[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

EXISTING PROPOSED REMARKS

ARTICLE I: TITLE, DECLARATION OF POLICY,
OBJECTIVE AND SCOPE OF PRACTICE
SECTION 1. Short Title. – This Act shall be known as the As is
“Philippine Accountancy Act of 2004”.
SEC. 2. Declaration of Policy. – The State recognizes the As is
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
As is
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 Sec. 4 Scope of Practice- The practice of accountancy shall This is to omit “shall constitute in a person”, since this does
shall include, but not limited to, the following: include, but not limited to, the following: not define a person but rather identify what is the scope of
the practice of accountancy. The suggestion was to just state
(a) Practice of Public Accountancy - shall constitute in a
(a) Practice of Public Accountancy- a practice that services offered by the practice of public accountancy.
person, be it his/her individual capacity, or as a partner or as
involve in the offering to perform or performing
a staff member in an accounting or auditing firm, holding out
attest and/or compilation services, and other In other jurisdiction, they simply identify the services
himself/herself as one skilled in the knowledge, science and
professional services for clients in any or all provided in the public practice.
practice of accounting, and as a qualified person to render
matters relating to accounting concepts and to
professional services as a certified public accountant; or
the recording , presentation, or certification of
offering or rendering, or both, to more than one client on a
financial information or data, including, but not
fee basis or otherwise, services such as the audit or
limited to, accounting, management advisory,
verification of financial transaction and accounting records; or
financial advisory, and tax.
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) PRC-BOA should clarify whether a Chief Finance
Officers (CFOs) would need to be practicing
(b) Practice in Commerce and Industry - shall constitute in a
accountancy since they have oversight over the
person involved in decision making requiring professional
financial statements of an entity. If they will need to
knowledge in the science of accounting, or when such
be covered, we suggest that this requirement apply
employment or position requires that the holder thereof must
to CFOs of Public Interest Entities (PIEs). PIE as
be a certified public accountant.
defined in SRC rule 68.
(c) Practice in Education/Academe - shall constitute in a (c) Clarification whether it has supervision and regulatory
person in an educational institution which involve teaching of power over other (BSMA, BSIA, BSAIS) tracks in
accounting, auditing, management advisory services, Academe.
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
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 SEC. 7. Term of Office. - The Chairman and members of the  Clarify if the term is consistent with other Professional
Board shall hold office for a term of three (3) years. Any Board shall hold office for a term of three (3) years. Any Board in PRC. Lead-time for the appointment of the
vacancy occurring within the term of a member shall be filled vacancy occurring within the term of a member shall be filled new member because it takes some time before the
up for the unexpired portion of the term only. No person who up for the unexpired portion of the term only. No person who vacancy is filled-up.
has served two (2) successive complete terms shall be eligible has served two (2) successive complete terms shall be eligible
for reappointment until the lapse of one (1) year. for reappointment until the lapse of one (1) year.
Appointment to fill up an unexpired term is not to be Appointment to fill up an unexpired term is not to be
considered as a complete term. considered as a complete term. Appointment may be done
six (6) months before the expected vacancy of the
position.
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  Suggests to revisit the BOD qualification
shall exercise the following specific powers, functions and  Suggests only one body to process the common
responsibilities: accreditation requirements of all relevant regulatory
agencies for accountancy professionals in the country
(a) To prescribe and adopt the rules and regulations
as a one-stop shop.
necessary for carrying out the provisions of this Act;
 Suggest the PRC-BOA revisit the composition and
(b) To supervise the registration, licensure and practice of structure of the AASC to align with the global
accountancy in the Philippines; structure and current practice, including formalization
or merger of the PIC with the related standard-setting
(c) To administer oaths in connection with the administration body.
of this Act;  Suggests to have funding of FRSC and AASC from
(d) To issue, suspend, revoke, or reinstate the Certificate of BOA
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 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
(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.  Clarify which practice of accountancy PRC-BOA has
– All applicants for registration for the practice of accountancy supervisory or regulatory power over other tracks
shall be required to undergo a licensure examination to be  If service offered by non-BSA is within the definition
given by the Board in such places and dates as the of the services provided by Public practice of
Commission may designate subject to compliance with the Accountancy, then it should have board exam.
requirements prescribed by the Commission in accordance
with Republic Act No. 8981.
