Lecture+1+ +Philippine+Accountancy+Act+of+2004+ (RA+9298)

PHILIPPINE
ACCOUNTANCY ACT
OF 2004
(REPUBLIC ACT NO. 9298)
PHILIPPINE ACCOUNTANCY ACT OF 2004 (RA NO. 9298)
PD 692 RA 9298
Revised Accountancy Philippine Accountancy

Law Act of 2004
(May 13, 2004)
 Republic Act No. 9298, May 13, 2004 - 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
 This Act shall be known as the “Philippine Accountancy Act of 2004”. (RA
9298, sec. 1)
 Presidential Decree No. 692 (otherwise known as the “Revised Accountancy

Law”) is hereby repealed and all other laws, orders, rules and regulations or
resolutions or part/s thereof inconsistent with the provisions of RA No. 9298 are
hereby repealed or modified accordingly. (RA 9298, sec. 43)
 The law regulating the practice of accountancy in the Philippines is the

Republic Act No. 9298 or the Philippine Accountancy Act of 2004.
Professional Regulation Commission (PRC
Board of Accountancy
• Primary duty for enforcing and implementing provisions.
• Filing charges for illegal practice or violations of RA 9298.
Other Law Enforcement Agencies
• Shall render assistance in enforcing the provisions of the RA.
Secretary of Justice
• Legal Adviser to PRC and BOA.

RULE I –
TITLE, DECLARATION
OF POLICY, OBJECTIVE
AND SCOPE OF
PRACTICE
 SEC. 2. Declaration of Policy. – The State recognizes the importance of

accountants in nation building and development. Hence, it shall develop and
nurture competent, virtuous, productive and well-rounded professional
accountants whose standards of practice and service shall be excellent,
qualitative, world class and globally competitive through inviolable, honest,
effective, and credible licensure examinations and through regulatory
measures, programs and activities that foster their professional growth and
development. (RA 9298, sec. 2)
 Objectives of the Act are to provide for and govern:
 The standardization and regulation of accounting education;
 The examination for registration of certified public accountants; and
 The supervision, control, and regulation of the practice of accountancy

in the Philippines. (RA 9298, sec. 3)
 The practice of accountancy shall include, but not be limited to, the following:
 Practice of Public Accountancy
 Practice in Commerce and Industry
 Practice in Education/Academe
 Practice in the Government (RA 9298, sec. 4)

 Practice of Public Accountancy - shall constitute in a person,
 be it his/her individual capacity, or as a partner or as a staff member in an

accounting or auditing firm;
 holding out himself/herself as one skilled in the knowledge, science and
practice of accounting, and as a qualified person to render professional services
as a certified public accountant, or offering or rendering, or both, to more than
one client on a fee basis or otherwise, services such as:
 the audit or verification of financial transactions and accounting records; or

 the preparation, signing, or certification for clients of reports of audit, balance sheet, and
other financial, accounting and related schedules, exhibits, statements or reports which
are to be used by stockholders or for publication or for credit purposes, or to be filed with
a court or government agency, or to be used for any other purpose; or
 the design, installation, review and revision of accounting systems and controls ; or the
preparation and/or review of income tax returns when related to accounting and
auditing procedures; or
 when he/she represents his/her clients before government agencies on tax and other
matters related to accounting; or
 renders professional assistance in matters relating to accounting procedures and the
recording and presentation of financial facts or data.
 Practice in Commerce and Industry - shall constitute in a person,
 involved in decision making requiring professional knowledge in the science of

accounting, as well as the accounting aspects of finance and taxation, or
 when he/she represents his/her employer before government agencies on tax
and other matters related to accounting; or
 (when such employment or position requires that the holder thereof must be a
certified public accountant.
In this connection, any position in any business or company in the private sector
which requires supervising the recording of financial transactions, preparation of
financial statements, coordinating with the external auditors for the audit of such
financial statements and other related functions shall be occupied only by a duly
registered CPA. Provided, That the business or company where the above position
exists has a paid -up capital of at least Five Million Pesos (P5,000,000.00) and/or
an annual revenue of at least Ten Million Pesos (P10,000,000.00). Provided
Further, That this provision shall apply only to persons to be employed after the
effectivity of this Rules and Regulations, Provided, Finally, That this provision shall not
result to deprivation of the employment of incumbents to the position.
 Practice in Education/Academe - shall constitute in a person,
 in an educational institution which involve teaching of accounting, auditing,

management advisory services, accounting aspect of finance, business law,
taxation, and other technically related subjects.
 Provided, That members of the Integrated Bar of the Philippines may be

allowed to teach business law and taxation subjects; Provided, Further, That
the position of either the dean or the department chairman or its equivalent
that supervises the Bachelors of Science in Accountancy program of an
educational institution is deemed to be in practice of accountancy in the
academe / education and therefore must be occupied only by a duly
registered CPA.
 Practice in the government - shall constitute in a person,
 who holds, or is appointed to, a position in an accounting professional group in

government or in a government-owned and/or controlled corporation,
including those performing proprietary functions, where decision-making
requires professional knowledge in the science of accounting, or
 where a civil service eligibility as a certified public accountant is a prerequisite.
RULE II -
PROFESSIONAL
REGULATORY BOARD
OF ACCOUNTANCY
 Professional Regulatory
Board of Accountancy
(PRBOA)
 The Professional
Regulatory Board of
Accountancy (PRBOA)
is the body authorized
by law to promulgate
rules and regulations
affecting the practice of
accountancy in the
Philippines.
 PRBOA is under the

supervision of the
Professional Regulation
Commission (PRC).
 Professional Regulatory Board of Accountancy (PRBOA)
 The Board shall be composed of a chairman and six (6) members to be

