PRE-REQUISITE RA 9298

Question 1

This act shall be known as the “Philippine Accountancy Act of 2004”

Answer 1

Section 1

Question 2

• The State recognizes the importance of accountants in nation building and development. Hence, it shall develop and nurture competent, virtuous, productive and well rounded professional accountants whose standard of practice and service shall be excellent, qualitative, world class and globally competitive though inviolable, honest, effective, and credible licensure examinations and though regulatory measures, programs and activities that foster their professional growth and development.

Answer 2

Section 2. Declaration of Policy.

Question 3

• This Act shall provide and govern:
  The standardization and regulation of accounting education;
  The examination of registration of certified public accountants; and
  The supervision, control, and regulation of the practice of accountancy in the Philippines.

Answer 3

Section 3. Objectives.

Question 4

hall constitute a person, be it his/her individual capacity, or as a staff
member in an accounting or auditing firm, holding out himself/herself as one skilled in the knowledge, science
and practice of accounting, and as a qualified person to render professional services as a certified public
accountant; or offering or rendering, or both or more than one client on a fee basis or otherwise, services as such
as the audit or verification of financial transaction and accounting records; or the preparation, signing, or
certification for clients of reports of audit, balance sheet, and other financial, accounting and related schedules,
exhibits, statement of reports which are to be used for publication or for credit purposes, or to be filed with a court
or government agency, or to be used for any other purposes; or to design, installation, and revision of accounting
system; or the preparation of income tax returns when related to accounting procedures; or when he/she
represent clients before government agencies on tax and other matters relating to accounting or render
professional assistance in matters relating to accounting procedures and the recording and presentation of
financial facts or data

Answer 4

(a) Practice of Public Accountancy

Question 5

Shall constitute in a person involved in decision making requiring
professional knowledge in the science of accounting, or when such employment or position requires that the
holder thereof must be a certified public accountant

Answer 5

(b) Practice in Commerce and Industry

Question 6

shall constitute in a person in an educational institution which involve teaching of accounting, auditing, management advisory services, fiancé, business law, taxation and other
technically related subject: Provided, That members of the Integrated Bar of the Philippines may be allowed to
teach business law and taxation subjects.

Answer 6

c.) Practice in Education/Academe

Question 7

shall constitute in a person who holds, or is appointed to, a position in an accounting professional group in government or in an government-owned and/or controlled corporation, including those
performing proprietary functions, where decision making requires professional knowledge in the science of
accounting, or where a civil service eligibility as a certified public accountant is a prerequisite.

Answer 7

d.) Practice in Government

Question 8

(a) Practice of Public Accountancy
(b) Practice in Commerce and Industry
c.) Practice in Education/Academe
d.) Practice in Government
All of these is under?

Answer 8

Section 4. Scope of Practice.

Question 9

The Professional Regulatory Board of Accountancy, hereinafter referred to as Board, under the supervision and administrative control of the Professional Regulation
Commission, hereinafter referred to as the Commission, shall be composed of a Chairman and six (6) members to be appointed
by the President of the Philippines from a list of three (3) recommendees for each position and ranked by the Commission from a list of five (5) nominees for each position submitted by the accredited national professional organization of certified public
accountant. The Board shall elect a vice-chairman from among each members for a term of one (1) year. The chairman shall
preside in all meetings of the Boards and in the event of a vacancy in the office of the chairman, the vice-chairman shall assume
such duties and responsibilities until such time as a chairman is appointed

Answer 9

Section 5. The Professional Regulatory Board of Accountancy and its Composition.

Question 10

Section 6. Qualifications of a members of the Professional Regulatory Board.

Answer 10

Must be a natural-born citizen and a resident of the Philippines; Must be a duly registered Certified Public Accountant with at least ten (10) years of work experience in any scope
of practice of accountancy;
Must be a good moral character and must not have been convicted of crimes involving moral turpitude; and Must not have any pecuniary interest, directly or indirectly, in any school, college, university or institution
conferring an academic degree necessary for 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.