SEC. 14. Qualifications of Applicants for Examinations.  Suggests the ASEAN Mutual Recognition
– Any person applying for examination shall establish the Arrangement (MRA) on Accountancy Services
following requisites to the satisfaction of the Board that (November 13, 2014) and reflect the goals of the
he/she: provisions in the revised Accountancy Law
(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 SEC. 15. Scope of Examination. – The licensure -reflecting the subjects currently offered in the CPA Board
examination for certified public accountants shall cover, but examination for certified public accountants shall cover, but exam
are not limited to, the following subjects: are not limited to, the following subjects:
(a) Theory of Accounts (a) Financial Accounting and Reporting
(b) Business Law and Taxation (b) Advanced Financial Accounting and Reporting
(c) Management Services (c) Management Advisory Services
(d) Auditing Theory (d) Auditing
(e) Auditing Problems (e) Taxation
(f) Practical Accounting Problems I (f) Regulatory Framework for Business Transaction
(g) Practical Accounting Problems II
 -Authorizes the BOA to revise/change the subjects offered so
The Board, subject to the approval of the Commission, may
The Board, subject to the approval of the Commission, may that there is no need to revise the law if new subjects will be
revise or exclude any of the subjects and their syllabi, and
revise or exclude any of the subjects and their syllabi, and introduced/omitted.
add new ones as the need arises.
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.
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 SEC. 20. Issuance of Certificates of Registration and  It is reasonable to have 5 years validity. Passport has
Professional Identification Card. – A certificate of Professional Identification Card. – A certificate of already 10 years validity and Driver’s license has 5
registration shall be issued to examinees who pass the registration shall be issued to examinees who pass the years validity
licensure examination subject to payment of fees prescribed licensure examination subject to payment of fees prescribed
by the Commission. The Certificate of Registration shall bear by the Commission. The Certificate of Registration shall bear
the signature of the chairperson of the Commission and the the signature of the chairperson of the Commission and the
chairman and members of the Board, stamped with the chairman and members of the Board, stamped with the
official seal of the Commission and of the Board, indicating official seal of the Commission and of the Board, indicating
that the person named therein is entitled to the practice of that the person named therein is entitled to the practice of
the profession with all the privileges appurtenant thereto. The the profession with all the privileges appurtenant thereto. The
said certificate shall remain in full force and effect until said certificate shall remain in full force and effect until
withdrawn, suspended or revoked in accordance with this Act. withdrawn, suspended or revoked in accordance with this Act.

A Professional Identification Card bearing the registration A Professional Identification Card bearing the registration
number, date of issuance, expiry date, duly signed by the number, date of issuance, expiry date, duly signed by the
chairperson of the Commission, shall likewise be issued to chairperson of the Commission, shall likewise be issued to
every registrant renewable every three (3) years. every registrant renewable every five (5) 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.
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  Clarify the definition of Practice of Public Accountancy
Accountancy. – Single practitioners and partnerships for the in Section 4 and must align to Section 28 regarding
practice of public accountancy shall be registered certified who has to be CPA in a partnership (partners, in-
public accountants in the Philippines: Provided, That from the charge, staff) and the 3 years meaningful experience.
effectivity of this Act, a certificate of accreditation shall be  Explore the possibility to create a corporation in the
issued to certified public accountants in public practice only practice of public accountancy. (other provisions must
upon showing, in accordance with rules and regulations align to this)
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.
SEC. 29. Ownership of Working Papers - All working SEC. 29. Ownership of Working Papers - All working  Tribunal is omitted as it is the same to court
papers, schedules and memoranda made by a certified public papers, schedules and memoranda made by a certified public  To rescind he PD 1718 restricting the use of document
accountant and his staff in the course of an examination, accountant and his staff in the course of an examination, and information from Philippines any foreign entity.
including those prepared and submitted by the client, incident including those prepared and submitted by the client, incident
to or in the course of an examination, by such certified public to or in the course of an examination, by such certified public
accountant, except reports submitted by a certified public accountant, except reports submitted by a certified public
accountant to a client shall be treated confidential and accountant to a client shall be treated confidential and
privileged and remain the property of such certified public privileged and remain the property of such certified public
accountant in the absence of a written agreement between accountant in the absence of a written agreement between
the certified public accountant and the client, to the contrary, the certified public accountant and the client, to the contrary,
unless such documents are required to be produced through unless such documents are required to be produced through
subpoena issued by any court, tribunal, or government subpoena issued by any court, or government regulatory or
regulatory or administrative body. administrative body. These working papers may be used
by or sent to foreign entity to support the audit work
done in order to provide sufficiency and
appropriateness of audit evidence to support the audit
opinion.
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  Clarify who is “staff member” that BOA accreditation
– Certified public accountants, firms and partnerships of partnerships of certified public accountants, standards will apply.
certified public accountants, engaged in the practice of public engaged in the practice of accountancy,  Clarify the competency framework on progression
accountancy, including partners and staff members thereof, including partners, shall register with the from entry level to mid-level to upper level
shall register with the Commission and the Board, such Commission and the Board, such registration to considering the experience gained and educational
registration to be renewed every three (3) years: Provided, be renewed every five (5) years: Provided, that level attained.
