Module01_Professional-Practice-of-Accountancy.pptx

PROFESSIONAL PRACTICE OF ACCOUNTANCY Pamantasan ng Lungsod ng Valenzuela College of Business and Accountancy Department of Accountancy PREPARED BY: Ryan Christian M. Soriano  HOW CAN YOU DIFFERENTIATE PROFESSIONAL AND NON-PROFESSIONAL JOB? PROFESSIONAL VS NON PROFES...

PROFESSIONAL PRACTICE OF ACCOUNTANCY Pamantasan ng Lungsod ng Valenzuela College of Business and Accountancy Department of Accountancy PREPARED BY: Ryan Christian M. Soriano  HOW CAN YOU DIFFERENTIATE PROFESSIONAL AND NON-PROFESSIONAL JOB? PROFESSIONAL VS NON PROFESSIONAL JOB Professional Job Non Professional Job  that requires a specific amount of  Can start with little training or advanced training and education. education.  Often require some level of post-  Often, these are entry-level secondary education. positions that offer on-the-job training and allow professionals to develop skills to advance their career. PROFESSIONAL VS NON PROFESSIONAL JOB Professional Job Non Professional Job  Doctor  Cashier  Teacher  Salesperson  Lawyer  Medical assistant  Artist  Electrician  Author  Customer service representative  Accountant  Scientist COMMON DIFFERENCE  Experience and education level  Training  Salary  Responsibilities outside of work ATTRIBUTES OF A PROFESSION  Systematic theory – accounting theory and auditing standards  Professional authority – determination of what is good or bad for the client and client accedes to this professional judgement  Community sanction – controlled admission, regulatory requirement shall be achieved. Controlled by PRC through BOA.  Regulations code – prevents abuse of monopoly and to discipline its members through Code of ethics and accountancy law.  Culture – forms formal norms of code of ethics PROFESSION IS DISTINGUISHED  Mastery of particular intellectual skills, acquired by training and education  Adherence by its members to common code of values and conduct  Acceptance of duty of society as a whole IS ACCOUNTANCY A PROFESSION? WHY? ACCOUNTANCY AS A PROFESSION WHAT IS THE ROLE OF PROFESSIONAL ACCOUNTANT IN THE ECONOMY? WHO IS A PROFESSIONAL ACCOUNTANT? PROFESSIONAL ACCOUNTANT  Holds a valid certificate issued by BOA.  In the different sector of Professional accountant  Professional Accountant in Public Practice  Professional Accountant in Commerce and industry  Professional Accountant in Education  Professional Accountant in Government SCOPE OF PRACTICE  Practice in Public Practice  Practice in Business  Practice in Commerce and Industry  Practice in Education/Academe PRACTICE IN PUBLIC ACCOUNTANCY  Person or a partner or a staff member in an accounting or audit firm  Skilled in the knowledge, science and practice of accounting  Qualified person to render professional services as CPA  Offering or rendering, or both, to more than one client on a fee basis PRACTICE OF PUBLIC ACCOUNTANCY  Audit or verification of financial transaction and accounting records  Signing , preparation, or certification for clients or reports of audit, statement of financial position and other financial, accounting and related activities used for publication or credit purposes, or to be filed with a court or government agency, or to be used for any other purpose  Design , installation, and revision of accounting system  Preparation of ITR when related to accounting procedures  Represents clients before government agencies on tax and on other matter relating  Professional assistance in matters relating to accounting procedures  Recording and presentation of financial facts or data PRACTICE IN COMMERCE AND INDUSTRY  Involved in decision making requiring professional knowledge in science of accounting  Employment or position requires that the holder is CPA PRACTICE IN EDUCATION OR ACADEME  Person in educational institution  Involves teaching auditing, accounting, management advisory service, finance, business law, taxation , and other technically related subjects. PRACTICE IN THE GOVERNMENT  Appointed to, a position in the accounting professional group in government or in a government owned and/or controlled corporation, including those proprietary functions, where decision making requires professional knowledge in the science of accounting  Civil service eligibility requires a CPA HOW TO BECOME A CPA? REQUIREMENTS TO ENTER THE ACCOUNTANCY PROFESSION  Holder of a degree of BSA conferred by school, college, or institute duly recognized and/or accredited by the CHED or other authorized government agency.  Qualify as a professional accountant passing the CPALE administered by PRC  Satisfy all other legal and regulatory requirements before the individual takes on the role of professional accountant ACCOUNTING CURRICULUM AT MINIMUM, 173 UNITS ARE BROKEN DOWN Courses Minimum Units Prescribed General Education Courses 36 National Service Training Program 6 Physical Education Courses 8 Common Business and Management 6 Education Courses Core Accounting Education Courses 81 Cognates/Major/Professional Courses 36 GENERAL EDUCATION  Strengthen 3 important learning outcomes :  Communication skills  Logical and Critical Thinking  Quantitative and Computer Literacy GENERAL EDUCATION  A broad general education can encourage lifelong learning and provide a foundation on which to build professional accounting studies  Helping students to become broad-minded individuals who think and communicate effectively and who have the basis for conducting inquiry, carrying out logical thinking and undertaking critical analysis. COMMON BUSINESS AND MANAGEMENT EDUCATION COURSES  Covers all the major functional areas of business and provide the foundational knowledge of the environment and the context in which professional accountants work. CORE ACCOUNTING EDUCATION COURSES  Core technical foundation essential to a successful career as professional accountants,  Develops and integrates the knowledge, skills, and professional values, ethics, and attitudes which they obtained from other components in the curriculum.  