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
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 only to persons to be employed after the effectivity
of 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 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.
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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
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 Government 1 B.
Public Practice 1 Certificate of Registration and the professional
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.
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 1 resolve whether or not to issue a Certificate of
APO of CPAs (Philippine Institute of CPAs)
Academe 1 practitioner.
Commerce and Industry 1 I. Submit regularly to the Board a list of erring member-
Government 1 CPA practitioners including the findings and actions
Public Practice 2 taken by the QARD. The Committee shall likewise
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.
Recommend to the Board the revocation of the
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:
A. To set policies that will ensure effective
implementation of the quality assurance review
program.
B. To monitor the quality of audits through its QARD.
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
Quality Assurance Compliance to the member-CPA
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
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necessary to carry out effectively the functions of the QARD.  Serves as the administrative officer of the
They shall be appointed by the Executive Committee and QARD.
shall be engaged under a contract of service.  Supervises the registration of CPA
A. Chief Inspector – to be eligible for appointment as Practitioners in their respective categories.
Chief Inspector of the QARD, a person must have  Supervises the collection of registration fees.
the following qualifications:  Supervises the preparation of the regular
 Must have reached the level of senior financial reports of the QARD.
manager or partner of an accounting firm  Supervises the administrative aspect of
that has among its clients publicly listed training of QARD personnel.
companies.  Supervises communications to all
 Must be independent from the practitioners practitioners.
or firms that will be covered by the QAR  Performs such functions as may from time to
Program. time be assigned by the Chief Inspector.
 Must have at least 10 year experience in C. Staff auditors – the APO, through its Executive
audit. Committee, shall enter into contracts of service with
 Must be of good moral character and has a auditors who shall be responsible for the field work of
current license as a CPA. a QAR assignment. They shall be appointed by the
 Must not have been found guilty of violating Executive Committee upon the recommendation of
any professional, ethical and regulatory the Chief Inspector. They shall have the following
auditing standards. qualifications:
 Must have good oral and written  Must have at least 5 year experience in the
communication skills, being especially adept statutory or regulatory audit of companies,
at report writing. or teaching financial accounting and
The duties and responsibilities of the Chief Inspector practical auditing in a CHED-recognized
of the QARD follow: educational institution, or in the corporate
 Exercises administrative supervision and financial reporting or internal auditing
control over the QARD and over its personnel function.
as its head.  Must be of good moral character and has a
 Assists the Executive Committee in current license as a CPA.
determining quality assurance policies.  Must not have been terminated from
 Prepares the QAR review plan for each year employment as an auditor due to
for submission to the Executive Committee incompetence or below average rating.
for consideration.  Must not have been found guilty of violating
 Selects the CPA practitioners to be reviewed any professional, ethical and regulatory
for the year, in accordance with the annual auditing standards.
plan.  Must have good oral and written
 Approves the specific inspection plan for communication skills, being especially adept
each practitioner selected for review, which at report writing.
must set forth the nature, extent and timing Coverage of the QAR Program
of such work.
 Reviews and approves the individual The QAR Program covers all CPAs in the public accounting
inspection reports. sector, whether as an individual practitioner, a firm or a
 Has the final authority to approve all partnership. Enrollment in the QAR Program is a pre-requisite
inspection reports. for initial as well as renewal of accreditation as a CPA in
 Assists the Executive Committee to prepare public practice by the Board of Accountancy. Enrolled CPA
its annual report. practitioners shall likewise maintain compliance and
 Recommends to the Executive Committee continuous registration with the QAR Program otherwise, it
the appointment and termination from shall be a ground for the imposition of fines or the suspension
service of subordinate QARD personnel as or revocation of the accreditation of the Board.
well as appropriate disciplinary action to be CPA practitioners should be registered in accordance with
taken. the following risk categories:
 Provides for technical training of inspection A. Category A – registration for CPA practitioners
personnel. handling clients that use the full IFRSs or their
 Performs such duties and functions as the Philippine equivalents. These would cover CPA
Executive Committee may assign. practitioners auditing public-interest entities (listed
B. Chief of Administration – to be eligible for and not-listed but with public accountability).
appointment as Chief of Administration, a person Category A is divided into 6 sub-categories.
must have the following qualifications:
Number of Frequency of
 Must have appropriate educational Cat.
