Regulation of the Public

Accounting Practice
Module 06
9 8
. 92
R. A
 CPA Licensure Exams: Qualifications
• Filipino citizen
• good moral character
• holder of the degree of Bachelor of Science in
Accountancy conferred by a school, college,
academy or institute duly recognized and/or
accredited by the CHED or other authorized
government offices
• has not been convicted of any criminal
offense involving moral turpitude.
 CPA Licensure Exams: Application
 Certificate of Live Birth in National
Statistics Office (NSO) Security
Paper;
 Marriage Contract in NSO
Security Paper for
married female
applicants;
 College diploma with
indication therein of date
of graduation and Special
Order Number unless it is
not required;
 Baccalaureate Transcript of
Records with indication of date
of graduation and Special Order
Number unless it is not required;
 National Bureau of
Investigation (NBI) Clearance;
 Other documents
that the Board
may require.
 CPA Licensure Exams: Scope
• Practical
• Financial
Accounting
Accounting
Problems
andI Reporting
• Advanced Financial Accounting
• Practical and Reporting
Accounting Problems II
• Theory
• Auditing Theory• Auditing • Auditing Problems
of Accounts
• Management
• ManagementAdvisory
Services
Services
• Regulatory
• Business
Framework for Taxation
Law and Business Transactions
• Taxation

PRBOA Resolution # 262, Series of 2015

Rating in the Licensure Examination
• •Subj
Subj•01
01==90
89
80
90Subj
Subj02
02 ==64
88
68
64Subj
72
Subj03
03 90
==74
75
90
• Hopeful
Hopeful 02
01 =
= 74.67%
82.67%
• Hopeful 03 = 74.83%
• • Subj
Subj0404==76
95
95Subj
Subj05
05==78
90
90Subj
Subj06 73 85
06==72
93
90 77
• •Hopeful 05
Hopeful04 87.00%
05==75.67%
83.67%

• Conditional… • Failed 
 CPA Licensure Exams: Ratings
Board shall submit to the Commission shall send by mailing the rating
the Commission within received by each examinee at his/her given
ten (10) calendar days address using the mailing envelope submitted
after the examination during the examination.

• How do you know your ratings?

 CPA Exams : Failing Candidates
ONE FAILED = ONE Attempt

CONDITIONAL + REMOVAL =
ONE Attempt

• Take
• What to do?it again?
WAIT! Any candidate who fails in two (2) complete Certified Public
Accountant Board Examinations shall be disqualified from taking
another set of examinations unless he/she submits evidence to the
satisfaction of the Board that he/she enrolled in and completed at
least twenty-four (24) units of subject given in the licensure
examination.
End of Part ONE !
Regulation of the Public
Accounting Practice
Module 06 68
u le
C R
SR
Part TWO!
 SRC Rule 68: What is it?
• REVISED Securities Regulation Code (SRC) Rule 68

Qualifications and
General Guidelines to
Reports of Independent
Financial Statements
Auditors
Preparation
 Qualifications of Independent Auditors
Accreditation of Independent Auditors of SEC Regulated Entities and Other
Entities
Group A
• Issuers of registered securities which have sold a class of securities pursuant to a
registration under Section 12 of the SRC except those issuers of registered
timeshares, proprietary and non- proprietary membership certificates which are
covered in Group B. This category shall also cover corporations applying for the
registration of their securities;
• Issuers with a class of securities listed for trading in an Exchange;
• Public companies or those which have total assets of at least Fifty Million Pesos (P50
Million) or such other amount as the Commission shall prescribe, and having two
hundred (200) or more holders each holding at least one hundred (100) shares of a
class of its equity securities;
• Clearing agency and clearing agency as depository; and
• Stock and securities exchange/s and other Self- Regulatory Organizations.
 Qualifications of Independent Auditors
Accreditation of Independent Auditors of SEC Regulated Entities and Other
Entities
Group B
• Issuers of registered timeshares, proprietary and non-proprietary membership certificates,
and corporations applying for the registration of such securities;(Previously, corporations
applying for the registration of such securities is not included.)
• Investment houses;
• Brokers and dealers of securities;
• Investment companies that are not in the process of registering securities or have no
registered securities yet;
• Government securities eligible dealers;
• Universal banks registered as underwriters of securities;
• Investment company advisers;
• Special purpose corporations registered under the Securitization Act of 2004 and its
implementing rules; and
• Such other corporations which may be required by law to be supervised by the Commission
 Qualifications of Independent Auditors
Accreditation of Independent Auditors of SEC Regulated Entities and Other
Entities
Group C
• Transfer agents;
• Financing companies whose assets in the preceding year are above Ten Million Pesos (P10
Million);
• Lending companies whose assets in the preceding year are above Five Million Pesos (P5
Million);
• Non-stock, non-profit corporations including foundations which solicit or receive annual
donations or contributions and/or with fund balance amounting to more than Twenty-Five
Million Pesos (P2S Million) and One Hundred Million Pesos (P100 Million), respectively,
over the preceding three (3) years, or such higher amount that the Commission may set
through order or guidelines; and
• Such other corporations that the Commission may consider as imbued with public interest
regardless of the lack of a requirement to obtain a secondary license from the Commission.
Qualifications of Independent Auditors
Significant Notes:
Sole Practitioners may be accredited
Firm + Signing partners for Group C audit, but are expected
engaged in A, B, and C to convert to partnership by June 30,
Audit must be accredited 2022 in order to be re-accredited.

Accreditation is valid for 3 years, Group A accreditation is

renewal must be placed at least valid for B and C, Group
30 days before expiry. B valid also for C.

Audit key partner, involved in

seven years, must have a 2-year
cooling off period.