H. No.
6678
Republic of the Philippines
Congress of the Philippines
Metro Manila
Twelfth Congress
Third Regular Session
Begun
and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand
three.
[REPUBLIC ACT NO 9298]
AN ACT REGULATING THE PRACTICE OF ACCOUNTANCY IN THE PHILIPPINES,
REPEALING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 692, OTHERWISE KNOWN AS THE
REVISED ACCOUNTANCY LAW, APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:
ARTICLE I
TITLE, DECLARATION OF
POLICY, OBJECTIVE
AND SCOPE OF PRACTICE
SECTION 1. Short Title. – This Act shall be known as the “Philippine Accountancy Act
of 2004”.
SEC. 2. Declaration of
Policy. – The State recognizes the
importance of accountants in nation building and development. Hence, it
shall develop and nurture competent, virtuous, productive and well rounded
professional accountants whose standards of practice and service shall be
excellent, qualitative, world class and globally competitive through
inviolable, honest, effective, and credible licensure examinations and through
regulatory measures, programs and activities that foster their professional
growth and development.
SEC. 3. Objectives. – This
Act shall provide for and govern:
(a)
The standardization and regulation of accounting education;
(b)
The examination for registration of certified public accountants;
and
(c) The supervision, control, and regulation of the practice of
accountancy in the Philippines.
SEC. 4. Scope
of Practice. – The practice of
accountancy shall include, but not limited to, the following:
(a) Practice of Public Accountancy - shall constitute in a person, be
it his/her individual capacity, or as a partner or as a staff member in an
accounting or auditing firm, holding out himself/herself as one skilled in the
knowledge, science and practice of accounting, and as a qualified person to
render professional services as a certified public accountant; or offering or
rendering, or both, to more than one client on a fee basis or otherwise,
services such as the audit or verification of financial transaction and
accounting records; or the preparation, signing, or certification for clients
of reports of audit, balance sheet, and other financial, accounting and related
schedules, exhibits, statements or reports which are to be used for publication
or for credit purposes, or to be filed with a court or government agency, or to
be used for any other purpose; or the design, installation, and revision of
accounting system; or the preparation of income tax returns when related to
accounting procedures; or when he/she represents clients before government
agencies on tax and other matters related to accounting or renders professional
assistance in matters relating to accounting procedures and the recording and
presentation of financial facts or data.
(b) Practice in Commerce and Industry - shall constitute in a person
involved in decision making requiring professional knowledge in the science of
accounting, or when such employment or position requires that the holder
thereof must be a certified public accountant.
(c) Practice in Education/Academe - shall constitute in a person in an
educational institution which involve teaching of accounting, auditing,
management advisory services, finance, business law, taxation, and other
technically related subjects: Provided, That members of the Integrated
Bar of the Philippines may be allowed to teach business law and taxation
subjects.
(d) Practice in the Government- shall constitute in a person who
holds, or is appointed to, a position in an accounting professional group in
government or in a government–owned and/or controlled corporation, including
those performing proprietary functions, where decision making requires
professional knowledge in the science of accounting, or where a civil service
eligibility as a certified public accountant is a prerequisite.
ARTICLE II
PROFESSIONAL REGULATORY BOARD
OF ACCOUNTANCY
SEC. 5. The Professional
Regulatory Board of Accountancy and its Composition. –
The Professional Regulatory Board of Accountancy, hereinafter
referred to as the Board, under the supervision and administrative control of
the Professional Regulation Commission, hereinafter referred to as the
Commission, shall be composed of a chairman and six (6) members to be appointed
by the President of the Philippines from a list of three (3) recommendees for
each position and ranked by the Commission, from a list of five (5) nominees
for each position
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submitted by the accredited national professional organization of
certified public accountants. The Board shall elect a vice -chairman from among
its members for a term one (1) year. The chairman shall preside in all meetings
of the Board and in the event of a vacancy in the office of the chairman, the
vice-chairman shall assume such duties and responsibilities until such time as
a chairman is appointed.
SEC. 6. Qualifications of
Members of the Professional Regulatory Board. – A member of the Board shall, at the time of his/her
appointment, possess the following qualifications:
(a)
Must be a natural-born citizen and a resident of the Philippines;
(b) Must be a duly registered Certified Public Accountant with a least
ten (10) years of work experience in any scope of practice of accountancy.
(c) Must be of good moral character and must not have been convicted
of crimes involving moral turpitude; and
(d) Must not have any pecuniary interest, directly or indirectly, in
any school, college, university or institution conferring an academic degree
necessary for admission to the practice of accountancy or where review classes
in preparation for the licensure examination are being offered or conducted,
nor shall he/she be a member of the faculty or administration thereof at the
time of his/her appointment to the Board.
SEC. 7. Term of Office.
- The Chairman and members of the Board shall hold office for
a term of three (3) years. Any vacancy occurring within the term of a member
shall be filled up for the unexpired portion of the term only. No person who
has served two (2) successive complete terms shall be eligible for
reappointment until the lapse of one (1) year. Appointment to fill up an
unexpired term is not to be considered as a complete term.
SEC. 8. Compensation and
Allowances of the Board. – The
chairman and members of the Board shall receive compensation and
allowances comparable to that being received by the Chairman and members of
existing regulatory boards under the Commission as provided for in the General
Appropriations Act.
SEC. 9. Powers and
Functions of the Board. – The Board
shall exercise the following specific powers, functions and
responsibilities:
(a) To prescribe and adopt the rules and regulations necessary for
carrying out the provisions of this Act;
(b)
To supervise the registration, licensure and practice of
accountancy in the Philippines;
(c)
To administer oaths in connection with the administration of this
Act;
(d) To issue, suspend, revoke, or reinstate the Certificate of
Registration for the practice of the accountancy profession;
(e)
To adopt an official seal of the Board;
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(f) To
prescribe and/or adopt a Code of Ethics for the practice of accountancy;
(g) To monitor the conditions affecting the practice of accountancy
and adopt such measures, including promulgation of accounting and auditing
standards, rules and regulations and best practices as may be deemed proper for
the enhancement and maintenance of high professional, ethical, accounting and
auditing standards: Provided, That domestic accounting and auditing
standards, rules and regulations shall include the international accounting and
auditing standards, and generally accepted best practices;
(h)
To conduct an oversight into
the quality of audits of financial statements through a review of the quality
control measures instituted by auditors in order to ensure compliance with the
accounting and auditing standards and practices;
(i) To investigate violations of this act and the rules and
regulations promulgated hereunder and for this purpose, to issue summons, subpoena
and subpoena ad testificandum and subpoena duces tecum to violators
or witness thereof and compel their attendance to such investigation or
hearings and the production of documents in connection therewith: Provided,
That the Board upon approval of the Commission may, subject to such rules and
regulations that may be promulgated to implement this section, delegate the
fact-finding aspect of such investigations to the accredited national
professional organization of certified public accountants: Provided,
Further, That the Board and/or the Commission may adopt their findings of
fact as it may seems fit;
(j) The Board may, motu propio in its discretion, make such
investigations as it deems necessary to determine whether any person has
violated any provisions of this law, any accounting or auditing standard or
rules duly promulgated by the Board as part of the rules governing the practice
of accountancy;
(k) To issue a cease or desist order to any person, association,
partnership or corporation engaged in violation of any provision of this Act,
any accounting or auditing standards or rules duly promulgated by the Board as
part of the rules governing the practice of accountancy in the Philippines;
(l) To punish for contempt of the Board, both direct and indirect, in
accordance with the pertinent provisions of and penalties prescribed by the
Rules of Court;
(m) To prepare, adopt, issue or amend the syllabi of the subjects for
examinations in consultation with the academe, determine and prepare questions
for the licensure examination which shall strictly be within the scope of the
syllabi of the subjects for examinations as well as administer, correct and
release the results of the licensure examinations;
(n) To ensure, in coordination with the Commission on Higher Education
(CHED) or other authorized government offices that all higher educational
instruction and offering of accountancy comply with the policies, standards and
requirements of the course prescribed by CHED or other authorized government
offices in the areas of curriculum, faculty, library and facilities; and
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(o) To exercise such other powers as may be provided by law as well as
those which may be implied from, or which are necessary or incidental to the
carrying out of, the express powers granted to the Board to achieve the
objectives and purposes of this Act.
The policies, resolution, rules and
regulations, issued or promulgated by the Board shall be subject to review and
approval of the Commission. However, the Board’s decisions, resolutions or
orders rendered in administrative cases shall be subject to review only if on
appeal.
SEC. 10. Administrative
Supervisions of the Board, Custodian of its Records, Secretariat and
Support Services. – The Board shall be
under the administrative supervision of the Commission. All
records of the Board, including applications for examination and administrative
and other investigative cases conducted by the Board shall be under the custody
of the Commission. The Commission shall designate the Secretary of the Board
and shall provide the secretariat and other support services to implement the
provisions of this Act.
SEC. 11. Grounds for
Suspension or Removal of Members of the Board. – The President of the Philippines, upon the recommendation
of the Commission, after giving the concerned member an opportunity to defend
himself in a proper administrative investigation to be conducted by the
Commission, may suspend or remove any member on the following grounds:
(a)
Neglect of duty or incompetence;
(b) Violation or tolerance of any violation of this Act and its
implementing rules and regulations or the Certified Public Accountant’s Code of
Ethics and the technical and professional standards of practice for certified
public accountants;
(c)
Final judgment of crimes involving moral turpitude; and
(d)
Manipulation or rigging of the
certified public accountant’s licensure examination results, disclosure of
secret and confidential information in the examination questions prior to the
conduct of the said examination or tampering of grades.
SEC. 12. Annual Report.
– The Board shall, at the close of each calendar year, submit an
annual report to the President of the Philippines through the Commission giving
a detailed account of its proceedings and accomplishments during the year and
making recommendations for the adoption of measures that will upgrade and
improve the conditions affecting the practice of accountancy in the
Philippines.
ARTICLE III
EXAMINATION,
REGISTRATION AND LICENSURE
SEC. 13. The Certified
Public Accountant Examinations. – All
applicants for registration for the practice of accountancy shall be
required to undergo a licensure examination to be given by the Board in such
places and dates as the Commission may designate subject to compliance with the
requirements prescribed by the Commission in accordance with Republic Act No.
8981.
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SEC. 14. Qualifications
of Applicants for Examinations. – Any person
applying for examination shall establish the following requisites to the
satisfaction of the Board that he/she:
(a)
is a Filipino citizen;
(b)
is of good moral character;
(c)
is a holder of the degree of
Bachelor of Science in Accountancy conferred by a school, college, academy or
institute duly recognized and/or accredited by the CHED or other authorized
government offices; and
(d)
has not been convicted of any criminal offense involving moral
turpitude.
SEC. 15. Scope
of Examination. – The licensure examination
for certified public accountants shall cover, but are not limited to,
the following subjects:
(a)
Theory of Accounts
(b)
Business Law and Taxation
(c)
Management Services
(d)
Auditing Theory
(e)
Auditing Problems
(f)
Practical Accounting Problems I
(g)
Practical Accounting Problems II
The Board, subject to the approval of the
Commission, may revise or exclude any of the subjects and their syllabi, and
add new ones as the need arises.
SEC. 16. Rating in the
Licensure Examination. – To be qualified as
having passed the licensure examination for accountants, a candidate
must obtain a general average of seventy-five percent (75%), with no grades
lower than sixty-five percent (65%) in any given subject. In the event a
candidate obtains the rating of seventy-five percent (75%) and above in at
least a majority of subjects as provided for in this Act, he/she shall receive
a conditional credit for the subjects passed: Provided, That a candidate
shall take an examination in the remaining subjects within two years from the
preceding examination: Provided, further, That if the candidate fails to
obtain at least a general average of seventy-five percent (75%) and a rating of
at least sixty-five percent (65%) in each of the subjects reexamined, he/she
shall be considered as failed in the entire examination.
SEC. 17. Report of Ratings.
– The Board shall submit to the Commission the ratings obtained
by each candidate within ten (10) calendar days after the examination, unless
extended for just cause. Upon the release of the results of the examination,
the Commission shall send by mailing the rating received by each examinee at
his/her given address using the mailing envelope submitted during the
examination.
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SEC. 18. Failing Candidates
to Take Refresher Course- Any candidate
who fails in two (2) complete Certified Public Accountant Board
Examinations shall be disqualified from taking another set of examinations
unless he/she submits evidence to the satisfaction of the Board that he/she
enrolled in and completed at least twenty-four (24) units of subject given in
the licensure examination.
For purposes of this Act, the examination in which the candidate
was conditioned together with the removal examination on the subject in which
he/she failed shall be counted as one complete examination.
SEC. 19. Oath. - All successful candidates in the examination shall be required to
take an oath of profession before any member of the Board or before any
government official authorized by the Commission or any person authorized by
law to administer oaths upon presentation of proof of his/her qualification,
prior to entering upon the practice of the profession.
SEC. 20. Issuance of
Certificates of Registration and Professional Identification Card. – A certificate of registration shall be issued to examinees who
pass the licensure examination subject to payment of fees
prescribed by the Commission. The Certificate of Registration shall bear the
signature of the chairperson of the Commission and the chairman and members of
the Board, stamped with the official seal of the Commission and of the Board,
indicating that the person named therein is entitled to the practice of the profession
with all the privileges appurtenant thereto. The said certificate shall remain
in full force and effect until withdrawn, suspended or revoked in accordance
with this Act.
A Professional Identification Card bearing the registration
number, date of issuance, expiry date, duly signed by the chairperson of the
Commission, shall likewise be issued to every registrant renewable every three
(3) years.
SEC. 21. Roster of
Certified Public Accountants. – A roster
showing the names and place of business of all registered certified
public accountants shall be prepared and updated by the Board, and copies
thereof shall be made available to any party as may be deemed necessary.
SEC. 22. Indication of
Certificate of Registration, Identification Card and Professional Tax
Receipt. - The certified public
accountant shall be required to indicate his/her certificate of
registration number, and date of issuance, the duration of validity, including
the Professional Tax Receipt number on the documents he/she signs, uses or
issues in connection with the practice of his/her profession.
SEC. 23. Refusal to Issue
Certificate of Registration and Professional Identification Card - The Board shall not register and issue a certificate of
registration and professional identification card to any
successful examinee convicted by a court of competent jurisdiction of a
criminal offense involving moral turpitude or guilty of immoral and
dishonorable conduct or to any person of unsound mind. In the event of refusal
to issue certificate for any reason, the Board shall give the applicant a
written statement setting forth the reasons for such action, which statement
shall be incorporated in the record of the Board.
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SEC. 24. Suspension
and Revocation of Certificates of Registration and Professional Identification
Card and Cancellation of Special Permit. - The Board shall have the power, upon due notice and
hearing, to suspend or revoke the practitioner’s certificate of registration
and professional identification card or suspend him/her from the practice of
his/her profession or cancel his/her special permit for any of the causes or
grounds mentioned under Section 23 of this Act or for any unprofessional or
unethical conduct, malpractice, violation of any of the provisions of this Act,
and its implementing rules and regulations, the Certified Public Accountant‘s
Code of Ethics and the technical and professional standards of practice for
certified public accountants.
