ARTICLE II

THE BOARD OF ACCOUNTANCY

Sec. 4. The Board of Accountancy and its composition. The Board of Accountancy shall be composed of a
chairman and six (6) members to be appointed by the President of the Philippines upon
recommendation of the Professional Regulation Commission.

The Board shall elect a vice-chairman from among its members for a term of one 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 the end of the term or until such time
as a Chairman is appointed.

Sec. 5. Functions of the Board of Accountancy. The Board of Accountancy shall have the following
functions:

(a) To determine and prescribe minimum requirements leading to the admission of candidates to the
certified public accountant's examinations;

(b) To determine and prepare the contents of licensure examinations; score and rate the examination
papers and submit the results thereof to the Commission within two hundred forty (240) days after the
last examination day unless otherwise directed by the Commission;

(c) To look from time to time into the conditions affecting the practice of the accountancy profession
and whenever necessary, adopt such measures as may be deemed proper for the enhancement and the
maintenance of high professional, ethical and technical standards;

(d) To investigate violations of the Accountancy Law and the rules and regulations promulgated
thereunder and for this purpose to issue summons, subpoena and subpoena duces tecum to violators or
witnesses thereof and compel their attendance to such investigation or hearings;

(e) To promulgate decisions on such administrative cases subject to review by the Commission;

(f) After due process, to suspend, revoke, or reissue certificates of registration for causes provided for by
law or by the rules and regulations promulgated therefor;

(g) To perform such other functions and duties as may be deemed necessary to effectively implement
policies with respect to the regulation and practice of the profession.
Sec. 6. Qualification of Board Members. No person shall be appointed a member of the Board of
Accountancy unless he:

(a) is a citizen of the Philippines;

(b) is of good moral character;

(c) is a duly registered Certified Public Accountant in the Philippines;

(d) has been in the practice of accountancy for at least ten years; and

(e) is not directly or indirectly connected with any school, college, or university granting degrees that
may qualify graduates with such degrees for admission to the Certified Public Accountant examinations,
or with Certified Public Accountant's Review School or Institute, nor shall have any pecuniary interest in
such school, college, university or Certified Public Accountant's Review School or Institute.

Sec. 7. Tenure of Office and Compensation of Members. The Chairman and members of the Board of
Accountancy shall hold office for three years: Provided, That the first and second, third and fourth, and
fifth and sixth members and the chairman appointed under this law shall serve for one, two and three
years, respectively; Provided, further, That the incumbent members of the Board of Accountancy shall
serve for their unexpired terms of office or until their successors shall have been appointed and
qualified. Vacancies shall be filled by appointments for the unexpired terms only. No person who has
served two successive complete terms shall be eligible for reappointment until after the lapse of one
year. Appointment to fill an unexpired term is not to be considered as a complete term.

Each member shall receive as compensation a fee not exceeding fifteen pesos for each candidate
examined and a per diem not less than ten pesos for each day of attendance in administrative
investigations and ocular inspections lasting not less than one hour at a time; Provided, That the total
compensation of the chairman or members shall be at such rates as may be provided for in the general
appropriation decree for participating in all examinations given during the fiscal year.

Sec. 8. Suspension or removal of a Member of the Board. The Professional Regulation Commission shall
recommend to the President of the Philippines the removal from the Board of any member whose
certificate to practice has been revoked or suspended, and may, after hearing, recommend to the
President the removal of any member of the Board for neglect of duty or incompetence or other just
cause.
Sec. 9. The Certified Public Accountant Examination. The Board of Accountancy shall determine and
prepare the contents of examinations to qualify Certified Public Accountants. The Board of Accountancy,
in coordination with the Professional Regulation Commission, shall conduct the examinations at least
once in each calendar year in the Cities of Manila and Cebu: Provided, however, That if conditions
warrant, the Board may upon previous approval of the Professional Regulation Commission, conduct the
examinations in other places.

