Accounting and Its Environment: - (Continuation)

1
A c c o u n ti n g a n d i t s
• ( c o n ti n u a ti o n )
Environment
Accounting and its

Environment
2
Accountancy in
the Philippines
Environment
March 17, 1928, Act No. 3105 was

approved by the Sixth Legislature.
Since then the profession has grown
rapidly
1928- 43 registered accountants
2018- 188,203
3
Don Vicente
Fabella
Environment
Became the first Filipino CPA

in the United States (passed
the Milwaukee, Wisconsin
CPA Board Exams), and
founder of Jose Rizal
University in 1919
4
Dr. Nicanor
Reyes
Environment
Founder and first president of

FEU (started in 1928 as the
Institute of Accountancy which
later became the Institute of
Accounts, Business and Finance)
Mr. FEU died in hero during
WWII.
5
Manuel Villar
Environment
• Filipino tycoon
• Former Speaker of the House
of Representatives
• Former Senate President
• 2010 Presidential Candidate of
the Nacionalista Party
6
Washington
SyCip
Environment
• Past president of the

International Federation of
Accountants
• The only Asian who has held
the position and Founder and
Past Chairman of SGC & Co,
the leading accountancy firm
in the country
7
Jose W. Diokno
Environment
• Former senator of the

Philippines
• Former Secretary of Justice
8
Philippine
Accountancy Act of
2004
Environment
R.A. 9298
9
Environment
Practice of Public
Accountancy
- a u d i ti n g
- p r e p a r a ti o n o f F S f o r
public purposes
- p r e p a r a ti o n o f I T R
- a c c o u n ti n g
- c o m p i l a ti o n s
-agreed-upon procedures
-consultancy/advisories
10
Practice in
Commerce and
Industry
Environment
- A person involved in decision

making requiring professional
knowledge in the science of
accounting, or when such
employment or position
requires that the holder
thereof be a CPA
11
Practice in
Education/Academe
Environment
-a person in an educational institution

which involve teaching of accounting,
auditing, management advisory services,
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.
12
Practice in
Government Drag and drop

Environment
image here
-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 proprietory
functions, where decision making requires
professional knowledge in the science of
accounting, or where civil service eligibility
as a certified public accountant is a
prerequisite.
The Proffessional 13
Regulatory Board of
Accountancy and its
Composition
Environment
-1 chairman
-6 members
- 1 vice-chairman (1 year)
Qualifications:
14
• Must be a natural-born citizen and resident of the Philippines

• Must be a duly registered CPA with at least 10 year of work experience in any
scope of practice of Accountancy
Environment
• Must be of good moral character and must not have been convicted of crimes
involving moral turpitude
• 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 Accredited National Professional
Organization of CPAs at the time of his/her appointment.
15
The CPA
Examinations
Environment
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.
Qualifications of Applicants:
16
• Filipino citizen
• Is of good moral character

Environment
• Holder of the degree BS Accountancy conferred by a school, college,

academy or institute duly recognized and/or accredited by the CHED
or other authorized government office
• Has not been convicted of any criminal offense involving moral
turpitude.
Required documents:
17
• Certificate of Live Birth in NSO/PSA

• Marriage contract in NSO/PSA for married female applicants

Environment
• College diploma w/ date of graduation and Special Order Number

• Baccalaureate TOR w/ date of graduation and Special Order Number
• NBI Clearance
• Other documents that the BoA may require
Scope of Examination
18
• Financial Accounting and Reporting

• Taxation
Environment
• Regulatory Frameworks for Business Transactions

• Advanced Financial Accounting and Reporting
• Management Advisory Services
• Auditing
Rating in the Licensure Examination
19
• Gen. average of 75%

• No grade lower than 65% in any given subject

Environment
Conditional:
• Gen. average of 75% and above in at least majority (4) subjects
• Take the remaining subjects within 2 years from the preceeding
examination
• Gen. ave. of 75% with no grade lower than 65% in each subject
reexamined
Failing Candidates to take Refresher course
20
• Failed in two complete CPA Board Examinations

• Submit evidence that he/she enrolled and completed at least 24

Environment
units of subject given in the licensure examination.

