RA 9298: Accountancy Act of 2004

• RA 9298, also known as the Accountancy Act of 2004, contains the rules for accountancy.
• It comprises 5 articles, 44 sections, and 3 annexes.
• It was enacted on May 13, 2004.

Rule I: Title, Declaration of Policy, and Scope of Practice

• The state recognizes the importance of accountants in nation building and development.
• The state aims to develop competent, virtuous, productive, and well-rounded professional accountants with excellent standards of practice.
• This is achieved through inviolable and credible licensure examinations and regulatory measures.

Objectives

• Standardizing and regulating accounting education is an objective.
• The examination for registration of CPAs is an objective.
• Supervising, controlling, and regulating the practice of accountancy in the Philippines is an objective.

Scope of Practice

• Practice in Public Accountancy
• Practice in Commerce and Industry
• Practice in Education/Academe
• Practice in the Government

Practice in Public Accounting

• Work is done in an individual capacity or as part of a partnership or accounting firm.
• Involves holding oneself as skilled in accounting knowledge and offering professional services as a CPA to more than one client, for a fee.

Practice in Private Accounting

• Being involved in decision-making requiring professional accounting knowledge, including finance or taxation.
• Representing an employer before government agencies on tax and accounting-related matters.
• Holding a position that requires being a CPA.

Practice in Education/Academe

• Teaching accounting, auditing, management advisory services, finance, business law, taxation, and related subjects in an educational institution.

Practice in Government

• Holding a position in a government entity or corporation that requires professional accounting knowledge in decision making.

Rule II: Professional Regulatory Board of Accountancy (PRBOA)

• The PRBOA, or the "Board", is the governing body.

The PRBOA and its Composition

• It consists of a chairman and six members appointed by the President.
• The President selects from a list of three recommendees for each position, ranked by the PRC.
• The list of five nominees for each position comes from the Accredited Professional Organization (APO).
• The Board elects a vice-chairman from its members for a one-year term.
• The four sectors (Public Practice, Commerce, Academe, Government) in the practice of accountancy are equitably represented in the Board.

Qualifications of Members of the PRBOA

• Must be a natural-born citizen and resident of the Philippines.
• Must be a duly registered CPA with at least 10 years of work experience in any area of accountancy.
• Must be of good moral character and not convicted of moral turpitude.
• Must not have any financial interest in any institution conferring an academic degree or CPA review school.

Term of Office

• The term is three years for the chairman and members.
• Any vacancy is filled for the unexpired portion of the term.
• No person can be reappointed after serving two successive complete terms until one year passes.
• No one can serve on the Board for more than 12 years.

Powers and Functions of the Board

• Prescribing and adopting rules for the Accountancy Act of 2004.
• Supervising the registration, licensure, and practice of accountancy in the Philippines.
• Administering oaths related to the Act.
• Issuing, suspending, revoking, or reinstating Certificates of Registration.
• Adopting an official seal of the Board.
• Monitoring conditions affecting accountancy practice and adopting measures, including setting accounting and auditing standards.
• Conducting oversight into the quality of financial statement audits.
• Investigating potential violations of RA 9298.
• Issuing cease or desist orders for violations of RA No. 9298.
• Punishing for contempt of the Board.
• Preparing and amending syllabi for examinations.
• Ensuring schools comply with CHED policies for accountancy courses.
• Exercising necessary other powers.

Accounting and Auditing Standard Council

• Financial Reporting Standards Council (FRSC)
• Auditing and Assurance Standards Council (AASC)

Education Technical Council

• Assists the PRBOA in its functions.
• Upgrades accountancy education in the Philippines to make Filipino CPAs globally competitive.
• Determining minimum curriculum standards for accountancy undergraduate degrees.
• Establishing teaching standards, including faculty qualifications.
• Monitoring accountancy programs and undertaking measures for high-quality education.
• Evaluating educational institutions offering accountancy education.

Administrative Details and Reporting

• The Board operates under the Commission's administrative supervision.
• The Commission manages the Board's records, including exams and cases and provides secretariat and support services.
• The Board submits an annual report to the President through the Commission.