Section 10. Admission Requirements for Examinations. No person shall be admitted to the examination
unless he is:

(a) a citizen of the Philippines;

(b) at least twenty-one years of age: Provided, however, That an applicant below twenty-one years of
age may be allowed to take the examinations and in case he passes the examinations shall not be issued
the certificate until he reaches the required age;

(c) of good moral character;

(d) a holder of the degree of Bachelor of Science in Commerce or its equivalent from any institution of
learning recognized by the government in accordance with the provisions of this Decree; and

(e) in case of a candidate who has failed two complete certified public accountant's examinations, he
shall have complied with the requirements for examinations as provided under Section 13 of this
Decree.

Section 11. Scope of Examinations. The examinations shall be in writing and shall cover the following
subjects with the corresponding weight in units unless otherwise modified by the Board upon approval
of the Professional regulation Commission.

Subjects Weights in Minimum Units Hours

Theory of Accounts 2 3

Business Law and Taxation 2 3

Management Services 2 3
Auditing Theory 2 3

Auditing Problems 2 3

Practical Accounting Problems I 2 3

Practical Accounting Problems 2 3

TOTAL 14 21

The contents and coverage of these subjects shall be in accordance with the outline or syllabus prepared
and issued by the Board of Accountancy containing the following:

Theory of Accounts. Accounting terminology, accounting principles and procedures, classification of

Business Law and Taxation. One-Half on the subject of business law covering obligation and contracts,
partnerships and corporations, negotiable instruments and other phases of the legal framework of
business, and the other half on taxation dealing on income tax, business taxes, transfer taxes, and other
taxes affecting accounting practice.

Management Services. Principles and procedures, methods and techniques involved in management

Auditing Theory. Auditing concepts, auditing standards, internal control, auditing procedures and
techniques, and the short-form audit report.

Auditing Problems. Problems on the application of auditing standards, techniques and procedures,

Practical Accounting I. Problems concerning financial statements and accounting for assets, liabilities
and stockholder's equity.
Practical Accounting II. Problems pertaining to partnership, joint ventures, fire insurance on the
insured's books, consignments, installment sales, agencies and branches, business combinations, cost
accounting, financial analysis, and government accounting.

Section 12. Examination Rating. A candidate for the examination obtaining a general weighted average
of seventy-five percent and above shall be entitled to registration as certified public accountant and as
such shall receive a certificate of registration from the Board of Accountancy, Provided, That is no case
should the rating on any subject be less than sixty-five percent. In the event a candidate obtains the
rating of seventy-five percent and above in at least four (4) subjects having a combined weight of eight
(8) units as provided for in this Act, he shall receive a conditional credit for the subjects passed:
Provided, However, That such candidates shall take an examination in the remaining subjects within two
years from the preceding examination: Provided, further, That if the candidate fails to obtain at least a
general weighted average of seventy-five percent and a rating of at least sixty-five percent in each of the
subjects re-examined, he shall be considered as failed in the entire examination.

Section 13. Failing candidates to take refresher course. Any candidate who fails in two complete
Certified Public Accountant board examinations shall be disqualified from taking another set of
examinations unless he submits evidence to the satisfaction of the Board of Accountancy that he has
enrolled in and completed at least twenty-four units of subjects given in Certified Public Accountant
Examinations.

For purposes, of this Law, the examinations 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.

Section 14. Certificate of Registration. A certificate of registration as Certified Public Accountant shall be

All certificates of registration shall show the full name of the registrant, shall have a serial number, and
shall be signed by all the members of the Board and the Chairman of the Professional Regulation
Commission and attested by the official seal of the Board.

A certificate of registration shall not be issued to any candidate who has been convicted by a court of
competent jurisdiction of any criminal offense involving moral turpitude, or has been found guilty of
immoral or dishonorable conduct after due investigation by the Board of Accountancy, or has been
declared to be of unsound mind.
Section 15. Fees. All applications must be filed with the Professional Regulation Commission and shall be
subject to the payment of fees prescribed by the Professional Regulation Commission.

Section 16. Rules and Regulations of the Board of Accountancy. Subject to the approval of the
Professional Regulation Commission, the Board of Accountancy shall promulgate rules and regulations
and set professional standards for the practice of accountancy. Such rules shall include a code of
professional ethics and security measures to protect the secrecy and integrity of the examinations.