Gives theoretical and technical accounting knowledge and intellectual skills, including an understanding of professional values and ethics. COGNATE/MAJOR/ PROFESSIONAL COURSES  Professional courses complements the technical competencies of the business and management education, and accounting education courses and the intellectual, interpersonal, communication and organizational and management skill developed in general education.  Complete the technical, competencies, skills, professional attitude, ethics and values required under IFAC s latest international education standards that qualifies the graduate to take any global certification assessment in accountancy. COMMON BUSINESS AND MANAGEMENT EDUCATION COURSES  Operations Management and TQM (3)  Strategic Management (3) CORE ACCOUNTING EDUCATION COURSES  Law on obligations and contracts  Business Laws and Regulations  Regulatory Framework and Legal Issues in Business  Management Science  International Business and Trade  Accounting Research and Methods  Accounting Internship  Accountancy Research  Statistical Analysis with software application CORE ACCOUNTING EDUCATION COURSES  Governance, Business Ethics , Risk Management, and Internal Control  Managerial Economics  Economic Development  Financial Accounting and Reporting  Conceptual Framework and Accounting Standards.  Intermediate Accounting 1  Intermediate Accounting 2  Intermediate Accounting 3  Financial Markets  Financial Management CORE ACCOUNTING EDUCATION COURSES  Accounting Information System  IT Applications Tools in Business  Cost accounting and Control  Strategic Cost Management  Strategic Business Analysis  Business Tax  Incom e Taxation COGNATE/MAJOR/ PROFESSIONAL COURSES  Auditing and Assurance Principles  Auditing and Assurance Principles: Concepts and Applications 1  Auditing and Assurance Principles: Concepts and Applications 2  Auditing and Assurance Principles: Specialized Industries  Auditing in CIS Environment  Accounting for Special Transactions  Accounting for Business Combination  Accounting for Government and Non Profit Organization ELECTIVES  Updates in Financial Reporting Standards  Human Behaviour in Organizations  Operations Auditing  Valuation Concepts and Methods’  Principles and Methods of Teaching Accounting QUALIFICATION OF APPLICANTS FOR EXAMINATION CPALE - QUALIFICATION  A Filipino citizen  A good moral character  Holder of degree of BSA conferred by a school, college, academy, or institute, duly recognized and/or accredited by the CHED or other authorized government  Has not been convicted of any criminal offenses including moral turpitude SCOPE OF EXAMINATION  Theory of Accounts  Auditing.  Business Law and Taxation  Management Advisory Services.  Management Services  Financial Accounting and  Auditing Theory Reporting.  Auditing Problems  Advanced Financial Accounting  Practical Accounting I and Reporting.  Practical Accounting II  Taxation. Board, subject to approval of  Regulatory Framework for commission, may revise or Business Transactions. exclude any of the subjects and their syllabi and add new ones as the need arises RATINGS IN THE LICENSURE EXAMINATION General average = 75% YES No NO subject lower than 65% Fail No but Majority All No above 75% Pass Conditional Fail CONDITIONAL RATING  The candidate shall take the subjects within 2 years.  All remaining subjects shall have remarks of 75%.  Take at least 24 units of subjects given in the licensure examination. REPORT OF RATING  The BOA submits to PRC the ratings obtained by each candidate within 10 calendar days after the examination, unless extended for just cause. Upon release of examination results, the PRC mails the rating received by each examinee, or during their mass oath taking as new registered CPAs, to the successful examinees CASE 1 SUBJECT GRADES FAR 85 AFAR 80 AUD 75 MAS 64 TAX 66 RFBT 70 CASE 2 SUBJECT GRADES FAR 85 AFAR 80 AUD 75 MAS 64 TAX 66 RFBT 80 CASE 3 SUBJECT GRADES FAR 85 AFAR 90 AUD 74 MAS 64 TAX 66 RFBT 80 CASE 4 SUBJECT GRADES FAR 85 AFAR 80 AUD 75 MAS 65 TAX 66 RFBT 80 OTHER LEGAL AND REGULATORY REQUIREMENTS  OATH  Issuance of COR and Professional Identification Card  Indication of certification of registration, Identification card, and Professional Tax Receipt  Certificate of Live Birth in PSA paper  Marriage contract in PSA security paper for married female applicants  College diploma with an indication of the date of graduation and special order number unless it is not required.  Baccalaureate TOR with indication therein of date of graduation and SON unless it is not required  NBI  Other documents that the board may be required. 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 oath upon presentation of proof of his/her qualification, prior to entering upon the practice of profession. ISSUANCE OF COR  COR shall be issued to examinees who pass the licensure exam subject to payment of fees prescribed by commission  Certificate of registration shall bear the signature of the commission , chairman and members of board, stamped with official seal of the commission and of the board, indicating that the person named therein is entitled to practice the profession and its privileges  Remain full force until withdrawn, suspended or revoke PROFESSIONAL IDENTIFICATION CARD  Bears the registration number, date of issuance, expiry date, signed by the chairperson of the commission.  Renewable every 3 years ROSTER OF CPAS A roster showing names and place of business of all registered CPAs as maintained by the BOA but may be delegated to the PICPA and posted to internet. REFERENCES  Salosagcol, J. et al. (2015), Auditing Theory, A guide in understanding PSA. GIC Enterprises & Co., Inc.  Cabrera, M.E. (2015) Auditing Theory, Public Accountancy Profession. GIC Enterprises & Co., Inc.  Republic Act 9298: Accountancy Act of 2004  Rules and Regulation Implementing RA 9298