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Auditing Theory Notes

RA 9298 - Philippine Accountancy Act of 2004


Objectives: 1. Education (regulate)
2. Examination (rules)
3. Accountancy Practice (regulate)
Scope of Practice:
1. Public
2. Commerce and Industry
3. Education / Academe
4. Government

BOA
1 Chairman and 6 Members
Among themselves, elect V-Chairman (1 year term)
Qualifications:
1. Natural born citizen and resident
2. With 10 years work experience
3. Good moral, not CONVICTED of any moral turpitude
4. No pecuniary interest (school or review centers)
Term of Office:
Chairman and members = 3-year term
Allowed years of service = 12
1 complete term + 1 complete term = 6 years
1 year lapse before reappointment
1 complete term + 1 complete term = 6 years
* appointment to fill up unexpired term is not conisdered a complete term.
Secretary- designated by PRC
Compensation and Allowances:
Provided for under GAA (General Appropriations Act)
Powers and Functions:
1. Rules (prescribe)
2. Practice of Accountancy (supervise licensure)
3. Administer Oaths
4. Certificate of Registration (issue, suspend, revoke or reinstate)
5. Seal (adopt)
6. Code of Ethics (adopt)
7. Accounting and Auditing standards (adopt)
8. Review or Oversight of FS Audits
9. Investigate Violations and issue subpoena
10. Issue cease order to associations
11. Punish for contempt of BOA
12. Syllabi (adopt)
13. CHED (coordination)
14. other powers to achieve objectives
* Policies, resolution etc. by BOA are subject to REVIEW and APPROVAL by PRC
* EXCEPTION: decisions, resolutions etc. in administrative cases shall be subject
to review ONLY if on APPEAL.
ALL records of BOA shall be under administrative supervisions and custody of PRC
Suspension and Removal of member
Only the president can remove a member, BUT upon recommendation of PRC,
ONLY after the the member defends himself in an investigation conducted by PRC.
Grounds:
1. Neglect of duty or incompetence
2. Violation or tolerance of violation of this ACT
3. FINAL judgment of moral turpitude crimes
4. Manipulation, disclosure of confidential info of Exam before the exam
and tampering of grades
Annual Report
Submit at the close of calendar year
to the president, through PRC
Details: accomplishments and recommendations
Article III
CPA Examinations= Requirement
Qualifications:
1. Filipino Citizen
2. good moral
3. BSA degree holder of an institution duly recognized by CHED
4. not CONVICTED of any moral turpitude crimes
Scope of Examination:
a) Theory of Accounts
b) Business Law and Taxation
c) Management Services
d) Auditing Theory
e) Auditing Problems
f) Practical Accounting Problems 1
g) Practical Accounting Problems 2
Ratings:
Passed
Weighted General Average - 75%
No grades lower than - 65%
Conditional *should take the remaning exam
Majority (4) - ≥ 75% within 2 years from the previous exam
Weighted General Average - ≤ 75%
Each Subject - ≤ 65%
Failed
Weighted General Average - < 75%
Each Subject - < 65%
* If failed 2 complete exams cannot take another exam
UNLESS enrolled and completed 24 units of subjects
Report of Ratings
Submit ratings to PRC within 10 calendar days from exam (unless extended)
PRC will mail results to examinee.
Oath
Authorized:
Any member of BOA
Any authorized government official by PRC
Any authorized person under the law
COR and PIC
Certificate of Registration
Contents:
Sign of Chairman of PRC
Sign of Chairman and members of BOA
Official seal of PRC and BOA
Professional Identification Card
Contents:
Registration Number
Date of Issuance
Expiry Date
Sign of Chairman of PRC
*Renewable every 3 years
Roster of CPA
Contents:
Name and place of business
Prepared and updated by BOA
When CPA issues or signs
Should indicate:
Registration Number
Date of Issuance
Validity
PTR number ( Professional Tax Receipt)
Revocation or suspension and Reinstatement
Sec. 23 lays down the grounds for suspension and revocation
Reinstatement may be done after 2 years from revocation upon application
Article IV
No one is allowed to use CPA if person is not licensed or accredited by BOA
Limitation in Accountancy Practice
Certificate of Accreditation for practice of public accountancy (sole or not)
allowed only for those with 3 years of meaningful
experience
Woking Papers
should be in custody of the CPA
EXC: subpoena or agreed otherwise
sdered a complete term.

d APPROVAL by PRC

on conducted by PRC.
f Exam before the exam