Question 11

The Chairman and Members of the Board shall hold office for a term of three (3) years. Any vacancy occurring within the term of a member shall be filled up for the unexpired portion of the term only. No person who has served two (2) successive complete terms shall be eligible for reappointment until the lapse of one (1) year. Appointment to fill up an expired term is not to be considered as a complete term

Answer 11

Section 7. Term of Office

Question 12

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 for in the General Appropriate Act.

Answer 12

Section 8. Compensation and Allowances of the Board.

Question 13

Section 9. Powers and Functions of the Board.

Answer 13

To prescribed and adopt the rules and regulations necessary for carrying out the provisions of this Act; To supervise the registration, licensure and practice of accountancy in the Philippines;
To administer oaths in connection with the administration of this Act; To issue, suspend, revoke, reinstate the Certificate of Registration for the practice of the accountancy profession;
To adopt an official seal of the Board; To prescribe and/or adopt a Code of Ethics for the practice of accountancy
To monitor the conditions affecting the practice of accountancy practices, To investigate violations

Question 14

The Board shall be under the administrative supervision of the Commission. All records of the Board, including applications for
examination and administrative and other investigative cases conduced by the Board shall be under the custody of the
Commission. The Commission shall designate the secretary of the Board and shall provide the secretariat and other support
services to implement the provisions of this Act.

Answer 14

Section 10. Administrative Supervisions of the Board, Custodian of its Records, Secretariat and Support Services.

Question 15

Section 11. Grounds for Supervision or Removal of Members of the Board.

Answer 15

Neglect of Duty or incompetence; Violation or tolerance of any violation of this Act and it’s implementation rules and regulations or the Certified
Public Accountant’s Code of Ethics and the technical and professional standards of practice for certified public
accountant;
Final judgment of crimes involving moral turpitude; and Manipulation or rigging of the certified public accountant’s licensure examination results, disclosure of secret and confidential information in the examination questions prior to the conduct of the said examination or tampering of
grades.

Question 16

The Board shall, at the close of each calendar year, submit an annual report to the President of the Philippines though the Commission giving the detailed account of its proceedings and accomplishment during the year and making recommendations for the adoption of measures that will upgrade and improve the conditions affecting the practice of accountancy in the Philippines.

Answer 16

Section 12. Annual Report.

Question 17

• All applicants for registration for the practice of accountancy
  shall be required to undergo a licensure examination to be given by the Board in such places and dates as the Commission may
  be designate subject to compliance with the requirements prescribed by the Commission in accordance with Republic Act No.
  8981

Answer 17

Section 13. The Certified Public Accountant Examinations

Question 18

Section 14. Qualifications of Applicant for Examinations.

Answer 18

is a Filipino citizen; is of good moral character;
is a holder of the degree of Bachelor of Science in Accountancy conferred by the school, college, academy or institute duly recognized and/or accredited by the CHED or other authorized government offices; and has not been convicted of any criminal offence involving moral turpitude.

Question 19

Section 15. Scope of Examination.

Answer 19

Theory of Accounts Business Law and Taxation
Management Services Auditing Theory
Auditing Problems Practical Accounting Problem I
`Practical Accounting Problem II

Question 20

Section 16. Rating in the Licensure Examination.

Answer 20

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.

Question 21

Section 17. Report of Rating

Answer 21

The Board shall submit to the Commission the rating obtained by each candidate within ten (10)
calendar days

Question 22

Any candidate who fails in two (2) complete Certified Public
Accountant Board Examinations shall be disqualified from taking another set of examinations unless he/she submit evidence to
the satisfaction of the Board that he/she enrolled in and completed at least twenty-four (24) units of subject given in the licensure
examination.

Answer 22

Section 18. Failing Candidates to Take Refresher Course.

Question 23

All successful candidates in the examination shall required to take an ____ of professional before any member of the Board or before any government official authorized of the Commission or any person authorized by law to
administer oaths upon presentation of proof of his/her qualification

Answer 23

Section 19. Oath.

