TILITILE, Jemaica B.

Synthesis
4AC02 September 24, 2019

SYNTHESIS

A profession is a career for someone who accepts the duty to the society as a whole or
where their paramount concern is the public, who becomes competent in their chosen sector
through training and education, maintaining their skills through continuing professional
development (CPD) and adherence to a common code of values and conducts established by its
administrating body. The Accountancy profession meets all these characteristics and not only
that, but the Accountancy profession has been considered as such for long years now. That’s why
it is only expected for the said profession to also evolve in years that passes.

The Accountancy profession has standard setting bodies that publicize accounting and
auditing standards that are used by Certified Public Accountants in the execution of their
services. These standards are there to be their guidance and almost a law by the CPA’s. And in
order to formalize these standards, standard setting bodies are made. In the Philippines, the
Financial Reporting Standards Council (FRSC) is the one that formalizes the accounting
standard-setting function, replacing the Accounting Standards Council (ASC). For auditing on
the other hand is the Auditing and Assurance Standards Council (AASC) that replaces Auditing
Standards and Practices Council (ASPC). As for international standard-setting bodies, there is
the International Accounting Standards Boards (IASB) which is the international counterpart of
FRSC and it also replaces the International Accounting Standards Committee (IASC). The
International Auditing and Assurance Standards Boards (IAASB) is the international counterpart
of the AASC and replace International Auditing Practices Committee (IAPC). These changes are
very much important for the advancement of the CPA profession but what are really the
difference between the old standard-setting bodies and the new ones?

The FRSC and AASC are created pursuant to the provisions of the Implementing Rules
and Regulations to RA 9298. The Accounting Standards Council (ASC) was created in
November 1981 by the Philippine Institute of Certified Public Accountants (PICPA) to establish
generally accepted accounting principles in the Philippines. The FRSC carries on the decision
made by the ASC to congregate Philippine accounting standards with international accounting
standards issued by the International Accounting Standards Board (IASB). The FRSC on the
other hand, as defined by the action plan developed by PICPA, was established by the PRC
under the IRR of the Philippine Accountancy of Act of 2004 to assist the BOA in carrying out its
power and function to promulgate accounting standards in the Philippines. The FRSC’s main
function is to establish generally accepted accounting principles (GAAP) in the Philippines. The
FRSC is the successor of the Accounting Standards Council (ASC).

According to aasc.org.ph, the ASPC was established by the Philippine Institute of

Certified Public Accountants (PICPA) and the Association of Certified Public Accountants in
Public Practice (ACPAPP). In support of ASPC’s creation and operation, PICPA, ACPAPP and
the PICPA Foundation adopted a Joint Memorandum of Support signed on March 17, 1986 by
representatives of these organizations. The ASPC was responsible for the promulgation of
auditing standards, practices and procedures, considered as generally accepted auditing standards
in the Philippines. At present, AASC pronouncements are mainly adopted from the standards and
practice statements issued by the IAASB. The approach and working procedures used by the
AASC in adopting AASC pronouncements, as well as the authority attaching to those
pronouncements, are set out in the Preface to Philippine Standards on Quality Control, Auditing,
Review, Other Assurance and Related Services.

There are still many things that have changed in the accountancy profession in the course
of years and it is always established in order to advance the said profession and to provide better
service for the public. And actually, I don’t really see much difference between the old and the
new standard-setting bodies but they are there to continue giving guidance and to publicize
accounting and auditing standards for the performance of Certified Public Accountants in their
respective services.