That subject to the approval of the Commission, the Board subject to the approval of the Commission, the  Need to revisit the quality review requirements that
shall promulgate rules and regulations for the implementation Board shall promulgate rules and regulations will be included in the law from the IRR. Also, how will
of registration requirements including the fees and penalties for the implementation of registration the implementation take place?
for violation thereof. requirements including the fees and penalties
for violation thereof

SEC. 32. Continuing Professional Education (CPE) IRR: The total CPE credit units for registered accounting  Align the current CPE credit units. In IRR, it’ s still 60
Program. – All certified public accountants shall abide by the professionals shall be one hundred twenty (120) credit units in 3 years.
requirements, rules and regulations on continuing units for three (3) years.
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.

IRR: 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
SEC. 33. Seal and Use of Seal. - All licensed certified public  Remove Sec 33 regarding the use of Seal because
accountants shall obtain and use a seal of a design prescribed the current practice is now using electronic
by the Board bearing the registrant’s name, registration documents.
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 SEC. 34. Foreign Reciprocity. – Subjects or citizens of  2nd sentence is omitted because it’s not necessary
foreign countries may be allowed to practice Accountancy in foreign countries may be allowed to practice Accountancy in since we don’t allow foreigners to practice unless
the Philippines in accordance with the provisions of existing the Philippines in accordance with the provisions of existing there’s a treaty or MRA entered into by the
laws, international treaty obligations including mutual laws, international treaty obligations including mutual Philippines.
recognition agreements entered into by the Philippine recognition agreements entered into by the Philippine  This should be aligned to the ASEAN MRA
government with other countries. A person who is not a government with other countries.
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. -  Align to MRA
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 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 As is
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.
SEC. 42. Separability Clause. - If any clause, provision, As is
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 As is
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 As is
(15) days following its publication in the Official Gazette or in
any major daily newspaper of general circulation.
Added:
Definition of professional misconduct:  Creation of the Disciplinary Provision
(1) Additional provision of guilty of professional misconduct:
a) allowing any person to practice in his name as an
accountant
to any person that is neither a holder of a practicing certificate
nor in partnership with him or employed by him;
b) enters in the course of public practice as CPA who does
not
hold a practicing certificate, or secures any professional
business with a person not open to an accountant;
c) pays or allows or agrees to pay, directly or indirectly, to any
person (other than a person who holds a practicing certificate,
is a retired partner or the legal representative of such a
partner), any share, commission or brokerage out of the fees
for, or profits of his professional services;
d) accepts or agrees to accept any part of the fees of, or
profits
for, the professional work of an advocate, auctioneer, broker
or other agent who is not the holder of a practicing certificate;
e) solicits clients or professional work or advertises
professional
attainments or services by use of means which contravene
the guidelines published by the BOA/PRC;
f) discloses information acquired in the course of professional
engagement to any person other than a client, without the
consent of the client, or otherwise than required by law in
respect of information disclosed to the BOA/PRC in fulfillment
of the accreditation requirements with these institute;
g) certifies or submits in his name or in the name of his firm a
report of an examination of financial statements, where the
examination of such statements and the related records have
not been made by him or a partner or an employee in his firm;
h) fails to observe and apply professional, technical, ethical or
other standards prescribed by the BOA/ PRC as guidelines for
practice by members of the Institute;
i) expresses his opinion on financial statements of any
business
or any enterprise in which he, his immediate family, his firm or
any partner in his firm, has an interest, unless he discloses
that interest when expressing the opinion;
j) charges, in respect of any professional employment other
than insolvency or receivership, fees which are based on a
percentage of profits or which are contingent on results;
k) fails to disclose in a financial statement or otherwise a
material fact known to him the disclosure of which is
necessary to ensure that the financial statement is not
misleading;
l) performing services prohibited for an audit clients;
m) fails to report a material misstatement known to him to
appear
in a financial statement with which he is concerned in a
professional capacity;
n) is guilty of gross negligence in the conduct of his
professional
duties;
o) expresses an opinion on any matter with which he is
concerned in a professional capacity without obtaining
sufficient information on which to base the opinion;
p) fails to keep the funds of a client in a separate banking
account or to use any such funds for purposes for which they
are intended;
q) includes in any statement, return or form to be submitted to
the BOA/PRC any particular knowing it to be false;
r) is found to engage in any other fraudulent acts, or
s) fails to do any other act which may be prescribed
(2) Creation of Disciplinary Committee under the BOA/ PRC
a) Where there is reason to believe that a CPA may have
been
guilty of professional misconduct, he/ she shall refer the
matter to the Disciplinary Commission which, shall inquire into
the matter.
b) Upon completion of the inquiry into the alleged professional
misconduct of a CPA, the Disciplinary Committee shall submit
to the BOA/ PRC a report which shall include one or more of
the following recommendations:
i. that no further action be taken against the member;
ii. that the member undertakes training at his own cost, of
such nature and duration and at such institutions as may
be determined;
iii. that the member discharges his professional obligations
under any contractual arrangement subject of the alleged
misconduct;
iv. that the member be reprimanded;
v. that the member be reprimanded with publication in any
other suitable media which may include the newspapers,
electronic media and the internet;
vi. that the member pays such costs to the BOA/PRC, not
exceeding Php _________, as may be determined;
vii. that any practicing certificate held by the member be
suspended, or
viii. that the registration of the member be cancelled
and that he be not registered for such period (including
life) as may be specified.
