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THE
ACCOUNTING
PROFESSION
AND
ITS
CHARACTERISTICS
In our society, professions are generally recognized as
elite occupational classifications. However, there are no
universally established standards as to what should
make up a profession. Experts identified five major
characteristics of an ideal profession which the CPA
profession satisfies. These are:
A. Systematic body of theory the underlying
theory of the public accounting profession
consists
of
accounting
theory
(generally
accepted accounting principles and practices)
and auditing theory (a science of validation).
Knowledge in systematic theory can be achieved
best through formal college level education in an
academic environment.
B. Professional authority clients who use the
service of the professional do not really
understand their own needs. Thus, the
professional determines what is good or bad for
the client and the client accedes to this
professional judgment. The basis for the CPAs
authority is his expertise in the systematic theory
of accounting and auditing.
C. Community sanction admission to the public
accounting profession is controlled. To become a
CPA, a candidate must satisfy government,
educational and experience requirements and
pass the CPA licensure board examinations. The
PRC through the BOA controls this licensing
system. Although CPAs are responsible to the
community for their actions, it is generally
accepted that a professionals performance
should be judged based on standards established
by the profession itself.
D. Regulations code the powers and privileges
granted to the public accounting profession by
the community effectively constitute a monopoly.
To prevent abuse of this monopoly and to
discipline its members, the Rules of Professional
Conduct or Code of Ethics have been
promulgated and made legally binding through
the Accountancy Act.
E. A culture the CPA is member of a time
honored profession and the status of the
profession
and
the
responsibilities
that
accompany this status affect his behavior in the
society. Accounting has developed a professional
culture as evidenced by such factors as the
formal norms of the Code of Ethics, the informal
rules
that
guide
relationships
among
practitioners and the traditions and myths that
have arisen concerning the CPA examination.
Further, the Code of Ethics for Professional Accountants
in the Philippines identifies three distinguishing
characteristics of a profession, namely:
A. Mastery of a particular intellectual skill, acquired
by training and education.
B. Adherence by its members to a common code of
values
and
conduct
established
by
its
administrating body, including maintaining an
outlook which is essentially objective.
C. Acceptance of a duty to society as a whole,
usually in return for restrictions in use of a title or
in the granting of a qualification.
Regulation of the Accounting Profession
The accounting profession is regulated by the following:
A. RA 9298 and its IRR (implementing rules and
regulations).
Republic Act 9298, otherwise known as the
Philippine Accountancy Act of 2004 is the act
regulating the practice of accountancy in the
Philippines which was signed into law on May 13,
2004 repealing Presidential Decree 692, the
Revised Accountancy Law. The act provides and
governs:
The
Professional
Regulatory
Board
of
Accountancy (PRC-BOA) is the official government
agency empowered to enforce RA 9298. The body
is under the administrative supervision of the
Professional Regulation Commission.
Composition of the Board
The Board shall be composed of a Chairman and
6 members to be appointed by the President of
the Philippines. The 4 sectors in the practice of
accountancy shall as much as possible be
equitably represented in the Board.
The Board shall elect a Vice-chairman from among
its members for a term of 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.
Nomination and Appointment Process
A.
F.
Suspension
or
Removal
of
Page|4 of 21
QUALITY
DEPARTMENT
ASSURANCE
REVIEW
Reviews
and
approves
the
individual inspection reports.
termination
from
service
of
subordinate QARD personnel as well
as appropriate disciplinary action to
be taken.
Supervises
the
collection
of
registration fees.
Supervises
the
administrative
aspect
of
training
of
QARD
personnel.
Number
of
Clients
List
ed
Risk
Frequency
of QAR
A (1)
50 or
more
Yes
High
Every year
A (2)
26 to 49
Yes
High
Every year
A (3)
1 to 25
Yes
High
Every year
A (4)
50 or
more
No
Less
Every 2
years
A (5)
26 to 49
No
Less
A (6)
1 to 25
No
Less
Number
of
Clients
More than
200
List
ed
No
Risk
Frequency
of QAR
Minima
l
Every 3
years
101 to
200
No
B (3)
51 to 100
No
B (4)
1 to 50
No
Minima
l
Every 3
years
Minima
l
Minima
l
Every 3
years
Every 3
years
Every 2
years
Every 2
years
B (2)
PRC
CONTINUING
DEVELOPMENT COUNCIL
PROFESSIONAL
E.
the
PRC
CPD
Council
CPD
PROGRAMS
Programs,
Activities
or
CREDIT UNITS
SEMINARS or CONVENTION
Seminars refer to the gathering of professionals
which shall include, among others, workshops,
technical lectures or subject matter meetings, nondegree training courses and scientific meetings
whereas conventions shall refer to a gathering of
professionals which shall include, among others,
conferences, symposia or assemblies for round table
discussions.
Participant
1 CU per hour
Resource speaker
5 CU per hour
Panelist or Reactor
3 CU per hour
Facilitator or
Moderator
2 CU per hour
Book or Monograph
Single author
Two authors
Three or more
25
51>100
-50
100
pp
pp
pp
40 CU
20 CU 30 CU
10 CU 20 CU 30 CU
5 CU 10 CU 20 CU
of the CU of authorship
category
Editor
Article
Single author
Two authors
Three or more
1-3
pp
4 CU
3 CU
2 CU
4-6
pp
6 CU
4 CU
3 CU
>6
pp
8 CU
6 CU
4 CU
Professional journal
editor
5 CU per issue
Peer reviewer
2 CU per article
Technical paper or
10 CU per professional
Professional journal
or technical article
Masteral degree shall refer to a graduate degree
article
in accountancy, business or related field from a
INVENTIONS
recognized school, college or university.
