The Professional

Practice of
Accounting
“ No man ever reached to
excellence in any one art or
profession without having
passed through slow and painful
process of study and
preparation”. Horace 65BC
Learning Objectives

▰ Identify the different sector of accounting practice

▰ Understand the regulating process of the accounting profession
▰ Identify the different organizations affecting accountancy
▰ Discuss what is the professional regulatory board of accountancy
▰ Identify the different standard setting bodies of Accountancy
▰ Identify the different professional organizations of Accountancy
▰ Identify the different requirements to obtain a CPA certificate
▰ Explain the process for Foreign CPA
Attributes of a Profession

▰ Mastery of a particular intellectual skill

▰ Adherence by its members to a common code of
values and conduct
▰ Acceptance of a duty to society as a whole
Sectors of Accounting Practice
Public

Education
Practice Private

Governmen
t
Regulation of the Accounting
Profession

▰ RA. 9298
▰ Financial Reporting Standards and Engagement
Standards established by recognized standard setting
bodies
▰ Adoption of a Code of Ethics for CPAs
▰ Self regulation through a system of quality control
▰ Sanctions/penalties against violators
Organizations affecting
Accountancy
PRBOA

▰ Composed of 6 members appointed by the President

▰ Nomination and Appointment Process
▰ Adoption of a Code of Ethics for CPAs
▰ Self regulation through a system of quality control
▰ Sanctions/penalties against violators
PRBOA

A member of the BOA shall possess the following qualification

▰ Natural born citizen and a resident of the PH
▰ Duly registered CPA with at least 10 years of work experience
▰ Good moral character
▰ Must not have any pecuniary interest
▰ Must not be a director or officer of the APO at the time of appointment
PRBOA

Terms of Office
The chairman and members of the PRBOA shall hold office for a term of 3 years. No
person who has served 2 successive complete terms shall be eligible for reappointment
until the lapse of 1 year. No person shall serve in the Board for more than 12 years.
Power and Functions
Section 9 of RA 9298 list the specific powers, functions and responsibilities.
PRBOA

Councils formed to assist the PRBOA

▰ Education Technical Council (ETC) – upgrading accounting education
▰ Quality Review Committee – oversight into the quality of audits of FS through
review of the quality control measures
▰ PRC CPD Council – implementing the CPD
PRBOA

Grounds for Removal and Suspension of Members of PRBOA

▰ Neglect of duty or incompetence
▰ Violation of RA 9298 and its IRR
▰ Final judgment of crimes involving moral turpitude
▰ Manipulation or rigging of CPA licensure examinations results
COA

The Commission on Audit is the Supreme Audit Institution in the Republic of the
Philippines. It’s jurisdiction and responsibility is defined by the Constitution.

 Composed of a chairman and 2 commissioners

 Natural born citizens at least 35 years of age, CPA or lawyer (at least 10 years experience)
 Chairman and commissioner shall be appointed b the President with the for a term of 7 year
PROFESSIONAL
ORGANIZATIONS

PICPA – the accredited national professional organization for accountancy in the country.
Its mission is to enhance the integrity of the accountancy profession, serve the best
interest of its members and other stakeholders, and contribute to the attainment of the
country’s national objectives.

Sectoral Organizations
Public Practice – ACPAPP Education - nACPE
Commerce and Industry – ACPACI Government - GACPA
Requirement to Obtain a CPA
Certificate

▰ Degree in BSA and pass the CPALE

▰ CPALE – is a 4 day examination covering 6 subjects namely FAR, AFAR, MS,
RFBT, AUDITING and TAXATION.
▰ Qualification for Examination are:
i. Filipino citizen
ii. Good moral character
iii. Holder of BSA degree
iv. Has not been convicted of any criminal offense involving moral turpitude
Requirement to Obtain a CPA
Certificate

▰ Ratings in the CPALE:

i. Must obtain a general average of 75% with no grades lower that 65% in any given
subjects
ii. In the event a candidate obtains a rating of 75% and above in at least majority of subject
tested he/she shall receive a conditional credit; provided that such candidate shall take in
the remaining subjects within 2 years from the preceding examination.
iii. Any candidate who fails 2 complete CPALE shall be disqualified unless he/she have
completed at least 24 units of subjects given in the licensure examination
Requirement to Obtain a CPA
Certificate

▰ Certificate of Registration – shall be issued to examinees who pass the

licensure examination subject to payment of fees prescribe by the PRC
▰ PRD ID – bears the registration number, date of issuance, expiry date, duly
signed by the chairperson of the PRC renewable every 3 years
FOREIGN CPA

▰ Subjects or citizen of a foreign countries may be allowed to practice accountancy in

the Philippines in accordance with the provisions of existing laws, international treaty
obligations including mutual recognition agreements entered into by the Philippine
government with other countries.
▰ Special permits are issued to the following: foreign CPA called for consultation of
specific purpose; engaged as professor lecturer or critic essential to accountancy
education and internationally recognized expert or with specialization in any branch
of accountancy
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.
Penalties and Sactions

Suspension of CPA Revocation of CPA Cancellation of Payment of fines and or

Certificate Certificate Temporary or Special imprisonment
The BOA may suspend a CPA for The BOA may suspend a CPA for Permit Violators of RA 9298 and its IRR
any of the causes or grounds any of the causes or grounds Prevents the foreign CPA to shall be punished by a fine of not
mention in section 23 of RA 9298 mention in section 23 of RA 9298 practice accountancy in the less than 50,000 or by
Philippines imprisonment for a period not
exceeding 2 years or botsh
Thanks!
Any questions?