SCOPE OF PRACTICE

The practice of accountancy shall include, but not limited to, the following:
1. 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 transactions and accounting records;
• the preparation, signing, or certification for clients of reports of audit,
balance sheet, and other financial, accounting, and related schedules,
exhibits, statements, or reports which are to be used for publication or credit
purposes, or to be filed with a court or government agency, or to be used
for any other purpose;
• the design, installation, and revision of the accounting system;
• 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.

2. Practice in 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.

3. Practice in Education/Academe
Shall constitute in a person in an educational institution that involves teaching
accounting, auditing, management advisory services, finance, 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.

4. Practice in the Government

Shall constitute a person who holds, or is appointed to, a position in an accounting
professional group in government or a government-owned and/or controlled
corporation, including those performing proprietary functions, where decision-making
requires professional knowledge in the science of accounting, or where a civil service
eligibility as a certified public accountant is a prerequisite.
REGULATION OF THE ACCOUNTANCY PROFESSION
REPUBLIC ACT NO. 9298 (RA 9298) OR THE "PHILIPPINE ACCOUNTANCY ACT
OF 2004"
RA 9298 is the regulatory act of the practice of accountancy in the Philippines. It
supersedes Presidential Decree No. 692 (PD 692), otherwise known as the revised
accountancy law.

Objectives
RA 9298 shall provide for and govern:
a. The standardization and regulation of accounting education;
b. The examination for registration of certified public accountants; and
c. The supervision, control, and regulation of the practice of accountancy in the
Philippines.

PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY (BOA

Composition
• A Chairman and six (6) members to be appointed by the President of the
Philippines
• A vice-chairman shall be elected from among its members for a term of one
(1) year.

Qualifications of Members
A member of the Board shall, at the time of his/her appointment, possess the following
qualifications:
• Must be a natural-born citizen and a resident of the Philippines;
• Must be a duly registered Certified Public Accountant with at least ten (10)
years of work experience in any scope of practice of accountancy.
• Must be of good moral character and must not have been convicted of crimes
involving moral turpitude; and d.
• Must not have any pecuniary interest, directly or indirectly, in any school,
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.
• Must not be a director or officer of the APO at the time of his appointment.

Term of Office
• The Chairman and members of the Board shall hold office for a term of three
(3) years.
• No person who has served two (2) successive complete terms shall be eligible
for reappointment until the lapse of one (1) year.
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;
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 conditions 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 of financial statements through a
review of the quality control measures instituted by auditors in order to ensure
compliance with the accounting and auditing standards and practices;
i. To investigate violations of this act and the 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 hearings and the production 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 section, delegate the fact-finding aspect of such investigations
to the accredited national professional organization of certified public accountants:
Provided, Further, That the Board and/or the Commission may adopt their findings
of fact as it may seem fit;
j. The Board may, motu propio 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 standard 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 provisions of and 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
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.

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, examination questions,
answer sheets, and other records and documents pertaining to the CPA licensure
examination, and administrative and other investigative cases conducted by the Board
shall be under the custody of the Commission and shall provide the secretariat other
support services to implement the provision of R.A. No.
9298.

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.

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;
b. Violation or tolerance of any violation of this Act and its implementing rules and
regulations or the CPA's Code of Ethics and the technical and professional
standards of practice for certified public accountants;
c. Final judgment of crimes involving moral turpitude; and
d. Manipulation or rigging of the certified public 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.
CERTIFIED PUBLIC ACCOUNTANT EXAMINATIONS

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.

Scope of Examination
The licensure examination for certified public accountants shall cover, but is not limited
to, the following subjects:
1. Advanced Financial Accounting and Reporting (AFAR)
2. Auditing (AUD)
3. Financial Accounting and Reporting (FAR)
4. Management Advisory Services (MAS)
5. Taxation (TAX)
6. Regulatory Framework for Business Transactions (RFBT)

Rating in the Licensure Examination

General average of at least seventy-five percent (75%),
PASSED with no grades lower than sixty-five percent (65%) in any
given subject.
General average of less than 75%, has a grade of less
than 65%, or both, but has obtained 75% and above in at
CONDITIONAL
least majority (4 out of 6) of the subjects covered in the
licensure examination.
REMOVAL A candidate shall take an examination in the remaining
EXAMINATION subjects within two years from the preceding examination.
Failing Candidates to Take Refresher Course
A candidate who fails in two (2) complete CPA 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 (24)
units of subjects given in the board exam.

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.

Oath
All successful candidates in the examination shall be required to take an oath of
profession before any 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.

Roster of Certified Public Accountants

A roster showing the names and place of business of all registered certified public
accountants shall be prepared and updated by the Board, and copies thereof shall be
made available to any party as may be deemed necessary.