appointed by the President of the Philippines from a list of three (3)
recommendees for each position and ranked by the Commission,
from a list of five (5) nominees for each position submitted by the
APO. The Board shall elect a vice-chairman from among its members for
a term of one (1) year. The chairman shall preside in all meetings of the
Board and in the event of a vacancy in the office of the chairman, the
vice-chairman shall assume such duties and responsibilities until such
time as a chairman is appointed.
 The four (4) sectors in the practice of accountancy shall as much as

possible be equitably represented in the Board. The Commission in
consultation with the Board shall select three (3) nominees from those
recommended by the APO and submit such list to the President for
consideration. (Sec. 5, Rule II, IRR of RA 9298)
 Time of submission of nomination to the Board by the APO: The APO

shall submit its nominations with complete documentation to the
Commission not later than (60) days prior to the expiry of the term of
an incumbent chairman or member.
 There should be adequate documentation to show the qualification and

primary field of professional activity of the nominee to enable the
Commission to determine the competence of the nominee and the
sector where he/she belongs. If the APO fails to submit its own
nominee(s) to the Commission with the required documentations within
the period provided herein, the Commission in consultation with the
Board shall submit to the President a list of three (3) nominees for each
vacant position. (Sec. 5A, Rule II, IRR of RA 9298)
 Qualifications of Members of the Professional Regulatory Board of

Accountancy: A member of the Board shall, at the time of his/her
appointment, possess the following qualifications:
 Must be a natural-born citizen and a resident of the Philippines;
 Must be a duly registered Certified Public Accountant with at least

ten (10) years of work experience in any scope of practice of
accountancy. He/shall be nominated to represent a sector from
which he/she has considerable and meaningful professional
experience.
 Must be of good moral character and must not have been

convicted of crimes involving moral turpitude;
 Qualifications of Members of the Professional Regulatory Board of

Accountancy: A member of the Board shall, at the time of his/her
appointment, possess the following qualifications:
 Must not have any pecuniary interest, directly or indirectly, in any school, college,
university or institution conferring an academic degree necessary for admission to
the practice of accountancy or where review classes in preparation for the licensure
examination are being offered or conducted, nor shall he/she be a member of the
faculty or administration thereof at the time of his/her appointment to the Board;
 Must not be a Director or Officer of the APO at the time of his appointment;
Provided, That if the Chairman or any member of the Board is still in active practice
of public accountancy or connected with any office in commerce and industry or in
the government, he/she must go on leave during the pendency of any case
involving himself/herself, his firm, partnership, company or government office, or
inhibit himself/herself completely in all the stages of the proceedings thereof. (Sec.
6, Rule II, IRR of RA 9298)
 Term of Office:
 The Chairman and members of the Board shall hold office for a term of three
(3) years.
 Any vacancy occurring within the term of a member shall be filled up for the
unexpired portion of the term only.
 No person who has served two successive complete terms as chairman or

member shall be eligible for reappointment as chairman or member until the
lapse of one year.
 Appointment to fill up an unexpired term is not to be considered as a

complete term.
 Provided, That no person shall serve in the Board for more than twelve (12)
years. (Sec. 7, Rule II, IRR of RA 9298)
 Compensation and Allowances of the Board:
 The chairman and members of the Board shall receive compensation and
allowances comparable to that being received by the Chairman and
members of existing regulatory boards under the Commission as provided
for in the General Appropriations Act. (Sec. 8, Rule II, IRR of RA 9298)
 Powers and Functions of the Board The Board shall act as a collegial
body and shall exercise the following specific powers, functions, and
responsibilities: (a – o)
 To prescribe and adopt the rules and regulations necessary for carrying out
the provisions of this Act;
 To supervise the registration, licensure and practice of accountancy in the

Philippines;
 To administer oaths in connection with the administration of this Act;
 To issue, suspend, revoke, or reinstate the Certificate of Registration for the

practice of the accountancy profession;
 To adopt an official seal of the Board;

 To prescribe and/or adopt a Code of Ethics for the practice of accountancy;
 To monitor the conditions affecting the practice of accountancy and adopt

such measures, including promulgation of accounting and auditing
standards, rules and regulations and best practices as may be deemed
proper for the enhancement and maintenance of high professional, ethical,
accounting and auditing standards; Provided, That domestic accounting and
auditing standards, rules and regulations shall include the international
accounting and auditing standards, and generally accepted best practices;
 To conduct an oversight into the quality of audits of financial statements

through a review of the quality control measures instituted by auditors in
order to ensure compliance with the accounting and auditing standards and
practices;
 To investigate violations of this act and the rules and regulations

promulgated hereunder and for this purpose, to issue summons, subpoena
and subpoena ad testificandum and subpoena duces tecum to violators or
witness thereof and compel their attendance to such investigation or
hearings and the production of documents in connection therewith:
Provided, That the Board upon approval of the Commission may, subject to
such rules and regulations that may be promulgated to implement this
section, delegate the fact-finding aspect of such investigations to the
accredited national professional organization of certified public accountants;
Provided Further, That the Board and/or the Commission may adopt their
findings of fact as it may deem fit;
 The Board may, motu propio in its discretion, make such investigations as it
deems necessary to determine whether any person has violated any
provisions of this law, any accounting or auditing standard or rules duly
promulgated by the Board as part of the rules governing the practice of
accountancy;
 To issue a cease or desist order to any person, association, partnership or