Clients
Listed Risk
QAR
qualification.
 Must have at least 5 years work experience A (1) 50 or more Yes High Every year
in human resource management at
A (2) 26 to 49 Yes High Every year
supervisory capacity.
 Must be independent from the practitioners A (3) 1 to 25 Yes High Every year
or firms that will be covered by the QAR
Program. A (4) 50 or more No Less Every 2 years
 Must be of good moral character and has A (5) 26 to 49 No Less Every 2 years
a current license as a CPA.
 Must not have been found guilty of violating A (6) 1 to 25 No Less Every 2 years
any professional, ethical and regulatory
auditing standards. B. Category B – registration for CPA practitioners
 Must have good oral and written handling clients that use the IFRS or their Philippine
communication skills, being especially equivalents for Small and Medium-sized enterprises.
adept at report writing. Category B is divided into 4 sub-categories.
The Chief of Administration is responsible for the non-
Number of Frequency of
technical aspect of the QAR program. The main Cat. Listed Risk
Clients QAR
duties of the Chief of Administration include:
B (1) No Minimal Every 3 years

Page|5 of 16
 More than
200
B (2) 101 to 200 No Minimal Every 3 years
B (3) 51 to 100 No Minimal Every 3 years
B (4) 1 to 50 No Minimal Every 3 years
The CPA practitioner’s registration category should be
stated in the certificate of accreditation. In connection with
the registration of CPA practitioners with the QAR program,
the following rules must be observed:
A. A CPA practitioner can only register in one category
(highest sub-category) division.
B. CPA practitioner registered under Category B
cannot audit companies that use the full IFRS or their
Philippine equivalent, unless he upgrades his
registration to Category A.
C. A CPA practitioner registered under any of the sub-
categories of Category A must upgrade his
registration if he exceeds the number of clients
under the specific sub-category under which he is
registered.
D. A CPA practitioner registered under any of the sub-
categories of Category B must upgrade his
registration if he exceeds the number of audit
reports under the specific sub-category under which
he is registered.
E. All application for initial as well as renewal of annual
registration must include information as to the
number of clients classified as to public-interest
entities using full IFRS and small and medium-sized
entities using IFRS for SMEs under oath to determine
the public practitioner’s appropriate category. The
application should be signed by the individual CPA,
or the managing director or head of the firm of
partnership provided that the signatory shall be
liable administratively or criminally for any
misrepresentations made under oath.
 PRC CONTINUING PROFESSIONAL DEVELOPMENT COUNCIL
Continuing professional development (CPD) refers to the
inculcation, assimilation and acquisition of knowledge, skills,
proficiency and ethical and moral values, after the initial
registration of a professional that raise and enhance the
professional’s technical skills and competence. The CPD
program has these objectives:
A. To provide and ensure the continuous education of
a registered professional with the latest trends in the
profession brought about by modernization and
scientific and technological advancements.
B. To raise and maintain the professional’s capability
for delivering professional services.
C. To attain and maintain the highest standards and
quality in the practice of his profession.
D. To make the professional globally competitive; and
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
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The PRC CPD Council Chairperson shall have the following
functions: Book or Monograph 25 -50 51-100 >100
A. To preside over the meetings of the PRC CPD pp pp pp
Single author 20 CU 30 CU 40 CU
Council.
