ACYAUDI: Practice and Regulation of the Accountancy Profession

Practice of Public Accountancy, Practice in Commerce and Industry, Practice in Education/Academe, and Practice in Government

These are the four (4) scopes of practice of accountancy.

Public Accountancy

Shall constitute in a person, be it his individual capacity, or as a partner or as a staff member, in an accounting or auditing firm, holding out himself as one skilled in the knowledge, science, and practice of accounting, and as a qualified person to render professional services as a CPA, or offering or rendering, or both to more than one client on a fee basis or otherwise.

Public Accountancy

Involves the audit or verification of financial transactions and accounting records;

Public Accountancy

Involves the preparation, signing, or certification for clients of reports of audit, balance sheet, and other financial, accounting, and related schedules, exhibits, statements, or reports which are to be used for publication or for credit purposes, or to be filed with a court or government agency, or to be used for any other purpose;

Public Accountancy

Involves the design, installation, and revision of accounting system;

Public Accountancy

Involves the preparation of income tax returns when related to accounting procedures

Public Accountancy

Involves the representation of clients before government agencies on tax and other matters related to accounting or to render professional assistance in matters relating to accounting procedures and the recording and presentation of financial facts or data,

Practice in Commerce and Industry

Shall constitute in a person involved in decision-making requiring professional knowledge in the science of accounting or when such employer or position requires that the holder thereof must be a CPA.

Practice in a Education/Academe

Shall constitute in a person in an educational institution that involves teaching of accounting, auditing, management advisory services, finance, business law, taxation, and other technically related subjects.

True

(True or False) Members of the Integrated Bar of the Philippines may be allowed to teach business law and taxation subjects.

Practice in the Government

Shall constitute a person who holds, or is appointed to, a position in an accounting professional group in government or in a government-owned and/or controlled corporation, including those performing proprietary functions, where decision-making requires professional knowledge in the science of accounting, or where a civil service eligibility as a CPA is a prerequisite.

RA 9298

Known as the Philippine Accountancy Act of 2004.

RA 9298

Is the regulatory act of the practice of accountancy in the Philippines. It supersedes Presidential Decree No. 692 (PD 692), otherwise known as the revised accountancy law.

PD 692 Revised Accountancy Law

The previous law that is superseded by RA 9298.

RA 9298 - Philippine Accountancy Act of 2004

Shall provide for and govern:

a. The standardization and regulation of accounting education;

b. The examination for registration of certified public accountants; and

c. The supervision, control, and regulation of the practice of accountancy in the Philippines.

A Chairman and Six (6) Members

The composition of the PRC-BOA.

President of the Philippines

Who appoints the Chairman and members of PRC-BOA.

Vice-Chairman

Shall be elected from among the six (6) members of the Board.

One (1) Year

The term of a vice president of PRC-BOA.

Qualification of a Member

a. Must be a natural-born citizen and a resident of the Philippines;

Qualification of a Member

b. Must be a duly registered Certified Public Accountant with at least ten (10) years of work experience in any scope of practice of accountancy.

Qualification of a Member

c. Must be of good moral character and must not have been convicted of crimes involving moral turpitude;

Qualification of a Member

d. Must not have any pecuniary interest, directly or indirectly, in any school, college, university, or institution conferring

an academic degree necessary for admission to the practice of accountancy or where review classes in preparation

for the licensure examination are being offered or conducted, nor shall he/she be a member of the faculty or

administration thereof at the time of his/her appointment to the Board.

Qualification of a Member

e. Must not be a director or officer of the APO at the time of his appointment.

Three (3) Years

The official term of the Chairman and members of the Board.

Two (2) Successive Complete Terms, Until the Lapse of One (1) Year

The maximum number of years a member of the Board can have a successive complete term, until he can no longer be eligible until a lapse of a period of time.

