Profession- group of individuals who adhere to
Professional behavior – to comply with o CONDITIONAL: -Average of at least 75% with a
ethical standards and are accepted by the public as
possessing special knowledge and skills
Due to the public duty of professions these are
governed by special laws
In our case, we have the accountancy law to govern
the accountancy profession in the Philippines
The Accountancy Profession
In the Philippines, a professional accountant is
a Certified Public Accountant (CPA). This person
passed the CPA Licensure Exam set by the
Philippine government and is the only one allowed
to practice accountancy in the Philippines
A professional accountant adhere to the Code of
Ethics of Professional Accountants as required by
law and by the profession. These are the following
ethical traits that a professional accountant should
abide:
1. Integrity – to be straightforward and honest in
all professional and business relationships
2. Objectivity – to not allow bias, conflict of
interest or undue influence to override
professional and business judgment
3. Professional competence and due care –
maintain professional knowledge and skills as
required and ensure diligent acts
4. Confidentiality – respect confidentiality of
information acquired as a result of professional
or business relationships
5.
relevant laws and avoid actions that discredits
the profession
OVERALL OBJECTIVE OF ACCOUNTING
 To provide quantitative financial information
about a business that is useful to statement
users, particularly owners and creditors, in
making economic decisions
 Essence: decision-usefulness
 Accountant’s primary task: supply financial info
for statement users to make informed
judgement and better decision
RA 9298: PH ACCOUNTANCY ACT OF 2004
The law regulating the practice of accountancy in
the Philippines
BOARD OF ACCOUNTANCY
 The body authorized by law to promulgate rules
and regulations affecting the practice of the
accountancy profession in the PH.
 Responsible for preparing and grading the
Philippine CPA Examination
PHILIPPINE CPA EXAMINATION
 Computer based
 Twice a year, May and October
 STATUS
o PASSED -Average must be at least 75% with no
grade lower than 65% in any subject.
grade lower than 65% in at most two subjects. -
Conditionals must retake and pass their failed
subjects within two years
o FAIL: -Average lower than 75% and/or a grade
lower than 65% in more than two subs. -Failure
to retake and pass (if conditional)
Note: You can only retake the CPA Exam twice. If
you haven’t passed by the second take, you need to
renew at least 24 units of subject given in the
licensure exam
CPA LICENSURE SUBJECTS
1. AUDITING
2. TAXATION
3. FINANCIAL ACCOUNTING AND REPORTING
4. ADVANCED FINANCIAL ACCOUNTING AND
REPORTING
5. MANAGEMENT ADVISORY SERVICES
6. REGULATORY FRAMEWORK FOR BUSINESS
TRANSACTIONS
LIMITATION OF THE PRACTICE OF PUBLIC
ACCOUNTANCY
 Single practitioners and partnerships shall be
registered CPAs in the country
 A certify of accreditation shall be issued to CPAs
in public practice only upon showing the BoA
and the PRC three years of meaningful
experience in any areas of public practice
including taxation.
 The SEC shall not register any corporation -CPAs can represent the client in tax investigations transactions involving the receipt and
organized for practice of public accountancy. -CPAs must be thoroughly familiar with tax laws disposition of government funds and property
o Focus: custody and administration of public
PRC- Professional Regulation Commission SEC-
o MANAGEMENT ADVISORY SERVICE (MAS) funds
Securities and Exchange Commission
-Services to clients on matters of accounting, o Many CPAs are employed in BIR, COA, DBM,
ACCREDITATION TO PRACTICE PUBLIC finance, and other phases of business conduct and SEC, and BSP
ACCOUNTANCY operation.
 Required to register with the BoA and PRC CONTINUING PROFESSIONAL DEVELOPMENT LAW
 PRC will issue a certificate of registration to MAS includes: o RA 10912
practice public accountancy valid for three  Advice on computer system instalment o The law mandating and strengthening the CPD
years and renewable every three years upon  Quality control program for all regulated professions, including
payment of required fees.  Installation and modification of accounting accountancy
system o CPD refers to the inculcation and acquisition of
PRACTICE IN THE PROFESSION
 Budgeting advanced knowledge, skill, proficiency, and
1. PUBLIC  Forward planning and forecasting ethical and moral values afters the initial
 Render independent and expert financial  Design and modification of retirement plans registration of the CPA for assimilation into
service to the public  Advice of mergers and consolidations professional practice and lifelong learning
o It raises and enhances technical skills and
KINDS:
2. PRIVATE competence.
o AUDIT o Maintaining records, producing financial
-Primary service offered reports, preparing budgets, and allocating CPD CREDIT UNITS
-Examination of FSs by independent CPAs for the resources o CPD Credit hours needed for the renewal of
expressing of an opinion as to the fairness of their o Employed in business entities o Controller: CPA license and accreditation of a CPA to
preparation Highest accounting officer in an entity practice the accountancy profession every
-External auditing is the attest function of o Objective of private CPA: assist management in three years
independent CPAs planning and controlling entity operations o Required for renewal
-Audited FS are required by the BIR to accompany o Responsibility of private CPA: determine o Mandatory for CPAs
filing annual ITRs various taxes needed to be paid o Exemption from renewal: CPAs 65 years old and
above
o TAXATION 3. GOVERNMENT
-Preparation of annual ITRs and determination of o Encompasses the process of analysing, SALIENT POINTS OF THE ACCOUNTANCY LAW
tax consequences of certain proposed business classifying, summarizing, and communicating all o RA 9298; PHILIPPINE ACCOUNTANCY ACT OF
endeavors 2004 (May 13, 2004)
o Mentions the revival of the CPD
o BOA
 Supervised by the PRC and is composed of a
chairman and six members appointed by
the President of the Philippines
o Admission requirements to CPA Boards
 Filipino citizen
 Good moral character
 Degree holder of BS in Acctg
o Scope of the CPA Boards
 Tests the overall knowledge and
competence of candidates
 Changes in subjects as per Reso 275 series
of 2015 by the Board Licensure Examination
for CPAs (BLECPA) :
 Old subs (7)
-Theory of Accounts
-Practical Acct Probs 1-2
-Mgt Services
-Auditing Theory
-Auditing Problems
-Business Law & Taxation
MORE THOROUGH NOTES ON REPUBLIC ACT 9298
 An Act Regulating The Practice Of Accountancy
In The Philippines, Repealing For The Purpose
Presidential Decree No. 692, Otherwise Known
As The Revised Accountancy Law, Appropriating
Funds Therefor And For Other Purposes
 “Philippine Accountancy Act of 2004”
 Objectives
 The standardization and regulation of
accounting education;
 The examination for registration of certified
public accountants;
 The supervision, control, and regulation of
the practice of accountancy in the
Philippines.
 Scope of Practice (Sectors)
 Practice of Public Accountancy
 Practice in Commerce and Industry
 Practice in Education
 Practice in the Government
 Professional Regulatory Board
- supervises the registration, licensure and practice
of accountancy in the Philippines and carries out
the provisions of this Act.
 CPA Examinations
-All applicants for registration for the practice of
accountancy shall be required to undergo a
licensure examination to be given by the Board
 Qualifications of Applicants for Examination
o Filipino citizen
o Good moral character
o BSAC degree
o No criminal offense
 Prohibitions in the Practice
-You cannot practice unless such you received from
the Board a certificate of registration/ professional
license and be issued a professional identification
card or a valid temporary/special permit duly issued
to him/her by the Board and the Commission
 Vested Rights
All certified public accountants shall automatically
be registered under the provisions hereof, subject
however, to the provisions herein set forth as to
future requirements.
 Limitations
-Single practitioners and partnerships for the
practice of public accountancy shall be registered
provided that the registrant has acquired a
minimum of three (3) years meaningful experience
in any of the areas of public practice including
taxation.
 Ownership of Working Papers
-All working papers made by CPAs and their staff
shall be treated confidential and privileged and
remain the property of such certified public
accountant in the absence of a written agreement
between the certified public accountant and the
client UNLESS such documents are required
through subpoena issued by an administrative
body.
 Accredited Professional Org
-All CPAs shall be united and integrated through
their membership in a one and only registered and
accredited national professional organization of
registered and licensed certified public accountants,
which shall be registered with the Securities and
Exchange Commission as a non-profit corporation
and recognized by the Board.
 Accreditation to Practice Public Accountancy
- CPAs register to the Commission and the
Board and such registration is renewed
every 3 years
 CPE Program
- All certified public accountants shall abide
by the requirements, rules and regulations
on continuing professional education to be
promulgated by the Board
 Seal and Use of Seal
- All licensed certified public accountants
shall obtain and use a seal of a design
prescribed by the Board bearing the
registrant’s name, registration number and
title.
 Foreign Reciprocity
o Subjects or citizens of foreign countries may
be allowed to practice Accountancy in the
Philippines in accordance with the provisions
of existing laws, international treaty
obligations including mutual recognition
agreements entered into by the Philippine
government with other countries.
o A person who is not a citizen of the
Philippines shall not be allowed to practice
accountancy in the Philippines unless he/she
can prove…
 Coverage of Temporary/Special Permits
o Special / temporary permit may be issued by
the Board subject to the approval of the
Commission and payment of the fees the
latter has prescribed and charged thereof to
foreign CPAs who are either:
 called for consultation or for a specific
purpose
 engaged as a professor, lecturer 12 or critic
in fields essential to accountancy education
in the Philippines and his/her engagement is
confined to teaching only
 an internationally recognized expert or with
specialization in any branch of accountancy
and his/her service is essential for the
advancement of accountancy in the PH