Attributes that Make Accountancy a Profession

Mastery of a particular intellectual skill
Adherence by its members to a common code of values and
conduct
Acceptance of a duty to society as a whole
To join the profession, an individual must first obtain a degree of
Bachelor of Science in Accountancy (BSA) and continue learning
through working experience and continuing professional education.
The CPA Board Exams must be passed before a CPA license is given.
CPAs have their own Code of Ethics which is mandatory for all
members of the profession. Failure to adhere to the Code will usually
result in an investigation of the CPA's conduct.
The CPA's paramount concern is the public. They are viewed as the
guardians of the public interest. By providing assurance to financial
statements and other subject matter, they serve as the connecting arm
between the financial statements prepared by management, and the
public.

Sectors of Accounting Practice

The practice of accountancy shall include, but is not limited to, the following sectors:
1. Practice of Public Accountancy (public practice)
2. Practice in Commerce and Industry (private practice)
3. Practice in Education or the Academe
4. Practice in Government

Practice of Public Accountancy (Public Practice)

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 CPA; or offering or rendering, or both, to more than one client on a fee basis or otherwise, services such as:
1. the audit or verification of financial transaction and accounting records
2. 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
3. the design, installation, review and revision of accounting systems and controls
4. the preparation of income tax returns when related to accounting procedures representation of clients before government agencies, on tax and other
matters related to accounting or the rendering of professional assistance in matters relating to accounting procedures and the recording and presentation
of financial facts or data

Practice in Commerce and Industry

Practice in commerce and industry shall constitute in a person involved in decision-making requiring professional knowledge in the science of
accounting, as well as the accounting aspects of finance and taxation, or when he/she represents his/her employer before government agencies on tax
and other matters related to accounting, or when such employment or position requires that the holder thereofs must be a CPA.

The "5Million/10 Million Rule"

For a business or company in the private sector which 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), duly registered CPAs should occupy any position which requires:
1. supervising the recording of financial transactions, preparation of financial statements;
2. coordinating with the external auditors for the audit of such financial statements; and
3. other related functions.

This provision shall apply only to persons to be employed after the effectivity of the IRR. Furthermore, it shall not result to deprivation of the
employment of incumbents to the position.

Practice in Education or the Academe

Practice in education or the academe shall constitute in a person in an educational institution which involve teaching of accounting, auditing,
management advisory services, the accounting aspect of finance, business law, taxation, and other technically related subjects. It has been clarified in the
IRR that':
1. business law and taxation subjects may be taught by CPAs and by lawyers (members of the Integrated Bar of the Philippines);
and
2. the position of either the dean or the department chairman on 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.

Practice in the Government

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 CPA is a prerequisite.
A person who passes the CPA Board Licensure Examination need not take the Civil Service Examination given by the Civil Service Commission

Can a CPA practice in more than one sector?

CPAs are allowed to practice in more than one sector, or engage in two or more types of services at the same time, provided that there is no impairment
in the integrity, objectivity, or independence of the CPA. For example, a CPA in public practice may also teach night, classes in a university (thereby
practicing also in the education sector)

Regulation of the Accounting Profession

The accounting profession is regulated by the following:
1. Republic Act No. 9298 or The Philippine Accountancy Act of 2004 shall provide for and govern:
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a. The standardization and regulation of accounting education;
b. The examination for registration of CPAs; and
c. The supervision, control, and regulation of the practice of accountancy in the Philippines.
The Implementing Rules and Regulations to RA No. 9298 provides clarifications and guidelines geared towards the implementation of the Philippine
Accountancy Act of 2004.
2. Financial Reporting Standards and Engagement Standards established by recognized standard-setting bodies
3. Adoption of a Code of Ethics for CPAs in the Philippines
4. Self-regulation through a system of quality control
5. Sanctions/penalties against violators of the laws, rules and regulations affecting the accounting profession.

Organizations that Affect Accountancy

The organizations that affect the accountancy profession include government agencies, standard-setting bodies, and professional organizations.