corporation engaged in violation of any provision of RA No. 9298, any
accounting or auditing standards or rules duly promulgated by the Board as
part of the rules governing the practice of accountancy in the Philippines;
 To punish for contempt of the Board, both direct and indirect, in accordance
with the pertinent provisions of and penalties prescribed by the Rules of
Court;
 To prepare, adopt, issue or amend the syllabi of the subjects for examination
in consultation with the academe, determine and prepare questions for the
licensure examination which shall strictly be within the scope of the syllabi of
the subjects for examinations as well as administer, correct and release the
results of the licensure examinations; Provided, That the Board may, upon
prior approval by the Commission, engage the services of expert test writers,
who shall propose test questions for the CPA Licensure Examinations.
Provided, Further, That the Board does not delegate its power and function
to determine and prepare test questions for the CPA Licensure Examinations,
Provided, Finally, That the Board and the Commission shall institute
adequate controls over the processing and safekeeping of such test
questions to ensure the full integrity of the CPA Licensure Examinations;
 To ensure, in coordination with the Commission on Higher Education (CHED)

or other authorized government offices, that all higher educational
instruction and offering of accountancy, including accounting review centers
and/or CPE providers offering accounting seminars, comply with the policies,
standards and requirements of the course prescribed by CHED or other
authorized government offices or CPE Council as the case may be in the
areas of curriculum, faculty, library and facilities; Provided, That for the orderly
implementation of this provision, the Board and the Commission may enter
into a Memorandum of Agreement with CHED;
 To exercise such other powers as may be provided by law as well as those

which may be implied from, or which are necessary or incidental to the
carrying out of, the express powers granted to the Board to achieve the
objectives and purposes of RA No. 9298.
The policies, resolution, rules and regulations, issued or promulgated by the

Board shall be subject to review and approval of the Commission. However, the
Board ’s decisions, resolutions or orders rendered in administrative cases shall
be subject to review only if on appeal. (Sec. 9, Rule II, IRR of RA 9298)
 Accounting and Auditing Standard Setting Council
The Commission upon the recommendation of the Board shall within

ninety (90) days from the effectivity of the Implementing Rules and
Reulations (IRR) of RA 9298 create an accounting standard setting body
to be known as the Financial Reporting Standards Council (FRSC) and an
auditing standard setting body to be known as the Auditing and
Assurance Standards Council (AASC) to assist the Board in carrying out its
power and functions. (Sec. 9-A, Rule II, IRR of RA 9298)

In September 2022, the Professional Regulatory Board of Accountancy (BOA) issued

Board Resolution No. 44 (s. 2022) that contains the approval of the following:
 Adoption of the IFRS Sustainability Disclosure Standards that will be developed by

the International Sustainability Standards Board (ISSB) in the preparation of the
general-purpose financial statements; and
 Renaming of the Financial Reporting Standards Council (FRSC) to Financial and
Sustainability Reporting Standards Council (FSRSC)
The change in name considers the expanded role of FSRSC in the adoption of future
Sustainability Disclosure Standards. This is in light of the increasing demand for high
quality, transparent, reliable and comparable reporting by companies on climate and
other environmental, social and governance (ESG) matters.
 Professional
Regulatory Board
of Accountancy
(PRBOA)
 Accounting
and
Auditing
Standard
Setting
Council




 Quality Review Committee

 Education Technical Council
The Commission upon the recommendation of the Board shall within sixty
(60) days from the effectivity of the Implementing Rules and Regulations
(IRR) of RA 9298 create an Education Technical Council (ETC) to assist the
Board in carrying out its powers and functions provided in Rule II, Section 7
(n) and to further assist the Board in the attainment of the objective of
continuously upgrading the accountancy education in the Philippines to
make Filipino CPAs globally competitive. (Sec. 9-B, Rule II, IRR of RA 9298)




 Administrative Supervision of the Board, Custodian of its Records,

Secretariat and Support Services:
The Board shall be under the administrative supervision of the Commission.
All records of the Board, including applications for examination, examination

questions , answer sheets, and other records and documents pertaining to the
CPA licensure examinations, and administrative and other investigative cases
conducted by the Board shall be under the custody of the Commission. The
Commission shall designate the Secretary of the Board and shall provide the
secretariat and other support services to implement the provisions of this RA No.
9298. (Sec. 10, Rule II, IRR of RA 9298)
 Grounds for Suspension or Removal of Members of the Board: The

President of the Philippines, upon the recommendation of the
Commission, after giving the concerned member an opportunity to
defend himself in a proper administrative investigation to be conducted
by the Commission, may suspend or remove any member on the
following grounds:
 Neglect of duty or incompetence;

 Violation or tolerance of any violation of this Act and its implementing rules
and regulations or the Certified Public Accountant ’s Code of Ethics and the
technical and professional standards of practice for certified public
accountants;
 Final judgment of crimes involving moral turpitude; and
 Manipulation or rigging of the certified public accountant ’s licensure
examination results, disclosure of secret and confidential information in the
examination questions prior to the conduct of the said examination or
tampering of grades.
 Grounds for Suspension or Removal of Members of the Board: The

President of the Philippines, upon the recommendation of the
Commission, after giving the concerned member an opportunity to
defend himself in a proper administrative investigation to be conducted
by the Commission, may suspend or remove any member on the
following grounds:
The Commission in the conduct of the investigation shall be guided by the

provisions of Republic Act No. 8981, otherwise known as the PRC Modernization
Act of 2000, its implementing rules and regulations and their respective
amendments. (Sec. 11, Rule II, IRR of RA 9298)
 Annual Report:
The Board shall, at the close of each calendar year, submit an annual report to
the President of the Philippines through the Commission giving a detailed
account of its proceedings and accomplishments during the year and making
recommendations for the adoption of measures that will upgrade and improve
the conditions affecting the practice of accountancy in the Philippines. (Sec. 12,
Rule II, IRR of RA 9298)
RULE III -
EXAMINATION,
REGISTRATION AND
LICENSURE
 Examination
 The Certified Public Accountant Examinations
All applicants for registration for the practice of accountancy shall be

required to undergo a licensure examination to be given by the Board in
such places and dates as the Commission may designate subject to
compliance with the requirements prescribed by the Commission in
accordance with Republic Act No. 8981.
The places/venues and dates of examinations shall be included in the