CERTIFICATES OF REGISTRATION, PROFESSIONAL IDENTIFICATION CARD and

TEMPORARY/SPECIAL PERMITS

Issuance
A certificate of registration shall be issued to
a. examinees who pass the licensure examination
b. person admitted under reciprocity or other international agreements
c.
The Certificate of Registration shall bear the following
1. full name and the assigned registration number of the registrant
2. signature of the chairperson of the Commission and the chairman and members
of the Board
3. official seal of the Commission and of the Board

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

and expiry date, duly signed by the chairperson of the Commission, shall likewise be
issued to every registrant renewable every three (3) years.

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 CPA 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 and that there is no Filipino CPA qualified for such consultation or specific
purposes;
b. A foreign CPA 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 CPA 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.

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, 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.

Refusal to Issue
The Board shall not register and issue a certificate of registration and professional
identification card to any successful examinee
a. Convicted by a court of competent jurisdiction of a criminal offense involving moral
turpitude
b. Guilty of immoral and dishonorable conduct
c. Of unsound mind

Suspension and Revocation

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
a. As mentioned in the grounds for refusal to issue; or
b. Any unprofessional or unethical conduct
c. Malpractice
d. violation of any of the provisions of RA 9298 and its IRR, the CPA's Code of Ethics,
and the technical and professional standards of practice for certified public
accountants.

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.

PRACTICE OF ACCOUNTANCY
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.

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.

Accreditation to Practice Public Accountancy

A certificate of accreditation shall be issued to a CPA in public practice only upon showing
that such registrant has acquired a minimum of three (3) years of meaningful experience
in any of the areas of public practice including taxation.

Individual 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
shall be renewed every three (3) years.

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.

Ownership of Working Papers

As a rule, working papers are confidential, privileged, and property of the CPA.

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, and 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.

Accredited Professional Organization (Philippine Institute of Certified Public

Accountants)
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 and
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 required fees
and dues. Membership in the integrated organization shall not be a bar to membership in
any other association of certified public accountants.

PENAL
AND FINAL PROVISIONS
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 (P 50,000.00) or by imprisonment for a period not exceeding two (2) years or both.

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 officers 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.

CONTINUING PROFESSIONAL DEVELOPMENT

Based on RA 10912 Continuing Professional Development (CPD) Act of 2016
RA 10912 is an act mandating and strengthening the continuing professional
development program for all regulated professions, creating the continuing professional
development council, and appropriating funds therefor, and for other related purposes.

Definition and Rationale

CPD refers to the inculcation of advanced knowledge, skills, and ethical values in a post-
licensure specialization or in an inter- or multidisciplinary field of study, for assimilation
into professional practice, self-directed research, or lifelong learning.
Voluntary compliance with the CPD program is an effective and credible means of
ensuring the competence, integrity, and global competitiveness of professionals in order
to allow them to continue the practice of their profession.

Required CPE Credit units

1. Renewal of PIC - fifteen (15) credit units. Exemptions:
a. Professional working overseas (OFWs)
b. Newly licensed professionals for the first renewal cycle after obtaining their license
2. For accreditation (initial and renewal) - one hundred twenty (120) credit units Minimum
units under required competency areas
1. Technical Competence- 30 UNITS
2. Professional Skills -5 UNITS
3. Professional Values, Ethics, and Attitudes- 5 UNITS
4. Flexible CPD units- 80 UNITS
5. Required number of CPD units
Note: The required minimum units earned from the previous year/s shall be 20 credit
units.

ORGANIZATIONS DISCUSSED UNDER RA 9298

Financial Reporting Standards Council (FRSC) which was renamed to Financial
and Sustainability Reporting Standards Council (FSRSC) in September 2022

The council shall be composed of sixteen (16) members. A chairman, who had been or is
presently a senior accounting practitioner in any of the scope of accounting practice and
fourteen (14) representatives from the following:

Board of Accountancy 1
Commission on Audit 1
Securities and Exchange Commission 1
Bangko Sentral ng Pilipinas 1
Bureau of Internal Revenue 1
Insurance Commission 1
A major organization composed of 1
preparers and users of financial
statements (FINEX)*
Accredited National Professional
Organization of CPAs:
Public Practice 2
Commerce and Industry 2
Academe/Education 2
Government 2

Auditing and Assurance Standards Council (AASC)

Per RA 9298, the AASC shall be composed of fifteen (15) members. A chairman, who had
been or is presently a senior practitioner in public accountancy and fourteen (14)
representatives from the following:

Board of Accountancy 1
Commission on Auditt 1
Securities and Exchange Commission 1
Bangko Sentral ng Pilipinas 1
An association or organization of CPAs in 1
active public practice of accountancy
 Accredited National Professional
Organization of CPAs:
Public Practice 6
Commerce and Industry 1
Academe/Education 1
Government 1

However, per BOA Resolution No. 22 Series of 2020, the number of members of AASC
was increased from fifteen (15) to eighteen (18). The increase shall include additional
representatives from the small- and medium-sized practitioners, a representative from the
Insurance Commission, and the removal of the representative from the government. With
these, the composition of the AASC will be as follows:

A chairman, who had been or is presently a senior practitioner in public accountancy and
seventeen (17) representatives from the following:

Board of Accountancy 1
Commission on Auditt 1
Securities and Exchange Commission 1
Bangko Sentral ng Pilipinas 1
An association or organization of CPAs in 1
active public practice of accountancy
Insurance Commission 1
Accredited National Professional
Organization of CPAs:
Public Practice 9
Commerce and Industry 1
Academe/Education 1

Quality Review Committee (QRC)

The QRC shall be composed of seven (7) members. A chairman, who had been presently
a senior accounting practitioner in public accountancy, and six representatives from the
following:
Board of Accountancy 1
Accredited National Professional
Organization of CPAs:
Public Practice 2
Commerce and Industry 1
Academe/Education 1
Government 1
Functions of QRC:
• Conduct quality review on applicants for registration to practice public accountancy
and render a report which shall be attached to the application for registration.
• Recommend to the Board the revocation of the certificate of registration and the
professional identification card of CPAs in public practice of accountancy.
Education Technical Council (ETC)
The ETC shall be composed of seven (7) members with a Chairman, who had been
presently a senior accounting practitioner in the academe/education and six
representatives from the following:

Board of Accountancy 1
Accredited National Professional
Organization of CPAs:
Public Practice 1
Commerce and Industry 1
Academe/Education 2
Government 1

ETC was established to assist the Board in

a. carrying out its powers and functions provided in Rule Il, Section 7 (n) of RA 9298
b. in attaining the objective of continuously upgrading accountancy education in the
Philippines to make Filipino CPAs globally competitive.

Term of Office
The chairman and members of the FSRSC, AASC, QRC, and ETC shall have a term of
three (3) years renewable for another term.

Philippine Institute of Certified Public Accountants (PICPA)

• The PICPA was recognized by the Commission as the APO on October 2, 1975,
per Accreditation No. 15. It was established for the benefit and welfare of the CPAs,
the advancement of their profession, and the attainment of other professional
ends.
• Membership is open to all registered CPAs from all sectors namely public practice,
commerce, and industry, academe/education, and government.
• PICPA shall have adequate chapters/regions in major areas in the Philippines to
effectively attend to the needs of its members
• There shall only be fifteen (15) national directors, unless there is a valid reason to
have additional representation.
• Renewal of certificate of accreditation once every three years.
• Cancellation of accreditation may be caused by any of the following grounds:
a. it has ceased to possess any of the qualifications for accreditation
b. it no longer serves the best interests of CPAs
c. it did not achieve its plan within three years
d. it has committed acts inimical to its members and the profession
e. Failure to renew its accreditation after a lapse of an unreasonable period.
 PRC CPD Council
The Board, upon approval by the PRC, shall create this council which shall assist
the Board in implementing its CPD program.

Composition
The PRC CPD Council shall be composed of a chairperson and two (2) members.
• The chairperson shall be chosen among the members of the Board
• The first member could either be the president or any officer chosen by
the BOD of PICPA
• The second member could either be the president or any officer of the
organizations of deans or department heads of schools, colleges, or
universities offering the BS Accountancy program.

Term of office
Co-terminus with their respective incumbency in BOA, PICPA, and organization

Powers and Functions

The council shall, upon a majority vote, exercise powers and functions which shall
include but shall not be limited to the following:
• Accept, evaluate, and approve applications for accreditation of CPE
providers.
• Accept, evaluate, and approve applications for accreditation of CPE
programs, activities, or sources as to their relevance to the profession
and determine the number of CPE credit units to be earned based on
the contents of the programs, activity, or source submitted by the CPE
providers.
• Accept, evaluate, and approve applications for accreditation for
exemptions from CPE requirements.
• Monitor implementation by the CPE providers of their programs,
activities, or sources.
• Assess periodically and upgrade criteria for accreditation of CPE
providers and CPE programs, activities, or sources. Perform such
other related functions that may be incidental to the implementation of
the CPE programs or policies.

