accountant

accredited national professional organizations for CPAs

International federations of accountants

mission is for development and enhancement of the profession to enable and provide services of hugh quality in public interest

International Accounting Standards Board

committed to developing in the public interest, a single set if high quality, global accounting standards that requires transparent and comparable information in general purpose reporting

financial reporting standards council

tasked to assist the board in carrying out its powers and functions particularly the adoption if international financial reporting standards in the Philippines.

International Auditing practices committee

responsible for the development and issuance on behalf of the council, standards and statements on a variety of audit and attest functions to improve degree of uniformity of auditing practice around the world

Auditing and Assurance standards council

Body assigned to assist the board i. carrying out adoption of auditing and assurance standards in the Philippines.

Usual alleged misstatements for lawsuits

1. Inadequate disclosure

2. Inappropriate valuation

Other lawsuit claims

1. employee defalcation

2. Did not complete audit on time

3. inappropriate withdrawal

Due professional care

Auditors are expected to exercise the same reasonable care with other professions

Prudent person due care

standard of due care to which auditor is expected to be held

Degree of wrongdoing

1. None

2. Negligence

3. Gross negligence

4. Fraud

Ordinary Negligence

Absence of reasonable cate and do not do what reasonably prudent auditors do.

Gross negligence

consistently fails to follow standards of the profession on engagement