Republic Act No.

9298
Republic of the Philippines

Congress of the Philippines

Metro Manila

Twelfth Congress

Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-eighth day of July, two thousand

three.

[REPUBLIC ACT NO 9298]

AN ACT REGULATING THE PRACTICE OF ACCOUNTANCY IN THE PHILIPPINES,

REPEALING FOR THE PURPOSE PRESIDENTIAL DECREE NO 692, OTHERWISE KNOWN

AS THE REVISED ACCOUNTANCY LAW, APPROPRIATING FUNDS THEREFOR AND FOR

OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

ARTICLE I

TITLE, DECLARATION OF POLICY, OBJECTIVE

AND SCOPE OF PRACTICE

SECTION 1 Short Title – This Act shall be known as the “Philippine Accountancy Act of

2004.”
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SEC 2 Declaration of Policy – The State recognizes the importance of accountants in

nation building and development Hence, it shall develop and nurture competent,

virtuous, productive and well rounded professional accountants whose standards of

practice and service shall be excellent, qualitative, world class and globally competitive

through inviolable, honest, effective, and credible licensure examinations and through

regulatory measures, programs and that foster their professional growth and

development.

SEC 3 Objectives – This act shall provide for and govern:

(a) The standardization and regulation of accounting education;

(b) The examination for registration and certified public accountants; and

(c) The supervision, control and regulation of the practice of accountancy in the

Philippines.

SEC 4 Scope of Practice – The practice of accountancy shall include, but not limited to

the following:

(a) Practice of Public Accountancy – shall constitute in a person, be it his/her individual

capacity, or as a partner or as a staff member in an accounting or auditing firm, holding

out himself/herself 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 such as the audit or verification of financial transaction and

accounting records; or the preparation, signing, or certification for clients of reports of

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audit, balance sheet, and other financial, accounting and related schedules, exhibits,

statements or 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 purpose; or the

design, installation, and revision of accounting system; or the preparation of income tax

returns when related to accounting procedures; or when he/she represents clients

before government agencies on tax and other matters related to accounting or renders

professional assistance in matters relating to accounting procedures and the recording

and presentation of financial facts or data.

(b) Practice and Commerce and Industry – shall constitute in a person involved in

decision making requiring professional knowledge in the science of accounting, or when

such employment or position requires that the holder thereof must be a certified public

accountant.

(c) Practice in Education/Academe – shall constitute in a person in an educational

institution which involve teaching of accounting, auditing, management advisory

services, finances, business law, taxation and other technically related subjects:

Provided that members of the Integrated Bar of the Philippines may be allowed to teach

business law and taxation subjects.

(d) Practice in the Government – shall constitute in a person 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 in accounting, or where a civil service eligibility as a certified public accountants

is a prerequisite.
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ARTICLE II

PROFESSIONAL REGULATORY BOARD OF ACCOUNTING

SEC 5 The Professional Regulatory Board of Accountancy and its Composition – The

Professional Regulatory Board of Accountancy, hereinafter referred to as the Board,

under the supervision and administrative control of the Professional Regulation

Commission, hereinafter referred to as the Commission, shall be composed of a

chairman and six (6) members to be appointed by the President of the Philippines from

a list of three (3) recommendees each position and ranked by the Commission, from list

of five (5) nominees for each position submitted by the accredited national professional

organization of certified public accountants The board shall elect a vice-chairman from

among its members for a term of one (1) year 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.

SEC 6 Qualification of members of the Professional Regulatory Board – A member of the

board shall, at the time of his/her appointment, possess the following qualifications:

(a) Must be a natural born citizen and a resident of the Philippines;

(b) Must be a duly registered Certified Public Accountant with at least ten (10) years of

work experience in any scope of practice of accountancy;

(c) Must be a good moral character and must not have been convicted of crimes

involving moral turpitude; and

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(d) Must not have any pecuniary interested, directly or indirectly, in any schools, 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/she be a member of the

faculty or administration thereof at the time of his/her appointment to the Board.

SEC 7 Term of Office – The chairman and members of the board shall hold office for a

term of three years Any vacancy occurring within the term or a member shall be filled up

for the unexpired portion of the term only No person who has served two (2) successive

complete terms shall be eligible for reappointment until the lapse of one (1) year

Appointment to fill-up an expired term is not to be considered as a complete term.

SEC 8 Compensation and Allowances of the Board – The chairman and members of the

board shall receive compensation and allowances comparable to that being received by

the chairman and members of existing regulatory boards under the commission as

provided for in the General Appropriations Act.