SEC. 25. Reinstatement, Reissuance and Replacement of Revoked
or Lost Certificates. - The Board
may, after the expiration of two (2) years from the date of revocation of
a certificate of registration and upon application and for reasons deemed
proper and sufficient, reinstate the validity of a revoked certificate of
registration and in so doing, may, in its discretion, exempt the applicant from
taking another examination. A new certificate of registration to replace lost,
destroyed, or mutilated certificate/license may be issued, subject to the rules
promulgated by the Board and the Commission, upon payment of the required fees.
ARTICLE IV
PRACTICE OF ACCOUNTANCY
SEC. 26. Prohibition in the
Practice of Accountancy. - No person
shall practice accountancy in this country, or use the title “Certified
Public Accountant”, or use the abbreviated title “CPA” or display or use any
title, sign, card, advertisement, or other device to indicate such person
practices or offers to practice accountancy, or is a certified public
accountant, unless such person shall have received from the Board a certificate
of registration/ professional license and be issued a professional identification
card or a valid temporary/special permit duly issued to him/her by the Board
and the Commission.
SEC. 27. Vested Rights:
Certified Public Accountants Registered When This Law is Passed. - All certified public accountants registered at the time this law
takes effect shall automatically be registered under the
provisions hereof, subject however, to the provisions herein set forth as to
future requirements. Certificates of registration/professional license held by
such persons in good standing shall have the same force and effect as though
issued after the passage of this Act.
SEC. 28. Limitation of the
Practice of Public Accountancy. – Single
practitioners and partnerships for the practice of public accountancy
shall be registered certified public accountants in the Philippines: Provided,
That from the effectivity of this Act, a certificate of accreditation shall be
issued to certified public accountants in public practice only upon showing, in
accordance with rules and regulations promulgated by the Board and approved by
the Commission, that such registrant has acquired a minimum of three (3) years
meaningful experience in any of the areas of public practice including
taxation: Provided, further, That this requirement shall not apply to
those already granted a certificate of accreditation prior to the effectivity
of this Act. The Securities and Exchange Commission shall not register any
corporation organized for the practice of public accountancy.
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SEC. 29. Ownership of
Working Papers - All working papers, schedules
and memoranda made by a certified public accountant and his staff in the
course of an examination, including those prepared and submitted by the client,
incident to or in the course of an examination, by such certified public
accountant, except reports submitted by a certified public accountant to a
client shall be treated confidential and privileged and remain the property of
such certified public accountant in the absence of a written agreement between
the certified public accountant and the client, to the contrary, unless such
documents are required to be produced through subpoena issued by any court,
tribunal, or government regulatory or administrative body.
SEC. 30. Accredited
Professional Organization.- All
registered certified public accountants whose names appear in the roster
of certified public accountants shall be united and integrated through their
membership in a one and only registered and accredited national professional
organization of registered and licensed certified public accountants, which
shall be registered with the Securities and Exchange Commission as a nonprofit
corporation and recognized by the Board, subject to the approval by the
Commission. The members in the said integrated and accredited national
professional organization shall receive benefits and privileges appurtenant
thereto upon payment of required fees and dues. Membership in the integrated
organization shall not be a bar to membership in any other association of
certified public accountants.
SEC. 31. Accreditation to
Practice Public Accountancy. – Certified
public accountants, firms and partnerships of certified public
accountants, engaged in the practice of public accountancy, including partners
and staff members thereof, shall register with the Commission and the Board,
such registration to be renewed every three (3) years: Provided, That
subject to the approval of the Commission, the Board shall promulgate rules and
regulations for the implementation of registration requirements including the
fees and penalties for violation thereof.
SEC. 32. Continuing
Professional Education (CPE) Program. – All
certified public accountants shall abide by the requirements, rules and
regulations on continuing professional education to be promulgated by the
Board, subject to the approval of the Commission, in coordination with the
accredited national professional organization of certified public accountants
or any duly accredited educational institutions. For this purpose, a CPE
Council is hereby created to implement the CPE program.
SEC. 33. Seal and Use of
Seal. - All licensed certified public
accountants shall obtain and use a seal of a design prescribed by the
Board bearing the registrant’s name, registration number and title. The
auditor’s reports shall be stamped with said seal, indicating therein his/her
current Professional Tax Receipt (PTR) number, date/place of payment when filed
with government authorities or when used professionally.
SEC. 34. Foreign
Reciprocity. – Subjects or citizens of
foreign countries may be allowed to practice Accountancy in the
Philippines in accordance with the provisions of existing laws, international
treaty obligations including mutual recognition agreements entered into by
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the Philippine government with other
countries. A person who is not a citizen of the Philippines shall not be
allowed to practice accountancy in the Philippines unless he/she can prove, in
the manner provided by the rules of court that, by specific provision of law,
the country of which he/she is a citizen, subject or national admits citizens
of the Philippines to the practice of the same profession without restriction.
SEC. 35. Coverage of
Temporary/Special Permits. - Special /
temporary permit may be issued by the Board subject to the approval of
the Commission and payment of the fees the latter has prescribed and charged
thereof to the following persons:
(a) A foreign certified public accountant called for consultation or
for a specific purpose which, in the judgment of the Board, is essential for
the development of the country: Provided, That his//her practice shall
be limited only for the particular work that he/she is being engaged: Provided,
further, That there is no Filipino certified public accountant qualified
for such consultation or specific purposes;
(b)
A foreign certified public
accountant engaged as professor, lecturer or critic in fields essential to
accountancy education in the Philippines and his/her engagement is confined to
teaching only; and
(c)
A foreign certified public
accountant who is an internationally recognized expert or with specialization
in any branch of accountancy and his/her service is essential for the
advancement of accountancy in the Philippines.
ARTICLE V
PENAL AND FINAL
PROVISIONS
SEC. 36. Penal Provision.
- Any person who shall violate any of the provisions of this Act
or any of its implementing rules and regulations as promulgated by the Board
subject to the approval of the Commission, shall, upon conviction, be punished
by a fine of not less than fifty thousand pesos (P 50,000.00) or by
imprisonment for a period not exceeding two (2) years or both.
SEC. 37. Implementing Rules
and Regulations. - Within ninety (90) days
after the effectivity of this Act, the Board, subject to the approval of
the Commission and in coordination with the accredited national professional
organization of certified public accountants, shall adopt and promulgate such
rules and regulations to carry out the provisions of this Act and which shall
be effective fifteen (15) days following their publication in the Official
Gazette or in any major daily newspaper of general circulation.
SEC. 38. Interpretation of
this Act. - Nothing in this Act shall be
construed to effect or prevent the practice of any other legally
recognized profession.
SEC. 39. Enforcement of the
Act. - It shall be the primary duty
of the Commission and the Board to effectively enforce the provisions of
this Act. All duly constituted law enforcement agencies and officers of
national, provincial, city or municipal government or of any political
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subdivision thereof, shall, upon the call
or request of the Commission or the Board, render assistance in enforcing the
provisions of this Act and to prosecute any person violating the provisions of
the same. The Secretary of Justice or his duly designated representative shall
act as legal adviser to the Commission and the Board and shall render legal
assistance as may be necessary in carrying out the provisions of this Act.
Any person may bring before the
Commission, Board or the aforementioned officers of the law, cases of illegal
practice or violations of this Act committed by any person or party.
The Board shall assist the Commission in
filing the appropriate charges through the concerned prosecution office in
accordance with law and rules of court.
SEC. 40. Funding Provision.
- The chairperson of the Professional Regulation Commission
shall immediately include in the Commission’s programs the implementation of
this Act, the funding of which shall be included in the annual General
Appropriations Act.
SEC. 41. Transitory
Provision. - The incumbent chairman and
members of the Board shall continue to serve in their respective
positions under the terms for which they have been appointed under Presidential
Decree No. 692, without the need of new appointments.
All graduates with a Bachelors Degree,
major in Accounting shall be allowed to take the CPA Licensure Examination
within two (2) years from the effectivity of this Act under the rules and
regulations to be promulgated by the Board subject to the approval by the
Commission.
SEC. 42. Separability
Clause. - If any clause, provision,
paragraph or part thereof shall be declared unconstitutional or invalid,
such judgment shall not affect, invalidate or impair any other part hereof, but
shall be merely confined to the clause, provision, paragraph or part directly
involved in the controversy in which such judgment has been rendered.
SEC. 43. Repealing Clause.
- Presidential Decree No. 692 is hereby repealed and all other
laws, orders, rules and regulations or resolutions or part/s thereof
inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.
SEC. 44. Effectivity. -
This Act shall take effect after fifteen (15) days following its
publication in the Official Gazette or in any major daily newspaper
of general circulation.
Approved,
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|
(Sgd) JOSE DE VENECIA JR.
|
(Sgd) FRANKLIN M. DRILON
|
|
Speaker
of the House
|
|
|
President of the
Senate
|
|
of Representatives
|
|
|
|
|
|
|
|
This
|
act
|
is a
|
consolidation
|
of
|
Senate
|
Bill
|
No.
|
2748
|
|
and House
|
Bill
|
No.
|
6678 was
finally
|
passed
|
by
|
the Senate
|
|
and the
House of Representatives
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on
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February
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6,
|
2004
|
and
|
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February 7, 2004,
respectively.
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(Sgd) ROBERTO P. NAZARENO
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(Sgd) OSCAR G. YABES
|
|
Secretary
General
|
Secretary of the
Senate
|
|
House of Representatives
|
|
(Sgd) GLORIA
MACAPAGAL-ARROYO
President of the
Philippines
12
RULES AND REGULATIONS IMPLEMENTING
REPUBLIC ACT NO. 9298 OTHERWISE KNOWN AS THE PHILIPPINE ACCOUNTANCY ACT OF 2004
AND FOR OTHER PURPOSES
RULE I
TITLE, DECLARATION OF POLICY, OBJECTIVE
AND SCOPE OF PRACTICE
SECTION 1 - Short Title. – This Rules and
Regulations shall be known as THE RULES AND REGULATIONS
IMPLEMENTING REPUBLIC ACT NO. 9298 otherwise known as the “PHILIPPINE
ACCOUNTANCY ACT OF 2004”.
SECTION 2 - Declaration of Policy. – The State
recognizes the importance of accountants in nation building and
development. Hence, it shall develop and nurture competent, virtuous,
productive and well-rounded professional accountants whose standards of
practice and service shall be excellent, qualitative, world class and globally
competitive through
a.
Inviolable, honest, effective, and credible licensure examinations
and
b.
regulatory measures, programs and activities that foster their
professional growth and development.
This Rules and Regulations shall be interpreted, construed, and
carried out in the light of the above Declaration of Policy, which embodies the
legislative intent in enacting the law.
SECTION 3 – Objectives. – This Act shall
provide for and govern:
a.
The standardization and regulation of accounting education;
b.
The examination for registration of certified public accountants;
and
c.
The supervision, control, and regulation of the practice of
accountancy in the Philippines.
SECTION 4 - Scope of Practice. – The practice of
Accountancy shall include, but not limited, to the following:
a.
Practice of Public Accountancy - shall constitute in a person,
i.
be it his/her individual capacity, or as a partner or as a staff
member in an accounting or auditing firm;
ii.
holding out himself/herself as one skilled in the knowledge,
science and practice of accounting, and as a qualified person to render
professional services as a certified public accountant, or offering or
rendering, or both, to more than one client on a fee basis or otherwise,
services such as:
·
the audit or verification of financial transactions and accounting
records; or
·
the preparation, signing, or certification for clients of reports
of audit, balance sheet, and other financial, accounting and related schedules,
exhibits, statements or reports
which
are to be used by stockholders or for publication or for credit purposes, or to
be filed with a court or government agency, or to be used for any other
purpose; or
·
the design, installation, review and revision of accounting
systems and controls ; or the preparation and/or review of income tax returns
when related to accounting and auditing procedures; or
·
when he/she represents his/her clients before government agencies
on tax and other matters related to accounting; or
·
renders professional assistance in matters relating to accounting
procedures and the recording and presentation of financial facts or data
b.
Practice in Commerce and Industry - shall constitute in a person,
i.
involved in decision making requiring professional knowledge in
the science of accounting, as well as the accounting aspects of finance and
taxation, or
ii.
when he/she represents his/her employer before government agencies
on tax and other matters related to accounting; or
iii. when such employment or
position requires that the holder thereof must be a certified public
accountant.
In this connection, any
position in any business or company in the private sector which requires
supervising the recording of financial transactions, preparation of financial
statements, coordinating with the external auditors for the audit of such
financial statements and other related functions shall be occupied only by a
duly registered CPA. Provided, That the business or company where the
above position exists has a paid -up capital of at least Five Million Pesos
(P5,000,000.00) and/or an annual revenue of at least Ten Million Pesos
(P10,000,000.00). Provided Further, That this provision shall apply only
to persons to be employed after the effectivity of this Rules and Regulations,
Provided, Finally, That this provision shall not result to deprivation of the
employment of incumbents to the position.
c.
Practice in Education/Academe - shall constitute in a person,
i.
in an educational institution which involve teaching of
accounting, auditing, management advisory services, accounting aspect of
finance, business law, taxation, and other technically related subjects.
Provided, That members of the Integrated Bar of the Philippines may be
allowed to teach business law and taxation subjects; Provided,
Further, That the position of either the dean or the department chairman or
its equivalent that supervises the Bachelors of Science in Accountancy program
of an educational institution is deemed to be in practice of accountancy in the
academe / education and therefore must be occupied only by a duly registered
CPA.
d.
Practice in the Government - shall constitute in a person,
i.
who holds, or is appointed to,
a position in an accounting professional group in government or in a
government-owned and/or controlled corporation, including those performing
2
proprietary
functions, where decision making requires professional knowledge in the science
of accounting, or
ii. where a civil service
eligibility as a certified public accountant is a prerequisite.
SECTION 4 (A) - Definition of Terms. – As used in these
rules and regulations, the following terms shall be understood to
mean as follows:
a.
Accredited National Professional Organization of Certified Public
Accountants or APO – the integrated national professional organization of
Certified Public Accountants accredited by the Board and the Commission;
b.
Act or RA No. 9298 – The Philippine Accountancy Act of 2004 and
its subsequent amendments;
c.
Board or BOA – the Professional Regulatory Board of Accountancy of
the Philippines created under Republic Act No. 9298;
d.
