Republic Act No. 9298 - Philippine Accountancy Act of 2004

Flashcards about the Philippine Accountancy Act of 2004 and related topics.

Objectives of the Philippine Accountancy Act

The standardization and regulation of accounting education; the examination for registration of CPAs; the supervision, control, and regulation of the practice of accountancy in the Philippines.

Practice of Public Accountancy

Holding oneself out as skilled in accounting and offering professional services as a CPA to more than one client on a fee basis.

Practice in Commerce and Industry

Involved in decision making requiring professional knowledge in accounting, representing an employer before government agencies on tax matters, or holding a position that requires a CPA.

Practice in Education / Academe

Teaching accounting, auditing, management advisory services, finance, business law, taxation, and other technically related subjects in an educational institution.

Practice in Government

Holding a position in an accounting professional group in government where decision making requires professional accounting knowledge or where a CPA eligibility is a prerequisite.

Limitations of the Practice of Public Accountancy

Single practitioners and partnerships of CPAs must be registered CPAs in the Philippines; the SEC shall not register any corporation organized for the practice of public accountancy.

Certificate of Accreditation

A certificate issued by the PRC, upon recommendation by the BOA, attesting that individual CPAs, firms, and partnerships of CPAs are duly accredited to practice public accountancy in the Philippines.

Prohibition in the Practice of Accountancy - Non-CPAs

Non-CPAs are not allowed to practice accountancy in the Philippines, use the title 'Certified Public Accountant' or 'CPA', or indicate that they practice accountancy or are a CPA.

Professional Regulatory Board of Accountancy (BOA)

The official government agency empowered to enforce RA 9298.

Qualifications of BOA members

Natural-born citizen and a resident of the Philippines; duly registered CPA with at least 10 years of work experience; of good moral character; must not have been convicted of crimes involving moral turpitude; not have any pecuniary interest in any school conferring an academic degree; Not be a director/officer of the APO (PICPA).

Powers and Functions of the BOA

To prescribe and adopt the rules and regulations necessary for carrying out the provisions of RA 9298; To supervise the registration, licensure and practice of accountancy in the Philippines.

Grounds for Suspension or Removal of BOA Members

Neglect of duty or incompetence; Violation or tolerance of any violation of RA 9298 and its IRR or the CPA Code of Ethics; Final judgment of crimes involving moral turpitude; Manipulation or rigging of the CPA licensure examination results.

Qualifications of Applicants for CPA Examinations

Must be a Filipino citizen; Must be of good moral character; Must be a holder of the degree of BSA conferred by a school, college, academy or institute duly recognized and/or accredited by the CHED.

Scope of CPA Examinations

Financial Accounting and Reporting, Advanced Financial Accounting and Reporting, Management Advisory Services, Auditing, Regulatory Framework for Business Transactions, Taxation.

Passing Grade in CPA Examinations

A candidate must obtain at least a general average of 75%, with no grades lower than 65% in any given subject.

Certificate of Registration

A certificate under seal bearing a registration number, issued to an individual by the PRC, upon recommendation by the BOA.

Professional Identification Card

A card with validity of 3 years bearing the registration number, date of issuance with an expiry date, due for periodic renewal, signed by the Chairperson of the PRC.

Grounds for Refusal to Issue Certificate of Registration and Professional ID

Convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude; Guilty of immoral and dishonorable conduct; Of unsound mind.

Suspension and Revocation of Certificates of Registration and Professional Identification Card and Cancellation of Special Permit

The BOA shall have the power to suspend or revoke the practitioner’s certificate of registration and professional identification card, suspend him/her from the practice of his/her profession, or cancel his/her special permit.

Continuing Professional Education (CPD)

Refers to the inculcation assimilation and acquisition of knowledge, skills, proficiency and ethical and moral values, after the initial registration of a professional that raise and enhance the professional's technical skills and competence.

CPD credit units

15 credit units for 3 years.

Permanent exemption from CPE requirement

Upon reaching the age of 65 years old.

Seal and Use of Seal

All licensed CPAs shall obtain and use a seal of a design prescribed by the BOA bearing the registrant’s name, registration number and title.

Penal Provisions

Fine of not less than P 50,000.00, or Imprisonment – for a period not exceeding 2 years, or both.

Financial Reporting Standards Council (FRSC)

Accounting standard-setting body/council created by the BOA.

Auditing and Assurance Standards Council (AASC)

Auditing standard-setting body/council created by the BOA.

Philippine Institute of Certified Public Accountants (PICPA)

The globally-recognized and integrated national professional organization of CPAs in the Philippines accredited by the BOA and the PRC.