THE PROFESSIONAL PRACTICE OF ACCOUNTING
THE ACCOUNTING PROFESSION AND ITS
CHARACTERISTICS
In our society, professions are generally recognized as
elite occupational classifications. However, there are no
universally established standards as to what should
make up a profession. Experts identified five major
characteristics of an ideal profession which the CPA
profession satisfies. These are:
A. Systematic body of theory – the underlying
theory of the public accounting profession
consists of accounting theory (generally
accepted accounting principles and practices)
and auditing theory (a science of validation).
Knowledge in systematic theory can be achieved
best through formal college level education in an
academic environment.
B. Professional authority – clients who use the
service of the professional do not really
understand their own needs. Thus, the
professional determines what is good or bad for
the client and the client accedes to this
professional judgment. The basis for the CPA’s
authority is his expertise in the systematic theory
of accounting and auditing.
C. Community sanction – admission to the public
accounting profession is controlled. To become a
CPA, a candidate must satisfy government,
educational and experience requirements and
pass the CPA licensure board examinations. The
PRC through the BOA controls this licensing
system. Although CPAs are responsible to the
community for their actions, it is generally
accepted that a professional’s performance
should be judged based on standards established
by the profession itself.
D. Regulations code – the powers and privileges
granted to the public accounting profession by
the community effectively constitute a monopoly.
To prevent abuse of this monopoly and to
discipline its members, the Rules of Professional
Conduct or Code of Ethics have been
promulgated and made legally binding through
the Accountancy Act.
E. A culture – the CPA is member of a time
honored profession and the status of the
profession and the responsibilities that
accompany this status affect his behavior in the
society. Accounting has developed a professional
culture as evidenced by such factors as the
formal norms of the Code of Ethics, the informal
rules that guide relationships among
practitioners and the traditions and myths that
have arisen concerning the CPA examination.
Further, the Code of Ethics for Professional Accountants
in the Philippines identifies three distinguishing
characteristics of a profession, namely:
A. Mastery of a particular intellectual skill, acquired
by training and education.
B. Adherence by its members to a common code of
values and conduct established by its
administrating body, including maintaining an
outlook which is essentially objective.
C. Acceptance of a duty to society as a whole,
usually in return for restrictions in use of a title or
in the granting of a qualification.
Regulation of the Accounting Profession
The accounting profession is regulated by the following:
A. RA 9298 and its IRR (implementing rules and
regulations).
Republic Act 9298, otherwise known as the
Philippine Accountancy Act of 2004 is the act
regulating the practice of accountancy in the
Philippines which was signed into law on May 13,
2004 repealing Presidential Decree 692, the
Revised Accountancy Law. The act provides and
governs:
 The standardization and regulation of
accounting education.
 The examination of registration of
certified public accountants.
 The supervision, control, and regulation
of the practice of accountancy in the
Philippines.
`
B. Financial reporting standards and engagement
standards established by recognized standards
setting bodies.
C. Adoption of Code of Ethics for CPAs in the
Philippines.
D. Self-regulation by firms through a system of
quality control.
E. Sanctions or penalties against violators of laws,
rules and regulations affecting the accounting
profession.
Note: Any person who shall violate any of the provisions
of RA 9298 or its IRR as promulgated by the BOA subject
to the approval of the PRC, shall, upon conviction, be
punished by a fine of not less P50,000 or by
imprisonment for a period not exceeding 2 years or both.
SCOPE OF ACCOUNTING PRACTICE
The practice of accountancy includes, but is not limited
to, the following:
A. Practice of public accountancy – constitutes a
person (be it his individual capacity or as a staff
member in an accounting or auditing firm)
holding out himself 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 as
such as:
 The audit or verification of financial
transaction and accounting records.
 The preparation, signing or certification for
clients of reports of audit, balance sheet,
and other financial, accounting and related
schedules, exhibits, statement of reports
which are to be used for publication or for
credit purposes, or to be filed with a court
or government agency, or to be used for
any other purposes.
 The design, installation, and revision of
accounting system and controls.
 The preparation of income tax returns
when related to accounting procedures.
 The representation of clients before
government agencies on tax and other
matters relating to accounting
 The rendition of professional assistance in
matters relating to accounting procedures
and the recording and presentation of
financial facts or data.
B. Practice in commerce and industry –
constitutes 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
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, for any business or company
in the private sector which has a paid up capital
of at least P5,000,000 and/or an annual revenue
of at least P10,000,000, duly registered CPAs
should occupy any position 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. This provision shall apply only
to persons to be employed after the effectivity of
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 the IRR. Further, this provision shall not
result to deprivation of the employment of
incumbents to the position.
C. Practice in education or academe –
constitutes in a person in an educational
institution which involve teaching of
accounting, auditing, management
advisory services, finance, business law,
taxation and other technically related
subject.
Members of the Integrated Bar of the
Philippines may be allowed to teach
business law and taxation subjects.
Moreover, 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 or
education and therefore must be occupied
only by a duly registered CPA.
D. Practice in government – constitutes in
a person who holds, or is appointed to, a
position in an accounting professional
group in government or in an government-
owned 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.
A person who passes the CPA board
licensure examination need not take the
Civil Service examination given by the Civil
Service Commission pursuant to CSC
Office Memorandum 4, Series of 2006.
CPAs are not prohibited to practice in more than
one sector or engage in two or more types of
services at the same time, provided that there is
no impairment in the integrity, objectivity or
independence of the CPA.
ORGANIZATIONS AFFECTING THE
ACCOUNTING PROFESSION Several
organizations affect the practice of accounting.
These organizations include government agencies
such as the PRC, PRC-BOA, COA, SEC, BSP, BIR and
IC, standard-setting bodies such as the FRSC and
the AASC, professional organizations such as PICPA
and various international organizations such as the
IOSCO, IASB, IAASB and the IFAC.
GOVERNMENT AGENCIES
 PROFESSIONAL REGULATION COMMISSION
Established on June 22, 1973, the Professional
Regulation Commission (PRC) is a three-man
commission attached to the Office of the President
that:
A. Investigates cases against erring
examinees and professionals. Its decisions
have the force and effect of the decisions
of a court of law with the same level of
authority as a Regional Trial Court.
B. Formulates rules and policies on
professional regulation. When published in
an official gazette, these rules have the
force and effect of law.
C. Administers, implements and enforces the
regulatory policies of the National
Government with respect to the regulation
and licensing of the various professions
under its jurisdiction including the
maintenance of professional standards and
ethics and the enforcement of the rules
and regulations relative thereto.
The Commission has the overall jurisdiction over
the regulatory boards in the Philippines among
which is the Board of Accountancy. It derives its
authority from RA 8981 or the PRC
Modernization Act of 2000.
 PROFESSIONAL REGULATORY BOARD OF
ACCOUNTANCY
The Professional Regulatory Board of
Accountancy (PRC-BOA) is the official government
agency empowered to enforce RA 9298. The body
is under the administrative supervision of the
Professional Regulation Commission.
Composition of the Board
The Board shall be composed of a Chairman and
6 members to be appointed by the President of
the Philippines. The 4 sectors in the practice of
accountancy shall as much as possible be
equitably represented in the Board.
The Board shall elect a Vice-chairman from among
its members for a term of 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.
Nomination and Appointment Process
A. The Accredited National Professional
Organization (APO) of CPAs, currently the
PICPA, shall submit its nominations, 5
nominees for each position, 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 3 nominees for each
vacant position.
B. The Commission in consultation with the
Board shall select 3 nominees from those
recommended by the APO, rank them and
submit such list to the President for
consideration.
C. The President of the Philippines shall
appoint the members of the Board from
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 the list of recommendees submitted by the
Commission.
Qualification of the Members of the Board
A member of the Board shall, at the time of his
appointment, possess the following qualifications:
A. Must be a natural born citizen and a
resident of the Philippines.
B. Must be a duly registered CPA with at least
10 years of work experience in any scope
of practice of accountancy. He shall be
nominated to represent a sector from
which he has considerable and meaningful
professional experience.
C. Must be of good moral character and must
not have been convicted of crimes
involving moral turpitude.
D. 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 be a
member of the faculty or administration
thereof at the time of his appointment to
the Board.
E. Must not be a Director or Officer of the
APO at the time of his appointment.
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 must go on
leave during the pendency of any case involving
himself, his firm, partnership, company or
government office or inhibit himself completely in
all the stages of the proceedings thereof.
Term of Office of the Members of the Board
The Chairman and members of the Board shall
hold office for a term of 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 2 successive complete
terms as Chairman or member shall be eligible for
reappointment as Chairman or member until the
lapse of 1 year. Appointment to fill up an
unexpired term is not to be considered as a
complete term. However, no person shall serve in
the Board for more than 12 years.
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. To prescribe and adopt the rules and
regulations necessary for carrying out the
provisions of RA 9298.
B. To supervise the registration, licensure and
practice of accountancy in the Philippines.
C. To administer oaths in connection with the
administration of RA 9298.
D. To issue, suspend, revoke, or reinstate the
Certificate of Registration for the practice
of the accountancy profession.
E. To adopt an official seal of the Board.
F. To prescribe and adopt a Code of Ethics for
the practice of accountancy.
G. 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.
In this regard, domestic accounting and
auditing standards, rules and regulations
shall include the international accounting
and auditing standards and generally
accepted best practices.
H. 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.
I. To investigate violations of RA 9298 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.
In this regard, 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 APO of CPAs and the Board and the
Commission may adopt their findings of
fact as it may deem fit.
J. 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
RA 9298 any accounting or auditing
standard or rules duly promulgated by the
Board as part of the rules governing the
practice of accountancy.
K. To issue a cease or desist order to any
person, association, partnership or
corporation engaged in violation of any
provision of RA 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.
L. To prepare, adopt, issue or amend the
syllabi of the subjects for examinations 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.
In this regard 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. Note that the
Board does not delegate its power and
function to determine and prepare test
questions for the CPA licensure
examinations. Moreover, 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.
M. 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.
N. 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 CPD
providers offering accounting seminars,
comply with the policies, standards and
requirements of the course prescribed by
CHED or other authorized government
offices or CPD Council as the case may be
in the areas of curriculum, faculty, library
and facilities.