Certified Public Accountant or CPA – a person who holds a valid
Certificate of Registration and a valid Professional Identification Card issued
by the Commission upon recommendation by the Board to those who have
satisfactorily complied with all the legal and procedural requirements for such
issuance, including in appropriate cases, having passed the CPA licensure
examination.
e. Certificate of Accreditation – a certificate under seal, issued by
the Commission upon the recommendation by the Board pursuant to this revised
rules and regulation, attesting that Individual CPAs, including the staff
members thereof, Firms, including the sole proprietors and the staff members
thereof and Partnerships of CPAs including the partners and the staff members
thereof, are duly accredited to practice public accountancy in the Philippines.
f. Certificate of Registration – a certificate under seal bearing a
registration number, issued to an individual, by the Commission, upon
recommendation by the Board, signifying that the individual has complied with
all the legal and procedural requirements for such issuance including, in
appropriate cases, having successfully passed the CPA licensure examination.
g.
Code of Ethics for Professional Accountants – the code of ethics
approved by the Commission in December, 2003 per its PRC Resolution No. 83,
Series of 2003 and its subsequent amendments which contains the norms and
principles governing the practice of the accountancy profession in the highest
standards of ethical conduct.
h.
Commission or PRC – the Professional Regulation Commission of the
Philippines created under Republic Act No. 8981.
i.
Firm – an organization engaged in the practice of public
accountancy, consisting of a sole proprietor, either alone or with one or more
staff member(s).
j.
Individual CPA – a certified public accountant engaged in the
practice of public accountancy under his/her name, by himself/herself only or
with one or more staff member(s).
3
k.
Implementing Rules and Regulations or IRR – rules and regulations
implementing Republic Act No. 9298 otherwise known as the Philippine
Accountancy Act of 2004.
l.
Partnership – a professional partnership engaged in the practice
of public accountancy which is formed in accordance with Philippine laws,
either as a general partnership or a limited liability partnership, and whether
or not it is registered as such with the Securities and Exchange Commission
(SEC).
m. Philippine Institute of
Certified Public Accountant or PICPA – the integrated national professional
organization of Certified Public Accountants accredited by the Board and the
Commission per PRC Accreditation No. 15 dated October 2, 1975.
n.
Professional Identification Card – a card with validity of three
(3) years, bearing the registration number, date of issuance with an expiry
date, due for periodic renewal, duly signed by the Chairperson of the
Commission issued by the PRC to a registered CPA upon payment of the annual
registration fees for three (3) years.
o.
Quality Review –- a study, appraisal, or review by the Board or
its duly authorized representatives, of the quality of audit of financial
statements through a review of the quality control measures instituted by an
Individual CPA, Firm or Partnership of CPAs engaged in the practice of public
accountancy to ascertain his/her/its compliance with prescribed professional,
ethical and technical standards of public practice.
p.
Sector – is the area of practice of accountancy namely public
accountancy, commerce and industry, academe/education and government.
q.
Staff member – a CPA employed by an Individual CPA, Firm or
Partnership engaged in the practice of public accountancy as defined in Sec.
1(a) herein, below the rank of the Individual CPA, sole proprietor or partner
as the case maybe.
r.
Syllabi – documents showing the outline embodying topics and
concepts of major subjects prescribed in specific course of study to serve as
the basis for test questions in the CPA licensure examinations.
RULE II
PROFESSIONAL REGULATORY BOARD OF
ACCOUNTANCY
SECTION 5 - The Professional Regulatory Board of Accountancy and
its Composition . – The Board shall be composed of a chairman and
six (6) members to be appointed by the President of the Philippines from a list
of three (3) recommendees for each position and ranked by the Commission, from
a list of five (5) nominees for each position submitted by the APO. The Board
shall elect a vice-chairman from among its members for a term of one (1) year.
The chairman shall preside in all meetings of the Board and in the event of a
vacancy in the office of the chairman, the vice-chairman shall assume such
duties and responsibilities until such time as a chairman is appointed.
The four (4) sectors in the practice of accountancy shall as much
as possible be equitably represented in the Board. The Commission in
consultation with the Board shall select three (3) nominees from those
recommended by the APO and submit such list to the President for consideration.
SECTION 5 (A) - Time of submission of nomination to the Board by
the APO. – The APO shall submit its nominations with
complete documentation to the Commission not later than (60) days
4
prior
to the expiry of the term of an incumbent chairman or member. There should be
adequate documentation to show the qualification and primary field of
professional activity of the nominee to enable the Commission to determine the
competence of the nominee and the sector where he/she belongs. If the APO fails
to submit its own nominee(s) to the Commission with the required documentations
within the period provided herein, the Commission in consultation with the
Board shall submit to the President a list of three (3) nominees for each
vacant position.
SECTION 6 - Qualifications of Members of the Professional
Regulatory Board of Accountancy. –A member of the Board shall, at the time of his/her
appointment, possess the following qualifications:
a.
Must be a natural-born citizen and a resident of the Philippines;
b.
Must be a duly registered Certified Public Accountant with at
least ten (10) years of work experience in any scope of practice of
accountancy. He/shall be nominated to represent a sector from which he/she has
considerable and meaningful professional experience.
c.
Must be of good moral character and must not have been convicted
of crimes involving moral turpitude;
d.
Must not have any pecuniary interest, directly or indirectly, in
any school, college, university or institution conferring an academic degree
necessary for admission to the practice of accountancy or where review classes
in preparation for the licensure examination are being offered or conducted,
nor shall he/she be a member of the faculty or administration thereof at the
time of his/her appointment to the Board;
e.
Must not be a Director or Officer of the APO at the time of his
appointment;
Provided, That if the Chairman or any member of the Board is still in
active practice of public accountancy or connected with any office in
commerce and industry or in the government, he/she must go on leave during the
pendency of any case involving himself/herself, his firm, partnership, company
or government office, or inhibit himself/herself completely in all the stages
of the proceedings thereof.
SECTION 7 - Term of Office. – The Chairman and members of the Board
shall hold office for a term of three (3) years. Any vacancy
occurring within the term of a member shall be filled up for the unexpired
portion of the term only. No person who has served two successive complete
terms as chairman or member shall be eligible for reappointment as chairman or
member until the lapse of one year. Appointment to fill up an unexpired term is
not to be considered as a complete term. Provided, That, no person shall
serve in the Board for more than twelve (12) years.
SECTION 8 - Compensation and Allowances of the Board. – The chairman and
members of the Board shall receive compensation and allowances
comparable to that being received by the Chairman and members of existing
regulatory boards under the Commission as provided for in the General
Appropriations Act.
SECTION 9 - Powers and Functions of the Board. – The Board shall act
as a collegial body and shall exercise the following specific
powers, functions and responsibilities:
a.
To prescribe and adopt the rules and regulations necessary for
carrying out the provisions of this Act;
5
b.
To supervise the registration, licensure and practice of
accountancy in the Philippines;
c.
To administer oaths in connection with the administration of this
Act;
d.
To issue, suspend, revoke, or reinstate the Certificate of
Registration for the practice of the accountancy profession;
e.
To adopt an official seal of the Board;
f.
To prescribe and/or adopt a Code of Ethics for the practice of
accountancy;
g.
To monitor the conditions affecting the practice of accountancy
and adopt such measures, including promulgation of accounting and auditing
standards, rules and regulations and best practices as may be deemed proper for
the enhancement and maintenance of high professional, ethical, accounting and
auditing standards; Provided, That domestic accounting and auditing
standards, rules and regulations shall include the international accounting and
auditing standards, and generally accepted best practices;
h.
To conduct an oversight into the quality of audits of financial
statements through a review of the quality control measures instituted by
auditors in order to ensure compliance with the accounting and auditing
standards and practices;
i.
To investigate violations of this act and the rules and
regulations promulgated hereunder and for this purpose, to issue summons, subpoena
and subpoena ad testificandum and subpoena duces tecum to violators
or witness thereof and compel their attendance to such investigation or
hearings and the production of documents in connection therewith: Provided,
That the Board upon approval of the Commission may, subject to such rules and
regulations that may be promulgated to implement this section, delegate the
fact-finding aspect of such investigations to the accredited national
professional organization of certified public accountants; Provided Further,
That the Board and/or the Commission may adopt their findings of fact as it may
deem fit;
j.
The Board may, motu propio in its discretion, make such
investigations as it deems necessary to determine whether any person has
violated any provisions of this law, any accounting or auditing standard or
rules duly promulgated by the Board as part of the rules governing the practice
of accountancy;
k.
To issue a cease or desist order to any person, association,
partnership or corporation engaged in violation of any provision of RA No.
9298, any accounting or auditing standards or rules duly promulgated by the
Board as part of the rules governing the practice of accountancy in the
Philippines;
l.
To punish for contempt of the Board, both direct and indirect, in
accordance with the pertinent provisions of and penalties prescribed by the
Rules of Court;
m. To prepare, adopt, issue or amend the syllabi of the subjects for
examinations in consultation with the academe, determine and prepare questions
for the licensure examination which shall strictly be within the scope of the
syllabi of the subjects for examinations as well as administer, correct and release
the results of the licensure examinations; Provided, That the Board may,
upon prior approval by the Commission, engage the services of expert test
writers, who shall propose test questions for the CPA Licensure Examinations. Provided,
6
Further, That the Board does not delegate its
power and function to determine and prepare test questions for the CPA
Licensure Examinations. Provided, Finally, That the Board and the
Commission shall institute adequate controls over the processing and
safekeeping of such test questions to ensure the full integrity of the CPA
Licensure Examinations;
n.
To ensure, in coordination with the Commission on Higher Education
(CHED) or other authorized government offices, that all higher educational
instruction and offering of accountancy, including accounting review centers
and/or CPE providers offering accounting seminars, comply with the policies,
standards and requirements of the course prescribed by CHED or other authorized
government offices or CPE Council as the case may be in the areas of
curriculum, faculty, library and facilities; Provided, That for the
orderly implementation of this provision, the Board and the Commission may
enter into a Memorandum of Agreement with CHED;
o.
To exercise such other powers as may be provided by law as well as
those which may be implied from, or which are necessary or incidental to the
carrying out of, the express powers granted to the Board to achieve the
objectives and purposes of RA No. 9298.
The policies, resolution, rules and regulations, issued or
promulgated by the Board shall be subject to review and approval of the
Commission. However, the Board’s decisions, resolutions or orders rendered in
administrative cases shall be subject to review only if on appeal.
SECTION 9 (A) - Accounting and Auditing Standard Setting Council. –The Commission
upon the recommendation of the Board shall within ninety (90) days from
the effectivity of this IRR, create an accounting standard setting body to be
known as the Financial Reporting Standards Council (FRSC) and an auditing
standard setting body to 8 be known as the Auditing and Assurance Standards
Council (AASC) to assist the Board in carrying out its powers and functions
provided in Rule II, Section 7 (g) hereof;
The FRSC shall be composed of fifteen (15) members with a
Chairman, who had been or presently a senior accounting practitioner in any of
the scope of accounting practice and fourteen (14) representatives from the
following:
|
a.
|
Board of Accountancy
|
|
1
|
|
b.
|
Securities and
Exchange Commission
|
|
1
|
|
c.
|
Bangko Sentral ng Pilipinas
|
|
1
|
|
d.
|
Bureau of Internal
Revenue
|
|
1
|
|
e.
|
A major organization
composed of preparers
|
|
|
|
|
and users of financial statements
|
|
1
|
|
f.
|
Commission on Audit
|
|
1
|
|
g.
|
Accredited National Professional
|
|
|
|
|
Organization of CPAs
|
|
|
|
|
Public Practice
|
2
|
|
|
|
Commerce and Industry
|
2
|
|
|
|
Academe/Education
|
2
|
|
|
|
Government
|
2
|
8
|
|
|
|
-------
|
-------
|
|
|
Total
|
|
14
|
|
|
|
|
====
|
7
The AASC shall be composed of fifteen (15) members with a
Chairman, who had been or presently a senior practitioner in public accountancy
and fourteen (14) representatives from the following:
|
a.
|
Board of Accountancy
|
1
|
|
b.
|
Securities and
Exchange Commission
|
1
|
|
c.
|
Bangko Sentral ng Pilipinas
|
1
|
|
d.
|
Commission on Audit
|
1
|
|
e.
|
An association or organization of CPAs
in
|
|
|
|
active public
practice of accountancy
|
1
|
f.
Accredited National
Professional Organization of CPAs
|
Public Practice
|
6
|
|
|
Commerce and Industry
|
1
|
|
|
Academe/Education
|
1
|
|
|
Government
|
1
|
9
|
|
|
------
|
------
|
|
Total
|
|
14
|
|
|
|
====
|
The APO shall equitably distribute the representation of the
Public Practice sector in the AASC among the big, medium and small
practitioners.
The Chairman and members of the FRSC and
AASC shall be appointed by the Commission upon the recommendation of the Board
in coordination with the APO. The FRSC and the AASC shall make an annual review
of the composition of their respective councils and may recommend to the Board
and the Commission a more suitable representation thereto as they may deem fit.
The Chairman and the members of the FRSC and AASC shall have a term of three
(3) years renewable for another term. Provided, That any existing
accounting and auditing standards setting council shall continue to function
as such until the creation of the FRSC and the AASC as provided herein. Provided,
Further, That any member of any existing accounting and auditing standard
setting council shall not be disqualified from being appointed to the FRSC or
AASC as the case maybe for the terms provided herein.
SECTION 9 (B) - Education
Technical Council. – The Commission upon the
recommendation of the Board shall within sixty (60) days from the
effectivity of this IRR create an Education Technical Council (ETC) to assist
the Board in carrying out its powers and functions provided in Rule II, Section
7 (n) hereof and to further assist the Board in the attainment of the objective
of continuously upgrading the accountancy education in the Philippines to make
the Filipino CPAs globally competitive.
The ETC shall be composed of seven (7)
members with a Chairman, who had been or presently a senior accounting
practitioner in the academe/education and six (6) representatives from the
following:
|
a.
|
Board of Accountancy
|
|
1
|
|
b.
|
Accredited National Professional
|
|
|
|
|
Organization of CPAs
|
|
|
|
|
Public Practice
|
1
|
|
|
|
Commerce and Industry
|
1
|
|
|
|
Academe/Education
|
2
|
|
|
|
Government
|
1
|
5
|
|
|
|
------
|
------
|
|
|
Total
|
|
6
|
|
|
|
|
====
|
8
The APO shall equitably distribute the representation of the
Academe/Education sector among the private and public schools offering the
degree of Bachelors of Science in Accountancy.
The Chairman and members of the ETC shall be appointed by the
Commission upon the recommendation of the Board in coordination with the APO.
The ETC shall make an annual review of the composition of the council and may
recommend to the Board and the Commission a more suitable representation
thereto as it may deem fit. The Chairman and the members of the ETC shall have
a term of three (3) years renewable for another term.
The ETC shall have the following functions:
a.
determine a minimum standard curriculum for the study of
accountancy to be implemented in all schools offering accountancy as an
undergraduate degree;
b.
establish teaching standards, including the qualifications of
members of the faculty of schools and colleges of accountancy;
c.
monitor the progress of the program on the study of accountancy
and undertaking measures for the attainment of a high quality of accountancy
education in the country;
d.
evaluate periodically the performance of educational institutions
offering accountancy education.
