AGUANTA, Princess Nicole Allyson

IA – 331

Individual Assignment 06:

Regulation of the Public Accounting Practice

1. What are the laws that paved the way towards making Accountancy a recognized
profession?
 In 1923, the Board of Accountancy (BOA) was born thereby legally recognizing
accounting as a profession owing to the approval of Act No. 3105. Along the way,
BOA expanded through R.A 5166 or The Accountancy Act of 1967, and then
Presidential Decree No. 692 or The Revised Accountancy Law in 1975. Also over
the years, R.A 3105 changed with further developed the accounting profession.
These changes included the scope of the CPA examination, qualifications, and
passing rate. Then in 2004 came the R.A. No. 9298, what we now all know as
The Philippine Accountancy Act of 2004, which regulates the practice of
accounting in the Philippines and was also revised in 2018.. All these changes
and laws prove how Accountancy is a profession which continues to develop and
has an importance in the nation-building process – important enough to have its
own laws.

2. What are the significant provisions in the Accountancy Act that pertains to the
following?
a. Accounting Education
 Article II Section 9 (m) and (n) states that the BOA has the power to
preside over the accounting education, in coordination with CHED
and other authorized government offices.

b. Examinations for registration as Certified Public Accountants

 Provisions under Article III of R.A. 9298 provides for the rules on
examination, registration, and licensure of Certified Public
Accountants. In here are the specific qualifications, scope of
examinations, passing rates, and other requirements.

c. Supervision, control, and regulation of the practice of Accountancy in the

Philippines
 Article IV of the same law contains the provisions for the regulation
of the practice of Accountancy – including the requirement for a
CPE program and limitations. Article II provides the provisions for
the BOA which is the professional regulatory board for accounting
in charge of supervision and control of the profession.

3. What are the significant provisions of RA 10912 that has an impact to the profession?
 Article III, specifically Section 10, states that the Continuing Professional
Development Program is a mandatory requirement in the renewal of
professional licenses. Provisions under this article provides for the
implementation and monitoring of the CPD Program.
AGUANTA, Princess Nicole Allyson
IA – 331

4. What is SRC 68 and how does it affect the practice of public accounting?
 SRC 68, also known as the Revised Securities Regulation Code Rule 68,
provides the rules and regulations for the form and content of financial
statements to be filed with the Commission. If corporations apply this rule in
preparing the required financial statements, then they are sure that they have
complied with the GAAP. This is applicable for corporations whose paid-up
capital is more than P50,000.00.