In this regard, the Board and the
Commission may enter into a MOA with
the CHED for the orderly implementation
of this provision.
O. 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.
In carrying out its functions, several councils have
been created to assist the Board namely, the
Education Technical Council (ETC), Quality Review
Committee (QRC) and the PRC Continuing
Professional Development (CPD) Council.
Grounds for Suspension or Removal of
Members
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:
A. Neglect of duty or incompetence.
B. Violation or tolerance of any violation of RA
9298 and its implementing rules and
regulations or the CPA’s Code of Ethics and
the technical and professional standards of
practice for CPAs.
C. Final judgment of crimes involving moral
turpitude.
D. Manipulation or rigging of the CPA’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.
The Commission in the conduct of the
investigation shall be guided by the provisions of
Republic Act 8981, its implementing rules and
regulations and their respective amendments.
 EDUCATION TECHNICAL COUNCIL
The Commission upon the recommendation of the
Board shall, within 60 days from the effectivity of
the IRR to RA 9298, create an Education
Technical Council (ETC) to assist the Board in
carrying out its powers and functions provided in
RA 9298 and to further assist the Board in the
attainment of the objective of continuously
upgrading the accountancy education in the
Philippines to make the Filipino CPAs globally
competitive.
Composition of the Council and Term of
Office of Members
The ETC shall be composed of 7 members with a
Chairman, who had been or presently a senior
accounting practitioner in the academe or
education and 6 representatives from the
following:
Board of Accountancy 1
APO of CPAs (Philippine Institute of CPAs)
Academe 2
Commerce and Industry 1
Government 1
Public Practice 1
The APO shall equitably distribute the
representation of the academe or education sector
among the private and public schools offering the
degree of Bachelors of Science in Accountancy.
The Chairman and members of the ETC shall be
appointed by the Commission upon the
recommendation of the Board in coordination with
the APO. The ETC shall make an annual review of
the composition of the council and may
recommend to the Board and the Commission a
more suitable representation thereto as it may
deem fit. The Chairman and the members of the
ETC shall have a term of 3 years renewable for
another term.
Powers and Functions of the Council
The ETC shall have the following functions:
A. Determine a minimum standard curriculum
for the study of accountancy to be
implemented in all schools offering
accountancy as an undergraduate degree.
B. Establish teaching standards, including the
qualifications of members of the faculty of
schools and colleges of accountancy.
C. Monitor the progress of the program on the
study of accountancy and undertaking
measures for the attainment of a high
quality of accountancy education in the
country.
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 D. Evaluate periodically the performance of
educational institutions offering
accountancy education.
The ETC shall render a report of its findings and
recommendations on the foregoing activities to the
Board. The Board shall review such report and if
found to be meritorious, it shall forward the same
to the Commission which shall make proper
representation with the CHED for its appropriate
consideration.
 QUALITY REVIEW COMMITTEE
The Board, upon approval of the Commission,
created a Quality Review Committee (QRC) to
conduct an oversight into the quality of audit of
financial statements through a review of the
quality control measures instituted by individual
CPAs, firms or partnerships. These reviews are
done in order to ensure compliance with
accounting and auditing standards and practices.
All accredited accounting firms conducting audits
in accordance with the PSAs will undergo the
quality control review of the QRC at least once
every 3 years. The review of the committee is
also a requirement for initial accreditation and
renewal of accreditation.
Composition of the Committee and Term of
Office
The QRC shall be composed of 7 members with a
chairman, who had been or presently a senior
practitioner in public accountancy and 6
representatives from the following:
Board of Accountancy
APO of CPAs (Philippine Institute of CPAs)
Academe
Commerce and Industry
Government
Public Practice
The Chairman and members of the QRC shall be
appointed by the Commission upon the
recommendation of the Board in coordination with
the APO. The QRC shall make an annual review of
the composition of the council and may
recommend to the Board and the Commission a
more suitable representation thereto as it may
deem fit. The Chairman and the members of the
QRC shall have a term of 3 years renewable for
another term.
Powers and Functions of the Committee
The QRC shall have the following powers and
functions:
A. Conduct quality review on applicants for
registration to practice public accountancy
and render a report which shall be
attached to the application for registration.
B. Recommend to the Board the revocation of
the Certificate of Registration and the
professional identification card of an
individual CPA, including any of his staff
members, firms, including the sole
proprietors and any of his staff members
and partnerships of CPAs including the
partners and staff members thereof who
has not observed the quality control
measures and who has not complied with
the standards of quality prescribed for the
practice of public accountancy. In the
event that the QRC cannot accomplish the
aforesaid functions for any reason
whatsoever, the Board or its duly
authorized representatives may conduct
the required quality review.
 QUALITY ASSURANCE REVIEW
DEPARTMENT
In the exercise of its power to conduct an oversight
into the quality of audits, the PRC-BOA, through
BOA Resolution 23, Series of 2007, organized the
Quality Assurance Review Department
(QARD) of the APO to conduct an independent
study, appraisal or review of the quality of audit of
financial statements through a review of through a
review of the quality control measures instituted
by member-CPA practitioners engaged in the
practice of public accountancy to ascertain
compliance with prescribed professional, ethical
and technical standards of public practice.
Executive Committee of the Department
The BOA shall create an Executive Committee
which shall have full power and authority to set
policies and to supervise the operation of QARD.
The Committee shall be composed of 2 members
from the Board and 1 from the APO, as appointed
by their respective governing bodies. The
appointee shall possess high degree of
competence and objectivity.
The following are the duties and responsibilities of
the Executive Committee:
1
A. To set policies that will ensure effective
implementation of the quality assurance
1
review program.
1
B. To monitor the quality of audits through its
1
QARD.
2
C. To maintain independence of the QARD.
D. To hire the Chief Inspector and Chief of
Administration of QARD including other
personnel thereof.
E. To recommend to the Board the Quality
Assurance Review (QAR) plan for the year,
which may be approved by the Board
without referral to the Commission.
F. To implement the approved QAR plan for
the year through the QARD.
G. To obtain independent technical advice on
the subject of quality assurance when
needed and appropriate.
H. To receive and evaluate the reports and
recommendations of the Chief Inspector,
and to resolve whether or not to issue a
Certificate of Quality Assurance
Compliance to the member-CPA
practitioner.
I. Submit regularly to the Board a list of
erring member-CPA practitioners including
the findings and actions taken by the
QARD. The Committee shall likewise
regularly submit to the Board policies that
it adopted and implementing issues that it
settled for the oversight review of the
Board. It shall also report to the Board any
 form of interference by the APO on its
policy making or on QARD’s operation.
J. To issue through the Board, annual reports
for the benefit of the general public.
The Chairman of the Committee shall be from the
Board’s appointees. The Chairman and the
Members shall have a term of 3 years unless
replaced earlier by the Board or APO.
Personnel of the Department
The QARD’s personnel shall be composed of a
Head (the Chief Inspector), the Chief of
Administration, Assistants to the Chiefs, Staff
Auditors and such other employees that may be
necessary to carry out effectively the functions of
the QARD. They shall be appointed by the
Executive Committee and shall be engaged under
a contract of service.
A. Chief Inspector – to be eligible for
appointment as Chief Inspector of the
QARD, a person must have the following
qualifications:
 Must have reached the level of
senior manager or partner of an
accounting firm that has among its
clients publicly listed companies.
 Must be independent from the
practitioners or firms that will be
covered by the QAR Program.
 Must have at least 10 year
experience in audit.
 Must be of good moral character
and has a current license as a CPA.
 Must not have been found guilty of
violating any professional, ethical
and regulatory auditing standards.
 Must have good oral and written
communication skills, being
especially adept at report writing.
The duties and responsibilities of the Chief
Inspector of the QARD follow:
 Exercises administrative supervision
and control over the QARD and over
its personnel as its head.
 Assists the Executive Committee in
determining quality assurance
policies.
 Prepares the QAR review plan for
each year for submission to the
Executive Committee for
consideration.
 Selects the CPA practitioners to be
reviewed for the year, in
accordance with the annual plan.
 Approves the specific inspection
plan for each practitioner selected
for review, which must set forth the
nature, extent and timing of such
work.
 Reviews and approves the
individual inspection reports.
 Has the final authority to approve
all inspection reports.
 Assists the Executive Committee to
prepare its annual report.
 Recommends to the Executive
Committee the appointment and
termination from service of
subordinate QARD personnel as well
as appropriate disciplinary action to
be taken.
 Provides for technical training of
inspection personnel.
 Performs such duties and functions
as the Executive Committee may
assign.
B. Chief of Administration – to be eligible
for appointment as Chief of Administration,
a person must have the following
qualifications:
 Must have appropriate educational
qualification.
 Must have at least 5 years work
experience in human resource
management at supervisory
capacity.
 Must be independent from the
practitioners or firms that will be
covered by the QAR Program.
 Must be of good moral character
and has a current license as a CPA.
 Must not have been found guilty of
violating any professional, ethical
and regulatory auditing standards.
 Must have good oral and written
communication skills, being
especially adept at report writing.
The Chief of Administration is responsible
for the non-technical aspect of the QAR
program. The main duties of the Chief of
Administration include:
 Serves as the administrative officer
of the QARD.
 Supervises the registration of CPA
Practitioners in their respective
categories.
 Supervises the collection of
registration fees.
 Supervises the preparation of the
regular financial reports of the
QARD.
 Supervises the administrative
aspect of training of QARD
personnel.
 Supervises communications to all
practitioners.
 Performs such functions as may
from time to time be assigned by
the Chief Inspector.
C. Staff auditors – the APO, through its
Executive Committee, shall enter into
contracts of service with auditors who shall
be responsible for the field work of a QAR
assignment. They shall be appointed by
the Executive Committee upon the
recommendation of the Chief Inspector.
