The Professional

Practice of
Accounting
 Sectors of Accounting
Practice
1. Practice of Public Accountancy
2. Practice in Commerce and Industry
3. Practice in Education of the Academe
4. Practice in Government
RA 9298 Philippine Accountancy
Act of 2004”.
This Act shall provide for and govern:
O The standardization and regulation of
accounting education;
O The examination for registration of certified
public accountants; and
O The supervision, control, and regulation of
the practice of accountancy in the
Philippines.
PROFESSIONAL REGULATORY
BOARD OF ACCOUNTANCY
O The BOA shall be composed of a chairman and
six (6) members to be appointed by the
President of the Philippines.

O The Board shall elect a vice-chairman from

among its members for a term one (1) 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
such time as a chairman is appointed.
Qualifications of Members of the
Professional Regulatory Board
O Must be a natural-born citizen and a
resident of the Philippines;
O Must be a duly registered Certified Public
Accountant with a least ten (10) years of
work experience in any scope of practice of
accountancy.
O Must be of good moral character and must
not have been convicted of crimes involving
moral turpitude; and
Qualifications of Members of the
Professional Regulatory Board
O 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.
 Term of Office
The Chairman and members of the Board shall
hold office for a term of three (3) years. Any
vacancy occurring within the term of 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
unexpired term is not to be considered as a
complete term.
Powers and Functions of the
Board
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;
Powers and Functions 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;
Powers and Functions of the
Board
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 seems fit;
Powers and Functions of the
Board
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;
Powers and Functions of the
Board
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
Powers and Functions of the
Board
0.) 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.
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:
Grounds for Suspension or Removal
of Members of the Board
a.) Neglect of duty or incompetence;

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;
Grounds for Suspension or Removal
of Members of the Board
c.) Final judgment of crimes involving moral
turpitude; and

d.) Manipulation or rigging of the certified

public accountant’s 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.
 The Commission on
Audit
The Commission on Audit (COA) is the
Philippines' Supreme State Audit Institution. The
Philippine Constitution declares its
independence as a constitutional office, grants
it powers to audit all accounts pertaining to all
government revenues and expenditures/uses of
government resources and to prescribe
accounting and auditing rules, gives it exclusive
authority to define the scope and techniques for
its audits, and prohibits the legislation of any law
which would limit its audit coverage.
The Principal Duties of the
Commission
1. 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.

2. Promulgate 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.
The Principal Duties of the
Commission
3. Submit annual reports to the President and
the Congress on the financial condition and
operation of the government.

4. Recommend measures to improve the

efficiency and effectiveness of government
operations.

5. Keep the general accounts of government

and preserve the vouchers and supporting
papers pertaining thereto.
The Principal Duties of the
Commission
6. Decide any case brought before it within 60
days.

