Practice and Regulation of the Accountancy Profession PDF

PRACTICE AND REGULATION OF THE ACCOUNTANCY PROFESSION SCOPE OF PRACTICE The practice of accountancy shall include, but not limited to, the following: 1. Practice of Public Accountancy Shall constitute in a person, be it his/her individual capacity, or as a partner or as a staff member i...

PRACTICE AND REGULATION OF THE ACCOUNTANCY PROFESSION SCOPE OF PRACTICE The practice of accountancy shall include, but not limited to, the following: 1. Practice of Public Accountancy Shall constitute in a person, be it his/her individual capacity, or as a partner or as a staff member in an accounting or auditing firm, holding out himself/herself as one skilled in the knowledge, science, and practice of accounting, and as a qualified person to render professional services as a certified public accountant; or offering or rendering, or both, to more than one client on a fee basis or otherwise, services such as the audit or verification of financial transactions and accounting records; 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 credit purposes, or to be filed with a court or government agency, or to be used for any other purpose; the design, installation, and revision of the accounting system; 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. 2. Practice in Commerce and Industry Shall constitute in a person involved in decision-making requiring professional knowledge in the science of accounting, or when such employment or position requires that the holder thereof must be a certified public accountant. 3. Practice in Education/Academe Shall constitute in a person in an educational institution that involves teaching accounting, auditing, management advisory services, 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. 4. Practice in the Government Shall constitute a person who holds, or is appointed to, a position in an accounting professional group in government or 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. REGULATION OF THE ACCOUNTANCY PROFESSION REPUBLIC ACT NO. 9298 (RA 9298) OR THE "PHILIPPINE ACCOUNTANCY ACT OF 2004" RA 9298 is the regulatory act of the practice of accountancy in the Philippines. It supersedes Presidential Decree No. 692 (PD 692), otherwise known as the revised accountancy law. Objectives RA 9298 shall provide for and govern: a. The standardization and regulation of accounting 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. PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY (BOA) Composition A Chairman and six (6) members to be appointed by the President of the Philippines. A vice-chairman shall be elected from among its members for a term of one (1) year. Qualifications of Members 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 at 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. e. Must not be a director or officer of the APO at the time of his appointment. Term of Office The Chairman and members of the Board shall hold office for a term of three (3) years. No person who has served two (2) successive complete terms shall be eligible for reappointment until the lapse of one (1) year. Powers and Functions of the Board The Board shall exercise the following specific powers, functions, and responsibilities: a. To prescribe and adopt the rules and regulations necessary for carrying out the provisions of this Act; b. To supervise the registration, licensure, and practice of accountancy in the Philippines; c. To administer oaths in connection with the administration of this Act; d. To issue, suspend, revoke, or reinstate the Certificate of 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 seem 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. 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, examination questions, answer sheets, and other records and documents pertaining to the CPA licensure examination, and administrative and other investigative cases conducted by the Board shall be under the custody of the Commission and shall provide the secretariat other support services to implement the provision of R.A. No. 9298. 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. 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 CPA'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. CERTIFIED PUBLIC ACCOUNTANT EXAMINATIONS Qualifications of Applicants for Examinations Any person applying for examination shall establish the following requisites to the satisfaction of the Board that he/she: 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. Scope of Examination The licensure examination for certified public accountants shall cover, but is not limited to, the following subjects: 1. Advanced Financial Accounting and Reporting (AFAR) 2. Auditing (AUD) 3. Financial Accounting and Reporting (FAR) 4. Management Advisory Services (MAS) 5. Taxation (TAX) 6. Regulatory Framework for Business Transactions (RFBT) Rating in the Licensure Examination PASSED General average of at least seventy-five percent (75%), with no grades lower than sixty-five percent (65%) in any given subject. CONDITIONAL General average of less than 75%, has a grade of less than 65%, or both, but has obtained 75% and above in at least majority (4 out of 6) of the subjects covered in the licensure examination.  