IMPLEMENTING RULES AND REGULATION
and other matters related to accounting.
Republic Act No. 9298 –
- otherwise known as The Philippine Accountancy of
2004
- Objectives: To provide and govern the ff:
1. Standardization and Regulation of Accounting
Education.
2. Examination for Registration of CPAs
3. Supervision, control and regulation of the
practice of Accountancy
Scope of Accounting Practice
1. Public Accountancy
2. Commerce & Industry
3. Education/Academe
4. Government Accountancy
Practice of Public Accountancy –
- As Individual, as a Partner or as a Staff member in an
Accounting or Auditing Firm
- Holding out himself as skilled in the knowledge,
science and practice of accounting.
- Offering and/or Rendering services as a Certified
Accountant to more than one client on a fee basis or
offering other services such as:
a. the audit or verification of FS and
accounting records
b. preparation, signing or
certification for clients audit
reports, FS, accounting and
related schedules etc. to be used
by stockholder or public for credit
purposes or for filing to govt
agency.
c. design, installation, review and
revision of accounting system and
controls
d. preparation and review of Income
tax Returns when related to
accounting and auditing
procedure.
e. Represents client before gov’t
agencies.
f. renders professional assistance in
matters relating to accounting
procedures and presentation of FS.
Practice in Commerce and Industry –
- Constitute in a Person/Individual
- Involved in decision making requiring professional
knowledge in the science of accounting and the
accounting aspects of Finance and Taxation.
- Represents his employer before govt agencies on tax
- Employed or holding a position that requires a CPA.
- 5Million/10Million Rule: supervising the recording
of financial transactions, preparation of FS,
coordinating with external auditors and other
related functions should be occupied by a registered
CPA if the business has:
Paid-Up Capital of at least 5Million and/or
Annual Revenue of at least 10Million
- Applicable only to persons to be employed after
the effectivity of this IRR (October 2004) meaning all
incumbent to the position shall not be deprived of
employment as a result of this provision.
Practice in Education/Academe –
- Constitute in a Person
- Accreditation: valid for 3 years
- Involves teaching of:
1. Accounting
2. Auditing
3. MAS,
4. Accounting aspects of Finance
5. Business Law
6. Taxation
- Can teach in the ff. levels:
1. Primary
2. Secondary
3. Tertiary
4. Graduate Level
- The members of Integrated Bar of the Philippines are
allowed to teach Business Law and Taxation
subjects.
- Dean or Department Chairman that supervises the
BSA program must be a registered CPA.
Practice in the Government –
- Constitute in a Person
- Holds or appointed to a position in a professional
accounting group in Govt or GOCC where decision
making involves knowledge in accounting or where
the position requires civil service eligibility as CPA.
DEFINITION OF TERMS
Accredited national Professional Organization of CPAs or
APO – the integrated national organization of CPAs
accredited by the BOA and PRC.
Phil. Regulatory Commission or PRC – professional regulation
commission of the Phil. Created under RA 8981
Board of Accountancy or BOA – professional regulation
board of accountancy created under RA 9298
Certificate of Accreditation – certificate under seal, issued by
the PRC upon recommendation by BOA, attesting that the
Individual CPA (including his staff) and Firms (including the
sole proprietor and his staff members ) are duly accredited to
practice public accountancy in the Phil.
Certificate of Registration - certificated under seal bearing
Reg.number, issued to an individual by PRC upon
recommendation by BOA. Signifies that the individual has
complied with all legal requirements and have passed the
CPA licensure examination.
1 Vice Chairman
Professional Identification Card – a card issued by the PRC to
a registered CPA. Bearing: Reg.No.
Date of Issue
Expiry Date
Validity: 3 years
Signed by: Chair of PRC
Code of Ethics for Professional Accountants - contains the
norms and principles governing the practice of accountancy
profession in the highest standards of ethics conduct.
Firm – organization engaged in the practice of public
accountancy consisting of a sole proprietor, either alone or
with one or more staff members.
Partnership - a professional partnership engaged in the
practive of public accountancy, either General Partnership or
Limited Liability Partnership whether or not registered with
SEC.
Phil. Institute of CPAs or PICPA –
- Integrated national professional organization of
CPAs accredited by the BOA and PRC.
- Registered with SEC as a nonprofit corporation.
- Membership shall not be a bar to membership in any
other association of CPAs
Quality Review – a study, appraisal or review by BOA of the
quality of audit of FS through the review of quality control
measures instu=ituted by the Individual CPA, Firm or
Partnership of CPAs engaged in the practice of public