Powers and Functions of the Board

a. To prescribe and adopt the rules and regulations necessary for carrying out the provisions of this Act;

Powers and Functions of the Board

b. To supervise the registration, licensure, and practice of accountancy in the Philippines;

Powers and Functions of the Board

c. To administer oaths in connection with the administration of this Act;

Powers and Functions of the Board

d. To issue, suspend, revoke, or reinstate the Certificate of Registration for the practice of the accountancy profession;

Powers and Functions of the Board

e. To adopt an official seal of the Board;

Powers and Functions of the Board

f. To prescribe and/or adopt a Code of Ethics for the practice of accountancy;

Powers and Functions of the Board

g. To monitor the conditions affecting the practice of accountancy and adopt such measures, including promulgation of accounting and auditing standards, rules and regulations, and best practices as may be deemed proper for the enhancement and maintenance of high professional, ethical, accounting, and auditing standards: Provided, That domestic accounting and auditing standards, rules and regulations shall include the international accounting and auditing standards, and generally accepted best practices;

Powers and Functions of the Board

h. To conduct an oversight into the quality of audits of financial statements through a review of the quality control measures instituted by auditors in order to ensure compliance with the accounting and auditing standards and practices;

Powers and Functions of the Board

i. To investigate violations of this act and the rules and regulations promulgated hereunder and for this purpose, to issue summons, subpoena, and subpoena ad testificandum and subpoena duces tecum to violators or witness thereof and compel their attendance to such investigation or hearings and the production of documents in connection therewith: Provided, That the Board upon approval of the Commission may, subject to such rules and regulations that may be promulgated to implement this section, delegate the fact-finding aspect of such investigations to the accredited national professional organization of certified public accountants: Provided, Further, That the Board and/or the Commission may adopt their findings of fact as it may seem fit;

Powers and Functions of the Board

j. The Board may, motu propio in its discretion, make such investigations as it deems necessary to determine whether any person has violated any provisions of this law, any accounting or auditing standard or rules duly promulgated by the Board as part of the rules governing the practice of accountancy;

Powers and Functions of the Board

k. To issue a cease or desist order to any person, association, partnership, or corporation engaged in violation of any provision of this Act, any accounting or auditing standards or rules duly promulgated by the Board as part of the rules governing the practice of accountancy in the Philippines;

Powers and Functions of the Board

l. To punish for contempt of the Board, both direct and indirect, in accordance with the pertinent provisions of and penalties prescribed by the Rules of Court;

Powers and Functions of the Board

m. To prepare, adopt, issue or amend the syllabi of the subjects for examinations in consultation with the academe, determine and prepare questions for the licensure examination which shall strictly be within the scope of the syllabi of the subjects for examinations as well as administer, correct and release the results of the licensure examinations;

Powers and Functions of the Board

n. To ensure, in coordination with the Commission on Higher Education (CHED) or other authorized government offices that all higher educational instruction and offering of accountancy comply with the policies, standards, and requirements of the course prescribed by CHED or other authorized government offices in the areas of curriculum, faculty, library, and facilities; and

Powers and Functions of the Board

o. To exercise such other powers as may be provided by law as well as those which may be implied from, or which are necessary or incidental to the carrying out of, the express powers granted to the Board to achieve the objectives and purposes of this Act.

PRC-BOA

Shall be under the administrative supervision of the Commission. All records, including applications for examination, examination questions, answer sheets, and other records and documents pertaining to the CPA licensure exam, and administrative and investigative cases shall under the custody of the Commission.

PRC-BOA

Shall provide the secretariat other support services to implement the provisions of RA 9298.

Close of Each Calendar Year

The Board shall, ___________________________ submit an annual report to the President of the Philippines through the Commission giving a detailed account of its proceedings and accomplishments during the year and making recommendations for the adoption of measures that will upgrade and improve the conditions affecting the practice of accountancy in the Philippines.

President of the Philippines

Shall, upon the recommendation of the Commission, after giving the concerned member an opportunity to defend himself in a proper administrative investigation to be conducted by the Commission, may suspend or remove any member.

Grounds for Suspension or Removal of Members of the Board

a. Neglect of duty or incompetence;

Grounds for Suspension or Removal of Members of the Board

b. Violation or tolerance of any violation of this Act and its implementing rules and regulations or the CPA's Code of Ethics and the technical and professional standards of practice for certified public accountants;

Grounds for Suspension or Removal of Members of the Board

c. Final judgment of crimes involving moral turpitude;

Grounds for Suspension or Removal of Members of the Board

d. Manipulation or rigging of the certified public accountant's licensure examination results, disclosure of secret and confidential information in the examination questions prior to the conduct of the said examination, or tampering of grades.

