PRACTICE AND

REGULATION
OF THE
PROFESSION REFERENCES:
RA 9298
Philippine Accountancy Act of 2004

RA 10912
Continuing Professional Development Act of
2016
Syllabus of AUDITING
50%
PRACTICE AND REGULATION OF THE
PROFESSION
Republic Act No. 9298
“PHILIPPINE ACCOUNTANCY ACT OF 2004”
OBJECTIVES
01 STANDARDIZATION

Standardization and
regulation of
accounting
education.
02 EXAMINATION
The examination for registration of
CPA’s
03 SUPERVISION
Supervision, control, and
regulation of the
practice of
accountancy in the
PHILIPPINES.
Review Question
Which of the following statements about the Philippine Accountancy
Act of 2004 is LEAST LIKELY CORRECT?

A. It shall provide for and govern the standardization and regulation of

accounting education and the examination for registration of certified
public accountants.
B. It shall provide for and govern the supervision, control, and
regulation of the practice of Filipino professional accountants in the
Philippines and abroad.
C. It is aligned with the policy of the State to recognize accountants in
nation building and development.
D. It aims to develop and nurture professional accountants whose
standards of practice and service shall be excellent, qualitative, world
class, and globally competitive.
SCOPE OF PRACTICE
01 Public Practice

client-service provider relationship

02 Commerce & Industry

Employer-employee relationship
03 Government

Government is the employer

04 Academe

teaching accounting, auditing, MAS, finance, BL

College of Accountancy: Dean is
CPA

College of Accountancy and others:

At least the chairperson is CPA

RFBT and Taxation can also be taught by

non-CPA lawyers.
Review Question
A person is deemed to be in practice of the accounting
profession in commerce and industry when he/she:
A. Holds, or is appointed to a position in an accounting professional group
in government or in a government-owned and/or controlled corporation,
where decision-making requires professional knowledge in the science of
accounting.
B. Is involved in decision-making requiring professional knowledge in the
science of accounting, as well as the accounting aspects of finance and
taxation, or is employed in a position that requires a CPA.
C. Is in an educational institution which involves teaching of accounting,
auditing, management advisory services, accounting aspect of finance,
business law, taxation, and other technically-related subjects.
D. Holds out himself/herself as one skilled in the knowledge, science and
practice of accounting, and as someone qualified to render professional
services as a CPA.
Review Question
Professional Regulatory Board of
Accountancy
COMPOSITION
 1 Chairman and 6
members
 Vice chairman is also
elected for 1-year term.
 As much as possible, 4
sectors in practice shall be
equitably represented.
Review Question
APPOINTMENT PROCESS
PICPA to nominate 5

nominate not later than 60 days

prior
PRC to select and recommend
the top 3 ranking.

In case PICPA failed to nominate, PRC may

recommend its own recommendees, upon
recommendation of BOA.
President to appoint 1
Review Question
Review Question
QUALIFICATION, TERMS, AND
SUSPENSION
QUALIFICATION OF MEMBERS
a. Natural-born and resident
b. CPA with at least 10 years of professional
experience in any scope
c. Good moral character and not convicted of crimes
involving moral turpitude.
d. No pecuniary interest in academic institution
and review classes and no longer a faculty
member and no longer part of administration
(at time of appointment)
e. Not director nor officer of PICPA (at the time of
appointment)
TERMS OF OFFICE

a. 3-year term
b. Consecutive terms up to two, must have 1
year gap for re-appointment
c. If appointed for unfinished term, then it must
be Filled up for unexpired portion only
d. Appointment for unexpired term will not be
for a complete term
e. Maximum of 12 years of service in BOA
GROUNDS FOR SUSPENSION
The President may suspend or remove a member (upon PRC
recommendation, and after the member is given an
opportunity to defend himself)

a. Neglect of duty or incompetence

b. Violation or tolerance of violation
c. Final judgement of crimes involving moral turpitude
d. Manipulation or rigging of CPALE results, disclosure o
confidential information about exam, or tampering
grades
Review Question
Review Question
QUALIFICATIONS AND
REQUIREMENTS FOR BOARD EXAM
Filipino citizen
Requirement:
PSA CERTIFICATE OF LIVE BIRTH
25 Filipinos pass CPA
licensure exams in Middle
East
October 23, 2018

The Professional Regulation Commission (PRC) announced,

on Monday, that 25 out of 188 takers passed the special
Professional Licensure Examinations for Certified Public
Accountant (CPA) given in the Middle East in August.