accountancy to ascertain compliance with prescribe ethical
and technical standards of public practice.
Sector – area of practice of accountancy. Namely:
1. Public Accountancy
2. Commerce and Industry
3. Academe/ education
4. Government
Staff Member – a CPA employed by an Individual CPA, Firm or
Partnership engaged in practice of public accountancy
BOA – Board of Accountancy
1 Chairman Nominated: by APO (5 nominees)
6 Members Recommended: by PRC (3 recommendees)
7 total Appointed: By the President of the Phil.
Term of Office: 3years per term
2 consecutive complete
terms allowed with 1 yr.
lapse
Maximum Length of Service: 12 years
Elected: By BOA among members
Term: 1 year
- Nomination of chairman and/or members by APO is
within 60 days before the end of term.
- Qualifications:
1. Natural born citizen and resident
2. Duly registered CPA with 10 years
experience
3. of Good Moral Character/have not been
convicted of crimes involving moral
turpitude.
4. Must not have any pecuniary interest in any
school, college, university, review centers
etc.
5. Not a Director or Officer of APO at the time
of appointment.
- Compensation: comparable to the compensation
being received by existing chairman and members of
regulatory boards under PRC.
- Supervision: BOA is under supervision of PRC
- Powers and Functions:
1. Prescribe and adopt rules and regulations
2. Supervise the registration, licensure and
practice of accountancy.
3. Administer oath
4. Issue, suspend, revoke or reinstate certificate
of registration
5. Adopt an official seal
6. Prescribe and/or adopt a Code of Ethics
7. Monitor the condition affecting the practice of
Accountancy, including promulgation of
accounting and auditing standards.
8. Conduct an oversight into the quality of audit
9. Investigate violation of this act and IRR
10. May make Motu Propio investigation to
determine violation of this act.
11. Issue a cease or Desist order
12. To punish for contempt
13. Prepare, adopt, issue or amend syllabi
14. To ensure in accordance with CHED that all
educational Institution comply with the
policies and standards.
 15. Polices, resolutions, rules and regulations AASC – AUDITING AND ASSURANCE STANDARDS
issued or promulgated by BOA are subject to COUNCIL
review and approval by PRC Note:
Administrative Cases are subject for review by - Auditing standard setting body created by PRC upon
PRC only if on appeal. recommendation of BOA
- Created 90days from effectivity of IRR
- Grounds for Suspension or Removal of Members: - Composition: 1 Chairman
- The President of the Phil. May suspend or - 14 Representatives
remove members on the ff. reasons: - 15 Members
1. Neglect of duty or incompetence - Chairman: senior practitioner in public Acct.
2. Violation or tolerance of violation of RA9298, - Composition of 14 Representatives:
IRR, Code of Ethics or Technical & Professional 1 each
standards of Accountancy. - BOA, SEC, BSP, COA
3. Final judgement of crimes involving moral Organization in public 5
turpitude. Accountancy
4. Manipulation or Rigging of Exam results. Accredited Nat’l
- Annual Report: BOA submit an annual report to the Prof. Org of CPAs:
president through PRC. Pub. Practice 6
Comm & industry 1
Academe/Educ. 1
Government 1
FRSC - FINANCIAL REPORTING STANDARDS
Total 14
COUNCIL - Appointed: By PRC in coordination with APO
- Accounting standard setting body created by PRC - Term: 3 years per term up to 2 terms
upon recommendation of BOA - Any member of any existing accounting abd auditing
- Created 90days from effectivity of IRR standard setting body shall not be disqualified from
- Composition: 1 Chairman being appointed to AASC
14 Representatives
15 Members
ETC – EDUCATIONAL TECHNICAL COUNCIL
- Chairman: senior accounting practitioner
- Composition of 14 Representatives: - Created by PRC upon recommendation of BOA,
1 each 60days from effectivity of IRR
BOA, SEC, BSP, BIR, COA - Assists BOA to continuously upgrading the
Organization of 6 accountancy education in the Phil.
Preparers and users - Composition : 1 Chairman
of FS 6 Representatives
Accredited Nat’l 7 Members
Prof. Org of CPAs: - Chairman: Senior Acctg. Practitioner in
Pub. Practice 2 - Academe/Educ.
Commerce & industry 2 - Composition of 6 Members:
Academe/Educ. 2 - BOA 1
Government 2 Accredited Nat’l
Total 14 Prof. Org of CPAs:
- Appointed: By PRC in coordination with APO Pub. Practice 1
- Term: 3 years per term up to 2 terms Comm & industry 1
- Any member of any existing accounting and auditing Academe/Educ. 2
standard setting body shall not be disqualified from Government 1
being appointed to FRSC Total 6
- Appointed: By PRC upon recommendation of BOA
- Term: 3 years per term up to 2 terms
- Functions:
1. determine a minimum standard curriculum
2. Establish teaching standards
3. Monitor the progress of the program of
Accountancy education
 4. Evaluate the performance of Educational CPA EXAMINATION
Institutions.
- Places/Venues and date of examination shall be
included in the Schedule of Professional Licensure
QRC – QUALITY REVIEW COMMITTEE Examination for the year issued by PRC