Government Agencies that Affect Accountancy

Agency Description
Professional Regulation Commission (PRC) This agency administers, implements and enforces the regulatory policies
of the Philippine Government with respect to the regulation and licensing
of the various professions under its jurisdiction.
Professional Regulatory Board of Accountancy (PRBOA) This agency is empowered to administer the implementation of RA 9298
or the Philippine Accountancy Act of 2004.
Commission on Audit (COA) This is the highest and final authority in state auditing. Its jurisdiction and
responsibility is defined by the Constitution.
Securities and Exchange Commission (SEC) This agency regulates the registration and operations of corporations,
partnerships, and other forms of associations in the Philippines.
Bangko Sentral ng Pilipinas (BSP) The primary objective of this agency is to maintain price stability
conducive to a balanced and sustainable economic growth.
Bureau of Internal Revenue (BIR) This agency aims to raise revenues for the government through the
effective and efficient collection of taxes, provide quality service to
taxpayers, and enforce tax laws in an impartial and uniform manner.
Insurance Commission (IC) Its mandate is to regulate and supervise the insurance industry for the
promotion of the national interest.

The Professional Regulatory Board of Accountancy

The Professional Regulatory Board of Accountancy (PRBOA) is the Official government agency empowered to enforce Republic Act No. 9298. It is under
the administrative supervision of the Professional Regulation Commission (PRC).

Composition
The BOA shall be composed of a chairman and six (6) members to be appointed by the President of the Philippines. The four sectors in the practice of
accountancy shall as much as possible be equitably represented in the BOA.

The BOA 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.

Nomination and Appointment Process

1. The Accredited National Professional Organization (APO) of CPAS, shall submit its nominations (five nominees for each position) with complete
documentation to the PRC not later than (60) days 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 PRC 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 PRC with the required documentations within the period provided herein, the PRC in consultation
with the BOA shall submit to the President of the Philippines a list of three (3) nominees for each vacant position.
2. Based on the list submitted by the APO, the PRC shall, for each position, select three recommendees, rank them, and submit the list to the President of
the Philippines.
3. The President of the Philippines shall appoint the members of the BOA from the list of recommendees submitted by the PRC.

Qualifications of Members
A member of the BOA shall, at the time of his/her appointment, possess the following qualifications:
1. Must be a natural-born citizen and a resident of the Philippines;
2. Must be a duly registered CPA 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.
3. Must be of good moral character and must not have been convicted of crimes involving moral turpitude;
4. 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 on where review classes in preparation for the licensure examination are being offered or conducted, nor
shall he/she be a member ar the faculty or administration thereof at the time of his/her appointment to the BOA; and
5. Must not be a Director or Officer of the APO at the time of his appointment.

Terms of Office
The Chairman and members of the BOA 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. No person shall serve in the Board for more
than twelve (12) years.

Powers and Functions

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The following specific powers, functions and responsibilities of theBOA are enumerated in Section 9 of RA NO. 9298. The powers and functions of the
BOA are listed below:
1. To prescribe and adopt the rules and regulations necessary for carrying out the provisions of RA NO. 92987
2. To supervise the registration, licensure and practice of accountancy in the Philippines,
3. To administer oaths in connection with the administration of RA No. 9298;
4. To issue, suspend, revoke, or reinstate the Certificate of Registration for the practice of the accountancy profession;
5. To adopt an official seal of the Board;
6. To prescribe and/or adopt a Code of Ethics for the practice of accountancy:
7. 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;
8. 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;
9.To investigate violations of RA9298 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 BOA upon approval of the PRC 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 APO; Provided further, that the BOA and/or
the PRC may adopt their findings of fact as it may deem fit;
10. The BOA 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 BOA as part of the rules governing the practice of
accountancy:
11. 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 BOA as part of the rules governing the practice of accountancy in the Philippines;
12. To punish for contempt of the BOA, both direct and indirect, in accordance with the pertinent provisions of and penalties prescribed by the Rules of
Court;
13. 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.
The BOA may, upon prior approval by the PRC, engage the services of expert test writers, who shall propose test questions for the CPA Licensure
Examinations. Note that the BOA does not delegate its power and function to determine and prepare test questions for the CPA Licensure Examinations.
The BOA and the PRC shall institute adequate controls over the processing and safekeeping of such test questions to ensure the full integrity of the CPA
Licensure Examinations.
14. 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.
15. 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 BOA shall be subject to review and approval of the PRC. However, the BOA's
decisions, resolutions or orders rendered in administrative cases shall be subject to review only if on appeal. Several councils have been created to assist
the BOA in the performance of its powers and functions.