B. To direct or supervise the activities of the PRC CPD Two authors 10 CU 20 CU 30 CU
Council. Three or more 5 CU 10 CU 20 CU
C. To submit minutes of regular and special meetings
within 30 days from date of said meetings. ½ of the CU of authorship
Editor
D. To submit annual reports. category
E. To issue certificate of registration to CPD providers
Article 1-3 4-6 >6
found by the Council to be qualified as well as
pp pp pp
certificate of accreditation of programs, activities Single author 4 CU 6 CU 8 CU
and sources.
Two authors 3 CU 4 CU 6 CU
CPD Requirements for CPAs 2 CU 3 CU 4 CU
Three or more
As per BOA Resolution 59, Series of 2012, the total CPD credit
units required for BOA accreditation, which shall be valid for Professional journal
5 CU per issue
three years, of registered accounting professionals shall be editor
60 credit units for 3 years. Such required CPD units may be
Peer reviewer 2 CU per article
earned by the CPA in any of the three years preceding the
year of application for accreditation and shall be distributed SELF-DIRECTED LEARNING PACKAGE
among 5 thematic areas as follows:
Self-directed learning packages refer to learning which
Enabling laws, rules and regulations 6 uses course manuals or accredited learning modules.
Standards applicable to professional practice 24 Accredited learning modules include self- instructional
Ethical, governance and quality practice 10 materials or programs which may be in the form of
Environment of the practice 10 printed manual, audio and video cassette tapes, films,
Development of the person as a professional 10 computer-assisted learning (CAL), study kits, learning
One credit hour of CPD program, activity or source shall be aids and modules or the use of the information
equivalent to one credit unit. highway. These should include among others clearly
Matrix for CPD Programs, Activities or Sources defined objectives, adequate content and an
evaluation component for each module.
PROGRAMS CREDIT UNITS Module 10 CU per complete set of module
SEMINARS or CONVENTION Technical paper or
10 CU per professional
Seminars refer to the gathering of professionals which Professional journal
or technical article
shall include, among others, workshops, technical article
lectures or subject matter meetings, non-degree
INVENTIONS
training courses and scientific meetings whereas
conventions shall refer to a gathering of professionals 10-30 CU per invention
which shall include, among others, conferences,
symposia or assemblies for round table discussions. POSTGRADUATE OR IN-SERVICE TRAINING
Postgraduate or in-service training means training or
Participant 1 CU per hour specialization at the post graduate level for a minimum
period of one (1) week.
Resource speaker 5 CU per hour
¼ CU per hour at a maximum of 40 CU per training
Panelist or Reactor 3 CU per hour
STUDY OR OBSERVATION
Facilitator or
2 CU per hour 2 CU per day at a maximum of 30 CU per tour
Moderator

PREPARATION (Residential and Distance Mode) PROFESSORIAL CHAIR

Masteral degree shall refer to a graduate degree in 10 CU per chair per year
accountancy, business or related field from a
recognized school, college or university. SUCH OTHER ACTIVITIES, PROGRAMS OR SOURCES
TO BE RECOMMENDED BY THE COUNCIL AND APPROVED
Doctoral degree shall refer to a post graduate degree
BY THE COMMISSION
in accountancy, business or related field from a
recognized school, college or university. Such as meetings of standard– setting bodies for the
Accountancy Profession (FRSC and AASC) as researcher,
1 CU per academic unit and 30 discussant or participant.
Masteral degree additional CU upon completion 5 CU per presentation or 2 CU per meeting
of degree
Exemption from CPD Requirements
2 CU per academic unit and
45 additional A. Permanent Exemption
Doctoral degree
CU upon completion A registered professional shall be permanently
of degree exempted from CPE requirements upon reaching
the age of 65 years old. To avail of this exemption,
AUTHORSHIP the professional must:
Authorship refers to the ownership of intellectual  Submit an application for exemption which
property which includes technical or professional should include the full name, residence
books, instructional materials and the like. Credits address and phone number of applicant, PRC
earned must be claimed within one (1) year from the license number and employment history
date of publication. indicating the positions held and the name
and address of employers.