- created to conduct an oversight into the quality of - Qualifications of Examinees:

audit of FS through a review of of the quality control 1. Filipino Citizen
measures instituted by individual CPAs and firms to 2. Of Good Moral Character
ensure compliance with accounting and auditing 3. BSA degree holder
standards. 4. Have not been convicted of any crime
- Composition : 1 Chairman
involving moral turpitude.
6 Representatives
- Requirements:
7 Members
- Chairman: Senior Acctg. Practitioner in 1. NSO Birth Certificate
Public Accountancy 2. Marriage Contract (if married)
- Composition of 6 Members: 3. College Diploma
BOA 1 4. Transcript of Records
Accredited Nat’l 5. NBI Clearance
Prof. Org of CPAs: 6. Other Requirements required by BOA
Pub. Practice 2 - BOA will not issue PRC ID or suspend or revoke any
Comm & industry 1 certificate of registration obtained by false swearing
Academe/Educ. 1 or false evidence or information on application.
Government 1 - Scope of Exam: revisions or exclusions shall only be
Total 6
every 3years upon approval of PRC.
- Appointed: By PRC upon recommendation of BOA in
1. Theory of Accounts
coordination with APO
2. Bus. Law and Taxation
- Term: 3 years per term up to 2 terms
- Functions: 3. Management Services
1. Conduct quality review on applicants to 4. Auditing Theory
practice public accountancy and render a 5. Practical Accounting Problems 1
report on such quality review. 6. Practical Accounting Problems 2
2. Recommend to BOA the revocation of - Rating: General Average: 75% +
Cert. of Registration and the Prof.ID of an Grade per Subject: 65% +
Individual CPA (including his staff) ,Firms - Conditional –
(including the sole proprietor and his - Majority of the subjects is 75%+ Average
staff) and Partnerships of CPA (including but with failing subject/s.
the partners and their staff) - Failed subject should be taken within 2 yrs.
CPE COUNCIL – CONTINUING PROFESSIONAL - Failure to get 75% average and 65% per
subject will fail the entire exam.
EDUCATION COUNCIL
Example:
- CPE Definition: inculcation, assimilation and Theory of Accounts 75 - conditional
acquisition of knowledge, skills. Proficiency and Bus. Law and Taxation 75 - conditional
ethical and moral values, after the initial registration Management Services 80 - conditional
of a professional that raise and enhance the Auditing Theory 76 - conditional
professional’s technical skills and competence. Practical Accounting1 80 - conditional
- Creation: created by BOA Practical Accounting2 63 - failed
- Composition : 1 Chairman
Average: 75 %
2 members
- Report of Ratings: Within 10 days after exam to be
3
sent by mailing
- Appointed: By BOA members. Chairpersons are
chosen from among BOA members - Refresher Course: 24units of subjects in licensure
exam. If candidate failed for 2 consecutive takes.
- Number of Exam Retakes:
- no limit
- after every 2 consecutive takes get
24units refresher course
- Conditioned + Removal = 1 Complete
Exam Exam Exam
- Oath Taking:
- Required to take an oath before any
Member of BOA or any Govt Official authorized.
- Required for CPAs admitted under
reciprocity or international agreement.
CERTIFICATE OF REGISTRATION
- Certificate under seal bearing Reg.number, issued to
an individual by PRC upon recommendation by BOA.
Signifies that the individual has complied with all
legal requirements and have passed the CPA
licensure examination.
- Issued to examinees who pass the licensure exam or
to CPAs admitted under reciprocity or international
agreement.
- Signed By: PRC Chairman & BOA Chairman &