Board of Accountancy conducted the examination on

August 24, 25, and 26 in Abu Dhabi, United Arab Emirates;
Q: Are foreigners allowed to take the local professional examinations
(of PRC)?

Answer. Foreigners will only be allowed to take the examinations if

there is proof of reciprocity between the Philippines and the country of
the foreigner. (Foreigners with dual citizenship or recognized Filipino
citizen will be allowed to take the exam upon presentation of ID
Certificate from the Bureau of Immigration and Certificate of Oath of
Allegiance and Certificate of Dual Citizen/Certificate of Recognition as
Filipino Citizen.)
Good moral character
and not convicted of
any crime involving
moral turpitude
Requirement: NBI CLEARANCE
BS accountancy
graduate from
school duly
accredited by CHED
Requirement:
Transcript of Records (for Board exam
purpose)
For married female
applicants
Marriage contracts authenticated
by PSA
 Rating in CPALE
PASSED 1. General average of 75% and above, AND
2. No grade in any subject that is below 65%

Conditional didn’t fulfill both of the two, but got 75%

and above in at least majority of subjects (4
of 6)
conditional, in the sense that he may pass on
the condition that he/she meets the two
requirements after removal

FAILED - did not meet the two requirement

Review Question
Review Question
Review Question
Refresher Course
It is required after failing two complete CPA board
examination.

Refresher course certificate for 24 units of subjects will be

required additionally.
The certificate will come from educational institution offering BS
Accountancy, recognized by CHED and accredited by PRC.
VALID for a period of two years from date of issue.

Removal exam is not counted as another complete CPALE.

 Other provisions of RA 9298
Report of Ratings - with 10 calendar (or working) days after
examination, unless extended for just cause.

Oath – take oath before BOA member, or government official

authorized by PRC or any person authorized by law to administer oaths

Roster of CPA’s – showing names and place of business of all registered

CPA’s shall be prepared and updated by BOA, and copies thereof shall
be made available to any party as may be deemed necessary.
Review Question
REGISTRATION
Certificate of Registration
It shall be issued to
a. Examinees who pass the licensure examination
b. Person admitted under reciprocity or other international
agreements

It shall bear the following:

c. Full name and assigned registration number of the registrant
d. Signature of the chairperson of PRC and the chairman and
members of BOA
e. Official seal of PRC and BOA
 Professional Identification card
It bears the registration number, date of issuance, expiry date, duly
signed by the PRC chairperson.

It is renewable every three years and expires on the registrant’s

birthday.
Professional Identification card
Birth date: January 2, 1980
LECPA taken: October 2022
Registration date: December 9, 2022

Hence, the expiry year is 2025 (2022 + 3 years). And the

expiration date will be January 2 of that year.
Special Temporary Permit
a. Foreign CPA called for consultation or for a specific purpose
which, in the judgement of BOA, is essential for the
development of the country
* Provided that his/her practice shall be limited only for the particular
work, and there is no Filipino CPA qualified for it)
b. Foreign CPA engaged as professor, lecturer, or critic in
fields essential to accountancy education in the Philippines
(confined to teaching only)
c. Foreign CPA who is an internationally recognized expert of
with specialization in any branch of accountancy and
his/her service essential for the advancement of
accountancy in the Philippines.
Indication of COR, PIC, and PTR
Tax receipt
Whenever a CPA signs, uses or issues
documents in connection with the practice of
the accountancy profession, the CPA shall be
required to indicate his/her registration
number, date of issuance, duration of
validity, including Professional Tax Receipt
number on the documents.

PTR is required for self-employed

professionals to practice their profession and
to renew their business registration
requirements, while it is required for
employers of professionals as a requirement
of the law.
.