Where the Disciplinary Committee makes a recommendation
report, the
BOA/PRC shall inform the member concern of the action to be
taken
against him and effect the recommendation of the Disciplinary
Committee.
Likewise, a member aggrieved by a determination of the
Disciplinary
Committee may make an appeal to the BOA/PRC within sixty
days of the
communication to him of such determination, providing the
grounds upon
which the appeal is filed.
The BOA/PRC may upon receipt of an appeal direct the
Disciplinary
Committee to re-open the inquiry and shall in such direction
specify the
aspects of the matter it requires the Disciplinary Committee to
reconsider.
The Disciplinary Committee shall comply with the direction of
the
BOA/PRC shall, after concluding the inquiry, submit a report to
the
Council accordingly.
(6) Any recommendation of the Disciplinary Committee under
this section
shall not be effected by the initial recommendation for appeals
and the
subsequent conclusion of the appeal proceedings thereof.
3) Rights to Appeal
a) A person aggrieved by a determination of the Disciplinary
Committee under (2)(b)may appeal to the Court against such
determination within sixty days of being notified of the final
determination.
b) On an appeal the Court may affirm, with or without
variation, of
the period for which the person concerned is not to be
registered,
or the period for which his practicing certificate is suspended,
confirm the determination of the Disciplinary Committee or
allow
the appeal.
c) The recommendation of the Disciplinary Committee shall
have
effect notwithstanding that an appeal is made, but in the event
that the Court allows the appeal in relation to the cancellation
of
the registration of the CPA and the suspension of the CPA
license
and accreditation.
(4) Final Ruling
The Chief Justice of the Supreme Court may make rules
governing
appeals and providing for the fees to be paid, the scale of
costs of any
appeal and the procedure to be followed.
(5) Examinations Offences
Any person who—
a) gains access to examinations materials and knowingly
reveals
the contents, whether orally, in writing or through any other
form,
to an unauthorized party, whether a candidate or not;
b) willfully and maliciously damages examinations materials;
c) while not registered to take a particular examination, with
intent
to impersonate presents or attempts to present himself to take
the
part of an enrolled candidate;
d) presents a forged certificate to a prospective employer or to
an
institution of learning with intent to gain employment or
admission;
or
e) introduces unauthorized materials into the examinations
room,
whether in writing or in any other form, whether a candidate or
not
Commits offense and liable on conviction to imprisonment for
a term not
exceeding three years, or to a fine not exceeding Php_____, or
to both.
(6) Conviction to Imprisonment:
a) a person who practices as an accountant who is not a
holder of
valid practicing certificates/ accreditations and a license to
practice;
b) a person who, in an application with the accreditation to
practice
as external auditors, willfully makes a false or misleading
statement; and
c) a person who assumes or uses the title or designatory letter
as an
CPA who has no valid license

1. Creation of Public Practice Review Program Committee Strengthening Accountancy Law for Public
- a body to ascertain whether a public accountant has Practice
complied
with the prescribed Philippine Standards on Quality Control
(PSQC), prescribed standards, methods, procedures and
other requirements when providing public accountancy
services.
- Practice review covers study, appraisal or review of one or
more aspects of the professional work of a public accountant
that is carried out under Public Practice Review Program.
- The review may be appointed member of the Public
Accountants Oversight Committee (PAOC) or engaged by the
Accountant/ Firm in Public Practice under authority by the
PAOC.
- Fees of the reviewer is to be billed to the Accountant/ Firm in
Public Practice.
- Review is required every five years based on the result of the
review.
- The Reviewer shall submit a report of findings and
recommendations and consequences of failure to pass, if any.
- Consequences of failure to pass public practice review
program
o First offense:
§ require the public accountant to undergo and
satisfactorily complete the remedial program
as may be specified by the PAOC,
§ require the public accountant to take other
steps as may be specified by the PAOC to
improve the practice of the public accountant;
and
§ require the public accountant to monitoring by
its appointed reviewer within two years to
address and improve compliance findings in
the report.
o Subsequent offense:
§ Conditional or restriction to practice; or
§ Suspend the registration/ accreditation until
the reviewer submits a satisfactory report to
the PAOC; or
§ Cancellation of the accreditation as external
auditors.
Creation of the Standard Fees of Accountant in Professional
Practice from audit services rendered to client
Creation of Disciplinary Committee, Public Accountants
Oversight Committee and their subcommittees.