Research or  Submit an authentic or authenticated copy of
Innovative programs 10 CU per output birth certificate. If birth certificate is not
or Creative projects

Page|7 of 16
 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 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.
Page|8 of 16
 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
Page|9 of 16
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 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
Commerce and Industry 2
Government 2
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
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The FRSC issues its standards in a series of pronouncements A. International Financial Reporting Standards (IFRSs).
called the Philippine Financial Reporting Standards (PFRSs) B. International Accounting Standards (IASs).
which consist of the following: C. International Financial Reporting Standards
A. Philippine Financial Reporting Standards (PFRSs). Interpretations (IFRICs).
B. Philippine Accounting Standards (PASs). D. Standing Interpretation Committee interpretations
C. Philippine Interpretations which consist of Philippine (SICs).
Interpretations – IFRIC, Philippine Interpretations – SIC Of these, the IASs and SICs are previously issued standards
and the Philippine Interpretations Committee Q and and interpretation of the IASC that have been adopted by
As. the IASB and the IFRS Interpretations Committee,
Of these, the PASs and Philippine Interpretation – SIC are respectively.
previously issued standards and interpretation of the ASC
that have been adopted by the FRSC and the PIC,  AUDITING AND ASSURANCE STANDARDS COUNCIL
respectively. Prior to the issuance of PASs, Philippine The Auditing and Assurance Standards Council (FRSC) is the
accounting standards issued by the ASC were referred to as auditing standard setting body created by the PRC, upon
Statements of Financial Accounting Standards (SFASs). the recommendation of the BOA, in December 2005 to assist
Adoption of International Standards the Board in carrying out its powers and functions. The
Council’s main objective is to promulgate auditing
The FRSC carries on the decision made by the ASC to
standards, practices and procedures which shall become
converge Philippine accounting standards with international
generally accepted by the accounting profession in the
accounting standards issued by the IASB. In the past years,
Philippines.
most of the Philippine standards issued are based on
American accounting standards developed by the USA The AASC is composed of 15 regular members with a term of
Financial Accounting Standards Board (FASB). 3 years, renewable for another term, coming from the
following:
The FRSC monitors the technical activities of the IASB and
invites comments on exposure drafts of proposed IFRSs as Senior practitioner in an auditing firm (Chairman) 1
these are issued by the IASB. When finalized, these are Association of CPAs in Public Practice (ACPAPP) 1
adopted as PFRSs. Similarly, the FRSC monitors issuances of Board of Accountancy 1
the IFRS Interpretations Committee of the IASB, which it Securities and Exchange Commission 1
adopts as Philippine Interpretations – IFRIC. PFRSs and Commission on Audit 1
Philippine Interpretations approved for adoption are Philippine Institute of CPAs (PICPA)
submitted to the BOA and PRC for approval. Academe 1
Commerce and Industry 1
 INTERNATIONAL ACCOUNTING STANDARDS BOARD Government 1
Public Practice 7
The International Accounting Standards Board (IASB),
founded on April 2001 is the foreign counterpart of the FRSC. The AASC replaced the Auditing Standards and Practices
The IASB is the independent accounting standard-setting Council (ASPC) established by the PICPA and Association of
body of the IFRS Foundation based in London, UK. The CPAs in Public Practice.
Board’s main objective is to raise the quality and consistency Pronouncements of the AASC
of financial reporting standards and to have a platform of
The AASC issues its standards through the following
high quality and improved standards. The 15 members of the
pronouncements:
Board are responsible for developing and publishing
International Financial Reporting Standards (IFRSs) and Related Practice
promoting the use and application of these standards. Standards Application
Statements
The IASB assumed the accounting standard setting
AASC
responsibilities of the International Accounting Standards Philippine
Engagements
Committee (IASC), which was formed in 1973 through an Standards on
Standards (PSAs, Not applicable
agreement made by professional accountancy bodies from Quality Control
PSREs, PSAEs,
(PSQCs)
10 countries. PSRSs)
IFRS Interpretations Committee Philippine Audits of historical Philippine Auditing
The IFRS Interpretations Committee, formerly called as the Standards financial Practice
International Financial Reporting Interpretations Committee on Auditing (PSAs) information Statements (PAPSs)
(IFRIC), is the official interpretative body of the IASB.
