QuestionsQuestions (Republic Act No. 3720)
RA 9298 is the “Philippine Accountancy Act of 2004.” Its policy recognizes the importance of accountants in nation building and aims to develop competent, virtuous, productive, and well-rounded professional accountants with standards that are excellent, qualitative, world-class, and globally competitive through honest and credible licensure examinations and regulatory measures fostering professional growth.
RA 9298 aims to: (1) standardize and regulate accounting education; (2) require examinations for registration of certified public accountants; and (3) supervise, control, and regulate the practice of accountancy in the Philippines.
It includes providing professional services as a CPA to clients for a fee (e.g., audit or verification of financial transactions and accounting records; preparation, signing, or certification of audit reports, balance sheets, and related financial statements for publication, credit, court or government filing; design/installation/revision of accounting systems; preparation of income tax returns when related to accounting procedures; and representing clients before government agencies on tax and other accounting-related matters).
They include: (1) practice in commerce and industry (decision-making requiring professional accounting knowledge and positions where a CPA is required); (2) practice in education/academe (teaching accounting, auditing, management advisory services, finance business law, taxation, and related technical subjects); and (3) practice in government (positions in an accounting professional group in government/GOCCs where decision-making requires accounting knowledge or CPA civil service eligibility is a prerequisite).
The Board consists of a chairman and six (6) members appointed by the President from ranked lists submitted under the law. It is under the supervision and administrative control of the Professional Regulation Commission (PRC).
A member must be: (1) a natural-born citizen and resident of the Philippines; (2) a duly registered CPA with at least 10 years of work experience in any scope of practice of accountancy; (3) of good moral character and not convicted of crimes involving moral turpitude; and (4) must not have pecuniary interest in schools/institutions conferring required accounting degrees or offering CPA review classes, nor be member of faculty/administration of such institutions at appointment time.
The chairman and members serve for three (3) years. Any vacancy within the term is filled only for the unexpired portion. No one who served two successive complete terms can be reappointed until after a one (1) year lapse. Filling an unexpired term is not considered a complete term.
Examples include: prescribing rules and regulations; supervising registration/licensure; administering oaths; issuing/suspending/revoking/reinstating Certificates of Registration; adopting a Code of Ethics; promulgating accounting and auditing standards (including international standards and best practices); monitoring audit quality via review of quality control; investigating violations with issuance of summons/subpoenas; issuing cease and desist orders; preparing and administering the CPA licensure exams; and coordinating with CHED to ensure compliance of accounting education with required standards.
All applicants must undergo a licensure examination given by the Board in places/dates designated by the Commission, complying with requirements of RA 8981. The Board prepares, administers, corrects, and releases results, while the Commission oversees and sends ratings to examinees and reviews/approves Board issuances per the Act.
They must be: (1) Filipino citizen; (2) of good moral character; (3) holder of a BS Accountancy degree from a CHED-recognized/accredited institution; and (4) not convicted of any criminal offense involving moral turpitude.
The exam covers (among others): Theory of Accounts; Business Law and Taxation; Management Services; Auditing Theory; Auditing Problems; Practical Accounting Problems I; and Practical Accounting Problems II. The Board may revise/exclude/add subjects subject to Commission approval.
A candidate needs a general average of at least 75% with no grade lower than 65% in any subject. If the candidate gets 75% and above in at least a majority of subjects, they receive conditional credit for passed subjects and must take remaining subjects within two (2) years; failing to reach required averages/grades in reexam means failing the entire examination.
If a candidate fails in two (2) complete CPA Board Examinations, they are disqualified from taking another set unless they submit evidence that they enrolled in and completed at least 24 units of subjects given in the licensure examination. A conditioned examination plus removal on failed subject counts as one complete examination.
No person may practice accountancy in the Philippines or use the title CPA (or related titles/signs/cards/advertisements indicating CPA practice) unless they received a Certificate of Registration/professional license and are issued a professional identification card or a valid temporary/special permit issued by the Board and approved as provided by the Commission.
Working papers, schedules, and memoranda made by a CPA and staff during an examination (including those prepared/submitted by the client) incident to or in the course of an examination are confidential and privileged and remain the CPA’s property absent a written agreement otherwise. They may be required to be produced only through subpoena issued by a court, tribunal, or government regulatory/administrative body.
Registered CPAs in the roster must be united and integrated through membership in one and only registered and accredited national professional organization of registered and licensed CPAs, registered as a nonprofit corporation with the SEC and recognized by the Board (subject to Commission approval). Membership is not a bar to membership in other CPA associations.
Upon conviction, the offender may be punished by a fine of not less than ₱50,000 or imprisonment not exceeding two (2) years, or both.