REMOVAL A candidate shall take an examination in the remaining subjects within two EXAMINATION years from the preceding examination. Failing Candidates to Take Refresher Course A candidate who fails in two (2) complete CPA 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 subjects given in the board exam. 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. 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. 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. CERTIFICATES OF REGISTRATION, PROFESSIONAL IDENTIFICATION CARD and TEMPORARY/SPECIAL PERMITS Issuance A certificate of registration shall be issued to a. examinees who pass the licensure examination b. person admitted under reciprocity or other international agreements The Certificate of Registration shall bear the following a. full name and the assigned registration number of the registrant b. signature of the chairperson of the Commission and the chairman and members of the Board c. official seal of the Commission and of the Board, A Professional Identification Card bearing the registration number, date of issuance, and expiry date, duly signed by the chairperson of the Commission, shall likewise be issued to every registrant renewable every three (3) years. 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 CPA 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 and that there is no Filipino CPA qualified for such consultation or specific purposes; b. A foreign CPA 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 CPA 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. 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, 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. Refusal to Issue The Board shall not register and issue a certificate of registration and professional identification card to any successful examinee a. Convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude b. Guilty of immoral and dishonorable conduct c. Of unsound mind Suspension and Revocation 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 a. As mentioned in the grounds for refusal to issue; or b. Any unprofessional or unethical conduct c. Malpractice d. violation of any of the provisions of RA 9298 and its IRR, the CPA's Code of Ethics, and the technical and professional standards of practice for certified public accountants. 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. PRACTICE OF ACCOUNTANCY 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. Limitation of the Practice of Public Accountancy Single practitioners and partnerships for the practice of public accountancy shall be registered certified public accountants in the Philippines. Accreditation to Practice Public Accountancy A certificate of accreditation shall be issued to a CPA in public practice only upon showing that such registrant has acquired a minimum of three (3) years of meaningful experience in any of the areas of public practice including taxation. Individual certified public accountants, firms, and partnerships of certified public accountants, engaged in the practice of public accountancy, including partners and staff members thereof, shall register with the Commission and the Board, such registration shall be renewed every three (3) years. Seal and Use of Seal All licensed certified public accountants shall obtain and use a seal of a design prescribed by the Board bearing the registrant's name, registration 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. Ownership of Working Papers As a rule, working papers are confidential, privileged, and property of the CPA. Foreign Reciprocity Subjects or citizens of foreign countries may be allowed to practice Accountancy in the Philippines in accordance with the provisions of existing laws, and international treaty obligations including mutual recognition agreements entered into by the Philippine government with other countries. A person who is not a 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. Accredited Professional Organization (Philippine Institute of Certified Public Accountants) 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. PENAL AND FINAL PROVISIONS 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. 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. CONTINUING PROFESSIONAL DEVELOPMENT Based on RA 10912 Continuing Professional Development (CPD) Act of 2016 RA 10912 is an act mandating and strengthening the continuing professional development program for all regulated professions, creating the continuing professional development council, and appropriating funds therefor, and for other related purposes Definition and Rationale CPD refers to the inculcation of advanced knowledge, skills, and ethical values in a post-licensure specialization or in an inter- or multidisciplinary field of study, for assimilation into professional practice, self-directed research, or lifelong learning. Voluntary compliance with the CPD program is an effective and credible means of ensuring the competence, integrity, and global competitiveness of professionals in order to allow them to continue the practice of their profession. Required CPE Credit units 1. Renewal of PIC - fifteen (15) credit units. Exemptions: a. Professional working overseas (OFWs) b. Newly licensed professionals for the first renewal cycle after obtaining their license 2. For accreditation (initial and renewal) - one hundred twenty (120) credit units Minimum units under required competency areas a. Technical Competence 30 units b. Professional Skills 5 units  c. Professional Values, Ethics, and Attitudes 5 units Flexible CPD units 40 units Required number of CPD units 80 units Note: The required minimum units earned from the previous year's shall be 20 credit units. How to earn CPD credit units? 