Accountancy Act of 2004

PHILIPPINE ACCOUNTANCY ACT OF 2004 REPUBLIC ACT No. 9298 Therefore, accountants should be 1. Competent, 2. Virtuous, 3. Productive and 4. Well rounded professionals Section 1 states that this act shall be known as the Philippine Accountancy Act of 2004 NATION BUILDING The Philippines recognize that accountants are important for: Standard of Practice and Service of Accountants: DEVELOPMENT o o o o Excellent Qualitative World Class Globally competitive OBJECTIVE OF RA 9298: The Standardization and Regulation of accounting education The Examination and Registration of Certified Public Accountants The supervision, control, and regulation of the practice of accountancy in the Philippines. SCOPE OF PRACTICE a. Practice of Public Accountancy b. Practice in Commerce and Industry c. Practice in Education/Academe d. Practice in Government PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY PROFESSIONAL REGULATION COMMISSION (PRC) Supervise and administratively control the Board of Accountancy. All records of the Board, including applications for examination and administrative and other investigative cases conducted by Board of Accountancy. 6 Members BOARD OF ACCOUTANCY (BOA) To be appointed by the President of the Philippines from a list of three (3) recommendees for each position and ranked by the PRC from a list of (5) nominees for each position submitted by the accredited national professional organization of certified public accountant. 1 Chairman The PRC shall designate the secretary of the BOA and shall provide the secretariat and other support services to implement the provisions of RA 9298 The Board shall elect a vice-chairman from among each member for a term of one (1) year. Qualifications of a member of the Board of Accountancy: 1. Must be a natural-born citizen and a resident of the Philippines. 2. Must be a duly registered CPA with at least ten (10) years of work experience in any scope of practice of accountancy. 3. Must be a good moral character and must not have been convicted of crimes involving moral turpitude. 4. Must not have any pecuniary interest, directly or indirectly, in any school, college, university or institution conferring an academic degree necessary for the 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 a time of his/her appointment to the Board. NOTE! 6 Members BOARD OF ACCOUTANCY (BOA) Term of three (3) years 1 Chairman No person who has served 2 successive complete terms shall be eligible for reappointment until the lapse of one (1) year. POWERS AND FUNCTIONS OF THE BOARD OF ACCOUTNANCY 1. 2. 3. 4. 5. 6. 7. 8. To prescribed and adopt the rules and regulations. To supervise the registration, licensure, and practice of accountancy To administer oaths To issue, suspend, revoke, reinstate the Certificate of Registration for the practice of the accountancy profession. To adopt an official seal of the Board of Accountancy. To prescribe and/or adopt a Code of Ethics for the practice of accountancy. To monitor the conditions affecting the practice of accountancy and adopt measures and best practices for enhancement and maintenance of high professional and ethical standard. Domestic accounting and auditing standards rules and regulations shall include the international accounting and auditing standards. To conduct an oversight into the quality of audits of financial statements. 9. To investigate violations for the purpose, to issue summons to violator or witness thereof and compel their documents. 10. May such investigation to determine whether any person has violated any provisions of the law, any accounting or auditing standards or rules. 11. To issue a cease or desist order to any person, association, partnership or corporation engaged in violation. 12. To punish for contempt. 13. To prepare, adopt, issue or amend the syllabi of the subjects for examination. 14. To ensure the coordination with the CHED or other authorized government offices that all higher educational instruction and offering of accountancy comply with policies, standards and requirements of course. 15. 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 BOA to achieve the objectives and purposes of this Act. GROUNDS FOR REMOVAL OF MEMBERS OF THE BOA 4. Neglect of Duty or Incompetence. 1. Final judgement of crimes involving moral turpitude. 