AUDTHEO

• Practice of Public Accountancy includes:

  • Holding out oneself as skilled in accounting
  • Offering services such as audit, verification of financial transactions, preparation of reports, design of accounting systems, and preparation of income tax returns
  • Representing clients before government agencies on tax and accounting matters
• Practice in Commerce and Industry involves decision-making requiring professional knowledge in accounting or a position that requires a certified public accountant
• Practice in Education/Academe includes teaching accounting, auditing, management advisory services, finance, business law, and taxation
• Practice in the Government involves positions in government or government-owned corporations where professional knowledge in accounting is required
• RA 9298 governs the standardization and regulation of accounting education, examination for registration of CPAs, and supervision of the practice of accountancy in the Philippines
• Qualifications for Board members:

  • Must be a natural-born citizen and resident of the Philippines
  • Must be a registered CPA with at least 10 years of work experience
  • Must have good moral character and no convictions of crimes involving moral turpitude
  • Must not have pecuniary interest in educational institutions or be a director/officer of the APO
• Powers and Functions of the Board include:

  • Prescribing rules and regulations
  • Supervising registration and practice of accountancy
  • Issuing, suspending, revoking, or reinstating CPA certificates
  • Adopting a Code of Ethics
  • Monitoring conditions affecting the practice of accountancy
  • Conducting oversight into the quality of audits
  • Investigating violations and issuing orders
  • Preparing syllabi for examinations and ensuring compliance with educational standards
• Board members hold office for 3 years and may not serve two successive complete terms without a one-year lapse
• Grounds for Suspension or Removal of Board members:

  • Neglect of duty or incompetence
  • Violation of the Act, Code of Ethics, or professional standards
  • Final judgment of crimes involving moral turpitude
  • Manipulation of licensure examination results
• Qualifications for CPA Examination applicants:

  • Filipino citizen
  • Good moral character
  • Holder of a Bachelor of Science in Accountancy degree
  • No convictions of criminal offenses involving moral turpitude
• Subjects covered in the CPA Licensure Examination:

  • Advanced Financial Accounting and Reporting (AFAR)
  • Auditing (AUD)
  • Financial Accounting and Reporting (FAR)
  • Management Advisory Services (MAS)
  • Taxation (TAX)
  • Regulatory Framework for Business Transactions (RFBT)
• Passing the exam requires a general average of at least 75% with no grades lower than 65% in any subject
• Conditional passing is achieved with a general average below 75% but with 75% and above in at least 4 out of 6 subjects
• Candidates failing the exam must retake within two years, and those failing twice must complete 24 units of subjects before retaking
• The Board must submit candidate ratings to the Commission within 10 days after the exam, and candidates receive their ratings by mail within 10 days of release
• Successful candidates in the examination must take an oath of profession before any member of the Board or authorized government official before practicing
• A roster of all registered certified public accountants must be prepared and updated by the Board
• Certificate of Registration issuance:

  • Issued to examinees who pass the licensure examination
  • Issued to persons admitted under reciprocity or international agreements
  • Includes full name, registration number, signatures of Commission chairperson and Board members, and official seals
• Professional Identification Card issuance:

  • Includes registration number, date of issuance, expiry date
  • Duly signed by the Commission chairperson
  • Renewable every three years
• Special/temporary permits may be issued by the Board for specific purposes to foreign CPAs
• Certified public accountants must indicate their registration number, date of issuance, validity duration, and Professional Tax Receipt number on all professional documents
• Grounds for refusal to issue a certificate of registration and professional identification card include criminal offenses, immoral conduct, and unsound mind
• The Board has the power to suspend or revoke certificates for various reasons, including unprofessional conduct, malpractice, and violation of regulations
• After two years from revocation, the Board may reinstate a revoked certificate upon application and proper reasons
• No person can practice accountancy without a certificate of registration and professional license
• Single practitioners and partnerships for public accountancy must be registered certified public accountants in the Philippines
• CPAs engaged in public accountancy must obtain a seal prescribed by the Board for use on documents
• Foreign reciprocity allows subjects or citizens of foreign countries to practice accountancy in the Philippines under specific conditions
• All registered CPAs must be members of the Philippine Institute of Certified Public Accountants
• Violations of the Act or its regulations may result in fines or imprisonment
• CPD program under RA 10912:

  • CPD inculcates advanced knowledge, skills, and ethical values
  • Voluntary compliance ensures competence and integrity
  • Required CPE credit units for renewal and accreditation
  • Minimum units in technical competence, professional skills, values, ethics, and attitudes
  • Various ways to earn CPD credit units
• Financial Reporting Standards Council (FRSC) consists of fifteen members, including a chairman and representatives from different areas of accounting practice
• Financial Reporting Standards Council (FRSC) is composed of fifteen (15) members
• Chairman must have been or presently a senior accounting practitioner in any scope of accounting practice
• Representatives include members from various organizations such as Board of Accountancy, Commission on Audit, Securities and Exchange Commission, Bangko Sentral ng Pilipinas, Bureau of Internal Revenue, a major organization composed of preparers and users of financial statements, and Accredited National Professional Organization of CPAs in different sectors
• Auditing and Assurance Standards Council (AASC) consists of fifteen (15) members
• Chairman must have been or presently a senior practitioner in public accountancy
• Representatives include members from various organizations such as Board of Accountancy, Commission on Audit, Securities and Exchange Commission, Bangko Sentral ng Pilipinas, an association or organization of CPAs in active public practice of accountancy, and Accredited National Professional Organization of CPAs in different sectors
• Quality Review Committee (QRC) is composed of seven (7) members
• Chairman must have been presently a senior accounting practitioner in public accountancy