Councils Formed to Assist the Board of Accountancy

Council Function
Education Technical Council (ETC) The ETC will assist the BOA in continuously upgrading accounting
education in the Philippines.
Quality Review Committee (QRC) The QRC is created to conduct an oversight into the quality of audits of
financial statements through a review of the quality control measures
instituted by individual CPAs, firms or partnerships.
PRC CPD Council This Council will assist the BOA in implementing its Continuing
Professional Development (CPD) program.

Grounds for Removal or Suspension of Members of BOA

The President of the Philippines, upon the recommendation of the PRC, after giving the concerned member an opportunity to defend himself in a proper
administrative investigation to be conducted by the PRC, may suspend or remove any member of the BOA on the following grounds:
1. Neglect of duty or incompetence;
2. Violation, or tolerance of any violation, of RA No. 9298 and its IRB law to or the CPA's Code of Ethics and the technical and professional standards of
practice for certified public accountants;
3. Final judgment of crimes involving moral turpitude; and
4. Manipulation or rigging of the CPA 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 on Audit

The Commission on Audit (COA) is the Supreme Audit Institution in the Republic of the Philippines. Its jurisdiction and responsibility is defined by the
Constitution (Article IX - D):
“There shall be a Commission on Audit composed of a Chairman and two Commissioners, who shall be natural-born citizens of the Philippines and, at
the time of their appointment, at least thirty-five years of age, certified public accountants with not less than ten years of auditing experience, or
members of the Philippine Bar who have been engaged in the practice of law for at least ten years, and must not have been candidates for any elective
position in the elections immediately preceding their appointment.”

“At no time shall all Members of the Commission belong to the same profession."(Section D-1.1, Philippine Constitution)
"The Chairman and the Commissioners shall be appointed by the President with the consent of the Commission on Appointments for a term of seven
years without reappointment."(excerpted from Section D-2.1, Philippine Constitution)

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Principal Duties
The principal duties of the COA are as follows:
1. Examine, audit and settle all accounts pertaining to the revenue or receipts and expenditures or uses of government funds and property.
2. Act as central accounting office of the government (Keep the general accounts pertaining thereof and preserve the vouchers pertaining thereof).
3. Define the scope of its audit and examination
4. Promulgate accounting and auditing rules and regulations including those for the prevention of irregular, unnecessary, excessive extravagant
expenditures or uses of funds and property.
5.Submit to the President, at the time fixed by law, an ani financial report of the government, its subdivisions, agencies instrumentalities, including
GOCCs, and recommend measure necessary to improve their efficiency and effectiveness.
6. Perform such other duties and functions as may be prescribed by law.

The COA is not the internal auditor of the government. It is really the sole external auditor of all government departments and agencies, including
government-owned or controlled corporations (GOCCs).

International Federation of Accountants (IFAC)

The IFAC is the global organization for the accountancy profession. Founded in 1977, its mission is "to serve the public interest, IFAC will continue to
strengthen the worldwide accountancy profession and contribute to the development of strong international economies by establishing and promoting
adherence to high quality professional standards, furthering the international convergence of such standards and speaking out on public interest issues
where the profession's expertise is most relevant."

IFAC is comprised of over 175 members and associates in 130 countries and jurisdictions, representing approximately 2.5 million accountants in public
practice, education, government service, industry, and commerce. No other accountancy body in the world and few other professional organizations have
the broad-based international support that characterizes IFAC.