SEC 9 Powers and Functions of the Board – The board 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 this Act;

(b) To supervise the registration, licensure and practice of accountancy in the

Philippines;

(c) To administer oaths in connection with the administration of this Act;

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(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/or adopt a Code of Ethics for the practice of accountancy;

(g) To monitor the condition 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: Provided,

That 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 financial statements through a

review of the quality control measures instituted by auditors in order to it sure

compliance with the accounting and auditing standards and practices;

(i) To investigate violations of this act and 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 hearing in the productions of documents in connection therewith:

Provided, That the Board upon approval of the commission may, subject to such rules

and regulations that may be promulgated to implement this SEC, delegate the fact

finding aspect of such investigations to the accredited national professional

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organization of certified public accountants: Provided, further, that the Board or the

commission may adopt their findings of fact as it may seems fit;

(j) The Board may motu proprio in its discretion, make such investigations as it deems

necessary to determine whether any person has violated any provisions of this law, any

accounting or auditing standards 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 this Act, 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 punish for contempt of the Board, both direct and indirect in accordance with the

pertinent of the penalties prescribed by the Rules of Court;

(m) 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;

(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 comply with the policies, standards and requirements of the course

prescribed by CHED or other authorized government offices in the areas of curriculum,

faculty, library and facilities; and

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(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 this Act.

The policies, resolutions, rules and regulations, issued as 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.

SEC 10 Administrative, Supervisions of the Board, Custodian of its Records, Secretariat

and Support Services – The Board shall be under the administrative supervision of the

Commission All records of the Board, including applications for examination and

administrative and other investigative cases conducted by the Board shall be under the

custody of the Commission The Commission shall designate the secretary of the Board

and shall provide the secretariat and other support services to implement the provisions

of this Act.

SEC 11 Grounds for Suspension or Removal of Members of the Board – 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;

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(b) Violation or tolerance of any violation of this Act and its implementing rules and

regulations or the Certified Public Accountant’s Code of Ethics and the technical and

professional standards of practice for Certified Public Accountants;

(c) Final judgment of crimes involving moral turpitudes; and

(d) Manipulation or rigging of the certified accountants 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.

SEC 12 Annual Report – The Board shall, at the close of each calendar year, submit an

annual report to the President of the Philippines through the Commission giving a

detailed account of its proceedings and accomplishments during the year and making

recommendations for the adoption of measures that will upgrade and improve the

conditions affecting the practice of accountancy in the Philippines.

ARTICLE III

EXAMINATION, REGISTRATION AND LICENSURE

SEC 13 The Certified Public Accountant Examinations – All applicants for registration for

the practice of accountancy shall be required to undergo a licensure to be given by the

Board in such places and dates as the Commission may designate subject to

compliance with the requirements prescribed by the Commission in accordance with

Republic Act No 8981.

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SEC 14 Qualifications of Applicants for Examinations – Any person applying for

examination shall establish the following requisites to the satisfaction of the Board that

he/she:

(a) is a Filipino citizen;

(b) is of good moral character;

(c) 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 the CHED or

other authorized government offices; and

(d) has not been convicted of any criminal offense involving moral turpitude.

SEC 15 Scope of Examination – The licensure examination for certified public

accountants shall cover, but are not limited to the following subjects:

(a) Theory of Accounts

(b) Business Law and Taxation

(c) Management Services

(d) Auditing Theory

(e) Auditing Problems

(f) Practical Accounting Problems I

(g) Practical Accounting Problems II

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The Board, subject to the approval of the Commission, may revise or exclude any of the

subjects and their syllabi, and add new ones as the need arises.

SEC 16 Rating in the Licensure Examination – To be qualified as having passed the

licensure examination for accountants, a candidate must obtain a general average of

seventy-five percent (75%), with no grades lower than sixty-five percent (65%) in any

given subject In the event a candidate obtains the rating of seventy-five percent (75%)

and above in at least a majority of subjects as provided for in this Act, he/she shall

receive a conditional credit for the subjects passed: Provided, That a candidate shall

take an examination in the remaining subjects within two (2) years from the preceding

examination: Provided, further, That if the candidate fails to obtain at least a general

average of seventy-five percent (75%) and a rating of at least sixty-five percent (65%) in

each of the subjects reexamined, he/she shall be considered as failed in the entire

examination.

SEC 17 Report of Ratings – The Board shall submit to the Commission the ratings

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 envelope submitted during the examination.

SEC 18 Failing Candidates to Take Refresher Course – Any candidate who fails in two (2)

complete Certified Public Accountant Board Examinations shall be disqualified from

taking another set of examinations unless he/she submits evidence to the satisfaction

of the Board that he/she enrolled in and completed at least twenty-four units of subject

given in the licensure examination.

