Board of Accountacy - Accreditation CPA in Commerce & Industry
Accreditation for the compilation and preparation of financial statements, effective for 2015 year-end financial staetments.
Applicable to entities with at least Php10 million in revenues.
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Board of Accountacy - Accreditation CPA in Commerce & Industry
Accreditation for the compilation and preparation of financial statements, effective for 2015 year-end financial staetments.
Applicable to entities with at least Php10 million in revenues.
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
Republic of the Philippines
Professional Regulation Commission
Manila
PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY
Resolution No. 03.
Series of 2016
are
REQUIRING THE SUBMISSION OF CERTIFICATE BY THE
RESPONSIBLE CERTIFIED PUBLIC ACCOUNTANTS ON THE COMPILATION SERVICES
FOR THE PREPARATION OF FINANCIAL STATEMENTS AND NOTES THERETO.
WHEREAS, Article II Section 9 (9) of Republic Act No 9298 or the Philipine Accountancy Act
of 2034 provides that the Professional Regulatory Board of Accountancy (Board) shall monitor
the conditions affecting the practice of accountancy and adopt such measures, including the
prom .igation of accounting and auditing standards, rules and regulations and best practices as
may 98 deemed proper for the enhancement andi maintananca of high professional, ethical.
‘accounting and auciting standards;
WHEREAS, Section 4 (b) of the aforestated law provides that the practice of accountancy in
ccomnierce 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
requis thatthe holder thereof must be a certified public accountant;
WHEREAS, pursuant to its powers under Section 8 () of the same law, the Board issued and
promulgated the Code of Ethics for Certified Public Accountants (‘Code of Ethics’) that wil
prescribe the ethical standards and norms that professional accountants should strictly conform
to in he practice of their profession
WHEREAS, paragraph 320.1 of Section 320 of the Code of Ethics provides: “[TIhat 2
professional accountant in business shall prepare or present such information fairly, honestly
and ° accordance with relevant professional standards so that the information will be
‘nde’ stood in its content”
WHEREAS, paragraph 320.2 of Section 320 of the Code of Ethics provides: “[T]hat 2
professional accountant in business who has the responsibilty forthe preparation or approval of
the ganeral purpase financial statements of an employing organization shall be satisfied that
those ‘inancial statements are presented in accordance with the applicable financial reporting
stancards!
WHEREAS, paragraph 2005 of Section 200 of the Code of Ethics cites situations of services
rendered to a client that create self-eview threats for a professional accountant in public
practce (‘external aucitor’)
WHEREAS, assisting a client on matters such as preparing financial statements and notes to
finan-jal statements ("notes") may create a sel-eview threat when the financial statements are
subse: fo exprece an opinion whether the financial statements are prepared in all material
respects in accordance with an identified financial reporting framework ("opinion")
WHEAREAS, an external auditor who is involved in the preparation of financial statements and
notes of his cient and who subsequently audits the same may not be able to objectively express.
{an opinion on such financial statements and notes which are of his or her own doing,
4 0
— WHEREAS, to ensure that professional accountant in business shall comply with their
responsibilty of preparing the financial statements and notes of their employing organization
and that the external aucitors will not be violating their Code of Ethics by being involved in the
preperation of the financial statements and notes of their clients where they have an audit
engagement, there is a need for the Board to Issue rules and regulations for this purpose.
NOW THEREFORE, BE IT RESOLVED by the Board, to adopt the following rules and
regulations on the submission of the Certificate of Compilation Services (“Certificate”) on the
preperation of financial statements and notes to the financial statements and the procedures to
implement the same,
SECTION 4. Preparation of the Financial Statements (FS) and Notes to the FS. -
The :reparation and presentation of financial information of an entity in accordance with an
applicable financial reporting framework and reports as required by accounting and auditing
stancards is a practice of accountancy in commerce and industry and therefore shall be
preprrad by a Ceiied Public Accountant CCPA")
‘The (0A preparing these documents shall either be (1) CPA/s employed by the organizations
(CPA employee") or (2) CPAls contracted by the organizations to perform said service
(contrected CPA)
If a contracted CPA shall be preparing the FS and notes to the FS, said CPA shall not be the
same CPA who shall be rendering the attest services for the organization.
