Overview of RA 9298 and its IRR financial statements and coordination

with external audit.

The Republic Act No. 9298, including its
 Not result in deprivation of incumbents.
implementing rules and regulations, consists of:
c. Practice in Education/Academe
 five Articles (Rules);  Dean or Chair of Accountancy shall be a
 with 44 Sections; CPA.
 was enacted into law on May 13, 2004. d. Practice in the Government

Rule I – Title, Declaration of Policy, Objective and Rule II–Professional Regulatory Board of
scope of Practice Accountancy (PRBOA or the “Board”)

Title–the “Philippine Accountancy Act of 2004” The PRBOA and its Composition

Declaration of Policy  Composed of a chairman and six members

appointed by the President from a list of
The State recognizes the importance of accountants three (3) recommendees for each position
in nation-building and development. Hence, it shall and ranked by the Commission (PRC), from
develop and nurture competent, virtuous, a list of five (5) nominees for each position
productive and well-rounded professional submitted by the Accredited Professional
accountants whose standards of practice and Organization (APO).
service shall be excellent, qualitative, world-class  Elect a vice-chairman from among its
and globally competitive through: members for a term of one (1) year
 inviolable, honest, effective, and credible  The four sectors in the practice of
licensure examinations; and accountancy shall as much as possible be
 regulatory measures, programs and equitably represented in the Board
activities that foster their professional The APO shall submit its nominations with complete
growth and development. documentation to the Commission not later than 60
Objectives days prior to the expiry of the term of an
incumbent chairman or member with adequate
This Act shall provide for and govern: documentation to show the qualification and
 The standardization and regulation of primary field of professional activity of the nominee
accounting education; If the APO fails to submit its own nominee(s), the
 The examination for registration of certified Commission in consultation with the Board shall
public accountants; and submit to the President a list of three nominees for
 The supervision, control, and regulation of each vacant position.
the practice of accountancy in the
Philippines. Qualifications of Members of the PRBOA