Qualifications of Applicants for Examinations

a. Is a Filipino citizen;

Qualifications of Applicants for Examinations

b. Is of good moral character;

Qualifications of Applicants for Examinations

c. Is a holder of the degree of Bachelor of Science in Accountancy conferred by a school, college, academy, or institute duly recognized and/or accredited by the CHED or other authorized government offices;

Qualifications of Applicants for Examinations

d. Has not been convicted of any criminal offense involving moral turpitude.

Passed Rating in the Licensure Examination

General average of at least seventy-five percent (75%), with no grades lower than sixty-five percent (65%) in any given subject.

Conditionally Passed Rating in the Licensure Examination

General average of less than 75%, has a grade of less than 65%, or both, but has obtained 75% and above in at least majority (4 out of 6) of the subjects covered in the licensure

examination.

Removal Examination

A candidate shall take an examination in the remaining subjects within two (2) years from the preceding examination.

Within Two (2) Years

The deadline, in terms of the number of years a conditional passer shall take a removal examination.

Failing Candidates to Take Refresher Course

A candidate who fails in two (2) complete CPA Board Examinations shall be disqualified from taking another set of examinations unless he/she submits evidence to the satisfaction of the Board that he/she enrolled in and completed at least

twenty-four (24) units of subject given in the board exam.

Within Ten (10) Calendar Days After the Examination, Unless Extended for Just Cause

The number of days it will take for the Board to submit the report of ratings for the CPA exams.

Oath

All successful candidates in the examination shall be required to take an oath of profession before any MEMBER of the Board or before any GOVERNMENT OFFICIAL authorized by the Commission or any person AUTHORIZED BY LAW TO ADMINISTER OATHS upon presentation of proof of his/her qualification, prior to entering upon the practice of the profession.

Certificate of Registration

Shall be issued to:

a. Examinees who pass the licensure examination.

b. Person admitted under reciprocity or other international agreements.

Certificate of Registration

Shall bear the following:

a. full name and the assigned registration number of the registrant

b. signature of the chairperson of the Commission and the chairman and members of the Board

c. official seal of the Commission and of the Board,

Professional Identification Card

Bears the registration number, date of issuance, and expiry date, duly signed by the chairperson of the Commission.

Every Three (3) Years

The number of years a registrant must renew his Professional Identification Card.

Special/Temporary Permit

May be issued by the Board subject to the approval of the Commission and payment of the fees the latter has prescribed and charged thereof to the following persons:

a. A foreign CPA called for consultation or for a specific purpose which, in the judgment of the Board, is essential for the development of the country: (Provided, that his/her practice shall be limited only for the particular work that he/she is being engaged and that there is no Filipino CPA qualified for such consultation or specific purposes;

b. A foreign CPA engaged as professor, lecturer, or critic in fields essential to accountancy education in the Philippines, and his/her engagement is confined to teaching only; and

c. A foreign CPA who is an internationally recognized expert or with specialization in any branch of accountancy and his/her service is essential for the advancement of accountancy in the Philippines.

Refusal to Issue

The Board shall not register and issue a certificate of registration and professional identification card to any successful examinee

a. Convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude

b. Guilty of immoral and dishonorable conduct

c. Of unsound mind

Board

Shall have the power, upon due notice and hearing, to suspend or revoke the practitioner's certificate of registration and professional identification card or suspend him from the practice of his profession, or cancel his special permit.

Grounds for Suspension and Revocation of License

a. As mentioned in the grounds for refusal to issue.

Grounds for Suspension and Revocation of License

b. Any unprofessional or unethical conduct.

Grounds for Suspension and Revocation of License

c. Malpractice

Grounds for Suspension and Revocation of License

d. Violation of any of the provisions of RA 9298 and its IRR, the CPA's Code of Ethics, and the technical and professional standards of practice for certified public accountants.

After the Expiration of Two (2) Years from the Date of Revocation of Certificate of Registration

The number of years, in which the Board, upon application and for reasons deemed proper and sufficient, reinstate the validity of a revoked certificate of registration.

Prohibition in the Practice of Accountancy

No person shall practice accountancy in this country, or use the title "Certified Public Accountant", or use the abbreviated title "CPA" or display or use any title, sign, card, advertisement, or other device to indicate such person practices or offers to practice accountancy, or is a certified public accountant, unless such person shall have received from the Board a certificate of registration/ professional license and be issued a professional identification card or a valid temporary/special permit duly issued to him/her by the Board and the Commission.

