RA 9298 “The Philippine Act of 2004” - May 13, 2004, Qualifications

supersedes PD 692, Revised Accountancy Law 1. Natural-born citizen and resident of Philippines
Objectives (SES) 2. CPA with 10 years work experience in the scope of
- Standardization practice
- Examination 3. Must be of good moral character and not have been
- Supervision convicted of crimes
PRC and BOA – implement the RA 9298 4. Must not have any precuniary interest
BOA – to assist PRC in filling cases 5. Must not be a director or officer of APO
All agencies – shall render assistance upon request of BOA Terms of Office
and PRC * BOA chairman and members shall hold office for 3 years
Secretary of Justice – serves as legal adviser * Person who served 2 successive complete terms shall not
Note: anyone may bring cases before PRC and BOA be reappointed unless there is a lapse of 1 year
* Any vacancy occurring with the term shall be filled up for
Scope of Practice the unexpired portion of the term only
1. Public – qualified person to render professional service (filling up an unexpired term is not a complete term)
as CPA to more than one client * No person shall serve BOA for more than 12 years
- Audit, preparation of reports, design accounting
system, preparation of tax returns, represents clients Powers and Functions of BOA
to government agencies - to prescribe and adopt the rules/regulations
- Client-service provider relationship - to supervise the registration/licensure
2. Commerce – person employed in an industry - to administer oaths
- Involve in decision making, represents employer, - to issue, suspend, revoke certificate of registration
with employment - to adopt an official seal of BOA
- employer-employee relationship - to prescribe/adopt a code of ethics
- Paid-up = 5M + Revenue = 10M → needs CPA - to monitor conditions of practice of accountancy
3. Government – person with position in government - to oversight quality of audits
- proprietary functions, with civil service - to investigate violations of RA 9298
- similar to commerce, but the employer is the - to issue a cease or desist order to violator of RA
government, not a private entity - to punish for contempt of BOA
4. Academe – teaching accounting topics - to prepare/amend syllabus of exam
- BSA (exclusively) – dean must be CPA - to ensure programs is in accordance to CHED
- BSA with other programs – department chairman or
its equivalent must be CPA Grounds for Suspension or Removal of members of BOA
- Lawyers are allowed to teach law and tax - President of the Philippines can suspend/remove
upon recommendation of PRC
BOA – composed of a chairman and 6 members (one of Reasons:
member is elected as a vice chairman for a term of 1 year) - Neglect duty or incompetence
- Violation or tolerance of any violation of RA 9298
Chairman – Noe G. Quinanola - Final judgment of crimes
Vice Chairman – Samuel B. Padilla - Manipulation or rigging of CPA exam
Members: Others
Gloria T. Baysa Compensation and Allowances of BOA – comparable to that
Thelma S. Ciudadano being received by the Chairman and members of PRC
Gervacio I. Piator Annual report – BOA shall submit (at close of calendar year) a
Maria Teresita Dimaculangan report to President composing: detailed account of
proceedings/accomplishments and recommendations
Appointment process PRC Supervision – BOA is under the administrative
APO/PICPA ---> PRC -----> President supervision of PRC
5 nominees 3 recommendees 1 appointee Custodian of its Records – all records shall under the custody
- not later than APO’s failure to appoints the of PRC
60 days (with submit nominees chairman or Secretary – PRC shall designate secretary of BOA
adequate will require PRC member of
documentation) to submit its own list BOA
LECPA 3. Expiry date
Qualifications Documents 4. Signature of PRC chairperson
1. Filipino Citizen Birth Certificate * Renewable every 3 years
2. Good moral character NBI Clearance * Date of renewal is on or before birthdate
3. Not convicted to crimes NBI Clearance * Failure to renew will subject to fines and penalties
4. Holder of BSA degree TOR/Diploma (2 years)
Notes: 3. Special or Temporary Permit
* Graduates of Major in Accounting (MIA) are given 1. Foreign CPA for
additional 2 years a. Consultation
* MIA who took LECPA on or before Oct 2008 but failed, may b. Engaged as professor
still take future exams c. Expert (crucial for accounting advancement)
* MIA who will take LECPA for the first time is not allowed to
take exam unless BSA degree holder * Whenever a CPA signs, CPA is required to indicate his
* Married female applicants should submit marriage contract 1. certificate of registration number
2. date of issuance
Scope of Exam – BOA may change the scope not be more 3. duration of validity
often than once every 3 years 4. Professional Tax Receipts number

