Professional Practice of

Accountancy
Role of the professional
accountant in the economy
A free-market economy can exist only if there
is sharing of accurate, reliable information
among parties that have a vested interest in
the financial performance and future
prospects of an organization. The market is
further strengthened if the data are
transparent and neutral.
Five major characteristics of
an ideal profession (SPCRC)
1. Systematic theory
2. Professional authority
3. Community sanction
4. Regulative code
5. Culture
1. Systematic theory

a. Accounting theory
b. Financial accounting and reporting
standards and practices
c. Auditing standards
d. Can be achieved through formal college-
level education in an academic environment
2. Professional authority

a. Judgment of what is good or bad for the

clients
b. Based on the expertise in the systematic
theory of accounting and auditing

3. Community sanction

c. Control in the admission to the profession

d. A candidate must be licensed by PRCBOA
through the CPALE
4. Regulative code

a. Since there is monopoly in the powers

and privileges granted to the public
accounting profession, abuse should
be prevented by…
b. Rules of professional conduct
c. Code of ethics
d. The accountancy law

5. Culture

e. The public accounting profession is a

time-honored profession
f. Accounting has developed a
professional culture as evidenced by
such factors as the formal norms of
the code of ethics, the informal rules
A profession has the following
characteristics

• Mastery of a particular intellectual

skill, acquired by training and
education
• Adherence by its members to a
common code of values and conduct
• Acceptance of a duty of society
A professional accountant is an individual who holds
a valid certificate issued by the Board of
Accountancy.

Scope of Practice
a. Practice of Public Accountancy—member in an
accounting or auditing firm, render professional
services, etc.
b. Practice in Commerce and Industry—involved in
decision making requiring professional knowledge
c. Practice in Education/Academe—a person in an
educational institution involving teaching accounting
subjects
d. Practice in the Government—appointed to a
position in the accounting professional group in
government or in a government-owned and/or
controlled corporation
Requirements to Enter the Accountancy
Profession (degree—CPALE—LRR)

a. Holder of BSA degree

b. Qualify as a professional accountant by
passing the CPALE administered by
PRC-BOA
c. Satisfy all other legal and regulatory
requirements
BSA Program (Pre-qualification education requirements)

I. Professional Accounting Education

a. Accounting, finance, and related knowledge
b. Organization and business knowledge
c. IT knowledge and competencies

II. Professional Skills and General Education PROFESSIONAL SKILLS

d. Intellectual skills
e. Technical and functional skills
f. Personal skills
g. Interpersonal and communication skills GENERAL EDUCATION

III. Professional Values, Ethics, and Attitude VALUES AND ATTITUDE

h. Commitment to the public interest and sensitivity to social
responsibilities
i. Continual improvement and lifelong learning
j. Reliability, responsibility, timeliness, courtesy, and respect
k. Laws and regulations PROFESSIONAL ETHICS
Education and development for maintaining and
acquiring the capabilities of professional accountants
can include:
(a) Advanced professional education pursued at
academic institutions or thru the programs of
professional bodies
(b) On-the-job-training and experience programs
(c) Off-the-job training
(d) Continuing professional development courses and
activities
Competency Requirements for professional Accountants in Public
Practice
A. Knowledge Content
a. Audit of historical financial information at an advanced level
i. Best practices in audit
ii. ISA & IAPS
iii. Any other applicable standards or laws

b. Financial accounting and reporting at an advanced level

iv. FAR processes and practices
v. IFRS
vi. Any other applicable standards or laws

c. Information technology
vii. IT systems for FAR
viii.ii. Frameworks for evaluating controls and assessing risks in
accounting and reporting systems

B. Practical Experience
Five different areas that the professional
accountant’s mindset needs to embrace

1. Professionalism and ethical behavior

2. Professional judgment
3. Organization and environmental
awareness
4. An investor and wider stakeholder
focus
5. Change, uncertainty, and complexity
How competencies can be developed and
maintained (specific development programs for
professional accountants):

(a) Exposure to various parts of the organization

(b) Formal and informal training, including
coaching and mentoring
(c) Synchronization of development with
organization maturity
Ten (10) Insights and Directions

1. Technology
2. Pre-certification and Lifelong Learning
3. Worldwide Profession
4. Pride in the Profession
5. Trusted Attester
6. Trusted Advisor
7. Market Permissions
8. Marketplace
9. Value Proposition
10.Demographic Shifts
Core Values and Competencies

Core values—the essential and enduring beliefs that it upholds over

time. These enable CPAs to retain their unique character and value
as they embrace the changing dynamics of the global economy
• integrity
• competence
• lifelong learning
• objectivity
• commitment to excellence
• relevance in the global marketplace

Core competencies—a unique combination of human skills,

knowledge, and technology that provides value and results to the
users.
• Communication skills
• Leadership skills
• Critical-thinking and problem-solving skills
• Anticipating and serving evolving needs
• Synthesizing intelligence to insight
• Integration and collaboration