SCOPE OF PRACTICE
be a CPA
Public Practice
When is a CPA engage in public practice?
- Client-service provider relationship
- Any service requiring application of
accounting and auditing skills and
knowledge
*Edge of CPA over non-CPA
- unlimited opportunities in public practice
- There are certain reports that can only be
signed by CPAs
Commerce and Industry
When is a CPA engage in commerce and industry?
- Employer-employee relationship
- Position being held requires application of
accounting and auditing skills and
knowledge
*Edge of CPA over non-CPA
- Specific provision (for supervisory level):
Entities with annual revenue of at least
P10,000,000 and/or paid-up capital of at
least P5,000,000
*Supervisory level (preparation of
FS, Liason) – should be occupied by
CPAs
Academe or Education
When is a CPA engage in academe or education?
- Teaching any subject in the licensure
examination
- Teaching other technically related subjects
*Edge of CPA over non-CPA
- Specific provision (for Deans and
Department heads)
 Dean – for institutions offering BSA
under an exclusive department
*Dean – should be a CPA
 Department head – for institutions
offering BSA together with other
business courses
*Department Head – should
Government
When is a CPA engage in the government?
- Employer-employee relationship
Employer (Government, GOCCs,
etc.)
- Position being held requires application of
accounting and auditing skills and
knowledge
*Edge of CPA over non-CPA
- Salary and Promotion
REGULATION OF THE ACCOUNTANCY PROFESISON
Who has the primary task to regulate the
accountancy profession? President of the
Philippines
Function to regulate > delegated to > PRC > BOA
RA 9298 “Philippine Accountancy Act of 2004”
- Approved on May 13, 2004 (Effectivity date)
- Prospective application
- Supersedes PD 692 Revised Accountancy
Law
Objective of RA 9298
Main objective – regulate the accountancy
profession from the entrants up to the eventual
practice
a. Standardization and regulation of
accounting education
b. Examination for registration of CPAs
c. Supervision, control and regulation of the
practice of accountancy in PH
Professional Regulatory Board of Accountancy (PR
BOA)
Composition
- Chairman and six (6) members appointed by
President
Appointment Process
 How are the Chairman and Members of the
Board appointed?
o For each vacant position, APO
Powers and Functions
(Accredited National Professional
Organization of Certified Public Power
Accountants) (Represented by
PICPA) shall submit a list of 5 Entrants (C.L.O.S.E.)
nominees to the PRC within 60 days. - Regulate Educational institutions; ETC
*What if there’s no submitted list (Education Technical Council) was
within 60 days? PRC should select established to assist BOA to regulate
persons to be recommended to the accounting education
President. - Adopt, amend, revise the Syllabi (should not
*From the 5 nominees, PRC will be revised more than once every three (3)
select 3 recommendees in ranking to years)
be submitted to the President and - Supervise the registration of the
the President will select 1 appointee LECPA/CPALE
(Chairman and Members) - Administer oath taking
- A Vice Chairman shall be elected among its - Issue, suspend, revoke, replace, reinstate
members from a term one (1) year Certificate of Registration
Qualifications (Na.C.C.P.A) Practice (Qu.I.C.E.S.A)
a. Natural-born citizen and resident of - Promulgate accounting and auditing
Philippines; standards
b. A duly registered CPA with at least 10 years - Adopt a Code of Conduct/Ethics
of work experience in any scope of practice; - Perform Quality Review (Auditors are being
c. Of good moral character and not convicted audited)
of crimes involving moral turpitude - Conduct investigations
d. Not have any pecuniary interest (financial - Take appropriate actions
interest or any monetary benefits) directly
or indirectly in any institutions that could Function
affect the provision of BSA program at the Primary function
time of his/her appointment