The ETC shall render a report of its findings and recommendations
on the foregoing activities to the Board. The Board shall review such report
and if found to be meritorious, it shall forward the same to the Commission
which shall make proper representation with the CHED for its appropriate
consideration.
SECTION 10 - Administrative Supervision of the Board, Custodian of
its Records, Secretariat and Support Services. – The Board shall be
under the administrative supervision of the Commission. All
records of the Board, including applications for examination, examination
questions, answer sheets, and other records and documents pertaining to the CPA
licensure examinations, and administrative and other investigative cases
conducted by the Board shall be under the custody of the Commission. The
Commission shall designate the Secretary of the Board and shall provide the
secretariat and other support services to implement the provisions of this RA
No. 9298.
SECTION 11 - Grounds for Suspension or Removal of Members of the
Board. – The President of the Philippines, upon the
recommendation of the Commission, after giving the concerned member an
opportunity to defend himself in a proper administrative investigation to be
conducted by the Commission, may suspend or remove any member on the following
grounds:
a.
Neglect of duty or incompetence;
b.
Violation or tolerance of any violation of this Act and its
implementing rules and regulations or the Certified Public Accountant ’s Code
of Ethics and the technical and professional standards of practice for
certified public accountants;
c.
Final judgment of crimes involving moral turpitude; and
9
d.
Manipulation or rigging of the certified public accountant’s
licensure examination results, disclosure of secret and confidential
information in the examination questions prior to the conduct of the said
examination or tampering of grades.
The Commission in the
conduct of the investigation shall be guided by the provisions of Republic Act
No. 8981, otherwise known as the PRC Modernization Act of 2000, its
implementing rules and regulations and their respective amendments.
SECTION 12 - Annual Report . – The Board shall, at the close of each
calendar year, submit an annual report to the President of the
Philippines through the Commission giving a detailed account of its proceedings
and accomplishments during the year and making recommendations for the adoption
of measures that will upgrade and improve the conditions affecting the practice
of accountancy in the Philippines.
RULE III
EXAMINATION, REGISTRATION AND LICENSURE
SECTION 13 - The Certified Public Accountant Examinations. – All applicants for
registration for the practice of accountancy shall be required to
undergo a licensure examination to be given by the Board in such places and
dates as the Commission may designate subject to compliance with the
requirements prescribed by the Commission in accordance with Republic Act No.
8981. The places/venues and dates of examinations shall be included in the
Schedule of Professional Licensure Examinations for the year issued by the
Commission.
SECTION 14 - Qualifications of Applicants for Examinations. – Any person applying
for examination shall establish the following requisites to the
satisfaction of the Board that he/she:
a.
is a Filipino citizen;
b.
is of good moral character;
c.
is a holder of the degree of Bachelor of Science in Accountancy
conferred by a school, college, academy or institute duly recognized and/or
accredited by the CHED or other authorized government offices;
d.
has not been convicted of any criminal offense involving moral
turpitude.
The following documents
shall be submitted in support of the above requirements:
a.
Certificate of Live Birth in National Statistics Office (NSO)
Security Paper;
b.
Marriage Contract in NSO Security Paper for married female
applicants;
c.
College diploma with indication therein of date of graduation and
Special Order Number unless it is not required;
d.
Baccalaureate Transcript of Records with indication therein of
date of graduation and Special Order Number unless it is not required;
e.
National Bureau of Investigation (NBI) Clearance;
10
f.
Other documents that the Board may require.
The Board shall not renew a Professional Identification Card, or
shall suspend, or revoke, any Certificate of Registration obtained by false
swearing or by any misrepresentation made in applying for registration or
examination and shall not renew nor grant registration to any applicant whose
application contains such false evidence or information.
SECTION 15 - Scope of Examination . – The licensure
examination for certified public accountants shall cover, but are
not limited to, the following subjects:
a.
Theory of Accounts
b.
Business Law and Taxation
c.
Management Services
d.
Auditing Theory
e.
Auditing Problems
f.
Practical Accounting Problems I
g.
Practical Accounting Problems II
The Board, subject to the approval of the Commission, may revise
or exclude any of the subjects and their syllabi, and add new ones as the need
arises. Provided, That the change shall not be more often than every
three (3) years.
SECTION 16 - Rating in the Licensure Examination. – To be qualified as
having passed the licensure examination for accountants, a
candidate must obtain a general average of seventy- five percent (75%), with no
grades lower than sixty- five percent (65%) in any given subject. In the event
a candidate obtains the rating of seventy- five percent (75%) and above in at
least a majority of subjects as provided for in this Act, he/she shall receive
a conditional credit for the subjects passed; Provided, That a candidate
shall take an examination in the remaining subjects within two years from the
preceding examination; Provided, further, That if the candidate fails to
obtain at least a general average of seventy-five percent (75%) and a rating of
at least sixty-five percent (65%) in each of the subjects reexamined, he/she
shall be considered as failed in the entire examination. Provided, That
the Board may adopt its own internal procedures on the implementation of this
provision.
SECTION 17 - Report of Ratings. – The Board shall
submit to the Commission the ratings obtained by each candidate
within ten (10) calendar days after the examination, unless extended for just
cause. Upon the release of the results of the examination, the Commission shall
send by mailing the rating received by each examinee at his/her given address
using the mailing envelope submitted during the examination. Provided,
That the report of rating may be distributed to the successful examinees during
their mass oath taking as new registered CPAs.
SECTION 18 - Failing Candidates to Take Refresher Course. – Any candidate who
fails in two (2) complete Certified Public Accountant Board
Examinations shall be disqualified from taking another set of examinations
unless he/she submits evidence to the satisfaction of the Board that he/she
enrolled in and completed at least twenty- four (24) units of subjects given in
the licensure examination. Provided, That such refresher course shall be
offered only by an educational institution granting a degree of Bachelor
of Science in Accountancy. Provided Further, That the candidates shall
have the option of taking the aforesaid subjects in the regular course offering
or in a special refresher course duly accredited by the Board.
11
For purposes of this Act, the examination in which the candidate
was conditioned together with the removal examination on the subject in which
he/she failed shall be counted as one complete examination.
SECTION 19 - Oath. – All successful candidates in the examination shall be required
to take an oath of profession before any member of the Board or
before any government official authorized by the Commission or any person
authorized by law to administer oaths upon presentation of proof of his/her
qualification, prior to entering upon the practice of the profession. An oath
shall also be required for CPAs admitted in the practice of accountancy without
examination under reciprocity or other international agreements.
SECTION 20 - Issuance
of Certificates of Registration and Professional Identification Card.
– A Certificate of Registration shall be issued to examinees who
pass the licensure examination, or are admitted without examination under
reciprocity or other international agreements subject to payment of fees
prescribed by the Commission. The Certificate of Registration shall bear the
signature of the Chairperson of the Commission and the Chairman and Members of
the Board, stamped with the official seal of the Commission and of the Board,
indicating that the person named therein is entitled to the practice of the
profession with all the privileges appurtenant thereto. The said certificate
shall remain in full force and effect until withdrawn, suspended or revoked in
accordance with RA No. 9298.
A Professional Identification Card bearing the registration
number, date of issuance, expiry date, duly signed by the chairperson of the
Commission, shall likewise be issued to every registrant. Provided, That
the registrant has paid the prescribed fee for the annual registration for
three (3) years; Provided, Further, That the reissuance or
renewal of the said card shall be subject to payment of the annual registration
fees for another and every after three (3) years thereafter.
SECTION 21 - Roster of Certified Public Accountants. – A roster showing
the names and place of business of all registered certified
public accountants shall be prepared and updated by the Board, and copies
thereof shall be made available to any party as may be deemed necessary. Provided,
That the Board upon approval of the Commission may, subject to such rules and
regulations that may be promulgated to implement this section, delegate the
preparation of this roster to the APO; Provided, Further, That
the Board and/or the Commission may adopt the APO’s report as it may deem fit;
Provided, Finally, That posting of the roster at the internet shall be
deemed compliance with this requirement.
SECTION 22 - Indication of
Certificate of Registration Identification Card and Professional Tax Receipt. – The certified public accountant shall be required to indicate
the numbers of his/her Certificate of Registration and
Professional Identification Card with its date of issuance and the duration of
validity, including the Professional Tax Receipt Number which the
City/Municipal Treasurer shall issue to the registered CPA upon presentation of
his/her current professional identification card, on the documents he/she
signs, uses or issues in connection with the practice of his/her profession.
SECTION 23 - Refusal to Issue
Certificate of Registration and Professional Identification Card. – The Board shall not register and issue a Certificate of
Registration and Professional Identification Card to any
successful examinee convicted by a court of competent jurisdiction of a
criminal offense involving moral turpitude or guilty of immoral and
dishonorable conduct or to any person of unsound mind. In the event of refusal
to issue certificate for any reason, the Board shall give the applicant a
written statement setting forth the reasons for such action, which statement
shall be incorporated in the record of the Board: Provided, That the
Board shall not register either, any person who has falsely sworn or
misrepresented himself/herself in his/her application for examination: Provided,
Further, That registration shall not be refused and a name shall not be
removed from the roster
12
of
CPAs on conviction for a political offense or for an offense which shall not,
in the opinion of the Board, either from the nature of the offense or from the
circumstances of the case , disqualify a person from practicing accountancy
under RA No. 9298. Provided, Finally, That the Board in the written
statement shall state the period for the deferment of the registration if the
offense or act committed does not call for indefinite period and/or perpetual
deprivation of the chance to register.
SECTION 24 - Suspension and
Revocation of Certificates of Registration and Professional Identification Card
and Cancellation of Special Permit. – The Board
shall have the power, upon due notice and hearing, to suspend or
revoke the practitioner’s Certificate of Registration and Professional
Identification Card or suspend him/her from the practice of his/her profession
or cancel his/her special permit for any of the causes or grounds mentioned
under Section 23 of this Act or for any unprofessional or unethical conduct, malpractice,
violation of any of the provisions of RA No. 9298 , and its implementing rules
and regulations, the Certified Public Accountant ‘s Code of Ethics and the
technical and professional standards of practice for certified public
accountants. Provided, That the Board shall periodically examine the
grounds for the suspension/revocation of the Certificate of Registration and
Professional Identification Card and update these as necessary. The Board shall
regularly recommend to the Commission an updated list of these grounds and
provide the specific penalty for each of them. Provided, Further, That
the rules on administrative investigation issued by the Commission shall govern
the hearing or investigation of the case, subject to applicable provisions
of RA No. 8981, RA No. 9298 and the Rules of Court. Provided, Finally,
That the suspension/revocation of the Certificate of Registration and
Professional Identification Card of the offending CPA under this provision
shall not prejudice his/her prosecution for criminal liabilities and meted the
penalties provided in Section 36 Article V of RA No. 9298, or under the Revised
Penal Code.
SECTION 25 - Refusal to Issue Certificate of Registration and
Professional Identification Card. – The Board may, after the expiration of two (2) years from the
date of revocation of a Certificate of Registration and upon
application and for reasons deemed proper and sufficient, and after being
convinced of applicant’s remorse and rehabilitation, reinstate the validity of
a revoked certificate of registration and in so doing, may, in its discretion,
exempt the applicant from taking another examination.
A new Certificate of Registration to replace lost, destroyed, or
mutilated certificate may be issued, subject to the rules promulgated by the
Board and the Commission, upon payment of the required fees. Provided,
That the Board shall issue a resolution, subject to the approval by the
Commission in granting a petition for reinstatement to the practice of accountancy.
RULE IV
PRACTICE OF ACCOUNTANCY
SECTION 26 - Prohibition in the Practice of Accountancy. – No person shall
practice accountancy in this country, or use the title “Certified
Public Accountant”, or display or use any title, sign, card, advertisement, or
other device to indicate such person practices or offers to practice
accountancy, or is a certified public accountant, unless such person shall have
received from the Board a Certificate of Registration and be issued a
professional identification card or a valid temporary/special permit duly
issued to him/her by the Board and the Commission.
SECTION 27 - Vested Rights: Certified Public Accountants
Registered When This Law is Passed. – All certified public accountants registered at the time this
law takes effect shall automatically be registered under the
provisions hereof, subject however, to the provisions herein set forth as to
future requirements. Certificates of Registration held by such persons in good
standing shall have the same force and effect as though issued after the
passage of this Act.
13
SECTION 28 - Limitation of the Practice of Public Accountancy. – Single
practitioners and partners of partnership organized for the
practice of public accountancy shall be registered certified public accountants
in the Philippines; Provided, That from the effectivity of RA No. 9298,
a Certificate of Accreditation shall be issued to certified public accountants
in public practice only upon showing, in accordance with rules and regulations
promulgated by the Board and approved by the Commission, that such registrant
has acquired a minimum of three (3) years meaningful experience in any of the
areas of public practice including taxation; Provided, Further, That
this requirement shall not apply to those already granted a certificate of
accreditation prior to the effectivity of RA No. 9298. Provided, Finally,
That partnership engaged in the practice of public accountancy may be carried
on in the form of a general partnership (GP) or a limited liability partnership
(LLP) organized in accordance with Philippines laws. The Securities and
Exchange Commission shall not register any corporation organized for the
practice of public accountancy.
SECTION 28 (A) - Meaningful Experience. – A meaningful
experience shall be considered as satisfactory compliance with
the requirements of Section 28 of RA No. 9298 if it is earned in
a.
commerce and industry and shall include significant involvement in
general accounting, budgeting, tax administration, internal auditing, liaison
with external auditors, representing his/her employer before government
agencies on tax and matters related to accounting or any other related
functions; or
b.
academe/education and shall include teaching for at least three
(3) trimesters or two (2) semesters subjects in either financial accounting,
business law and tax, auditing problems, auditing theory, financial management
and management services. Provided, That the accumulated teaching
experience on these subjects shall not be less than three (3) school years; or
c.
government and shall include significant involvement in general
accounting, budgeting, tax administration, internal auditing, liaison with the
Commission on Audit or any other related functions; and
d. public practice and shall include at least one year as audit
assistant and at least two years as auditor in charge of audit engagement
covering full audit functions of significant clients.
Provided, That if the Board finds such experience inadequate to the
minimum requirements for the public practice of accountancy in the
course of its evaluation of his/her application for accreditation to practice
public accountancy, the registrant shall be required to make up such inadequacy
from competent sources. Provided, Further, That such meaningful
experience shall be certified under oath by the employer where such meaningful
experience was obtained.
SECTION 29 - Ownership of Working Papers. – All working papers,
schedules and memoranda made by a certified public accountant and
his staff in the course of an examination, including those prepared and
submitted by the client, incident to or in the course of an examination, by
such certified public accountant, except reports submitted by a certified
public accountant to a client shall be treated confidential and privileged and
remain the property of such certified public accountant in the absence of a
written agreement between the certified public accountant and the client, to
the contrary, unless such documents are required to be produced through
subpoena issued by any court, tribunal, or government regulatory or
administrative body in accordance with Philippine laws.
