Repealed PD 692 Known As Revised Accountancy Law
Repealed PD 692 Known As Revised Accountancy Law
Objectives:
• The standardization and regulation of accounting education.
• The examination for registration of certified public accountants.
• The supervision, control and regulation of the practice of accountancy in the Philippines.
- Holding himself/herself as one skilled in the knowledge, science and practice of accounting, and
as a qualified person to render professional services as a CPA, or offering or rendering, or both,
to more than one client on a fee basis, or otherwise, services such as:
- One who is involved in decision making requiring professional knowledge in the science of
accounting, as well as the accounting aspects of finance or taxation
- One who represents his/her employer before government agencies on tax and other matters
related to accounting
- One when such employment or position requires the holder to be a CPA involved in supervision
of recording of financial transactions, preparation of financial statements, coordination with
external auditors for f/s audit provided that the business or company where such position exists
has paid –up capital of at least P5M &/or annual revenue of at least P10M provided that it shall
apply to persons to be employed after the effectivity of IRR & provided finally, it shall not deprive
employment of incumbents to this position.
Practice in Education/Academe:
- One who holds or is appointed to, a position in an accounting professional group in government
or in a government-owned and/or controlled corporation, including those performing proprietary
functions, where decision making requires professional knowledge in the science of accounting
Professional Regulatory Board of Accountancy (under the supervision and administrative control
of the Professional Regulation Commission)
Term of office – 3 years renewable for another term, lapse of one (1) year. No person shall
serve the Board for more than twelve (12) years.
1. To prescribe and adopt the rules and regulations necessary for carrying out the provisions of
this Act.
2. To supervise the registration, licensure and practice of accountancy in the Philippines.
3. To administer oaths in connection with the administration of this Act.
4. To adopt an official seal of the Board.
5. To monitor the conditions affecting the practice of accountancy in the Philippines
6. To issue, suspend, revoke or reinstate the Certificate of Registration for the practice of
accountancy.
7. To prescribe and/or adopt a Code of Ethics for the practice of accountancy.
8. To conduct an oversight into the quality of audits of financial statements through a review of the
quality control measures.
9. To investigate violations of this Act and the rules and regulations promulgated hereunder and
for this purpose, to issue summons to violators.
10. 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 promulgated by
the Board.
11. To punish for contempt of the Board, both direct or indirect, in accordance with the pertinent
POLARIS USL 2019
provisions of and penalties prescribed by the Rules of Court.
12. 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 as well as,
administer, correct and release the results of the licensure examination.
13. 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/or CPE providers offering accounting
seminars, comply with the policies, standards and requirements of the course prescribed by
CHED or other authorized government officer of CPE Council as the case may be.
(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.
1. Is a Filipino citizen.
2. Is of good moral character.
3. Is a holder of the degree of Bachelor of Science in Accountancy conferred by a school, college,
academy or institute duly recognized and/or accredited by CHED or other authorized
government offices.
4. Has not been convicted of any criminal offense involving moral turpitude
Passing – a weighted general average of seventy five percent (75%), with no grade lower than
sixty five percent (65%) in any given subject.
Conditional – a weighted average of seventy five percent (75%) and above in at least majority of
subjects.
Report of Rating:
- The Board shall submit to the Commission the ratings obtained by each candidate within ten (10)
days after the examination, unless extended for just cause.
Any candidate who fails in two (2) complete CPA Board Examination shall be disqualified from taking
another set of examinations unless he/she enrolled in and completed at least “twenty four” (24)
units of subject given in the licensure examination.
Oath
All successful candidates in the examination shall be required to take an oath of profession before
any member of the Board or any government official authorized by the Commission or any
person authorized by law to administer oath upon presentation of proof of his/her qualification,
prior to entering upon the practice of the profession.
Shall bear the signature of the Chairperson of the Commission and the chairman and members of
the Board, including that person named therein is entitled to the practice of the profession with
all the privileges appurtenant thereto.
The Board may, after the expiration of two (2) years from the date of revocation and for reasons
deemed proper and sufficient, reinstate the validity of a revoked certificate of registration and in
so doing, may, in its discretion, exempt the applicant from taking another examination.
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All working papers, schedules and memoranda made by a CPA and his staff in the course of an
examination, including those prepared and submitted by the client, incident to or in the course of
examination, by such CPA, except reports submitted by a certified public accountant to a client
shall be treated confidential and privileged and remain the property of such CPA in the absence
of written agreement between the CPA and the client, to the contrary, unless such documents
are required to be produced through subpoena issued by any court, tribunal or governmental
regulatory or administrative body in accordance with Philippine laws.
Circular in form with a smaller circle within and in the upper portion of the space between the circles
shall be engraved the name of the individual CPA, firm and the signing partner of the
partnership and in the middle of the smaller circle shall be engraved the letters “CPA”.
Registration – valid for three (3) years from the date application for accreditation is approved.
Renewal - on or before September 30 on the year of expiry upon compliance of the
requirements.
e.g. If the application of registration of ABC Co., CPAs was approved on April 12, 2014, the
registration shall expire on December 31, 2016 and therefore, it shall file for renewal on or
before September 30, 2016 for the three year period beginning January 1, 2017.
Philippine Accountancy Act of 38
2004
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Registered Name:
1) Name of an individual as printed in his/her CPA certificate.
2) Firm – firm name appearing in the registration documents issued by DTI or any other proper
government offices.
3) Partnership – partnership name as indicated in the current Articles of Partnership and
certificates of registration issued by SEC.
A CPA shall practice only under an individual firm or partnership name allowed in accordance with
Philippine laws and shall not include any fictitious name, indicate specialization or is misleading
as to the type of organization (proprietorship or partnership).
Quality Review
- Quality Review Committee (QRC) is a body created by BOA upon approval of PRC 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 in order to ensure
compliance with accounting and auditing standards and practices.
- QRC shall be composed of a seven (7) member body with a chairman, who had been or
presently a senior practitioner in public accountancy and six representatives from BOA (1) and
Accredited National Professional Organization (5); (2) ACCPAPP, (1) ACPAE, (1) ACPACI, (1)
GACPA
Functions:
1) Conduct quality review on applicants for registration to practice public accountancy and render
a report which shall be attached to the application for registration.
2) Recommend to the Board the revocation of the Certificate of Registration (COR) and
Professional Identification Card (PIC) of an Individual CPA, including any of his/her staff
members, Firms including the sole proprietors and any of his/her staff members.
Foreign Reciprocity
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.
Penal Provision