QuestionsQuestions (PRESIDENTIAL DECREE NO. 533)
RA 5166 aims to: (a) standardize and regulate accounting education; (b) provide for an examination for registration of certified public accountants (CPAs); and (c) supervise, control, and regulate the practice of accountancy in the Philippines.
The Act creates (1) the Board of Accounting Education, which sets educational and experience requirements for admission to the CPA examination, and (2) the Board of Accountancy, which conducts the CPA examinations and regulates standards for practice, including rules and professional supervision.
It consists of: the Secretary of Education (or representative) as Chairman, the Chairman of the Board of Accountancy, the President of the Philippine Institute of Certified Public Accountants (PICPA), the President of the Philippine Association of Collegiate Schools of Business, and a representative of business and/or industry appointed by the President.
It determines and prescribes minimum requirements for admission to the CPA examinations; prescribes prior employment/apprenticeship requirements or equivalent training through academic work; determines and prescribes certification requirements of degree-granting institutions; and promotes, prescribes, and enforces rules for effective implementation.
The courses must include at least: Accounting and Auditing (36 units), Business Law (9 units), Taxation (6 units), English (15 units), Mathematics (9 units), and Management (6 units).
In lieu of one-year practical experience, two semesters covering twelve units of equivalent practical training through academic work may be substituted.
It has a chairman and five members appointed by the President from a list of at least 15 names approved and submitted by the PICPA (after consultation with other accounting associations consisting entirely of licensed CPAs). The President fills any vacancy from the list.
The Board must conduct the examination at least once each calendar year in Manila (or its suburb), Cebu City, and Davao City. If warranted, examinations may be held in other places with prior approval of the Commissioner of Civil Service.
It must evaluate, grade, sign, and submit the examination results within 180 days from the date of termination of the examinations.
A member must be a Philippine citizen, of good moral character, a duly registered CPA in the Philippines, have at least 10 years in practice or in government service using knowledge of accounting, and must not be directly/indirectly connected with schools/colleges/universities/review institutes that qualify candidates for the exam/CPA practice, nor have pecuniary interest in them.
A candidate needs a general weighted average of 75% or above to be entitled to registration, but no subject rating may be below 65%.
If a candidate attains 75% or above in at least three subjects with a combined weight of six units, he receives conditional credit for those passed and must take the remaining subjects within two years. If he fails to obtain at least 75% general weighted average and at least 65% in each re-examined subject, he is considered failed in the entire examination.
It will not issue if the applicant was convicted of a crime involving moral turpitude, found guilty of immoral or dishonorable conduct after due investigation, or declared of unsound mind.
Examples include: conviction for crimes involving moral turpitude; immoral or dishonorable conduct; insanity; fraud in acquisition of the certificate; gross negligence or incompetence; addiction to alcoholic beverages or habit-forming drugs; false or extravagant unethical advertisement; issuing certificates covering clients’ accounts without observing necessary auditing standards; acting as a dummy for an unqualified person; or violating the Board’s Code of Ethics.
A person is deemed engaged in practice if, among others: he holds himself out as qualified to render CPA services; offers/renders audit/verification and prepares/signs/certifies reports and financial statements for clients; installs/revises accounting systems; prepares income tax returns when related to accounting procedures; represents clients before governmental agencies on tax matters related to accounting; or provides professional assistance in accounting procedure and presentation of financial facts.
Working papers, schedules, and memoranda prepared by the CPA and staff (including those prepared and submitted by the client) remain the property of the CPA absent a written agreement to the contrary. They may not be sold, transferred, or otherwise disposed of without client consent, except to surviving partners or new partners of the CPA in accordance with the Act.
It penalizes defeating/deceiving/obstructing exam rights, falsifying grades/ratings/reports, using special secret information to improve/injure prospects, and material false statements or impersonation in exam applications. Unauthorized practice/holding out as a CPA without a valid certificate is punishable by fine up to ₱5,000 or imprisonment up to 2 years (or both), and each day of continued unauthorized practice is treated as a separate offense.