Republic of The Philippines Professional Regulation Commission Manila
Republic of The Philippines Professional Regulation Commission Manila
Republic of The Philippines Professional Regulation Commission Manila
RULE I
SECTION 1. Short Title. This Rules and Regulations shall be known as THE
RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO. 9298
otherwise known as the PHILIPPINE ACCOUNTANCY ACT OF 2004.
This Rules and Regulations shall be interpreted, construed, and carried out in the light of
the above Declaration of Policy, which embodies the legislative intent in enacting the
law.
SEC. 4. Scope of Practice. The practice of Accountancy shall include, but not
limited, to the following:
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P. PAREDES ST., CORNER MORAYTA STREET, SAMPALOC, MANILA, PHILIPPINES
P.O. BOX 2038, MANILA
ii. 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
iii. when such employment or position requires that the holder thereof must
be a certified public accountant.
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(c) Practice in Education/Academe - shall constitute in a person,
SEC. 4 (A). Definition of Terms- As used in these rules and regulations, the
following terms shall be understood to mean as follows:
b. Act or RA No. 9298 The Philippine Accountancy Act of 2004 and its
subsequent amend ments;
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and procedural requirements for such issuance including, in appropriate
cases, having successfully passed the CPA licensure examination.
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r. Syllabi - documents showing the outline embodying topics and concepts of
major subjects prescribed in specific course of study to serve as the basis
for test questions in the CPA licensure examinations.
RULE II
PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY
The four (4) sectors in the practice of accountancy shall as much as possible be
equitably represented in the Board. The Commission in consultation with the Board shall
select three (3) nominees from those recommended by the APO and submit such list to
the President for consideration.
SEC. 5 (A). Time of submission of nomination to the Board by the APO- The
APO shall submit its nominations with complete documentation to the Commission not
later than (60) days prior to the expiry of the term of an incumbent chairman or member.
There should be adequate documentation to show the qualification and primary field of
professional activity of the nominee to enable the Commission to determine the
competence of the nominee and the sector where he/she belongs. If the APO fails to
submit its own nominee(s) to the Commission with the required documentations within
the period provided herein, the Commission in consultation with the Board shall submit
to the President a list of three (3) nominees for each vacant position.
(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. He/shall be
nominated to represent a sector from which he/she has considerable and
meaningful professional experience.
(c) Must be of good moral character and must not have been convicted of crimes
involving moral turpitude;
(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;
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Provided, That if the Chairman or any member of the Board is still in active
practice of public accountancy or connected with any office in commerce and industry or
in the government, he/she must go on leave during the pendency of any case involving
himself/herself, his firm, partnership, company or government office, or inhibit
himself/herself completely in all the stages of the proceedings thereof.
SEC. 7. Term of Office. - 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 successive complete terms as chairman or member shall be eligible for
reappointment as chairman or member until the lapse of one year. Appointment to fill up
an unexpired term is not to be considered as a complete term. Provided, That no person
shall serve in the Board for more than twelve (12) years.
SEC. 9. Powers and Functions of the Board. The Board shall act as a collegial
body and shall exercise the following specific powers, functio ns and responsibilities:
(a) To prescribe and adopt the rules and regulations necessary for carrying out the
provisions of this Act;
(d) To issue, suspend, revoke, or reinstate the Certificate of Registration for the
practice of the accountancy profession;
(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;
(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
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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 deem 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;
(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; Provided, That the Board may, upon
prior approval by the Commission, engage the services of expert test writers,
who shall propose test questions for the CPA Licensure Examinations.
Provided, Further, That the Board does not delegate its power and function to
determine and prepare test questions for the CPA Licensure Examinations,
Provided, Finally, That the Board and the Commission shall institute adequate
controls over the processing and safekeeping of such test questions to ensure
the full integrity of the CPA Licensure Examinations;
(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 RA No. 9298.
The policies, resolution, rules and regulations, issued or promulgated by the Board
shall be subject to review and approval of the Commission. However, the Boards
decisions, resolutions or orders rendered in administrative cases shall be subject to review
only if on appeal.
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be known as the Auditing and Assurance Standards Council (AASC) to assist the Board
in carrying out its powers and functions provided in Rule II, Section 7 (g) hereof;
The FRSC shall be composed of fifteen (15) members with a Chairman, who had
been or presently a senior accounting practitioner in any of the scope of accounting
practice and fourteen (14) representatives from the following:
The Chairman and members of the FRSC and AASC shall be appointed by the
Commission upon the recommendation of the Board in coordination with the APO. The
FRSC and the AASC shall make an annual review of the composition of their respective
councils and may recommend to the Board and the Commission a more suitable
representation thereto as they may deem fit. The Chairman and the members of the FRSC
and AASC shall have a term of three (3) years renewable for another term. Provided,
That any existing accounting and auditing standards setting council shall continue to
function as such until the creation of the FRSC and the AASC as provided herein.
Provided, Further, That any member of any existing accounting and auditing standard
setting council shall not be disqualified from being appointed to the FRSC or AASC as
the case maybe for the terms provided herein.
