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Republic of
the Philippines
Congress of the Philippines
Metro Manila
Twelfth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-eight day of
July,
two thousand three.
[REPUBLIC ACT NO 9298]
AN ACT REGULATING THE PRACTICE OF ACCOUNTANCY IN
THE PHILIPPINES, REPEALING FOR THE PURPOSE
PRESIDENTIAL DECREE NO. 692, OTHERWISE KNOWN AS
THE REVISED ACCOUNTANCY LAW, APPROPRIATING
FUNDS THERE FOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the
Philippines in Congress assembled:
ARTICLE I
TITLE, DECLARATION OF POLICY, OBJECTIVE
AND SCOPE OF PRACTICE
SECTION 1. Short Title. – This Act shall be known as the “Philip-
pine Accountancy Act of 2004”.
SEC. 2. Declaration of Policy. – The State recognizes the
importance of accountants in nation building and development. Hence,
it
shall develop and nurture competent, virtuous, productive and well
rounded
professional accountants whose standards of practice and service
shall be
excellent, qualitative, world class and globally competitive through
inviolable, honest, effective, and credible licensure examinations
and through
regulatory measures, programs and activities that foster their
professional
growth and development.
SEC. 3. Objectives. – This Act shall provide for and govern:
(a) The standardization and regulation of accounting education;
(b) The examination for registration of certified public
accountants; and
(c) The supervision, control, and regulation of the practice of
accountancy in the Philippines.
SEC. 4. Scope of Practice. – The practice of accountancy shall
include, but not limited to, the following:
(a) Practice of Public Accountancy - shall constitute in a person,
be it
his/her individual capacity, or as a partner or as a staff member in
an
accounting or auditing firm, holding out himself/herself as one
skilled in
the knowledge, science and practice of accounting, and as a
qualified
person to render professional services as a certified public
accountant; or
offering or rendering, or both, to more than one client on a fee
basis or
otherwise, services such as the audit or verification of financial
transaction
and accounting records; or the preparation, signing, or
certification for
clients of reports of audit, balance sheet, and other financial,
accounting
and related schedules, exhibits, statements or reports which are to
be used
for publication or for credit purposes, or to be filed with a court
or
government agency, or to be used for any other purpose; or the
design,
installation, and revision of accounting system; or the preparation
of
income tax returns when related to accounting procedures; or when
he/she
represents clients before government agencies on tax and other
matters
related to accounting or renders professional assistance in matters
relating
to accounting procedures and the recording and presentation of
financial
facts or data.
(b) Practice in Commerce and Industry - shall constitute in a person
involved in decision making requiring professional knowledge in the
science of accounting, or when such employment or position requires
that
the holder thereof must be a certified public accountant.
(c) Practice in Education/Academe - shall constitute in a person in
an
educational institution which involve teaching of accounting,
auditing,
management advisory services, finance, business law, taxation, and
other
technically related subjects: Provided, That members of the
Integrated Bar
of the Philippines may be allowed to teach business law and taxation
subjects.
(d) Practice in the Government- shall constitute in a person who
holds,
or is appointed to, a position in an accounting professional group
in
government or in a government–owned and/or controlled corporation,
including those performing proprietary functions, where decision
making
requires professional knowledge in the science of accounting, or
where a
civil service eligibility as a certified public accountant is a
prerequisite.
ARTICLE II
PROFESSIONAL REGULATORY BOARD OF ACCOUNTANCY
SEC. 5. The Professional Regulatory Board of Accountancy and its
Composition. – The Professional Regulatory Board of Accountancy,
hereinafter referred to as the Board, under the supervision and
administrative control of the Professional Regulation Commission,
hereinafter referred to as the Commission, shall be composed of a
chairman and six (6) members to be appointed by the President of the
Philippines from a list of three (3) recommendees for each position
and
ranked by the Commission, from a list of five (5) nominees for each
position submitted by the accredited national professional
organization of
certified public accountants. The Board shall elect a vice-chairman
from
among its members for a term one (1) year. The chairman shall
preside in
all meetings of the Board and in the event of a vacancy in the
office of the
chairman, the vice-chairman shall assume such duties and
responsibilities
until such time as a chairman is appointed.
SEC. 6. Qualifications of Members of the Professional Regulatory
Board. – A member of the Board shall, at the time of his/her
appointment,
possess the following qualifications:
(a) Must be a natural-born citizen and a resident of the
Philippines;
(b) Must be a duly registered Certified Public Accountant with a
least
ten (10) years of work experience in any scope of practice of
accountancy.
(c) Must be of good moral character and must not have been convicted
of crimes involving moral turpitude; and
(d) Must not have any pecuniary interest, directly or indirectly, in
any
school, college, university or institution conferring an academic
degree
necessary for admission to the practice of accountancy or where
review
classes in preparation for the licensure examination are being
offered or
conducted, nor shall he/she be a member of the faculty or
administration
thereof at the time of his/her appointment to the Board.
SEC. 7. Term of Office. - The Chairman and members of the Board
shall hold office for a term of three (3) years. Any vacancy
occurring
within the term of a member shall be filled up for the unexpired
portion of
the term only. No person who has served two (2) successive complete
terms
shall be eligible for reappointment until the lapse of one (1) year.
Appointment to fill up an unexpired term is not to be considered as
a
complete term.
SEC. 8. Compensation and Allowances of the Board. – The
chairman and members of the Board shall receive compensation and
allowances comparable to that being received by the Chairman and
members of existing regulatory boards under the Commission as
provided
for in the General Appropriations Act.
SEC. 9. Powers and Functions of the Board. – The Board shall
exercise the following specific powers, functions and
responsibilities:
(a) To prescribe and adopt the rules and regulations necessary for
carrying out the provisions of this Act;
(b) To supervise the registration, licensure and practice of
accountancy
in the Philippines;
(c) To administer oaths in connection with the administration of
this
Act;
(d) To issue, suspend, revoke, or reinstate the Certificate of
Registration for the practice of the accountancy profession;
(e) To adopt an official seal of the Board;
(f) To prescribe and/or adopt a Code of Ethics for the practice of
accountancy;
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