e. Not a director or officer of the APO at the  Carry out the provision of RA 9298
time of appointment and its IRR
 Adopt an official seal
Term of Office
Administrative Supervision
- Chairman and members of the Board shall
hold office for three (3) years - BOA is under the administrative supervision
- No person who served two (2) successive of PRC
complete terms shall be reappointed until Custodian of Records
lapse of one (1) year
- No person shall serve the Board for more - Records of the BOA should be under the
than twelve (12) years custody of PRC
- A Replacement shall only serve the
Secretariat Services
unexpired term of the Original
o Unexpired term is not a complete - PRC shall provide the secretariat
term
Annual Report
 - BOA, at the close of each calendar year, Failed – no a passer nor a conditional
shall submit an annual report to the
*Take refresher course if a candidate fails in
President through the PRC
two (2) complete CPA board exam
Grounds for Suspension or Removal (N.I.V.F.M)
*Where to get refresher course? List of
- President has the power to remove or accredited schools
suspend upon recommendation of PRC
Report of Ratings
a. Neglect of duty/Incompetence
b. Violation of RA 9298, its IRR and - Within ten (10) calendar days after the
technical and professional standards of exam; upon release, PRC shall send by
practice mailing the rating received by each
c. Final judgement of crimes involving examinee
moral turpitude
d. Manipulation or rigging of the CPALE Oath
- All successful examinees are required to
take an oath before any member of BOA or
THE CPA LICENSURE EXAMINATION government official authorized by law
- Foreign CPAs allowed to practice
Conduct of Examination – governed by RA 8981
accountancy profession in Philippines are
Qualification of Applicants (Fil.Mo.A.N) required to take an oath
a. Is a Filipino citizen (PSA birth certificate) Roaster of CPAs
b. Is of good moral character (NBI Clearance)
- Shows the names and place of business of
c. Holder of BS Accountancy degree
all registered CPAs, and copies of the
d. Not convicted of any criminal offense
roaster shall be made available as may be
involving moral turpitude
deemed necessary
Scope of Examination
Certificate of Registration
1. AFAR
- Issued to examinees who passed the exam,
2. AUD
and person admitted under reciprocity or
3. FAR
international agreement
4. MAS
- Lifetime validity
5. TAX
- BOA
6. RFBT
Professional Identification Card
Ratings
- Renewable every three (3) years
Passed – GA at least 75%, no grades lower than
- +3 years and birth date
65% in any given subject
*CoR, ID, Professional Tax Receipt should be
Conditional – GA of less than 75%, has a grade of
indicated on the documents signed by CPAs*
less than 65% or both, but obtained 75% above in
at least 4 out of 6 subjects Special/Temporary Permit
*Removal examination – retake subjects Issued to foreign CPA:
lower than 75% within two (2) years from
the preceding exam a. With foreign reciprocity; and
b. Essential to the development of the
Candidate failed to obtain at least a accountancy profession
GA of 75% and a rating of 65% in
each subjects reexamined > Failed
 *Foreign CPA has the burden to prove there *If there is only one (1) remaining
is foreign reciprocity* partner, names of old partners can
still be used but limited for a period
Refusal to Issue Certificate of Registration
of two (2) years
a. Convicted of criminal crimes involving moral *If remaining partner found a new
turpitude partner within two (2) years >
b. Guilty of immoral and dishonorable conduct Remaining partner can use the
c. Of unsound mind names of the old partners with their
authorization or their heir’s
Suspension and Revocation
Certificate of Accreditation
a. Grounds for refusal to issue
b. Unprofessional/unethical conduct - Issued to CPA in public practice only upon
c. Malpractice showing registrant has three (3) meaningful
d. Violation of RA 9298, its IRR, and CPAs Code years
of Ethics and technical and professional - Issued by BOA
standards of practice - Valid for three (3) years