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SEC. 9 (B). - Education Technical Council - The Commission upon the
recommendation of the Board shall within sixty (60) days from the effectivity of this IRR
create an Education Technical Council (ETC) to assist the Board in carrying out its
powers and functions provided in Rule II, Section 7 (n) hereof and to further assist the
Board in the attainment of the objective of continuously upgrading the accountancy
education in the Philippines to make the Filipino CPAs globally competitive.
The ETC shall be composed of seven (7) members with a Chairman, who had
been or presently a senior accounting practitioner in the academe/education and six (6)
representatives from the following:
The Chairman and members of the ETC shall be appointed by the Commission
upon the recommendation of the Board in coordination with the APO. The ETC sha ll
make an annual review of the composition of the council and may recommend to the
Board and the Commission a more suitable representation thereto as it may deem fit. The
Chairman and the members of the ETC shall have a term of three (3) years renewable for
another term.
(c) monitor the progress of the program on the study of accountancy and
undertaking measures for the attainment of a high quality of accountancy
education in the country;
The ETC shall render a report of its findings and recommendations on the
foregoing activities to the Board. The Board shall review such report and if found to be
meritorious, it shall forward the same to the Commission which shall make proper
representation with the CHED for its appropriate consideration.
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SEC. 10. Administrative Supervision 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 examinations, and administrative and other
investigative cases conducted by the Board shall be under the custody of the
Commission. The Commission shall designate the Secretary of the Board and shall
provide the secretariat and other support services to implement the provisions of this RA
No. 9298.
SEC. 11. 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:
(b) Violation or tolerance of any violation of this Act and its implementing rules
and regulations or the Certified Public Accountants Code of Ethics and the
technical and professional standards of practice for certified public
accountants;
SEC. 12. 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.
RULE III
EXAMINATION, REGISTRATION AND LICENSURE
SEC. 13. The Certified Public Accountant Examinations. All applicants for
registration for the practice of accountancy shall be required to undergo a licensure
examination to be given by the Board in such places and dates as the Commission may
designate subject to compliance with the requirements prescribed by the Commission in
accordance with Republic Act No. 8981. The places/venues and dates of examinations
shall be included in the Schedule of Professional Licensure Examinations for the year
issued by the Commission.
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that he/she:
(d) has not been convicted of any criminal offense involving moral turpitude.
(a) Certificate of Live Birth in National Statistics Office (NSO) Security Paper;
(b) Marriage Contract in NSO Security Paper for married female applicants;
(c) College diploma with indication therein of date of graduation and Special
Order Number unless it is not required;
The Board shall not renew a Professional Identification Card, or shall suspend, or
revoke, any Certificate of Registration obtained by false swearing or by any
misrepresentation made in applying for registration or examination and shall not renew
nor grant registration to any applicant whose application contains such false evidence or
information.
SEC. 15. Scope of Examination. The licensure examination for certified public
accountants shall cover, but are not limited to, the following subjects:
The Board, subject to the approval of the Commission, may revise or exclude any of
the subjects and their syllabi, and add new ones as the need arises. Provided, That the
change shall not be more often than every three (3) years.
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preceding examination; Provided, further, That if the candidate fails to obtain at least a
general average of seventy- five percent (75%) and a rating of at least sixty-five percent
(65%) in each of the subjects reexamined, he/she shall be considered as failed in the
entire examination. Provided, That the Board may adopt its own internal procedures on
the implementation of this provision.
SEC. 17. 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. Provided, That the
report of rating may be distributed to the successful examinees during their mass oath
taking as new registered CPAs.
SEC. 18. Failing Candidates to Take Refresher Course - Any candidate who
fails in two (2) complete Certified Public Accountant Board Examinatio ns 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 licensure examination. Provided, That such refresher
course shall be offered only by an educational institution granting a degree of Bachelor of
Science in Accountancy. Provided Further, That the candidates shall have the option of
taking the aforesaid subjects in the regular course offering or in a special refresher course
duly accredited by the Board.
For purposes of this Act, the examination in which the candidate was conditioned
together with the removal examination on the subject in which he/she failed shall be
counted as one complete examination.
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SEC. 21. 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. 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 preparation of this roster to the APO; Provided,
Further, That the Board and/or the Commission may adopt the APOs report as it may
deem fit; Provided, Finally, That posting of the roster at the internet shall be deemed
compliance with this requirement.
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SEC. 25. 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, and after being convinced of applicants remorse and rehabilitation,
reinstate the validity of a revoked certificate of registration and in so doing, may, in its
discretion, exempt the applicant from taking another examination.
RULE IV
PRACTICE OF ACCOUNTANCY
(a) commerce and industry and shall include significant involvement in general
accounting, budgeting, tax administration, internal auditing, liaison with
external auditors, representing his/her employer before government agencies
on tax and matters related to accounting or any other related functions; or
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(b) academe/education and shall include teaching for at least three (3) trimesters
or two (2) semesters subjects in either financial accounting, business law and
tax, auditing problems, auditing theory, financial management and
management services. Provided, That the accumulated teaching experience on
these subjects shall not be less than three (3) school years; or
(d) public practice and shall include at least one year as audit assistant and at
least two years as auditor in charge of audit engagement covering full audit
functions of significant clients.