Schedule of Professional Licensure Examinations for the year issued by
the Commission. (Sec. 13, Rule II, IRR of RA 9298)
 Examination
 Qualifications of Applicants for Examinations - Any person applying for

examination shall establish the following requisites to the satisfaction of
the Board that he/she:
(a) is a Filipino citizen;
(b) is of good moral character;
(c) is a holder of the degree of Bachelor of Science in Accountancy

conferred by a school, college, academy, or institute duly recognized
and/or accredited by the CHED or other authorized government
offices;
(d) has not been convicted of any criminal offense involving moral
turpitude. (Sec. 14, Rule II, IRR of RA 9298)
 Examination
 The following documents shall be submitted in support of the

qualifications of applicants for examinations:
(a) Certificate of Live Birth in National Statistics Office (NSO) Security Paper;
(b) Marriage Contract in NSO Security Paper for married female applicants;
(c) College diploma with indication therein of date of graduation and Special Order
Number unless it is not required;
(d) Baccalaureate Transcript of Records with indication therein of date of graduation
and Special Order Number unless it is not required;
(e) National Bureau of Investigation (NBI) Clearance;
(f) Other documents that the Board may require.
The Board shall not renew a Professional Identification Card, or shall suspend, or
revoke, any Certificate of Registration obtained by false swearing or by any
misrepresentation made in applying for registration or examination and shall not
renew nor grant registration to any applicant whose application contains such
false evidence or information. (Sec. 14, Rule II, IRR of RA 9298)
 Examination
 Scope of Examination - The licensure examination for certified public

accountants shall cover, but are not limited to, the following subjects:
(a) Theory of Accounts

(b) Business Law and Taxation
(c) Management Services
(d) Auditing Theory
(e) Auditing Problems
(f) Practical Accounting Problems I
(g) Practical Accounting Problems II
The Board, subject to the approval of the Commission, may revise or exclude
any of the subjects and their syllabi, and add new ones as the need arises.
Provided, That the change shall not be more often than every three (3) years.
(Sec. 15, Rule II, IRR of RA 9298)
 Examination
 The Professional Regulation Commission, together with the Professional

Regulatory Board of Accountancy, issued PRBOA Resolution # 262, Series of
2015 entitled “Reduced the number of the BLECPA subjects that are included
in the scope of the Board Licensure Examination for Certified Public
Accountant from seven (7) to six (6)” which effective on March 9, 2016.
 Pursuant to the provisions of Republic Act No. 9298, otherwise known as the
Philippine Accountancy Act of 2004, the Board has the power to revise, exclude
or add new subjects in licensure examination as the need arises.
 The subjects in the BLECPA have remained unchanged since 1975 and are now
long overdue for revision to take into account the requirements of the current
times. Before the proposed revisions, the PRBOA conducted a series of
consultations with the members of the academe and other stakeholders to
outline the new subjects for the BLECPA. The revision does not depart radically
from the present content of the BLECPA subjects.
 Examination
 Examination
 Rating in the Licensure Examination
 General average of 75%, with no grades lower than 65% in any subject.
 If a candidate obtains 75% and above in at least a majority of subjects,

he/she shall receive a conditional credit for the subjects passed (remaining
subjects to be taken within two years).
 If the candidate fails to obtain at least a general average of 75% and a

rating of at least 65% in each of the subjects reexamined, he/she shall be
considered as failed in the entire examination. (Sec. 16, Rule II, IRR of RA 9298)
Subject Scenario A Scenario B Scenario C
FAR 100% 75% 95%
AUD 100% 75% 95%
AFAR 100% 75% 65%
MAS 74% 75% 65%
RFBT 74% 74% 65%
TAX 64% 0% 65%
General Average 85.33% 62.33% 75%
Status Failed Conditioned Passed

 Examination
 Report of Ratings
 The Board shall submit to the Commission the ratings obtained by each
candidate within ten (10) calendar days after the examination, unless
extended for just cause.
 Upon the release of the results of the examination, the Commission shall send
by mailing the rating received by each examinee at his/her given address
using the mailing envelope submitted during the examination.
 Provided, That the report of rating may be distributed to the successful

examinees during their mass oath taking as new registered CPAs. (Sec. 17, Rule
II, IRR of RA 9298)
 Examination
 Failing Candidates to Take Refresher Course
 Any candidate who fails in two (2) complete Certified Public Accountant Board
Examinations shall be disqualified from taking another set of examinations unless
he/she submits evidence to the satisfaction of the Board that he/she enrolled in and
completed at least twenty- four (24) units of subjects given in the licensure
examination.
 Provided, That such refresher course shall be offered only by an educational

institution granting a degree of Bachelor of Science in Accountancy.
 Provided Further, That the candidates shall have the option of taking the aforesaid
subjects in the regular course offering or in a special refresher course duly
accredited by the Board.
 For purposes of this Act, the examination in which the candidate was conditioned
together with the removal examination on the subject in which he/she failed
shall be counted as one complete examination. (Sec. 18, Rule II, IRR of RA 9298)
BOA Resolution 2020-46
 Only those educational institutions recognized and/or accredited by the

Commission on Higher Education (CHED) to offer a degree of Bachelor of
Science in Accountancy which obtain an average national passing rate of at
least ten (10%) percent and have at least ten (10) examinees in the CPA
Licensure Examination for the last five (5) years shall be qualified to be
accredited to offer the special refresher course to the candidates. (Sec. 1)
 Upon confirmation of the approved applications by the Board, it shall issue a

