CORE COMPETENCIES Information Technology (IT)

Knowledge
FRAMEWORK FOR
This includes not only being conversant with
ACCOUNTANTS IT concepts for business systems but sound
knowledge on internal control in
(KNOWLEDGE, SKILLS, computer-based systems, development

VALUES) standards and practices for business

systems, management of the adoption,
implementation and use of IT, evaluation of
computer business systems, and managing
the security of information.

KNOWLEDGE Accounting Knowledge

General Knowledge This includes core knowledge related to

of emphasis here are gaining an
understanding of the different cultures in the
world and developing an international
perspective. It is generally believed that the
traits that will make our Filipino CPAs
prominent in the global marketplace are:
● competency in the English language
(the lingua franca of business),
● adaptability to Western business
practices,
● level of trainability and
● good capabilities in dealing with
foreign partners.
Organizational and Business
Knowledge
In addition to the core knowledge in areas
such as economics, quantitative methods
and business statistics, organization
behavior, marketing and operations
management, the CPA must be conversant
of international business and have an
understanding of how the global business
system works. He should also have an
appreciation of the importance of ethics and
corporate governance in business. The CPA
must demonstrate competence in the
following:
accounting and related areas and must
include proficiency in the international
accounting and auditing standards, cost
management and the latest concepts in
management accounting, recent tax laws
and business and commercial laws. It also
includes knowledge of corporate finance
and the Philippine capital markets,
professional ethics and environmental
accounting and reporting. The CPA should
demonstrate competence in the following:
● Basic Accounting and Preparation of
Financial Statements, the
Accounting Profession and
International Accounting Standards
● Advanced Financial Accounting
Practices
● Advanced Financial Reporting
Principles
● Management Accounting - Basic
Concepts
● Management Accounting -
Information for Planning,
Decision-Making and Control
● Taxation, Business and Commercial
Laws
● Auditing - Fundamentals
● Auditing - Advanced Concepts
● Business Finance and Financial
Management

● administrative capability and

efficiency
● decision modeling
● risk analysis and management
● measurement
● industry and sector perspective
 ry matters/audit results at a level
appropriate to the audience.
SKILLS ● ask clear, concise and relevant
questions to obtain desired
Intellectual information to perform a task.
● negotiate effectively.
This set of skills includes the ability to carry
out abstract logical thinking and understand
critical thinking. It also includes creative
thinking or the generation of new ideas; VALUES
visualization or "seeing things in the mind's
eye"; and reasoning skills or the discovery Professional Ethics
of a rule or principle underlying the
relationship between two or more objects since the objectives of the accountancy
and applying it when solving a problem. The profession are to work in accordance with
CPA must demonstrate the following skills: the highest standards of professionalism, to
attain the higher level of performance and
● analysis generally to meet the public interest, the
● problem solving need for CPAs to conform to the ethical
● strategic/critical thinking standards of the profession become vital.
These include integrity, objectivity and
independence, professional competence
Interpersonal and due care, confidentiality, and
professional behavior.
This involves developing the ability of CPAs
to work in groups and being a team player. Moral Values
'It includes the skills to participate as
member of a team and contributing to group Beyond ethical rules, there is a need for
effort; teaching others new skills; working to CPAs to be able to discern between what is
satisfy clients' expectations; negotiation morally right or wrong.
skills and working with diversity or working
well with men and women from diverse
backgrounds. The CPA must demonstrate Code of Ethics for
attributes such as:
Professional
● being a team player
● persuasion, confidence and Accountants
diplomacy
● discreetness, open mind and Fundamental
patience
● capability for work and ability to principles:
respond well to pressure
(PICPO)
Communication

This refers to active listening skills and the Integrity - an accountant must be
ability to communicate effectively one's straightforward and honest in all
points of view, both orally and in writing, at professional and business relationships; fair
all organizational levels; being able to justify dealing and truthfulness
one's position, deliver powerful
presentations and to persuade and Objectivity - an accountant should not
convince others. allow bias, conflict of interest, or undue
The CPA must demonstrate skills such as influence of others to override professional
the ability to: judgment

● verbally and/or in writing explain Professional competence and due care -

financial/statistical/administrative an accountant has a continuing duty to
matters/policies/procedures/regulato maintain professional knowledge and skill at
every level required to ensure that a client
or employer receives competent ● Main function is to establish
professional service based on current generally accepted accounting in the
developments in practice, legislation, and Philippines
techniques. ● The Philippines has three financial
reporting frameworks, namely the
Attainment of professional competence Philippine Financial Reporting
● Education, Examination, Experience Standards (PFRSs), the Philippine
Maintenance of professional competence Financial Reporting Standard for
● Continuing Professional Small and Medium-Sized Entities
Development (CPD) (PFRS for SMEs) and the Philippine
Financial Reporting Standard for
Small Entities (PFRS for SEs).
Confidentiality - an accountant should
respect the confidentiality of information
acquired as a result of professional and
business relationships and should not
disclose any such information to third
parties without proper and specific authority
History of accounting
unless there is a legal or professional right
or duty to disclose.
standards
Professional behavior - a professional
accountant should comply with relevant
laws and regulations and should avoid any
action that discredits the profession.

Branches of accounting

● Auditing
● Bookkeeping
● Cost Bookkeeping, Costing, Cost
Accounting History of Accounting Standards
● Financial Accounting • IASC - International Accounting Standards
● Financial Management Council
● Management Accounting • IAS - International Accounting Standards
● Taxation • IASB - International Accounting Standards
● Government Accounting Board
• ASC - Accounting Standards Council
• SFAS - Statement of Financial Accounting
Standards
Accounting standards • PAS - Philippine Accounting Standards
• PFRS - Philippine Financial Reporting
in the Philippines Standards • FRSC - Financial Reporting
Standards Council
● Authoritative statements of how • PIC - Philippine Interpretations Committee
peculiar types of transactions and • FSRSC - Financial and Sustainability
other events should be reflected in Reporting Standards Council
the financial statements • PSRC - Philippine Sustainability Reporting
Committee
Accounting standards in the
Philippines

● Promulgated by the Financial and

Sustainability Reporting Standards
Council (FSRSC)
● Formed by the PRC, to assist
PRBOA