PRACTICE AND REGULATION OF THE
ACCOUNTANCY PROFESSION  Term of Office – 3 years
 RA 9298 – the Philippine Accountancy Act
of 2004
 Objectives:
o Standardization & regulation of
accounting education
o Examination for registration of
CPAs
o Supervision, control, &
regulation of the practice of
accountancy in the Philippines
 PRC & BOA – to effectively enforce the
provisions of RA 9298
 Secretary of Justice – legal adviser to PRC
and BOA
SCOPE OF PRACTICE
1. Public – there should be a client-service
provider relationship present
2. Commerce & Industry – employer-
employee relationship
 CPA is a must if:
o Paid-up capital > 5M
o Annual revenue > 10M
3. Government – employer-employee
relationship must be present
- Involves GOCC entities
4. Academe – involves teaching
BOARD OF ACCOUNTANCY (BOA)
- 1 chairman & 6 members
- 1 vice chairman from the members
- Sectors must be equitably represented
APO /
PRC President
PICPA
5 nominees 3 recommendees 1 appointee
 Qualification of Members
 Natural born resident citizen
 CPA w/ at least 10 year experience in
any scope
 With good moral character
 No pecuniary interest in any
educational institution
 Not a director / officer of APO during
his appointment
o Not more than 12 years
o After 2 successive complete terms, 1
year lapse before reappointment
o Vacancy shall be filled up for
unexpired portion only and shall not
be considered as a complete term
 Powers & Functions of BOA
o Prescribe & adopt the rules &
regulations necessary
o Supervise the registration, licensure,
and practice of accountancy
o Administer oaths in connection with
the administration of RA 9298
o Issue, suspend, revoke, or reinstate
certificate of registration
o Adopt an official seal of BOA
o Prescribe / adopt a code of ethics
o Monitor the conditions affecting the
practice of accountancy
o Conduct an oversight into the quality
of audits
o Investigate violations of RA 9298
o Make investigations as it deems
necessary to determine whether any
person has violated any provisions
o Issue a cease & desist order to any
violator of RA 9298
o Punish for contempt of BOA
o Prepare, adopt, issue, or amend the
syllabi of the subjects for
examinations, determine and
prepare questions for examination
o Ensure that all higher educational
institution and offering of
accountancy comply with the
requirements prescribed by CHED
o Exercise other powers as may be
provided by law
 Grounds for Suspension / Removal
o Neglect of duty or incompetence
o Violation or tolerance of any
violation of RA 9298, code of ethics,
and other standards of practice
o Final judgment of crimes involving
moral turpitude
o Manipulation or rigging of the CPA
licensure examination results,
disclosure of secret and confidential
information
EXAMINATION, REGISTRATION, AND LICENSURE
EXAMINATION OF CPAS
 Qualifications of Applications
Filipino citizen Certificate of Live
Birth (PSA)
Good moral character Valid NBI Clearance
BSA degree holder Transcript of Records
- Married female applicants shall submit a
copy of marriage contract
 Scope of Examination
- FAR, AFAR, RFBT, TAX, MAS, AUD
- Changes shall not be made often than
once every 3 years
 Ratings in the LECPA
o Passed – GA > 75%
- No grades below 65%
o Conditional – GA < 75%
- Majority (4/6) > 75%
o Failed – otherwise
 Refresher Course – taken by an examinee
who failed for 2 complete CPALE
- > 24 units of subjects
 Reporting of Ratings – within 10 days after
REGISTRATION (documents received)
1. Certificate of Registration
- Primary proof of a person’s acceptance in
the profession
- Lifetime validity
2. Professional Identification Card
- To have an immediate proof of being a
Certified Public Accountant
- Renewable every 3 years (registrant’s
date of birth)
3. Special / Temporary Permit – given to a
foreign CPA practicing in the Philippines
- Called for consultation / for specific
purpose
- Engaged as professor, lecturer, or critic in
fields essential to accountancy education
- Internationally recognized expert / with
specialization in any scope of practice
 Refusal to Issue
o Convicted of criminal offenses
involving moral turpitude
o Guilty of immoral & dishonorable
conduct
o Unsound mind
 Suspension and Revocation
o Grounds for refusal to issue
o Unprofessional conduct
o Malpractice
o Violation of RA 9298 & its IRR, Code
of Ethics, and standards of practice
PRACTICE OF ACCOUNTANCY
 A person shall not represent him/herself
as a CPA if he/she is not a CPA
 Certificate of Registration
- Certificate under seal, attesting that a
CPA Firm or a partnership is duly
accredited to practice public accountancy
- Minimum of 3 years of meaningful
experience in any areas
 Significant involvement in commerce
& industry, and government
 Not less than 3 years of teaching
 At least 1 year as audit assistant and
2 years as auditor in charge
 Seal & Use of Seal
 Penal Provision (violation of RA 9298)
o Fine of > 50,000 or
o Imprisonment for not more than 2 years
o Or BOTH
CONTINUING PROFESSIONAL DEVELOPMENT
 Inculcation of advanced knowledge, skills,
and ethical values in a post-licensure
examination
 RA 10912: CPD Act of 2016 – act
mandating & strengthening the CPD
program for all professions
 Required CUs  7 members with a chairman
o Renewal of PIC – 15 CUs  Chairman – senior practitioner in public
o For Accreditation – 120 CUs practice