14
SECTION 30 - Accredited Professional Organization. – All registered
certified public accountants whose names appear in the roster of
certified public accountants shall be united and integrated through their
membership in a one and only registered and accredited national professional
organization of registered and licensed certified public accountants, which
shall be registered with the Securities and Exchange Commission as a non-
profit corporation and recognized by the Board, subject to the approval by the
Commission. The members in the said integrated and accredited national
professional organization shall receive benefits and privileges appurtenant
thereto upon payment of required fees and dues. Membership in the integrated
organization shall not be a bar to membership in any other association of
certified public accountants.
The rules and regulations covering the accreditation of an
Accredited National Professional Organization of CPAs, renewal of Certificate
of Accreditation and its Suspension/Cancellation are stated in the attached
sheets as Annex ‘A ” and made an integral part hereof.
SECTION 31 - Accreditation to Practice Public Accountancy. – Individual
certified public accountants, firms and partnerships of certified
public accountants engaged in the practice of public accountancy, including the
partners and staff members thereof, shall register with the Commission and the
Board, such registration to be renewed every three years, Provided ,
That subject to the approval of the Commission, the Board shall promulgate
rules and regulations for the implementation of the registration requirements
including the fees and penalties for violation thereof.
The rules and regulations covering the
accreditation of individual CPAs, firms and partnerships for the practice of
public accountancy, renewal of Certificate of Accreditation and its
Suspension/Cancellation are stated in the attached sheets as Annex “B” and made
an integral part hereof.
SECTION 32 - Continuing Professional Education (CPE) Program. – All certified
public accountants who are considered in the practice of
accountancy for the four (4) sectors as defined in Rule I, Section 4 hereof
shall abide by the requirements, rules and regulations on continuing
professional education to be promulgated by the Board, subject to the approval
of the Commission, in coordination with the accredited national professional
organization of certified public accountants and shall be offered by any duly
accredited organization or educational institution. For this purpose, a CPE
Council is hereby created to implement the CPE program.
The rules and regulations covering the accreditation of CPE
provider and the programs thereof, renewal of Certificate of Accreditation and
its Suspension/Cancellation are stated in the attached sheets as Annex “C ” and
made an integral part hereof.
SECTION 33 - Seal and Use of Seal. – All registered
certified public accountants shall obtain and use a seal of a
design prescribed by the Board bearing the registrant’s name, registration
number and title. The auditor’s reports shall be stamped with said seal,
indicating therein his/her current Professional Tax Receipt (PTR) number,
date/place of payment when filed with government authorities or when used
professionally.
SECTION 34 - Foreign Reciprocity. – Subjects or
citizens of foreign countries may be allowed to practice
Accountancy in the Philippines in accordance with the provisions of existing
laws, international treaty obligations including mutual recognition agreements
entered into by the Philippine government with other countries. A person who is
not a citizen of the Philippines shall not be allowed to practice accountancy
in the Philippines unless he/she can prove, in the manner provided by the rules
of court that, by specific provision of law, the country of which he/she is a
citizen, subject or national admits citizens of the Philippines to the practice
of the same profession without restriction.
15
Provided, That a foreign CPA or its equivalent, who desires to practice
accountancy in the Philippines through this reciprocity provision shall
initiate the establishment of reciprocity between his country/state and the
Philippines by presenting/submitting a letter or any document signed and under
official seal by the appropriate official of his country/state requesting the Chairman
of the Board to allow the foreign applicant to practice accountancy in the
Philippines, that by express provision of the law of his country/state,
Filipino CPAs are allowed to practice accountancy in his country/state on terms
of strict and absolute equality with the citizens or subjects of said country
or state including the unconditional recognition of prerequisite degrees issued
by institutions of higher learning duly recognized or established by the
Government of the Republic of the Philippines attaching/appending thereto an
authentic or authenticated official copy of said law officially translated in
the English language. Provided, Further, That if the letter/document and
the copy of the law submitted by the applicant is satisfactory to the Board,
the foreign applicant shall be allowed to practice accountancy in the
Philippines by requiring him to file an application and by submitting the
following documents that shall accompany the application:
a.
The original or certified copy of any official documents issued by
the Bureau of Immigration and Deportation allowing the applicant to enter and
reside in the Philippines; persons:
b.
Present his passport for examination and for photocopying of
pertinent information about himself/herself;
c.
Original or authenticated copy of transcript of records or
equivalent document of the course for licensure examination issued by the
institution of higher learning where he/she studied, duly authorized or
accredited by his/her country/state;
d.
Certificate of Registration or its equivalent stating that the
foreign applicant is duly registered or licensed CPA or its equivalent in
his/her country/state;
e.
Other documents which may be required to be submitted by the
Board;
Provided Finally , That if the foreign
applicant desires to practice public accountancy in the Philippines
he/she has to apply for accreditation to do so under the rules and regulations
provided in Annex “B ” and made an integral part hereof.
SECTION 35 - Coverage of Temporary/Special Permits. – Special/temporary
permit may be issued by the Board subject to the approval of the
Commission and payment of the fees the latter has prescribed and charged
thereof to the following persons:
a.
A foreign certified public accountant called for consultation or
for a specific purpose which, in the judgment of the Board, is essential for
the development of the country; Provided, That his/her practice shall be
limited only for the particular work that he/she is being engaged; Provided,
Further, That there is no Filipino certified public accountant qualified
for such consultation or specific purposes;
b.
A foreign certified public accountant engaged as professor,
lecturer or critic in fields essential to accountancy education in the
Philippines and his/her engagement is confined to teaching only; and
16
c.
A foreign certified public accountant who is an internationally
recognized expert or with specialization in any branch of accountancy and
his/her service is essential for the advancement of accountancy in the
Philippines.
The procedures/documents for the registration and/or issuance of
temporary/special permits to a foreign CPA or its equivalent are as follows:
a.
A visa and work permit issued by appropriate government agencies;
b.
Within thirty (30) calendar days after his/her
commission/appointment date, the commissioning party shall secure an employment
permit from the Department of Labor and Employment. Thereafter, the
commissioning party shall secure the Temporary/Special Permit from the Board
subject to the approval by the Commission;
c.
In the absence of any bilateral agreement, the foreign national
shall submit documentary proof or evidence allowing Filipino CPAs to practice
the profession in their home country without any limitation; profession.
d.
Sworn statement of the details of foreign applicant area of
specialization which must be consistent with his/her expertise; and
e.
Upon issuance of the Temporary/Special permit, the foreign
national may become a member of the APO subject to the rules and procedures of
its membership.
RULE V
PENAL AND FINAL PROVISIONS
SECTION 36 - Penal Provision. – Any person who shall violate any of
the provisions of RA No. 9298 or this Implementing Rules and
Regulations as promulgated by the Board subject to the approval of the
Commission, shall, upon conviction, be punished by a fine of not less than
fifty thousand pesos (P50,000.00) or by imprisonment for a period not exceeding
two (2) years or both.
SECTION 37 - Implementing Rules and Regulations. – Within ninety (90)
days after the effectivity of RA No. 9298, the Board, subject to
the approval of the Commission and in coordination with the APO, shall adopt
and promulgate such rules and regulations to carry out the provisions of RA No.
9298 and which shall be effective fifteen (15) days following their publication
in the Official Gazette or in any major daily newspaper of general circulation.
SECTION 38 - Interpretation of RA No. 9298
and its Implementing Rules and Regulations.
– Nothing in the RA No.
9298 and this Implementing Rules and Regulations shall be construed to effect
or prevent the practice of any other legally recognized profession.
SECTION 39 - Enforcement of RA No. 9298 and its Implementing Rules
and Regulations . – It shall be
the primary duty of the Commission and the Board to effectively enforce the
provisions of RA No. 9298 and this Implementing Rules and Regulations. All duly
constituted law enforcement agencies and officers of national, provincial, city
or municipal government or of any political subdivision thereof, shall, upon
the call or request of the Commission or the Board, render assistance in
enforcing the provisions of RA No. 9298 and this Implementing Rules and
Regulations and to prosecute any person violating the provisions of the same.
The Secretary of Justice or his duly designated representative shall act as
legal adviser to the Commission and the Board and shall render legal
17
assistance
as may be necessary in carrying out the provisions of RA No. 9298 and this
Implementing Rules and Regulations.
Any person may bring before the Commission, Board or the
aforementioned officers of the law, cases of illegal practice or violations of
RA No. 9298 and this Implementing Rules and Regulations committed by any person
or party.
The Board shall assist the Commission in filing the appropriate
charges through the concerned prosecution office in accordance with law and
rules of court. Provided, That for the orderly implementation of this
provision, the Commission and the Board may enter into a Memorandum of
Agreement with each law enforcement agency and/or the Department of Justice
providing for the procedures to be followed for the call or request for
assistance. Provided, Further, That in the enforcement, implementation,
and administration of the provision of RA No. 9298 and its IRR, the Rules and
Regulations governing the regulation and practice of Professionals and the
Rules and Regulations implementing the provisions of Republic Act No. 8981
shall be applicable thereto, insofar as the latter are not inconsistent with
the former.
SECTION 40 - Funding Provision. – The chairperson of
the Professional Regulation Commission shall immediately include
in the Commission ’s programs the implementation of RA No. 9298 and this
Implementing Rules and Regulations the funding of which shall be included in
the annual General Appropriations Act. Provided, That the amount necessary to
carry out the initial implementation of RA No. 9298 shall be charged against
the current year ’s appropriation of the Commission. Thereafter, sums as maybe
necessary for the continued implementation of RA No. 9298 shall be included in
the succeeding General Appropriations Act (GAA).
SECTION 41 - Transitory Provision. – The incumbent
chairman and members of the Board shall continue to serve in
their respective positions under the terms for which they have been appointed
under Presidential Decree No. 692, without the need of new appointments. Provided,
That the incumbent chairman and members of the Board shall not be disqualified
for appointment in the Board for the terms allowed under RA No. 9298. Provided,
Further, That such Board members shall undergo the process of nomination
under Executive Order No. 496 Series of 1991.
All graduates with a Bachelor’s Degree, major in Accounting shall
be allowed to take the CPA Licensure Examination within two (2) years from the
effectivity of RA No. 9298 (or until May, 2006) under the rules and regulations
to be promulgated by the Board subject to the approval by the Commission.
SECTION 42 - Separability Clause. – If any clause,
provision, paragraph or part of RA No. 9298 and this Implementing
Rules and Regulations shall be declared unconstitutional or invalid, such
judgment shall not affect, invalidate or impair any other part hereof, but
shall be merely confined to the clause, provision, paragraph or part directly
involved in the controversy in which such judgment has been rendered.
SECTION 43 - Repealing
Clause. – Any rule and regulation or resolution or part/s thereof inconsistent
with the provisions of this Implementing Rules and Regulations are hereby
repealed or modified accordingly.
SECTION 44 - Effectivity. – This Implementing Rules and
Regulations shall take effect after fifteen (15) days following
its full and complete publication in the Official Gazette or in any major daily
newspaper of general circulation.
18
Promulgated
in the City of Manila this ___ day of September, 2004.
EUGENE T. MATEO
Chairman
JOHN S. BALA
Vice-Chairman
|
SOLITA
V. DELANTAR
|
FROILAN G. AMPIL
|
|
Member
|
Member
|
|
ESTELITA C. AGUIRRE
|
MA. ELENITA B.
CABRERA
|
|
Member
|
Member
|
LUCILA C. TARRIELA
Member
ATTESTED
CARLOS G. ALMELOR
Secretary
Professional Regulatory Boards
Approved as the Implementing Rules and
Regulations of Republic Act No. 9298 otherwise known as the Philippine
Accountancy Act of 2004, this _____day of September, 2004.
ANTONIETA FORTUNA-IBE
Chairperson
|
AVELINA DE LA REA
|
LEONOR T. ROSERO
|
|
Commissioner
|
Commissioner
|
19
RULES AND REGULATIONS
IMPLEMENTING SECTION 30, ARTICLE IV OF REPUBLIC ACT NO. 9298 OTHERWISE KNOWN AS
THE PHILIPPINE ACCOUNTANCY ACT OF 2004 COVERING THE ACCREDITATION OF AN
ACCREDITED NATIONAL PROFESSIONAL ORGANIZATION OF CPAs, RENEWAL OF CERTIFICATE
OF ACCREDITATION AND ITS SUSPENSION/CANCELLATION.
1.
STATUS OF THE PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
(PICPA) – The PICPA which was recognized by the Commission, as the APO on
October 2, 1975 per Accreditation No. 15, shall continue to enjoy its
accreditation with the same number subject to compliance with the requirements
prescribed herein.
2. CONDITIONS FOR THE CONTINUITY OF THE ACCREDITATION OF PICPA. – In order to maintain its recognition as the APO by the
Commission, it must meet the following requirements:
a.
It is established for the benefit and welfare of the CPAs, the
advancement of their profession, and the attainment of other professional ends;
b.
Its membership is open to all registered CPAs without
discrimination;
c.
Its membership shall include CPAs in all sectors namely, public
practice, commerce and industry, academe/education and government;
d. It shall have a creditable plan to enlist into active membership
within three (3) years, at least a majority of the CPAs in the practice of
accountancy as defined in Section 4, Rule I of this IRR;
e. It shall have adequate chapters/regions in major areas in the
Philippines to effectively attend to the needs of its members. Its national
directors shall be elected in accordance with the provision of the Corporation
Code of the Philippines and they should be representative of the sectors in the
regions, consistent with the emphasis in RA No. 9298 on sectoral practice of
accountancy. There should only be one (1) director coming from a firm/company
and their affiliates. A director can only represent a sector in a region if
he/she has been a member in good standing in such sector in the region for at
least two (2) years at the time of his/her nomination;
There shall only be fifteen (15) national directors, unless there
is a valid reason to have additional representation. The fifteen (15) national
directors shall be apportioned according to sectors in the four geographic
areas (eg. National Capital Region, Luzon, Visayas and Mindanao) based on the
ratio of latest available number of members in good standing from those areas;
The PICPA shall adopt rules and regulations to implement this
distribution of its national directors including the rotation of its president
by sectors in each of the regions and accordingly amend its Articles of
Incorporation and By-laws not later than ninety (90) days after the effectivity
of this rules and regulations;
f.
It shall be judicious and prudent in the management of its
financial resources and for this purpose its chapter/region/national office and
their respective foundation shall keep proper books of accounts and submit
audited annual financial statements thereof. The national office shall
consolidate these financial statements on annual basis for submission to the
Board and the Commission in accordance with the applicable accounting
procedures;
20
g.
It shall have a full time
career Executive Director who shall implement the policies promulgated by the
PICPA Board of Directors and shall have direct supervision over the PICPA
Secretariat;
h.