They shall have the following
qualifications:
 Must have at least 5 year
experience in the statutory or
regulatory audit of companies, or
teaching financial accounting and
practical auditing in a CHED-
Page|6 of 21
 recognized educational institution,
or in the corporate financial 101 to Minima Every 3
B (2) No
200 l years
reporting or internal auditing
function. Minima Every 3
B (3) 51 to 100 No
 Must be of good moral character l years
Minima Every 3
and has a current license as a CPA. B (4) 1 to 50 No
l years
 Must not have been terminated
from employment as an auditor due The CPA practitioner’s registration category should
to incompetence or below average be stated in the certificate of accreditation. In
rating. connection with the registration of CPA
 Must not have been found guilty of practitioners with the QAR program, the following
violating any professional, ethical rules must be observed:
and regulatory auditing standards. A. A CPA practitioner can only register in one
 Must have good oral and written category (highest sub-category) division.
communication skills, being B. CPA practitioner registered under Category
especially adept at report writing. B cannot audit companies that use the full
IFRS or their Philippine equivalent, unless
Coverage of the QAR Program he upgrades his registration to Category A.
The QAR Program covers all CPAs in the public C. A CPA practitioner registered under any of
accounting sector, whether as an individual the sub-categories of Category A must
practitioner, a firm or a partnership. Enrollment in upgrade his registration if he exceeds the
the QAR Program is a pre-requisite for initial as number of clients under the specific sub-
well as renewal of accreditation as a CPA in public category under which he is registered.
practice by the Board of Accountancy. Enrolled CPA D. A CPA practitioner registered under any of
practitioners shall likewise maintain compliance the sub-categories of Category B must
and continuous registration with the QAR Program upgrade his registration if he exceeds the
otherwise, it shall be a ground for the imposition of number of audit reports under the specific
fines or the suspension or revocation of the sub-category under which he is registered.
accreditation of the Board. E. All application for initial as well as renewal
CPA practitioners should be registered in of annual registration must include
accordance with the following risk categories: information as to the number of clients
classified as to public-interest entities
A. Category A – registration for CPA
using full IFRS and small and medium-
practitioners handling clients that use the
sized entities using IFRS for SMEs under
full IFRSs or their Philippine equivalents.
oath to determine the public practitioner’s
These would cover CPA practitioners
appropriate category. The application
auditing public-interest entities (listed and
should be signed by the individual CPA, or
not-listed but with public accountability).
the managing director or head of the firm
Category A is divided into 6 sub-
of partnership provided that the signatory
categories.
shall be liable administratively or
Number criminally for any misrepresentations
List Frequency
Cat. of Risk made under oath.
ed of QAR
Clients
 PRC CONTINUING PROFESSIONAL
50 or DEVELOPMENT COUNCIL
A (1) Yes High Every year
more
Continuing professional development (CPD)
A (2) 26 to 49 Yes High Every year refers to the inculcation, assimilation and
A (3) 1 to 25 Yes High Every year
acquisition of knowledge, skills, proficiency and
ethical and moral values, after the initial
50 or Every 2 registration of a professional that raise and
A (4) No Less
more years enhance the professional’s technical skills and
Every 2 competence. The CPD program has these
A (5) 26 to 49 No Less
years objectives:
Every 2 A. To provide and ensure the continuous
A (6) 1 to 25 No Less
years education of a registered professional with
B. Category B – registration for CPA the latest trends in the profession brought
practitioners handling clients that use the about by modernization and scientific and
IFRS or their Philippine equivalents for technological advancements.
Small and Medium-sized enterprises. B. To raise and maintain the professional’s
Category B is divided into 4 sub- capability for delivering professional
categories. services.
C. To attain and maintain the highest
Number standards and quality in the practice of his
List Frequency profession.
Cat. of Risk
ed of QAR
Clients D. To make the professional globally
B (1) No Minima Every 3 competitive; and
More than
200 l years
 E. To promote the general welfare of the
public.
The CPD program consists of properly planned and
structured activities, the implementation of which
requires the participation of a determinant group
of professionals to meet the requirements of
voluntarily maintaining and improving the
professional standards and ethics of the
profession. Voluntary compliance with the CPD
program is an effective and credible means of
ensuring competence, integrity and global
competitiveness of professionals in order to allow
them to continue the practice of their profession.
CPD was previously known as CPE or continuing
professional education.
Composition of the Council
The Board, upon approval by the PRC, shall create
a PRC CPD Council within 30 days from the
effectivity of IRR to RA 9298, which shall assist the
Board in implementing its CPD program. The PRC
CPD Council shall be composed of a Chairperson
and two members.
The Chairperson of CPD Council shall be chosen
from among the members of the Board by the
members themselves. The first member shall be
the president or, in his absence or incapacity, any
officer chosen by the Board of Directors of PICPA.
The second member shall be the president or, in
his absence or incapacity, any officer of the
organization of deans or department heads of
schools, colleges or universities offering the
degree requiring licensure examination.
In the absence of such organization, the second
member shall be chosen and appointed by the PRC
Chairperson from at least three recommendees of
the Board concerned. Said recommendees shall be
well-known academicians.
The Chairperson of the PRC shall designate or
appoint an official with a rank not lower than
Division Chief who shall act as the Secretary of the
PRC CPD Council. The designated official may
participate in the deliberations of the PRC CPD
Council but shall not vote. The Secretary shall
exercise general supervision and control over the
PRC CPD Council Staff, who shall be selected by
the Chairperson of the PRC from among the
existing personnel of the PRC.
Term of Office of the Members of the Council
The term of office of the Chairperson of the PRC
CPD Council shall be co-terminus with his
incumbency in the PRC. The first member shall
have a term of office co-terminus with his
incumbency as officer of the PICPA while the
second member shall have a term of office co-
terminus with his incumbency as officer of the
organization of deans or heads of departments.
The chairperson, first member and second
member shall continue to function as such in the
PRC CPD Council until the appointment or election
of their respective successors in the Board, PICPA
or organization.
Powers and Functions of the Council
The PRC CPD Council shall, upon a majority vote,
exercise powers and functions which shall include
but shall not be limited to the following:
A. Accept, evaluate and approve applications
for accreditation of CPD providers.
B. Accept, evaluate and approve applications
for accreditation of CPD programs,
activities or sources as to their relevance
to the profession and determine the
number of CPD credit units to be earned
on the basis of the contents of the
program, activity or source submitted by
the CPD providers.
C. Accept, evaluate and approve applications
for exemptions from CPD requirements.
D. Monitor the implementation by the CPD
providers of their programs, activities or
sources.
E. Assess periodically and upgrade criteria for
accreditation of CPD providers and CPD
programs, activities or sources.
F. Perform such other related functions that
may be incidental to implementation of the
CPD programs or policies.
The PRC CPD Council shall hold regular meetings
once a month on dates to be fixed by said Council.
Special meetings may be called by a Chairperson
or upon written request of at least a member of
the PRC CPD Council.
The PRC CPD Council, if the need arises, may
delegate to the PICPA the processing of the
application, keeping of all records for CPD
providers and their respective programs and credit
units earned by each CPA who avail of the CPD
programs and related functions. For this purpose,
the PICPA may create a counterpart CPD Council to
be known as PICPA CPD Council and may ask for
reimbursement of reasonable processing fees
directly from the applicants apart from the
accreditation fee that the such applicants pay
directly to the Commission.
The PICPA CPD Council shall keep separate books
of accounts of its expenses and amounts collected
from the applicants and make a monthly report
thereof to the Commission through the Board. Any
excess collection shall be used exclusively as
working capital of the PICPA for the CPD activities.
Functions of the PRC CPD Council
Chairperson
The PRC CPD Council Chairperson shall have the
following functions:
A. To preside over the meetings of the PRC
CPD Council.
B. To direct or supervise the activities of the
PRC CPD Council.
C. To submit minutes of regular and special
meetings within 30 days from date of said
meetings.
D. To submit annual reports.
E. To issue certificate of registration to CPD
providers found by the Council to be
qualified as well as certificate of
accreditation of programs, activities and
sources.
CPD Requirements for CPAs
Page|8 of 21
 As per BOA Resolution 59, Series of 2012, the total
CPD credit units required for BOA accreditation,
which shall be valid for three years, of registered Book or Monograph 25 51-
accounting professionals shall be 60 credit units >100
-50 100
for 3 years. Such required CPD units may be Single author pp
pp pp
earned by the CPA in any of the three years 40 CU
Two authors 20 CU 30 CU
preceding the year of application for accreditation Three or more 10 CU 20 CU 30 CU
and shall be distributed among 5 thematic areas 5 CU 10 CU 20 CU
as follows:
Enabling laws, rules and regulations 6 ½ of the CU of authorship
Editor
Standards applicable to professional practice 24 category
Ethical, governance and quality practice 10
Environment of the practice 10 Article
1-3 4-6 >6
Development of the person as a professional 10 pp pp pp
Single author
One credit hour of CPD program, activity or source 4 CU 6 CU 8 CU
Two authors
shall be equivalent to one credit unit. 3 CU 4 CU 6 CU
Three or more 2 CU 3 CU 4 CU
Matrix for CPD Programs, Activities or
Sources
Professional journal
5 CU per issue
PROGRAMS CREDIT UNITS editor

SEMINARS or CONVENTION Peer reviewer 2 CU per article

Seminars refer to the gathering of professionals SELF-DIRECTED LEARNING PACKAGE
which shall include, among others, workshops,
Self-directed learning packages refer to learning
technical lectures or subject matter meetings, non-
which uses course manuals or accredited learning
degree training courses and scientific meetings
modules. Accredited learning modules include self-
whereas conventions shall refer to a gathering of
instructional materials or programs which may be in
professionals which shall include, among others,
the form of printed manual, audio and video
conferences, symposia or assemblies for round table
cassette tapes, films, computer-assisted learning
discussions.
(CAL), study kits, learning aids and modules or the
Participant 1 CU per hour use of the information highway. These should
include among others clearly defined objectives,
Resource speaker 5 CU per hour adequate content and an evaluation component for
each module.