1. Seminars/workshops (training offered by Accredited CPD Providers, Face to Face or Online) As participant As resource speaker As panellist/reactor As facilitator/moderator As CPD monitor In-service training/On-the-job training 2. Academic Track (must be applied within 5 years after completion) Master's Degree or equivalent Doctorate Degree or equivalent Bachelor of Laws Professional certifications (examples: CMA, CFA, CFE, CIA, and CISA) Foreign language certifications Professional chair Internship/Specialty/Sub-specialty program Fellowship grant Post-graduate diploma/certificate 3. Self-Directed and/or Lifelong Learning (Training offered by Non-Accredited Providers, Face to Face or Online) Aside from activities similar to seminars/workshops, the following are also included in this category Technical paper Article published in refereed/peer-reviewed professional journal Pamphlet/book or monograph Magazine/newspaper articles relevant to the topics in the competence areas Study tours/visits Active committee membership in FSRSC, AASC, PIC, CPD Committee 4. Such Other Activities to be recommended by the CPD Council and Approved by the Board and the Commission. ORGANIZATIONS DISCUSSED UNDER RA 9298 Financial Reporting Standards Council (FRSC) which was renamed to Financial and Sustainability Reporting Standards Council (FSRSC) in September 2022 The council shall be composed of sixteen (16) members. A chairman, who had been or is presently a senior accounting practitioner in any of the scope of accounting practice and fourteen (14) representatives from the following: Board of Accountancy 1 Commission on Audit 1 Securities and Exchange Commission 1 Bangko Sentral ng Pilipinas 1 Bureau of Internal Revenue 1 Insurance Commission 1 A major organization composed of preparers and users of financial statements (FINEX)* 1 Accredited National Professional Organization of CPAs: Public Practice 2 Commerce and Industry 2  Academe/Education 2 Government 2 8 15 *Financial Executives Institute of the Philippines *In March 2022, the Board unanimously agreed to increase the number of members of the council from fifteen (15) to sixteen (16). Auditing and Assurance Standards Council (AASC) Per RA 9298, the AASC shall be composed of fifteen (15) members. A chairman, who had been or is presently a senior practitioner in public accountancy and fourteen (14) representatives from the following: Board of Accountancy 1 Commission on Audit 1 Securities and Exchange Commission 1 Bangko Sentral ng Pilipinas 1 An association or organization of CPAs in active public practice of accountancy 1 Accredited National Professional Organization of CPAs: Public Practice 6 Commerce and Industry 1 Academe/Education 1 Government 1 9 14 However, per BOA Resolution No. 22 Series of 2020, the number of members of AASC was increased from fifteen (15) to eighteen (18). The increase shall include additional representatives from the small- and medium-sized practitioners, a representative from the Insurance Commission, and the removal of the representative from the government. With these, the composition of the AASC will be as follows: A chairman, who had been or is presently a senior practitioner in public accountancy and seventeen (17) representatives from the following: Board of Accountancy 1 Commission on Audit 1 Securities and Exchange Commission 1 Bangko Sentral ng Pilipinas 1 An association or organization of CPAs in active public practice of accountancy 1 Insurance Commission 1 Accredited National Professional Organization of CPAs: Public Practice 9 Commerce and Industry 1 Academe/Education 1 11 17 Quality Review Committee (QRC) The QRC shall be composed of seven (7) members. A chairman, who had been presently a senior accounting practitioner in public accountancy, and six representatives from the following: Board of Accountancy 1 Accredited National Professional Organization of CPAs: Public Practice 2 Commerce and Industry 1 Academe/Education 1 Government 1 5 6 Functions of QRC: Conduct quality review on applicants for registration to practice public accountancy and render a report which shall be attached to the application for registration. Recommend to the Board the revocation of the certificate of registration and the professional identification card of CPAs in public practice of accountancy. Education Technical Council (ETC) The ETC shall be composed of seven (7) members with a Chairman, who had been presently a senior accounting practitioner in the