ACCOUNTING

PROFESSION
OBJECTIVES
1. Explain the objective and scope of the accounting profession
2. Discuss the functions of the Board of Accountancy
3. Discuss the examination, registration and licensure of aspiring candidates
4. Explain the practice of accountancy in the Philippines
 3

ACCOUNTING PROFESSION
Republic Act No. 9298 or known as the
“Philippine Accountancy Act of 2004”

The State recognizes the role of accountants in

nation building and development. It shall
develop competent, productive and well-
rounded professional accountants whose
standards of practice and service shall be
excellent, world class and globally competitive
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ACCOUNTING PROFESSION
Objectives of the Act:
1. Standardization and regulation of
accounting education
2. Examination for registration of CPAs
3. Supervision, control, and regulation of the
practice of accountancy in the Philippines
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ACCOUNTING PROFESSION
Scope of the practice of accountancy includes:

1. Public practice
2. Commerce and industry
3. Academe
4. Government
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ACCOUNTING PROFESSION
PUBLIC PRACTICE

An individual or firm renders professional

services as a CPA to more than one client on
a fee basis

Services include audit, consultancy and

preparation of tax returns
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ACCOUNTING PROFESSION
COMMERCE AND INDUSTRY

A person involved in the decision making

requiring professional knowledge in the science
of accounting, or when such employment or
position requires the holder to be a CPA

CPA in this industry may be accounting

supervisors, head of the finance department or
controller
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ACCOUNTING PROFESSION
ACADEME

A person in an educational institution which

involves teaching of accounting, auditing,
management services, finance, business law
and taxation

Provided that members of the Integrated Bar of

the Philippines may be allowed to teach RFBT
and taxation subjects
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ACCOUNTING PROFESSION
GOVERNMENT

A person who holds or is appointed to a,

position in an accounting professional group in
the government or government owned and
controlled corporations

CPAs may become state auditors under the

COA, tax examiners under the BIR and city
accountants in the LGU
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ACCOUNTING PROFESSION
EXAMINATION OF APPLICANTS

All applicants for registration for the practice of

accountancy shall be required to undergo a
licensure examination to be given by the BOA
in such places and dates designated by the
PRC
ACCOUNTING PROFESSION 11

EXAMINATION OF APPLICANTS
ACCOUNTING PROFESSION 12

EXAMINATION OF APPLICANTS

Any person applying for examination shall

establish the following requisites:
1. Filipino citizen
2. Good moral character
3. Holder of a Bachelor of Science in
Accountancy by any educational institution
recognized by CHED
4. Not been convicted of any criminal offense
involving moral turpitude
ACCOUNTING PROFESSION 13

EXAMINATION OF APPLICANTS
Documentary requirements for applicants
1. Philippine Statistics Authority (PSA) Birth
Certificate
2. PSA Marriage Contract (for married female
applicants)
3. Transcript of Records with scanned picture
and Remarks “ For Board Examination
Purposes”
4. Valid National Bureau of Investigation (NBI)
clearance
ACCOUNTING PROFESSION 14

SCOPE OF EXAMINATION
The LECPA shall cover the following subjects:
1. Financial Accounting and Reporting
2. Advanced Financial Accounting and
Reporting
3. Management Services
4. Auditing
5. Taxation
6. Regulatory Framework for Business
Transactions
ACCOUNTING PROFESSION 15

SCOPE OF EXAMINATION
For October 2028, the LECPA shall cover the
following subjects:
1. Financial Accounting and Reporting
2. Auditing and Attestation
3. Regulatory Framework for Business
Transactions
4. Business Analysis and Reporting
5. Tax Compliance and Planning
6. Information System and Control (New
subject)
ACCOUNTING PROFESSION 16

RATING IN THE LICENSURE EXAMINATION

To pass the LECPA, a candidate must obtain a general

average of 75% with no grades lower than 65% at any given
subject

If the candidate obtains a rating of 75% or above in at least

majority of subjects, he/she shall receive conditional credit.
Provided, the candidate shall take an examination in the
remaining subject within 2 years from the preceding
examination

If the candidate fails to obtain at least a general average of

75% in each of the subjects re-examined, he shall be
considered as failed in the entire examination
ACCOUNTING PROFESSION 17

RATING IN THE LICENSURE EXAMINATION

Chubby Misa has the following scores in the recent LECPA

SUBJECTS RATING
FAR 80 The candidate has an average of
75% and no subject is below 65%
AFAR 68
AUD 75
MS 70
RFBT 79
TAX 78
Average 75

PASSED
ACCOUNTING PROFESSION 18

RATING IN THE LICENSURE EXAMINATION

Gesbelle Sabellona has the following scores in the recent

LECPA
SUBJECTS RATING The candidate did not
FAR 80 obtain a 75% average and
AFAR 68 only 3 out of the 6 subject
are above 75%
AUD 74
MS 70
RFBT 79
TAX 78
Average 74.83

FAILED
ACCOUNTING PROFESSION 19

RATING IN THE LICENSURE EXAMINATION

Neil Eres has the following scores in the recent LECPA

SUBJECTS RATING
FAR 87 The candidate did not obtain a
AFAR 69 75% average however 4 out of
AUD 75 the 6 subjects are above 75%.
The candidate must take the
MS 65 conditional examination on
RFBT 76 AFAR and MS
TAX 76
Average 74.67

CONDITIONAL
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ACCOUNTING PROFESSION

REFRESHER COURSES

Any candidate who fails in 2 complete LECPA 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 24 units of subjects
given in the licensure examination
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ACCOUNTING PROFESSION

CERTIFICATE OF REGISTRATION

A certificate of registration shall be issued to examinees who

pass the licensure examination subject to payment of fees
prescribed by the PRC.