Panelist or Reactor 3 CU per hour
Facilitator or 10 CU per complete set of
2 CU per hour Module
Moderator module
Technical paper or
PREPARATION (Residential and Distance Mode) 10 CU per professional
Professional journal
Masteral degree shall refer to a graduate degree or technical article
article
in accountancy, business or related field from a
recognized school, college or university. INVENTIONS
Doctoral degree shall refer to a post graduate 10-30 CU per invention
degree in accountancy, business or related field
from a recognized school, college or university. POSTGRADUATE OR IN-SERVICE TRAINING
Postgraduate or in-service training means
1 CU per academic unit and 30 training or specialization at the post graduate level
Masteral degree additional CU upon completion for a minimum period of one (1) week.
of degree ¼ CU per hour at a maximum of 40 CU per training
2 CU per academic unit and
45 additional STUDY OR OBSERVATION
Doctoral degree 2 CU per day at a maximum of 30 CU per tour
CU upon completion
of degree
PROFESSORIAL CHAIR
AUTHORSHIP 10 CU per chair per year
Authorship refers to the ownership of intellectual
property which includes technical or professional SUCH OTHER ACTIVITIES, PROGRAMS OR
books, instructional materials and the like. Credits SOURCES
earned must be claimed within one (1) year from TO BE RECOMMENDED BY THE COUNCIL AND
the date of publication. APPROVED
BY THE COMMISSION
Research or 10 CU per output
Such as meetings of standard– setting bodies for the
Innovative programs Accountancy Profession (FRSC and AASC) as researcher,
or Creative projects discussant or participant.

5 CU per presentation or 2 CU per meeting
Exemption from CPD Requirements
A. Permanent Exemption
A registered professional shall be
permanently exempted from CPE
requirements upon reaching the age of 65
years old. To avail of this exemption, the
professional must:
 Submit an application for exemption
which should include the full name,
residence address and phone
number of applicant, PRC license
number and employment history
indicating the positions held and the
name and address of employers.
 Submit an authentic or
authenticated copy of birth
certificate. If birth certificate is not
available, a voter’s ID or driver’s
license will do.
B. Temporary Exemption
A registered professional who is working or
practicing his profession or furthering his
studies abroad shall be temporarily
exempted from compliance with CPD
requirement during the period of his stay
abroad, provided that he has been out of
the country for at least two years
immediately prior to the date of renewal.
Any professional availing of this temporary
exemption must:
 Submit an application for temporary
exemption, to include the full name,
residence, address and phone
number of applicant, PRC license
number, degree obtained, college or
university attended, year graduated
and principal area of professional
work.
If employed: position held, name and
address of employer and certificate
of employment. If furthering studies
abroad: certificate of enrollment
from college or university where
presently enrolled.
 Submit original or authenticated
copy of passport, photocopy of
inside front cover, page 2, and the
page/s containing visa of country,
indicating date of arrival/departure.
A temporarily exempt registered
professional shall be allowed to renew his
license without complying with the CPD
requirements upon his accomplishment
and submission of the necessary papers as
previously mentioned and upon payment of
the annual registration fee for 3 years for
as long as he continues to be out of the
country.
Sanctions for Failure to Comply with CPD
Requirements
Unless otherwise exempted, registered CPAs in the
practice of accountancy who have not completed
the CPD requirements provided herein shall not be
allowed to renew their professional licenses. Those
who failed to renew their professional licenses for
a period of 5 continuous years from initial
registration, or from last renewal date shall be
declared delinquent and shall, after due notice,
through the website and publication in the
newsletters of PICPA or any newspaper of general
circulation, be dropped from the roster of CPAs.
 COMMISSION ON AUDIT
The Commission on Audit (COA) is the supreme
audit institution in the Philippines. It is the highest
and final authority in state auditing. Being one of
the three Constitutional Commissions along with
the Commission on Elections and the Civil Service
Commission, its jurisdiction and responsibility is
defined by the 1987 Philippine Constitution.
The Commission conducts a comprehensive audit
that includes financial, compliance and
performance audits. It is not the internal auditor of
the government rather it is the sole external
auditor of all government departments and
agencies, including government owned or
controlled corporations.
Composition of the Commission and Term of
Office
The Constitution provides that the Commission
shall be composed of a Chairman and 2
commissioners, collectively called the
“Commission Proper” who shall be natural born-
citizens of the Philippines and at the time of their
appointment, at least 35 years of age, CPA with
not less than 10 years of auditing experience or
members of the Philippine Bar who have been
engaged in the practice of law for at least 10 years
and must not have been candidates for any
elective position in the elections immediately
preceding their appointment. Further, at no time
shall all members of the Commission belong to the
same profession.
The Chairman and the Commissioners shall be
appointed by the President with the consent of the
Commission on Appointments for a term of 7
years without reappointment.
 SECURITIES AND EXCHANGE COMMISSION
Created in 1936, the Securities and Exchange
Commission (SEC) is the government agency
that regulates the registration and operation of
corporations, partnership and other forms of
associations in the Philippines. Its overall objective
is to assist in providing investors with reliable
information upon which to make investment
decisions. In addition, SEC also monitors
compliance with the Corporation Code (Batas
Pambansa Bilang 68), Securities Regulation Code
(RA 8799), Foreign Investments Act (RA 7042) and
other related laws, rules and regulations.
The Commission has considerable influence in
setting generally accepted accounting principles
and disclosure requirements for financial
statements as a result of its authority to specify
reporting requirements considered necessary for
Page|10 of 21
fair disclosure to investors. It is represented in
standard setting bodies and in the QRC of the PRC-
BOA. Further, the SEC has power to establish rules
for any CPA associated with audited financial
statements submitted to the Commission.
The SEC is a member of the International
Organization of Securities Commissions
(IOSCO). Established in 1987, this international
organization regulates the world’s securities and
futures markets. IOSCO consists of more than 100
members which are typically the main financial
regulator from each country. Collectively, its
members represent a substantial proportion of the
world’s capital markets.
Composition of the Commission and Term of
Office
The Commission shall be composed of a
Chairperson and 4 commissioners, appointed by
the President for a term of 7 years each and who
shall serve as such until their successor shall have
been appointed and qualified. A commissioner
appointed to fill a vacancy occurring prior to the
expiration of the term for which his predecessor
was appointed, shall serve only for the unexpired
portion of such term.
The Commissioners must be natural-born citizens
of the Philippines, at least 40 years of age for the
Chairperson and at least 35 years of age for the
commissioners, of good moral character, of
unquestionable integrity, of known probity and
patriotism and with recognized competence in
social and economic disciplines. Further, the
majority of commissioners, including the
chairperson, shall be members of the Philippine
Bar.
The Chairperson is the chief executive officer of
the Commission and shall execute and administer
the policies, decisions, orders and resolutions
approved by the Commission. He shall also have
the general executive direction and supervision of
the work and operation of the Commission and of
its members, bodies, boards, offices, personnel
and all its administrative business.
Powers and Functions of the Commission
The Commission shall have, among others, the
following powers and functions:
A. Have jurisdiction and supervision over all
corporations, partnerships or associations
who are the grantees of primary franchises
or a license or permit issued by the
Government.
B. Formulate policies and recommendations
on issues concerning the securities
market, advise Congress and other
government agencies on all aspects of the
securities market and propose legislation
and amendments thereto.
C. Approve, reject, suspend, revoke or require
amendments to registration statements,
and registration and licensing applications.
D. Supervise, monitor, suspend or take over
the activities of exchanges, clearing
agencies and other self-regulatory
agencies.
E. Regulate, investigate or supervise the
activities of persons to ensure compliance.
F. Impose sanctions for the violation of laws
and the rules, regulations and orders
issued pursuant thereto.
G. Prepare, approve, amend or repeal rules,
regulations and orders, and issue opinions
and provide guidance on and supervise
compliance with such rules, regulations
and orders.
H. Enlist the aid and support of and/or
deputize any and all enforcement agencies
of the Government, civil or military as well
as any private institution, corporation,
firm, association or person in the
implementation of its powers and functions
under the SRC.
I. Issue cease and desist orders to prevent
fraud or injury to the investing public.
J. Punish for contempt of the Commission,
both direct and indirect, in accordance
with the pertinent provisions of and
penalties prescribed by the Rules of Court.
K. Compel the officers of any registered
corporation or association to call meetings
of stockholders or members thereof under
its supervision.
L. Issue subpoena duces tecum and summon
witnesses to appear in any proceedings of
the Commission and in appropriate cases,
order the examination, search and seizure
of all documents, papers, files and records,
tax returns, and books of accounts of any
entity or person under investigation as
may be necessary for the proper
disposition of the cases before it, subject
to the provisions of existing laws.
M. Suspend or revoke, after proper notice and
hearing the franchise or certificate of
registration of corporations, partnerships
or associations, upon any of the grounds
provided by law.
N. 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 the
Commission to achieve the objectives and
purposes of these laws.
Registration of Securities with SEC
Securities shall not be sold or offered for sale or
distribution within the Philippines, without a
registration statement duly filed with and
approved by the SEC. Prior to such sale,
information on the securities, in such form and
with such substance as the SEC may prescribe,
shall be made available to each prospective
purchaser. A record of the registration of securities
shall be kept in a Register of Securities in which
shall be recorded orders entered by the SEC with
respect to such securities. Such register and all
documents or information with respect to the
securities registered therein shall be open to public
inspection at reasonable hours on business days.
The requirement of registration shall not as a
general rule apply to any of the following classes
of securities:
A. Any security issued or guaranteed by the
Government of the Philippines, or by any
political subdivision or agency thereof, or
by any person controlled or supervised by,
and acting as an instrumentality of said
Government.
B. Any security issued or guaranteed by the
government of any country with which the
Philippines maintains diplomatic relations,
or by any state, province or political
subdivision thereof on the basis of
reciprocity.
C. Certificates issued by a receiver or by a
trustee in bankruptcy duly approved by
the proper adjudicatory body.
D. Any security or its derivatives the sale or
transfer of which, by law, is under the
supervision and regulation of the Office of
the Insurance Commission, Housing and
Land Use Regulatory Board or the Bureau
of Internal Revenue.
E. Any security issued by a bank except its
own shares of stock.
Further, the requirement of registration shall not
apply to the sale of any security in any of the 18
following transactions:
A. At any judicial sale, or sale by an executor,
administrator, guardian or receiver or
trustee in insolvency or bankruptcy.