Refusal to issue

BOA shall not register and issue a certificate of registration and

professional identification card to any successful examinee
a. Convicted of crime involving moral turpitude
b. Guilty of immoral and dishonorable conduct
c. Of unsound mind

Suspension and Revocation

d. As mentioned in Refusal to issue

e. Any unprofessional or unethical conduct
f. Malpractice
g. Violation of (RA 9298 and IRR, Code of Ethics of CPA’s, technical and
professional standards of practice of CPAs
Disgraceful and Immoral Conduct as defined under Civil Service Commission
(CSC) Memorandum Circular (MC) No. 15, Series of 2010, which provides:

Section 1. Definition of Disgraceful and Immoral conduct - Disgraceful and

Immoral Conduct refers to an act which violates the basic norm of decency,
morality and decorum abhorred and condemned by the society. It refers to
conduct which is willful, flagrant or shameless, and which shows a moral
indifference to the opinions of the good and respectable members of the
community.
Reinstatement, Reissuance, and
Replacement of Revoked or Lost Certificate

At the discretion of the BOA, validity of revoked COR may be

reinstated after two years date of revocation, and BOA may
not require having examination again.

Moreover, BOA has the power to issue new COR to replace

lost, destroyed, or mutilated certificates/license.
Review Question
Review Question
 PRACTICE OF ACCOUTANCY
RA 9298 requires that no person shall practice accountancy
in the Philippines or use the title “Certified Public
Accountant” to indicate such person practices or offers to
practice accountancy unless such person received from BOA
a COR and PIC or permit.

Simply stated, a person shall not represent himself/herself as

a CPA if he/she is not a CPA.
 LIMITATION OF THE PRACTICE OF
PUBLIC ACCOUNTANCY
Single practitioners and partnerships (whether general or
limited) organized for the practice of public accountancy
shall be registered CPA in the Philippines.
A corporation type of organization is prohibited to engage in
practice of public accountancy.
 Rules on name

A CPA shall practice only under an individual, firm, or

partnership name allowed in accordance with Philippine laws
and shall not include any fictitious name, indicates
specialization or is misleading as to the type of
organization (proprietorship or partnership).
 Illustration on types of organization
and names
Individual – He/she shall do business under his registered name with BOA and PRC
and as printed in his/her CPA certificate (e.g. Mr. Rein Ronald C. Bercasio, CPA)

Firm (sole proprietorship) – They shall do business under their respective duly
registered and authorized firm name appearing in the registration documents
issued by the DTI or any proper government office/s. The firm name shall include
the real name of the sole proprietor as printed in his/her CPA certificate (e.g. Rein
Ronald C. Bercasio & Associates).

Partnership – They shall do business under their respective Partnership names as

indicated in their current Articles of Partnership and COR issued by SEC or under
the Partnership indicated in their Articles of Partnership in case of unregistered
partnerships.

It can be General Partnership (GP) or a limited liability partnership (LLP).

 Death, withdrawal, or resignation of
all other partners
In case of death, withdrawal or resignation of all other partners
in a partnership, the surviving or remaining partner may
continue to use the old partnership name for a period of not
more than two (2 years) after becoming a sole proprietorship.
Review Question
Review Question
 Accreditation to Practice Public
Accountancy
Certificate of Accreditation
This is a certificate under seal, issued by PRC upon the recommendation by BOA
pursuant to this revised rules and regulation, attesting that Individual CPA’s, including the
staff members thereof, firms, including the sole proprietors, and the staff members there of
and Partnership of CPAs including the partners and the staff thereof, are “duly
accredited” to practice public accountancy in the Philippines.

Requirement: CPAs must show evidence that they had acquired a minimum of three (3)
years of meaningful experience in any of the areas of public practice including taxation.
Meaningful experience
a. Commerce and Industry – significant involvement in general accounting,
budgeting, tax administration, internal auditing, liaison with external
auditors, representing his/her employer before the government agencies on
tax and matters related to accounting or any other related functions

b. academe/education – teaching for at least three trimesters or two

semesters subjects in either Financial accounting, business law and tax,
auditing problems, auditing theory, financial management and
management services. Provided, that the accumulated teaching experience
on these subjects shall not be less than three (3) school years;
c. Government - shall include significant involvement in general accounting,
budgeting, tax administration, internal auditing, liaison with the
Commission on Audit or any other related functions; and
d. public practice - shall include at least one year as audit assistant and
at least two years as auditor in charge of audit engagement covering full
audit functions of significant clients
VALIDITY OF ACCREDITATION
The registration shall be valid for a period of three
(3) years and may be renewed every three (3) years on
or before September 30 on the year of expiry upon
compliance of the requirements provided in this revised
rules and regulations.
ILLUSTRATION
The registration of applicants approved during any month of the
year shall expire on December 31 on the third year
following its approval.
(i.e. if the application of registration of ABC and Company
CPAs was approved on July 31, 2022, the registration shall
expire on December 31, 2024 and therefore it shall file for
renewal on or before September 30, 2024 for the three year
period beginning January 1, 2025 and shall apply on or before
September 30, 2027 for the next three (3) year period beginning
January 1, 2028 and so forth).
Review Question
Review Question
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.
 The seal of a CPA shall be circular in
form with a smaller circle within and
1.in the upper portion of the space
between the circles shall be engraved the
name of individual CPA, firm or
partnership as the case maybe,
2.the lower portion thereof shall be
engraved the CPA registration number of
individual CPA, proprietor of the firm and
the signing partner of the partnership
and
3.in the middle of the smaller circle
shall be engraved the letters “CPA”
Affixing the CPA’s seal and signature is an indication of
compliance by the CPA of the requisite accounting and auditing
standards and rules.
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,
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
Review Question
Penal Provision