Professional Organizations
Professional organizations affecting the practice of the accountancy profession include the accredited national professional organization of CPAS (APO)
and organizations that address the needs of CPAs in each of the four sectors. Currently, the Philippine Institute of Certified Public Accountants (PICPA)
is designated by PRC as the APO for accountancy.

Philippine Institute of Certified Public Accountants (PICPA)

The PICPA is the national accredited and integrated professional organization (AIPO) for accountancy in the country. PICPA is the globally-recognized
and integrated national organization of Filipino CPAS in all sectors. Its mission is to enhance the integrity of the accountancy profession, serve the best
interest of its members and other stakeholders, and contribute to the attainment of the country's national objectives.

PICPA aims to maintain a responsive organizational structure, committed leadership, effective professional development programs abreast with state-of-
the-art technology, strict implementation of professional ethics, promotion of high standards of accounting education, and advocacy of and participation
in relevant national issues.

As the AIPO, PICPA is tasked to meet the following requirements:

1. It is established for the benefit and welfare of the CPAs, the advancement of their profession, and the attainment of other professional ends;
2. Its membership is open to all registered CPAs without discrimination;
3. It's membership shall include CPAs in all sectors;
4. 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.
5. 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 provisions of the Corporation Code of the Philippines'.
6. It shall be judicious and prudent in the management of its financial resources.
7. 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.
8. It is duly registered as a non-stock corporation or association by the SEC.
9. It has paid the prescribed accreditation fee. PICPA must renew its accreditation once every three years.

Sectoral Organizations
Professional sectoral organizations, privately organized, provide seminars, programs and workshops that specifically serve the interests of the CPAs that
they aim to represent.

Sectoral Organizations
Sector Organization
Public practice Association of CPAs in Public Practice (ACPAPP)
Commerce and Industry Association of CPAs in Commerce and Industry (ACPACI)
Education/Academe Association of CPAs in Education (ACPAE)
Government Government Association of CPAs (GACPA)

Requirements to Obtain a CPA Certificate

No person shall practice accountancy in this country, or use the title "Certified Public Accountant", or use the abbreviated title "CPA" 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

In general, the requirements to obtain a CPA certificate are to obta a degree of Bachelor of Science in Accountancy and to pass the CPA Board
Examinations prepared by the Professional Regulatory Board of Accountancy (PRBOA).
Degree of Bachelor of Science in Accountancy (BSA)
The academic program leading to a BSA degree usually takes four to five years. One of the requirements before one can take the Philippine CPA Board
Examinations is that the candidate must have completed the BSA degree program.

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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 (i.e., May 2004) of RA NO. 9298 (or until May, 2006) under the rules and regulations promulgated by the PRBOA and approved by the PRC.

In order to assist the BOA in continually upgrading accounting education in the Philippines, the Education Technical Council (ETC) has been created.

The ETC is composed of seven (7) members with a Chairman, all appointed by the PRC. The Chairman should have been or presently is, a senior
accounting practitioner in the academe/education. The six representatives are from the following:
Board of Accountancy 1
APO (PICPA)
Public Practice 1
Academe/Education 2
Commerce and Industry 1
Government 1 5
TOTAL 6

The representation for Academe/Education shall be equally distributed between private and public schools offering Bachelor of Science in Accountancy.

All members of the ETC shall serve for a term of three (3) years, renewable for another term.

The function of the ETC are as follows:

1. Determine a minimum standard curriculum for the study of accountancy to be implemented in all schools offering accountancy as an undergraduate
degree.
2. Establish teaching standards, including the qualifications of members of the faculty of schools and colleges of accountancy.
3. Monitor the progress of the program on the study of accountancy and undertaking measures for the attainment of a high quality of accountancy
education.
4. 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 PRBOA. The PRBOA shall review such report and if
found to be meritorious, it shall forward the same to the PRC which shall make proper representation with the CHED for its appropriate consideration.

