Practice and Regulation of the Accountancy Profession Flashcards
Refusal to Issue Certificate of Registration
- Convicted by a court of competent jurisdiction of a criminal offense.
- Guilty of immoral and dishonorable conduct
- Of unsound mind
RA 9298
The Philippine Accountancy Act of 2004
Qualifications for the members of the BOA
- Natural Born Citizen and Resident
- At least 10 years of meaningful experience in any sector of practice
- Have good moral character and was not convicted of any crime
- must not have any pecuniary interest in any school or institution conferring the academic degree; and
- Not a director or officer of any APO at time of appointment
The death or disability of an individual CPA and/or dissolution and liquidation of a firm or partnership of CPAs shall be reported to the BOA not later than ___ days from date of such death, dissolution, or liquidation
30 Days
The APO shall submit with complete documentation to the Commission not later than ____ prior to the expiry of the term of an incumbent chairman or member
60 Days
Term of the Commission Proper of Commission on Audit
7 Years
Qualifications of the Chairman and Two Commissioners of the Commision on Audit
- Natural Born Citizen and Resident of the Philippines
- At least 35 years of age
- CPAs with at least 10 years of work experience
Practice in Education/Academe
A person in an educational institution which involves teaching accounting, auditing, management services, finance, RFBT, Taxation and other related subjects.
How many members are in the FRSC
1 Chair and 14 members composed of
1 BOA
1 COA
1 SEC
1 BSP
1 BIR
1 Major organization composed of prepares and users of financial statements
2 Orgs in Public Practice
2 Orgs in Private Practice
2 Orgs in Academe
2 Orgs in Government
Ratings in CPALE
PASSING- General Average of 75 and no grade lower than 65
CONDITIONAL- General Average of 75, has a grade less than 65 or both but has obtained at least 75 in majority (4 out of 6) of the subjects covered
FAILING- Did not fall under Passing or Conditional
Scopes of Accountancy Practice
Public Accountancy
Commerce and Industry (Private Practice)
Education or Academe
Government
CPD Requirements
Every 3 years, upon renewal, a CPA must accomplish 120 units of Continuing Professional Development Units (CPD)
Subjects of CPALE
- Management Services
- Auditing (Theory and Problem)
- Financial Accounting and Reporting
- Regulatory Framework for Business Transactions
- Taxation
- Advanced Financial Accounting and Reporting
Composition of the BOA
1 Chair and 6 members appointed by the President of the Philippines
QRC Members and Functions
1 Chairman and 6 Members composed of
1 BOA
2 Orgs in Public Practice
1 Org in Commerce and Industry
1 Org in Academe
1 Org in Government
Functions:
- Conduct Quality review on applicants of registration to practice public accountancy
- Recommend to board the revocation of COR and Id cards
Practice in Commerce and Industry
A person involved in the decision making requiring professional knowledge in accounting. Renders service to his employer and represents employer in front of government agencies
Grounds for Suspension or removal from the Board
- Neglect of duty or incompetence
- Violations or tolerance of any violation of the RA 9298
- Final judgement of crimes
- Manipulation and rigging of CPALE prior to conduct of said examination.
Objectives of RA 9298
- Standardization and regulation of accounting education
- Examination for registration of CPA
- Supervision, control and regulation of the accountancy profession in the Philippines
ETC Members and Functions
1 Chairman and 6 members composed of
1 BOA
1 Org in Public Practice
1 Org in Commerce and Industry
2 Orgs in Academe
1 Org in Government
Functions:
- Upgrading the accountancy education to make the Filipino CPAs globally competitive
A CPA employed by an individual CPA, Firm, or Partnership engaged in the practice of public accountancy below the rank of the Individual CPA, sole proprietor or partner as the case maybe
Staff Member
Practice in Commerce and Industry
A person involved in the decision making requiring professional knowledge in accounting. Renders service to his employer and represents employer in front of government agencies.