Scope of Practice To become a member of the PRBOA, a person must

meet the following qualifications:
The practice of Accountancy (or “sector”) includes:
1. A natural-born citizen and resident of the
a. Practice of Public Accountancy. Philippines
b. Practice in Commerce and Industry 2. A duly registered CPA with at least 10 years
 Only for a CPA for business with paid-up of work experience in any scope of practice
capital of at least P5.0M and/or annual of accountancy
revenue of at least P10.0 M for functions
involving supervision, preparation of
 3. Of good moral character and must not have measures, including promulgation of
been convicted of crimes involving moral accounting and auditing standards, rules
turpitude and regulations and best practices;
4. Must not have any pecuniary interest,  To conduct an oversight into the quality of
directly or indirectly, in any institution (SCU) audits of financial statements;
conferring an academic degree or CPA  To investigate violations of this act and the
review schools rules and regulations;
5. Must not be a Director or Officer of the  To make such investigations to determine
APO at the time of his appointment whether any person has violated RA 9298;
 To issue a cease or desist order to any
Term of Office
person, association, partnership or
 Three (3) years for the chairman and corporation engaged in violation of any
members. provision of RA No. 9298;
 Any vacancy occurring within the term shall  To punish for contempt of the Board, both
be filled up for the unexpired portion of the direct and indirect, in accordance with the
term only (and is not considered a complete pertinent provisions of and penalties
term). prescribed by the Rules of Court;
 No person who has served two successive  To prepare, adopt, issue or amend the
complete terms shall be eligible for syllabi of the subjects for examinations;
reappointment until the lapse of one year.  To ensure that schools and other
 No person shall serve on the Board for more educational institutions comply with the
than 12 years. policies, standards and requirements of the
course prescribed by CHED; and
Compensation and Allowances of the Board
 To exercise such other powers deemed
Comparable to that being received by the Chairman necessary
and members of existing regulatory boards under
Note that the Board’s decisions are subject to
the Commission as provided for in the General
review and approval of the Commission, except for
Appropriations Act.
administrative cases.
Powers and Functions of the Board
Accounting and Auditing Standard Setting Council
The Board acts as a collegial body and shall exercise
The Commission upon the recommendation of the
the following powers, functions and responsibilities:
Board shall within 90 days from the effectivity of
 To prescribe and adopt the rules and this IRR, create an accounting standard-setting
regulations necessary for carrying out the body, the “FRSC”, and an auditing standard-setting
provisions of RA 9298; body, the “AASC.”
 To supervise the registration, licensure and
The Chairman and the members of the FRSC and
practice of accountancy in the Philippines;
AASC shall have a term of three years renewable
 To administer oaths in connection with the for another term. Any member of any existing
administration of this Act; accounting and auditing standard setting council
 To issue, suspend, revoke, or reinstate the shall not be disqualified from being appointed.
Certificate of Registration for the practice of
the accountancy profession; FRSC AASC
 To adopt an official seal of the Board; Chairman (FRSC: Any sector;
1 1
 To prescribe and/or adopt a Code of Ethics AASC: Public Accountancy)
for the practice of accountancy; Board of Accountancy 1 1
 To monitor the conditions affecting the Securities and Exchange
1 1
Commission
practice of accountancy and adopt
 Bangko Sentral ng Pilipinas 1 1 Administrative Supervisions of the Board, Custodian
Commission on Audit 1 1 of its Records, Secretariat and Support Services
Bureau of Internal Revenue 1 1
A major organization The Board shall be under the administrative
composed of preparers and supervision of the Commission.
1
users of financial statements All records of the Board, including applications for
(FINEX)
examination, examination questions, answer sheets,
An association or
and other records and documents pertaining to the
organization of CPAs inactive
1 CPA licensure examinations, and administrative and
public practice of
accountancy other investigative cases conducted by the Board
APO (PICPA): shall be under the custody of the Commission.
Public Practice (AASC: Small, The Commission shall designate the Secretary of the
2 9
medium & big prac.) Board and shall provide the secretariat and other
Commerce and Industry 2 1
support services to implement the provisions of RA
Academe/Education 2 1
No. 9298.
Government 2 1
Total 15 18 Grounds for Suspension or Removal of Members of
the Board
The objectives, approach and working procedures in The President, upon the recommendation of the
adopting AASC pronouncements are set out in the Commission, after due process, may suspend or
Preface to Philippine Standards on Quality Control, remove any member on the following grounds:
Auditing, Review, Other Assurance and Related
Services  Neglect of duty or incompetence;
 Violation or tolerance of any violation of
During the 17 March 2022 meeting, the Board this Act and its IRR or the CPA’s Code of
unanimously agreed that the membership in the Ethics and the professional standards of
FRSC be increased from fifteen (15) to sixteen (16) practice for CPAs;
to include a representative to include a  Final judgment of crimes involving moral
representative from the Insurance Commission turpitude; and
Education Technical Council (ETC)  Manipulation or rigging of the CPA’s
licensure examination results, disclosure of
The Commission, upon the recommendation of the secret and confidential information in the
Board, shall within 60 days from the effectivity of examination questions prior to the conduct
this IRR create an ETC. of the said examination or tampering of
grades.
The term of office of the chairman and members of
ETC is three (3) years, renewable for another term. Annual Report
ETC The Board shall, at the close of each calendar year,
Chairman 1 submit an annual report to the President of the
Board of Accountancy 1 Philippines through the Commission giving a
APO (PICPA): detailed account of its proceedings and
Public Practice (AASC: Small, medium 1 accomplishments during the year and making
& big prac.) recommendations for the adoption of measures
Commerce and Industry 1 that will upgrade and improve the conditions
Academe/Education 2 affecting the practice of accountancy in the
Government 1 Philippines.
Total 7
Rule III - Examination, Registration and Licensure
The Certified Public Accountant Examinations conditional credit for the subjects passed
(remaining subjects to be taken within two years).
All applicants for registration for the practice of
accountancy shall be required to undergo a If the candidate fails to obtain at least a general
licensure examination to be given by the Board in average of 75% and a rating of at least 65% in each
such places and dates as the Commission may of the subjects reexamined, he/she shall be
designate. considered as failed in the entire examination.

