QuestionsQuestions (PRESIDENTIAL DECREE NO. 692)
It provides for: (a) the standardization and regulation of accounting education; (b) the examination for registration of certified public accountants (CPAs); and (c) the supervision, control, and regulation of the practice of accountancy in the Philippines.
It includes holding out as skilled and qualified to render CPA services; offering or rendering audit/verification, preparation/signing/certification of audit reports and financial statements; installing/revising accounting systems; preparing income tax returns when related to accounting procedures; representing clients before government agencies on tax matters related to accounting procedures; and related recording/presentation of financial facts.
If the employment involves decision-making requiring professional knowledge in accounting, or if the CPA represents his private employer before government agencies on accounting-related tax matters and the position requires that the holder must be a CPA. Also, if the CPA holds/appointed to an accounting occupational group position in government or GOCCs where civil service eligibility as CPA is a prerequisite.
It consists of a chairman and six (6) members appointed by the President upon recommendation of the Professional Regulation Commission (PRC).
Among others: set minimum requirements for admission to the CPA examinations; prepare and score the exams and submit results; monitor conditions affecting the profession and adopt measures for ethical/technical standards; investigate violations (issuing summons/subpoena); promulgate decisions in administrative cases; suspend/revoke/reissue certificates after due process; and perform other duties to implement regulation of the profession.
He must be: (a) a Philippine citizen; (b) of good moral character; (c) a duly registered CPA in the Philippines; (d) has at least ten (10) years in practice of accountancy; and (e) not connected with CPA schools/review schools/universities granting relevant degrees, nor have pecuniary interest in them.
Three (3) years. The first and second, third and fourth, and fifth and sixth members and the chairman are initially appointed for one, two, and three years respectively. Incumbents serve their unexpired terms or until successors are appointed and qualified; vacancies fill only unexpired terms. No person may serve two successive complete terms without a one-year lapse before reappointment.
At least once each calendar year in Manila and Cebu. With prior approval of the PRC, the Board may conduct examinations in other places if conditions warrant.
Applicant must be: (a) a Philippine citizen; (b) at least 21 years old (with allowance to take below 21, but certificate is not issued until reaching required age); (c) of good moral character; (d) holder of BS Commerce or equivalent from a government-recognized institution; and (e) if failed two complete exams, must comply with requirements under Section 13.
Written exams covering: Theory of Accounts (2), Business Law and Taxation (2), Management Services (2), Auditing Theory (2), Auditing Problems (2), and Practical Accounting I and II (each part specified as Practical Accounting Problems totaling 2 units). The total weight is 14 units and 21 minimum hours.
A general weighted average of 75% or above, with no subject below 65%.
If a candidate gets 75%+ in at least four (4) subjects totaling eight (8) units, he receives conditional credit for passed subjects, but must take an exam in remaining subjects within two years. If he fails to reach 75% general weighted average and at least 65% in each re-examined subject, he is considered failed in the entire examination.
They must be disqualified from taking another set unless they submit evidence satisfactory to the Board that they re-enrolled in and completed at least 24 units of subjects given in CPA examinations.
Examples include conviction of moral turpitude offenses; immoral/dishonorable conduct; insanity; fraud in acquisition of certificate; gross negligence or incompetence; addiction to alcohol/drugs rendering incompetence; false/extravagant/unethical advertising; issuing certificates without observing necessary auditing standards; acting as a dummy for unqualified/unregistered persons; violation of the Decree/rules; and conduct discreditable to the profession.
Among others: defeating/deceiving/obstructing a person’s right of examination; falsely rating/grading/reporting exam results; using/furnishing secret information to improve/injure prospects; making material false statements in applications; making false statements in certificates; impersonation or permitting impersonation; forging certificates; committing/attempting to commit fraud or violations of the Decree. Also penalizes those holding out as CPA without a valid certificate (each day is a separate offense).
CPAs and firms/partnerships of CPAs must register with the PRC and the Board of Accountancy; registration must be renewed annually on or before September 30 of each year following the date of issuance. The Board issues rules for registration requirements, including fees and penalties for violations subject to PRC approval.