It is duly registered as a non-stock corporation or association by
the Securities and Exchange Commission (SEC). It shall coordinate with the
Board and the Commission any amendment to its articles of incorporation and by-
laws or any execution of a new articles of incorporation and by- laws before filing
them for registration at the SEC; and
i.
It has paid the prescribed accreditation fee.
In support of the above requirements, PICPA shall submit the
following documents within ninety (90) days from the approval of this rules and
regulations:
a.
A notarized petition signed by the PICPA President stating, among
others, that the organization was established for the benefit and for the
advancement of the profession;
b.
List of its national directors and officers and a suitable organization
chart (with job description of each officer) showing the working relationship
of each director and officer;
c.
List of chapters and their respective members indicating their
respective Certificate of Registration and dates of registration and their
Professional Identification Card Numbers, dates of issuance and expiry;
d.
List of regions and their respective officers and the chapters and
officers within each region;
e.
Original copy of the latest certificate of registration issued by
the Securities and Exchange Commission (SEC) and the certification of
registration of their foundations;
f.
Certified true copy by SEC of the PICPA ’s current Articles of
Incorporation and By- laws;
g.
SEC certification of current registration and compliance with SEC
rules; and
h.
Latest audited consolidated financial statements of the national
office and the regions and chapters and their respective foundations. If the
consolidated financial statements cannot be audited for any reason, the
separate audited financial statements of the national office, regions and
chapters and their respective foundations shall be submitted.
After PICPA satisfactorily meets the requirements for the
continuity of its accreditation, the Commission upon recommendation by the
Board shall issue a Resolution approving its re-accreditation and directing the
issuance of the Certificate of Accreditation thereto upon payment of the
prescribed accreditation fee.
3.
RENEWAL OF CERTIFICATE OF ACCREDITATION. – The PICPA shall renew
its Certificate of Accreditation once every three years (3) years after
the date of the Resolution granting the petition for re-accreditation and the
issuance of the said certificate upon submission of the requirements enumerated
Paragraph 2 hereof, a report on significant achievements as a corporate body in
attaining the objectives of the organization, in the enhancement of the welfare
of its members and the stature/prestige of the profession to be signed by Board
Directors/Trustee and a proof of payment of the prescribed renewal fee.
21
4.
CANCELLATION OF ACCREDITATION. – The PICPA certificate
of accreditation shall be cancelled or suspended by the Commission upon
recommendation by the Board after due hearing under any of the following
grounds/causes:
a.
It has ceased to possess any of the qualifications for
accreditation.
b.
It no longer serves the best interest of the CPAs.
c.
It did not achieve its plan provided in paragraph 2 to enlist into
active membership within three
(3) years, majority of the
CPAs in the practice of accountancy as defined in the Section 4, Rule I hereof
or even if it achieves such plan but fails to sustain it over time such that
its membership no longer represents a significant portion of the aforesaid CPAs
in the practice of accountancy.
d.
It has committed acts inimical to its members and to the
profession.
e.
It has not renewed its certificate of accreditation after a lapse
of an unreasonable period for the date of its scheduled renewal.
f.
It has not submitted the required audited financial statements
provided in Paragraph 2 thereof.
5.
EFFECT OF NON- RENEWAL, CANCELLATION OR SUSPENSION OF
ACCREDITATION. – If PICPA’s certificate of accreditation has been cancelled or not
renewed or whose accreditation has been suspended, it cannot represent
the accountancy profession during the period of suspension, cancellation or
non-renewal of certificate.
22
RULES AND REGULATIONS
IMPLEMENTING SECTION 31, ARTICLE IV OF REPUBLIC ACT NO. 9298 OTHERWISE KNOWN AS
THE PHILIPPINE ACCOUNTANCY ACT OF 2004 COVERING THE ACCREDITATION OF INDIVIDUAL
CPAs, FIRMS AND PARTNERSHIPS OF CPAs ENGAGED IN THE PRACTICE OF PUBLIC ACCOUNTANCY
1.
REGISTRATION
i.
Within ninety (90) days from the effective date of this revised
rules and regulations, Individual CPAs, including staff members thereof, Firms,
including the sole proprietors and staff members thereof and Partnerships of
CPAs including the partners and staff members thereof who/which are not yet
registered under the rules and regulations prescribed by Board Resolution No.
38, Series of 1990, as amended by Board Resolution No. 69 Series of 2002 shall
register with the Board and the Commission in the manner provided for in
Paragraph 1 (c) hereof. On the other hand, Individual CPAs, Firms and
Partnership with current and valid registration under the said rules and
regulation need to submit only the additional requirements provided in this
revised rules and regulations within ninety (90) days from the effective date
thereof. The registration shall be valid for a period of three (3) years and
may be renewed every three (3) years on or before September 30 on the year of
expiry upon compliance of the requirements provided in this revised rules and
regulations. The registration of applicants approved during any month of the
year shall expire on December 31 on the third year following its approval (i.e.
if the application of registration of ABC and Company CPAs was approved on July
31, 2002, the registration shall expire on December 31, 2004 and therefore it
shall file for renewal on or before September 30, 2004 for the three year
period beginning January 1, 2005 and shall apply on or before September 30,
2007 for the next three (3) year period beginning January 1, 2008 and so
forth).
ii.
Individual CPAs, including staff members thereof, Firms, including
the sole proprietors and staff members thereof and Partnerships of CPAs
including the partners and staff members thereof organized after the effective
date of this revised rules and regulations shall register with the Board and
the Commission in the manner provided for in Paragraph 1 (c) hereof, and shall
not commence the practice of public accountancy until a valid Certificate of
Registration has been issued in accordance with Paragraph 1 (g) hereof.
iii.
The application for registration shall be accomplished in the form
prescribed by the Board, in triplicate, and duly signed by the applicant
Individual CPA, sole proprietor of the applicant Firm or authorized partner of
the applicant Partnership. The application for registration shall contain such
information as maybe required by the Board including, but not limited to, the
following matters:
i.
Name of the Individual CPA,
Firm or Partnership. In the case of an Individual CPA, he/she shall do business
under his registered name with the Board and the Commission and as printed in
his/her CPA cert (i.e.“Juan de la Cruz,CPA.”) In the case of Firms, they shall
do business under their respective duly registered and authorized Firm name
appearing in the registration documents issued by the Department of Trade and
Industry (DTI) or any other proper government office(s) and such Firm name
shall include the real name of the sole proprietor as printed in his CPA
certificate (i.e. “Juan de la Cruz and Associates”) or other similar Firm
names. In the case of registered Partnerships, they shall do business under their
respective Partnership names as indicated in their current Articles of
Partnership and certificates of registration issued by the Securities and
Exchange
23
Commission (SEC) or under the Partnership names as indicated in
their current Articles of Partnership in case of unregistered partnerships
(e.i. "Cruz, Isidro, Martin,and Company") or other similar
Partnership names.
A CPA shall practice only under an individual, firm or partnership
name allowed in accordance with Philippine laws and shall not include any
fictitious name, indicates specialization or is misleading as to the type of
organization (proprietorship or partnership). A partner surviving the death or
withdrawal of all the other partners in a Partnership may continue to practice
under the Partnership name for a period of not more than two (2) years after
becoming a sole proprietor. (This means that on or before reaching the end of
the two (2) year period, the resulting sole proprietor if he/she continues to
practice under a proprietorship form of organization, shall change the old
Partnership name to an Individual CPA or Firm name subject to the provision of
the first paragraph hereof).
Name (s) individual CPA, sole proprietor or partners together with
a copy of his/her/their professional identification card(s) issued by the Board
and the Commission.
ii.
Certified copy of the certificate of registration issued by the
SEC together with the certified copy of the current Articles of Partnership for
registered partnership, or the certified copy of the Articles of Partnership
for unregistered partnership or certified copy of the certificate of
registration of Firm name with the DTI or other proper government agencies.
iii.
Complete business and postal address, telephone and/or facsimile
numbers, e- mail address, website of principal office including branch(es),
sub-offices, if any.
iv.
Certified copies of all business permits issued by the local
and/or national government.
v.
Certified copy of the document showing the correspondent
relationship, membership or business dealings with foreign CPA firm(s), if any,
including complete business and postal address, telephone and/or facsimile
numbers, e- mail address and website thereof. The documents shall be
comprehensive in scope to describe the nature of the correspondent
relationship, membership or business dealings and to indicate the specific
terms and conditions thereof including the specific obligation and rights of
the foreign CPA over the Filipino CPA and vice-versa. Under no circumstances
shall the correspondent relationship, membership or business dealings with
foreign CPAs be a scheme for the foreign CPAs to engage in the practice of
public accountancy in the Philippines who/which under the present laws are
limited to Filipino CPAs (except the authorized foreign CPAs under Sections 34
and 35 of RA No. 9298 duly registered with the Board and the Commission). The
Individual CPA, sole proprietor of the Firm and managing partner of the
Partnership as the case maybe shall attach to the application for registration
a sworn statement stating that:
·
the copy of the aforesaid document showing the correspondent
relationship, membership, or business dealings with the foreign CPA is the
faithful reproduction of its original copy,
·
the foreign CPA is not directly or indirectly (through the
Filipino CPA) engaged in the practice of public accountancy in the Philippines,
except the authorized foreign
24
CPAs
under Sections 34 and 35 of RA No. 9298 and any proof of meaningful
participation in, and effectiveness of such training.
· the rights and obligations
of the parties in specific terms.
vi.
Name(s) of staff member(s) who are CPAs together with a copy of
his/her/their CPA Certificate(s) and professional identification card(s) issued
by the Board and the Commission.
vii.
Change(s) if any, in the organization, structure and/or management
of the Individual CPA, Firm or Partnership from the last registration.
viii.
Certified copy of the Code of Good Governance of the Individual
CPAs, Firms or Partnerships if there is any. If there is no such code, the
individual CPA, sole proprietorship or the partnership shall adopt the Code of
Good Governance of Professionals issued by the Commission.
ix.
Copy of the internal quality review procedures being implemented
to ensure compliance with the professional, ethical and technical standards
required of the practice of public accountancy. If the Individual CPA, Firm or
Partnership had undergone quality assurance review by the Board or its duly
authorized representatives, or in any manner pursuant to Paragraphs 3 (a), (b)
and (c) hereof, a certified copy of the report of such review shall be attached
to the application for registration.
x.
Sworn statement by the Individual CPA, sole proprietor of the Firm
and managing partner of the Partnership stating that the Individual CPA and
staff member(s) thereof, the sole proprietor and staff member(s) of the Firm ,
and all the partners and staff member (s) of the Partnership as the case maybe,
(a) had a meaningful participation in their respective internal quality review
process and (b) had undergone adequate and effective training (from
organizations duly accredited by the Board or by its duly authorized representatives),
on all the current accounting and auditing standards, code of ethics, laws and
their implementing rules and regulations, circulars, memoranda, their
respective code of good governance and other related documents that are
required in the practice of public accountancy to ensure professional, ethical
and technical standards, supported with certified copies of certificate (s) of
attendance or any proof of meaningful participation in, and proof of adequacy
and effectiveness of such training.
xi.
In the case of an Individual
CPA and Firm or Partnership of CPAs registering for the first time, the
application of registration shall be accompanied with a sworn statement by the
Individual CPA, sole proprietor of the Firm and managing partner of the Partnership
stating that the Individual CPA, sole proprietor of the Firm, and all the
partners of the Partnership has (have) at least three (3) years of meaningful
experience in any of the areas of public practice including taxation as defined
in Section 4 Rule 4 of the IRR and attach to the sworn statement , a detailed
description of such work experience of the individual CPA, sole proprietor of
the Firm and all the partners of the Partnership.
xii.
Sworn statement by the
Individual CPA, sole proprietor of the Firm and managing partner of the
Partnership stating that the Individual CPA and all his/her staff member(s),
sole proprietor and all the staff member(s) of the Firm , and all partners and
staff member (s) of the Partnership (a) are all of good moral character and (b)
he/she or they had not been found guilty by a competent court and/or
administrative body of any case involving moral
25
turpitude and /or unethical practices and that neither anyone of
them is a defendant in any case of similar nature pending before any competent
court and/or administrative agencies supported by a certificate of clearance
issued by the proper court, administrative or law enforcement agencies for the
individual CPA, sole proprietor, and the partners/principals of the partnership
as the case maybe.
If the Individual CPA or any of his/her staff member(s), or the
sole proprietor or any of the staff member(s) of the Firm, or any of the
partners or staff member(s) of the Partnership is a defendant in a case of such
nature, the applicant Individual CPA, Firm or Partnership shall attach to the
application for registration, a sworn statement by the Individual CPA, sole
proprietor of the Firm or managing partner of the Partnership stating that the
aforesaid defendant(s) has a valid and material defense and specify them as
such accordingly in the sworn statement for the information and consideration
by the Board and the Commission.
iv.
Any change with respect to the matter enumerated in Paragraph 1
(c) (vii) should be reported in writing to the Board, copy furnished the
Commission, within sixty (60) days from such change. Renewals of Certificates
of Registration shall indicate the changes that have taken place since the last
registration.
v.
The Board shall duly authenticate all applications for
registration received in proper form, and after having passed upon such
applications, shall recommend to the Commission the approval or denial thereof
not later than sixty (60) days after the receipt of the aforesaid applications
in proper from (i.e. with complete and proper documentary requirements).
vi.
The Individual CPA, Firm or Partnership of CPAs duly registered
under these revised rules and regulations shall not have as its owner, sole
proprietor, partner or any staff thereof, any foreign CPA unless he/she
qualifies to practice in the Philippines under Sections 34 and 35 Article IV of
RA No. 9298, and/or other relevant laws and bilateral and/or multilateral
agreement or treaties.
vii.
The Commission shall upon favorable recommendation of the Board,
issue to the applicant the corresponding Certificate of Registration to
practice public accountancy. Unless sooner revoked, cancelled or withdrawn,
said Certificate of Registration shall be valid for three (3) years and subject
to the provisions of Paragraph 1 (a) to (g) hereof, shall be renewable every
three (3) years upon payment of the fees in accordance with Paragraph 5 (a)
hereof.
2.
VOLUNTARY WITHDRAWAL OF REGISTRATION/REINSTATEMENT
a.
The Individual CPAs, including staff members thereof, sole
proprietors and staff members thereof and Partnerships of CPAs including the
partners and staff members thereof, duly registered to engage in the practice
of public accountancy may voluntarily withdraw their registration by filing
with the Board a petition in writing stating the reason(s) therefore. The
petition should be duly authenticated and signed by the Individual CPA or any
of his/her staff member, the sole proprietor or any of the staff members
thereof or all the partners of the Partnership, or any of them or any of the
staff member(s) thereof who are requesting for the voluntary withdrawal of
registration
b. At the expense of the petitioners, the Board shall publish or
cause the publication of the request for withdrawal of registration once in a
newspaper of general circulation in the principal place of business of the
Individual CPA, Firm or Partnership. If there is no opposition to the petition,
26
the Board shall recommend approval thereof to the Commission. Upon
approval, the petitioner’s name shall be removed from the roll of Individual
CPAs, Firms and Partnerships of duly registered practitioners of public
accountancy and the petitioner shall be notified in writing of the withdrawal
of the registration.
c.
