Question & AnswerQ&A (PRC PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY Resolution NO. 23, S. 2010)
They are known and cited as the "Rules and Regulations for a Quality Assurance Review (QAR) Program."
The term 'Board' refers to the Professional Regulatory Board of Accountancy.
CPA Practitioners are individuals, firms, or partnerships of CPAs engaged in the practice of public accountancy in the Philippines.
The QARD conducts independent reviews of the quality of audits of financial statements by assessing the quality control measures instituted by CPA Practitioners to ensure compliance with professional, ethical, and technical standards.
Failure to enroll in the QAR Program leads to denial of the application for initial or renewal accreditation of the CPA Practitioners.
Upon conviction, the violator shall be punished by a fine of not less than Fifty Thousand pesos (P50,000.00) or by imprisonment of up to two years or both, in addition to administrative penalties.
The Executive Committee consists of the incumbent Chairman and Vice Chairman of the Board (or their alternates) and the incumbent President of the Accredited Professional Organization (APO) or his/her alternate.
The Chief Inspector must have been a senior manager or partner of an accounting firm with publicly listed clients, independent from audited firms, at least 10 years in public accountancy, good moral character, current CPA license, no violations of professional standards, and competent communication skills.
Categories include Category A for CPA Practitioners handling clients using full IFRS (further subcategorised by size and client profiles) and Category B for those handling clients using IFRS for SMEs (also subcategorized based on client numbers).
The QAR Program covers all CPAs in the public accounting sector, including individual practitioners, firms, or partnerships engaged in public accountancy practice in the Philippines.
Registration with the QAR Program is valid for one year and must be renewed annually within the first two months of each calendar year for as long as the CPA Practitioner issues audit reports.
Penalties include fines escalating per day of violation, denial of accreditation application, suspension, or revocation of accreditation, depending on the offense and compliance.
The Executive Committee sets policies to maintain QARD's independence, and the APO provides necessary infrastructure ensuring QARD operates independently from audited CPA practitioners.
CPA Practitioners must pay annual registration fees based on their risk and category share to cover the operational costs of the QAR Program.
Information obtained, work, and reports of QARD are strictly confidential and are not to be disclosed except for violation sanctions or by order of a court of competent jurisdiction.