Certificate of Accreditation (Annex A) with a validity period of five (5) years
from the date of issuance and shall accordingly inform the qualified
educational institution of such approval. The Certificate of Accreditation shall
be renewed every five years provided all the requirements set forth in Section 2
hereof are complied with. (Sec. 5)
BOA Resolution 2020-46
 The Certificate of Completion as evidenced by the TOR issued by qualified

schools provided in Section 10, hereof, shall be valid for two (2) years from the
date of completion to ensure relevance of the subjects taken in the refresher
course. The validity period as well as the Certificate of Accreditation Number of
qualified schools shall be printed in the TOR. (Sec. 11)
 The Application Division shall accept, in compliance with the refresher course
requirement, certificates of completion issued by schools prior to the
adoption of this Resolution (January 29, 2021), provided it will only have a
validity period of two (2 years) from the issuance thereof and provided
further that no confirmed report has been received by the Board that the
Certificates of Completion are spurious or the applicants did not actually enroll
and attended the refresher course. (Sec. 13)
 Oath
 Issuance of Certificates of Registration and Professional Identification Card
 Roster of Certified Public Accountants
 Indication of Certificate of Registration Identification Card and Professional
Tax Receipt
 Refusal to Issue Certificate of Registration and Professional Identification
Card
 Suspension and Revocation of Certificates of Registration and Professional
Identification Card and Cancellation of Special Permit
 Reinstatement, Reissuance and Replacement of Revoked or Lost

Certificates
RULE IV –
PRACTICE OF
ACCOUNTANCY
RULES ON NAME:
 A CPA shall practice only under an individual, firm or partnership name

allowed in accordance with Philippine laws and shall not include any
fictitious name, indicates specialization or is misleading as to the type of
organization (proprietorship or partnership).
 Individual CPA – registered name with BOA and PRC (Juan Dela Cruz, CPA)
 Firm (Sole Proprietorship) – registered name with DTI and include SP’s real
name (Juan Dela Cruz & Associates)
 Partnership – registered name with SEC (Dela Cruz, Espiritu, and Co.)
- may be registered as a general partnership or a limited liability
partnership
DEATH, WITHDRAWAL OR RESIGNATION OF SOME OR ALL OTHER PARTNERS:
 A partner surviving the death or withdrawal of all other partners in a

partnership may continue to practice under the partnership name for a
period of not more than two (2) years after becoming a sole proprietor.
 This means that on or before reaching the end of the two (2) year period, the
resulting sole proprietor if he/she continues to practice under a proprietorship
form of organization shall change the old partnership name to an Individual
CPA or Firm name.
 Philippine Institute of Certified Public Accountants (PICPA)
 The Philippine Institute of Certified Public Accountants (PICPA), founded

in November 1929, is the accredited professional organization (APO) of
CPAs by the PRC per PRC Accreditation No. 15 dated October 2, 1975.
 Non-stock and not-for-profit organization
 For the benefit and welfare of CPAs, advancement of profession, and

attainment of other professional ends.
 Sectoral organizations: Association of Certified Public Accountants in

Public practice (ACPAPP) for CPAs in public practice. Association of
Certified Public Accountants in Commerce & Industry (ACPACI) for those
in commerce and industry, Association of Certified Public Accountants in
Education (ACPAE) for those in education, Government Association of
Certified Public Accountants (GACPA) for those in government.
VALIDITY AND EXPIRATION (BOA RESOLUTION NO. 2022-53)
 Validity of the Certificate of Accreditation - The following procedures shall be

observed in computing the allowable validity period of accreditation of
approved applications:
a) PIC validity period of at least one (1) year but not more than three (3)
years - The accreditation validity period shall only be valid until the birth
month of the applicant.
b) PIC validity period of three (3) years or more – The accreditation validity
period shall only have a maximum validity period of three (3) years until
the birth month of the applicant. In order to comply with the maximum
validity period of three (3) years, the effectivity of the accreditation shall
be counted backward using the birth month of the applicant as the base
period. (Rule IV, Section 12)
 Renewal of the Certificate of Accreditation – The following procedures shall be

observed in computing the allowable validity period of accreditation for the renewal of
accreditation:
a) Renewal of accreditation filed before the expiry date – The effectivity date and
expiry date of the renewal of accreditation shall be reckoned from the date
preceding the expiry date indicated in the old issued Certificate of Accreditation and
shall expire on the birth month of the professional as shown in his/her submitted
PIC; Provided, that it shall not exceed three (3) years; and Provided further, that in a
situation where the validity period of the PIC of the professional is more than three
(3) years from the date of issue, the effectivity date of the renewal of accreditation
shall be adjusted using the birth month of the applicant as the base period in
computing the maximum validity period of the three (3) years of accreditation. As a
transition, the applicant shall be given an EXTENDED accreditation for the period in
excess of the three (3) years validity period to be embodied in a separate document
to be determined by the Board. After the transition period, the professional shall be
renewing his accreditation and PIC at least three (3) months prior to the expiry of
his/her accreditation and birth month as indicated in his/her PIC to ensure the
synchronization of the three-year validity period of the accreditation and that of the
birth month in the PIC. (Rule IV, Section 13)
 Renewal of the Certificate of Accreditation – The following procedures shall be

observed in computing the allowable validity period of accreditation for the renewal of
accreditation:
b) Renewal of accreditation filed a month to three (3) years after the expiry
date – The effectivity and expiry date of the renewal of accreditation shall be
reckoned from the date of approval by the Board Focal Person until the birth
month of the professional as shown in his/her submitted PIC; Provided, it shall
not exceed three (3) years. In a situation where the validity period of the PIC of
the professional is more than three (3) years from the date of issue/approval of
the renewal, the procedures laid down in Section 13 (a) shall be applied.
c) Renewal of Accreditation filed more than (3) years after the expiry date –
Applications for the renewal of accreditation shall be deemed as initial
applicants and Section 12 hereof shall be applied in the computation of the
accreditation validity period. (Rule IV, Section 13)
CONTINUING PROFESSIONAL DEVELOPMENT ACT OF
2016 (RA NO. 10912)
 Republic Act (RA) No. 10912 - AN ACT MANDATING AND STRENGTHENING