B. By or for the account of a pledge holder, or
mortgagee or any other similar lien holder
selling or offering for sale or delivery in the
ordinary course of business and not for the
purpose of avoiding the provisions of the
Securities Regulation Code, to liquidate a
bona fide debt, a security pledged in good
faith as security for such debt.
C. An isolated transaction in which any
security is sold, offered for sale,
subscription or delivery by the owner
thereof, or by his representative for the
owner’s account, such sale or offer for
sale, subscription or delivery not being
made in the course of repeated and
successive transactions of a like character
by such owner, or on his account by such
representative and such owner or
representative not being the underwriter
of such security.
D. The distribution by a corporation, actively
engaged in the business authorized by its
articles of incorporation, of securities to its
stockholders or other security holders as a
stock dividend or other distribution out of
surplus.
E. The sale of capital stock of a corporation to
its own stockholders exclusively, where no
commission or other remuneration is paid
or given directly or indirectly in connection
with the sale of such capital stock.
F. The issuance of bonds or notes secured by
mortgage upon real estate or tangible
personal property, where the entire
mortgage together with all the bonds or
notes secured thereby are sold to a single
purchaser at a single sale.
G. The issue and delivery of any security in
exchange for any other security of the
same issuer pursuant to a right of
conversion entitling the holder of the
security surrendered in exchange to make
such conversion.
H. Broker's transactions, executed upon
customer's orders, on any registered
Exchange or other trading market.
I. Subscriptions for shares of the capital
stock of a corporation prior to the
incorporation thereof or in pursuance of an
increase in its authorized capital stock
under the Corporation Code, when no
expense is incurred, or no commission,
compensation or remuneration is paid or
given in connection with the sale or
disposition of such securities, and only
when the purpose for soliciting, giving or
taking of such subscriptions is to comply
with the requirements of such law as to
the percentage of the capital stock of a
corporation which should be subscribed
before it can be registered and duly
incorporated, or its authorized capital
increased.
J. The exchange of securities by the issuer
with its existing security holders
exclusively, where no commission or other
remuneration is paid or given directly or
indirectly for soliciting such exchange.
K. The sale of securities by an issuer to fewer
than 20 persons in the Philippines during
any 12 month period.
L. The sale of securities to any number of the
following qualified buyers: bank, registered
investment house, insurance company,
pension fund or retirement plan
maintained by the Government of the
Philippines or any political subdivision
thereof or managed by a bank or other
persons authorized by the Bangko Sentral
to engage in trust functions, investment
company or such other person as the
Commission may by rule determine as
qualified buyers.
 BANGKO SENTRAL NG PILIPINAS
The Bangko Sentral ng Pilipinas (BSP) is the
independent central monetary authority of the
Philippines. The BSP provides policy directions in
the areas of money, banking and credit. It has
supervision over the operations of banks and
exercises such regulatory powers over the
operations of finance companies and non-bank
financial institutions performing quasi-banking
functions and institutions performing similar
functions. Its primary objective is to maintain price
stability conducive to a balanced and sustainable
growth of the economy. It also promotes and
maintains monetary stability and the convertibility
of the peso.
Monetary Board of the Bangko Sentral
The powers and functions of the Bangko Sentral
are exercised by the Bangko Sentral Monetary
Page|12 of 21
Board which is composed of 7 members
appointed by the President of the Philippines for a
term of 6 years. The seven members are:
A. The Governor of the Bangko Sentral who
also serves as the chairman of the
Monetary Board.
The Governor of the Bangko Sentral shall
be head of a department and his
appointment shall be subject to
confirmation by the Commission on
Appointments. Whenever the Governor is
unable to attend a meeting of the Board,
he shall designate a Deputy Governor to
act as his alternate and in such event, the
Monetary Board shall designate one of its
members as acting Chairman.
B. A member of the Cabinet to be designated
by the President.
Whenever the designated Cabinet Member
is unable to attend a meeting of the Board,
he shall designate an Undersecretary in his
Department to attend as his alternate
C. Five members who shall come from the
private sector all of whom shall serve full-
time.
Qualifications of the Members of the
Monetary Board
The members of the Monetary Board must be
natural-born citizens of the Philippines, at least 35
years of age, with the exception of the Governor
who should at least be 40 years of age, of good
moral character, of unquestionable integrity, of
known probity and patriotism, and with recognized
competence in social and economic disciplines.
Further, no member of the Monetary Board may be
reappointed more than once.
 BUREAU OF INTERNAL REVENUE
The Bureau of Internal Revenue (BIR) is the
government agency that aims to raise revenues
for the government though the effective and
efficient collection of taxes. The Bureau is under
the supervision and control of the Department of
Finance and generates the bulk of the country’s
total government revenues.
Composition of the Bureau
The Bureau is principally tasked with the
enforcement of RA 8424 or the National Internal
Revenue Code of 1997. Such law lists the following
BIR officers: Commissioner of Internal Revenue, 4
Deputy Commissioners of Internal Revenue,
Revenue Regional Directors, Revenue District
Officers, Revenue Examiners and Officers, Division
Chiefs of the Bureau and BIR collection agents. The
following are the constituted agents of the BIR
Commissioner:
A. Commissioner of Customs and his
subordinates.
B. Head of appropriate government offices
and his subordinates.
C. Banks duly accredited by the BIR
Commissioner.
The Commissioner of Internal Revenue is the
chief official of the Bureau and is vested the power
to interpret tax laws, decide tax cases, summon
and obtain information or testimony of persons,
make assessments and prescribe additional tax
requirements and delegate powers vested upon
him to the extent allowed by relevant laws.
Powers and Functions of the Bureau
In meeting its responsibility to raise revenue for
the government, the Bureau has the following
powers and functions:
A. To assess and collect all national internal
revenue taxes, fees and charges.
B. To enforce all forfeitures, penalties and
fines connected with the above.
C. To execute judgments in all cases decided
in its favor by the Court of Tax Appeals and
the ordinary courts.
D. To administer, supervise and effect police
powers conferred to it by this Internal
Revenue Code and other laws.
 INSURANCE COMMISSION
The Insurance Commission (IC) is the
government agency that supervises and regulates
the insurance industry (life and non-life
companies, mutual benefit associations and trusts
for charitable uses) for the promotion of national
interest. It also issues licenses to insurance
agents, general agents, resident agents,
underwriters, brokers, adjusters and actuaries. It
has also the authority to suspend or revoke such
licenses. The Commission, as with the BIR, is under
the supervision of the Department of Finance. It is
headed by the Insurance Commissioner who is
assisted by 4 Deputy Commissioners.
STANDARD-SETTING BODIES
 FINANCIAL REPORTING STANDARDS
COUNCIL
The Financial Reporting Standards Council
(FRSC) is the accounting standard setting body
created by the PRC, upon the recommendation of
the BOA, in 2006 to assist the Board in carrying
out its powers and functions. The Council’s main
role is to establish and improve accounting
standards that will be generally accepted in the
Philippines. It has full discretion in developing and
pursuing the technical agenda for setting
accounting standards in the Philippines. The FRSC
is the successor of the Accounting Standards
Council (ASC) which was created in November
1981 by the PICPA to establish GAAP in the
Philippines.
The FRSC is composed of 15 members with a
Chairman, who had been or presently a senior
accounting practitioner in any of the scope of
accounting practice and fourteen representatives
from the following:
Board of Accountancy 1
Securities and Exchange Commission 1
Bangko Sentral ng Pilipinas 1
Bureau of Internal Revenue 1
Major organization of preparers and users of
financial statements (currently the Financial
Executives Institute of the Philippines) 1
Commission on Audit 1
APO of CPAs (Philippine Institute of CPAs)
Academe 2 and Philippine Interpretations approved for
Commerce and Industry 2 adoption are submitted to the BOA and PRC for
Government 2 approval.
Public Practice 2
The Chairman and members of the FRSC have a
term of 3 years renewable for another term.
Philippine Interpretations Committee
In August 2006, the FRSC formed the Philippine
Interpretations Committee (PIC) to assist the
Council in establishing and improving financial
reporting standards in the Philippines. The role of
the PIC is to prepare interpretations of standards
issued by the Council for approval by the Council
and in the context of the Framework to provide
timely guidance on financial reporting issues not
specifically addressed by current standards.
In other words, interpretations are intended to give
authoritative guidance on issues that are likely to
receive divergent or unacceptable treatment
because the standards do not provide specific and
clearcut rules and guidelines.
The PIC replaced the Interpretations
Committee (IC) created by the ASC in May 2000.
The PIC members are appointed by the FRSC and
include accountants in public practice, the
academe and regulatory bodies and users of
financial statements.
Pronouncements of the FRSC
The FRSC issues its standards in a series of
pronouncements called the Philippine Financial
Reporting Standards (PFRSs) which consist of
the following:
A. Philippine Financial Reporting Standards
(PFRSs).
B. Philippine Accounting Standards (PASs).
C. Philippine Interpretations which consist of
Philippine Interpretations – IFRIC,
Philippine Interpretations – SIC and the
Philippine Interpretations Committee Q
and As.
Of these, the PASs and Philippine Interpretation –
SIC are previously issued standards and
interpretation of the ASC that have been adopted
by the FRSC and the PIC, respectively. Prior to the
issuance of PASs, Philippine accounting standards
issued by the ASC were referred to as
Statements of Financial Accounting
Standards (SFASs).
Adoption of International Standards
The FRSC carries on the decision made by the ASC
to converge Philippine accounting standards with
international accounting standards issued by the
IASB. In the past years, most of the Philippine
standards issued are based on American
accounting standards developed by the USA
Financial Accounting Standards Board
(FASB).
The FRSC monitors the technical activities of the
IASB and invites comments on exposure drafts of
proposed IFRSs as these are issued by the IASB.
When finalized, these are adopted as PFRSs.
