Practice and Regulation of the Accountancy Profession

• There are four scope of practice in accountancy: Public Practice, Commerce and Industry, Academe/Education and Government. 
• It Is a client-service provider relationship.

  Public Practice
• It is an employer-employee relationship

  Commerce and Industry and Government
• Commerce and Industry is a practice that shall constitute a person involved in 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   
• In a commerce and industry there is a Specific provision for Supervisory level. It shows that the entities with an annual revenue or atleast 10,000,000 and/or paid up capital of at least 5,000,000.    
• Teaching any subject given in the licensure exam

  Education/Academe
• Academe/Education is a practice that shall constitute a person in an educational institution that involves teaching accounting, auditing, management advisory services, finance, business law, taxation, and other technically related subjects.   
• In the practice of Academe/Education, the members of The Integrated Bar of the Philippines is/may be allowed to teach the subjects: Business Law and Taxation.  
• There is a specifice provision in the practice of Academe/Education for Deans and Deparment heads. The Dean, for institutions offering BSA under an exclusive department must be a CPA. The Department head, for institutions offering BSA together with other business courses must be CPA 
• Government Practice shall constitute a person who holds, or is appointed to, a position in an accounting professional group in government or a government-owned and/or controlled corporation, including those performing proprietary functions where decision making requires professional knowledge in the science of accounting.     
• Civil service eligibility as a Certified Public Accountant is a prerequisite

  Government Practice
• The Three Specified Objectives of the Accountancy Act of 2004 are: The Standardization and Regulation of Accounting Education, The Examination for registration of CPA and The Supervision, Control, and regulation of the practice of Accountancy in the Philippines  
• Republic Act No. 9298 (R.A.9298) is the Philippine Accountancy Act of 2004.
• It is the Regulatory act of the practice of accountancy in the Philippines.

  Republic Act No. 9298
• Republic Act No. 9298 supersedes Presidencial Decree No. 692 (P.D.692).
• Presidential Decree No. 692 is also known as

  The Revised Accountancy Law
•  BOA means

  Board of Accountancy
• The Three Specified Objectives of the Accountancy Act of 2004

  The Standardization and Regulation of Accounting Education, The Examination for registration of CPA, and The Supervision, Control, and regulation of the practice of Accountancy in the Philippines  
• BOA is composed of a Chairman and 6 members.
• A Chairman and 6 members of BOA is to be appointed by the President of the Philippines.   
• PICPA means 

  Philippine Institute of the Certified Public Accountants
• In appointing the members of BOA, PICPA will submit the 5 nominees for each position to the PRC.
• How many days does PICPA needs to submit the nominees for each position to the PRC/Board?

  60 days
• Through the nominees that PICPA submitted, the PRC/Board will choose 3 nominees each position and will submit to the President of the Philippines. 

   
• The President of the Philippines shall appoint one member from the three (3) nominees per position as provided under Section 12 of RA No. 9298.
• A Vice Chairman of BOA shall be elected from among its members for a term One year.
• There are five qualification that a Chairman and 6 members of BOA must possess.   
• Qualifications of Members of BOA


  Must be a Natural-born citizen and Resident of the Philippines

  Must be a Duly registered CPA with atleast 10 years of work experience in any scope of practice of accountancy

  Must be of Good moral character and must not have been convicted of crimes involving moral turpitude

  Must not have any pecuniary interest directly/indirectly

  Must not be a director or officer of the APO at the time of his appointment

     
• The Chairman and members of the Board shall hold office for a term of three years.
• The members can serve the Board for not more that 12 years
• The members who has served two (2) successive complete terms shall be eligible for reappointment until the lapse of one (1) year.
• Powers and functions of the Board


  • Prescribe and adopt the rules and regulations
  • Supervise the registration, licensure, and practice of accountancy
  • Administer oaths
  • Issue, suspend, revoke, or reinstate certificate of registration
  • Adopt an official seal of the board
  • Prescribe and/or adopt code of ethics
  • Monitor the conditions affecting the practice of accountancy
  • Conduct oversight into the quality of audits of financial statements
  • Investigate violations
  • Issue a cease or desist order if engaged to violation
  • Punish for contempt of the board
  • Prepare, adopt, issue or amend the syllabi of the subjects for examinations
  • Ensure in coordination with the CHED
  • Exercise such other powers
• The Board shall be under this of the Administrative Supervision of the PRC

    
• All records of the Board, including applications for examinatiins, exam questions, answer sheets, and other records and documents pertaining to CPALE, and administrative and other investigative cases conducted by the Board shall be under the Custody of the PRC 
• The PRC shall provide the Secretariat other support services to implement the provision of R.A. 9298
• The Board, at the Close of each Calendar year, submit an Annual Report to the President of the Philippines through the PRC giving a detailed account of its proceedings and accomplishments during the year end and making recommendations.
• The President of the Philippines may suspend/revoke any member of the Board.
• Grounds for Suspension/Removal of Members


  Neglect of Duty/Incompetence

  Violation/Tolerance of any violation of this Act

  Final Judgement of crimes involving moral turpitude

  Manipulation or rigging the CPALE results, disclosure of secret and confidential information, or tampering grades     
• The number of recomendees for each position in the Board to be submitted by the PRC is 

  Three
• The four sectors in the practice of accountancy shall as much as possible represented in the Board

  Equally