Question & AnswerQ&A (PRC BOARD OF ACCOUNTANCY Board Resolution No. 38)
The practice of public accountancy includes offering or rendering to more than one client on a fee basis services such as auditing or verification of financial transactions and accounting records; preparation and signing of audit reports and financial statements; installation and revision of accounting systems; preparation of income tax returns related to accounting; and representation of clients before government agencies on tax matters related to accounting.
Firms or partnerships of certified public accountants (CPAs), including sole practitioners, partners, and staff members engaged in public accountancy, must register with the Professional Regulation Commission and the Board of Accountancy.
The certificate of registration is valid for three (3) years and is renewable every three years upon payment of the required fees.
Penalties may be imposed for engaging in public accountancy without registration, practicing after expiration or suspension of registration, providing false information to secure registration, misrepresentation of having a registration, refusal to undergo required quality reviews, and failure to comply with registration requirements.
Any change in the information submitted must be reported in writing to the Board, with a copy furnished to the Commission, within sixty (60) days from the change.
A Quality Review is a study, appraisal, or review conducted by the Board or its authorized representatives of one or more aspects of the professional work of a firm or partnership engaged in public accountancy.
No, unless the foreign CPA qualifies to practice in the Philippines under the foreign reciprocity provision of Section 18, PD No. 692, or other relevant laws.
The firm or partnership must file a written petition with the Board signed by all partners or the sole practitioner. The Board will publish the request for withdrawal once in a newspaper of general circulation and, if unopposed, will recommend approval to the Commission. Upon approval, the registration is withdrawn and the petitioner must cease the practice of public accountancy.
An application fee of P300.00 must accompany initial registration, renewal, or request for reinstatement.
The sole practitioner or managing partner must report the dissolution to the Board within thirty (30) days from the date of dissolution, either by affidavit or providing certified copies of dissolution papers filed with the Securities and Exchange Commission.