Provided, That if the Board finds such experience inadequate to the minimum
requirements for the public practice of accountancy in the course of its evaluation of
his/her application for accreditation to practice public accountancy, the registrant shall be
required to make up such inadequacy from competent sources. Provided, Further, That
such meaningful experience shall be certified under oath by the employer where such
meaningful experience was obtained.
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The rules and regulations covering the accreditation of individual CPAs, firms
and partnerships for the practice of public accountancy, renewal of Certificate of
Accreditation and its Suspension/Cancellation are stated in the attached sheets as Annex
B and made an integral part hereof.
The rules and regulations covering the accreditation of CPE provider and the
programs thereof, renewal of Certificate of Accreditation and its Suspension/Cancellation
are stated in the attached sheets as Annex C and made an integral part hereof.
SEC. 33. Seal and Use of Seal. - All registered certified public
accountants shall obtain and use a seal of a design prescribed by the Board bearing the
registrants name, registration number and title. The auditors 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.
The seal of a Certified Public Accountant shall be circular in form with a smaller
circle within and in the upper portion of the space between the circles shall be engraved
the name of the individual CPA, firm or partnership as the case maybe, the lower
portion thereof shall be engraved the CPA Registration Number of the individual CPA,
proprietor of the firm and the signing partner of the partnership and in the middle of the
smaller circle shall be engraved the letters CPA. Affixing the CPAs seal and signature
is an indication of compliance by the CPA of the requisite accounting and auditing
standards and rules.
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That if the letter/document and the copy of the law submitted by the applicant is
satisfactory to the Board, the foreign applicant shall be allowed to practice accountancy
in the Philippines by requiring him to file an application and by submitting the following
documents that shall accompany the application:
(a) The original or certified copy of any official documents issued by the
Bureau of Immigration and Deportation allowing the applicant to enter and
reside in the Philippines;
(b) Present his passport for examination and for photocopying of pertinent
information about himself/herself;
(d) Certificate of Registration or its equivalent stating that the foreign applicant
is duly registered or licensed CPA or its equivalent in his/her country/state;
(a) A foreign certified public accountant 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; Provided, Further, That there is
no Filipino certified public accountant qualified for such consultation or
specific purposes;
(b) Within thirty (30) calendar days after his/her commission/appointment date,
the commissioning party shall secure an employment permit from the
Department of Labor and Employment. Thereafter, the commissioning party
shall secure the Temporary/Special Permit from the Board subject to the
approval by the Commission;
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(c) In the absence of any bilateral agreement, the foreign national shall submit
documentary proof or evidence allowing Filipino CPAs to practice the
profession in their home country without any limitation;
(e) Upon issuance of the Temporary/Special permit, the foreign national may
become a member of the APO subject to the rules and procedures of its
membership.
RULE V
PENAL AND FINAL PROVISIONS
SEC. 36. Penal Provision. - Any person who shall violate any of the
provisions of RA No. 9298 or this 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 (P50,000.00) or by imprisonment
for a period not exceeding two (2) years or both.
SEC. 37. Implementing Rules and Regulations Within ninety (90) days
after the effectivity of RA No. 9298, the Board, subject to the approval of the
Commission and in coordination with the APO, shall adopt and promulgate such
rules and regulations to carry out the provisions of RA No. 9298 and which shall be
effective fifteen (15) days following their publication in the Official Gazette or in any
major daily newspaper of general circulation.
SEC. 38. Interpretation of RA No. 9298 and its Implementing Rules and
Regulations - Nothing in the RA No. 9298 and this Implementing Rules and Regulations
shall be construed to effect or prevent the practice of any other legally recognized
profession.
SEC. 39. Enforcement of RA No. 9298 and its Implementing Rules and
Regulations - It shall be the primary duty of the Commission and the Board to
effectively enforce the provisions of RA No. 9298 and this Implementing Rules and
Regulations. 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 RA No. 9298 and this Implementing Rules and Regulations 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 RA
No. 9298 and this Implementing Rules and Regulations.
Any person may bring before the Commission, Board or the aforementioned
officers of the law, cases of illegal practice or violations of RA No. 9298 and this
Implementing Rules and Regulations committed by any person or party.
The Board shall assist the Commission in filing the appropriate charges through
the concerned prosecution office in accordance with law and rules of court. Provided,
That for the orderly implementation of this provision, the Commission and the Board
may enter into a Memorandum of Agreement with each law enforcement agency and/or
the Department of Justice providing for the procedures to be followed for the call or
request for assistance. Provided, Further, That in the enforcement, implementation, and
administration of the provision of RA No. 9298 and its IRR, the Rules and Regulations
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governing the regulation and practice of Professionals and the Rules and Regulations
implementing the provisions of Republic Act No. 8981 shall be applicable thereto,
insofar as the latter are not inconsistent with the former.