The places/venues and dates of examinations shall Report of Ratings

be included in the Schedule of Professional
The Board shall submit to the Commission the
Licensure Examinations for the year issued by the
ratings obtained by each candidate within ten (10)
Commission.
calendar days after the examination, unless
Qualifications of Applicants for Examinations extended for just cause.

Any person applying for examination shall establish Upon the release of the results of the examination,
the following requisites to the satisfaction of the the Commission shall send by mailing the rating
Board that he/she: received by each examinee at his/her given address
using the mailing envelope submitted during the
 Filipino citizen
examination. Provided, that the report of rating may
 Of good moral character
be distributed to the successful examinees during
 Holder of the degree of BSA conferred by a their mass oath taking as new registered CPAs.
school, college, academy or institute duly
recognized and/or accredited by the CHED Failing Candidates to Take Refresher Course
or other authorized government offices
Any candidate who fails in two complete CPA Board
 Has not been convicted of any criminal
Examinations shall be disqualified from taking
offense involving moral turpitude
another set of examinations unless he/she submits
Scope of Examination evidence to the satisfaction of the Board that
he/she enrolled in and completed at least 24 units
The licensure examination for CPAs shall cover the of subjects given in the licensure examination.
following subjects:
The examination in which the candidate was
 Theory of Accounts conditioned together with the removal examination
 Business Law and Taxation on the subject in which he/she failed shall be
 Management Services counted as one complete examination.
 Auditing Theory
 Auditing Problems Oath
 Practical Accounting Problems I All successful candidates in the examination shall be
 Practical Accounting Problems II required to take an oath of profession before any
The Board, subject to the approval of the member of the Board or before any government
Commission, may change any of the subjects and official authorized by the Commission or any person
their syllabi, and add new ones, not be more often authorized by law to administer oaths upon
than every three years presentation of proof of his/her qualification, prior
to entering upon the practice of the profession.
Rating in the Licensure Examination
An oath shall also be required for CPAs admitted in
General average of 75%, with no grades lower than the practice of accountancy without examination
65% in any subject. under reciprocity or other international agreements.
If a candidate obtains 75% and above in at least a Issuance of Certificate of Registration (CoR) and
majority of subjects, he/she shall receive a Professional Identification Card (PIC)
A CoR shall be issued to examinees who pass the Registration shall not be refused and a name shall
licensure examination, or are admitted without not be removed from the roster of CPAs on
examination under reciprocity subject to payment conviction for a political offense or for an offense
of fees prescribed by the Commission. which shall not disqualify a person from practicing
accountancy.
The CoR shall bear the signature of the Chairperson
of the Commission and the Chairman and Members Suspension and Revocation of CoR and PIC and
of the Board, stamped with the official seal of the Cancellation of Special Permit
Commission and of the Board.
The Board shall have the power to suspend or
A PIC bearing the registration number, date of revoke the practitioner’s CoR and PIC or suspend
issuance, expiry date, duly signed by the him/her from the practice of his/her profession or
chairperson of the Commission. Provided, that the cancel his/her special permit for any of the causes
registrant has paid the prescribed fee for the annual or grounds
registration (reissuance or renewal) for three years.
 convicted by a court of competent
Roster of Certified Public Accountants jurisdiction of a criminal offense involving
moral turpitude; or
A roster showing the names and place of business
 guilty of immoral and dishonorable conduct;
of all registered CPAs shall be prepared and updated
or of unsound mind; or
by the Board, and copies thereof shall be made
 has falsely sworn or misrepresented
available to any party as may be deemed necessary.
himself/herself in his/her application for
The preparation of this roster may be delegate to examination; or
the APO, and the Board and/or the Commission may  unprofessional or unethical conduct,
adopt the APO’s report as it may deem fit; malpractice, violation of any of the
provisions of RA No. 9298, and its IRR, the
Posting of the roster at the internet shall be deemed
CPA’s Code of Ethics and professional
compliance with this requirement.
standards of practice for CPAs.
Indication of CoR, PIC and Professional Tax Receipt
Suspension/revocation of the CoR and PIC shall not
The CPA shall be required to indicate the numbers prejudice prosecution for criminal liabilities and
of his/her CoR and PIC with its date of issuance and meted the penalties under the Revised Penal Code.
the duration of validity, including the PTR No. on the
Reinstatement, Reissuance and Replacement of
documents he/she signs, uses or issues in
Revoked or Lost Certificates
connection with the practice of his/her profession.
The Board may, after the expiration of two years