PROFESSIONAL INDENTIFICATION CARD

The PIC shall bear the registration number, date of issuance,

expiry date, duly signed by the chairperson of the PRC shall
be issued to every registrant renewable every 3 years
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ACCOUNTING PROFESSION
ACCREDITED PROFESSIONAL ORGANIZATION

ALL registered CPAs shall be united and integrated through

their membership in a one and only registered and accredited
national professional organization of registered and licensed
CPAs

The accredited professional organization is called the

Philippine Institute of Certified Public Accountants (PICPA)

Members of the PICPA must pay an annual due of P1,000

every year to become a member in good standing
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ACCOUNTING PROFESSION
CONTINUING PROFESSIONAL DEVELOPMENT

According to PRC Resolution No. 2019-1146, The CPD is hereby

made as a mandatory requirement in the renewal of the PICs of
all registered and licensed professional under the regulation of the
PRC

During the transition period, the following shall be observed:

1. Professionals working overseas shall not be covered by the CPD
requirement
2. Newly licensed professionals shall not be covered by the CPD
requirement for the first renewal cycle after obtaining their license
3. The various CPD councils shall reduce the required CPF credit
units to a minimum, which shall not be more than 15 units as
provided under law
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ACCOUNTING PROFESSION
CONTINUING PROFESSIONAL DEVELOPMENT

Under BOA resolution 2017-254, CPAs seeking

BoA accreditation still need to comply with the 120
CPD units

CPD units fall in three major areas:

1. Competence Area A – Technical Competence
2. Competence Area B – Professional Skills
3. Competence Area C – Professional Values,
Ethics and Attitudes
 ACCOUNTING PROFESSION 25

CONTINUING
PROFESSIONAL
DEVELOPMENT

BIR
ACCREDITATION
 ACCOUNTING PROFESSION 26

CONTINUING
PROFESSIONAL
DEVELOPMENT

SEC
ACCREDITATION
 ACCOUNTING PROFESSION 27

CONTINUING
PROFESSIONAL
DEVELOPMENT

SEC
ACCREDITATION
 ACCOUNTING PROFESSION 28

CONTINUING
PROFESSIONAL
DEVELOPMENT

SEC
ACCREDITATION
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ACCOUNTING PROFESSION
CONTINUING PROFESSIONAL DEVELOPMENT

Initial Accreditation of Accounting Teachers:

• 3 years meaningful experience
• 120 CPD credits earned for the last 3 years

Renewal Accreditation of Accounting Teachers:

• 120 CPD credits earned for the last 3 years
• Compliance with 12 units of Education subjects
• Completion of Master’s degree
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BOARD OF ACCOUNTANCY
The BOA is composed of:
1. A chairman
2. Six (6) members appointed by the President of
the Philippines

The board shall elect a vice-chairman who in the

case of vacancy shall assume the duties and
responsibilities of a chairman
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BOARD OF ACCOUNTANCY
A member of the board shall possess the following
qualifications:
1. Natural born citizen and resident of the
Philippines
2. Must be a CPA with at least ten (10) years of
work experience in any scope of accountancy
3. Must have good moral character
4. Not convicted of a crime involving moral turpitude
5. Must not have any pecuniary interest, directly or
indirectly, in any school, college or university
conferring an academic degree necessary for the
admission to the practice of accountancy
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BOARD OF ACCOUNTANCY
The Chairman and Members of the Board
shall hold office for a term of three (3) years.
Any vacancy occurring within the term of a
member shall be filled up for the unexpired
portion of the term only. No person who has
served two (2) successive complete terms
shall be eligible for reappointment until the
lapse of one (1) year. Appointment to fill up
an expired term is not to be considered as a
complete term.
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BOARD OF ACCOUNTANCY
The BOA shall exercise the following specific
powers:
1. Prescribe and adopt the rules and regulations
necessary for carrying out the provisions of the
Act
2. Supervise the registration, licensure and practice
of accountancy
3. Administer oaths
4. Issue, suspend, revoke and reinstate the
Certificate of Registration
5. Prescribe and adopt a Code of Ethics
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BOARD OF ACCOUNTANCY
The BOA shall exercise the following specific
powers:
6. Adopt measures such as promulgation of
accounting and auditing standards and best
practices

7. Conduct oversight into the quality of audits of

financial statements

8. Prepare, adopt, issue or amend the syllabi of the

subjects for examination
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BOARD OF ACCOUNTANCY
Grounds for removal of members of the BOA:
1. Neglect of duty or incompetence
2. Violation of the Act or its IRR
3. Final judgment of crimes involving moral
turpitude
4. Manipulation of the CPA licensure examination
results
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BOARD OF ACCOUNTANCY
The Auditing and Assurance Standards Council
(AASC) is tasked to assist the BOA in promulgating
auditing standards in the Philippines
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BOARD OF ACCOUNTANCY
The Financial Reporting Standards Council (FRSC)
is tasked to assist the BOA in promulgating
accounting standards in the Philippines