THE CONTINUING PROFESSIONAL DEVELOPMENT PROGRAM FOR ALL
REGULATED PROFESSIONS, CREATING THE CONTINUING PROFESSIONAL
DEVELOPMENT COUNCIL, AND APPROPRIATING FUNDS THEREFOR, AND
FOR OTHER RELATED PURPOSES.
 This Act shall be known as the “Continuing Professional Development Act of

2016”.
 Declaration of Policy - It is hereby declared the policy of the State to promote

and upgrade the practice of professions in the country. Towards this end, the
State shall institute measures that will continuously improve the competence
of the professionals in accordance with the international standards of practice,
thereby, ensuring their contribution in uplifting the general welfare, economic
growth and development of the nation. (Article I, Sec. 2 of RA 10912)
2016 (RA NO. 10912)
 Continuing Professional Development (CPD) – refers to the inculcation of

advanced knowledge, skills and ethical values in a post-licensure specialization
or in an inter- or multidisciplinary field of study, for assimilation into
professional practice, self-directed research and/or lifelong learning.
 CPD Council – refers to a body created to promote and ensure the continuous
improvement of professionals, in accordance with national, regional and
international standards of practice.
 CPD Credit Unit – refers to the value of an amount of learning that can be
transferred to a qualification achieved from formal, informal or nonformal
learning setting, wherein credits can be accumulated to predetermined levels
for the award of a qualification.
2016 (RA NO. 10912)
 CPD Program – refers to a set of learning activities accredited by the CPD

Council such as seminars, workshops, technical lectures or subject matter
meetings, nondegree training lectures and scientific meetings, modules, tours,
and visits, which equip the professionals with advanced knowledge, skills and
values in specialized or in an inter- or multidisciplinary field of study, self-
directed research and/or lifelong learning.
 CPAs: 120 CUs, min. of 20 CUs each year.
 Excess CUs not carried over, except doctoral, masteral and other specialty
trainings.
2016 (RA NO. 10912)
 Strengthening the CPD Program. - There shall be formulated and implemented CPD
Programs in each of the regulated professions in order to:
(a) Enhance and upgrade the competencies and qualifications of professionals for the
practice of their professions pursuant to the Philippine Qualifications Framework
(PQF), the ASEAN Qualifications Reference Framework (AQRF) and the ASEAN
Mutual Recognition Arrangement (ASEANMRAs);
(b) Ensure international alignment of competencies and qualifications of professionals
through career progression mechanisms leading to specialization/sub-
specialization;
(c) Ensure the development of quality assured mechanisms for the validation,
accreditation and recognition of formal, nonformal and informal learning
outcomes, including professional work experiences and prior learning:
(d) Ensure maintenance of core competencies and development of advanced and new
competencies, in order to respond to national, regional and international labor
market needs; and
(e) Recognize and ensure the contributions of professionals in uplifting the general
welfare, economic growth and development of the nation. (Article II, Sec. 4 of RA
10912)
2016 (RA NO. 10912)
 Nature of CPD Programs. - The CPD Programs consist of activities that range from
structured to nonstructured activities, which have learning processes and outcomes.
These include, but are not limited to, the following:
(a) Formal learning - refers to educational arrangements such as curricular

qualifications and teaching-learning requirements that take place in education and
training institutions recognized by relevant national authorities, and which lead to
diplomas and qualifications;
(b) Nonformal learning - refers to learning that has been acquired in addition or
alternatively to formal learning, which may be structured and made more flexible
according to educational and training arrangements;
(c) Informal learning - refers to learning that occurs in daily life assessed, through the
recognition, validation and accreditation process, and which can contribute to a
qualification;
2016 (RA NO. 10912)
 Nature of CPD Programs. - The CPD Programs consist of activities that range from
structured to nonstructured activities, which have learning processes and outcomes.
These include, but are not limited to, the following:
(d) Self-directed learning - refers to learning activities such as online training,

local/international seminars/nondegree courses, institution/company-sponsored
training programs, and the like, which did not undergo CPD accreditation but maybe
applied for and awarded CPD units by the respective CPD Council;
(e) Online learning activities - refer to structured or unstructured learning initiatives,

which make use of the internet and other web-based Information and
Communications Technology solutions; and
(f) Professional work experience. (Article II, Sec. 5 of RA 10912)

