Isabella Carter
The practice of accountancy in the Philippines is governed by the Board of Accountancy, which is composed of a chairman and six members appointed by the President of the Philippines. The Board is responsible for issuing certificates of accreditation to Certified Public Accountants (CPAs) and Public Accountants (PAs), with both certifications providing the same privileges and prerogatives in practice. The Philippine Institute of Certified Public Accountants (PICPA) was established to protect the CPA certification and promote professional ethics, with the integration of the accounting profession completed in 1987. The Professional Regulation Commission (PRC) also plays a crucial role in regulating the practice of accountancy, including the registration and accreditation of CPAs and firms. The Philippines has adopted international standards, such as IFRS, and is the first country to be included under the WTO's policy of liberalization of services, allowing Filipino accountants to compete globally.
| Characteristics | Values |
|---|---|
| Law regulating the practice of accountancy in the Philippines | RA No. 9298, RA No. 9198, RA No. 9928, RA No. 9892 |
| Body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines | Board of Accountancy, Philippine Institute of Certified Public Accountants, Securities and Exchange Commission, Financial Reporting Standards Council |
| Three main areas in the practice of the accountancy profession | Public accounting, private accounting, managerial accounting, auditing, taxation, financial accounting, corporate accounting, government |
| Who can practice public accounting? | Single practitioners and partners of partnerships formed for the practice of public accounting shall be registered CPAs in the Philippines |
| Who issues the certificate of accreditation to CPAs in public practice? | The Professional Regulation Commission upon favorable recommendation of the Board of Accountancy |
| Requirements to receive the certificate of accreditation | Registrant must have acquired a minimum of three years of meaningful experience in public practice |
| Who can be admitted to the examinations or be registered as a Certified Public Accountant? | Only those who can prove they are not foreigners |
| Who is eligible to become a member of the Board of Accountancy? | Appointed by the President of the Philippines upon recommendation by the Professional Regulation Commission |
| Who can be removed from the Board of Accountancy? | Any member whose certificate to practice has been revoked or suspended, or for neglect of duty or incompetence or other just cause |
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What You'll Learn
Certified Public Accountant Examination
The Board of Accountancy in the Philippines is composed of a chairman and six members, all of whom are appointed by the President of the Philippines upon recommendation by the Professional Regulation Commission (PRC). The Board of Accountancy is responsible for issuing certificates of Public Accountants (PA) to those who have not qualified as Certified Public Accountants (CPAs). The CPA certification is a prestigious and highly regarded qualification for accountants in the Philippines.
The CPA examination is a rigorous and comprehensive test that assesses candidates' knowledge and skills in various areas of accounting. It covers a wide range of topics, including financial accounting, management accounting, taxation, auditing, and ethics. The exam is designed to ensure that CPAs in the Philippines have the necessary skills and expertise to provide valuable services to businesses and individuals.
To be eligible to take the CPA examination, candidates must meet certain requirements. They must hold a degree in accounting or a related field from an accredited institution and have completed a minimum number of hours of accounting education. Additionally, candidates must provide transcripts, valid identification, and proof of relevant work experience. It is important to note that the specific requirements may vary and it is recommended to refer to the official sources for the most up-to-date and complete information.
The CPA examination is typically administered by the Board of Accountancy or the PRC and consists of multiple sections, each focusing on a specific area of accounting. Candidates are required to pass each section with a minimum score to obtain their certification. The exam may be offered in different formats, including multiple-choice questions, short-answer questions, and practical case studies, testing both theoretical knowledge and practical application skills.
Once candidates have successfully passed the CPA examination and met all the necessary requirements, they are awarded the CPA certification. This certification is a mark of distinction and signifies that the individual possesses the knowledge, skills, and ethical foundations to practice as a Certified Public Accountant in the Philippines. CPAs are highly sought-after professionals who can find employment in various sectors, including public accounting firms, corporations, government agencies, and educational institutions.
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Board of Accountancy composition
The practice of accountancy in the Philippines is governed by the Professional Regulation Commission (PRC), the Board of Accountancy (BOA), and the Philippine Institute of Certified Public Accountants (PICPA). The BOA was established under Republic Act 3105 on March 17, 1978, to regulate the practice of accounting.
The BOA is composed of a chairman and six members appointed by the President of the Philippines upon the recommendation of the PRC. The Board elects a vice-chairman from among its members for a one-year term. The Chairman presides over all meetings of the Board, and in the event of a vacancy, the vice-chairman assumes the duties and responsibilities of the Chairman until a new one is appointed or until the end of the term.
The BOA is responsible for setting and promulgating professional standards and ethics in the practice of the accounting profession. It works with the PICPA to ensure that the profession maintains high professional and ethical standards. The BOA also conducts quality assurance (QA) reviews for all auditors in the Philippines, except for audits of listed companies, which are reviewed by the Securities and Exchange Commission (SEC).
The BOA requires all Certified Public Accountants (CPAs) to sign the Integrity Pledge as a prerequisite for registration with the BOA and to practice in the Philippines. It also coordinates with the Civil Service Commission to require that only CPAs be appointed as accountants, auditors, or hold allied positions in the government.
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Registration of CPA firms and partnerships
The Philippine Institute of Certified Public Accountants (PICPA) is the Accredited Integrated Professional Organization (AIPO) of CPAs by the Professional Regulation Commission (PRC). The Board of Accountancy is composed of a chairman and six members appointed by the President of the Philippines upon recommendation of the PRC. The Board elects a vice-chairman from among its members for a term of one year.
