The Professional Practice

of Accounting
Sectors of Accounting Practice

 Public Accountancy
 Commerce and Industry
 Education or Academe
 Government
Practice in Commerce and Industry

 Involves decision-making requiring

professional knowledge in the science of
accounting; or when such employment or
position requires that the holder thereof
must be a CPA
Regulation of the Accounting Profession

 Republic Act 9298 (The Philippine Accountancy Act of 2004)

 Financial Reporting Standards and
Engagement Standards issued by standard-
setting bodies
 Code of Ethics for CPAs in the Philippines
 Self-regulation through a System of Quality
Control
 The Professional Regulatory
Board of Accountancy

 Composition and term of office

 Nomination and Appointment Process

 Qualifications of Members
 Powers and Functions of BOA
 Supervise the registration, licensure and practice of
accountancy in the Philippines.
 To administer oaths in connection with the
administration of RA No. 9298
 To issue, suspend, revoke or reinstate the
Certificate of Registration
 To prescribe and/or adopt a Code of Ethics for the
practice of accountancy
 Powers and Functions of BOA
 To monitor the conditions affecting the practice of
accountancy and adopt such measures deemed
proper for the enhancement and maintenance of
high professional, ethical, accounting and auditing
standards
 To conduct an oversight into the quality of audits
of financial statements through a review of the
quality control measures instituted by auditors to
ensure compliance with accounting and auditing
standards
 Powers and Functions of BOA

 To investigate violations of RA 9298 and the

rules and regulations promulgated hereunder

 To prepare, adopt, issue or amend the syllabi

of the subjects for examinations; and to
determine and prepare questions for the
licensure examination as well as administer,
correct and release the results of the licensure
examinations
 Councils Formed by the BOA

 Education Technical Council (ETC)

 Quality Review Committee

 PRC CPE Council

 Functions of the ETC
 Determine a minimum standard curriculum for the
study of accountancy to be implemented in all
schools
 Establish teaching standards, including the
qualifications of members of the faculty
 Monitor the progress of the program on the study of
accountancy and undertaking measures for the
attainment of a high quality of accountancy education
 Evaluate periodically the performance of educational
institutions offering accountancy education
 Standard-Setting Bodies

 Accounting: Financial Reporting Standards

Council or FRSC

 Auditing: Auditing and Assurance

Standards Council or AASC
 CPA Board Examinations

 To qualify as a CPA, a candidate must

obtain a general average of seventy-five
percent (75%), with no grade lower than
sixty-five (65%) in any given subject.
 CPA Board Examinations

 In the event a candidate obtains a rating of seventy-five

percent (75%) and above in at least a majority of
subjects tested, he/she shall receive a conditional
credit for the subjects passed; and

 shall take an examination in the remaining (i.e., failed)

subjects within two years from the preceding
examination; and must obtain a general average of at
least 75% and a rating of at least 65% in each of the
subjects re-examined.
 CPA Board Examinations

 Any candidate who fails in two complete CPA

Board Examinations shall be disqualified from
taking another set of examinations unless the
candidate submits evidence to the satisfaction of
the Board that he/she enrolled in and completed
at least 24 units of subjects given in the
licensure examination (i.e., Refresher Course).
 Registration of CPAs

 A certificate of registration (CPA certificate) shall be issued

to examinees who pass the licensure examination subject
to payment of fees prescribed by the PRC

 A Professional Identification Card (PRC ID) bearing

registration number, date of issue, expiry date, duly signed
by the chairperson of the PRC, shall be issued to every
registrant renewable every three years.
Refusal to Issue Certificate and PRC ID

The Board shall not register and issue a certificate

of registration and PRC ID to any successful
examinee who:
 Was convicted by a court of a criminal offense
involving moral turpitude
 Is guilty of immoral and dishonorable conduct
 Has an unsound mind
 Made misrepresentation in the application for the
CPA examination
Continuing Professional Education (CPE)

 CPE refers to the inculcation, assimilation and

acquisition of knowledge, skills, proficiency and
ethical and moral values, after the initial
registration of a CPA.
 CPE programs usually consist of seminars,
conventions, graduate studies (masteral and
doctoral degrees), authorship, and self-directed
learning packages.
 CPE Credit Units

 The total CPE credit units for registered

accounting professionals shall be sixty
(60) credit units for three years, provided
that a minimum of fifteen (15) credit units
shall be earned in each year
 Exemption from CPE Requirements

 Permanent exemption - - 65 yrs old CPAs

 Temporary exemption - - those who are abroad

in the practice of the profession or for studies,
provided that he/she has been out of the country
for at least two years immediately prior to the
date of renewal
CPE Accredited Programs and Activities

 Seminars
 Conventions
 Masteral Degree
 Doctoral Degree
 Authorship
 Self-Directed Leaning Package
Examples of Violations of the IRR to RA 9298

 Engaging in public accounting practice without first

registering with the BOA and the PRC

 Continuing to engage in the practice of public

accountancy after the expiration of the registration

 Continuing to engage in the practice of public

accountancy after suspension, revocation, or withdrawal
of the registration
Examples of Violations of the IRR to RA 9298

 Giving any false information, data, statistics, reports or

other statement which tend to mislead, obstruct the
registration of individual CPA, Firm or Partnership of CPAs

 Giving any misrepresentation to the effect that registration

was secured when in truth and in fact, it was not secured;

 Failure or refusal to undergo quality review

 Failure to comply with the requirements for registration

 Penalties and Sanctions

 Suspension of CPA Certificate

 Revocation of CPA Certificate
 Cancellation of Temporary or Special Permit
 Payment of fines and/or Imprisonment