Questions and Answers
What is the short title of the act regulating the practice of accountancy in the Philippines?
Which of the following is NOT an objective of the Philippine Accountancy Act of 2004?
What is one power granted to the Board regarding the practice of accountancy?
What does the declaration of policy in the act emphasize regarding accountants?
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Which action is NOT included in the powers of the Board related to managing accountancy practitioners?
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What mechanism does the Philippine Accountancy Act of 2004 promote to ensure the quality of accountants?
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Which responsibility involves the Board conducting oversight into audits of financial statements?
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Which statement accurately reflects the scope of practice as mentioned in the act?
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What is one of the responsibilities of the Board in relation to educational institutions?
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What can the Board issue if someone violates the provisions of the Act?
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Study Notes
Philippine Accountancy Act of 2004
- Officially known as Republic Act No. 9298, enacted on July 28, 2003.
- Repeals Presidential Decree No. 692, the previous Revised Accountancy Law.
Declaration of Policy and Objectives
- Aims to develop competent and ethical professional accountants for national development.
- Establishes standards for accounting education, licensure examinations, and regulatory practices.
- Ensures high-quality, world-class accounting services in the Philippines.
Scope of Practice
- Empowers the Board to regulate and supervise the practice of accountancy.
- Board members receive compensation in line with other regulatory boards.
- Responsibilities include establishing regulations, monitoring standards, and overseeing professional conduct.
Powers and Functions of the Board
- Authority to issue, suspend, and revoke Certificates of Registration.
- Can adopt and enforce a Code of Ethics and compliance with international standards.
- Conducts quality control reviews of financial audits to ensure adherence to established standards.
- Investigates violations of the Act, including issuing subpoenas for hearings.
- Prepares and administers syllabi for licensure examinations in consultation with educational institutions.
Examination, Registration, and Licensure
- Licensure examinations are mandatory for all applicants intending to practice accountancy.
- Applicants must hold a Bachelor’s degree in Accountancy and meet moral and ethical character standards.
- Only registered accountants can use the titles "Certified Public Accountant" or "CPA."
Transition Provisions
- Existing certified public accountants are automatically registered under the new Act with equivalent qualifications.
- Certificates held by current CPAs maintain validity as per the new law's provisions.
Public Accountancy Practice Limitations
- Requires that public accountancy practitioners are registered CPAs with necessary experience.
- Corporations practicing public accountancy must not operate without proper registration from the Securities and Exchange Commission.
Ownership of Working Papers
- All examination-related documents created by CPAs are confidential and property of the accountant unless legally stipulated otherwise.
Professional Organization
- All certified public accountants must join a single national professional organization recognized by the Board.
- Membership provides benefits and privileges, and does not restrict dual membership in other associations.
Accreditation
- The Act establishes guidelines for the accreditation of CPA practitioners to ensure compliance with standards and regulations.
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Description
Test your knowledge on Republic Act No. 9298, which regulates the practice of accountancy in the Philippines. This quiz covers key aspects of the law, its provisions, and its implications on the profession. Perfect for students and professionals in Philippine accountancy.
