PHILIPPINE ACCOUNTANCY ACT OF 2004
• DISCUSS HOW THE PRACTICE OF ACCOUNTANCY DIFFERS ACROSS THE SECTORS
OF PUBLIC ACCOUNTANCY, COMMERCE AND INDUSTRY, EDUCATION/ACADEME, AND
GOVERNMENT.
The scope of practice of accountancy includes at least four (4) sectors which differs from each
other:
Practice of Public Accountancy
This involves individuals or staff members in accounting or auditing firms who present
themselves as skilled in accounting and offer services such as auditing financial transactions,
preparing, signing, or certifying reports like balance sheets for clients, designing and revising
accounting systems, preparing income tax returns related to accounting procedures,
representing clients before government agencies on tax and accounting matters, and providing
professional assistance in recording and presenting financial data.
Practice in Commerce and Industry
This pertains to individuals involved in decision-making roles that require professional
accounting knowledge, or positions that specifically require the holder to be a certified public
accountant.
Practice in Education/Academe
This includes individuals in educational institutions who teach subjects such as accounting,
auditing, management advisory services, finance, business law, taxation, and other related
technical subjects. Notably, members of the Integrated Bar of the Philippines are permitted to
teach business law and taxation subjects.
Practice in Government
This encompasses individuals holding positions in government or government-owned and/or
controlled corporations where decision-making requires professional accounting knowledge, or
where being a certified public accountant is a prerequisite.
The practice of accountancy differs across sectors due to the distinct objectives, regulatory
environments, and the nature of the information they handle.
• STATE SOME OF THE POWERS AND FUNCTIONS OF THE MEMBERS OF THE
PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY.
Section 9 of the R.A. No. 9298 outlines the specific powers, responsibilities, and functions of the
Board, There are at least fifteen (15) of them specifically pointed out in the Republic Act No.
9298 but these are just a few of the powers and functions of the members of the BOA:
Prescribing and adopting a Code of Ethics for certified public accountants.
Supervising and regulating the registration, licensure, and practice of
accountancy in the Philippines.
Issuing, suspending, revoking, or reinstating the certificate of registration for
the practice of the accountancy profession.
Maintaining a roster of certified public accountants.
Ensuring the development of the professional competence of certified public
accountants.
Investigating violations of the Act and its rules and regulations, and for this
purpose, issuing summons, subpoenas, and subpoenas duces tecum.
Adopting measures to enhance the professional competence and ethical
standards of certified public accountants.
Ensuring that all certified public accountants properly indicate their certificate
of registration number, professional identification card number, and other
official information on the documents they sign or issue.
• ENUMERATE THE QUALIFICATIONS OF THE APPLICATION FOR THE CPA LICENSURE
EXAMINATIONS.
As per Section 14 of R.A. No. 9298, an applicant must meet the following qualifications:
Be a Filipino citizen.
Be of good moral character.
Be a holder of a Bachelor's Degree in Accountancy conferred by the school, college,
academy or institute duly recognized and/or accredited by the CHED or other authorized
government offices.
Not have been convicted of any criminal offense involving moral turpitude.
• EXPLAIN HOW THE RATING IN THE CPA LICENSURE EXAMINATION IS DETERMINED.
Section 16 of the Act states:
"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 grade 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 (2) years from preceding examination:
Provided, further, That if the candidate fails to obtain at least a general average of seventy-five
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.
• DISCUSS THE LIMITATION OF THE PRACTICE OF PUBLIC ACCOUNTANCY.
According to Section 28 of R.A. No. 9298:
"Single practitioners and partnerships for the practice of public accountancy shall be registered
certified public accountants in the Philippines: Provided, That from the effectivity of this Act, a
certificate of accreditation shall be issued to certified public accountant in public practice only
upon showing, in accordance with rules and regulations promulgated by the Board and
approved by the Commission, that such registrant has acquired a minimum of three (3) years
meaningful experience in any of the areas of public practice including taxation: Provide, further,
that this requirement shall not apply to those already granted a certificate of accreditation prior
to the effectivity of this Act. The Securities and Exchange Commission shall not register any
corporation organized for the practice of public accountancy."
The limitation on the practice of public accountancy exists primarily to protect the public interest.
By restricting this practice to qualified and accredited CPAs, it aims to ensure that individuals
and entities relying on financial statements and accounting services receive accurate, reliable,
and ethically prepared information. This regulation helps maintain the integrity of financial
reporting and promotes trust in the accountancy profession.