Powers of the BOA
- Prescribe and adopt the rules and regulations necessary
- Supervise the registration, licensure, and practice of Accountancy in the Philippines
- Administer oaths
- Issue, suspend, and revoke CORs
- Adopt an official seal of the board
- Adopt a Code of Ethics
- Adopt new accounting and auditing standards which will enhance the profession
- Conduct an oversight on the quality of Audits through Quality Control Review
- Investigate violations of the act and issue cease and desist orders
- Punish for contempt of the board (direct and Indirect)
- Prepare and adopt a syllabi for accounting education
- Coordinate with CHED that all policies are complied with
- Exercise the necessary power provided by law necessary to carry out the powers of the Board.
Refresher Course on Failed Examinees
After failing TWO (2) COMPLETE EXAMINATIONS, applicant must take a refresher course of 24 units in accredited institution.
Conventions
Gatherings of professional which shall include among others conferences symposia or assemblies for round table discussions
Special/Temporary Permit given to foreign CPA
Issued by BOA in following instances:
1. A foreign CPA called for consultation for a specific purpose which is deemed essential for the development of the country because no other CPA is qualified for that purpose
2. A foreign CPA engaged as professor or critic in fields essential to accountancy education (confined to teaching only)
3. A foreign CPA internationally recognized expert essential for advancement of accountancy in the Philippines
Meaningful experience in the public practice
One year as an Audit Assistant (Staff Assistant) and at least two years as auditor-in-charge of audit engagement covering full audit functions of significant clients
Who created the PRC CPE council
The BOA
Penal and Final Provisions
Person who violates this Act may be punished of a fine at least 50,000 pesos or by imprisonment not exceeding 2 years or both.
Practice of Public Accountancy
A person who is a staff or partner in an accounting or auditing firm skilled in the practice of accountancy, rendering services to more than once client on a fee basis
Term of the Commission Proper of Commission on Audit
7 Years
How many members are in the AASC
1 Chairperson and 17 Members Composed of
1 BOA
1 COA
1 SEC
1 BSP
1 Insurance Commission
1 Major Org in practice of Public Accounttnancy
9 Orgs in Public Practice
1 Org in Commerce and Industry
1 in Academe
Contents of COR
- Full name and the assigned registration number of the registrant
- Signature of the Chairperson of PRC and Chairman of BOA
- Official seal of PRC and BOA
Sec 8 Compensation and Allowances of the Board states that the chairman and the members of the board shall receive compensation and allowances comparable to that being received by the chairman and members of existing regulatory boards under the Commission as provided in the
General Appropriations Act
Reinstatement, Reissuance, and Replacement of Revoked or Lost Certificates
After the expiration of two years from date of revocation, and upon application and for proper and sufficient reasons, Board may reinstate the validity of revoked COR
Who is issued a Certificate of Registration
- Examinees who passed the CPALE
- Persons admitted under reciprocity or other international agreement
Terms of Office of BOA members
The members will have a term of 3 years and cannot serve more than 12 years. No one shall serve for more than 2 consecutive terms until the lapse of 1 year.
Suspension and Revocation of COR
- Same as Refusal to Issue
- Any unprofessional or unethical conduct
- Malpractice
- Violations of any provisions of RA 9298
Penalties for non-compliance of the minimum standards of performance may include the following
- Injunction
- Payment of damages
- Permanent or temporary loss of license
The number of continuous years from initial registration or last renewal date registered accountants should fail to renew their professional licenses before they are declared delinquent and shall after due notice through website and publication of PICPA be dropped from roster of CPAs
5 years
Which of the following shall act as a legal adviser to the PRC and the BOA and shall render legal assistance as maybe necessary in carrying out the provisions of the Philippine Accountancy Act
Secretary of Justice or his duly designated representative
Qualification of for CPALE
- Filipino Citizen (Natural or Naturalized)
- Good Moral Character
- Must have Accountancy Degree from accredited institution
- Has not been convicted of any criminal offense
Penalties imposed by the Board of Accountancy
- Reprimand
- Revocation of CPA certificate
- Suspension of CPA certificate
As defined in ANNEX C of IRR of RA 9298, this refers to the inculcation assimilation and acquisition of knowledge skills and proficiency and ethical and moral values after the initial registration of a professional that raise and enhance the professional skills and competence
Continuing Professional Education
