PICPA – LGAO SUMMIT

BOA UPDATES

BAGUIO CITY
February 22, 2019
 BOARD OF
A C C O U N TA N C Y
DIRECTIONS AND PERSPECTIVE

A brief discussion on the current strategic directions and perspective of the

board towards the global excellence of Filipino accountants

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T h e Fi l i p i n o C PA , a truly G LO C A L
Accountant
BOARD OF ACCOUNTANCY
MAIN THRUST FOR THE NEXT 5 YEARS
RA 9298: Declaration of
Policy
The State shall
develop and nurture COMPETENT

professional
accountants VIRTUOUS

PRODUCTIVE
Through inviolable, honest, effective, and
credible licensure examinations and
through WELL ROUNDED

regulatory measures, programs and

activities that foster their professional
growth and development.

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 3.
SEC.

EDUCATION
The standardization and
regulation of accounting
education

REGUL ATION
The supervision, control and
regulation of the practice of
EXAMINATION
accountancy in the Philippines The examination for
registration of certified public
accountants
 T h e Re g u l a t o r y Fr a m e w o r k
CHED DEPED PRC PRC

Technical
Panels and
Committees

HIGHER EDUCATIONAL
PRLs
INSTITUTIONS CPD
Code of
ethics

PSGs TOS

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 Pass Rate
1 Low passing percentage in CPA
Board Examination

No. of Schools
2 About 520 schools all over the
country are offering BS Accountancy

Ineff ective BSA

program
3 About 1/3 of the 520 schools have zero
PROGRAM passing percentage in CPA Board

LEVEL:
Examination
The Senior High
Plight
Present challenges
4 The introduction of Senior High
School seems to be problematic

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C PA L E PA SS I N G
P E R C E N TA G E
National Pass Rate : Last 6 Examinations

42.94%
36.47% 35.13%
30.44% 28.92%
25.18%

May-16 Oct-16 May-17 Oct-17 May-18 Oct-18

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 GREATER
COLL ABORATION
Strengthen collaboration between CHED
and BOA
PRIORITIZE
W H AT Prioritize low performing schools in the
SHOULD BE school visitation projects

PRUNING PROJECT
DONE? Termination of BSA programs for schools which
The quest for a better professional have remote capabilities of producing quality
regulation CPA candidates
FUTURE-PROOF
Periodic review of BSA Curriculum to
ensure that it caters to the needs of
time
REPRESENTATION
Make representations to Dep Ed as to
how BOA through PICPA can assist in
the ABM track in Senior High 9
New Accounting Programs-SY 2018

BSA BSMA BSIA BSAIS

CMO No. 27, series of 2017-
Policies, Standards and
Guidelines (PSGs) for the
Bachelor of Science in
Accountancy (BSA)
CMO No. 28 – PSGs for CMO No. 29 – PSGs for CMO No. 30 – PSGs for
Bachelor of Science in Bachelor of Science in Bachelor of Science in
Management Accounting Internal Auditing (BSIA) Accounting Information
(BSMA) Systems (BSAIS)
E X A M I N AT I 0 N L E V E L : P r e s e n t
s i t u a t i o n

Out- of-Sync CPA Exam Syllabus not in synch with BSA curriculum

Selective Examination may not cover the entire syllabus

New CPAs are short of the required hard skills of the job because of
the tendency to depend on test banks in order to perform well in
Profe ssional
the examination
shor tfall

Lack of emphasis on the critical role played by ethics ang

Ethics and us
governance on all subjects.

Exam results released more than a week after the last day of the
The long
exam
nights
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 Retention Schools must adopt retention program for
their BSA Offering

Periodic review of CPA Exam Syllabus to

Review &
PROGRAM Sync
make sure it is in synch with the BSA
curriculum as offered in schools

S Outcomes-
Outcomes-based questions based on TOS
based in the preparation of the examination

Ethics- Integration of ethical concepts on every

infused subjects

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 Formulate questions that would test hard
Hard
skills of the “job” rather than
skills concentrating on test of memory

Testing candidates on their

Wholeso communications, leadership,
entrepreneurship and other business-
PROGRAMS me CPA
required skills

Global Benchmarking of licensure examination

standard with international standards

3-day Release of Board Exam results within 3

Agony days after the last day of the examination

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R E G U L AT I O N : Present Situation

1 License non-sense 4 About debit & credit

Majority of CPAs are not renewing their Non-CPAs are allowed to teach Accounting
licenses subjects

2 Accreditation review 5 CPD Dilemma

Accreditation program seems to be CPAs find the CPD requirement too
defective burdensome

3 Autograph? 6 Ethics again

Proliferation of notarial audit PRC is receiving quite a number of
complaints re: unethical conduct of CPAs

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 MO N IT OR
Strict monitoring on
P R O G RA M S compliance of practitioners
on accreditation
requirements, where
required 4
3
P R OJ E C T: R E NE W
Project License C PD
Renewal Provide the means that
CPAs can earn CPD
1 credits, from both local
2 R E VI E W and international
Review accreditation providers
process in all practice
areas to ensure that it
is demonstrative of
skills required
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 MO R E E T HI C S
Emphasis on ethics in the
P R O G RA M S programs of BOA and PICPA

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C RO S S -BO R DE R
Encourage CPAs to explore Q AR
cross-border practice, where Implement Quality Assurance
opportunities exist Review for CPAs in Public
5 Practice
6 I N TE R NATI O NAL
Explore other areas of
international agreements for
accountancy practice of
Filipino CPAs

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PICPA
 A very important partner of the Board of
Accountancy
 PICPA is PRC – BOA’s AIPO
 Let us support the proposed by-laws amendments
Globalization Trends In Our Midst
 ASEAN MRA and the mobile accountant is coming
 Bilateral MRAs soon to follow?
 Global accountancy bodies and leaders in our
doorsteps
 Partnerships with ASEAN accountancy regulators
 Assistance from global developmental partners
 World Bank A&A Report on Observance of
Standards and Codes (A&A ROSC)
ASEAN Mutual Recognition
Arrangement
DD SIGNING
1. ENGINEERING Dec. 2005
2. NURSING Dec. 2006
3. SURVEYING (Framework) Nov. 2007
4. ARCHITECTURE Nov. 2007
5. DENTISTRY Aug. 2008
6. MEDICINE Feb. 2009
7. ACCOUNTANCY Nov. 2014
ASEAN PRIORITY

Exchange
information and Provide
Promote adoption
Facilitate mobility enhance opportunities for
of best practices
of practitioners cooperation in capacity building
on standards and
within ASEAN respect of mutual and training of
qualifications
recognition of practitioners
practitioners
THE FUTURE IS NOW!

 Future trends of robotics, artificial intelligence,

cloud hosting, technology tools and applications,
data analytics, cyber security, sustainability and
integrated reporting, blockchain, digitalization,
XBRL reporting
 Previous learning must be updated
 Accountancy leaders should lead the revolution of
change
 Change in mindset and skills set are required
 Do your share… read and learn and be ready
THANK YOU!
ANY QUESTIONS?