Philippine Accountancy Act of 2004 RA 9298 and Implementation Rules and
Regulations
Repealed PD 692 as Revised Accountancy Law
Objectives:
The standardization and regulation of accounting education.
The examination for registration of certified public accountants.
The supervision, control and regulation of the practice of accountancy in the
Philippines.
Note: Umbrella regulations of all CPAs or Mother Regulation or Material
Article 1: Discussion of the Name
Practice of Public Accountancy:
One who in his individual capacity, or as a partner or a staff member in an accounting or
auditing firm.
Holding himself as one skilled in the knowledge, science, and practice of accounting
and as a qualified person to render professional services as a CPA, or offering or
rendering, or both, to more than one client on a fee basis, or otherwise, services such
as:
1. Audit or verification of financial transactions and accounting records
2. Preparation, signing or certification for clients of reports of audit
3. Design, installation, review and revision of accounting system.
4. Represents his/her client before government agencies on matters related
Practice in Commerce and Industry
One who is involved in decision making requiring professional knowledge in the science
of accounting, as well as the accounting aspects of finance or taxation.
One who represents his/her employer before government agencies on tax and other
matters related to accounting.
One when such employment or position requires the holder to be a CPA involved in
supervision of recording of financial transactions, preparation of financial statements,
coordination with external auditors for financial statements audit.
Practice in Education or Academe
One who is in an educational institution which involved teaching of accounting, auditing,
management advisory services, accounting aspect of finance, business, law and
taxation, and other related subjects. Provided that members of the Integrated Bar of
Philippines, may be allowed to teach law and taxation subjects provided further that the
position of either the dean or department chair or its equivalent that supervises the BSA
Program of an educational institution is deemed to be in practice of accountancy.
Practice in Government
One who holds or is appointed to a position in an accounting professional group in
government or in a government-owned and/or controlled corporation including those
performing proprietary functions, where decision making requires professional
knowledge in the science of accounting.
Professional Regulatory Board of Accountancy (under Professional Regulation
Commission)
Composed of a Chairman and Six members to be appointed by the President of the
Philippines from a list of 3 recommendees and ranked by PRC from list of 5 nominees.
Term of Office-3 Renewable for another term, lapse of 1 year. No person shall serve the
Board for more than 12 years.
Qualifications of the members of the Board:
1. Must be a natural-born citizen and resident of the Philippines
2. Must be a duly registered CPA with at least 10 years work experience in practice
of Accountancy in the Philippines.
3. Must be of good moral character and must not have been convicted of crimes
involving moral turpitude.
4. Must not have any pecuniary interest in any school, college, university of
institution offering academic degree.
5. Must not be a Director or Officer of APO at the time of appointment.
Grounds for Suspension or removal of Members of the Board:
1. Neglect of duty or Incompetence
2. Violation or tolerance of any Violation of the Act
3. Final Judgment of Crimes involving moral turpitude
4. Leak of Board Exam Answers
Financial Reporting Standards Council (FRSC): Accounting Standard setting Body
Auditing and assurance Standards Council (AASC): Auditing Standard setting Body.
Education Technical Council (ETC): Created by PRC upon recommendation of BOA.
Assist the Board in the attainment of the objective of continuously upgrading
accountancy education in the Philippines to make the Filipino CPAs globally
competitive.
Examination, Registration and Licensure
The Certified Public Accountant Examination
Qualifications:
1. Is a Filipino Citizen
2. Is of good moral character
3. Holder of degree of Bachelor of Science in Accountancy conferred by a school,
college, and academy or institute duly recognized and/or accredited by CHED or
other authorized government offices.
Scope of Examination
1. Financial Accounting and Reporting
2. Advanced Financial Accounting and Reporting
3. Management Advisory Services
4. Auditing
5. Taxation
6. Regulatory Framework for Business Transaction
Passed: General Average of 75% without no grade lower than 65%
Failed: General Average of less than 75% even he or she has no grade lower than 65%
Conditioned: General Average of 75% or above but remaining subjects obtained a
rating of less than 65%, majority of the subjects has a rating of 75% or above.
Report of Rating
The Board shall submit to the Commission the ratings obtained by each candidate
within TEN days after the examination, unless extended for just cause.
Oath
All successful candidates in the examination shall be required to take an oath of
profession before any member of the Board of any government official authorized
Certificate of registration and Professional Identification card is issued
Refusal of Certificate of Registration and Professional Identification Card
1. Convicted by a court
2. Unsound
Suspension and revocation
1. Unprofessional or unethical conduct
2. Malpractice
3. Violating the Provisions of RA 9298
Reinstatement, Reissuance and Replacement of revoked
Limitation of the Practice of Public Accountancy
1. Single Practitioners
2. Partnership
Meaningful Experience
1. Commerce and Industry- involvement in general accounting, tax administration,
internal auditing, liaison with external auditors, representing his/her employer
before government agencies on tax.
2. Academe or Education
3. Government
4. Public Practice
Accreditation in the Practice of Public Accountancy
Registration: valid for 3 years from the date of application for accreditation is approved.
Renewal: on or before September 30 on the year of expiry upon compliance of the
requirements.