Technical Competence 30 FRSC AASC ETC QRC

Professional Skills 5 Chairman 1 1 1 1
Professional Values, BOA 1 1 1 1
Ethics, and Attitudes 5 COA 1 1 - -
Flexible CPD Units 80 SEC 1 1 - -
Total 120 BSP 1 1 - -
BIR 1 - - -
FINEX 1 - - -
 CPD Activities
APO
 Seminars / Workshops
 Academic Track  Public 2 6 1 2
 Self-directed / Lifelong Learning  Private 2 1 1 1
 Other activities to be recommended  Academe 2 1 2 1
by CPD Council & approved by BOA  Gov’t 2 1 1 1
& PRC Association / Org.
of CPAs in active - 1 - -
ORGANIZATIONS AFFECTING ACCOUNTANCY public practice
PROFESSION IN THE PHILIPPINES Total 15 15 7 7

1. Accounting & Auditing Standards Setting  Term – 3 years renewable

Bodies – to assist BOA in carrying out its
powers and functions
a. FRSC
 15 members with a chairman
 Chairman – senior practitioner
in any scope
b. AASC
 15 members with a chairman
 Chairman – senior practitioner
in public practice
2. Educational Technical Council (ETC)
 To assist the BOA in:
 Ensuring that all institutions offering
accountancy are in compliance with
requirements of the CHED
 Attaining the objectives of
continuously upgrading the
accountancy education
 7 members with a chairman
 Chairman – senior practitioner in
academe / education
3. Quality Review Committee (QRC)
 To assist the BOA in:
 Conducting quality review on
applicants for registration to practice
public accounting
 Recommend to BOA the revocation
of COR & PIC
4. Accredited Profession Organization (APO)
 PICPA – October 2, 1975
 Purpose – for the benefit & welfare of
CPAs, advancement of profession, and
attainment of other professional ends
 Grounds for Cancellation of Accreditation
o Ceased to possess qualifications
o No longer serves the best interest
of CPAs
o Did not achieve its plan w/in 3 years
o Committed acts inimical to its
members and profession
o Failure to renew accreditation
within reasonable time
5. CPE Councils – assist BOA in implementing its
CPE programs
 Composition
o Chairperson – member of BOA
o 1st member – president / any officer
chosen by BOD of PICPA
o 2nd member – from organization of
deans / department heads
 Term of office – co-terminus with their
incumbency in BOA, PICPA, or organization
  Powers & Functions
o Accept, evaluate, and approve
applications of CPE providers, CPE
programs, activities or sources, and
exemptions from CPE requirements
o Monitor implementation by CPE
providers of programs, activities, or
sources
o Assess periodically & upgrade criteria
for accreditation of CPE providers and
programs
o Perform other related functions

6. Regulatory Agencies

 Professional Regulation Commission (PRC)

- Administers, implements, and enforces
the regulatory policies of the government

 Commission on Audit (COA)

- Philippine’s Supreme Audit Institution
- Ensure accountability and transparency
of public funds

 Securities and Exchange Commission (SEC)

- Supervision over the corporate sector,
capital market, participants, securities
and investment markets, etc.

 Bureau of Internal Revenue (BIR)

- Raises revenue for the government

 Bangko Sentral ng Pilipinas (BSP)

- Maintains price stability conducive to a
balanced and sustainable economic
growth

 Insurance Commission (IC)

- Promulgates & implements policies,
rules, and regulations governing the
operations of entities engaged in
insurance and pre-need activities