academe/education and six representatives from the following: Board of Accountancy 1 Accredited National Professional Organization of CPAs: Public Practice 1 Commerce and Industry 1 Academe/Education 2* Government 1 5 6 *shall be equally distributed among the private and public schools ETC was established to assist the Board in a. carrying out its powers and functions provided in Rule II, Section 7 (n) of RA 9298 b. in attaining the objective of continuously upgrading accountancy education in the Philippines to make Filipino CPAs globally competitive. Term of Office The chairman and members of the FSRSC, AASC, QRC, and ETC shall have a term of three (3) years renewable for another term. Philippine Institute of Certified Public Accountants (PICPA) The PICPA was recognized by the Commission as the APO on October 2, 1975, per Accreditation No. 15. It was established for the benefit and welfare of the CPAs, the advancement of their profession, and the attainment of other professional ends. Membership is open to all registered CPAs from all sectors namely public practice, commerce, and industry, academe/education, and government. PICPA shall have adequate chapters/regions in major areas in the Philippines to effectively attend to the needs of its members There shall only be fifteen (15) national directors, unless there is a valid reason to have additional representation. Renewal of certificate of accreditation once every three years. Cancellation of accreditation may be caused by any of the following grounds: a. it has ceased to possess any of the qualifications for accreditation b. it no longer serves the best interests of CPAs c. it did not achieve its plan within three years d. it has committed acts inimical to its members and the profession e. Failure to renew its accreditation after a lapse of an unreasonable period. PRC CPE Council The Board, upon approval by the PRC, shall create this council which shall assist the Board in implementing its CPE program. Composition The PRC CPE Council shall be composed of a chairperson and two (2) members. The chairperson shall be chosen among the members of the Board The first member could either be the president or any officer chosen by the BOD of PICPA The second member could either be the president or any officer of the organizations of deans or department heads of schools, colleges, or universities offering the BS Accountancy program. Term of office Co-terminus with their respective incumbency in BOA, PICPA, and organization Powers and Functions The council shall, upon a majority vote, exercise powers and functions which shall include but shall not be limited to the following: Accept, evaluate, and approve applications for accreditation of CPE providers. Accept, evaluate, and approve applications for accreditation of CPE programs, activities, or sources as to their relevance to the profession and determine the number of CPE credit units to be earned based on the contents of the programs, activity, or source submitted by the CPE providers. Accept, evaluate, and approve applications for accreditation for exemptions from CPE requirements. Monitor implementation by the CPE providers of their programs, activities, or sources. Assess periodically and upgrade criteria for accreditation of CPE providers and CPE programs, activities, or sources. Perform such other related functions that may be incidental to the implementation of the CPE programs or policies. PICPA CPE Council If the need arises, the PRC CPE Council may delegate to the PICPA the processing of the application keeping all records for CPE providers and their respective programs and credit units earned by each CPA who avail of the CPE programs any other related functions ORGANIZATIONS AFFECTING THE ACCOUNTANCY PROFESSION I. Regulatory Government Agencies a. Professional Regulation Commission (PRC) - Agency that administers, implements, and enforces the regulatory policies of the government with respect to the regulation and licensing of the various professions under its jurisdiction. b. Board of Accountancy - the only body that issues and may revoke CPA certificates and grant licenses to practice. c. Commission on Audit (COA) - the Philippines' Supreme Audit Institution. This commission has the power, authority, and duty to examine, audit, and settle all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property, owned or held in trust by, or pertaining to, the government, or any of its subdivisions, agencies, or instrumentalities, including government-owned or controlled corporations and recommend measures to improve the efficiency and effectiveness of government operations. Its primary function is to keep the general accounts of the government and for such period as may be provided by law, preserve the vouchers pertaining thereto.  Reports on the: 1. Accountability of government funds a. When it examines all accounts pertaining to the revenue and receipts of, and expenditures or uses of funds and property owned or held in trust by, or pertaining to, the government. b. When it sets accounting and auditing rules and regulations including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant, or unconscionable expenditures, or uses of government funds and properties. 