Management of a

Public Accounting
Practice
 ● Single practitioners and partnerships for the practice of
public accountancy shall be registered certified public
accountants in the Philippines: Provided, that from the
effectivity of this Act, a certificate of accreditation shall
SEC. 28. be issued to certified public accountants in public
practice only upon showing, in accordance with rules
Limitation of and regulations promulgated by the Board and approved
the Practice of by the Commission, that such registrant has acquired a
minimum of three (3) years meaningful experience in
Public any of the areas of public practice including taxation:
Accountancy. Provided, further, that this requirement shall not apply to
those already granted a certificate of accreditation prior
to the effectivity of this Act. The Securities and
Exchange Commission shall not register any corporation
organized for the practice of public accountancy.
 ●Individual CPAs including staff members
thereof, firms including the sole
proprietors and staff members thereof and
partnerships of CPAs including the
partners and staff members are required to
Registration register with the Board of Accountancy
and the Professional Regulation
Commission and shall not commence
practice of public accountancy until a
valid Certificate of Registration has been
issued to them.
 ●Name of Individual CPA Firm or Partnership
●CPA Certificates and current Professional
Identification Cards issued by BOA and PRC.
●Certified copy of Certificate of Registration issued
by SEC, Articles of Partnership or DTI
Registration.
Requirements ●Complete business and postal address, telephone,
website.
●Copies of Business Permits.
●Correspondent relationship, membership or
business dealings with foreign CPA
●Names of staff members who are CPAs together
with their CPA Certificates and ID
 ●Organization structure
●Code of Good Governance
●Internal Quality review procedures
●Sworn statement of meaningful participation in
internal quality review and adequate and effective
training.
Requirements ●For first time registrant, sworn statement of at least
three (3) years of meaningful experience in the
scope of work covered in the practice of public
accountancy.
●Sworn statement of good moral character, and not
guilty of any case involving moral turpitude and/or
unethical practices.
 ●Referrals from businessmen through active
participation in civic and community affairs
●Referrals from clients by maintaining his
integrity and rendering prompt and efficient
services to them.
Source of ●Referrals from financial and government
Clients institutions by keeping his standards high.
●Referrals from other CPAs by active
involvement in professional organizations of
CPAs
●Referrals from legal and other professional
firms.
 ●Do not make exaggerated claims
for services offered,
qualifications possessed, or
Marketing experience gained.
Professional
Services ●Do not make disparaging
references to unsubstantiated
comparisons to the work of
another.
 ● Professional accountant in public practice may quote
whatever fee deemed to be appropriate.
● Make the client aware of the terms of the engagement
and, in particular, the basis on which fees are charged
and which services are covered by the quoted fee.
● Assign appropriate time and qualified staff to the task.
Professional ● The skills and knowledge required for the type of
Fee work involved.
● The level of training and experience of the persons
necessarily engaged on the work.
● The time necessarily occupied by each person
engaged on the work.
● The degree of responsibility and urgency that the
work entails.
 ●Contingent fee may be used for non assurance
engagement but may give rise to self-interest
threat.
●A professional accountant may receive or pay a
Professional referral fee or commission, subject to certain
Fee condition and disclosure.
●A professional accountant may purchase all or
part of another firm on the basis of payments
will be made to individuals formerly owning the
firm.
 ●Actual time charges basis or per
diem basis.
Methods of ●Flat or fixed fee basis
Billing Clients
●Maximum fee basis
●Retainer basis
 ●Audit Partner
Organization ●Audit Manager / Supervisor
of CPA Firms ●Senior Auditor
●Staff Auditor
 ●Preliminary Consideration
●Identify potential client
Acceptance ●Evaluate relationship between auditor
and Retention and potential client
of Audit Client ●Evaluate auditability
●Evaluate management’s integrity
●Prepare the engagement letter
 ●Evidence indicating a client’s
management may lack integrity.
●Difficulty in working with client
personnel.
Client
Continuance ●Inability to negotiate an acceptable
increase in the audit fee
●Client need for specialized services the
current audit firm is unable or unwilling to
provide.
 ●Any indication that the client
misunderstands the objective and scope of
the audit.
●Any revised or special terms of the
Recurring engagement.
Audits ●A recent change in senior management,
board of directors, or ownership
●A significant change in nature or size of
the client’s business.
●Legal requirements.