members of the board.
- Validity: 3 years until withdrawn, suspended or
revoked
- Renewal: every 3 years after paying Annual reg. fee
- Roster of CPAs: BOA prepares and updates a list
showing the names and business address of all
registered CPAs. Posting of roster in the Internet is
deemed compliance.
- The CPA is required to indicate his Cert. of
Registration number, date od issuance, duration of
validity and Prof. Tax Receipt number on all
documents he signs in connection to his practice of
profession.
- Grounds for Non-Issuance of Certificate:
1. Conviction of criminal offense involving
moral turpitude.
2. Immoral or dishonorable conduct
3. Unsound mind.
- Applicant will be given a written
statement by BOA stating the reasons for non-
issuance of certificate.
- Grounds for Suspension, Revocation & cancellation
of Special Permit:
1. Conviction of criminal offense involving
moral turpitude.
2. Immoral or dishonorable conduct
3. Unsound mind.
4. Unprofessional/unethical conduct
5. Malpractice
6. Violation of RA9298, code of ethics and
professional standards of practice for
CPAs.
- Reinstatement/ Reissuance and Replacement of
Certificate:
- Revoked cert may be reinstated after 2years
- Replacement of lost/destroyed certificate can
issued after payment of required fee
-
PRACTICE OF ACCOUNTANCY
- Prohibition: No person can practice Accountancy or
use the title CPA unless that person have received
from BOA:
1. Certificate of Reg/Professional License
2. Professional ID
3. Valid temporary/special permit (if applicable)
- CPE Program: All CPAs shall abide by the
requirements, rules and regulation of continuing
profession education.
- CPE credit Units for CPAs: 60 credited for 3 years
minimum of 15 units earned in each year. Any excess
will not be carried over except units earned for
doctoral and master’s degree.
1 credit hour of CPE Program=1 credit unit
- Exemption:
Permanent Exemption – CPAs 65 yrs. Old
Temporary Exemption – CPA practicing, working,
studying abroad for the period of his stay abroad
- Provided: He has been abroad 2 years prior
the renewal of license.
PRACTICE IN PUBLIC ACCOUNTANCY
- Individual practitioner or Partnerships for
public practice shall be registered CPAs
-Issued a Certificate of Accreditation after 3
yrs. experience in any scope of accountancy
including taxation.
No Corporation shall be registered for the
practice of public accountancy.
- Registration Fee: 1000 pesos
- Validity of Registration: 3 years, renewal is Sept.30
every three years following application in any
month.
Example:
Registered July 31, 2002:
July 31,2002-Dec. 31, 2002 = 1st year ***
Jan. 1 2003- Dec. 31 2003 = 2nd year
Jan. 1 2004 – Dec 31, 2004 = 3rd year expiration
Renewal should be on or before Sept. 30 2004
For another 3 year period starting Jan. 1 2005
- Working Papers:
- treated confidential unless subpoena was
issued to be presented in court.
- owned by the CPA not the client unless there
is an agreement to the contrary.
- Seal : - designed by BOA
- bearing the ff: name of CPA
Reg. number and title
- stamped on auditor’s report with Prof.Tax
Receipts number, date& place of payment.
- Death of Individual CPA, Dissolution or Liquidation
of a Firm or Partnership:
- must be reported not later than 30 days from
death, dissolution or liquidation.
- in a form of an Affidavit ( for individual/Firm)
- in a form dissolution/liquidation papers ( for
partnership)
- Amount of Audit Fees: depends on the volume of
Audit work and degree of competence and
responsibilities required.
- Rules on Advertising: the ff. are not allowed:
1. Self-laudatory statements
2. Discrediting, disparaging, or attacking other
firms or CPA practitioner
3. Referring to, using or citing actual or
purported testimonials by third parties.
FOREIGN RECIPROCITY
- Foreign citizens may be allowed to practice in
the Phil. In accordance to an existing law,
international treaty obligations including mutual
agreement.
- The foreign citizen shall prove that the country
where he is a citizen, admits Filipino citizens to
Accounting Profession without restriction.
- Temporary/Special Permit: issued by BOA
subject to approval of PRC.
1. Foreign CPA engaged for consultation
or for a specific purpose essential for
the development of the country.
Provided:
a. No Filipino CPA qualified for such
specific consultation or specific
purpose.
b. his practice will be limited to the
work he is being engaged.
2. Foreign CPA engaged as a professor,
lecturer or critic in the fields of
accountancy education.
Provide:
-His engagement will be confined
to teaching only
3. Foreign CPA who is an internationally
recognized as an expert or with
specialization in any branch of
accountancy.
Provided:
-His service is essential for the
advancement of accountancy in the
Philippines.
VIOLATION OF RA 9298
- Penalty: Fine of 50,000 + OR imprisonment
for maximum of 2 years.
- IRR, Implementing Rules and Regulation:
- Adopted and promulgated by BOA
upon approval of PRC in coordination with
PICPA
- Promulgated 90 days after effectivity
of RA 9298
- Effectivity: 15 days after publication in
the Official Gazette in any major daily
newspaper of general circulation
PICPA - PHIL. INSTITUTE OF CPAs
- Recognized by PRC as APO on Oct. 2, 1957
- Established for the benefit and welfare of
the CPAs
- Membership is open to all CPAs
- Membership includes members from all
sectors.
- Duly registered as non-stock corporation by
SEC
- Renewal of Accreditation: every 3 years
- National Directors:
- 15 National Directors
- Elected according to provisions of Corp.
Code of the Phil.
- there should only be 1 director coming
from a Firm
- Member in good standing in such
sector in such region for 2 years at the time
of nomination.
- 4 Geographic Areas:
1. NCR
2. Luzon
3. Visayas
4. Mindanao
Government Organizations:
SEC – Securities and Exchange Commission

- Regulates the registration and operations of

corporation, partnerships and other forms
of associations in the Phil.

BIR – Bureau of Internal Revenues

- Aims to raise revenues for the government

through the effective and efficient
collection of taxes, provide quality service
to tax payers and enforce tax laws in an
impartial and uniform manner.

Insurance Commission

- Its mandate is to regulate and supervise the

insurance industry for the promotion of
national interest.

BSP – Bangko Sentral ng Pilipinas

- The primary objective of this agency is to

maintain price stability conducive to a
balanced and sustainable economic growth.

COA – Commission on Audit

- The office required in the Constitution of

the Phil. To keep the general accounts of
the Government and for such period as may
be provided by law, preserve the vouchers
pertaining thereto.
- Appointed: By the President with the
concurrence of Commission on
Appointment
- Duties:
1. Define the scope of its audits and
examination
2. Promulgate accounting rules and
regulations
3. Keep the general accounts of the
government

SECTORAL ORGANIZATIONS FOR CPAs:

1. GACPA – for Government Practice

2. ACPAPP – for Public Practice
3. ACPACI – for Commerce and Industry
4. ACPAE – for Education/Academe