2. Financial condition and operation of the government to the President and the Congress. 3. Operational efficiency and effectiveness of the government and its agencies. 4. Accountability of government records. 5. Decisions to any case brought before it within 60 days. d. Securities and Exchange Commission (SEC) Agency that regulates the registration and operations of corporations, partnerships, and other forms of associations, as well as monitoring of compliance with the Corporation Code, Civil Code provisions on partnerships, Foreign Investment Act, and other related laws. It has the power to establish rules for any CPAs associated with audited financial statements submitted to the Commission and also has considerable influence in setting GAAP and disclosure requirements for financial statements The SEC Powers and functions relevant to the Accountancy Profession 1. Have the jurisdiction and supervision over all corporations, partnerships, or associations who are the grantees of primary franchises and/ or a license or permit issued by the Government; 2. Approve, reject, suspend, revoke, or require amendments to registration statements, and registration and licensing applications; 3. Issue cease and desist orders to prevent fraud or injury to the investing public; 4. Impose sanctions for the violation of laws and the rules, regulations, and orders issued pursuant thereto; 5. Punish for contempt of the Commission, both direct and indirect, in accordance with the pertinent provisions of and penalties prescribed by the Rules of Court; 6. Issue subpoena duces tecum and summon witnesses to appear in any proceedings of the Commission and appropriate cases, order the examination, search, and seizure of all documents, papers, files and records, tax returns, and books of accounts of any entity or person under investigation as may be necessary for the proper disposition of the cases before it, subject to the provisions of existing laws. Objectives: to assist in providing investors with reliable information upon which to make investment decisions e. Bureau of Internal Revenue (BIR) - Agency whose primary objective is to raise revenues for the government. It also prescribes additional requirements for audited financial statements that accompany tax returns of various entities. f. Bangko Sentral ng Pilipinas (BSP) - An agency whose primary objective is to maintain price stability conducive to a balanced and sustainable economic growth. It also aims to promote and preserve monetary stability and the convertibility of the peso. g. Insurance Commissions - prescribes additional requirements regarding audits of insurance, pre-need, and HMO industries. Its primary mandate is to regulate and supervise these industries in accordance with the provisions of the Insurance Code, as amended, Pre-Need Code of the Philippines, and Executive Order No. 192 (s. 2015) Objectives: To promote growth and financial stability of insurance, pre-need, and HMO companies To professionalize insurance, pre-need, and HMO services, and develop insurance, pre-need, and HMO consciousness among the general populace To establish a sound national insurance market To safeguard the rights and interests of the insuring public, pre-need, and HMO customers  II. Professional Organizations A. Philippine Institute of Certified Public Accountants (PICPA) - the accredited national professional organization B. Sectoral Organizations 1. Association of CPAs in Public Practice (ACPAPP) 2. Association of CPAs in Education (ACPAE) 3. Association of CPAs in Commerce and Industry (ACPACI) 4. Government Association of CPASS (GACPA) III. Standard-Setting Bodies 1. Financial Reporting and Sustainability Standards Council 2. Auditing and Assurance Standards Council How to earn CPD credit units? The following is the list of CPD Activities from which a CPA can eam CPD units (lifted from PRC Resolution No. 254 Series of 2017 or the Operational Guidelines in the Implementation of RA 10912 for the Accountancy Profession) 1. SEMINARS/WORKSHOPS (TRAINING OFFERED BY ACCREDITED CPD PROVIDERS, FACE TO FACE OR ONLINE) Supporting Program or Activity Credit Units Documents Certificate of (a) Participation in Attendance with No. of courses, conferences Hours and Seminar and seminars 1.1 As a participant Approved Credit Unit for the Program Program Photocopy of certificate, Copy of papers and Program 1.2 As Resource Speaker 3 CU per hour Invitation (g) Participation as a Certification from speaker in sponsoring conferences, briefing organization and Copy sessions, or 1.3 As Panelist/Reactor 2 CU per hour of Program discussion groups Certification from sponsoring organization and Copy 1.4 As Facilitator/Moderator 1 CU per hour of Program Monitoring Report, Certificate of Twice the Number of Approved Credit Appearance and the 1.5 CPD Monitor Units for the Program Authority to Monitor Certification from Maximum of 20 CU for a 12-month sponsoring 1.6 In service Training / On- period or a fraction thereof upon organization and Copy the-Job Training completion of Program  2. ACADEMIC TRACK (MUST BE APPLIED WITHIN 5 YEARS