10-30 CU per invention
Doctoral degree shall refer to a post graduate
degree in accountancy, business or related field
POSTGRADUATE OR IN-SERVICE TRAINING
from a recognized school, college or university.
Masteral degree
Doctoral degree
STUDY OR OBSERVATION
2 CU per day at a maximum of 30 CU per tour
AUTHORSHIP
Authorship refers 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.
Research or
Innovative programs
or Creative projects
10 CU per output
PROFESSORIAL CHAIR
10 CU per chair per year
SUCH OTHER ACTIVITIES, PROGRAMS OR
SOURCES
TO BE RECOMMENDED BY THE COUNCIL AND
APPROVED
BY THE COMMISSION
Such as meetings of standard setting bodies for the
Accountancy Profession (FRSC and AASC) as researcher,
discussant or participant.
Submit
an
authentic
or
authenticated
copy
of
birth
certificate. If birth certificate is not
available, a voters ID or drivers
license will do.
B. Temporary Exemption
A registered professional who is working or
practicing his profession or furthering his
studies abroad shall be temporarily
exempted from compliance with CPD
requirement during the period of his stay
abroad, provided that he 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:
COMMISSION ON AUDIT
E.
G.
F.
H.
I.
J.
K.
L.
M.
N.
the
Members
of
the
INSURANCE COMMISSION
FINANCIAL
COUNCIL
REPORTING
STANDARDS
2
2
2
2
IFRIC,
Philippine Interpretations SIC and the
Philippine Interpretations Committee Q
and As.
Of these, the PASs and Philippine Interpretation
SIC are previously issued standards and
interpretation of the ASC that have been adopted
by the FRSC and the PIC, respectively. Prior to the
issuance of PASs, Philippine accounting standards
issued by the ASC were referred to as
Statements
of
Financial
Accounting
Standards (SFASs).
Adoption of International Standards
The FRSC carries on the decision made by the ASC
to converge Philippine accounting standards with
international accounting standards issued by the
IASB. In the past years, most of the Philippine
standards issued are based on American
accounting standards developed by the USA
Financial
Accounting
Standards
Board
(FASB).
The FRSC monitors the technical activities of the
IASB and invites comments on exposure drafts of
proposed IFRSs as these are issued by the IASB.
When finalized, these are adopted as PFRSs.
Similarly, the FRSC monitors issuances of the IFRS
Interpretations Committee of the IASB, which it
to information and
other related
service
engagements as
specified by the
AASC
through
the
Standards
Application
Related
Practice
Statements
Philippine
Standards on
Quality Control
(PSQCs)
AASC
Engagements
Standards (PSAs,
PSREs, PSAEs,
PSRSs)
Not applicable
Philippine
Standards
on Auditing (PSAs)
Audits of historical
financial
information
Philippine
Auditing Practice
Statements
(PAPSs)
Philippine
Standards
on Review
Engagements
(PSREs)
Review of
historical financial
information
Philippine Review
Engagement
Practice
Statements
(PREPSs)
Philippine
Standards on
Assurance
Engagements
(PSAEs)
Assurance
engagements
dealing with
subject matters
other than
historical financial
information
Philippine
Assurance
Engagement
Practice
Statements
(PAEPSs)
Philippine
Standards on
Related Services
(PSRSs)
Compilation
engagements,
engagements to
apply agreedupon procedures
Philippine Related
Services Practice
Statements
(PRSPSs)
Philippine
Framework
Engagements
for
Assurance
The
Philippine
Framework
for
Assurance
Engagements:
A. Provides a frame of reference for
practitioners and others involved with
assurance engagements.
B. Describes the objectives and elements of
assurance engagements intended to
provide either a high or moderate level of
assurance.
The Framework does not itself establish standards
or provide procedural requirements for the
performance of assurance engagements. It rather
defines and describes the elements and objectives
of an assurance engagement and identifies
engagements to which PSAs, PSREs and PSAEs
apply.
Philippine
Statements
Standards
and
Practice
INTERNATIONAL
AUDITING
ASSURANCE STANDARDS BOARD
AND
on
Related
PHILIPPINE
INSTITUTE
PUBLIC ACCOUNTANTS
OF
CERTIFIED
SECTORAL ORGANIZATIONS
The
other
professional
organizations
that
complement PICPAs objectives and provide
specific professional development and other
requirements of CPAs in different sectors are:
A. Association of CPAs in Public Practice
(ACPAPP).
B. Association of CPAs in Education (ACPAE).
C. Association of CPAs in Commerce and
Industry (ACPACI).
D. Government Association of CPAs (GACPA).
REQUIREMENTS TO OBTAIN A CERTIFICATE OF
REGISTRATION
No person shall practice accountancy in the
Philippines, or use the title Certified Public
Accountant or 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 and be issued a professional
identification card or a valid temporary or special
permit duly issued to him by the Board and the
Commission.
B.
From
in-service
or
in-house
trainings offered by schools or
training centers.