THE ACCOUNTANCY PROFESSION

Republic Act No. 9298

At present, _ is the law regulating the practice of accountancy in the Philippines

Philippine Accountancy Act of 2004

Republic Act No. 9298 is also known as the _

Accountancy

has developed as a profession attaining a status equivalent to that of law and medicine.

Bachelor of Science in Accountancy, Board of Accountancy

In the Philippines, in order to qualify to practice the accountancy profession, a person must finish a degree in _ and pass a very difficult government examination given by the _

Board of Accountancy

The _ is the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines

Philippine CPA examination

The Board of Accountancy is responsible for preparing and grading the _

twice a year

This computer-based examination is offered _ one in May and another one in October, in authorized testing centers around the country

certified public accountants

Single practitioners and partnerships for the practice of public accountancy shall be registered _ in the Philippines

minimum of three years

A certificate of accreditation shall be issued to certified public accountants in public practice only upon showing in accordance with rules and regulations promulgated by the Board of Accountancy and approved by the Professional Regulation Commission that such registrant has acquired a _ of meaningful experience in any of the areas of public practice including taxation.

Securities and Exchange Commission

The _ shall not register any corporation organized for the practice of public accountancy.

required

Certified public accountants, firms and partnerships of certified public accountants, including partners and staff members are _ to register with the Board of Accountancy and Professional Regulation Commission for the practice of public accountancy.

(Accreditation to practice public accountancy)

every 3 years

The Professional Regulation Commission upon favorable recommendation of the Board of Accountancy shall issue the Certificate of Registration to practice public accountancy which shall be valid for 3 years and renewable _ upon payment of required fees.

• Public accounting

• Private accounting

• Government accounting

Certified Public Accountants generally practice their profession in three main areas, namely:

Public Accounting

is composed of individual practitioners, small accounting firms and large multinational organizations that render independent and expert financial services to the public

Public accountants

usually offer three kinds of services, namely auditing, taxation and management advisory services

Auditing

has traditionally been the primary service offered by most public accounting practitioners.

Auditing or external auditing

is the examination of financial statements by independent certified public accountant for the purpose of expressing an opinion as to the fairness with which the financial statements are prepared

external auditing

Actually, _ is the attest function of independent CPAs.

Bureau of Internal Revenue

requires audited financial statements to accompany the filing of annual income tax return

before

Banks and other lending institutions frequently require an audit by an independent CPA _ granting a loan to the borrower

Creditors and prospective investors

place considerable reliance on audited financial statements on making economic decision

Taxation

service includes the preparation of annual income tax returns and determination of tax consequences of certain proposed business endeavors

tax investigations

The CPA not infrequently represents the client in _

thoroughly familiar

To offer this service effectively and efficiently, the public accountant must be _ with the tax laws and regulations and updated with changes in taxation law and court cases concerned with interpreting taxation law