Reinstatement Renewal and Expiration of Certificate of

Accreditation
- BOA has the discretion to reinstate after the
expiration of two (2) years from date of - Valid for 3 years and renewed on or before
revocation of CoR expiration of validity date
o Individual - +3 years and birth date
Reissuance and Replacement Ex: Registered – June 15, 2022
- Subject to payment of required fees Birthday – September 1
Date of Expiration –
September 1, 2025
PRACTICE OF ACCOUNTANCY Date of Renewal – on or
before September 1
Prohibition *Same with license*
- No person shall use the title “Certified o Accounting firms and partnerships –
Public Accountant”, or “CPA” if not really a +3 years and month of SEC
CPA registration date
Ex: Registered – June 15, 2022
Limitation of the Practice of Public Accountancy SEC reg. – September
- Single practitioners, sole proprietors, and Date of Expiration –
partnerships are allowed to engage in public September 30, 2025
accountancy Date of Renewal – on or
- Corporations NOT allowed before September 30
- “Firm” in RA 9298 indicates sole Meaningful Experience, per RA 9298
proprietorship
 Kyla Nichole V. Roxas, CPA (Single - 3 years in general
practitioner) Public practice – at least one (1) year as audit
 Kyla Nichole V. Roxas, CPAs (Sole assistant and at least two (2) years as auditor in
proprietor) charge
 Kyla, Nichole, Roxas & Co., CPAs
(Partnership) Commerce and Industry – significant
- Names of old partners can still be used as involvement (Ex: Supervisory level; Tenure – 3
company name by remaining partner/s. years, in reference)
 Academe/Education – accumulated teaching
experience on board subjects shall not be less
than three (3) school years
Government - significant involvement (Ex:
Supervisory level; Tenure – 3 years, in
reference)
Seal and Use of Seal
Seal
- Standardized
- 3 partners with Reg. No. each >
lead/assigned/signing engagement partner
Reg. No. on seal
Use of Seal
- Indication of compliance of the standards
and rules
Placement of Seal
- Lower-left portion of document
Ownership of Working Papers
- Confidential, privileged, and property of the
CPA
Foreign Reciprocity
- Filipinos are allowed overseas to practice
Accountancy, foreigners are allowed in the
Philippines to practice Accountancy
- Foreign CPA has the burden to prove there
is foreign reciprocity
Penal Provision
- In violation of RA 9298, its IRR, shall, upon
conviction, be punished by:
a. Fine not less than P50,000; or
b. Imprisonment for period not exceeding
two (2) years; or
c. Both
Enforcement of RA 9298
Who has responsibility to enforce? PRC & BOA.
Hierarchy:
1. BOA
2. PRC
Who shall render assistance? All duly constituted
law enforcement agencies.
Who shall render legal assistance/act as legal
adviser? The Secretary of Justice or his duly
designated representative.
CONTINUING PROFESSIONAL DEVELOPMENT
RA 10912
- An act mandating and strengthening the
CPD for all regulated professions
Definition and Rationale
- Inculcation of advance knowledge, skills,
and ethical values in a post-licensure
specialization
- The way of the government/regulators to
provide assurance that members of the
profession possess the skills and knowledge
expected from a CPA
- Means of ensuring competence, integrity,
and global competitiveness of professionals
Renewal of Professional Identification Card
- Fifteen (15) credit units
Exceptions:
a. Professional working overseas
b. Newly licensed professional for the first
renewal cycle after obtaining license
*No required credit units in the past per RA
9298*
For Accreditation for Public Practice
- Initial and renewal
- One hundred twenty (120) credit units
On or before 2016 – 60 credit units
 2017 – 80 credit units
2018 – 100 credit units
2019 onwards – 120 credit units

RA 9298 – 60 credit units

Minimum units – 15 credit units
Permanent exemption – 65 years old unless
accreditation for public practice
Temporary exemption – if CPA is outside
the country at least 2 years prior to
required date of renewal, either for
furthering studies or practicing profession
How to Earn CPD credit units?
a. Seminars/workshop/conventions
b. Academic track (Doctoral, Masteral)
c. Self-directed and/or Lifelong learning
d. Other activities recommended by CPD
Council and approved by BOA and PRC

ORGANIZATIONS AFFECTING THE ACCOUNTANCY

PROFESSION