2016 (RA NO. 10912)
 Powers, Functions and Responsibilities of the PRC and the Professional Regulatory
Boards (PRBs). - The PRC and the PRBs shall undertake the overall implementation of
the CPD Programs, and for this purpose, shall:
(a) Organize CPD Councils for each of the regulated professions and promulgate
guidelines for their operation;
(b) Review existing and new CPD Programs for all of the regulated professions;
(c) Formulate, issue, and promulgate guidelines and procedures for the
implementation of the CPD Programs;
(d) Coordinate with the academe, concerned government agencies, and other
stakeholders in the implementation of the CPD Programs and other measures
provided under this Act; and
(e) Coordinate with concerned government agencies in the development of
mechanisms and guidelines, in the grant and transfer of credit units earned from
all the learning processes and activities, pursuant to this Act. (Article II, Sec. 6 of
RA 10912)
2016 (RA NO. 10912)
 CPD Council. - There is hereby created a CPD Council in each of the regulated
professions, which shall be under the supervision of the concerned PRB. Every CPD
Council shall be composed of a chairperson and two (2) members.
 The chairperson of the CPD Council shall be the member of the PRB so chosen by the
PRB concerned to sit in the CPD Council.
 The first member shall be the president or officer of the AIPO/APO duly authorized by
its Board of Govenors/Trustees. In the absence of the AIPO/APO, the PRB concerned
shall submit within ten (10) working days from notification of such absence, a list of
three (3) recommendees from the national professional organizations. The PRC shall
designate the first member within thirty (30) days from receipt of the list.
2016 (RA NO. 10912)
 The second member shall be the president or officer of the national organization of
deans or department chairpersons of schools, colleges or universities offering the
course requiring the licensure examination. In the absence of such organization, the
PRB concerned shall submit, within ten (10) working days from notification of such
absence, a list of three (3) recommendees from the academe. The PRC shall designate
the second member within twenty (20) working days from receipt of the list.
 The term of office of the chairperson of the CPD Council shall be coterminous with
his/her incumbency in the PRB unless sooner replaced by the PRB concerned through
a resolution, subject to the approval of the PRC. The first and second members shall
have a term of office of two (2) years unless sooner replaced through a resolution by the
AIPO/APO concerned or the organization of deans or heads of departments,
respectively. However, members of the CPD Council who are appointed by the PRC
may be replaced before the end of the two (2)-year period, upon the recommendation
of the PRB through a resolution. (Article II, Sec. 7 of RA 10912)
2016 (RA NO. 10912)
 Powers, Functions and Responsibilities of the CPD Council. - The CPD Council for
each profession shall:
(a) Ensure the adequate and appropriate provision of CPD Programs for their
respective profession;
(b) Evaluate and act on applications for accreditation of CPD Providers and their CPD
Programs;
(c) Monitor and evaluate the implementation of the CPD Programs;
(d) Assess and/or upgrade the criteria for accreditation of CPD Providers and their
CPD Programs on a regular basis;
(e) Develop mechanisms for the validation, accreditation and recognition of self-
directed learning, prior/informal learning, online learning, and other learning
processes through professional work experience;
(f) Conduct researches, studies and benchmarking for international alignment of the
CPD Programs;
(g) Issue operational guidelines, with the approval of the PRC and the PRB concerned;
and
(h) Perform such other functions related or incidental to the implementation of the
CPD. (Article II, Sec. 8 of RA 10912)
2016 (RA NO. 10912)
 Secretariat. - A CPD Council Secretariat is hereby created at the PRC Central and
Regional Offices to provide technical, administrative and operational support to the
CPD Councils and the PRBs in the implementation of the CPD Programs. The CPD
Council Secretariat shall be headed by an Executive Director to be appointed by the
PRC. (Article II, Sec. 9 of RA 10912)
2016 (RA NO. 10912)
 CPD as Mandatory Requirement in the Renewal of Professional License and
Accreditation System for the Practice of Professions. - The CPD is hereby made as a
mandatory requirement in the renewal of the PICs of all registered and licensed
professionals under the regulation of the PRC. (Article III, Sec. 10 of RA 10912)
 Recognition of Credit Units. - All duly validated and recognized CPD credit units
earned by a professional shall be accumulated and transferred in accordance with the
Pathways and Equivalencies of the PQF. (Article III, Sec. 11 of RA 10912)
 Career Progression and Specialization. - The PRC and the PRBs, in consultation with
the AIPO/APO, the Civil Service Commission (CSC), other concerned government
agencies and industry stakeholders, shall formulate and implement a Career
Progression and Specialization Program for every profession. The Career Progression
and Specialization Program shall form part of the CPD. (Article III, Sec. 12 of RA 10912)
 Role of Concerned Government Agencies and the Private Sector. - All concerned
government agencies and private firms and organizations employing professionals
shall include the CPD as part of their human resource development plan and program.
(Article III, Sec. 13 of RA 10912)
2016 (RA NO. 10912)
 PRC Resolution 2019-1146, which took effect on March 1, 2019, provides for a “transition
period” for all Philippine professionals.
 During this transition period, the following shall be observed:
 Professionals working overseas shall not be covered by the CPD requirement.

 Newly licensed professionals shall not be covered by the CPD requirement for
the first renewal cycle after obtaining the license.
 The various CPD Councils shall reduce the required CPD credit units to a
minimum, which shall not be more than fifteen (15), as provided for under
applicable laws.
 CPAs getting accreditation from BOA (including accreditation as ASEAN CPA) –

120 units (Technical Competence – 30 units, Professional Skills – 5 units,
Professional Values, Ethics, and Attitudes – 5 units, Flexible CPD units – 80 units).
RULE V –
PENAL AND FINAL
PROVISIONS
 Penal Provision
Any person who shall violate any of the provisions of RA No. 9298 or this IRR as
promulgated by the Board subject to the approval of the Commission, shall,
upon conviction, be punished by:
 a fine of not less than P50,000.00 or

 by imprisonment for a period not exceeding two years or
 both. (RA 9298, sec. 36)
 Implementing Rules and Regulations
Within ninety (90) days after the effectivity of RA No. 9298, the Board, subject
to the approval of the Commission and in coordination with the accredited
national professional organization (APO), shall adopt and promulgate such
rules and regulations to carry out the provisions of RA No. 9298 and which shall
be effective fifteen (15) days following their publication in the Official Gazette or
in any major daily newspaper of general circulation. (RA 9298, sec. 37)
 Interpretation of RA No. 9298 and its IRR
Nothing in the RA No. 9298 and this Implementing Rules and Regulations shall
be construed to effect or prevent the practice of any other legally recognized
profession. (RA 9298, sec. 38)
 Enforcement of RA No. 9298 and its IRR
Primary duty of the Commission and the Board to effectively enforce RA No.
9298 and its IRR.
All duly constituted law enforcement agencies and officers of the government
or any political subdivisions shall render assistance in enforcing the provisions
of RA No. 9298 and this IRR and to prosecute any person in violation.
The Secretary of Justice or his duly designated representative shall act as legal
adviser to the Commission and the Board and shall render legal assistance as
may be necessary in carrying out the provisions of RA No. 9298 and this IRR.
(RA 9298, sec. 39)
 Funding Provision
The chairperson of the Commission shall immediately include in the

