Code of Ethics - Profession Is A
Code of Ethics - Profession Is A
Code of Ethics - Profession Is A
b) Professional Authority – gives professional judgment on II. Professional Skills and General Education
what is good and right for the client using professional 1. Professional Skills
expertise a) Intellectual – abstract logical thinking & critical analysis
b) Technical & Functional – decision modeling & risk analysis
c) Community Sanction – admission to CPA profession is c) Personal – self-management
controlled by authorities – obtaining license. d) Interpersonal & Communication – being team player
CPAs are responsible to their actions
2. General Education – encourage lifelong learning
d) Regulations Code – Rules of Professional Conduct/Code of a) Human Behavior c) Art Appreciation
Ethics are established b) History d) Making value judgment
profession is granted powers of monopoly
III. Professional Values, Ethics, and Attitude
e) Culture – status affects one’s behavior in the society 1. Values and Attitudes – commitment to
professional culture developed by formal (Code of a) Public Interest and Social Responsibility
Ethics) and informal rules b) Continual Improvement
c) Reliability, Responsibility, Timeliness, & Respect
Code of Ethics - Profession is a:
d) Laws & Regulation
a) mastery of intellectual skill
b) adherence of members to common code of values 2. Professional Ethics
c) acceptance of duty in society a) Nature of Ethics
b) Difference with detailed rules
Professional Accountant – an individual who holds license
c) Compliance with fundamental ethical principles
from BOA
d) Professional behavior and compliance with standards
a) PA in Public Practice – irrespective of functional
e) Concepts of independence, skepticism, accountability, and
accountant in classification in a firm; audit, tax, MAS
public expectations
b) PA in Business – executive or non-executive f) Ethics and profession
capacity; commerce & industry, education, government g) Ethics and law
h) Ethics in relation to business and good governance
Scope of Practice i) Ethics and the individual PA
a) Public Accountancy – person holding knowledge science of j) Consequences of unethical behavior
accounting and qualified person to render professional B) CPALE Passer – RA 9298, Art 11, Sec 13-18
services as CPA on a fee basis
1) Audit of financial transactions and accounting records; I. Qualifications
2) Preparation, signing, or certification for financial schedules; a) Filipino
3) Exhibits reports used for publication or to be filed in court b) Good Moral Character
or gov’t agency; c) BSA degree holder
4) Design, installation, revision of accounting system; d) Never convicted of any criminal offense – moral turpitude
5) Preparation of ITR and representing clients on tax matters.
II. Scope of Exam – PRC BOA Resolution No. 262, Series of a) IT Systems for FAR including current relevant
2015; Published: 02/22/2016; Effective: 03/09/2016 issues
a) FAR b) AFAR c) MAS
b) frameworks for evaluating controls and assessing
d) Taxation b) Auditing c) RFBT
risks
III. Rating
II. Practical Experiences
a) GWA of at least 75%; no grades lower than 65% per subject
1. Complete long & intensive period of practical experience in
– PASSED
auditing area before being an audit professional
b) GWA of at least 75% and majority of subjects; grades lower 2. Practical experience contributes to competency; period of
than 65% in minority of subjects – CONDITIONAL experience permits them to:
candidate shall take failed subjects within 2 years a) apply knowledge and skills
candidate shall obtain at least 75% in the b) develop and demonstrate required competence
conditioned subject
Competency Requirements – Business
c) GWA lower than 65%; grades lower than 65% - FAILED a) Intellectual
b) Technical & Functional
C) Other Legal and Regulatory Requirement
c) Personal
I. Oath – CPALE passer shall take oath of profession d) Interpersonal & Communication
II. Issuance of Certificates of Registration and Professional ID e) organizational and business management skills
1. CoR – bears signature of commission and Board members
5 Areas that PA’s mindset needs to embrace:
2. Professional ID – bears registration number, date of ID
a) Professionalism and Ethical Behavior – upholding Code of
issuance and expiry, signed by commission chairperson;
Ethics
renewable every 3 years
b) Professional Judgment – quick and intuitive decision
III. Indication of CoR, Prof ID, Professional Tax Receipt
making with evidence-based decisions
always indicated in every document CPA signs
c) Organizational & Environmental Awareness – performance
Developing Capabilities and Competence considers economic, environmental & social; supporting
further education and development needs of management
to cope with rapidly changing environment; CPAs must be d) Investor and Wider Stakeholder Focus – lead in managing
competent to be recognized relationship with investors and funders
a) Advance Professional Education @ academic institutions e) Change, Uncertainty, Complexity – adapt & apply
b) OJT and Experience programs professional skills to ambiguous information
c) Off the job training
Changes in Accounting which makes it Globalized
d) CPD courses and activities
a) Global Harmonization of Accounting Standards – PFRS
PA in Public Practice – bound by accounting standards as adopted IFRS for uniform accounting – singles set of HQ
public interest is concerned standards that increase market efficiency and reduce cost of
PA in Business – management, accounting based business capital
analysis b) Expanded Accountability – includes public reports for
internal purposes
Competency Requirements – Public Practice c) More detailed reporting – demand for more current info
I. Knowledge Content d) Increased Risk Reporting – demand for risk based info
1. Audit of Historical Financial Information @ advanced level e) Global Audit Standards – harmonize auditing standards due
a) best practice in audit including current relevant to public’s expectation:
issues 1. find fraud
b) International Standards on Auditing and 2. enforce accounting principles by IASB
International Auditing Practice Statements (IAPS) 3. neutral to users
c) any other applicable laws 4. cost effective audits
2. FAR @ advanced level
a) FAR process and practices including current CPA Horizons 2025: A Road Map to the Future
relevant issues conducted by AICPA, 2011
b) IFRS released and published on Journal of Accountancy, Dec 2011
c) any other applicable laws a) Core Purpose: “Making sense of changing and complex
3. IT world”
b) Core Values: substantially unchanged
c) Core Competencies: reflected 21st century
d) Core Service: due to diversity – no longer representative
of profession