Question 24

___ ___ ___shall be issued to examinees who pass the licensure examination subject to payment of fees prescribed by the Commission. The — shall bear the signature of the chairperson of the Commission and the chairman and members of the Board, stamped with the official seal of the Commission and of the Board, indicating that the person named therein is entitled to
the practice of the profession with all the privileges appurtenant thereto.

Answer 24

Section 20. Issuance of Certificate of Registration and Professional Identification Card.

Question 25

A roster showing the names and place of business of all registered
certified public accountants shall be prepared and updated by the Board, and copies thereof shall be made available to any party
as may deemed necessary

Answer 25

Section 21. Roster of Certified Public Accountant.

Question 26

The certified public Accountant shall be required to indicate his/her certificate of registration number and date of issuance, the duration of validity, including the Professional Tax Receipt number on the documents he/she signs, uses or issues in connection with the practice of his/her profession

Answer 26

Section 22. Indication of Certificate of Registration, Identification Card and Professional Tax Receipt.

Question 27

he Board shall not register and issue a certificate of registration and professional identification Card to any successful examinee convicted by the court of competent jurisdiction of a criminal offence involving moral turpitude or guilty of immoral and dishonorable conduct to any person or unsound mind. In the event of refusal to issue certificate for any reason, the Board shall give the applicant a written statementn setting forth the reasons for such action, which statement shall be incorporated in the record of the Board.

Answer 27

Section 23. Refusal to Issue Certificate of Registration and Professional Identification Card.

Question 28

The Board shall have the power, upon the notice and hearing, to suspend or revoke the practitioner’s certificate of registration and professional identification card or suspend his/her from the practice of his/her profession or cancel his/her special permit for any of the causes or ground mentioned under Section 23 of this Act or any of the provisions of this Act, and its implementing rules and regulations, the certified Public Accountant’s Code of Ethics and the
technical and professional standards of practice for certified public accountants.

Answer 28

Section 24. Suspension and Revocation of Certificate of Registration and Professional Identification Card and
Cancellation of Special Permit.

Question 29

The Board 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 its discretion, exempt the applicant from taking another examination.

Answer 29

Section 25. Reinstatement, Reissuance and Replacement of Revoked or Lost Certificates.

Question 30

The Board may, after the expiration of ____ _____ 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 its discretion, exempt the applicant from taking another examination.

Answer 30

two (2) years

Question 31

No person shall practice accountancy in this country, or use the title
“Certified Public Accountant”, or use the abbreviated title “CPA” or display or use any title, sign, card, advertisement or other
device to indicate such person practices or offers to practice accountancy, or is a certified public accountant, unless such person
shall have received from the Board a certificate of registration/Professional license and be issued a professional identification card or a valid temporary/special permit duly issued to him/her by the Board and the Commission

Answer 31

Section 26. Prohibition in the Practice of Accountancy.

Question 32

Certified Public Accountants Registered When This Law is Passed. - All certified public accountants registered at the time this law takes effect shall automatically be registered under the provisions hereof, subject, however, to the provisions herein set forth as to future requirements. Certificate of Registration/Professional license held by such persons in good standing shall have the same license force and effect as though issued after the passage of this Act

Answer 32

Section 27. Vested Rights.

Question 33

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 Security
and Exchange Commission shall not register any corporation organized for the practice of public accountancy.

Answer 33

Section 28. Limitation of the Practice of Public Accountancy.

Question 34

All working papers, schedules and memoranda made by a certified public accountant and his staff in the course of an examination, including those prepared and submitted by the client, incident to or in the course of an examination, by such certified public accountant, except reports submitted by a certified public accountant to a
client shall be treated confidential and privileged and remain the property of such certified public accountant in the absence of a
written agreement between the certified public accountant and the client, to the contrary, unless such documents are required to
be produced though subpoena issued by any court, tribunal, or government regulatory or administrative body

Answer 34

Section 29. Ownership of Working Papers.