Commission’s programs the implementation of RA No. 9298 and this IRR the
funding of which shall be included in the annual General Appropriations Act.
Provided, That the amount necessary to carry out the initial implementation of
RA No. 9298 shall be charged against the current year’s appropriation of the
Commission.
Thereafter, sums as maybe necessary for the continued implementation of RA

No. 9298 shall be included in the succeeding General Appropriations Act (GAA).
(RA 9298, sec. 40)
 Transitory Provision
The incumbent chairman and members of the Board shall continue to serve in
their respective positions without the need of new appointments, not be
disqualified for appointment.
All graduates with a Bachelor’s Degree, major in Accounting shall be allowed

to take the CPA Licensure Examination within two (2) years from the effectivity
of RA No. 9298 (or until May 2006). (RA 9298, sec. 41)
 Separability Clause
If any clause, provision, paragraph or part of RA No. 9298 and this

Implementing Rules and Regulations shall be declared unconstitutional or
invalid, such judgment shall not affect, invalidate or impair any other part
hereof, but shall be merely confined to the clause, provision, paragraph or part
directly involved in the controversy in which such judgment has been
rendered. (RA 9298, sec. 42)
 Effectivity
RA 9298 shall take effect after fifteen (15) days following its publication in the
Official Gazette or in any major daily newspaper of general circulation.
IRR was promulgated in September 2004 (within 90 days from the effective
date of RA 9298) and took effect after fifteen (15) days following its publication
in the Official Gazette or in any major daily newspaper of general circulation.
(RA 9298, sec. 44)
Thanks!
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PHILIPPINE

Revised Accountancy Philippine Accountancy

 Presidential Decree No. 692 (otherwise known as the “Revised Accountancy

 The law regulating the practice of accountancy in the Philippines is the

Other Law Enforcement Agencies

• Shall render assistance in enforcing the provisions of the RA.

• Legal Adviser to PRC and BOA.

 SEC. 2. Declaration of Policy. – The State recognizes the importance of

 Objectives of the Act are to provide for and govern:

 The standardization and regulation of accounting education;

 The examination for registration of certified public accountants; and

 The supervision, control, and regulation of the practice of accountancy

 Practice of Public Accountancy

 Practice in Commerce and Industry

 Practice in the Government (RA 9298, sec. 4)

 be it his/her individual capacity, or as a partner or as a staff member in an

 the audit or verification of financial transactions and accounting records; or

 involved in decision making requiring professional knowledge in the science of

 in an educational institution which involve teaching of accounting, auditing,

 Provided, That members of the Integrated Bar of the Philippines may be

 who holds, or is appointed to, a position in an accounting professional group in

 PRBOA is under the

 Professional Regulatory Board of Accountancy (PRBOA)

 The Board shall be composed of a chairman and six (6) members to be

 The four (4) sectors in the practice of accountancy shall as much as

 Professional Regulatory Board of Accountancy (PRBOA)

 Time of submission of nomination to the Board by the APO: The APO

 There should be adequate documentation to show the qualification and

 Professional Regulatory Board of Accountancy (PRBOA)

 Qualifications of Members of the Professional Regulatory Board of

 Must be a natural-born citizen and a resident of the Philippines;

 Must be a duly registered Certified Public Accountant with at least

 Must be of good moral character and must not have been

 Professional Regulatory Board of Accountancy (PRBOA)

 Qualifications of Members of the Professional Regulatory Board of

 Professional Regulatory Board of Accountancy (PRBOA)

 No person who has served two successive complete terms as chairman or

 Appointment to fill up an unexpired term is not to be considered as a

 Professional Regulatory Board of Accountancy (PRBOA)

 Compensation and Allowances of the Board:

 Professional Regulatory Board of Accountancy (PRBOA)

 To supervise the registration, licensure and practice of accountancy in the

 To administer oaths in connection with the administration of this Act;

 To issue, suspend, revoke, or reinstate the Certificate of Registration for the

 To adopt an official seal of the Board;

 To prescribe and/or adopt a Code of Ethics for the practice of accountancy;

 To monitor the conditions affecting the practice of accountancy and adopt

 To conduct an oversight into the quality of audits of financial statements

 To investigate violations of this act and the rules and regulations

 To issue a cease or desist order to any person, association, partnership or

 To ensure, in coordination with the Commission on Higher Education (CHED)

 To exercise such other powers as may be provided by law as well as those

The policies, resolution, rules and regulations, issued or promulgated by the

 Accounting and Auditing Standard Setting Council

The Commission upon the recommendation of the Board shall within

 Accounting and Auditing Standard Setting Council

 Accounting and Auditing Standard Setting Council

In September 2022, the Professional Regulatory Board of Accountancy (BOA) issued

 Adoption of the IFRS Sustainability Disclosure Standards that will be developed by

 Accounting and Auditing Standard Setting Council

 Accounting and Auditing Standard Setting Council

 Accounting and Auditing Standard Setting Council

 Accounting and Auditing Standard Setting Council