Title
Amendments to Public Accountancy Practice Act
Law
Commonwealth Act No. 342
Decision Date
Jun 23, 1938
Commonwealth Act No. 342 amends certain sections of Act Numbered Thirty-One Hundred Five, granting authority to individuals with a certificate of qualification to use the title "Certified Public Accountant" and outlining qualifications for applicants seeking CPA certificates.
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Eligibility Requirements for Certification

  • Applicants must be citizens of the Philippine Islands, the United States, or foreign countries granting reciprocal privileges.
  • Applicants must be at least 21 years old and of good moral character.
  • Applicants must be graduates of four-year high school courses or possess equivalent education.
  • Applicants must have at least three years of practical experience in professional accounting or three years of study in accounting and commercial subjects certified by a recognized college or university.

Examination Waiver for Certain Certificate Holders

  • The Board may waive the CPA examination for persons who:
    • Are of competent age and good moral character.
    • Hold a valid CPA or similar certificate from the U.S., its territories, District of Columbia, or a foreign country that grants reciprocal rights to Philippine CPAs.
    • Hold a chartered accountant or similar certificate with reciprocal privileges.

Registration Based on Prior Professional Experience and Foreign Certification

  • Persons engaged in professional accountancy in the Philippines for five years prior to application, who hold CPA, chartered accountant, or similar foreign certificates or degrees, can register as CPAs.
  • Registration requires that the foreign country or state grants reciprocal rights to Filipino CPAs.
  • Applications for such registration must be filed by December 31, 1938.

Prohibitions, Penalties, and Confidentiality

  • It is unlawful to:
    • Represent oneself as a CPA without a valid certificate.
    • Use the title "C.P.A." or similar designations without certification.
    • Practice accountancy after suspension or revocation of the certificate.
  • Penalties for violations include fines up to ₱5,000, imprisonment up to two years, or both.
  • Each day of unlawful practice constitutes a separate offense.
  • CPAs and their employees are prohibited from disclosing confidential communications or information derived from professional services without court order or employer permission.
  • Willful falsification of reports or statements subjects the offender to the same penalties.
  • These provisions apply to active resident partners or members of partnerships or corporations practicing accountancy, excluding non-resident members.

Use of Trade Names by Accountancy Practices

  • Persons, partnerships, or corporations practicing accountancy may adopt and use trade names.
  • Adoption of trade names requires compliance with Act No. 3883.
  • Proper qualification and registration of all partners or members' names with the Board of Accountancy is mandatory.

Effectivity

  • The amendments take effect upon approval of this Act.

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