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For purposes of this Act, the 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.

SEC 19 Oath – All successful candidates in the examination shall be required to take an

oath of profession before an member of the Board or before any government official,

authorized by the Commission or any person authorized by law to administer oaths

upon presentation of proof of his/her qualification, prior to entering upon the practice of

the profession.

SEC 20 Issuance of Certificates of Registration and Professional Identification Card – A

certificate of registration shall be issued to examinees who pass the licensure

examination subject to payment of fees prescribed by the Commission The Certificate

of Registration shall bear the signature of the chairperson of the Commission and the

chairman and members of the Board, stamped with the official seal of the Commission

and of the Board, 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

this Act.

A Professional Identification Card bearing the registration number, date of issuance,

expiry date, duly signed by the chairperson of the Commission, shall likewise be issued

to every registrant renewable every three (3) years.

SEC 21 Roster of Certified Public Accountants – A roster showing the names and place

of business of all registered certified public accountant shall be prepared and updated
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by the Board, and copies thereof shall be made available to any party as may be deemed

necessary.

SEC 22 Indication of Certificate of Registration, Identification Card and Professional Tax

Receipt – The certified public accountant shall be required to indicate his/her certificate

of registration number, and date of issuance, the duration of validity, including the

Professional Tax Receipt number on the documents he/she signs, uses or issues in

connection with the practice of his/her profession.

SEC 23 Refusal to Issue Certificate of Registration and Professional Identification Card –

The Board shall not register and issue a certificate of registration and professional

identification card to any successful examinee convicted by a court of competent

jurisdiction of a criminal offense involving moral turpitude or guilty of immoral and

dishonorable conduct or to any person of unsound mind 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 Board.

SEC 24 Suspension and Revocation of Certificates of Registration and Professional

Identification Card and Cancellation of Special Permit – The Board shall have the power,

upon due notice and hearing, to suspend or revoke the practitioner’s certificate of

registration and professional identification card or suspend him/her from the practice of

his/her profession or cancel his/her special permit for any of the causes or grounds

mentioned under section 23 of this Act or for any unprofessional or unethical conduct,

malpractice, violation of any of the provisions of this Act, and its implementing rules and
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regulations, the Certified Public Accountant’s Code of Ethics and the technical and

professional standards of practice for certified public accountants.

SEC 25 Reinstatement, Reissuance and Replacement of Revoked or Lost Certificates –

The Board may, after the expiration of two (2) years from the date of revocation of a

certificate of registration and upon application 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.

A new certificate of registration to replace lost, destroyed, or mutilated

certificate/license may be issued, subject to the rules promulgated by the Board and the

Commission, upon payment of the required fees.

ARTICLE IV

PRACTICE OF ACCOUNTANCY

SEC 26 Prohibition in the Practice of Accountancy – No person shall practice

accountancy in this country, or use the title “Certified Public Accountant”, or use 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/professional license and be issued a professional

identification card or a valid temporary/special permit duly issued to him/her by the

Board and the Commission.

SEC 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
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automatically be registered under the provisions hereof, subject however, to the

provisions herein set forth as to future requirements Certificates of

registration/professional license held by such persons in good standing shall have the

same force and effect as though issued after the passage of this Act.

SEC 28 Limitation of the Practice of Public Accountancy – Single practitioners and

partnerships for the practice of public accountancy shall be registered certified public

accountants in the Philippines: Provided, That from the effectivity of this Act, a

certificate of accreditation shall be issued to certified public accountants in public

practice only upon showing, in accordance with rules and regulations promulgated by

the Board and approved by the Commission, that such registrant has acquired a

minimum of three (3) years meaningful experience in any of the areas of public practice

including taxation: Provided, further, That this requirement shall not apply to those

already granted a certificate of accreditation prior to the effectivity of this Act The

Securities and Exchange Commission shall not register any corporation organized for

the practice of public accountancy.

SEC 29 Ownership of Working Papers – All working papers, schedules and memoranda

made by a certified public accountant and his staff in the course of an examination,

including those prepared and submitted by the client, incident to or in the course of an

examination, by such certified public accountant, except reports submitted by a certified

public accountant to a client shall be treated confidential and privileged and remain the

property of such certified public accountant in the absence of a written agreement

between the certified public accountant and the client, to the contrary, unless such

documents are required to be produced through subpoena issued by any court, tribunal,

or government regulatory or administrative body.