Similarly, the FRSC monitors issuances of the IFRS
Interpretations Committee of the IASB, which it
adopts as Philippine Interpretations – IFRIC. PFRSs
 INTERNATIONAL ACCOUNTING STANDARDS
BOARD
The International Accounting Standards
Board (IASB), founded on April 2001 is the
foreign counterpart of the FRSC. The IASB is the
independent accounting standard-setting body of
the IFRS Foundation based in London, UK. The
Board’s main objective is to raise the quality and
consistency of financial reporting standards and to
have a platform of high quality and improved
standards. The 15 members of the Board are
responsible for developing and publishing
International Financial Reporting Standards (IFRSs)
and promoting the use and application of these
standards.
The IASB assumed the accounting standard setting
responsibilities of the International Accounting
Standards Committee (IASC), which was
formed in 1973 through an agreement made by
professional accountancy bodies from 10
countries.
IFRS Interpretations Committee
The IFRS Interpretations Committee, formerly
called as the International Financial Reporting
Interpretations Committee (IFRIC), is the official
interpretative body of the IASB. Consisting of 14
members, the Committee is mandated to review
on a timely basis widespread accounting issues
that have arisen within the context of current
IFRSs and to provide authoritative guidance on
those issues. To be operative, the interpretations
of the Committee are to be approved first by the
IASB. The IFRS Interpretations Committee is the
successor of the Standing Interpretations
Committee (SIC) of the IASC.
Standards Advisory Council
The Standards Advisory Council (SAC) is a
group of organizations with an interest in
international financial reporting. It is a body set up
to participate in the standards setting process.
Members are appointed by the IFRS Foundation
which also appoints members to the IASB. The
members are drawn from different geographical
locations and have a wide variety of backgrounds.
The SAC’s role includes advising on priorities
within the IASB’s work program and the IASB is
required to consult with the SAC in advance of any
board decisions on major projects that it wishes to
add to its agenda.
International Financial Reporting Standards
The IFRS Foundation, through the IASB and IFRS
Interpretations Committee, sets out the IFRSs and
their interpretations which consist of the following:
A. International Financial Reporting Standards
(IFRSs).
B. International Accounting Standards (IASs).
C. International Financial Reporting Standards
Interpretations (IFRICs).
D. Standing Interpretation Committee
interpretations (SICs).
Page|14 of 21
 Of these, the IASs and SICs are previously issued to information and
standards and interpretation of the IASC that have other related
service
been adopted by the IASB and the IFRS engagements as
Interpretations Committee, respectively. specified by the
AASC
 AUDITING AND ASSURANCE STANDARDS
COUNCIL
Philippine Framework for Assurance
The Auditing and Assurance Standards Engagements
Council (FRSC) is the auditing standard setting
The Philippine Framework for Assurance
body created by the PRC, upon the
Engagements:
recommendation of the BOA, in December 2005 to
assist the Board in carrying out its powers and A. Provides a frame of reference for
functions. The Council’s main objective is to practitioners and others involved with
promulgate auditing standards, practices and assurance engagements.
procedures which shall become generally accepted B. Describes the objectives and elements of
by the accounting profession in the Philippines. assurance engagements intended to
provide either a high or moderate level of
The AASC is composed of 15 regular members with assurance.
a term of 3 years, renewable for another term,
The Framework does not itself establish standards
coming from the following:
or provide procedural requirements for the
Senior practitioner in an auditing firm (Chairman) 1 performance of assurance engagements. It rather
Association of CPAs in Public Practice (ACPAPP) 1 defines and describes the elements and objectives
Board of Accountancy 1 of an assurance engagement and identifies
Securities and Exchange Commission 1 engagements to which PSAs, PSREs and PSAEs
Commission on Audit 1 apply.
Philippine Institute of CPAs (PICPA)
Academe 1 Philippine Standards and Practice
Commerce and Industry 1 Statements
Government 1 PSAs, PSREs, PSAEs and PSRSs are collectively
Public Practice 7 referred to as the AASC’s Engagement
The AASC replaced the Auditing Standards and Standards. Philippine Standards on Quality
Practices Council (ASPC) established by the Control (PSQCs) are to be applied for all services
PICPA and Association of CPAs in Public Practice. falling under the AASC’s Engagement Standards.
Philippine Standards are applicable to
Pronouncements of the AASC engagements in the public sector. In addition, the
The AASC issues its standards through the AASC issues Philippine Practice Statements to
following pronouncements: serve the following purpose:
A. Provide interpretative guidance and
Related practical assistance to professional
Standards Application Practice accountants in implementing Philippine
Statements Standards.
AASC
B. Promote good practice.
Philippine Professional accountant should be aware of and
Engagements
Standards on
Quality Control
Standards (PSAs, Not applicable consider Practice Statements applicable to the
PSREs, PSAEs, engagement. A professional accountant who does
(PSQCs)
PSRSs) not consider and apply the guidance included in a
Philippine relevant Practice Statement should be prepared to
Philippine Audits of historical
Standards financial
Auditing Practice explain how the basic principles and essential
Statements procedures in the AASC’s Engagement Standards
on Auditing (PSAs) information
(PAPSs) addressed by the Practice Statement have been
Philippine Philippine Review complied with.
Standards Review of Engagement
on Review historical financial Practice
Adoption of International Standards
Engagements information Statements To facilitate preparation by the AASC of its
(PSREs) (PREPSs) pronouncements and to attain uniformity of those
pronouncements with international auditing
Assurance
Philippine standards, the AASC has approved the adoption of
Philippine engagements
Standards on dealing with
Assurance the pronouncements issued by the IAASB.
Engagement
Assurance subject matters
Engagements other than
Practice  INTERNATIONAL AUDITING AND
Statements ASSURANCE STANDARDS BOARD
(PSAEs) historical financial
(PAEPSs)
information The International Auditing and Assurance
Philippine Philippine Related Standards Board (IAASB) functions as an
Compilation
Standards on Services Practice independent standard setting body under the
engagements,
Related Services Statements auspices of the IFAC. The Board works to establish
engagements to
(PSRSs) (PRSPSs) high quality auditing, assurance, quality control
apply agreed-
upon procedures and related services and to improve the uniformity
of practice by professional accountants throughout
the world, thereby strengthening public confidence
in the global auditing profession and serving the
public interest.
The IAASB was founded in March 1978 and was
known until 2002 as the International Auditing
Practices Committee (IAPC). Pronouncements
of the IAASB consist of:
A. International Standards on Auditing (ISAs).
B. International Standards on Assurance
Engagements (ISAEs).
C. International Standards on Review
Engagements (ISREs).
D. International Standards on Related
Services (ISRSs).
E. Practice Statements.
International Federation of Accountants
The International Federation of Accountants
(IFAC) is the global organization for the
accountancy profession. Founded in 1977, IFAC
has, as of November 2012, 173 members and
associates in 129 countries and jurisdictions,
representing more than 2,500,000 accountants
employed in public practice, commerce and
industry, government and the academe. No other
accountancy body in the world and few other
professional organizations have the broad-based
international support that characterizes IFAC.
The IFAC was established to strengthen the
worldwide accountancy profession in the public
interest by:
A. Developing high quality international
standards in auditing and assurance,
public sector accounting, ethics and
education for professional accountants and
supporting their adoption and use.
B. Facilitating collaboration and cooperation
among its member bodies.
C. Collaborating and cooperating with other
international organizations.
D. Serving as the international spokesperson
for the accountancy profession.
In meeting its objective of setting high quality
international standards in auditing and assurance,
public sector accounting, ethics and education for
professional accountants, IFAC has organized the
following standard setting boards aside from the
IAASB:
A. International Public Sector
Accounting Standards Board (IPSASB)
– develops the International Public Sector
Accounting Standards (IPSASs) which are
based on the IFRSs issued by the IASB with
suitable modifications relevant for public
sector accounting.
B. International Accounting Education
Standards Board (IAESB) – develops a
uniform guideline educational syllabus to
be adopted by all its members. The
accounting bodies are required to consider
these educational standards while
formulating their educational systems.
C. International Ethics Standards Board
for Accountants (IESBA) – develops a
model Code of Ethics for Professional
Accountants to be followed by professional
accountants throughout the world.
The IFAC is supervised by the Public Interest
Oversight Board (PIOB) which seeks to improve
the quality and public interest focus of the IFAC
standards in the areas of audit, education and
ethics.
PROFESSIONAL ORGANIZATIONS
 PHILIPPINE INSTITUTE OF CERTIFIED
PUBLIC ACCOUNTANTS
Per RA 9298, all registered CPAs whose names
appear in the roster of CPAs shall be united and
integrated through their membership in a one and
only registered and APO of registered and licensed
certified public accountants. Founded in November
1929 by a group of illustrious pioneers in the
accounting profession, the Philippine Institute
of Certified Public Accountants (PICPA) is the
APO of the PRC. PICPA is a globally recognized and
integrated national organization of Filipino CPAs in
all sectors. Its mission is to enhance the integrity
of the accountancy profession, serve the best
interest of its members and other stakeholders
and contribute to the attainment of the country’s
objectives.
Specifically, PICPA was established with the
following aims and objectives:
A. To enable the accountancy profession to
discharge its public responsibilities more
effectively.
B. To promote and maintain high professional
standards in the accountancy profession.
C. To develop among its members high ideals
of competence, ethical conduct, integrity
and civic consciousness.
D. To foster cordial, harmonious and fruitful
relations among its members.
E. To elevate the standards of accountancy
education.
F. To guard against the practice of the
profession by unauthorized persons or
entities and in general.
G. To protect and enhance the integrity of the
certificate of registration of CPAs.
H. To develop a treaty of friendship among its
members.
As the APO, PICPA is tasked to meet the following
requirements:
A. It is established for the benefit and welfare
of the CPAs, the advancement of their
profession and the attainment of other
professional ends.
B. Its membership is open to all registered
CPAs without discrimination.
C. Its membership shall include CPAs in all
sectors.
D. It shall have a creditable plan to enlist into
active membership within 3 years, at least
a majority of the CPAs in the practice of
accountancy.
E. It shall have adequate chapters/regions in
major areas in the Philippines to effectively
attend to the needs of its members. Its
national directors shall be elected in
Page|16 of 21
 accordance with the provision of the
Corporation Code of the Philippines.