7. Performs such other duties and functions as

may be provided by law.
Standard-Setting Bodies
Standard-Setting Bodies promulgate
accounting and auditing standards which are
being used by Certified Public Accountants in
the performance of their services.
 Standard-Setting Bodies
Agency Description
Financial Reporting Standards The FRSC was established by the Professional
Council (FRSC) Regulatory Commission (PRC) to assist the
L Board of Accountancy (BOA) in carrying out its
O power and function to promulgate accounting
C standards in the Philippines. The FRSC’s main
A function is to establish generally accepted
L accounting principles in the Philippines.
Auditing and Assurance Standards The AASC was created by the PRC upon the
Council (AASC) recommendation of the BOA to assist the BOA
in the establishment and promulgation of
auditing standards in the Philippines.
F International Auditing and Assurance IAASB sets high-quality international standards
O Standards Board (IAASB) for auditing, assurance, and quality control that
R strengthen public confidence in the global
E profession.
I International Accounting Standards The International Accounting Standards Board
G Board (IASB) (IASB) is an independent, private-sector body
N that develops and approves International
Financial Reporting Standards (IFRSs). The IASB
operates under the oversight of the IFRS
Foundation.
Philippine Institute of Certified
Public Accountants (PICPA)
The PICPA is the only accredited national
professional organization of CPAs in the
Philippines. Its primary functions established
for the benefit and welfare of the CPAs, the
advancement of their profession, and the
attainment of other professional ends.
 The Certified Public
Accountant Examinations
All applicants for registration for the practice of
accountancy shall be required to undergo a
licensure examination 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. The
places/venues and dates of examinations shall
be included in the Schedule of Professional
Licensure Examinations for the year issued by
the Commission.
 The Certified Public
Accountant Examinations
The general topics included in the CPA Licensure
Exam (CPALE) are the following:
I. Auditing
II. Management Advisory Services
III. Taxation
IV. Regulatory Framework for Business
Transactions
V. Financial Accounting and Reporting
VI. Advanced Financial Accounting and Reporting
(AFAR)
The Certified Public Accountant
Examinations
As per the Board of Accountancy (BOA)’s
Resolution No. 114 Series of 2016, the
individual subjects in the CPA Boards shall be
composed of two (2) parts with the
corresponding percentage weights.
The Certified Public Accountant
Examinations
The Certified Public Accountant
Examinations
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 years from the preceding
examination; Provided, further, That if the candidate fails to
obtain at least a general average of seventyfive 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. Provided, That the Board may adopt its own
internal procedures on the implementation of this provision.
The Certified Public Accountant
Examinations
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
(24) units of subjects given in the licensure
examination. Provided, That such refresher course shall
be offered only by an educational institution granting a
degree of Bachelor of Science in Accountancy. Provided
Further, That the candidates shall have the option of
taking the aforesaid subjects in the regular course
offering or in a special refresher course duly accredited
by the Board.
 Oath of Membership to the
Profession
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.
 Issuance of Certificates of
Registration and Professional
Identification Card
A Certificate of Registration shall be issued to
examinees who pass the licensure examination,
or are admitted without examination under
reciprocity or other international agreements
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.
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 who:
1. Was convicted by a court of competent
jurisdiction of a criminal offense involving moral
turpitude

2. Guilty of immoral and dishonorable conduct

3. Any person of unsound mind

4. Misrepresentation in the application for the CPA

examination
 The CPA Seal
All registered 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.
 Professional Standards
1. Philippine Standard on Auditing (PSA) - deals with
the auditor’s responsibility to form an opinion on the
financial statements. It also deals with the form and
content of the auditor’s report issued as a result of
an audit of financial statements.

2. The Philippine Standard on Review Engagements

(PSRE) purpose is to establish standards and provide
guidance on the practitioner’s professional
responsibilities when a practitioner, who is not the
auditor of an entity, undertakes an engagement to
review financial statements and on the form and
content of the report that the practitioner issues in
connection with such a review.
 Professional Standards
3. The purpose of this Philippine Standard on
Assurance Engagements (PSAE) is to establish
basic principles and essential procedures for,
and to provide guidance to, professional
accountants in public practice for the
performance of assurance engagements other
than audits or reviews of historical financial
information covered by Philippine Standards on
Auditing (PSAs) or Philippine Standards on
Review Engagements (PSREs).
 Professional Standards
4. The purpose of this Philippine Standard on
Related Services (PSRS) is to establish
standards and provide guidance on the
auditor’s professional responsibilities when an
engagement to perform agreed-upon
procedures regarding financial information is
undertaken and on the form and content of
the report that the auditor issues in
connection with such an engagement.
 Continuing Professional
Development
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.
 Continuing Professional
Development
PRC Resolution 2019-1146
O OFWs are not covered by the CPD
requirement
O Newly licensed CPAs are not covered by the
CPD requirement for their first renewal cycle
O All other CPAs renewing their Professional ID
Card will need 15 CPD units of training - (can
be under any Competence Area)
O CPAs getting BoA accreditation will need
120 units of CPD training