Proposed Revisions On The Checklist of Requirements For BOA Accreditation of Individual CPA PDF
Proposed Revisions On The Checklist of Requirements For BOA Accreditation of Individual CPA PDF
AN ACT AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 9298, ENTITLED “AN
ACT REGULATING THE PRACTICE OF ACCOUNTANCY INTHE PHILIPPINES, REPEALING
FOR THE PURPOSE PRESIDENTIAL DECREE NO. 692, OTHERWISE KNOWN AS THE
REVISED ACCOUNTANCY LAW, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES,” REVISING THE COMPOSITON OF THE BOARD OF ACCOUNTANCY TO
CHAIRPERSON AND EIGHT MEMBERS, CREATING THE ACCOUNTANCY REGULATORY
OFFICE AND ACCOUNTING COUNCILS, DEFINING THEIR POWERS AND FUNCTIONS,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Section 1. Short Title. - This act shall be known as the "Revised Philippine
Accountancy Act of 2016"
ARTICLE II
PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY
c) Must be of good moral character and must not have been convicted of
crimes involving moral turpitude; and
Section 9. Powers and Functions of the Board. - The Board shall exercise the
following specific powers, functions and responsibilities:
Section 11. Grounds for Supervision or Removal of Members of the Board. – The
President of the Philippines, upon the recommendation of the Commission, after
the giving the concerned member an opportunity to defend himself in proper
administrative investigation to be conducted by the Commission, may suspend or
remove any member of the following grounds:
ARTICLE III
EXAMINATION, REGISTRATION AND LICENSURE
Section 13. The Licensure Examinations. - All applicants for registration for the
practice of accountancy shall be required to undergo the applicable licensure
examination to be given by the Board in such places and dates as the
Commission may be designate Provided, that the licensure examination shall be
two (2) levels, namely the (1) first level Certified Accountant (“CA”) examination
and (2) the second level Certified Professional Accountants (“CPA”) and
Certified Public Accountants (“CPA”) examination; Provided, that the first
level CA examination is mandatory for the holders of the Accountancy course
or program referred to in Section 14 of this Act who shall practice accountancy;
Provided further, that the second level CPA examination shall be optional for
those who (1) have passed the CA examinations and (2) have gained three
years of meaningful work experience as may be defined in rules and regulations
that shall be issued for this purpose; Provided finally, that there shall be a
specific CPA examination that shall be given for each Accountancy course or
program accredited by the CHED or other authorized government offices.
a) is a Filipino citizen;
Provided that person who is not a citizen of the Philippines may be allowed to
take the Licensure Examination upon completion of the applicable requirements
indicated above and after proving in a manner provided by the Philippine Rules
of Court that, by specific provision of law, the country of which he is a citizen,
subject, or national allows citizens of the Philippines to take the licensure
examination or any other similar process, or to the practice of the profession on
terms of strict and absolute equality with citizens, subjects, or nationals of the
country concerned.
Section 17. Report of Rating. - The Board shall submit to the Commission the
rating obtained by each candidate within ten (10) calendar days after the
examination, unless extended for just cause. Upon the release of the results of
the examination, the Commission shall send by mailing the rating received by
each examinee at his/her given address using the mailing envelop submitted
during the examination or by other means of transmittal that the Board
may recommend to the Commission.
For purposes of this Act, the CA examination in which the candidate was
conditioned together with the removal examination on the subject in which he/she
failed shall be counted as one complete examination.
ARTICLE IV
PRACTICE OF ACCOUTANCY
Section 27. Vested Rights. - Certified Public Accountants Registered When This Law is
Passed. - All certified public accountants registered at the time this law takes effect shall
automatically be registered under the provisions hereof, subject, however, to the
provisions herein set forth as to future requirements. Certificate of
Registration/Professional license held by such persons in good standing shall have the
same license force and effect as though issued after the passage of this Act.
Section 28. Forms of Practice of Public Accountancy. - The practice of public
accountancy can be in the form of a sole practice; professional partnership, including
that with limited liability; and a corporation, the stock holders of which are all licensed
accountants. The Board, with the concurrence of the Commission, shall issue the rules
and regulations to implement the practice of public accountancy in the form of a limited
liability partnership and a corporation.
ARTICLE V
ACCOUNTANCY REGULATORY OFFICE
Section 38. Powers and Functions of the ARO. - The ARO shall exercise the following
specific powers, functions and responsibilities:
a) To prescribe and adopt the rules and regulations necessary for regulating the
accountancy profession and carrying out the provisions of this Act;
h) To investigate violations of this act and the rules and regulations promulgated
hereunder and for the purpose, to issue summons, subpoena and subpoena
ad testificandum and subpoena duces tecum to violator or witness thereof
and compel their documents in connection therewith: Provided, That the ARO
upon approval and concurrence of the Commission may, subject to such
rules and regulations that may be promulgated to implement this section,
delegate the fact-finding aspect of such investigations to the accredited
national professional organization of certified public accountant: Provided,
further, That the ARO and/or the Commission may adopt their findings of fact
as may be seems fit; The ARO may, muto propio in its discretion, may such
investigations as it deem necessary to determine whether any person has
violated any provisions of this law, any accounting or auditing standard or
rules duly promulgated by the ARO as part of the rules governing the practice
of accountancy;
j) To punish for contempt of the ARO , both direct and indirect, in accordance
with the pertinent provision of and penalties prescribed by the Rules of Court;
l) To pursue the development and upliftment of the public practice of the Small
and Medium Practitioners (SMP), including but not limited to the
consolidation, merger of strengthening of the organization of the SMPs
Section 40.. Organization and staffing plan for the ARO. - The organization structure and
the staffing plan of the ARO shall be prepared by the Board of Accountancy. In the
preparation, the Board shall consider the requirements to discharge the functions
prescribed in Section 38. With the concurrence of the Commission, the organization and
staffing plan shall be referred to the Department of Budget and Management for
evaluation and approval thereof.
