Question & AnswerQ&A (PRC PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY Resolution NO. 88, S. 2009)
The main purpose of the QAR Program is to conduct oversight into the quality of audits of financial statements by reviewing the quality control measures instituted by auditors to ensure compliance with accounting and auditing standards and practices.
The QARC is composed of a Chairman preferably from the Philippine Chamber of Commerce and Industry, a Vice Chairman who is the Chairman of the Board or a designated alternate, and seven members appointed by various regulatory and professional bodies including the SEC, BSP, BIR, COA, Insurance Commission, Philippine Stock Exchange, and the APO for CPAs.
The Chief Inspector must have been a senior manager or partner of a large accounting firm auditing publicly listed companies, with at least ten years of audit experience, good moral character, a current CPA license, no record of violating professional or regulatory standards, and strong oral and written communication skills.
The QAR Program covers all CPAs engaged in public accounting practice in the Philippines, whether as individual practitioners, firms, or partnerships.
Enrollment in the QAR Program is mandatory as a pre-requisite for accreditation or renewal of accreditation as a CPA in public practice by the Board of Accountancy.
Failure to comply can result in cancellation of Board accreditation and refusal to grant or renew accreditation until compliance is achieved.
Penalties include daily fines starting at P1,000 for the first offense, escalating with repeated offenses, cancellation of accreditation, and possible criminal prosecution for the third offense.
No, CPA Practitioners registered under Category B (IFRS for SMEs) cannot audit companies using full IFRS unless they upgrade their registration to Category A.
Information, findings, and reports of the AIU are strictly confidential and can only be disclosed for purposes of imposing sanctions or by order of a court of competent jurisdiction.
The Chairman and Vice Chairman's terms are coterminous with their terms as President or Chairman of their respective organizations, while other members serve for three years unless replaced earlier by their designating bodies.