AFTER COMPLETION) Program or Activity Credit Units Supporting Documents University Certification/Diploma 2.1 Master's Degree or 60 CU for Compliance Period upon & Transcript of equivalent Completion of Degree Records (authenticated copy) 2.2 Doctorate Degree or 60 CU for Compliance Period upon University equivalent Completion of Candidacy Certification / (f) Formal study Additional 30 CU for Compliance Diploma & Transcript related to Period upon Completion of of Records professional Degree (authenticated copy) responsibilities 30 CU for Compliance Period upon University 2.3 Bachelor of Laws Certification / Completion of Candidacy Diploma & Transcript Additional 30 CU for Compliance of Records, Certificate Period upon Completion of of Admission to the Degree Philippine Bar Copy of Professional Certificate duly 2.4 Professional 10 CU per Professional (j) Professional re- authenticated by Certifications, such as CMA, Certification obtained from 2010 examination or certifying CFA, CFE, CIA, CISA, etc... and subsequent years formal testing organization, such as IIA, ISACA, CIMA, etc. Copy of Certificate of Completion and 2.5 Foreign Language 10 CU for each Foreign Language Proficiency from a Certifications - verifiable, Nil Certification duly recognized input- based foreign language training institution Certification of grant 2.6 Professional Chair 15 CU per year or appointment paper Certification from Host Institution and 2.7 Internship/Specialty / Certificate of Sub- specialty/Program 10 CU per year Completion 2.8 Fellowship Grant 2.8.1 Participant 2 CU per grant Certification from 2.8.2 Resource Speaker 4 CU per grant granting institution and/or Certificate of 2.8.3 Researcher 5 CU per grant Fellowship Maximum of 30 CU for an 18- 2.9 Post-Graduate Diploma/ month period or a fraction thereof Diploma/Certification Certificate upon completion from the Institution  3. SELF-DIRECTED AND/OR LIFELONG LEARNING (TRAINING OFFERED BY NON-ACCREDITED PROVIDERS, FACE TO FACE OR ONLINE) Supporting Program or Activity Credit Units Documents Certificate of Credit Units for the Program as evaluated by the CPD Attendance with Council No. of Hours and 3.1 As a participant Seminar Program Photocopy of certificate, Copy 3 CU per hour of papers and 3.2 As Resource Program Speaker Invitation (e) Developing Certification from or delivering a sponsoring course or CPD 2 CU per hour organization and session in an 3.3 As Panelist/Reactor Copy of Program area related to Certification from professional sponsoring responsibilities 1 CU per hour 3.4 As organization and Facilitator/Moderator Copy of Program Certificate of Maximum of 20 CU for a 12-month period or a fraction Training and 3.5 In-Service Training/ thereof upon completion Training On-the-Job Training Description 3.6 Program/Training Copy of Module 10 CU per complete set of modules Module Development and Evaluation Certification of Completion and 5 CU per Technical Paper (for Published Paper see 3.8) Approval (for Published Paper 3.7 Technical Paper see 3.8) 3.8 Article Published in Refereed / Peer Reviewed Professional Journal Copy of 10 CU Local 15 CU Published Article International For multiple authors, divide CU equally (h) Writing and Table of among them articles, papers, 3.8.1 Author/s Contents 3.8.2 Peer Reviewer 2 CU per article or books of a technical, professional or Copy of academic 3.9 Pamphlet / Book or Published nature Monograph Material with 20 CU for single author pamphlet (less than 100 pages) Proof of 40 CU for single author for Book or Monograph pamphlet Copyright and (more than 100 pages) For multiple authors, divide CU Table of 3.9.1 Author/s equally among them Contents 3.9.2 Editor Maximum of 20 CU 3.10 Magazine/Newspaper Proof of Maximum of 5 CU per article For multiple authors, divide Articles relevant to the Publication CU equally among them topics in the Competence Article Areas Certification from 2 CU per day (max of 20 CU/tour) sponsoring Nil 3.11 Study Tours/Visits institutions  Certification of 3.12 Active Committee Attendance and Membership in FRSC, CPD compliance AASC, PIC, CPD, signed by the Committee (PICPA & Secretary and Professional duly noted by the (d) Participation Organizations), CHED, Chairman of the in and work on Technical Committee on 2 CU per meeting attended up to a maximum of 24 CU respective technical Accountancy Education per calendar year Committee committee 3.13 Consultancy (e.g. rendered to the profession such as Citizen Participatory Audit, Government Bidding and Procurement Subject to prior Observers, Accreditors determination and other activities as and approval by per request of an CU for other voluntary services subject to prior approval the joint CPD institution, etc.) by the Joint CPD Committee Committee 3.14 Socio-Civic activities (e.g. Mentors in Go! Negosyo Mentor-Me Project Proposal, program, Tax and Report and Accounting Clinics, etc.) 3 CU per hour Photos 3.15 Recognition/Title (e.g. Fellows, Hall of Fame Awards, Copy of Outstanding certification from Professional, Lifetime the Awarding Achievement Awardee, Full CU for Compliance Period subject to approval by the Body (duly etc.) CPD Council notarized)