‘SECTION 2. Prohibition for CPAs Handling the Attest Services to Prepare or Assist in the
Preparation of FS and Notes to the FS. -
Due <¢ the selfreview threat or risk as mentioned in paragraph 200.5. of Section 200 of the
Code of Ethics. CPAs in public practice are prohibited fram preparing ot assisting in the
preparation of FS and notes to the FS of their clients which engaged them to render attest
services for the same documents,
CPAs: who shall violate this provision shall be subject to stern sanctions by the Board,
SECTION 3. Certificate on the Compilation Services for Preparation of FS and Notes to
the FS
The \artificate on the preparation of FS and notes to the FS shall be prepared and signed by
the CFA who is tasked to assist management in the preparation and presentation of financial
inforrnation of an entity in accordance with an applicable financial reporting framework and
reports as required by accounting and auditing standards. The format prescribed in “ANNEX A”
shall be used for this purpose.
‘The Certificate shall be attached to the audited FS that are to be submitted to the regulatory
offices.
‘The Certificate shall be prepared only for issuers whichiwho have gross sales or revenues
excesing Ten Million Pesos (Php10,000,000 00) for a particular accounting year
However, the rules prescribed in all other sections of this Resolution shall apply to all issuers of
° | wy SECTION 4. Accreditation by the Board. -
‘The CPAS preparing the FS, notes to the FS and the Certificate shall frst be accredited by the
Board! after submitting the necessary application requirements, including compliance with the
Continuing Professional Development (CPD) requirements prescribed in existing rules. and
regulations,
For this purpose, the CPAs shall apply for accreditation not later than February 29, 2016 ané
comely: with the CPD requirements not later than June 30, 2016 after signing an Affidavit of
Undertaking (“Annex B") to that effect,
The ‘equirements prescribed in “Annex C” shall be submitted by the CPAs applying for
accrecitation,
SECTION 5- Penalties. ~
‘The penalties and sanctions for violation of any of the provisions of this Resolution shall be in
‘avooidance with the penalty provided for under Section 36 of Republic Act No. 9298, which
provices that, “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
‘Cominission, shall, upon conviction, be punished by a fine of not less than Fifty Thousand
Pesos (Php50,000.00) or by imprisonment for a period not exceeding two (2) years or both
The same shall be without prejudice to the imposition of other administrative penalties of
warning, admonitian, fine, suspension or cancellation of the professional license as a CPA
as the excumstances may warrant
SECTION 6 - Effectivity Clause. ~
This Resolution shall take effect after fifteen (18) days following its publication in the Official
Gazeite or in any major daily newspaper of general circulation in the Philippines.
Let copies hereof be further furnished the U, P. Law Center, Board, Office of the Board
Secretariat Standards and Inspection Division, Legal and Investigation Division, all PRC
Regiorial Offices, Philippine Institute of Certified Public Accountants (PICPA), and such other
Felevant offices for information and guidance
Done this 19th day of _January
the City of Manila,
. TAN-TORRES
Chairman.
ey
GLORIA T. BAYSA
2 Vice-Chair Ge
ELIS#O A. AURELLADO SAMUEL B. PADILLA
‘Member ‘Member
IEE
CONSORDIO S. QUISAOT GERARD B. SANVICTORES
‘Member Member ATTESTED BY:
Za Fonte
ATTY. LOVELIKA T. BAUTISTA
Officer-in-Charge
Office of the Secretary to the Professional Regulatory Boards
Approved by’
(VACANT)
> Chairman
eo cel
ANGELINE T. CHUA CHIACO
‘Acting Chairperson ‘Commissioner
pees Paar
eee oan ANNEX «
REPUBLIC OF THE PHILIPPINES)
CITY OF MANILA, ys.
AFFIDAVIT OF UNDERTAKING
1 of legal age, filipino, anda resident of
after having been duly sworn in accordance with law hereby
Gepc se and state that
1, have filed an application for accreditation as CPA in commerce and industry
‘of (Name_of Organization) on 20____ pursuant to Board of
Accountaney Resolution No
| undertake to complete my Continuing Professional Development (CPD)
requirements prescribed in the Board of Accountancy Resolution No, 59,
Series of 2017 an ar hefare ine 30, 2016:
| am executing this Affidavit to attest to the truth and veracity of the foregoing
staternents for whatevar legal purpose it may serve:
AFFIANT FURTHER SAYETH NAUGHT.