CPA Board Examinations

The CPA Board Examinations is a four-day examination covering six subjects (previously seven subject) as per PRBOA Resolution No. 262; Series of
2015; effective May 2016 examinations. The changes and titles of the new subjects in the examinations from seven to six are as follows:

From To
1. Theory of Accounts 1. Financial Accounting and Reporting
2. Practical Accounting Problems I 2. Advanced Financial Accounting and Reporting
3. Practical Accounting Problems II
4. Management Services 3. Management Services
5. Auditing Theory 4. Auditing
6. Auditing Problems
7. Business Law and Taxation 5. Taxation
6. Regulatory Framework for Business Transaction

The PRBOA, as provided in RA 9298, subject to the approval of the PRC, may revise or exclude any of the subjects and their syllabi, and add new ones as
the need arises.

As provided in the PRBOA Resolution No. 262, S.2015, those who are eligible to take the removal examinations pursuant to Sec. 16 of RA 9298, shall be
allowed within a period of two years from the effectivity of the said PRBOA resolution which took effect last March 9, 2016, and implemented during the
May 2016 CPA licensure examinations, to take and pass the particular subject/s in which they have failed under the old scheme (i.e., seven subject).
Provided, that if an examinee fails to pass the removal examinations within a period of two years from the effectivity of the said resolution, he/she shall
be considered as having failed in the entire examination, and henceforth, has to take all the six subjects as prescribed under the said resolution.

Qualifications of Applicants for Examination

The following are the requisites of the Board before one can apply for the examination:
a. Filipino citizen;
b. Of good moral character;
C. 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 Board requires certain documents to be submitted to support the above requirements:
a. Certificate of Live Birth in National Statistics Office 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;
f. Other documents that the Board may require.

Rating in the CPA Board Examinations

To pass the exams, 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 a rating of seventy-five percent (75%) and above in at least a majority of subjects tested, he/she shall
receive a conditional credit for the subjects passed; provided, that such candidate shall take an examination in the remaining subjects within two years
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from the preceding examination. 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 re-examined, he/she shall be considered as failed in the entire examination. The original exam and the removal
exam are counted as one exam only.

Any candidate who fails in two (2) complete CPA Board Examinations shall be disqualified from taking another set examinations unless he/she submits
evidence to the satisfaction of the Board that he/she enrolled in and completed a refresher course composed of at least twenty-four (24) units of subjects
given in the licensure examinations.

Oath of Membership to the Profession

All successful candidates in the examination shall be required to take an oath of profession before any member of the BOA or before any government
official authorized by the PRC or any person authorized by law to administer oaths.

A certificate of registration (CPA certificate) shall be issued to examinees who pass the licensure examination subject to payment of fees prescribed by
the PRC.

The certificate of registration shall bear the signature of the chairperson of the PRC and the chairman and members of the BOA, stamped with the official
seal of the PRC and of the Boa, 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.

A Professional Identification Card (PRC ID) bearing the registration number, date of issuance, expiry date, duly signed by the chairperson of the PRC,
shall likewise be issued to every registrant renewable every three (3) years.

Refusal to Issue CPA Certificate and PRC ID

The Board shall not register and issue a certificate of registration and professional identification card to any successful examinee who:
1. was convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude
2. Is guilty of immoral and dishonourable conduct
3. Has an unsound mind.
4. Misrepresentation in the application for the CPA Examination

Registration shall not be refused and a name shall not be removed from the roster 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.

Foreign Certified Public Accountants

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.

A foreign CPA 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 BOA 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.

If the letter/document and the copy of the law submitted by the applicant is satisfactory to the BOA, the foreign applicant shall be allowed to practice
accountancy in the Philippines by requiring him to file an application and by submitting documents mentioned in Section 34 of the IRR.

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 of the IRR to RA No. 9298.