To ensure compliance of their staff and partners with standards and regulations of the practice, the Board moved for the registration of firms or partnerships of CPAs with both the PRC and the Board of Accountancy. Certified Public Accountants and firms or partnerships of certified public accountants, including partners and staff members, must register with the PRC and the Board of Accountancy. This registration must be renewed annually on or before September 30 of each year.
To register a CPA firm or partnership in the Philippines, the first step is to register the business with the Securities and Exchange Commission (SEC) and obtain a certificate of registration. A Mayor's Permit must also be submitted before processing a Certificate of Registration with the BIR, as this is a requirement to obtain such a certificate. Registering with the Bureau of Internal Revenue will give permission to issue official receipts, register books of accounts, and obtain a separate Tax Identification Number.
Once the business has begun its operations and hired employees, registration with other government-mandated agencies must be completed. This includes registering employees with the Philippine Health Insurance Corporation (PhilHealth) and remitting their share of contributions to the agency. Employers must also register employees who earn at least Php4,000 per month with the Home Development Mutual Fund (HDMF), which provides members with housing loans through an effective saving scheme.
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Functions of the Board of Accountancy
The Board of Accountancy in the Philippines is composed of a chairman and five to six members, all of whom are appointed by the President of the Philippines. The Board is responsible for conducting examinations to qualify Certified Public Accountants (CPAs) and for issuing certificates of Public Accountants (PA) to those who have not qualified as CPAs. The Board also determines the rules and regulations for the practice of accountancy in the country, including the ethical and professional standards of the profession.
One of the key functions of the Board of Accountancy is to study the conditions affecting the practice of accountancy in all parts of the Philippines. This includes maintaining the ethical and professional standards of the accounting profession and issuing subpoenas or subpoena duces tecum to witnesses as required in the discharge of its duties. The Board has the power to promulgate rules and regulations necessary for the proper practice of accountancy in the Philippines.
The Board of Accountancy also works closely with the Philippine Institute of Certified Public Accountants (PICPA) to strengthen the profession. It has made representations with the Civil Service Commission to require that only CPAs be appointed as accountants, auditors, or hold allied positions in the government. The Board also coordinates with PICPA to set professional standards for the practice of accountancy in the country.
Additionally, the Board of Accountancy is responsible for the international recognition of Philippine accountants. The profession was the first in the country to be included under the World Trade Organization's (WTO) policy of liberalization of services, allowing Filipino accountants to compete globally. The Board administers the profession with integrity, ensuring that it acquires a global perspective.
The Board of Accountancy is further supported by the Financial and Sustainability Reporting Standards Council (FSRSC), established by the Professional Regulatory Commission (PRC) to assist the Board in promulgating accounting standards in the Philippines. The FSRSC develops and pursues the technical agenda for setting these standards, receiving financial support from the PICPA Foundation.
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Integration of the Accountancy Profession
The Professional Regulation Commission (PRC) is responsible for the integration of the accountancy profession in the Philippines. The PRC works with the Board of Accountancy, which is composed of a chairman and six members appointed by the President of the Philippines upon recommendation of the PRC. The Board of Accountancy is responsible for issuing certificates of accreditation to Certified Public Accountants (CPAs) in public practice, provided the registrant has acquired a minimum of three years of meaningful experience.
The integration of the accountancy profession in the Philippines involves the adoption of rules and regulations to raise the standards of the profession and enable it to discharge its public responsibilities more effectively. This includes the regulation of CPA firms and partnerships to ensure compliance with standards and regulations. The PRC and the Board of Accountancy require the registration of firms or partnerships of CPAs, with only registered CPAs allowed to represent themselves as such or use the title "C.P.A.".
The Philippine Institute of Certified Public Accountants (PICPA), founded in 1937, plays a crucial role in the integration of the accountancy profession. PICPA was established to protect the Certificate of Certified Public Accountant and offer membership exclusively to CPAs. In 1957, PICPA was accredited by the PRC as the bona fide professional organisation representing CPAs in the country, and it has since worked together with the Board to strengthen the profession.
The integration of the accountancy profession in the Philippines also involves the issuance of a Code of Professional Ethics, guidelines for mandatory continuing professional education (CPE) programs for CPAs, and the establishment of standards-setting councils. The profession was included under the World Trade Organization's (WTO) policy of liberalisation of services, allowing Philippine accountants to compete globally. The PRC and the Board of Accountancy also ensure the representation of CPAs in the civil service, requiring that only CPAs be appointed as accountants and auditors or hold allied positions in government.
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Frequently asked questions
The Board of Accountancy is composed of a chairman and six members appointed by the President of the Philippines upon recommendation by the Professional Regulation Commission. The Board is responsible for issuing certificates of Public Accountants (PA) to those who have not qualified as Certified Public Accountants (CPA) under Act No. 3264.
The practice of public accounting in the Philippines requires registration as a Certified Public Accountant (CPA). Single practitioners and partners in a partnership for public accounting must be registered CPAs. The Professional Regulation Commission issues certificates of accreditation to CPAs in public practice who have acquired a minimum of three years of meaningful experience.
The Philippine Institute of Certified Public Accountants (PICPA) is a professional organisation representing CPAs in the Philippines. It was founded by a group of Certified Public Accountants to distinguish themselves from those who received the certificate of Public Accountants (PA) under Act No. 3264.