• Such refresher course shall be offered only by an educational
institution granting a degree of BS Accountancy
21
Philippine Institute of
Certified Public
Accountants
Environment
P r o f e s s i o n a l O r g a n i z a ti o n
Drag and drop 22
image here
Environment
FINANCIAL REPORTING STANDARDS

ACCOUNTING STANDARDS COUNCIL
COUNCIL
15 members
8 members 1 chairman
BOA – 1
SEC – 1
PICPA – 4 BSP – 1
SEC – 1 BIR – 1
COA – 1
CB – 1 Major org. of preparers and users of FS - 1
PRC – 1 nACPAE - 2
ACPACI – 2
FINEX – 1 ACPAPP – 2
GACPA - 2
Drag and drop
image here
23
Core Competencies
Frameworks for
Accountants
Environment
Knowledge
Skills
Values
24
Knowledge
Environment
General
Organizational and Business
Information Technology(IT)
Accounting
25
Skills
Environment
Intellectual
Interpersonal
Communication
Environment
Moral Values
Values
Professional Ethics
26
Environment
Business
Role of Ethics in
27
28
Environment
Ethics
is concerned with right and
wrong and how conduct
should be judged to be good
or bad, it is about how we
should live our lives and, in
particular, who we should
behave towards other people.
It is therefore relevant to all
forms of human activity
29
Environment
Ethical Dillema
is a situation in which there is
no obvious right or wrong
decision but rather a right or
wrong answer
Environment
Child Labor
30
31
• To remain competitive, a company decided to use cheaper lumber

in the ladders it sells; although this may, in some instances, cause

injury.
Environment
• A staff is asked to take part in a clandestine investigation of the

personal life of an employee.
• A superior directs a subordinate not to hire a qualified individual
because he is “not his(superior) type”
• A human resource manager must lay off a staff who desperately
needs the income and the staff is without any good alternative job
option
• Having privileged or insider information which can surely help the
trusted staff earn a significant amount of money from the stock
market
32
Environment
ETHICAL REASONING SLEEP-TEST ETHICS
Analyze the consequences A person who made the right

Analyze the actions choice can sleep soundly
Make a decision after making the decision
33
Drag and drop
White-collar crime
Environment
image here
Environment
34
Whistle-blowing
image here
Drag and drop
Environment
35
Conflict of Interest
Environment
Fiduciary
responsibilities
36
Environment
37
Sexual harrassment
Environment
image here
Drag and drop
Discrimination
38
Environment
Sarbanes-Oxley Act
39
Code of Ethics for 40
Professional
Accountants in the
Philippines
Environment
41
Professional
Accountant
Environment
- An individual who holds a valid

certificate issued by the Board of
Accountancy(i.e. CPA), whether
he/she be in public practice,
industry, commerce, the public
sector or education
Satisfy the needs of an individual

client/employer and act in the
public interest.
42
Fundamental Principles
Environment
Integrity
Objectivity
Professional Competence and Due Care
Confidentiality
Professional Behavior
References
43
https://www.borgenmagazine.com/child-labor-today/
https://www.voicesofyouth.org/blog/lost-childhood-child-labor
Environment
shutterstock.com
https://complianceandethics.org/why-people-engage-in-white-collar-crime/
https://medium.com/@charithniroshan44/ethical-whistle-blowing-fc931a42f861
https://
www.investopedia.com/ask/answers/042915/what-are-some-examples-fiduciary
-duty.asp
https://
www.hrmagazine.co.uk/article-details/discrimination-costs-the-uk-127-billion-a-y
ear
https://www.yourmembership.com/blog/code-ethics-important/
https://www.hwaalliance.com/what-is-the-sarbanes-oxley-sox-act-of-2002/

Accounting and Its Environment: - (Continuation)

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Accounting and Its Environment: - (Continuation)

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1

Accounting and its

March 17, 1928, Act No. 3105 was

Became the first Filipino CPA

Founder and first president of

• Past president of the

• Former senator of the

- A person involved in decision

-a person in an educational institution

Government Drag and drop

-a person who holds, or is appointed to, a

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

All applicants for registration for

• Is of good moral character

• Holder of the degree BS Accountancy conferred by a school, college,

• Certificate of Live Birth in NSO/PSA

• Marriage contract in NSO/PSA for married female applicants

• College diploma w/ date of graduation and Special Order Number

• Financial Accounting and Reporting

• Regulatory Frameworks for Business Transactions

• Gen. average of 75%

• No grade lower than 65% in any given subject

• Failed in two complete CPA Board Examinations

• Submit evidence that he/she enrolled and completed at least 24

units of subject given in the licensure examination.

FINANCIAL REPORTING STANDARDS

• To remain competitive, a company decided to use cheaper lumber

in the ladders it sells; although this may, in some instances, cause

• A staff is asked to take part in a clandestine investigation of the

ETHICAL REASONING SLEEP-TEST ETHICS

Analyze the consequences A person who made the right

Drag and drop

- An individual who holds a valid

Satisfy the needs of an individual

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