ARTICLE VI
ACCOUNTANCY COUNCILS
Section 41. Accountancy Councils. - The Financial Reporting Standards Council, ,the
Auditing and Assurance Standard Council, the Public Sector Financial Accounting
Reporting Council, the Accountancy Education Council and the Ethics Standards
Council (“Accountancy Councils”) are created. These Accountancy Councils shall be
under the supervision and administrative control of the Board of Accountancy or any
other government office that the President of the Philippines may designate. Each of the
Advisory Councils shall be headed by a Technical Director whose salary shall be
equivalent to that of the Member of the Board of Accountancy. The composition of the
Councils shall come from the representatives of the APO and various sectoral
organizations as may be prescribed by the Board of Accountancy with the concurrence
of the Commission,
Section 42. Powers and Functions of the Accountancy Councils . - The Accountancy
Councils shall exercise the following specific powers, functions and responsibilities:
Section 43. Organization and staffing plan for the Accountancy Councils. - The
organization structure and the staffing plan of the various Accountancy Councils shall be
prepared by the Board of Accountancy. In the preparation,, the Board shall consider
the requirements to discharge the functions prescribed in Section 42. With the
concurrence of the Commission, the organization and staffing plan shall be referred to
the Department of Budget and Management for evaluation and approval thereof.
Section 44 Appropriations. - The amount needed for the initial implementation of the
ARO and the various Accountancy Councils shall be taken from the current fiscal years
appropriation of the Professional Regulation Commission. Thereafter, the amount
needed for this purpose shall be included in the General Appropriations Act. More ever,
nothing in this Act shall prevent the National Government for allocating funds for the
operations and capital equipment acquisition of the ARO and the various Accountancy
Councils
ARTICLE VII
SPECIAL PROVISIONS
Section 45. Requirement for Licensed Accountant n Audit Committee. The Audit
Committee of publicly listed companies in the Philippines shall be required to include at
least one Licensed Accountant to be a Chairperson or member of Audit Committees of
publicly listed companies in the Philippines.
ARTICLE VIII
PENAL AND FINAL PROVISIONS
Section 46. Penal Provision. - Any person, whether accountant or not, who shall commit
a violation of any of the provisions of this Act or any of its Implementing Rules and
Regulations by himself or through conspiring and abetting with others, shall upon
conviction, be punished by a fine of not less than Five Thousand Pesos (5,000.00)
and/or imprisonment for a period of not less than six (6)r but not more than six (6) years.
Violations include, but are not limited to:
f) Any other violation of this Act or any of its Implementing Rules and
Regulations.
Section 47. Implementing Rules and Regulations. - Within Ninety (90) days after the
effectivity of this Act, the Board, subject to the approval and concurrence of the
Commission and in coordination with the accredited national professional organization of
licensed accountants, shall adopt and promulgate such rules and regulations to carry out
the provisions of this Act and which shall be effective Fifteen (15) days following their
publication in the Official Gazette or in any of the major daily newspaper of general
circulation.
Section 48. Enforcement of this Act. - It shall be primary duty of the Commission and the
Board, ARO and the Accountancy Councils to enforce the provisions of this Act. All duly
constituted law enforcement agencies and officers of national, provincial, city or
municipal government or of any political subdivision thereof, shall upon the call or
request of the Commission, the Board, ARO and Accountancy Councils , render
assistance in enforcing the provisions of this Act and to prosecute any person violating
the provisions of the same.
Section 50. Separability Clause. - If any clause, provisions, paragraph or parts thereof
shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or
impair any other part hereof, but shall be merely confined to the clause, provisions,
paragraph or part directly involved in the controversy in which such judgment has been
rendered.
Section 51. Amendatory Clause. – Republic Act No. 9298 is hereby amended and all
other laws, orders, rules and regulations or resolutions or part/s thereof inconsistent with
the provisions of this Act are hereby repealed or modified accordingly.
Section 27. Separability Clause. - If any clause, provision, paragraph or part thereof
shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or
impair any other part hereof, but shall be merely confined to the clause, provisions,
paragraph or part directly involved in the controversy in which such judgment has been
rendered.
Section 28. Amendatory Clause. – Republic Act N. 9298 is hereby amended and all
other laws, orders, rules and regulations or resolutions or part/s thereof
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
Section 29. Implementing Rules and Regulations. - Within Ninety (90) days
after the effectivity of this Act, the Board, subject to the approval and concurrence of the
Commission and in coordination with the accredited national professional organization of
licensed accountants, shall adopt and promulgate such rules and regulations to carry out
the provisions of this Act and which shall be effective Fifteen (15) days following their
publication in the Official Gazette or in any of the major daily newspaper of general
circulation.
Section 30. Effectivity. - This Act shall take effect after Fifteen (15) days
following its publication in the Official Gazette or in any major daily newspaper of
general circulation.