Grounds for Suspension or Removal of the Members of the Board

• Neglect of duty or incompetence.
• Violation or tolerance of violations of the Act, its IRR, or the CPA's Code of Ethics.
• Final judgment of crimes involving moral turpitude.
• Manipulating CPA licensure examination results or disclosing confidential information.

Rule III: Examination, Registration, and Licensure

Qualifications of Applicants for Examination

• Must be a Filipino citizen.
• Must be of good moral character.
• Must hold a Bachelor of Science in Accountancy degree from a recognized institution.
• Must not have been convicted of any criminal offense involving moral turpitude.

Scope of Examination

• Financial Accounting and Reporting
• Advanced Financial Accounting and Reporting
• Management Advisory Services
• Auditing
• Taxation
• Regulatory Framework for Business Transactions

Rating in the Licensure Examination

• Passing requires a weighted general average of 75%, with no grade below 65% in any subject.
• Conditional status is achieved with a 75% average in the majority of subjects.
• Failure occurs with an average below 75%.

Report of Ratings

• The Board submits the ratings to the Commission within ten calendar days after the examination.

Failing Candidated

• Must Take a refresher course
• Take an Oath
• Upon passing will recieve Certificate of Registration (COR) and Professional Identification Card (PIC)
• Will be added to the Roster of Certified Public Accountants
• Indication of COR, PIC and Professional Tax Receipt

Refusal to Issue COR and PIC

• The Board will not issue if an examinee is convicted of a crime or is of unsound mind.

Suspension and Revocation of COR and PIC

• Revocation and Suspension are possible due to convictions unethical conduct, fraud or violation of the CPA code of ethics

Rule IV: The Practice of Accountancy

Reinstatement, Reissuance, and Replacement of Revoked or Lost Certificates

• The Board may reinstate a revoked CoR after two years if convinced of remorse and rehabilitation and may waive another examination.
• A new CoR may be issued to replace lost, destroyed, or mutilated certificates, subject to rules and fees.

Prohibition in the Practice of Accountancy

• No one can practice accountancy or use the title "Certified Public Accountant" without a CoR and PIC from the Board or a temporary/special permit.

Limitation of the Practice of Public Accountancy

• Single practitioners and partners in public accounting must be registered CPAs in the Philippines.
• A Certificate of Accreditation is issued to CPAs in public practice after three years of experience.
• The SEC cannot register any corporation organized for public accountancy practice.

Definition of Experience

Commerce and Industry

• Significant involvement in general accounting, budgeting, tax administration, internal auditing, liaison with external auditors.

Academe/Education

• Teaching for at least three trimesters or two semesters accounting-related subjects.

Government

• Significant involvement in general accounting, budgeting, tax administration, internal auditing, liaison with COA or related function.

Public Practice

• At least one year as audit assistant and two years as auditor in charge of audit engagement covering full audit functions of significant clients.

Ownership of Working Papers

• Working papers are confidential and remain the CPA’s property, unless agreed upon otherwise or required by subpoena.

Accredited Professional Organization (APO)

• Known as the PICPA.
• Registered with the SEC as a non-profit corporation, recognized by the Board and Commission.
• Recognized by the Commission as the APO (Acc. No. 15).
• Certificate of Accreditation (CoA) is updated once every three years.
• It has 15 national directors from the Philippines.

Accreditation to Practice Public Accountancy

• Individual CPAs, firms, and partnerships engaged in public accounting must register with the Commission and the Board.
• Registration is valid for three years, renewable every three years by September 30 of the expiry year.

Quality Review Committee

• It conducts quality reviews on applicants for practicing Public Accountancy
• It is appointed by the commission
• Terms can be renewed every three years

Continuing Professional Development (CPD) Program

• CPE involves gaining knowledge, skills, and ethical values, enhancing professional competence.
• 120 credit units are required every three years for registered accounting professionals in public practice.

Rule V: Penal Provisions

• Violators of RA No. 9298 or its IRR face a fine of at least P50,000.00 and/or imprisonment up to two years.