SEC. 44. Effectivity. This Implementing Rules and Regulations shall take
effect after fifteen (15) days following its full and complete publication in the Official
Gazette or in any major daily newspaper of general circulation.
EUGENE T. MATEO
Chairman
JOHN S. BALA
Vice -Chairman
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SOLITA V. DELANTAR FROILAN G. AMPIL
Member Member
LUCILA C. TARRIELA
Member
ATTESTED
CARLOS G. ALMELOR
Secretary
Professional Regulatory Boards
Approved as the Implementing Rules and Regulations of Republic Act No. 9298
otherwise known as the Philippine Accountancy Act of 2004, this _____ day of
September, 2004.
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ANNEX A
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1. STATUS OF THE PHILIPPINE INSTITUTE OF CERTIFIED PUBLIC
ACCOUNTANTS (PICPA) - The PICPA which was recognized by the
Commission, as the APO on October 2, 1975 per Accreditation No. 15, shall continue
to enjoy its accreditation with the same number subject to compliance with the
requirements prescribed herein.
(a) It is established for the benefit and welfare of the CPAs, the advancement of
their profession, and the attainment of other professional ends;
(c) Its membership shall include CPAs in all sectors namely, public practice,
commerce and industry, academe/education and government;
(d) It shall have a creditable plan to enlist into active membership within three (3)
years, at least a majority of the CPAs in the practice of accountancy as defined
in Section 4, Rule I of this IRR;
There shall only be fifteen (15) national directors, unless there is a valid
reason to have additional representation. The fifteen (15) national directors
shall be apportioned according to sectors in the four geographic areas (eg.
National Capital Region, Luzon, Visayas and Mindanao) based on the ratio of
latest available number of members in good standing from those areas;
The PICPA shall adopt rules and regulations to implement this distribution of
its national directors including the rotation of its president by sectors in each
of the regions and accordingly amend its Articles of Incorporation and By-
laws not later than ninety (90) days after the effectivity of this rules and
regulations;
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(f) It shall be judicious and prudent in the management of its financial resources
and for this purpose its chapter/region/national office and their respective
foundation shall keep proper books of accounts and submit audited annual
financial statements thereof. The national office shall consolidate these
financial statements on annual basis for submission to the Board and the
Commission in accordance with the applicable accounting procedures;
(g) It shall have a full time career Executive Director who shall implement the
policies promulgated by the PICPA Board of Directors and shall have direct
supervision over the PICPA Secretariat;
(a) A notarized petition signed by the PICPA President stating, among others, that
the organization was established for the benefit and for the advancement of
the profession;
(b) List of its national directors and officers and a suitable organization chart
(with job description of each officer) showing the working relationship of
each director and officer;
(c) List of chapters and their respective members indicating their respective
Certificate of Registration and dates of registration and their Professional
Identification Card Numbers, dates of issuance and expiry;
(d) List of regions and their respective officers and the chapters and officers
within each region;
(e) Original copy of the latest certificate of registration issued by the Securities
and Exchange Commission (SEC) and the certification of registration of their
foundations;
(f) Certified true copy by SEC of the PICPAs current Articles of Incorporation
and By- laws;
(g) SEC certification of current registration and compliance with SEC rules; and
(h) Latest audited consolidated financial statements of the national office and the
regions and chapters and their respective foundations. If the consolidated
financial statements cannot be audited for any reason, the separate audited
financial statements of the national office, regions and chapters and their
respective foundations shall be submitted.
After PICPA satisfactorily meets the requirements for the continuity of its
accreditation, the Commission upon recommendation by the Board shall issue a
Resolution approving its re-accreditation and directing the issuance of the
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Certificate of Accreditation thereto upon payment of the prescribed accreditation
fee.
(c) It did not achieve its plan provided in paragraph 2 to enlist into active
membership within three (3) years, majority of the CPAs in the practice of
accountancy as defined in the Section 4, Rule I hereof or even if it achieves
such plan but fails to sustain it over time such that its membership no longer
represents a significant portion of the aforesaid CPAs in the practice of
accountancy.
(d) It has committed acts inimical to its members and to the profession.
(f) It has not submitted the required audited financial statements provided in
Paragraph 2 thereof.