Refusal to Issue CoR and PIC
from the date of revocation of a CoR and upon
The Board shall not register and issue a CoR and PIC application, and after being convinced of applicant’s
to any successful examinee (with due process): remorse and rehabilitation, reinstate the validity of
a revoked certificate of registration and may exempt
 convicted by a court of competent the applicant from taking another examination.
jurisdiction of a criminal offense involving
moral turpitude; or A new CoR to replace lost, destroyed, or mutilated
 guilty of immoral and dishonorable conduct; Certificate may be issued, subject to the rules
or of unsound mind; or promulgated by the Board and the Commission,
 has falsely sworn or misrepresented upon payment of the required fees
himself/herself in his/her application for Rule IV – Practice of Accountancy
examination.
Prohibition in the Practice of Accountancy
No person shall practice accountancy in this country, these subjects shall not be less than three school
or use the title “Certified Public Accountant”, or use years; or
the abbreviated title “CPA” or display or use any
Government - significant involvement in general
title, sign, card, advertisement, or other device to
accounting, budgeting, tax administration, internal
indicate such person practices or offers to practice
auditing, liaison with the Commission on Audit or
accountancy, or is a certified public accountant,
any other related functions
unless such person shall have received from the
Board a CoR and be issued a PIC or a valid Public practice - At least one year as audit assistant
temporary/special permit duly issued to him/her by and at least two years as auditor in charge of audit
the Board and the Commission. engagement covering full audit functions of
significant clients.
Vested Rights: CPAs Registered When this Law is
Passed Ownership of Working Papers
All CPAs registered at the time this law takes effect Confidential and privileged and remain the property
shall automatically be registered under the of such CPA in the absence of a written agreement
provisions hereof, subject however, to the between the CPA and the client, to the contrary
provisions herein set forth as to future unless such documents are required to be produced
requirements. through subpoena issued by any court, tribunal, or
government regulatory or administrative body in
Certificates of Registration held by such persons in
accordance with Philippine laws.
good standing shall have the same force and effect
as though issued after the passage of this Act. Accredited Professional Organization
Limitation of the Practice of Public Accountancy  Known as the PICPA
 Registered with the SEC as a non-profit
Single practitioners and partners of partnership
corporation and recognized by the Board
organized for the practice of public accountancy
and the Commission.  Recognized by the
shall be registered CPAs in the Philippines;
Commission as the APO on 10/2/1975 per
Certificate of Accreditation shall be issued to CPAs in Acc. No. 15. Certificate of Accreditation
public practice after a minimum of three years (CoA) once every three years.
meaningful experience;  With 15 national directors apportioned
according to sectors in the four geographic
Partnerships may be carried as a general
areas (e.g. NCR, Luzon, Visayas and
partnership (GP) or a limited liability partnership
Mindanao) based on the ratio of latest
(LLP).
available number of members in good
The SEC shall not register any corporation organized standing from those areas;
for the practice of public accountancy.
The PICPA’s CoA shall be cancelled or suspended by
Meaningful Experience the Commission upon recommendation by the
Board after due process if:
Commerce and industry - Significant involvement in
general accounting, budgeting, tax administration,  It has ceased to possess any of the
internal auditing, liaison with external auditors, qualifications for accreditation.
representing his/her employer before gov’t agencies  It no longer serves the best interest of the
on tax and matters related to accounting or any CPAs.
other related functions; or  It did not achieve its plan to enlist into
active membership within three years,
Academe/Education - teaching for at least three
majority of the CPAs in the practice of
trimesters or two semesters accounting related
accountancy.
subjects. The accumulated teaching experience on
  It has committed acts inimical to its  Appointed by the Commission upon the
members and to the profession.  It has not recommendation of the Board in
renewed its CoA after a lapse of an coordination with the APO
unreasonable period.  A term of three years renewable for another
 It has not submitted the required audited term
FSs.  Recommends to the Board the revocation of
the Certificate of Registration and the
Accreditation to Practice Public Accountancy
professional identification card
Within 90 days from effective date of IRR, Individual
QRC
CPAs, firms and partnerships of CPAs engaged in the
Chairman 1
practice of public accountancy, including the
Board of Accountancy 1
partners and staff members thereof, shall register
APO (PICPA)
with the Commission and the Board. Public Practice (AASC: Small, medium 2
The registration shall be valid for a period of three & big prac.)
years and may be renewed every three years on or Commerce and Industry 1
before September 30 on the year of expiry. The Academe/Education 1
registration of applicants approved during any Government 1
