Tanglao, Prana Elizabeth D.

A-336
AAPRINCIPLES

1. What are the laws that paved the way towards making Accountancy a recognized
profession?

Exploring history, Philippines had already practiced accounting during ancient

times through trading of goods to others (Malays, Chinese, etc.). According to
Business Mirror, The Philippine public accounting practices originated in the 1700s.
The accounting profession was formally recognized by the Philippine government on
March 17, 1923. This formalization is served as an initial move toward the growing
accountancy profession in the country and was written through Republic Act (RA)
3105. Through this act, the Board of Accountancy was created and was grant the
authority to issue certificates to qualified applicants. This certificate will serve as an
evidence of passing the rigorous process of being a CPA, which includes passing
the CPA board exam.

As years passed by, there are some developments that happened and several
changes that occurred with RA 3105. These includes, The CPA Examination scope,
the qualification to apply, and the rating required to pass.

In 1923, the scope of the CPA board exam is only consisted of four subjects
which are Theory of Accounts, Practical Accounting, Auditing and Commercial Law.
Unlike today, the CPA board exam is already composed of six subjects which are
Financial Accounting and Reporting, Advance Financial Accounting and Reporting,
Management Advisory Services, Audit, Taxation and Regulatory Framework for
Business Transactions. At this moment, in order to qualify as a CPA board
examinee, the applicant must be a Filipino citizen; of good moral character; with a
Bachelor of Science degree in Accountancy; must not have been convicted of any
criminal offense involving moral turpitude; and with no minimum age requirement.
Back in 1923, a general average rating of 75% or over meant a passing rate. Today,
in addition to the general average of 75%, the applicant must not have had any
grade below 65% in any subject.

In November of 1929 Philippine Institute of Certified Public Accountants was

founded by Enrique Caguiat, Santiago de la Cruz, Francisco Dalupan, Jaime
Hernandez, Felipe Ollada, Ramon del Rosario, Antonio Sanchez, Jose Torres,
Artemio Tulio, Clemente Uson and Jesus Zulueta. W. W. Larkin—a group of of
pioneers in the accountancy profession that aims to set forth their objectives
(PICPA, n.d.).

In the year 1967, Republic Act 5166 or The Accountancy Act of 1967 was
passed and approved on August 4, 1967. The objectives of this act are to provide
supervision, control and regulation of accountancy in our country, examination for
registration, and standardization and regulation of practice of accountancy in the
Philippines.
Tanglao, Prana Elizabeth D.
A-336
AAPRINCIPLES
Base on the Official Gazette of the Republic of the Philippines (1975), In 1975,
under Presidential Decree No. 691 under the Marcos institution declares the
Revised Accountancy Law. Under section 3 of the Revised accountancy law
“ Practice of accountancy shall constitute in a person, be it in his individual capacity,
or as a partner or staff member in an accounting or auditing firm, holding out himself
as one skilled in the knowledge, science, and practice of accounting, and as
qualified to render professional services as a certified public accountant”.

After some years, the Revised Accountancy Law was Replaced by Republic Act
9298 or the Philippine Accountancy Act of 2004 that was approved on May 13,
2004. Up to present the Accountancy Act of 2004 were followed but few
amendments were made because of the change in accounting practice. (Oojeema,
2017)

2. What are the significant provisions in the Accountancy Act that pertains to the
following?

Based on the Official Gazette of the Republic of the Philippines (2004),

significant provisions in the Accountancy Act that pertains to accounting
education, examinations for registration, and supervision, control, and regulation
are listed herein.

a. Accounting Education

 The first provision is under Republic Act 9298 under Article II, Section
9:

“To prepare, adopt, issue or amend the syllabi of the subjects for
examinations in consultation with the academe, determine and prepare questions
for the licensure examination which shall strictly be within the scope of the syllabi
of the subjects for examinations as well as administer, correct and release the
results of the licensure examinations;”

“To ensure, in coordination with the Commission on Higher Education

(CHED) or other authorized government offices that all higher educational
instruction and offering of accountancy comply with the policies, standards and
requirements of the course prescribed by CHED or other authorized government
offices in the areas of curriculum, faculty, library and facilities.”

b. Examinations for registration as Certified Public Accountants

Under RA 9298 mentioned the provisions under Article III, Sections 13-25
Tanglao, Prana Elizabeth D.
A-336
AAPRINCIPLES
“SEC 13 The Certified Public Accountant Examinations – All applicants for

registration for the practice of accountancy shall be required to undergo a licensure to

be given by the Board in such places and dates as the Commission may designate

subject to compliance with the requirements prescribed by the Commission in

accordance with Republic Act No 8981.”