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ANNEX B
1. REGISTRATION
(a) Within ninety (90) days from the effective date of this revised rules and
regulations, Individual CPAs, including staff members thereof, Firms,
including the sole proprietors and staff members thereof and Partnerships of
CPAs including the partners and staff members thereof who/which are not
yet registered under the rules and regulations prescribed by Board Resolution
No. 38, Series of 1990, as amended by Board Resolution No. 69 Series of
2002 shall register with the Board and the Commission in the manner
provided for in Paragraph 1 (c) hereof. On the other hand, Individual CPAs,
Firms and Partnership with current and valid registration under the said rules
and regulation need to submit only the additional requirements provided in
this revised rules and regulations within ninety (90) days from the effective
date thereof. The registration shall be valid for a period of three (3) years and
may be renewed every three (3) years on or before September 30 on the year
of expiry upon compliance of the requirements provided in this revised rules
and regulations. The registration of applicants approved during any month of
the year shall expire on December 31 on the third year following its approval
(i.e. if the application of registration of ABC and Company CPAs was
approved on July 31, 2002, the registration shall expire on December 31,
2004 and therefore it shall file for renewal on or before September 30, 2004
for the three year period beginning January 1, 2005 and shall apply on or
before September 30, 2007 for the next three (3) year period beginning
January 1, 2008 and so forth).
(b) Individual CPAs, including staff members thereof, Firms, including the sole
proprietors and staff members the reof and Partnerships of CPAs including
the partners and staff members thereof organized after the effective date of
this revised rules and regulations shall register with the Board and the
Commission in the manner provided for in Paragraph 1 (c) hereof, and shall
not commence the practice of public accountancy until a valid Certificate of
Registration has been issued in accordance with Paragraph 1 (g) hereof.
(c) The application for registration shall be accomplished in the form prescribed
by the Board, in triplicate, and duly signed by the applicant Individual CPA,
sole proprietor of the applicant Firm or authorized partner of the applicant
Partnership. The application for registration shall contain such information
as maybe required by the Board including, but not limited to, the following
matters:
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government office(s) and such Firm name shall include the real
name of the sole proprietor as printed in his CPA certificate (i.e.
Juan de la Cruz and Associates) or other similar Firm names. In the
case of registered Partnerships, they shall do business under their
respective Partnership names as indicated in their current Articles of
Partnership and certificates of registration issued by the Securities
and Exchange Commission (SEC) or under the Partnership names
as indicated in their current Articles of Partnership in case of
unregistered partnerships ( i.e. Cruz, Isidro, Martin, and
Company,) or other similar Partnership names.
iv. Certified copies of all business permits issued by the local and/or
national government.
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registered with the Board and the Commission). The Individual CPA,
sole proprietor of the Firm and managing partner of the Partnership as
the case maybe shall attach to the application for registration a sworn
statement stating that
vi. Name(s) of staff member(s) who are CPAs together with a copy of
his/her/their CPA Certificate(s) and professional identification
card(s) issued by the Board and the Commission.
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xi. In the case of an Individual CPA and Firm or Partnership of CPAs
registering for the first time, the application of registratio n shall be
accompanied with a sworn statement by the Individual CPA, sole
proprietor of the Firm and managing partner of the Partnership
stating that the Individual CPA, sole proprietor of the Firm, and all
the partners of the Partnership has (have) at least three (3) years of
meaningful experience in any of the areas of public practice
including taxation as defined in Section 4 Rule 4 of the IRR and
attach to the sworn statement , a detailed description of such work
experience of the individual CPA, sole proprietor of the Firm and all
the partners of the Partnership.
xii. Sworn statement by the Individual CPA, sole proprietor of the Firm
and managing partner of the Partnership stating that the Individual
CPA and all his/her staff member(s), sole proprietor and all the staff
member(s) of the Firm , and all partners and staff member (s) of the
Partnership (a) are all of good moral character and (b) he/she or
they had not been found guilty by a competent court and/or
administrative body of any case involving moral turpitude and /or
unethical practices and that neither anyone of them is a defendant in
any case of similar nature pending before any competent court
and/or administrative agencies supported by a certificate of clearance
issued by the proper court, administrative or law enforcement
agencies for the individual CPA, sole proprietor, and the
partners/principals of the partnership as the case maybe.
(d) Any change with respect to the matter enumerated in Paragraph 1 (c) (vii)
should be reported in writing to the Board, copy furnished the Commission ,
within sixty (60) days from such change. Renewals of Certificates of
Registratio n shall indicate the changes that have taken place since the last
registration.
(e) The Board shall duly authenticate all applications for registration received in
proper form, and after having passed upon such applications, shall
recommend to the Commission the approval or denial thereof not later than
sixty (60) days after the receipt of the aforesaid applications in proper from
(i.e. with complete and proper documentary requirements).
(f) The Individual CPA, Firm or Partnership of CPAs duly registered under
these revised rules and regulations shall not have as its owner, sole
proprietor, partner or any staff thereof, any foreign CPA unless he/she
qualifies to practice in the Philippines under Sections 34 and 35 Article IV of
RA No. 9298, and/or other releva nt laws and bilateral and/or multilateral
agreement or treaties.
4
(g) The Commission shall upon favorable recommendation of the Board, issue to
the applicant the corresponding Certificate of Registration to practice public
accountancy. Unless sooner revoked, cancelled or withdrawn, said Certificate
of Registration shall be valid for three (3) years and subject to the provisions
of Paragraph 1 (a) to (g) hereof, shall be renewable every three (3) years
upon payment of the fees in accordance with Paragraph 5 (a) hereof.
