Professional Practice of Accountancy

L. O. 1 Appreciate the role

of the professional
accountant in the economy

Role of the professional accountant in

the economy

Professional accountants in both

commerce and industry and public
accounting sectors must understand
how organizations are governed and
the key information that boards utilize
to ensure that organizations are
managed properly

L. O. 2 Know the attributes

of the profession

Accountancy as a Profession
Five major characteristics of an ideal
profession according to Ernest
Greenwoods article Attributes of a
Profession (1957):
1. Systematic Theory
2. Professional Authority
3. Community Sanction
4. Regulations Code
5. A culture

The Revised Code of Ethics for Certified

Public Accountants in the Philippines
states
A profession is distinguished by certain
characteristics including:
Mastery

of a particular intellectual skill,

acquired by training and education;
Adherence by its members to a common
code of values and conduct established by its
administering body, including maintaining an
outlook which is essentially objective; and
Acceptance to a duty of society as a whole
(usually in return for restrictions in use of a

L. O. 3 Know who is a
professional accountant

Who is a professional accountant?

A professional accountant is an
individual who holds a valid certificate
issued by the Board of Accountancy.
A professional accountant may belong to
any of the following sectors:
Professional Accountant in Public
Practice
Professional Accountant in Business
Commerce and industry
Education
Government

L. O. 4 Enumerate the
scope of the practice of
accountancy

Scope of Practice
The Philippine Accountancy Act of 2004
(R.A. 9298), Article 1, Section 4,
paragraphs (a) to (d) spell out the scope
of the practice of accountancy as
follows:
a) Practice of Public Accountancy
b) Practice in Commerce and Industry
c) Practice in Education / Academe
d) Practice in Government

L. O. 5 Know the
requirements to enter the
accountancy profession

Requirements to Enter the Accountancy

Profession
To be able to enter the professional
accountancy profession in the
Philippines, an individual should be able
to satisfy all of the following
requirements:
a) A holder of a degree of Bachelor of
Science in Accountancy conferred by
school, college or institute duly
recognized and/or accredited by the
Commission on Higher Education or
other authorized government office

Requirements to Enter the Accountancy

Profession
b)

c)

Qualify as a professional accountant

by passing the CPA Licensure Board
Examination administered by the
Professional Regulatory Board of
Accountancy
Satisfy all other legal requirements
before the individual takes on the
role of a professional accountant

A. Pre-qualification Education
Requirements
Professional Accounting Education
II. Professional Skills:
Intellectual Skills
Technical and Functional Skills
Personal Skills
Interpersonal and Communications Skills;
and
General Education:
knowledge on human behavior
understanding the flow of ideas events in
history, the different cultures in todays
world and an international outlook
I.

A. Pre-qualification Education
Requirements
appreciation

III.

of art, literature,
science, issues and contracting
economic, political and social
forces in the world
experience in making value
judgments
Professional Values, Ethics and
Attitudes
Values and Attitudes
Nature of Ethics

B. CPA Licensure Examination

I.
II.
III.

Qualification of Applicants for the

Licensure Examination
Scope of the Examination
Rating in the Licensure Examination

C. Other Legal and Regulatory

Requirements
I.

II.

III.

Oath
Issuance of Certificates of
registration and Professional
Identification Card
Indication of Certificate of
Registration, Identification Card and
Professional Tax Receipt

L. O. 6 Understand the need

for the professional accountant
to develop capabilities and
competence after admission to
the profession

Developing Capabilities and

Competence After Admission to the
Profession

An individual may need further education

and development to acquire capabilities
and competence required of professional
accountants.
Advanced professional education
pursued at academic institutions or
through the programs of professional
bodies
On-the-job-training and experience
programs
Off-the-job-training; and
Continuing professional development
(CPD) courses and activities

L. O. 7a Know the
competency requirements for
professional accountants in
public practice

Competency Requirements for

Professional Accountants in Public
Practice
A. Knowledge content
a) Audit of historical financial
information at an advanced level;
b) Financial accounting and reporting
at an advanced level; and
c) Information technology
B. Practical Experience

L. O. 7b Know the
competency requirements for
professional accountants in
business

Competency Requirements for

Professional Accountants in Business
Professional accountants in business form
a very diverse constituency, and can be
found working as employees, consultants,
and self-employed owner-managers or
advisors.
Professional skills are part of the set of
capabilities required by professional
accountants to demonstrate competence.
Professional skills will be acquired in part
during initial qualification and training, but
will need to be developed and honored
throughout a career.

Competency Requirements for

Professional Accountants in Business

In addition, with experience, the

successful professional accountant in
business can typically also be
characterized by a distinctive attitude,
outlook or way of thinking or mindset.
1. Professionalism and Ethical Behavior
2. Professional Judgment
3. Organizational and Environmental
Awareness
4. An Investor and Wider Stakeholder
Focus
5. Change, Uncertainty and Complexity

How Competencies can be Developed

and Maintained
Some companies have specific
development programs for professional
accountants in business which may
involve:
a) Exposure to various parts of the
organization
b) Formal an informal training, including
coaching and mentoring; and
c) Synchronization of development with
organization maturity

L. O. 8 Understand the
increased globalization of
accounting and auditing

Increased Globalization of Accounting

and Auditing
This is brought about by the nature of
accounting standards and the demand
for accounting-related information which
have changed in several significant
ways. This changes include:
Global Harmonization of Accounting
Standards
Expanded Accountability
More Detailed Reporting
Increased Risk Reporting
Global Audit Standards

L. O. 9 Be familiar with
what a CPA may expect in
the future

CPA Horizons 2025: A Road Map for the

Future

CPAs overwhelmingly agreed that the

professions core purpose, Making
sense of a changing and complex world,
remains relevant today and for the future
The professions core values remained
substantially unchanged
The professions core competencies
evolved to reflect the 21st century
The services provided by CPAs have
become so varied and diverse that the
concept of core services is no longer
representative of the profession

Ten Insights and Directions

The report highlighted 10 following insights with
details on how each is likely to impact the
profession:
1. Technology
2. Pre-certification and Lifelong Learning
3. Worldwide Profession
4. Pride in the Profession
5. Trusted Attester
6. Trusted Advisor
7. Market Permissions
8. Marketplace
9. Value Proposition
10. Demographic Shifts

Core Values and Competencies

Core Values
Integrity
Competence
Lifelong Learning
Objectivity
Commitment to Excellence
Relevance in the Global Marketplace

Core Values and Competencies

Core Competencies:
Communication Skills
Leadership Skills
Critical-Thinking and Problem-Solving
Skills
Anticipating and Servicing Evolving
Needs
Synthesizing Intelligence to Insight
Integration and Collaboration