Total 7
month of the year shall expire on December 31 on
the third year following its approval.
Continuing Professional Education (CPE) Program
Name of the Individual CPA, Firm or Partnership
Continuing professional education (CPE) refers to
Type Basia Example
the inculcation, assimilation and acquisition of
Individual CPA BOA and PRC Juan dela Cruz,
Registered CPA knowledge, skills, proficiency and ethical and moral
name values, after the initial registration of a professional
Firms DTI Registered Juan dela Cruz that raise and enhance the professional’s technical
name and Associates skills and competence.
Partnerships SEC Registered Cruz, Isidro,
The total CPE credit units for registered accounting
name Martin, and
professionals shall be 60 credit units for three years,
Company
provided that a minimum of 15 credit units shall be
Not allowed firm names include:
earned in each year.
 fictitious name;
Any excess credit units in one year may be carried
 indicates specialization; or
over to the succeeding years within the three-year
 is misleading as to the type of organization
period. Excess credit units earned shall not be
(proprietorship or partnership).
carried over to the next three-year period except
A partner surviving the death or withdrawal of all credit units earned for doctoral and master’s
the other partners in a Partnership may continue to degrees.
practice under the Partnership name for a period of
The Board, upon approval by the PRC, shall create a
not more than two years after becoming a sole
Council within thirty (30) days from the effectivity of
proprietor.
this resolution.
Quality Review Committee
PRC CPE Council
 Conducts quality review on applicants for Chairman from BOA 1
registration to practice public accountancy 1st Member-Pres/Officer of PICPA 1
2nd Member – Academe/Education 1
Total 3
 Tax Receipt (PTR) number, date/place of payment
when filed with government authorities or when
Common sources of CPE Credit Units
used professionally.
Seminar/Convention:
Circular in form with a smaller circle within and in
Participant 1 CU per hr
the upper portion of the space between the circles
Resource Speaker 5 CU per hr
shall be engraved the name of the individual CPA,
Panelist/Reactor 3 CU per hr
firm or partnership as the case maybe, the lower
Facilitator/moderator 2 CU per hr
portion thereof shall be engraved the CPA
Master’s Degree 2 CU per academic
unit, an additional 30 Registration Number of the individual CPA,
CU upon completion proprietor of the firm and the signing partner of the
Doctoral 2 CU per academic partnership and in the middle of the smaller circle
unit, an additional 45 shall be engraved the letters “CPA”.
CU upon completion
Affixing the CPA’s seal and signature is an indication
Inventions 10-30 CU per invention
of compliance by the CPA of the requisite
accounting and auditing standards and rules.
Exemption from CPE Requirement
Foreign Reciprocity
a. Permanent Exemption - Upon reaching the age
Subjects or citizens of foreign countries may be
of 65 years old.
allowed to practice Accountancy in the Philippines
b. Temporary Exemption - Working or practicing
in accordance with the provisions of existing laws,
his/her profession or furthering his/her studies
international treaty obligations including mutual
abroad shall be temporarily exempted during
recognition agreements entered into by the
the period of his/her stay abroad, provided that
Philippine government with other countries.
he/she has been out of the country for at least
two years immediately prior to the date of Provided, he files an application and by submitting
renewal. the necessary documents provided for in this
sections.
Sanctions applicable to CPAs
Coverage of Temporary/Special Permits
Unless otherwise exempted, registered CPAs in the
practice of accountancy who have not completed May be issued by the Board subject to the approval
the CPE requirements provided herein shall not be of the Commission to the following persons:
allowed to renew their professional licenses.
 A foreign CPA called for consultation or for a
Those who failed to renew their professional specific purpose essential for the
licenses for a period of five continuous years from development of the country. His/her
initial registration, or from last renewal date shall be practice shall be limited only for the
declared delinquent and shall, after due notice, particular work that he/she is being
through the website and publication in the engaged and there is no Filipino CPA
newsletters of PICPA or any newspaper of general qualified;
circulation, be dropped from the roster of CPAs.  A foreign CPA engaged as professor, lecturer
or critic in fields essential to accountancy
Seal and Use of Seal
education and is confined to teaching only;
All registered CPAs shall obtain and use a seal of a and
design prescribed by the Board bearing the  A foreign CPA who is an internationally
registrant’s name, registration number and title. recognized or with specialization in any
branch of of accountancy and his/her
The auditor’s reports shall be stamped with said
seal, indicating therein his/her current Professional
 service is essential for the advancement of The chairperson of the Commission shall
the accountancy. immediately include in the Commission’s programs
the implementation of RA No. 9298 and this IRR the
Rule V– Penal and Final Provisions
funding of which shall be included in the annual
Penal Provision General Appropriations Act.