PICPA CPD Council

If the need arises, the PRC CPD Council may delegate to the PICPA
1. the processing of the application
2. keeping all records for CPD providers and their respective programs and credit
units earned by each CPA who avail of the CPD programs
3. any other related functions
ORGANIZATIONS AFFECTING THE ACCOUNTANCY PROFESSION
I. Regulatory Government Agencies
A. Professional Regulation Commission (PRC) - Agency that administers,
implements, and enforces the regulatory policies of the government with respect
to the regulation and licensing of the various professions under its jurisdiction.
B. Board of Accountancy - the only body that issues and may revoke CPA
certificates and grant licenses to practice
C. Commission on Audit (COA) - the Philippines' Supreme Audit Institution. This
commission has the power, authority, and duty to examine, audit, and settle all
accounts pertaining to the revenue and receipts of, and expenditures or uses of
funds and property, owned or held in trust by, or pertaining to, the government, or
any of its subdivisions, agencies, or instrumentalities, including government-
owned or controlled corporations and recommend measures to improve the
efficiency and effectiveness of government operations. Its primary function is to
keep the general accounts of the government and for such period as may be
provided by law, preserve the vouchers pertaining thereto.

Reports on the:
1. Accountability of government funds
a. When it examines all accounts pertaining to the revenue and receipts of, and
expenditures or uses of funds and property owned or held in trust by, or
pertaining to, the government.
b. When it sets accounting and auditing rules and regulations including those for
the prevention and disallowance of irregular, unnecessary, excessive,
extravagant, or unconscionable expenditures, or uses of government funds and
properties.
2. Financial condition and operation of the government to the President and the
Congress.
3. Operational efficiency and effectiveness of the government and its agencies.
4. Accountability of government records.
5. Decisions to any case brought before it within 60 days.

D. Securities and Exchange Commission (SEC) - Agency that regulates the

registration and operations of corporations, partnerships, and other forms of
associations, as well as monitoring of compliance with the Corporation Code, Civil
Code provisions on partnerships, Foreign Investment Act, and other related laws.
It has the power to establish rules for any CPAs associated with audited financial
statements submitted to the Commission and also has considerable influence in
setting GAAP and disclosure requirements for financial statements.

The SEC Powers and functions relevant to the Accountancy Profession

1. Have the jurisdiction and supervision over all corporations, partnerships, or
associations who are the grantees of primary franchises and/ or a license or permit
issued by the Government;
2. Approve, reject, suspend, revoke, or require amendments to registration
statements, and registration and licensing applications;
 3. Issue cease and desist orders to prevent fraud or injury to the investing public;
4. Impose sanctions for the violation of laws and the rules, regulations, and orders
issued pursuant thereto;
5. Punish for contempt of the Commission, both direct and indirect, in accordance
with the pertinent provisions of and penalties prescribed by the Rules of Court;
6. Issue subpoena duces tecum and summon witnesses to appear in any
proceedings of the Commission and appropriate cases, order the examination,
search, and seizure of all documents, papers, files and records, tax returns, and
books of accounts of any entity or person under investigation as may be necessary
for the proper disposition of the cases before it, subject to the provisions of existing
laws.

Objectives:
- to assist in providing investors with reliable information upon which to make
investment decisions

E. Bureau of Internal Revenue (BIR) - Agency whose primary objective is to raise

revenues for the government. It also prescribes additional requirements for audited
financial statements that accompany tax returns of various entities.
F. Bangko Sentral ng Pilipinas (BSP) - An agency whose primary objective is to
maintain price stability conducive to a balanced and sustainable economic growth.
It also aims to promote and preserve monetary stability and the convertibility of the
peso.
G. Insurance Commissions - prescribes additional requirements regarding audits of
insurance, pre-need, and HMO industries. Its primary mandate is to regulate and
supervise these industries in accordance with the provisions of the Insurance
Code, as amended, Pre-Need Code of the Philippines, and Executive Order No.
192 (s. 2015)
Objectives:
a. To promote growth and financial stability of insurance, pre-need, and HMO
companies
b. To professionalize insurance, pre-need, and HMO services, and develop
insurance, pre-need, and HMO consciousness among the general populace
c. To establish a sound national insurance market
d. To safeguard the rights and interests of the insuring public, pre-need, and
HMO customers

II. Professional Organizations

A. Philippine Institute of Certified Public Accountants (PICPA) - the accredited
national professional organization
B. Sectoral Organizations
a. Association of CPAs in Public Practice (ACPAPP)
b. Association of CPAs in Education (ACPAE)
c. Association of CPAs in Commerce and Industry (ACPACI)
d. Government Association of CPASS (GACPA)
III. Standard-Setting Bodies
1. Financial Reporting and Sustainability Standards Council
2. Auditing and Assurance Standards Council