Any person who shall violate any of the provisions of RA No. 9298 or
this 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
Review Question
RA 10912 CONTINUING PROFESSIONAL DEVELOPMENT of 2016

It is an act mandating and strengthening the continuing

professional development program for all regulated professions,
creating 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 and/or lifelong learning.
REQUIRED CPE CREDIT UNITS
Renewal of PIC
Requirement: Fifteen (15) credit units.
exemptions:
* professional working overseas (OFW’s)
* newly licensed professionals for the first
renewal cycle after obtaining their license
For accreditation
(initial and renewal)
Requirement: one hundred twenty (120) credit units

Minimum units under required competency areas

A. Technical competence 30 units

B. Professional skills 5 units
C. Professional values, ethics, and attitudes 5 units 40
units
Flexible CPD units 80 units
Required number of CPD units 120
units
ORGANIZATIONS AFFECTING
THE ACCOUNTANCY
PROFESSION
STANDARD-SETTING
BODIES
RA 9298 mandated PRC to create accounting and auditing
standard setting bodies to assist BOA in carrying out its
powers and functions in promulgating accounting and
auditing standards and generally accepted best practices.
Financial Reporting Standards Council
The FRSC shall be composed of fifteen (16) members. A chairman,
who had been or presently a senior accounting practitioner in any scope of
accounting practice and fourteen (15) representatives from the following:
BOA 1
COA 1
SEC 1
BSP 1
BIR 1
Finex 1
Insurance commission 1
PICPA
Public Practice 2
Commerce 2
Academe 2
Government 2 8
total 15
Auditing and Assurance Standards
Council (AASC)

The AASC shall be composed of fifteen (18) members. A chairman,

who had been or presently a senior practitioner in public accountancy
BOA (17) representatives from1the following:
and fourteen
COA 1
SEC 1
BSP 1
ACPAPP 1
Insurance Commission 1
PICPA
Public Practice 9*
Commerce 1 *shall be equally distributed
Academe 1 12 among big, medium, and
TOTAL 17 small practitioners.
Education Technical Council (ETC)
ETC was established to assist BOA in
a. Carrying out its powers and functions provided in ensuring that all
higher education instruction and offering of accountancy are in
compliance with the requirements of CHED or other government
authorized offices
b. Attaining the objective of continuously upgrading the accountancy
education in the Philippines to make the Filipino CPAs globally
ETC shall be composed of 7 members with a chairman who
competitive.
had been presently a senior accounting practitioner in
academe
BOA 1
PICPA
Public Practice 1
Commerce 1
Academe 2*
*shall be equally distributed
Government 1 5
among the private and
TOTAL 6
public schools
QUALITY REVIEW COMMITTEE (QRC)
QRC was mandated to be created to assist BOA in
a. Conduct quality review on applicants for registration to practice
public accountancy and render a report which shall be attached to
the application for registration
b. Recommend to BOA the revocation of the COR and PIC of CPA’s in
public practice of accountancy.
QRC shall be composed of 7 members, with a chairman who
had been presently a senior accounting practitioner in the
public accountancy
BOA 1
PICPA
Public Practice 2
Commerce 1
Academe 1
Government 1 5
TOTAL 6
Important notes:
Term of office: chairman and members of FRSC,
AASC, QRC, and ETC shall have a term of three
years renewable for another term.

Composition: FRSC and AASC shall review its

composition annually and may recommend to BOA
and PRC a more suitable representation as they
may deem fit.