‘Affiant
SUBSCRIBED AND SWORN to before me this day of 201_,
it attiant exhibiting to me fisher issued on.
at _-
NOTARY PUBLIC
jee
Boc. No._ cas
Page No. \
Boot No.
Series of s ANNEX A.
CERTIFICATE ON THE COMPILATION SERVICES FOR THE PREPARATION OF THE
FINANCIAL STATEMENTS AND NOTES TO THE FINANCIAL STATEMENTS
| hereby cerliy that | am the Cettitied Public Accountant (CPA) who performed the
compiation services related tothe preparation and presentation of nancial information of an
fentis»naccordance with an applicable financial reporting framework and reports 98 required by
‘accounting and aualting standards for (name_of organization) for the period ending
20,
In ciacharging this responsibilty, | hereby declare that (check one (1
am the position) of (name of eraanizationiperson)
1am the (position of (na
perform this service
ne of organizatoniperson) and was contracted to
Furthermore, in my compilation services forthe preparation of the Financial Statements and
Notes to the Financial Statements, | was nat assisted by or did not avail ofthe services of
(oar =.of external auditor) wholwnich isthe extemal auditor who rendered the audit opinion for
‘he s8ié Financial Statements and Notes tothe Financial Statements,
| hereby declare, under penalties ot pequry and violation of Repub: Au Nu. 9286, that my
statements are true and correct
SIGNATURE OVER PRINTED NAME: _
PROFESSIONAL IDENTIFICATION CARD NO.
VALID UNTIL:_
ACCREDITATION NUMBER.
VALID UNTIL__
NOTARY PUBLIC
Doe. No,
Page No ta
Bock No
Senes of 201 Co
ea
AS
|
°
— ANNEX Cc.
REQUIREMENTS FOR BOA ACCREDITATON FOR CPAs in COMMERCE AND INDUSTRY
PRACTICE
1. BACC Form No. 02, duly accomplished in triplicate copies and properly notarized (Please
af metered documentary stamp in the original copy)
2. Sworn statement by the CPA, stating that he /she: (Please notarize and affix metered
‘éccumentary stamp to the original copy)
‘aad undergone adequate and effective training (from organizations duly accredited
oy 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
‘egulations, circulars, memoranda, their respective codes of good govemance and
other related documents that are required in the practice of public accountancy to
2nsure professional, ethical and technical standards;
‘+ of good moral character: and
= has not been found guity by any competent court and/or administrative body of an
offerse involving moral turptude andlor any act constituting unethical practices.
3. Cerificate of CPD units eamed:
4. Curent certticate ot clearance Issued by the proper court andlor National Hureau of
Investigation (NBI) clearance:
[Link] tficate of Employment issued by the current employer,
6. Detailed description of work experience (data should include name of company, position,
dc tes and responsibilities and date of employment);
rtificate of Membership in Good Standing from the current Accredited Integrated
fessional Organization (AIPO) for the accountancy profession,
& Provessional Tax Receipt
CPA Integrity Pledge:
10. °ayment of accreditation fee in the amount of Two Thousand Pesos (Php2,000,00)
(in Cash, Postal Money Order, Manager's Check or Bank Draft payable to the Professional
Fegulation Commission)
[Link] Brown Envelope for the Certificate of Accreditation;
12, One set of metered documentary stamp worth Twenty-One Pesos (Php21.00) to be affixed
to the Cerificate of Registration; and
18. Affidavit of Undertaking (ANNEX B) if CPD Units are insufficient at the time of filing the
pplication.
‘All notarized documents should have metered documentary stamps. Applications with
incomplete documents will not be accepted. Metered documentary stamps are available at the
PRC costumer service. ~—scounters-» and.» PKG = Regional ices,
Note Representatives filing and claiming the Cerificate of Registration/Accreditation on behalf
of the professional must present Special Power of Attomey (SPA) and valid proof of
identification of the professional and the representative. The checklist above is for the first tme
applicant only,
a YW 4