3. Violation or tolerance of any violation of RA 9298 and its implementation rules and regulations or the CPA code of ethics and technical and professional standards of practice for CPA. 2. Manipulation or rigging of the CPA Licensure examination results, disclosure of secret and confidential information in the examination questions prior to the conduct of the examination or tampering of grades. ANNUAL REPORT PRESIDENT OF THE PHILIPPINES PROFESSIONAL REGULATION COMMISSION Annual Reports received by the President includes: 1. Detailed account of its proceedings and accomplishment during the year. 2. Making recommendations for the adoption of measures that will upgrade and improve the conditions affecting the practice of accountancy in Philippines. The Board of Accountancy, at the close of each Calendar year, submit an annual report to the President of the Philippines through the PRC. BOARD OF ACCOUNTANCY EXAMINATION, REGISTRATION AND LICENSURE Filipino Citizen Good moral character Qualifications of Exam Applicant Scope of Examination Holder of the degree BS Accountancy Not convicted of any criminal offense involving moral turpitude Article 3, Sec. 15 Theory of Accounts Business Law and Taxation Management Services Auditing Theory Auditing Problems Practical Accounting Problem I Practical Accounting Problem II Note: The BOA, subject to the approval of the PRC, may revise or exclude any of the subjects and their syllabi, and ass new ones as the need arises. CPA Examinations Failed Licensure Examination RESULTS Ten (10) calendar days After 2 Failed attempts, the candidate shall take refresher course for him to take another CPALE. Conditional (may be extended for just cause) To pass the CPALE, obtain general average of 75%, with no grade lower than 65% in any given subject. In the event a candidate obtains the rating of 75% and above in at least majority of subjects, he/she shall receive conditional status. If candidate fails the general average (75%) and rating (65%) in each subject, then the status is “failed.” Passed Oath FOR PASSERS OF CPA LICENSURE EXAM ISSUANCE TO PASSERS CERTIFICATE OF REGISTRATION - issued to examinees who pass the CPALE - shall bear the signature of the chairperson of the PRC and the chairman and members of the BOA, stamped with the official seal of the PRC and BOA, indicating that the person is entitled to the practice of CPA profession. PROFESSIONAL IDENTIFICATION CARD - shall bear the registration number, date of issuance, expiry date, duly signed by the chairperson of the Professional Regulation Commission, shall likewise be issued to every registrant renewable every three (3) years. SUSPENSION AND REVOCATION Article III, Sec. 23 to 24. If any successful examinee convicted by the court of a criminal offense involving moral turpitude or guilty of immoral and dishonorable conduct t any person or unsound mind, the Board of Accountancy shall have the power, upon the notice and hearing, to suspend or revoke the practitioner’s Certificate of Registration and Professional I.D. REINSTATEMENT, REISSUANCE and REPLACEMENT OF REVOKED or LOST CERTIFICATES Article III, Sec. 25. The Board of Accountancy 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 discretion, exempt the application from taking another examination. ACCOUNTANCY FIELDS PRACTICE IN PUBLIC ACCOUNTANCY Certificate of Accreditation Requires three (3) years of meaningful experience in any field of accounting practices. LIMITATIONS Article IV, Sec. 32. Continuing Professional Education (CPE) All CPAs shall abide by the requirements, rules and regulations on CPE to be promulgated by the BOA, in coordination with the accredited national professional organization of CPAs or any duly accredited educational institution. AUDITING TAXATION MANAGEMENT ADVISORY SERVICES No Corporation form is allowed to be registered for the practice of public accountancy. PRACTICE IN COMMERCE AND INDUSTRY Also known as Private Accounting. This refers to employment in the private sector involved in decision making requiring professional knowledge in the science of accounting. A public practitioner is into public interest, thus, serving the public. The role of a CPA is to provide objective financial advice, auditing and assurance services to clients. If CPAs were to form Corporation, it would compromise the independence and objectivity in serving the public interest. PRACTICE IN EDUCATION OR ACADEME Employment in an education institution which involve teaching of accounting, auditing, management advisory services, taxation, finance, and other related subjects. PRACTICE IN THE GOVERNMENT Employment to a position within the government or GOCC that involves the profession of accounting which decision making requires professional knowledge in science of accounting. Practice in Commerce and Industry, Education or Academe, Government are considered in Private Practice