In this regard, national directors should be
representative of the sectors in the regions
of the country. There should only be 1
director coming from a firm/company and
their affiliates. Further, a director can only
represent a sector in a region if he has
been a member in good standing in such
sector in the region for at least 2 years at
the time of his nomination. Moreover,
there shall only be fifteen (15) national
directors, unless there is a valid reason to
have additional representation. The 15
national directors shall be apportioned
according to sectors in the four geographic
areas based on the ratio of latest available
number of members in good standing from
those areas.
F. It shall be judicious and prudent in the
management of its financial resources and
for this purpose its chapter/region/national
office and their respective foundation shall
keep proper books of accounts and submit
audited annual financial statements
thereof.
G. It shall have a full time career Executive
Director who shall implement the policies
promulgated by the PICPA Board of
Directors and shall have direct supervision
over the PICPA Secretariat.
H. It is duly registered as a non-stock
corporation or association by the
Securities and Exchange Commission
(SEC).
I. It has paid the prescribed accreditation
fee.
The PICPA must renew its Certificate of
Accreditation once every 3 years.
Organizational Structure of the PICPA
The PICPA is a registered non-stock corporation
with geographical divisions, regions and chapters
all over the country. Geographical areas, regions
and chapters do not have juridical personality
separate and distinct from each other or from the
National Office. The PICPA organization consists of
the National Office (supported by a national
secretariat), the geographical area, regions, the
chapters and the general membership.
The National Office is under the management of
officers elected by the members of the Board
themselves, headed by the President, the
Executive Vice President, the Vice President for
Commerce and Industry, Education, Government
and Public Practice, the Vice President for
Operations, the Secretary, the Assistant Secretary,
the Treasurer and the Assistant Treasurer.
The composition of the Board is 21 from the 9
regions and 4 from the sectors. Regional
directors are elected regionally – 4 from Metro
Manila and two each from each of the remaining
regions. Sectoral directors are voted nationally,
one coming from each sector. The President is
elected annually but rotated among the regional
directors from Metro Manila, Luzon, Visayas and
Mindanao and to the extent practicable, among
the four sectors of the profession.
The PICPA recognizes the 4 sectors by which a CPA
may be in practice. The PICPA endeavors to have
equal sectoral representations in all its offices from
the National Office to its chapters and affiliates.
Each regional unit elects 4 regional sectoral
representatives who are tasked with the
professional development of each particular sector
through participation in an accredited CPD
program. The geographical area office and regional
councils are under uniform rules prescribed by the
National Board of Directors.
Each geographical area consists of regions and
each region consists of chapters, except Metro
Manila or the National Capital Region which is
designated as geographical and regional as well.
Each province or city may establish their
respective chapter, except Metro Manila which is
as already designated under the By Laws. It is the
joint responsibility of both the National and the
geographical and the regional officers to promote
and assist in developing chapters.
The four geographical areas and the regions
included under each geographical area are as
follows:
A. National Capital Region or the Metro
Manila Geographical Area – Northern
Metro Manila, Southern Metro Manila,
Eastern Metro Manila and Western Metro
Manila.
B. Luzon Geographical Area – Northern
Luzon, Central Luzon, Southern Tagalog
and Bicol.
C. Visayas Geographical Area – Eastern
Visayas and Western Visayas.
D. Mindanao Geographical Area – Northern
Mindanao and Southern Mindanao.
Each region, sector and chapter has their own
governing council. Through the regional and
sectoral councils, both the sectors and the regions
are represented in the National Board. Chapters,
on the other hand, are represented in the Regional
Councils through Chapter Presidents.
The National Office, the sectors and the regions
are supported by committees which are formed to
undertake specific activities. There is no specific
limit as to the number of committees that can be
established.
The National Office sets the overall directions and
policies, and each sector identifies the specific
professional needs and plans the current and
future directions accordingly. At their respective
levels, the regions and the chapters take care of
implementing the Institute’s policies and projects
as determined or planned by the sectors. The
committees provide the necessary services and
support to undertake the planned activities or
projects.
Affiliate units located in other countries are
recognized after complying with the requirements
of the National Office and upon approval of the
National Board of Directors.
Seminars and Publications of the PICPA
Seminars are regularly organized by PICPA on
varied technical subjects such as auditing,
taxation, management services, accountancy
education and similar topics conducted by
outstanding lecturers and speakers. Attendance to
CPD provides opportunity to make valuable
contacts with fellow members for a mutually
beneficial exchange of ideas and experiences and
to earn CPD credits.
The monthly Accounting Times and quarterly
Accountants’ Journal are distributed or mailed
by the PICPA to its members. The Accounting
Times carries a newspaper format and reports on
new developments in the profession as well as on
activities and trends within the organization. The
Journal, on the other hand, contains higher level
technical insights and formal papers written by
distinguished experts in their field.
PICPA also regularly disseminates exposure drafts
and publishes bulletins and pronouncements
released by the Financial Reporting Standards
Council (FRSC) and the Auditing and Assurance
Standards Council (AASC).
PICPA in the International Scene
Through PICPA, the country is actively represented
in the world’s major accounting bodies. Foremost
among these international organizations is the
IFAC. Another organization is the Confederation of
Asian and Pacific Accountants (CAPA), which seeks
the development of a coordinated regional
accounting profession with harmonized standards.
Finally, there is the ASEAN Federation of
Accountants (AFA), which strives to work together
in a spirit of cooperation with the ASEAN region’s
varied groups, whose economic efforts may be
complemented by the accountancy profession.
PICPA had assumed the overall leadership of these
organizations in a number of times and has been
taking active roles in the pursuit of their respective
goals.
 SECTORAL ORGANIZATIONS
The other professional organizations that
complement PICPA’s objectives and provide
specific professional development and other
requirements of CPAs in different sectors are:
A. Association of CPAs in Public Practice
(ACPAPP).
B. Association of CPAs in Education (ACPAE).
C. Association of CPAs in Commerce and
Industry (ACPACI).
D. Government Association of CPAs (GACPA).
REQUIREMENTS TO OBTAIN A CERTIFICATE OF
REGISTRATION
No person shall practice accountancy in the
Philippines, or use the title “Certified Public
Accountant” or the abbreviated title “CPA”, or
display or use any title, sign, card, advertisement
or other device to indicate such person practices
or offers to practice accountancy, or is a certified
public accountant, unless such person shall have
received from the Board a Certificate of
Registration and be issued a professional
identification card or a valid temporary or special
permit duly issued to him by the Board and the
Commission.
In general, the requirements to obtain a CPA
certificate are to obtain a degree of Bachelor of
Science in Accountancy (BSA) and to pass the CPA
Board Examination administered by the Board.
 DEGREE OF BACHELOR OF SCIENCE IN
ACCOUNTANCY
The program leading to a BSA degree usually lasts
for 4 to 5 years. All private higher education
institutions intending to offer the BSA program
must first secure proper authority from the CHED
in accordance with the existing policies. State
universities and colleges and local colleges and
universities should likewise strictly adhere to
existing policies. CMO No. 3, Series of 2007,
issued by CHED prescribes the minimum curricular
requirements for the BSA program.
All graduates with a Bachelor’s Degree, major in
Accounting shall be allowed to take the CPA
Licensure Examination within 2 years from the
effectivity of RA 9298 or until May 2006 under the
rules and regulations to be promulgated by the
Board subject to the approval by the Commission.
 LICENSURE EXAMINATIONS FOR CPAs
The licensure examination for CPAs is a 4 day
examination covering the following subjects:
Theory of Accounts. Business Law and Taxation,
Management Services, Auditing Theory, Auditing
Problems, Practical Accounting Problems I and
Practical Accounting Problems II.
The BOA, subject to the approval of the PRC, may
revise or exclude any of the subjects and their
syllabi, and add new ones as the need arises.
However, such changes shall not be more often
than every 3 years.
Any person applying for the licensure examination
shall establish the following requisites to the
satisfaction of the BOA that:
A. He is a Filipino citizen.
B. He is of good moral character.
C. He is a holder of the degree of BSA
conferred by a school, college, university,
academy or institute duly recognized and
accredited by the CHED or other
authorized government offices.
D. He has not been convicted of any criminal
offense involving moral turpitude.
The following documents shall be submitted in
support of the above requirements:
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.
Rating in the Licensure Examination
Page|18 of 21
To be qualified as having passed the licensure
examination for accountants, a candidate must
obtain a general average of 75%, with no grades
lower than 65% in any given subject. In the event
a candidate obtains the rating of 75% and above in
at least a majority of subjects, he shall receive a
conditional credit for the subjects passed provided
that a candidate shall take an examination in the
remaining subjects within 2 years from the
preceding examination. 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 shall be considered as failed in the
entire examination.
Any candidate who fails in 2 complete CPA Board
Examinations shall be disqualified from taking
another set of examinations unless he submits
evidence to the satisfaction of the BOA that he
enrolled in and completed at least 24 units of
subjects given in the licensure examination. Such
refresher course shall be offered only by an
educational institution granting a degree of BSA
and 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 BOA.
For the purposes of this provision, the examination
in which the candidate was conditioned together
with the removal examination on the subject in
which he failed shall be counted as one complete
examination.
The BOA shall submit to the PRC the ratings
obtained by each candidate within 10 calendar
days after the examination unless extended for
just cause. Upon the release of the results of the
examination, the PRC shall send by mailing the
rating received by each examinee at his given
address using the mailing envelope submitted
during the examination. Such report of rating may
also be distributed to the successful examinees
during their mass oath taking as new registered
CPAs.
OATH OF PROFESSION, CERTIFICATE OF
REGISTRATION AND PROFESSIONAL
IDENTIFICATION CARD
All successful candidates in the examination shall
be required to take an oath of profession before
any member of the BOA or before any government
official authorized by the PRC or any person
authorized by law to administer oaths. An oath
shall also be required for CPAs admitted in the
practice of accountancy without examination
under reciprocity or other international
agreements.
A certificate of registration shall be issued to
examinees who pass the licensure examination
subject to payment of fees prescribed by the PRC.
