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Regulation of the public accounting practice

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Individual Assignment: 06 Regulation of the Public Accounting Practice
1. What are the laws that paved the way towards making Accountancy a
recognized profession?
- On March 17, 1923, the Philippine government formally recognized the
accounting profession, which had existed since the 1700s. Republic Act (R.A.)
3105 enabled this formalization, which acted as a first step toward the country's
burgeoning accounting profession. The Board of Accountancy was established,
and it was granted the authority to issue certificates to qualified applicants who
had finished the laborious process of becoming a Certified Public Accountant.
This also established provisions for CPA examinations, certificate revocation
and suspension, and other regulations to aid in developing the accounting
profession in the Philippines (Business Mirror, 2018).
The Board of Accountancy has been extended due to the rising complexity of
professional regulation and developments in the practice of the profession. In
1967, Republic Act No. 5166 ('The Accountancy Act of 1967') increased the
number of members on the Board of Accountancy from three to six. This Act
established the functions of the Board of Accountancy, which include
standardizing and regulating accounting education, administering
examinations for registering CPAs and upholding the rules of practice to raise
the profession's standards to a high degree of excellence. Later, in 1975,
Former President Marcos issued Presidential Decree No. 692 (The Revised
Accountancy Law), which amended the Accountancy Act 1967 and made
significant changes like modifying the composition of the BOA to one chairman
and six members.
Finally, Republic Act 9298, also known as the "Philippine Accountancy Act
of 2004," revoked Presidential Decree No. 692. (The Revised Accountancy
Law). This became the legal statute governing accounting in the country,
acknowledging the relevance of accountants in nation-building and
development. This included creating inviolable, truthful, effective, and credible
licensure examinations and regulatory measures, programs, and activities that
develop and nurture professional accountants to be excellent in providing
world-class and globally competitive accounting services, thereby clearly
establishing Accountancy as a recognized profession in the Philippines.
2. What are the significant provisions in the Accountancy Act that pertains to
the following?
a) Accounting Education

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- According to Article 1 Section 4 of R.A. 9298, a person who teaches
Accountancy or accountancy-related courses in an educational institution
is deemed to be engaged in the practice of accounting in the
educational/academic setting. The Board of Accountancy (BOA) shall
exercise specific powers, functions, and responsibilities in coordination
with the Commission on Higher Education (CHED) or other authorized
government offices to ensure that all higher education instruction and the
offering of Accountancy complies with the prescribed policies, standards,
and requirements, according to article 2 section 9 (n) (Philippine
Accountancy Act, 2004).
b) Examinations for registration as Certified Public Accountants
- The examination, registration, and licensure of Certified Public
Accountants are governed by Article III of the Philippine Accountancy Act
of 2004. According to the provision, all applicants for registration to
practice accounting must pass a licensure examination administered by
the Board. Any applicant for the exam must be a Filipino citizen with a good
moral character. They must also obtain a Bachelor of Science in
Accountancy degree from a school, college, academy, or institute that has
been duly recognized and certified by the CHED or other government
agencies. They must not have been convicted of any criminal act involving
moral turpitude. The license examination for certified public accountants
shall cover, but not be limited to, Theory of Accounts, Business Law and
Taxation, Management Services, and Auditing Theory, according to
section 15 of the same article. Problems in Auditing, Problems in Practical
Accounting I, and Problems in Practical Accounting II.
To be qualified as having completed the accountant license examination,
a candidate must have an overall average of 75% (75%) and no grades
lower than 65% (65%) in any subject. Suppose a candidate receives a
seventy-five percent (75%) or higher in at least a majority of subjects as
required by this Act. In that case, they will be given conditional credit for
the subjects passed: provided, however, that the candidate must retake
the remaining subjects within two (2) years of the previous examination.
Furthermore, all successful exam candidates will receive Certificates of
Registration and Professional Identification Cards and be required to take
an oath of the profession. In contrast, candidates who fail two consecutive
exams will be required to take a refresher course before taking another
CPA licensure exam.
Moreover, the article also covers the Report of Findings, Roster of Certified
Public Accountants, the Indication of Certificates of Registration,
Identification Cards, and Professional Tax Receipts, the Suspension and

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Individual Assignment: 06 Regulation of the Public Accounting Practice 1. What are the laws that paved the way towards making Accountancy a recognized profession? - On March 17, 1923, the Philippine government formally recognized the accounting profession, which had existed since the 1700s. Republic Act (R.A.) 3105 enabled this formalization, which acted as a first step toward the country's burgeoning accounting profession. The Board of Accountancy was established, and it was granted the authority to issue certificates to qualified applicants who had finished the laborious process of becoming a Certified Public Accountant. This also established provisions for CPA examinations, certificate revocation and suspension, and other regulations to aid in developing the accounting profession in the Philippines (Business Mirror, 2018). The Board of Accountancy has been extended due to the rising complexity of professional regulation and developments in the practice of the profession. In 1967, Republic Act No. 5166 ('The Accountancy Act of 1967') increased the number of members on the Board of Accountancy from three to six. This Act established the functions of the Board of Accountancy, which ...
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