Upon receipt from the Board of the written notice of the
withdrawal of registration, the petitioner shall cease to engage in the
practice of public accountancy.
d.
The Commission shall publish the list of Individual CPAs,
including staff members thereof, Firms, including the sole proprietors and
staff members thereof or Partnerships of CPAs including the partners and staff
members thereof, whose registration has been cancelled or withdrawn and shall
furnish copies of the list to the pertinent government regulatory agencies.
e.
The Individual CPAs, including any of the staff members thereof,
Firms, including the sole proprietors and any of the staff members thereof or
Partnerships of CPAs including any of the partners and staff members thereof,
that had voluntarily withdrawn their registration, may register anew by filing
an application in accordance with Paragraph 1 (a) to (g) hereof.
3.
QUALITY REVIEW
a.
The Board shall require as a condition to registration or any
renewal thereof for the Individual CPAs, Firms or Partnerships of CPAs to
undergo quality review in such manner as the Board may specify, provided,
however, that any such requirement shall include reasonable provisions for
compliance by a registrant showing that he/she/it has undergone a satisfactory
quality review performed for other purposes which is substantially equivalent
to quality review and shall be made applicable to all Individual CPAs, Firms or
Partnerships.
b.
There is hereby created a Quality Review Committee (QRC) to
conduct an oversight into the quality of audit of financial statements through
a review of the quality control measures instituted by Individual CPAs, Firms
or Partnerships in order to ensure compliance with accounting and auditing
standards and practices, pursuant to Section 9 (h), Rule II.
The QRC shall be composed of seven (7) members with a chairman,
who had been or presently a senior practitioner in public accountancy and six
(6) representatives from the following:
|
a. Board of Accountancy
|
1
|
b.
Accredited National
Professional Organization of CPAs
|
Public Practice
|
2
|
|
|
Commerce and Industry
|
1
|
|
|
Academe/Education
|
1
|
|
|
Government
|
1
|
5
|
|
|
------
|
------
|
|
Total
|
|
6
|
|
|
|
====
|
The Chairman and members of
the QRC shall be appointed by the Commission upon the recommendation of the
Board in coordination with the APO. The QRC shall make an annual review of the
composition of the council and may recommend to the Board and the Commission
27
a
more suitable representation thereto as it may deem fit. The Chairman and the
members of the QRC shall have a term of three (3) years renewable for another
term.
c.
The QRC shall have the following functions:
i.
Conduct quality review on applicants for registration to practice
public accountancy and render a report which shall be attached to the
application for registration;
ii.
Recommend to the Board the revocation of the Certificate of
Registration and the professional identification card of an Individual CPA,
including any of his/her staff members, Firms, including the sole proprietors
and any of his/her staff members and Partnerships of CPAs including the
partners and staff members thereof who has not observed the quality control
measures and who has not complied with the standards of quality prescribed for
the practice of public accountancy. In the event that the QRC cannot accomplish
the aforesaid functions for any reason whatsoever, the Board or its duly
authorized representatives may conduct the required quality review.
4.
DEATH OR DISABILITY OF AN INDIVIDUAL CPA AND DISSOLUTION OR
LIQUIDATION OF A FIRM OR PARTNERSHIP OF CPAS. – The death or disability of an Individual
CPA and/or the dissolution and liquidation of a Firm or Partnership of CPAs
shall be reported to the Board by any designated staff member of the Individual
CPA, the sole practitioner (or any designated staff member of the Firm in case
of the unavailability of the sole practitioner) or managing partner of the
Partnership (or any designated partner in case of the unavailability of the
managing partner) not later than thirty (30) days from the date of such death,
dissolution or liquidation. The report shall be made in the form of an
affidavit (in the case of an Individual CPA or a Firm), or by furnishing the
Board with a certified copy of the dissolution or liquidation papers filed with
the SEC in the case of a Partnership. Failure to notify the Board of such
death, dissolution or liquidation shall subject the designated staff member of
an Individual CPA, sole proprietor or designated staff member of the Firm or
managing partner or designated partner of the Partnership to the penalties
provided herein.
5.
FEES AND PENALTIES
a. Application for initial registration, renewal and request for
reinstatement, shall be subject to the fee of One Thousand Pesos (P1,000.00) or
to such an amount as the Commission may prescribe.
b.
Subject to review by the Commission and depending on the gravity
of the offense(s), the Board shall suspend or revoke the CPA Certificate,
Certificate of Registration and professional identification card of an
Individual CPA, sole proprietor, partner or staff member as the case maybe who
commits any act that is violative of the Code of Ethics for Professional
Accountants, Philippine Accountancy Act of 2004, these revised implementing
rules and regulations, the circulars, rules, regulations or resolutions of the
Board, Commission, SEC or any other regulatory agency(ies) or any act that does
not comply with the professional, ethical and technical standards required of
the practice of public accountancy, provided, that if the act or acts committed
constitute(s) a criminal offense punishable under RA No. 9298 and its IRR,
and/or other existing penal laws, the party or parties responsible shall be
proceeded against criminally, independent of any action herein provided.
c.
Violations of these revised implementing rules and regulations
shall include, but shall not be limited to the following acts by Individual
CPAs, including staff members thereof, Firms,
28
including
the sole proprietors and staff members thereof and Partnerships of CPAs
including the partners and staff members thereof:
i.
Engaging in public accounting practice without first registering
with the Board and the Commission;
ii.
Continuing to engage in the practice of public accountancy after
the expiration of the registration;
iii.
Continuing to engage in the practice of public accountancy after
suspension, revocation, or withdrawal of the registration;
iv.
Giving any false information, data, statistics, reports or other
statement which tend to mislead, obstruct, or obscure the registration of a
Individual CPA, Firm or Partnership of CPAs under these revised rules and
regulations;
v.
Giving any misrepresentation to the effect that registration was
secured when in truth and in fact , it was not secured;
vi.
Failure or refusal to undergo quality review specified in
Paragraphs 3 (a), (b) and (c) hereof; and
vii.
Failure to comply with the requirements provided under Paragraph 1
(c), hereof.
6. REMISSION OF FINES OR LIFTING OF SANCTIONS IMPOSED. – Subject to the approval of the Commission, the Board
may, for justifiable reasons, lift the sanctions imposed on Individual CPAs,
and/or any staff member thereof, Firms including their sole proprietors and/or
any staff members thereof or Partnerships including their partners and/or any
staff members thereof; and
29
ANNEX “C”
RULES AND REGULATIONS
IMPLEMENTING SECTION 32, ARTICLE IV OF REPUBLIC ACT NO. 9298 OTHERWISE KNOWN AS
THE PHILIPPINE ACCOUNTANCY ACT OF 2004 COVERING THE CONTINUING PROFESSIONAL
EDUCATION (CPE) PROGRAMS FOR CPAs IN THE PRACTICE OF ACCOUNTANCY
1.
CPE OBJECTIVES, DEFINITION, NATURE, AND RATIONALE
a.
Objectives – The CPE program shall have these objectives:
i.
To provide and ensure the continuous education of a registered
professional with the latest trends in the profession brought about by
modernization and scientific and technological advancements;
ii.
To raise and maintain the professional’s capability for delivering
professional services;
iii.
To attain and maintain the highest standards and quality in the
practice of his profession;
iv.
To make the professional globally competitive; and
v.
To promote the general welfare of the public.
b.
Definition – Continuing Professional Education (CPE) refers to the
inculcation, assimilation and acquisition of knowledge, skills,
proficiency and ethical and moral values, after the initial registration of a
professional that raise and enhance the professional’s technical skills and
competence.
c.
Nature – The CPE program consists of properly planned and structured
activities, the implementation of which requires the participation of a
determinant group of professionals to meet the requirements of voluntarily
maintaining and improving the professional standards and ethics of the
profession.
d.
Rationale – Voluntary compliance with the CPE program is an effective and
credible means of ensuring competence, integrity and global
competitiveness of professionals in order to allow them to continue the
practice of their profession.
2.
THE PRC CPE COUNCIL: CREATION, COMPOSITION, TERMS OF OFFICE,
FUNCTIONS, MEETINGS
i.
Creation – The Board, upon approval by the PRC, shall create a Council
within thirty (30) days from the effectivity of this resolution. This
shall be known as the PRC CPE Council which shall assist the Board in
implementing its CPE program.
ii.
Composition – the PRC CPE Council shall be composed of a chairperson and two
(2) members. The chairperson of CPE Council shall be chosen from among
the members of the Board by the members themselves. The first member shall be
the president or, in his/her absence or incapacity, any officer chosen by the
Board of Directors of PICPA. The second member shall be the president or, in
his/her absence or incapacity, any officer of the organization of deans or
department heads of schools, colleges or universities offering the degree
requiring licensure
30
examination. In the absence of such organization, the second
member shall be chosen and appointed by the PRC Chairperson from at least three
(3) recommendees of the Board concerned. Said recommendees shall be well-known
academicians.
iii.
Terms of Office – The term of office of the chairperson of the PRC CPE Council
shall be co-terminus with his/her incumbency in the PRC. The first member shall
have a term of office co-terminus with his/her incumbency as officer of the
PICPA; the second member shall have a term of office co-terminus with his/her
incumbency as officer of the organization of deans or heads of departments. The
chairperson, first member and second member shall continue to function as such
in the PRC CPE Council until the appointment or election of their respective
successors in the Board, PICPA or organization.
iv.
Exercise of Powers and Functions – The PRC CPE Council
shall, upon a majority vote, exercise powers and functions which shall
include but shall not be limited to the following:
i.
Accept, evaluate and approve applications for accreditation of CPE
providers
ii.
Accept, evaluate and approve applications for accreditation of CPE
programs, activities or sources as to their relevance to the profession and
determine the number of CPE credit units to be earned on the basis of the
contents of the program, activity or source submitted by the CPE providers.
iii.
Accept, evaluate and approve applications for exemptions from CPE
requirements.
iv.
Monitor the implementation by the CPE providers of their programs,
activities or sources.
v.
Assess periodically and upgrade criteria for accreditation of CPE
providers and CPE programs, activities or sources.
vi.
Perform such other related functions that may be incidental to
implementation of the CPE programs or policies.
v.
Functions of the PRC CPE Council Chairperson. – The PRC CPE Council
Chairperson shall have the following functions:
i.
To preside over the meetings of the PRC CPE Council.
ii.
To direct or supervise the activities of the PRC CPE Council.
iii.
To submit minutes of regular and special meetings within 30 days
from date of said meetings.
iv.
To submit annual reports
v.
To issue certificate of registration to CPE providers found by the
Council to be qualified in accordance with this Guidelines as well as
certificate of accreditation of programs, activities and sources.
vi.
Secretariat – The Chairperson
31
i.
Ensure that the sessions, meetings or proceedings of the PRC CPE
Council are recorded;
ii.
Prepare the minutes of all the meetings and proceedings of the PRC
CPE Council;
iii.
Receive applications for accreditation of CPE providers, programs,
activities or sources;
iv.
Submit to the PRC CPE Council applications for accreditation of
aspiring CPE providers and CPE programs, activities or sources;
v.
Release Certificates of Accreditation to CPE providers and
programs, activities or sources; and
vi.
Assist the PRC CPE Council by providing relevant statistical data
on the renewal of professional licenses and other related matters.
The Secretary, shall exercise general supervision and control over
the PRC CPE Council Staff, who shall be selected by the Chairperson of the PRC
from among the existing personnel of the PRC. The PRC CPE Council Staff shall
have, among others, the following functions:
i.
Release CPE Certifications of credit units earned to the
professionals;
ii.
Keep all records, paper and other documents relative to the
evaluation, approval and accreditation of CPE programs, activities or sources;
and
iii.
Maintain records of accredited CPE providers, on-going, continuing
or completed CPE programs, activities or sources, the list of participants and
other relevant data.
vii.
Meetings – The PRC CPE Council shall hold regular meetings once a month on
dates to be fixed by said Council. Special meetings may be called by a
Chairperson or upon written request of at least a member of the PRC CPE
Council.
viii.
Involvement of PICPA – The PRC CPE Council, if the need arises, may delegate to the
PICPA the processing of the application, keeping of all records for CPE
providers and their respective programs and credit units earned by each CPA who
avail of the CPE programs and related functions. For this purpose, the PICPA
may create a counterpart CPE Council to be known as PICPA CPE Council and may
ask for reimbursement of reasonable processing fees directly from the
applicants apart from the accreditation fee that the such applicants pay
directly to the Commission. The PICPA CPE Council shall keep a separate books
of accounts of its expenses and amounts collected from the applicants and make
a monthly report thereof to the Commission through the Board. Any excess
collection shall be used exclusively as working capital of the PICPA for the
CPE activities.
3.
CRITERIA FOR ACCREDITATION OF PROVIDERS, PROGRAMS, ACTIVITIES OR
SOURCES; EQUIVALENT CREDIT UNITS; CREDIT REQUIREMENTS; EXEMPTIONS AND OTHER
MATTERS
a.
Criteria for Accreditation – In order to merit accreditation, the
following criteria shall be complied with:
32
i.
Must be a duly registered organization, firm, institution or
agency, or a professional of good standing and has never been convicted of a
crime;
ii.
Shall have an established mechanism and updated instructional
materials to carry out the CPE programs and activities;
iii.
Must have adequate, modern and updated instructional materials to
carry out the CPE programs and activities;
iv.
Shall have instructors, lecturers, trainors and resource speakers
with good moral character, technical competence, facilitation skills and are
holders of current CPA licenses.
For CPE programs, activities or sources
i.
The scope shall be beyond the basic preparation for admission to
the practice of the profession. The contents shall be relevant/related, but not
limited, to the practice of the profession.
ii.
The programs, activities or sources shall enhance the competence
of the professional by upgrading and updating knowledge and skills for the
practice of the profession as brought about by modernization and scientific and
technical advancements in the profession.
b.
Programs, Activities and Sources for Accreditation and Equivalent
Credit Units – Any provider may submit to the PRC CPE Council programs,
activities or sources to be approved and accredited for CPE units. The provider
shall be notified of the disapproval of his CPE programs, activities or sources
without prior approval and accreditation from the Council.
As used in these guidelines the following terms shall mean:
i.
Seminars shall refer to the gathering of professionals which shall include,
among others, workshops, technical lectures or subject matter meetings,
non-degree training courses and scientific meetings.
ii.
Conventions shall refer to a gathering of professionals which shall include,
among others, conferences, symposia or assemblies for round table
discussions.
iii.
Masteral Degree shall refer to a graduate degree in accountancy, business or
related field from a recognized school, college or university.
iv.