Such certificate shall bear the signature of the
Chairperson of the PRC and the Chairman and
members of the BOA, stamped with the official
seal of the PRC and of the BOA, indicating that the
person named therein is entitled to the practice of
the profession with all the privileges appurtenant
thereto. The said certificate shall remain in full
force and effect until withdrawn, suspended or
revoked in accordance with RA 9298.
A professional identification card bearing the
registration number, date of issuance, expiry date,
duly signed by the chairperson of the PRC, shall
likewise be issued to every registrant after having
paid the prescribed fee for the annual registration
for 3 years. The reissuance or renewal of the said
card shall be subject to payment of the annual
registration fees for another and every after 3
years thereafter.
A roster showing the names and place of business
of all registered CPAs shall be prepared and
updated by the BOA and copies thereof shall be
made available to any party as may be deemed
necessary. The BOA, upon approval of the PRC may
delegate the preparation of this roster to the APO.
Moreover, the posting of the roster at the internet
shall be deemed compliance with this requirement.
Refusal to Issue Certificates of Registration
and Professional Identification Card
The BOA shall not register and issue a certificate of
registration and professional identification card to
any successful examinee who:
A. Was convicted by a court of competent
jurisdiction of a criminal offense involving
moral turpitude.
B. Is guilty of immoral and dishonorable
conduct
C. Has unsound mind.
D. Misrepresentation in the application for the
CPA examination.
In the event of refusal to issue certificate for any
reason, the Board shall give the applicant a written
statement setting forth the reasons for such
action, which statement shall be incorporated in
the record of the BOA. Such written statement
shall state the period for the deferment of the
registration if the offense or act committed does
not call for indefinite period or perpetual
deprivation of the chance to register.
Registration shall not be refused and a name shall
not be removed from the roster of CPAs on
conviction for a political offense or for an offense
which shall not, in the opinion of the BOA, either
from the nature of the offense or from the
circumstances of the case, disqualify a person
from practicing accountancy under RA No. 9298.
Suspension and Revocation of Certificates of
Registration and Professional Identification
Card
The BOA have the power, upon due notice and
hearing, to suspend or revoke a practitioner’s
certificate of registration and professional
identification card or suspend him from the
practice of his profession or cancel his special
permit for any of the causes or grounds mentioned
under RA 9298 or for any unprofessional or
unethical conduct, malpractice, violation of any of
the provisions of RA 9298 and its IRR , the CPA‘s
Code of Ethics and the technical and professional
standards of practice for CPAs.
The suspension or revocation of the certificate of
registration and professional identification card of
the offending CPA shall not prejudice his
prosecution for criminal liabilities and meted the
penalties provided in the Revised Penal Code.
Reinstatement, Reissuance and Replacement
of Revoked or Lost Certificates
The BOA may, after the expiration of 2 years from
the date of revocation of a certificate of
registration and upon application and for reasons
deemed proper and sufficient, and after being
convinced of applicant’s remorse and
rehabilitation, reinstate the validity of a revoked
certificate of registration and in so doing, may, in
its discretion, exempt the applicant from taking
another examination. A new certificate of
registration to replace lost, destroyed, or mutilated
certificate may be issued, subject to the rules
promulgated by the BOA and the PRC, upon
payment of the required fees.
FOREIGN CERTIFIED PUBLIC ACCOUNTANTS
Subjects or citizens of foreign countries may be
allowed to practice accountancy in the Philippines
in accordance with the provisions of existing laws,
international treaty obligations including mutual
recognition agreements entered into by the
Philippine government with other countries. A
person who is not a citizen of the Philippines shall
not be allowed to practice accountancy in the
Philippines unless he can prove, in the manner
provided by the rules of court that, by specific
provision of law, the country of which he is a
citizen, subject or national admits citizens of the
Philippines to the practice of the same profession
without restriction.
A foreign CPA or its equivalent, who desires to
practice accountancy in the Philippines through
this reciprocity provision shall initiate the
establishment of reciprocity between his country
or state and the Philippines by presenting or
submitting a letter or any document signed and
under official seal by the appropriate official of his
country or state requesting the Chairman of the
BOA to allow the foreign applicant to practice
accountancy in the Philippines, that by express
provision of the law of his country or state, Filipino
CPAs are allowed to practice accountancy in his
country or state on terms of strict and absolute
equality with the citizens or subjects of said
country or state including the unconditional
recognition of prerequisite degrees issued by
institutions of higher learning duly recognized or
established by the Government of the Republic of
the Philippines attaching or appending thereto an
authentic or authenticated official copy of said law
officially translated in the English language.
If the letter or document and the copy of the law
submitted by the applicant is satisfactory to the
BOA, the foreign applicant shall be allowed to
practice accountancy in the Philippines by
requiring him to file an application and by
submitting the following documents that shall
accompany the application:
A. The original or certified copy of any official
documents issued by the Bureau of
Immigration and Deportation allowing the
applicant to enter and reside in the
Philippines.
B. Present his passport for examination and
for photocopying of pertinent information
about himself.
C. Original or authenticated copy of transcript
of records or equivalent document of the
course for licensure examination issued by
the institution of higher learning where he
studied, duly authorized or accredited by
his country or state.
D. Certificate of registration or its equivalent
stating that the foreign applicant is duly
registered or licensed CPA or its equivalent
in his country or state.
E. Other documents which may be required
to be submitted by the BOA.
If the foreign applicant desires to practice public
accountancy in the Philippines, he has to apply for
accreditation to do so under the rules and
regulations promulgated by the existing rules and
regulations.
Coverage of Temporary or Special Permits
Special or temporary permits may be issued by the
Board subject to the approval of the Commission
and payment of the fees the latter has prescribed
and charged thereof to the following persons:
A. A foreign CPA called for consultation or for
a specific purpose which must meet the
following pre-requisite:
 Such consultation or special purpose,
in the judgment of the BOA, is
essential for the development of the
country.
 His practice shall be limited only for
the particular work that he is being
engaged.
 There is no Filipino CPA qualified for
such consultation or specific
purpose.
B. A foreign CPA engaged as professor,
lecturer or critic in fields essential to
accountancy education in the Philippines
and his engagement is confined to
teaching only.
C. A foreign CPA who is an internationally
recognized expert or with specialization in
any branch of accountancy and his service
is essential for the advancement of
accountancy in the Philippines.
The procedures and documents for the registration
and issuance of temporary or special permits to a
foreign CPA or its equivalent are as follows:
A. A visa and work permit issued by
appropriate government agencies.
B. Within 30 calendar days after his
commission or appointment date, the
commissioning party shall secure an
employment permit from the Department
of Labor and Employment. Thereafter, the
commissioning party shall secure the
temporary or special permit from the
Board subject to the approval by the
Commission.
C. In the absence of any bilateral agreement,
the foreign national shall submit
documentary proof or evidence allowing
Page|20 of 21
 Filipino CPAs to practice the profession in
their home country without any limitation.
D. Sworn statement of the details of foreign
applicant area of specialization which must
be consistent with his expertise.
E. Upon issuance of the temporary or special
permit, the foreign national may become a
member of the APO subject to the rules
and procedures of its membership.
CPA SEAL AND USE OF CPA SEAL
All registered CPAs shall obtain and use a seal of a
design prescribed by the Board bearing the
registrant’s name, registration number and title.
The auditor’s reports shall be stamped with said
seal, indicating therein his current Professional Tax
Receipt (PTR) number, date and place of payment
when filed with government authorities or when
used professionally.
The seal of a CPA shall be circular in form with a
smaller circle within. In the upper portion of the
space between the circles shall be engraved the
name of the individual CPA, firm or partnership as
the case maybe and in the lower portion thereof
shall be engraved the CPA registration number of
the individual CPA, proprietor of the firm and the
signing partner of the partnership. In the middle of
the smaller circle shall be engraved the letters
“CPA”.
The CPA shall be required to indicate the numbers
of his certificate of registration and professional
identification card with its date of issuance and the
duration of validity, including the PTR number
which the city or municipal treasurer shall issue to
the registered CPA upon presentation of his current
professional identification card, on the documents
he signs, uses or issues in connection with the
practice of his profession. Affixing the CPA’s seal
and signature is an indication of compliance by the
CPA to the requisite accounting and auditing
standards and rules.
RULES AND REGULATION FOR THE
ACCREDITATION OF ACCOUNTING TEACHERS
(BOA Resolution 88, Series of 2008)
Taking effect on June 20, 2008, the accreditation
policy for accounting teachers of the BOA applies
to all CPAs involved in the teaching of accounting,
auditing, management services, finance, business
law, taxation and other technically related
subjects. Unless sooner revoked, cancelled or
withdrawn, the Certificate of Accreditation issued
by the PRC to an accounting teacher shall be valid
for 3 years and renewable every 3 years.
The following are the requirements for the
accreditation of accounting teachers:
A. Possession of a relevant master’s degree.
In this regard, any post-graduate degree
program in business, accounting, taxation,
law, education and related fields earned
from any graduate school duly recognized
by the CHED will qualify for this
requirement.
B. Completion of 12 units of relevant
education subjects from the CHED
recognized schools. In this regard, the 12
units of relevant education subjects may
be earned:
 Either from the undergraduate
education program or from a
graduate degree program of any
higher education institute duly
recognized by CHED.
 From in-service or in-house
trainings offered by schools or
training centers.
 From a combination of in-service
trainings and units earned in an
undergraduate or graduate
education programs.
 CPAs who have passed the
Teachers Board Examination and
are already licensed professional
teachers shall be exempt from this
requirement.
C. A total of 3 years meaningful experience in
actual accounting work in the public
practice, commerce and industry or
government sector. In this regard, the 3
year experience is total or cumulative and
not necessarily continuing.
D. Proof that the CPA has undergone
continuing professional development.
Any tenured, full time, full load faculty members
who does not meet the requirements for
accreditation as of June 20, 2008, may be issued a
provisional accreditation which will be valid for a
period not exceeding 3 years unless earlier
withdrawn, revoked, cancelled for cause by the
BOA. Provisional accreditation may be issued only
once and is not renewable. This provision also
applies to returning teachers who have not been
teaching for the last 5 years.