2. VOLUNTARY WITHDRAWAL OF
REGISTRATION/REINSTATEMENT
(a) The Individual CPAs, including staff members thereof, Firms, including the
sole proprietors and staff members thereof and Partnerships of CPAs
including the partners and staff members the reof, duly registered to engage in
the practice of public accountancy may voluntarily withdraw their registration
by filing with the Board a petition in writing stating the reason(s) therefor.
The petition should be duly authenticated and signed by the Ind ividual CPA or
any of his/her staff member, the sole proprietor or any of the staff members
thereof or all the partners of the Partnership, or any of them or any of the
staff member(s) thereof who are requesting for the voluntary withdrawal of
registration.
(b) At the expense of the petitioners, the Board shall publish or cause the
publication of the request for withdrawal of registration once in a newspaper
of general circulation in the principal place of business of the Individual CPA,
Firm or Partnership. If there is no opposition to the petition, the Board shall
recommend approval thereof to the Commission. Upon approval, the
petitioners name shall be removed from the roll of Individual CPAs, Firms
and Partnerships of duly registered practitioners of public accountancy and
the petitioner shall be notified in writing of the withdrawal of the registration.
(c) Upon receipt from the Board of the written notice of the withdrawal of
registration, the petitioner shall cease to engage in the practice of public
accountancy.
(d) The Commission shall publish the list of Individual CPAs, including staff
members thereof, Firms, including the sole proprietors and staff members
thereof or Partnerships of CPAs including the partners and staff members
thereof, whose registration has been cancelled or withdrawn and shall furnish
copies of the list to the pertinent government regulatory agencies.
(e) The Individual CPAs, including any of the staff members thereof, Firms,
including the sole proprietors and any of the staff members thereof or
Partnerships of CPAs including any of the partners and staff members thereof,
that had voluntarily withdrawn their registration, may register anew by filing
an application in accordance with Paragraph 1 (a) to (g) hereof.
3. QUALITY REVIEW
(a) The Board shall require as a condition to registration or any renewal thereof
for the Individual CPAs, Firms or Partnerships of CPAs to undergo quality
review in such manner as the Board may specify, provided, however, that any
such requirement shall include reasonable provisions for compliance by a
registrant showing that he/she/it has undergone a satisfactory quality review
5
performed for other purposes which is substantially equivalent to quality
review and shall be made applicable to all Individual CPAs, Firms or
Partnerships.
The QRC shall be composed of seven (7) members with a chairman, who had
been or presently a senior practitioner in public accountancy and six (6) representatives
from the following:
i. Board of Accountancy 1
ii. Accredited National Professional Organization
of CPAs
Public Practice 2
Academe/Education 1
Commerce and Industry 1
Government 1 5
------- -------
Total 6
====
6
4. DEATH OR DISABILITY OF AN INDIVIDUAL CPA AND
DISSOLUTION OR LIQUIDATION OF A FIRM OR PARTNERSHIP OF
CPAS
(a) Application for initial registration, renewal and request for reinstatement, shall
be subject to the fee of One Thousand Pesos (P1,000.00) or to such an amount
as the Commission may prescribe.
(b) Subject to review by the Commission and depending on the gravity of the
offense(s), the Board shall suspend or revoke the CPA Certificate, Certificate
of Registration and professional identification card of an Individual CPA, sole
proprietor, partner or staff member as the case maybe who commits any act
that is violative of the Code of Ethics for Professional Accountants, Philippine
Accountancy Act of 2004, these revised implementing rules and regulations,
the circulars, rules, regulations or resolutions of the Board, Commission, SEC
or any other regulatory agency(ies) or any act that does not comply with the
professional, ethical and technical standards required of the practice of public
accountancy, provided, that if the act or acts committed constitute(s) a
criminal offense punishable under RA No. 9298 and its IRR, and/or other
existing penal laws, the party or parties responsible shall be proceeded against
criminally, independent of any action herein provided.
(c) Violations of these revised implementing rules and regulations shall include,
but shall not be limited to the following acts by Individual CPAs, including
staff members thereof, Firms, including the sole proprietors and staff members
thereof and Partnerships of CPAs including the partners and staff members
thereof:
7
iv. Giving any false information, data, statistics, reports or other
statement which tend to mislead, obstruct, or obscure the
registration of a Individual CPA, Firm or Partnership of CPAs under
these revised rules and regulations;
Subject to the approval of the Commission, the Board may, for justifiable reasons,
lift the sanctions imposed on Individual CPAs, and/or any staff member thereof,
Firms including their sole proprietors and/or any staff members thereof or
Partnerships including their partners and/or any staff members thereof; and
8
ANNEX C
iii. To attain and maintain the highest standards and quality in the practice
of his profession;
(c) Nature - The CPE program consists of properly planned and structured
activities, the implementation of which requires the participation of a
determinant group of professionals to meet the requirements of voluntarily
maintaining and improving the professional standards and ethics of the
profession.