Question 35

All registered certified public accountants whose appear in the roster of certified public accountants shall be united and integrated though their membership in a one and only registered and accredited
national professional organization of registered and licensed certified public accountants, which shall be registered with the
Securities and Exchange Commission as a nonprofit corporation and recognized by the Board subject to the approval by the
Commission.

Answer 35

Section 30. Accredited Professional Organization.

Question 36

Certified public accountants, firms and partnerships of certified
public accountants, engaged in the practice of public accountancy, including partners and staff members thereof, shall registered
with the Commission and the Board, such registration to be renewed every three (3) years: Provided, That subject to the
approval of the Commission, the Board shall promulgate rules and regulations for the implementation of registration requirements
including the fees and penalties for violation thereof.

Answer 36

Section 31. Accreditation to Practice Public Accountancy.

Question 37

Certified public accountants, firms and partnerships of certified
public accountants, engaged in the practice of public accountancy, including partners and staff members thereof, shall registered
with the Commission and the Board, such registration to be renewed every _____ years: Provided, That subject to the
approval of the Commission, the Board shall promulgate rules and regulations for the implementation of registration requirements
including the fees and penalties for violation thereof.

Answer 37

three (3)

Question 38

All certified public accountants shall abide by the
requirements, rules and regulations on continuing professional education to be promulgated by the Board, subject to the approval
of the Commission, in coordination with the accredited national professional organization of certified public accountants or any
duly accredited educational institutional. For this purpose, a CPE Council is hereby created to implement the CPE program

Answer 38

Section 32. Continuing Professional Education (CPE) Program.

Question 39

All license certified public accountants shall obtain and use a seal of a design prescribed by the Board bearing the registrant’s name, registration number and title. The auditors reports shall be stamped with the said seal, indicating therein his/her current Professional Tax Receipt (PTR) number, date/place of payment when filed with government authorities or when used professionally

Answer 39

Section 33. Seal and Use of Seal.

Question 40

Subject or citizen of foreign countries may be allowed to practice accountancy in the Philippines in accordance with the provisions of existing laws, international treaty obligations including mutual recognition agreement entered into by the Philippines government with other countries. A person who is not a citizen of the Philippines shall not be allowed to practice accountancy in the Philippines unless he/she can prove, in the manner provided by the Rules of Court
that, specific provision of law country of which he/she is a citizen, subject or national admits citizens of the Philippines to the
practice of the same profession without restriction

Answer 40

Section 34. Foreign Reciprocity.

Question 41

Section 35. Coverage of Temporary/Special Permits.

Answer 41

A foreign certified public accountant called for consultation or for specific purpose which, in the judgment of the Board accountant qualified for such consultation or specific purposes; A foreign certified public accountant engaged as professor, lecturer or critic
`A foreign certified public accountant who is an internationally recognized expect or with specialization in any
branch of accountancy and his/her service

Question 42

Any person who shall violate any of the provisions of this Act or any of its implementing rules and regulations as promulgated by the Board subject to the approval of the Commission, shall upon conviction, be punished by a fine of not less than Fifty Thousand Pesos (50,000.00) or by imprisonment for a period not exceeding two (2) years or both

Answer 42

Section 36. Penal Provision.

Question 43

Any person who shall violate any of the provisions of this Act or any of its implementing rules and regulations as promulgated by the Board subject to the approval of the Commission, shall upon conviction, be punished by a fine of not less than ______ or by imprisonment for a period not exceeding two (2) years or both

Answer 43

Fifty Thousand Pesos (50,000.00)

Question 44

Any person who shall violate any of the provisions of this Act or any of its implementing rules and regulations as promulgated by the Board subject to the approval of the Commission, shall upon conviction, be punished by a fine of not less than Fifty Thousand Pesos (50,000.00) or by imprisonment for a period not exceeding _ _____ __ ____

Answer 44

two (2) years or both