ACCOUNTING AS AN INFORMATION SYSTEM

 Accounting is an information system that

measures business activities, process
information into reports and communicates the reports to decision makers.

 A key product of this information system is a set of financial statements – the document
that report financial information about an entity to decision makers.

 Financial reports tell us how well an entity is performing in terms of profit and loss and
where it stands in financial terms.

OVERALL OBJECTIVE OF ACCOUNTING

 Provide quantitative financial information about a business that is useful to statement users
particularly owners and creditors in making economic decisions.

 An accountant’s primary task is to supply financial information so that the statement users
could make informed judgement or better decision.

 The essence of accounting is decision-

usefulness.

THE ACCOUNTANCY AS A PROFESSION

 Republic act 9298 is the law regulating practice of accountancy in the Philippines.

 The law is known as ”Philippine Accountancy Act of 2004” Board of Accountancy is the
body authorized by
the law to promulgate rules and regulations
affecting the practice of the accountancy
profession in the Philippines.

 Board of Accountancy is responsible for

preparing and grading the Philippine CPA
examination.

 Exam is offered twice a year. May and October.

LIMITATION OF THE PRACTICE OF PUBLIC ACCOUNTANCY

 Single practitioners and partnerships for the practice of public accountancy shall be
registered certified public accountants in the
Philippines.

 A certificate of accreditation shall be issued to certified public accountants in public

practice only upon showing in accordance with the rules and regulations promulgated by the
Board of accountancy and approved by the Professional Regulation Commission that such
registrant has acquired a minimum of three (3) years of meaningful experience in any areas of
public practice including taxation.

The Securities and Exchange Commission shall not register any corporation organized for
the
practice of public accountancy.
ACCREDITATION OF THE PRACTICE OF PUBLIC ACCOUNTANCY

 CPAs, firms and partnerships of CPAs, including partners and staff members are required
to register with the Board of Accountancy and PRC for the practice of public accountancy.

 The issued PRC certificate of registration shall be valid for three (3) years and renewable
every three years upon payment of required fees.