Actual Creation: only FRSC and AASC were actually

created and still existing up to date.
Review Question
Review Question
ACCREDITED
PROFESSIONAL
ORGANIZATION
Unity and Integration of
CPA’s
All registered CPAs shall be united and
integrated through their membership in a
one and only registered and accredited
national professional organization and
licensed certified public accountants, which
shall be registered with the Securities and
Exchange Commission as a nonprofit
corporation and recognized by BOA,
subject to the approval by PRC.
Benefits and privileges and
not a bar to membership in
other org’s
The members in the APO 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.
PHILIPPINE INSTITUE OF
CERTIFIED PUBLIC
ACCOUNTANT
PICPA as APO
PICPA, a non-stock and not-for-profit organization, was
recognized by PRC as the APO on October 2, 1975 per
Accreditation No. 15.
It was established for:

a.Benefit and welfare of the

CPAs
b.Advancement of their
profession, and
c.Attainment of other professional
Certificate of
Accreditation
Renewal of Certificate of
Accreditation once every three
years.
Conditions for Continuity as
APO
Primary Purpose

It was established for:

a.Benefit and welfare of the

CPAs
b.Advancement of their
profession, and
Membership
It is open to all registered CPAs
from all four sectors.

It shall have a creditable plan to

enlist into active membership
within 3 years, at least majority
of the CPA’s.
National directors
There shall only be fifteen (15) national
directors, unless there is a valid reason to have
additional representation.

In practice, there are twenty-five (25)

national directors equitably distributed in four
(4) major geographical areas (Luzon, Visayas, Mindanao,
and NCR)
Chapters and regions
PICPA shall have adequate
chapters and regions in major areas
in the Philippines to effectively attend
to the needs of its members.
Full time executive
director
It shall have a full-time career
executive Director who shall
implement the policies promulgated
by the PICPA BOD and shall have direct
supervision over the PICPA
Secretariat.
Management of Financial
Resources
It shall be judicious and prudent in
the management of its financial
resources and for this purpose its
chapter/region/national office and their
respective foundation shall keep
proper books of accounts and
submit audited financial
statements.
PRC Accredited Non-stock
corporation
It is duly registered as a non-stock
corporation or association by the
SEC.

It has paid the prescribed

accreditation fee.
Grounds for Cancellation of
Accreditation (just read)
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 to
the profession
e. Failure to renew its accreditation after a lapse of
unreasonable period.
We would like to thank the
following sponsors:
Other Organizations

nACPA GACPA
Continuing Professional Education
CouncilsProfessional Development Council for
Continuing
Accountancy
 Composition
It shall be composed of a chairman and two (2)
members.

• The chairperson shall be chosen among the

members of BOA
• 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 organization, or deans or
department heads of schools, colleges, or
POWERS AND FUNCTIONS
A.Accreditation
i. of CPE providers
ii. of CPE programs
iii.for exemptions from CPE
requirements
B. Monitor implementation
C. Upgrade criteria for accreditation
Terms of Office
Co-terminus with their
respective incumbency in BOA,
PICPA and organization.
Delegation to
PICPA
a.Processing of application
b.Keeping of records for CPE
providers/programs
c.Other related functions
Regulatory Agencies
Professional
Regulation
Commission
administers,
(PRC)
PRC is the agency that
implements and
enforces the regulatory
policies of the government with
respect to the regulation and
licensing of the various professions
 Commission on
Audit

COA is considered as the Philippines’ Supreme

Audit Institution. Its mission is to ensure
accountability for public resources, promote
Securities and Exchange
Commission

SEC 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 power to establish
rules for any CPAs associated with audited
financial statements submitted to PRC and also
Bureau of Internal
Revenue (BIR)
BIR has the primary objective of raising
revenues for the government. It also prescribes
additional requirements for audited financial
statements that accompany tax returns of various
entities. Details of this agency are discussed in
taxation subject.
Bangko Sentral ng
Pilipinas (BSP)
BSP has the primary objective of maintaining
price stability conducive to a balanced and
sustainable economic growth. It also aims to
promote and preserve monetary stability and the
convertibility of the Philippine peso.

BSP provides policy directions in the

areas of money, banking, and credit. It
supervises operations of banks and exercise
regulatory powers over non-bank financial
institutions with quasi-banking functions.
Insurance
commission

Insurance commission promulgates and

implements policies, rules, and regulations
governing the operations of entities engaged in
insurance and pre-need activities. It also
prescribes additional requirements regarding audits