Special and Temporary Permits

Special/temporary permit may be issued by the BOA subject to the approval of the Commission and payment of the fees the latter has prescribed and
charged thereof to the following persons:
1. A foreign CPA called for consultation or for a specific purpose which, in the judgment of the BOA, 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
CPA qualified for such consultation or specific purposes;
2. A foreign CPA engaged as professor, lecturer or critic infields essential to accountancy education in the Philippines and his/her engagement is
confined to teaching only; and
3. A foreign CPA 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 CPA Seal

All licensed CPAs shall obtain and use a seal of a design prescribed by the BOA, bearing the registrant's name, registration number and title. The CPA
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 PTR 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. Affixing the
CPA's seal and signature is an indication of compliance by the CPA of the requisite accounting and auditing standards and rules.

Continuing Professional Development

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Continuing Professional Development (CPD) refers to the inculcation, assimilation and acquisition of knowledge, skills, proficiency and et and moral
values, after the initial registration of a professional that and enhance the professional's technical skills and competence.

Nature and Rationale

The CPD 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.
Voluntary compliance with the CPD 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.

CPD Programs
CPD programs usually consist of seminars, conventions, graduate studies (masteral and doctoral degrees), authorship, and self-directed learning
packages.

CPD Credit Units

The total required CPD credit units for registered accounting professionals to complete shall be one hundred twenty (120) credit units every three(3)
years or as specified by the Professional Regulatory Board of Accountancy. Any excess credit units earned shall not be carried over to the next three-year
period except credit units earned for doctorate and master's degrees or specialty trainings which shall only be credited once during the compliance
period. Credit units maybe earned by professionals who participate in programs that emanate from the Professional Regulatory Board of Accountancy for
the development of the profession. The credit units assigned to each CPD program, activity or source is presented in Annex C of the IRR to RA No. 9298.

Exemption from CPD Requirements

There are two types of exemptions, from CPD requirements: permanent exemption and temporary exemption.
1. Permanent exemption. A registered professional shall be permanently exempted from CPD requirements upon reaching the age of 65 years old.
2. Temporary exemption. A registered professional who is working or practicing his/her profession or furthering his/her studies abroad shall be
temporarily exempted from compliance with CPD 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.

Sanctions
Unless otherwise exempted, registered CPAs in the practice of accountancy who have not completed the CPD 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 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.

Penalties and Sanctions

RA No. 9298 and the IRR provide rules and regulations related to the practice of the profession in the Philippines. This has been thoroughly discussed in
Chapters Three and Four.
Penalties and sanctions are warranted in cases where the CPA has violated the rules prescribed by law, regulation, or the Code of Ethics.
Examples of penalties that may be meted out against erring CPAs are:
1. Suspension of CPA Certificate
The BOA shall have the power, upon due notice and hearing to suspend the CPA's Certificate of Registration and Professional Identification Card or
suspend him/her from the practice of his/her profession for any of the causes or grounds mentioned under Section 23 of RA No. 9298 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 Code
of Ethics and the technical and professional standards of practice for CPAs.
2. Revocation of CPA Certificate
The BOA has the power to revoke a CPA's Certificate of Registration and Professional Identification Card for the same grounds as mentioned in number
1.
The difference between suspension and revocation is that under suspension, the CPA loses his license temporarily, while under revocation, the loss is not
temporary see
3. Cancellation of Temporary or Special Permit
This applies to Foreign CPAs. Cancellation of the temporary or special permit effectively prevents the Foreign CPA from practicing accountancy in the
Philippines.
4. Payment of fines and/or Imprisonment
Any person who shall violate any of the provisions of RA No. 9298 or the IRR as promulgated by the BOA subject to the approval of the PRC, 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 both.
Note that the BOA does not have the power to hand down prison sentences. Only the court of law can sentence a CPA to imprisonment.

Examples of Violations of the IRR to RA No. 9298

1. Engaging in public accounting practice without first registering with The BOA and the PRC;
2. Continuing to engage in the practice of public accountancy after the expiration of the registration;
3. Continuing to engage in the practice of public accountancy after suspension, revocation, or withdrawal of the registration;
4. 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 the IRR;
5. Giving any misrepresentation to the effect that registration was secured when in truth and in fact, it was not secured;
6. Failure or refusal to undergo quality review
7. Failure to comply with the requirements for registration.

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