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SEC 30 Accredited Professional Organization – All registered certified public

accountants whose names appear in the roster of certified public accountants shall be

united and integrated through their membership in a one only registered and accredited

national professional organization of registered and licensed certified public

accountants, which shall be registered with the Securities and Exchange Commission

as a nonprofit corporation and recognized by the Board, subject to the approval by the

Commission The members in the said integrated and accredited national professional

organization shall receive benefits and privileges appurtenant thereto upon payment of

a required fees and dues Membership in the integrated organization shall not be a bar to

membership in any other association of certified public accountants.

SEC 31 Accreditation to Practice Public Accountancy – Certified public accountants,

firms and partnerships of certified public accountants, engaged in the practice of public

accountancy, including partners and staff members thereof, shall register with the

Commission and the Board, such registration to be renewed every three (3) years:

Provided, That subject to the approval of the Commission, the Board shall promulgate

rules and regulations for the implementation of registration requirements including the

fees and penalties for violation thereof.

SEC 32 Continuing Professional Education (CPE) Program – All certified public

accountants shall abide by the requirements, rules and regulations on continuing

professional education to be promulgated by the Board, subject to the approval of the

Commission, in coordination with the accredited national professional organization of

certified public accountants or any duly accredited educational institutions For this

purpose, a CPE Council is hereby created to implement the CPE program.

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SEC 33 Seal and use of Seal – All licensed Certified Public Accountants 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/her current Professional Tax Receipt (PTR) number, date/place of

payment when filed with government authorities or when used professionally.

SEC 34 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 A person who is not a citizen of

the Philippines shall not be allowed to practice accountancy in the Philippines unless

he/she can prove, in the manner provided by the Rules of Court that, by specific

provision of law, the country of which he/she is a citizen, subject or national admits

citizens of the Philippines to the practice of the same profession without restriction.

SEC 35 Coverage of Temporary/Special Permits – Special/temporary permit 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 certified public accountant called for consultation or for a specific purpose

which, in the judgment of the Board, is essential for the development of the country:

Provided, That his/her practice shall be limited only for the particular work that he/she is

being engaged: Provided, further, That there is no Filipino Certified Public Accountant

qualified for such consultation or specific purposes;

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(b) A foreign certified public accountant 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

(c) A foreign certified public accountant 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.

ARTICLE V

PENAL AND FINAL PROVISIONS

SEC 36 Penal Provision – Any person who shall violate any of the provisions of this Act

or any of its Implementing rules and regulations as promulgated by the Board subject to

the approval of the Commission, shall, upon conviction, be punished by a fine of not less

than Fifty thousand pesos (P50,000.00) or by imprisonment for a period not exceeding

two (2) years or both.

SEC 37 Implementing Rules and Regulations – Within ninety (90) days after the

effectivity of this Act, the Board, subject to the approval of the Commission and in

coordination with the accredited national professional organization of certified public

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 major daily newspaper of general circulation.

SEC 38 Interpretation of this Act – Nothing in this Act shall be considered to effect or

prevent the practice of any other legally recognized profession.

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SEC 39 Enforcement of the Act – It shall be the primary duty of the Commission and the

Board to effectively enforce the provisions of this Act All duly constituted law

enforcement agencies and offices of national, provincial, city or municipal government

or of any political subdivision thereof, shall, upon the call or request of the Commission

or the Board, render assistance in enforcing the provisions of this Act and to prosecute

any person violating the provisions of the same The Secretary of Justice or his duly

designated representative shall act as legal adviser to the Commission and the Board

and shall render legal assistance as may be necessary in carrying out the provisions of

this Act.

Any person may bring before the Commission, Board or the aforementioned officers of

the law, cases of illegal practice or violations of this Act committed by any person or

party.

The Board she assist the Commission in filing the appropriate charges through the

concerned prosecution office in accordance with law and Rules and Court.

SEC 40 Funding Provision – The chairperson of the Professional Regulation

Commission shall immediately include in the Commission’s programs the

implementation of this Act, the funding of which shall be included in the annual General

Appropriations Act.

SEC 41 Transitory Provisions – The incumbent chairman and members of the Board

shall continue to serve in their respective positions under the terms for which they have

been appointed under Presidential Decree No 692, without the need of new

appointments.
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All graduates with a Bachelors Degree, major in Accounting shall be allowed to take the

CPA Licensure Examination within two (2) years from the effectivity of this Act under

the rules and regulations to be promulgated by the Board subject to the approval by the

Commission.

SEC 42 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, provision, paragraph or

part directly involved in the controversy in which such judgment has been rendered.

SEC 43 Repealing Clause – Presidential Decree No 692 is hereby repealed 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.

SEC 44 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.