Doctoral Degree shall refer to a post graduate degree in accountancy, business or
related field from a recognized school, college or university.
v.
Authorship shall refer to the ownership of intellectual property which
includes technical or professional books, instructional materials and
the like. Credits earned must be claimed within one (1) year from the date of
publication.
33
vi.
Self-Directed Learning Package shall refer to learning which uses course
manuals or accredited learning modules. Accredited Learning modules
include self-instructional materials or programs which may be in the form of
printed manual, audio and video cassette tapes, films computer-assisted
learning (CAL), study kits, learning aids and modules or the use of the
information highway. These should include among others clearly defined
objectives, adequate content and an evaluation component for each module.
vii.
Post Graduate/In-Service Training shall mean training or
specialization at the post graduate level for a minimum period of one
(1) week.
viii.
Resource Speaker shall refer to a professional who acts as discussion leader or
lecturer in a convention or seminar or similar gathering.
ix.
Peer Reviewer shall refer to a professional who acts as an evaluator of a
research paper, conference paper or journal article before it is
presented or published.
x.
CPE Provider shall refer to a natural person or a juridical entity which
includes among others, accredited or non-accredited professional
organization, firm, partnership, corporation or institution which offers,
organizes or arranges CPE programs, activities or sources for implementation
and administration.
xi.
CPE Programs, Activities or Sources shall refer to the
regime of CPE which enhance the competence of the CPAs by upgrading and
updating knowledge and skills for the profession as brought about modernization
and scientific and technical advancements in the profession. The scope shall be
beyond the basic preparation for admission to the practice of the profession.
The content shall be related but not limited to the practice of the profession.
4.
MATRIX FOR CPE PROGRAMS, ACTIVITIES OR SOURCES
|
|
PROGRAMS
|
CREDIT UNITS
|
SUPPORTING
|
|
|
|
DOCUMENT
|
|
|
|
|
|
|
|
1 SEMINARS/CONVENTION
|
|
|
|
|
|
|
|
|
|
|
1.1
|
PARTICIPANT
|
1 CU PER HOUR
|
CERTIFICATE
OF ATTENDANCE
|
|
|
|
|
|
WITH
|
|
|
|
|
|
NUMBER
OF HOURS, SEMINAR
|
|
|
|
|
|
PROGRAM CERTIFIED LIST OF
|
|
|
|
|
|
PARTICIPANTS
|
|
|
|
|
|
|
|
|
1.2
|
RESOURCE
SPEAKER
|
5 CU PER HOUR
|
PHOTOCOPY
OF PLAQUE
|
|
|
|
|
|
CERTIFICATION AND COPY OF
|
|
|
|
|
|
PAPER, PROGRAM INVITATION
|
|
|
|
|
|
|
|
|
1.3
|
PANELIST/REACTOR
|
3 CU PER HOUR
|
CERTIFICATION
FROM
|
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SPONSORING ORGANIZATION AND
|
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COPY OF PROGRAM
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1.4
|
FACILITATOR/MODERATOR
|
2 CU PER HOUR
|
CERTIFICATION
FROM
|
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|
SPONSORING ORGANIZATION AND
|
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COPY OF PROGRAM
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2 PREPARATION
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(Residential
and Distance Mode)
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2.1
|
MASTER’S DEGREE
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1 CU PER ACADEMIC UNIT
|
UNIVERSITY CERTIFICATION
|
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34
|
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30 CU
ADDITIONAL UPON
|
DIPLOMA AND TRANSCRIPT
|
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COMPLETION OF DEGREE
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OF RECORDS
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2.2
|
DOCTORAL
DEGREE
|
2 CU PER
ACADEMIC UNIT
|
UNIVERSITY CERTIFICATION
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45 CU ADDITIONAL UPON
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DIPLOMA AND TRANSCRIPT
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COMPLETION OF DEGREE
|
OF RECRODS
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3
SELF-DIRECTED LEARNING
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PACKAGE
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3.1
|
MODULE
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10 CU PER COMPLETE SET
|
COPY OF
DULY-ACCOMPLISHED
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OF
MODULE
|
MODULE AND EVALUATION
|
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3.2
|
TECHNICAL
PAPER /
|
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1
CU/PROFESSIONAL /
|
COPY OF
DULY-ACCOMPLISHED
|
|
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|
PROFESSIONAL
JOURNAL
|
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TECHNICAL ARTICLE
|
ARTICLE AND EVALUATION
|
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ARTICLE
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4
AUTHORSHIP
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4.1
|
RESEARCHING
/ INNOVATIVE
|
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10 CREDIT
UNITS
|
DULY
CERTIFIED/PUBLISHED
|
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PROGRAMS / CREATIVE
|
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TECHNICAL REPORT/PAPER
|
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PROJECTS
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4.2
|
BOOK /
MONOGRAPH
|
(25-50 Pp)
(51-100 Pp) (100 OR MORE Pp)
|
PUBLISHED BOOK WITH PROOF
|
|
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20 CU
|
30 CU
|
40 CU
|
OF COPYRIGHT
|
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|
SINGLE AUTHOR
|
10 CU
|
20 CU
|
30 CU
|
|
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2 AUTHORS
|
5 CU
|
10 CU
|
20 CU
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3 OR MORE
|
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4.3
|
EDITOR
|
|
½ OF THE CU OF
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PUBLISHED
BOOK WITH PROOF
|
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AUTHORSHIP CATEGORY
|
OF AUTHORSHIP
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4.4
|
ARTICLE
|
(1- 3 Pp)
|
(4-6 Pp)
|
(7 OR MORE
Pp)
|
PROOF OF PUBLICATION OF
|
|
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|
SINGLE
AUTHOR
|
4 CU
|
6
CU
|
8 CU
|
ARTICLE
|
|
|
|
2 AUTHORS
|
3 CU
|
4
CU
|
6 CU
|
|
|
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|
3 OR MORE
|
2 CU
|
3
CU
|
4 CU
|
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4.5
PROFESSIONAL JOURNAL
|
|
5 CU PER ISSUE
|
COPY OF
PUBLISHED JOURNAL
|
|
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|
EDITOR
|
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|
4.6 PEER
REVIEWER
|
|
2 CU ARTICLE
|
DULY
CERTIFIED COPY OF
|
|
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|
PUBLISHED ARTICLE/BOOK
|
|
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|
5
INVENTIONS
|
10-30 CREDIT UNITS PER
|
CERTIFIED
COPY OF PATENT
|
|
|
|
|
|
INVENTION
|
CERTIFICATE
|
|
|
|
|
|
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|
6
POSTGRADUATE / IN-SECURE
|
|
0.25 CU PER HOUR
|
CERTIFICATE
OF TRAINING AND
|
|
|
TRAINING
|
(MAXIMUM OF 40 CU / TRAINING)
|
TRAINING DESCRIPTION
|
|
|
|
|
|
|
|
7 STUDY /
OBSERVATION
|
2 CU /
DAY (MAXIMUM OF
|
CERTIFICATION
FROM
|
|
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|
|
|
30 CU / TOUR
|
SPONSORING INSTITUTION
|
|
|
|
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|
8
PROFESSIONAL CHAIR
|
|
10 CU / CHAIR / YEAR
|
CERTIFICATION
OF GRANT OR
|
|
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|
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|
|
|
APPOINTMENT PAPER
|
|
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SUCH OTHER
ACTIVITIES/
|
|
|
|
|
|
|
PROGRAMS /
SOURCES TO BE
|
|
|
|
|
|
|
RECOMMENDED
BY THE COUNCIL
|
|
|
|
|
|
|
AND
APPROVED BY THE
|
|
|
|
|
|
|
COMMISSION,
such as:
|
|
|
|
|
|
|
Meetings
of standard – setting
|
_5 CREDIT UNITS PER
|
MUNITES OF MEETING;
|
|
|
bodies for
the Accountancy
|
PRESENTATION
|
|
CERTIFICATION
FROM
|
|
|
Profession
(FRSC and AASC):
|
_2 CREDIT UNITS PER
|
COUNCIL SECRETARY
|
|
|
Researcher/Discussant
|
MEETING
|
|
|
|
|
Participant
|
|
|
|
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|
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|
|
5. CPE Credit Units
The total CPE credit units for registered
accounting professionals shall be sixty (60) credit units for three (3) years,
provided that a minimum of fifteen (15) credit units shall be earned in each
year. Any excess credit units in one year may be carried over to the succeeding
years within the three-year
35
period. Excess credit units earned shall not be carried over to
the next three-year period except credit units earned for doctoral and master’s
degrees.
One credit hour of CPE program, activity or source shall be
equivalent to one (1) credit unit.
6. Procedures
The PICPA CPE Council shall observe the following procedures for
the accreditation of CPE providers and CPE programs, activities, or sources:
a.
Procedure for accreditation of CPE provider:
i.
Any person seeking to offer an organized or arranged program,
activity or source shall accomplish and submit to the PICPA CPE Council an
application form.
ii.
An application shall include, but shall not limited to the
following information:
-
Full name, address and telephone number of the applicant-provider.
-
Relevant educational background
-
Profession, principal area of professional work and number of
years in the practice of profession.
-
PRC License Number and date of expiration.
-
Current employment
iii.
Applicant-provider shall submit a valid NBI clearance.
In case of juridical entity:
i.
Any agency, organization, institution, association or similar
juridical entity seeking to offer an organized program, activity or source shall
accomplish and submit to the PICPA CPE Council an application form.
ii.
An application shall include, but shall not be limited to the
following information and documents:
-
Full name, address and telephone/fax number/s and e-mail address.
-
Securities and Exchange Commission (SEC) original registration
papers.
-
List of officers with their PRC License Numbers and expiry date if
officer is a member of a regulated profession.
-
Plans for CPE programs or activities for the year applied.
-
Proof of past CPE activities or programs conducted/arranged
(immediate past year) for applicants renewing accreditation.
36
All
applicants shall submit to the PICPA CPE Council the following:
i.
Mechanism for measuring the quality of the program, activity or
source being offered.
ii.
Criteria for selecting and evaluating speakers, resource persons
or lecturers.
b.
Procedures for Accreditation of a CPE Program, Activity or Source:
i.
A CPE provider seeking accreditation of an organized or arranged
CPE program, activity or source shall submit said program, activity or source
(in triplicate) to the PICPA CPE Council for its evaluation and recommendation
for approval to the PRC CPE Council. The program, activity, or source shall
cover a period not to exceed three
(3) years.
ii.
The application for accreditation of a CPE Program, activity or
source shall include the following information and documents:
- Title/s of program/s,
activity/ies or source/s.
- Name of CPE provider, address, phone and
fax numbers. - Date and venue of the Administration of the program.
-
Objectives.
-
Targeted audience or participants.
-
Contents and number of hours
-
Resource speakers, lecturers, discussion leaders, panelist,
reactors, moderators, and facilitators, including their qualifications and
current PRC license if they are members of the regulated profession.
-
Actual program and schedule.
-
Seminar or convention fee to be collected.
-
Evaluation to be used which could either be any of the following
modes or systems:
·
evaluation of seminar by participant.
·
evaluation of participants by CPE providers; tests.
·
other methods of evaluation.
iii.
If the PRC CPE Council concerned finds the CPE program, activity
or source to be relevant to the profession and to be in accordance with these
guidelines, said PRC CPE Council shall issue a certificate of accreditation
within thirty (30) days from receipt of the application.
37
c.
Post-Accreditation Requirements.
Upon the completion of an accredited CPE program, activity or
source, the CPE provider shall submit a report to the PRC CPE Council within 15
days from the last day of the offering. The report shall include, but shall not
be limited to the following information:
i.
Name of CPE provider.
ii.
Name or description of CPE program, activity or source.
iii.
Accreditation number and date of issuance of accreditation.
iv.
Certified list of participants indicating names and PRC
professional license identification cards, and expiry dates, resource speakers,
lecturers, discussion leaders, panelist, moderators, or facilitators who took
part or participated in the CPE program, activity or source.
v.
Date and time of start and completion of the holding of the CPE
program, activity or source.
vi.
Venue/Location of the holding of the program.
vii.
Summary of evaluation results of participants
viii.
Name of Secretariat representative who monitored the CPE program
or activity.
7.
Exemption from CPE Requirements; Procedures
a.
Permanent Exemption
A registered professional shall be permanently exempted from CPE
requirements upon reaching the age of 65 years old. To avail of this exemption,
the professional must:
i.
Submit an application for exemption which should include the
following data:
-
Full name, residence address and phone number of applicant
-
PRC License Number
-
Employment history
·
Position
·
Name of employer
·
Address of employer
ii.
Submit an authentic or authenticated copy of birth certificate. If
birth certificates is not available, submit any of the following: Voter’s ID or
Driver’s License.
38
A registered professional who is working or practicing his/her
profession or furthering his/her studies abroad shall be temporarily exempted
from compliance with CPE requirement during the period of his/her stay abroad,
provided that he/she has been out of the country for at least two years
immediately prior to the date of renewal.
Any professional availing of this temporary exemption must:
i.
Submit an application for temporary exemption, to include the
following data:
-
Full name, residence address and phone number of applicant;
-
PRC License Number;
-
Degree obtained; college or university attended, year graduated;
-
Principal area of professional work;
-
If employed:
·
Position
·
Name of employer
·
Address of employer
·
Certificate of employment
-
If furthering studies abroad, certificate of enrollment from
college or university where presently enrolled.
ii.
Submit original, or authenticated copy of passport, photocopy of
inside front cover, page 2, and the page/s containing visa of country,
indicating date of arrival/departure.
A permanent exempt registered professional shall be allowed to
renew his/her License without complying with the CPE requirements upon his/her
accomplishment and submission of the necessary papers as previously mentioned
and upon payment of the annual registration fee for three (3) years for as long
as he/she continues to be out of the country.
8.
Sanctions
a.
Registered CPAs
Unless otherwise exempted, registered CPAs in the practice of
accountancy who have not completed the CPE requirements provided herein shall
not be allowed to renew their professional licenses. Those who failed to renew
their professional licenses for a period of five
(5) continuous years from
initial registration, or from last renewal date shall be declared
39
delinquent
and shall, after due notice, through the website and publication in the
newsletters of PICPA or any newspaper of general circulation, be dropped from
the roster of CPAs.
b.
CPE Provider
Accreditation shall be withdrawn from the CPE Provider who:
i.
Is found not to comply with the implementing rules and regulations
for CPE, or
ii.
Has committed substantial deviation from the approved program, or
iii.
Has submitted false reports, or
iv.
Has committed such other acts that the PRC CPE Council finds to be
in violation of the intent of the program.
c.
PRC Employees
Any employee of the PRC who causes, abets or helps in the renewal
of the license of a professional without complying with CPE requirements shall
be considered to have violated office and/or civil service rules and
regulations and shall be proceeded against administratively, and, if found
guilty, shall be meted out the penalties provided for by the said laws and
rules and regulations.
40
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