(d) Rationale Voluntary compliance with the CPE program is an effective and
credible means of ensuring competence, integrity and global competitiveness of
professionals in order to allow them to continue the practice of their profession.
(a) Creation The Board, upon approval by the PRC, shall create a Council within
thirty (30) days from the effectivity of this resolution. This shall be known as
the PRC CPE Council which shall assist the Board in implementing its CPE
program.
(b) Composition The PRC CPE Council shall be composed of a chairperson and
two (2) members. The chairperson of CPE Council shall be chosen from among
the members of the Board by the members themselves. The first member shall
be the president or, in his/her absence or incapacity, any officer chosen by the
Board of Directors of PICPA. The second member shall be the president or, in
1
his/her absence or incapacity, any officer of the organization of deans or
department heads of schools, colleges or universities offering the degree
requiring licensure examination. In the absence of such organization, the second
member shall be chosen and appointed by the PRC Chairperson from at least
three (3) recommendees of the Board concerned. Said recommendees shall be
well-known academicians.
(c) Terms of Office The term of office of the chairperson of the PRC CPE
Council shall be co-terminus with his/her incumbency in the PRC. The first
member shall have a term of office co-terminus with his/her incumbency as
officer of the PICPA; the second member shall have a term of office co-
terminus with his/her incumbency as officer of the organization of deans or
heads of departments. The chairperson, first member and second member shall
continue to function as such in the PRC CPE Council until the appointment or
election of their respective successors in the Board, PICPA or organization.
(d) Exercise of Powers and Functions The PRC CPE Council shall, upon a
majority vote, exercise powers and functions which shall include but shall not
be limited to the following.
iii. Accept, evaluate and approve applications for exemptions from CPE
requirements.
(e) Functions of the PRC CPE Council Chairperson. The PRC CPE Council
Chairperson shall have the following functions:
iii. To submit minutes of regular and special meetings within 30 days from date
of said meetings.
2
(f) Secretariat The Chairperson of the PRC shall designate or appoint an official
with a rank not lower than Division Chief who shall act as the Secretary of the
PRC CPE Council. The designated official may participate in the deliberations
of the PRC CPE Council but shall not vote. His/her duties and functions shall be
as follows:
i. Ensure that the sessions, meetings or proceedings of the PRC CPE Council
are recorded;
ii. Prepare the minutes of all the meetings and proceedings of the PRC CPE
Council;
iv. Submit to the PRC CPE Council applications for accreditation of aspiring
CPE providers and CPE programs, activities or sources;
vi. Assist the PRC CPE Council by providing relevant statistical data on the
renewal of professional licenses and other related matters.
The Secretary shall exercise general supervision and control over the PRC CPE
Council Staff, who shall be selected by the Chairperson of the PRC from among
the existing personnel of the PRC. The PRC CPE Council Staff shall have, among
others, the following functions:
ii. Keep all records, paper and other documents relative to the evaluation,
approval and accreditation of CPE programs, activities or sources; and
(g) Meetings The PRC CPE Council shall hold regular meetings once a month on
dates to be fixed by said Council. Special meetings may be called by a
Chairperson or upon written request of at least a member of the PRC CPE
Council.
(h) Involvement of PICPA - The PRC CPE Council, if the need arises, may
delegate to the PICPA the processing of the application, keeping of all records
for CPE providers and their respective programs and credit units earned by each
CPA who avail of the CPE programs and related functions. For this purpose,
the PICPA may create a counterpart CPE Council to be known as PICPA CPE
Council and may ask for reimbursement of reasonable processing fees directly
from the applicants apart from the accreditation fee that the such applicants pay
directly to the Commission. The PICPA CPE Council shall keep a separate
books of accounts of its expenses and amounts collected from the applicants and
make a monthly report thereof to the Commission through the Board. Any
excess collection shall be used exclusively as working capital of the PICPA for
the CPE activities.
3
3. CRITERIA FOR ACCREDITATION OF PROVIDERS, PROGRAMS,
ACTIVITIES OR SOURCES; EQUIVALENT CREDIT UNITS; CREDIT
REQUIREMENTS; EXEMPTIONS AND OTHER MATTERS
iv. Shall have instructors, lecturers, trainors and resource speakers with
good moral character, technical competence, facilitation skills and are
holders of current CPA licenses.
i. The scope shall be beyond the basic preparation for admission to the
practice of the profession. The contents shall be relevant/related, but
not limited, to the practice of the profession.
(b) Programs, Activities and Sources for Accreditation and Equivalent Credit
Units - Any provider may submit to the PRC CPE Council programs, activities
or sources to be approved and accredited for CPE units. The provider shall be
notified of the disapproval of his CPE programs, activities or sources without
prior approval and accreditation from the Council.
4
v. Authorship shall refer to the ownership of intellectual property which
includes technical or professional books, instructional materials and the like.