Certificate of Accreditation

Shall be issued to CPA in public practice only upon showing that such registrant has acquired a minimum of three (3) years of meaningful experience in any of the areas of PUBLIC PRACTICE including taxation.

Every Three (3) Years

The number of years a renewal must be made for the Certificate of Accreditation.

Working Papers

As a rule, are confidential, privileged, and property of the CPA.

Seal

It bears the registrant's name, registration number, and title. It shall be stamped every auditor's report, indicating therein his current Professional Tax Receipt (PTR) number, date/place of payment when field with government authorities, or when used professionally.

Foreign Reciprocity

Subjects or citizens of foreign countries may be allowed to practice Accountancy in the Philippines in accordance with the provisions of existing laws, and international treaty obligations including mutual recognition agreements entered into by the Philippine government with other countries. A person who is not a citizen of the Philippines shall not be allowed to practice accountancy in the Philippines unless he/she can prove, in the manner provided by the rules of court that, by specific

provision of law, the country of which he/she is a citizen, subject or national admits citizens of the Philippines to the practice of the same profession without restriction.

Philippine Institute of Certified Public Accountants

It is the only accredited professional organization in the Philippines.

True

(True or False) All registered certified public accountants whose names appear in the roster of certified public accountants shall be united and integrated through their membership in a one and only registered and accredited national professional organization of registered and licensed certified public accountants, which shall be registered with the Securities and Exchange Commission as a nonprofit corporation and recognized by the Board, subject to the approval by the Commission.

Penal Provision

Any person who shall violate any of the provisions of this Act or any of its implementing rules and regulations as promulgated by the Board subject to the approval of the Commission, shall, upon conviction, be punished by a fine of not less than fifty thousand pesos (P 50,000.00) or by imprisonment for a period not exceeding two (2) years or both.

(P 50,000.00), Not exceeding two (2) years

Any person who shall violate any of the provisions of this Act or any of its implementing rules and regulations as promulgated by the Board subject to the approval of the Commission, shall, upon conviction, be punished by a fine of not less than fifty thousand pesos ______________________ or by imprisonment for a period _________________________ or both.

Commission and the Board

Shall have the primary duty to effectively enforce the provisions of this Act.

Security of Justice or His Duly Designated Representative

Shall act as legal adviser to the Commission and the Board and shall render legal assistance as may be necessary in carrying out the provisions of this Act.

RA 10912 Continuing Professional Development (CPD) Act of 2016

Is an act mandating and strengthening the continuing professional development program for all regulated professions, creating the continuing professional development council, and appropriating funds therefor, and for other related purposed.

Continuing Professional Development

Refers to the inculcation of advanced knowledge, skills, and ethical values in a post-licensure specialization or in an inter- or multidisciplinary field of study, for assimilation into professional practice, self-directed research, or lifelong learning.

Fifteen (15) Credit Units

The required number of CPE credit units for the renewal of PIC.

Professional Working Overseas (OFWs) and Newly Licensed Professionals for the First Renewal Cycle After Obtaining Their License

The persons exempted from the 15 credit unit requirement for the renewal of PIC.

One Hundred Twenty (120) Credit Units

The required number of CPE credit units for accreditation (initial and renewal).

30 Units

The minimum units required under Technical Competence.

5 Units

The minimum units required under Professional Skills.

5 Units

The minimum units required under Professional Values, Ethics, and Attitudes.

40 Units

The minimum units under required competency areas.

80 Units

The required flexible CPD units.

True

(True or False) The required minimum units earned from the previous years shall be 20 credit units.

Must be Applied Within Five (5) Years After Completion

The deadline in the application of an academic track as a CPD provider.

September 2022

Is the month when the Financial Reporting Standards Council (FRSC) was renamed to Financial and Sustainability Reporting Standards (FSRSC).

Financial and Sustainability Reporting Standards Council (FSRSC)

The council shall be composed of sixteen (16) members. A chairman, who had been or is presently a senior accounting practitioner in any of the scope of accounting practice and fifteen (15) representatives.

Sixteen (16) Members

The number of members of the FSRSC.

One (1)

The number of members from the Board of Accountancy in the FSRSC.