Any person who shall violate any of the provisions Provided, That the amount necessary to carry out
of RANo. 9298 or this IRR as promulgated by the the initial implementation of RA No. 9298 shall be
Board subject to the approval of the Commission, charged against the current year’s appropriation of
shall, upon conviction, be punished by: the Commission. Thereafter, sums as may be
necessary for the continued implementation of RA
 a fine of not less than P50,000.00 or No. 9298 shall be included in the succeeding
 by imprisonment for a period not exceeding General Appropriations Act (GAA).
two years or
 both. Transitory Provision

Implementing Rules and Regulations The incumbent chairman and members of the Board
shall continue to serve in their respective positions
Within ninety (90) days after the effectivity of RA without the need of new appointments, not be
No.9298, the Board, subject to the approval of the disqualified for appointment.
Commission and in coordination with the APO, shall
adopt and promulgate such rules and regulations to All graduates with a Bachelor’s Degree, major in
carry out the provisions of RA No. 9298 and which Accounting shall be allowed to take the CPA
shall be effective fifteen (15) days following their Licensure Examination within two (2) years from the
publication in the Official Gazette or in any major effectivity of RANo. 9298 (or until May, 2006).
daily newspaper of general circulation.
Separability Clause
Interpretation of RA No. 9298 and its IRR
If any clause, provision, paragraph or part of RA No.
Nothing in RA No. 9298 and this Implementing Rules 9298and this Implementing Rules and Regulations
and Regulations shall be construed to effect or shall be declared unconstitutional or invalid, such
prevent the practice of any other legally recognized judgment shall not affect, invalidate or impair any
profession. other part hereof, but shall be merely confined to
Enforcement of RA No. 9298 and its IRR the clause, provision, paragraph or part directly
involved in the controversy in which such judgment
Primary duty of the Commission and the Board to has been rendered.
effectively enforce RA No. 9298 and its IRR.
Repealing Clause
All duly constituted law enforcement agencies and
officers of the government or any political Any rule and regulation or resolution or part/s
subdivisions shall render assistance in enforcing the thereof inconsistent with the provisions of this
provisions of RA No. 9298 and this IRR and to Implementing Rules and Regulations are hereby
prosecute any person in violation. repealed or modified accordingly.

The Secretary of Justice or his duly designated Effectivity

representative shall act as legal adviser to the RA 9298 shall take effect after fifteen (15) days
Commission and the Board and shall render legal following its publication in the Official Gazette or in
assistance as may be necessary in carrying out the any major daily newspaper of general circulation.
provisions of RA No. 9298 and this IRR.
IRR was promulgated in September 2004 (within 90
Funding Provision days of the effective date of RA 9298) and took
effect after fifteen (15) days following its publication
in the Official Gazette or in any major daily
newspaper of general circulation.