Passed – average of at least 75% with no grades less than 65%
Conditional – average of at least or less than 75% but with 4
out of 6 subjects with 75% grade: will take removal exam
within 2 years
Failed – grades with less than 65% and not majority is 75%
TWO FAILURES in two complete CPA Board is not allowed to
take another set unless he completed 24 units refresher
course/program (Sec. 18 of RA 9298)
Note: Removal exam is not counted as one complete exam
Where to obtain refresher course certificate?
- Educational institution granting BSA accredited by
CHED with at least 10% passing rate or have 10
examinees of LECPA for last 5 years
Other Provisions
Report of Ratings – obtained within 10 days after exam
Oath – successful examinee is required to take oath
Roster of CPA – names and place of business of all CPA are
prepared and updated by BOA
Registration
1. Certificate of Registration
a. who passed
b. person admitted under reciprocity
shall bear the following:
1. full name
2. signature of PRC chairperson and chair/mem of
BOA
3. official seal of PRC and BOA
* it shall remain in full force and effect until withdrawn
(lifetime validity unless suspended)
2. Professional Identification Card
Includes:
1. Registration number
2. Date of issuance
Refusal to Issue: When?
a. Convicted by a court
b. Guilty of immoral and dishonorable conduct
c. Of unsound mind
Suspension and Revocation: When?
a. As mentioned in the grounds for refusal to issue
b. Any unprofessional or unethical conduct
c. Malpractice
d. Violation of RA, IRR, COE, standards
Revocation is not permanent
Reinstatement, Reissuance and Replacement of Revoked or
Lost Certificates
BOA may reinstate the validity of revoked certificate after
expiration of 2 years from the date of revocation
*A person shall not represent himself as CPA if he is not a
CPA
* Single practitioners and partnership organize for practice of
public accountancy should be CPA
* PROHIBITED = Corporation type in practice of accountancy
Rules on Name – shall not include any fictitious name
Individual – shall do business under his registered name
Firm – shall do business under firm name (DTI support)
Partnership – shall do business under partnership name (SEC)
Death, withdrawal or resignation of all other partners
- Remaining partner may continue to use old
partnership name not more than 2 years after
becoming a sole proprietorship
- Should change the old name on or before reaching
two-year period
 Flexible CPA units 80 units
Total 120 units
Certificate of Accreditation • required minimum unit earned from previous year =
Requirement: acquired a minimum of 3 years meaningful 20 credit units
experience in any scope • Flexible CPD units may be earned on three different
(at least 1 year as audit assistant and at least 2 years as competency areas
auditor in charge)
Other meaningful experience: How to earn CPD credit units?
a. Commerce and industry with significant involvement 1. Seminars/Workshops
in general accounting and such 2. Academic Track
b. Accumulated teaching experience is not less than 3 3. Self-Directed/ Lifelong Learning
school years 4. Activities by CPD Council (ex: webinar)
c. Government with significant involvement in general
accounting and such

Renewal and Expiration of Certificate of Accreditation

- Validity: 3 years
- Renewal: every 3 years on or before Sept 30

However, BOA Resolution No. 254 Series of 2017

Validity is 3 years but Expiration and Renewal is at:
Individual professionals – date of birth
Firms/Partnerships – month of SEC registration date

Seal and Use of Seal

- with registrant’s name, registration number and title
- audit report: with seal indicating PTR number,
date/place of payment
Upper: Name
Middle: CPA
Lower: Registration Number
- affixing this is an indication of compliance

* working papers are confidential, privileged and property of

CPA
* person not citizen of the Philippines is NOT ALLOWED to
practice unless there is foreign reciprocity
* violator of RA 9298: not less than 50K or imprisonment of
not exceeding 2 years or both

Continuing Professional Development (RA 10912)

- effective and credible means of ensuring
competence

Required CPE Credit Units

1. Renewal of PIC – 15 credit units from any area
Exemptions:
• professional working overseas
• newly licensed professional
2. For accreditation – 120 credit units
Competency Areas:
a. Competence 30 units
b. Skills 5 units
c. Values 5 units 40 units