Philippine Philippine Review
Consisting of 14 members, the Committee is mandated to
Standards Review of historical Engagement
review on a timely basis widespread accounting issues that on Review financial Practice
have arisen within the context of current IFRSs and to provide Engagements information Statements
authoritative guidance on those issues. To be operative, the (PSREs) (PREPSs)
interpretations of the Committee are to be approved first by
the IASB. The IFRS Interpretations Committee is the successor Assurance
Philippine
of the Standing Interpretations Committee (SIC) of the IASC. Philippine engagements
Assurance
Standards on dealing with
Standards Advisory Council Engagement
Assurance subject matters
Practice
The Standards Advisory Council (SAC) is a group of Engagements other than
Statements
(PSAEs) historical financial
organizations with an interest in international financial (PAEPSs)
information
reporting. It is a body set up to participate in the standards
setting process. Members are appointed by the IFRS Compilation
Foundation which also appoints members to the IASB. The engagements,
members are drawn from different geographical locations engagements to
and have a wide variety of backgrounds. apply agreed-
Philippine Philippine Related
upon procedures
The SAC’s role includes advising on priorities within the IASB’s Standards on Services Practice
to information and
work program and the IASB is required to consult with the Related Services
other related
Statements
SAC in advance of any board decisions on major projects (PSRSs) (PRSPSs)
service
that it wishes to add to its agenda. engagements as
International Financial Reporting Standards specified by the
AASC
The IFRS Foundation, through the IASB and IFRS
Interpretations Committee, sets out the IFRSs and their Philippine Framework for Assurance Engagements
interpretations which consist of the following:

Page|11 of 16
The Philippine Framework for Assurance Engagements:
A. Provides a frame of reference for practitioners and
others involved with assurance engagements.
B. Describes the objectives and elements of assurance
engagements intended to provide either a high or
moderate level of assurance.
The Framework does not itself establish standards or provide
procedural requirements for the performance of assurance
engagements. It rather defines and describes the elements
and objectives of an assurance engagement and identifies
engagements to which PSAs, PSREs and PSAEs apply.
Philippine Standards and Practice Statements
PSAs, PSREs, PSAEs and PSRSs are collectively referred to as
the AASC’s Engagement Standards. Philippine Standards on
Quality Control (PSQCs) are to be applied for all services
falling under the AASC’s Engagement Standards. Philippine
Standards are applicable to engagements in the public
sector. In addition, the AASC issues Philippine Practice
Statements to serve the following purpose:
A. Provide interpretative guidance and practical
assistance to professional accountants in
implementing Philippine Standards.
B. Promote good practice.
Professional accountant should be aware of and consider
Practice Statements applicable to the engagement. A
professional accountant who does not consider and apply
the guidance included in a relevant Practice Statement
should be prepared to explain how the basic principles and
essential procedures in the AASC’s Engagement Standards
addressed by the Practice Statement have been complied
with.
Adoption of International Standards
To facilitate preparation by the AASC of its pronouncements
and to attain uniformity of those pronouncements with
international auditing standards, the AASC has approved
the adoption of the pronouncements issued by the IAASB.
 INTERNATIONAL AUDITING AND ASSURANCE STANDARDS
BOARD
The International Auditing and Assurance Standards Board
(IAASB) functions as an independent standard setting body
under the auspices of the IFAC. The Board works to establish
high quality auditing, assurance, quality control 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.
Page|12 of 16
 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 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
Page|13 of 16
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
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.
Page|14 of 16
 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 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
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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.
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