Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 692)
The short title is 'The Revised Accountancy Law'.
The objectives are (a) to standardize and regulate accounting education; (b) to govern the examination for registration of certified public accountants; and (c) to supervise, control, and regulate the practice of accountancy in the Philippines.
Practice of accountancy is when a person, individually or as part of a firm, holds themselves as skilled in accounting and renders professional services such as auditing, preparation of financial reports, installation of accounting systems, preparation of income tax returns related to accounting, or representing clients before government agencies on tax matters related to accounting.
The Board of Accountancy is composed of a chairman and six members appointed by the President upon recommendation of the Professional Regulation Commission.
A board member must be a Filipino citizen, of good moral character, a registered Certified Public Accountant, have at least ten years of practice in accountancy, and not be connected to any school or review institute granting qualifying degrees or reviews for CPA exams.
Applicants must be at least 21 years old (with some exceptions), of good moral character, and hold a Bachelor of Science in Commerce degree or its equivalent from a government-recognized institution.
Subjects include Theory of Accounts (2 units), Business Law and Taxation (2 units), Management Services (2 units), Auditing Theory (2 units), Auditing Problems (2 units), and Practical Accounting Problems (2 units), for a total of 14 units.
A general weighted average of 75% or higher with no rating below 65% in any subject. Candidates passing at least 4 subjects with a combined weight of 8 units get conditional credit and must complete the remaining subjects within two years.
Grounds include conviction of a crime involving moral turpitude, immoral or dishonorable conduct, insanity, fraud in obtaining certificate, gross negligence, addiction affecting competence, unethical advertisement, false certification, aiding unqualified practice, violation of the law or rules, or conduct discreditable to the profession.
They may be fined up to PHP 5,000, imprisoned for up to two years, or both, with each day of unlawful practice considered a separate offense.