Credits earned must be claimed within one (1) year from the date of
publication.
vi. Self-Directed Learning Package shall refer to learning which uses course
manuals or accredited learning modules. Accredited Learning modules
include self- instructional materials or programs which may be in the form of
printed manual, audio and video cassette tapes, films, computer-assisted
learning (CAL), study kits, learning aids and modules or the use of the
information highway. These should include among others clearly defined
objectives, adequate content and an evaluation component for each module.
xi. CPE Programs, Activities or Sources shall refer to the regime of CPE
which enhance the competence of the CPAs by upgrading and updating
knowledge and skills for the profession as brought about modernization and
scientific and technical advancements in the profession. The scope shall be
beyond the basic preparation for admission to the practice of the profession.
The content shall be related but not limited to the practice of the profession.
5
30 CU ADDITIONAL UPONM DIPLOMA AND TRANSCRIPT OF
COMPLETION OF DEGREE RECORDS
2.2 DOCTORAL DEGREE 2 CU PER ACADEMIC UNIT UNIVERSITY CERTIFICATION
45 CU ADDITIONAL UPON DIPLOMA DN TRANSRIPT OF
COMPLETION OF DEGREE RECORDS
3 SELF-DIRECTED LEARNING
PACKAGE
3.1 MODULE 10 CU PER COMPLETE SET COPY OF DULY-ACCOMPLISHED
OF MODULE MODULE AND EVALUATION
3.2 TECHNICAL PAPER/ 1 CU/PROFESSIONAL/ COPY OF DULY-ACCOMPLISHED
PROFESSIONAL TECHNICAL ARTICLE ARTICLE AND EVALUATION
JOURNAL ARTICLE
4 AUTHORSHIP
4.1 RESEARCH/INNOVATIVE 10 CREDIT UNITS DULY CERTIFIFED/PUBLISHED
PROGRAMS / CREATIVE TECHNICAL REPORT/PAPER
PROJECTS
4.2 BOOK/MONOGRAPH (25-50 Pp) (51-100 Pp) (100 OR PUBLISHED BOOK WITH PROOF
MORE Pp.) OF COPYRIGHT
SINGLE AUTHOR 20 CU 30 CU 40 CU
10 CU 20 CU 30 CU
2 AUTHORS
5 CU 10 CU 20 CU
3 OR MORE
4.3 EDITOR OF THE CU OF PUBLISHED BOOK WITH PROOF
AUTHORSHIP CATEGORY OF AUTHORSHIP
4.4 ARTICLE (1-3 Pp) (4-6 Pp) (7 OR MORE Pp) PROOF OF PUBLICATION OF
SINGLE AUTHOR 4 CU 6 CU 8 CU ARTICLE
2 AUTHORS 3 CU 4 CU 6 CU
2 CU 3 CU 4 CU
3 OR MORE
The total CPE credit units for registered accounting professionals shall be sixty (60)
credit units for three (3) years, provided that a minimum of fifteen (15) credit units shall
be earned in each year. Any excess credit units in one year may be carried over to the
succeeding years within the three- year period. Excess credit units earned shall not be
carried over to the next three-year period except credit units earned for doctoral and
masters degrees.
One credit hour of CPE program, activity or source shall be equivalent to one (1)
credit unit.
6. Procedures
6
The PICPA CPE Council shall observe the following procedures for the
accreditation of CPE providers and CPE programs, activities, or sources:
ii. An application shall include, but shall not limited to the following
information:
- Current employment.
ii. An application shall include, but shall not be limited to the following
information and documents:
- List of officers with their PRC License Numbers and expiry date if
officer is a member of a regulated profession.
All applicants shall submit to the PICPA CPE Council the following:
ii. Criteria for selecting and evaluating speakers, resource persons or lecturers.
7
(b) Procedures for Accreditation of a CPE Program, Activity or Source
ii. The application for accreditation of a CPE Program, activity or source shall
include the following information and documents:
- Objectives.
iii. If the PRC CPE Council concerned finds the CPE program, activity or
source to be relevant to the profession and to be in accordance with these
guidelines, said PRC CPE Council shall issue a certificate of accreditation
within thirty (30) days from receipt of the application.
8
iii. Accreditation number and date of issuance of accreditation.
iv. Certified list of participants indicating names and PRC professional license
identification cards and expiry dates, resource speakers, lecturers, discussion
leaders, panelists, moderators or facilitators who took part or participated in
the CPE program, activity or source.
v. Date and time of start and completion of the holding of the CPE program,
activity or source.
- Employment history
Position
Name of employer
Address of employer
9
i. Submit an application for temporary exemption, to include the following
data:
- If employed:
Position
Name of employer
Address of employer,
Certificate of employment
8. Sanctions
i. Is found not to comply with the implementing rules and regulations for
CPE, or
10
iii. Has submitted false reports, or
iv. Has committed such other acts that the PRC CPE Council finds to be in
violation of the intent of the program.
Any employee of the PRC who causes, abets or helps in the renewal of the
license of a professional without complying with CPE requirements shall be
considered to have violated office and /or civil service rules and regulations
and shall be proceeded against administratively, and, if found guilty, shall be
meted out the penalties provided for by the said laws and rules and
regulations.
11