Under What Conditions May A Foreigner Be Allowed T

1.
Under what conditions may a foreigner be allowed to practice accountancy in the

Philippines?
Foreign certified public accountant may practice his/her bringing in the Philippines provided
he/she be issued a special/temporary permit by the Board of Accountancy subject to the
approval of the Professional Regulatory Commission, and payment of the necessary fees and
for the sole purpose stated in Section 35, Article IV of Republic Act 9298, otherwise known
as the “Philippine Accountancy Act of 2004”: he/she is called for consultation that is
essential for the development of the country and no Filipino CPA is qualified for such
consultation. A foreign CPA is engaged as professor, lecturer or critic in fields essential to
accountancy education in the Philippines and his/her engagement is confined to teaching
only and he/she who is an internationally recognized expert or with specialization in any
branch of accountancy and his/her service is essential for the advancement of accountancy
in the Philippines.
2. What is due care and how does it affect auditor's liability?
Due care is the “prudent person” concept. This simply implies that the auditor must possess
the requisite skills to evaluate accounting entries. The auditor has a duty to employ such skill
with reasonable care and diligence. The auditor undertakes his task(s) with good faith and
integrity but is not infallible. The auditor may be liable for negligence, bad faith, or
dishonesty, but not for mere errors in judgment.
3. Under what circumstances can an auditor be criminally liable for the result of an audit?
The Companies Bill recently passed in the Legislative Council renders auditors criminally
liable if they knowingly or recklessly omit certain information from their reports. The
criminal liabilities of an auditor under companies act are for false record, false statement,
willful default, furnishing false income, false report and Indian penal code. In addition Under
common law, an auditor can be held liable to its clients for negligence, gross negligence,
constructive fraud, and fraud. Due to the substantive amount of damages that a
client can collect in a tort action, clients of auditors would be well advised to gear into tort
claims rather than contractual ones.
4. What do the principles of the Code imply about a CPA's obligation toward the public
interest?
CPA’s are licensed and regulated by their state boards of accountancy. Additionally, all AICPA
members are required to follow a rigorous Code of Professional Conduct which requires that
they act with integrity, objectivity, due care, competence, fully disclose any conflicts of
interest, maintain client confidentiality, disclose to the client any commission or referral
fees, and serve the public interest when providing financial services. The vast majority of
state boards of accountancy have adopted the AICPA Code of Professional Conduct within
their state accountancy laws or have created their own.
5. Why do the ethical requirements of the CPA profession differ from other professions?
The ethical requirements for CPA’s are similar to the ethical requirements of other
professions. All professionals are expected to be competent, perform services with due
professional care, and recognize their responsibility to clients. However, the major
difference between other professional groups and CPA’s is independence. Because CPA’s
have a responsibility to financial statement users, it is essential that auditors be independent
in fact and appearance. Most other professionals, such as attorneys, are expected to be an
advocate for their clients.
Sources:
https://www.manilatimes.net/2019/09/15/legal-advice/dearpao/can-a-foreign-certified-
public-accountant-practice-in-ph/616461/
https://corporatefinanceinstitute.com/resources/knowledge/accounting/legal-liability-of-
auditors/#:~:text=Due%20care%20generally%20implies%20four,integrity%20but%20is
%20not%20infallible
https://findanyanswer.com/in-what-circumstances-may-an-auditor-be-criminally-
liable#:~:text=The%20Companies%20Bill%20recently%20passed,certain%20information
%20from%20their%20reports.
https://www.aicpa.org/interestareas/personalfinancialplanning/resources/practicecenter/pr
ofessionalresponsibilities.html
https://quizlet.com/71900823/acc-455-chapter-4-professional-ethics-flash-
cards/#:~:text=The%20ethical%20requirements%20for%20CPAs,ethical%20requirements
%20of%20other%20professions.&text=The%20major%20difference%20between
%20other,independent%20in%20fact%20and%20appearance.

Under What Conditions May A Foreigner Be Allowed T

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Under What Conditions May A Foreigner Be Allowed T

Uploaded by

Copyright:

Available Formats

1.

Under what conditions may a foreigner be allowed to practice accountancy in the

You might also like