Body of Specialized Knowledge: The Code of Ethics: The Code of Ethics for

accountancy profession has developed a Professional Accountants in the Philippines,

specialized body of knowledge over time. It patterned after IFAC, establishes ethical
started with the double-entry bookkeeping requirements for accountants. It outlines
system codified by Luca Pacioli in the 15th fundamental principles such as integrity,
objectivity, professional competence and due
century. This system includes accounting
care, confidentiality, and professional behavior.
equations and rules of debit and credit, forming
the basis for financial accounting theory. Today, Recognized Status Indicated by a License: The
it includes standards in financial reporting, title of Certified Public Accountant (CPA) is
auditing and assurance, and accounting recognized both domestically and globally. CPAs
education, such as the International Financial work in various sectors, including public
Reporting Standards (IFRS), International accountancy practice, commerce and industry,
Standards on Auditing (ISAs), and International government, and academia.
Education Standards (IESs). Public Interest in the Work Performed:
Accountants play a crucial role in contributing to
Formal Educational Process: The formal
the efficient allocation and management of
education process for accountants is based on
resources in the private and public sectors. They
the Core Competency Framework for Entry to
contribute to the operation of financial and
the Philippine Accountancy Profession. This
capital markets, improve standards of living, and
framework sets the entry-level qualification
overall wealth. However, accountants are not
requirements and core competencies for
infallible, as demonstrated by scandals like the
Filipino CPAs, aligned with international
Enron bankruptcy involving Arthur Andersen.
standards set by the International Federation of
Accountants (IFAC). Recognition of a Social Obligation: Members of
the accountancy profession have a social
Standards Governing Admission: Admission to
obligation to the community and the public
the accountancy profession in the Philippines is
interest, beyond their clients or employers.
governed by the Philippine Accountancy Law of
Professional bodies like the Philippine Institute
2004 (RA 9298). This law requires individuals to
of Certified Public Accountants (PICPA) also
pass the CPA Licensure Examination, take an
aspire to provide assurance in the quality of
oath as a professional, and fulfill work
services rendered by their members.
experience and continuing professional
development (CPD) requirements.
Knowledge: The knowledge component consists visualization, and reasoning. Intellectual skills
of four major aspects: involve analysis, problem-solving, and strategic
or critical thinking.
General Knowledge: This includes traits that
make Filipino CPAs competitive in the global Interpersonal Skills: Interpersonal skills involve
marketplace, such as proficiency in the English working effectively in groups or teams, teaching
language, adaptability to Western business others, client satisfaction, negotiation, and
practices, trainability, and cross-cultural collaboration with diverse groups. Attributes like
awareness. being a team player, persuasion, confidence,
and open-mindedness are part of interpersonal
Organizational and Business Knowledge: This
skills.
covers a broad understanding of the
macroeconomic environment, economic and Communication Skills: Communication skills
industry issues, and business processes. encompass active listening, effective expression
Subjects in this category include economics, of ideas both orally and in writing, delivering
marketing, ethics, corporate governance, and presentations, persuasion, and negotiation.
more. CPAs should be skilled in explaining complex
financial, statistical, administrative, and
Information Technology (IT) Knowledge: This
regulatory matters clearly and concisely.
pertains to the use of modern technologies,
especially computer-based systems, in Values: The values component addresses
accounting functions. It includes familiarity with professional ethics and moral values:
standards, evaluation methods, and security
Professional Ethics: This includes values such as
measures related to IT.
integrity, objectivity, independence,
Accounting Knowledge: This encompasses core professional competence, due care,
accounting knowledge, international accounting confidentiality, and professional behavior. These
and financial reporting standards, corporate values guide the conduct of CPAs in their
finance, professional ethics, and environmental professional roles.
accounting and reporting.
Moral Values: Moral values pertain to a CPA's
Skills: The skills component comprises three ability to distinguish between right and wrong
major types: from a moral perspective, beyond professional
ethics.
Intellectual Skills: These include abstract logical
and critical thinking, creative thinking,

Part 1 - Complying with the Code, Fundamental This part establishes the fundamental principles
Principles, and Conceptual Framework: of ethics for professional accountants, including
Integrity, Objectivity, Professional Competence
and Due Care, Confidentiality, and Professional (designated with "R" and indicating mandatory
Behavior. obligations), and application material (providing
context, explanations, and guidance).
It introduces the conceptual framework used to
identify, evaluate, and address threats to The Code emphasizes the importance of
compliance with these principles. applying the conceptual framework to assess
threats to compliance with the fundamental
Part 2 - Professional Accountants in Business:
principles and independence when conducting
This section contains additional material that various engagements.
applies to professional accountants working in
Professional accountants are required to
various business sectors.
understand and follow the entire Code,
It covers professional activities in commerce, maintaining independence in audit, review, and
industry, the public sector, education, the not- assurance engagements.
for-profit sector, regulatory or professional
Key Principles:
bodies, and more.
Professional accountants must act in the public
Part 3 - Professional Accountants in Public
interest and follow fundamental principles of
Practice:
integrity, objectivity, professional competence
This part provides supplementary material and due care, confidentiality, and professional
applicable to professional accountants working behavior.
in public practice when providing professional
Specific subsections of the Code elaborate on
services.
each fundamental principle, outlining
Part 4 - International Independence Standards: expectations and responsibilities.

This section addresses independence standards Conceptual Framework:

specifically for professional accountants in
The conceptual framework assists accountants
public practice, including audit and review
in identifying, evaluating, and addressing
engagements (Part 4A) and assurance
threats to compliance with fundamental
engagements other than audit and review
principles.
engagements (Part 4B).
Threats to compliance are categorized, and the
framework provides guidance on evaluating the
acceptability of these threats.

Structure of the Code: Factors influencing the evaluation of threats

include qualitative and quantitative
The Code is structured with sections, each considerations.
containing introductory material, requirements

These rules and regulations implement Republic Act No. 9298, known as the "Philippine Accountancy Act
of 2004." They govern the practice of accountancy in the Philippines and cover various aspects, including
the composition and functions of the Professional Regulatory Board of Accountancy, qualifications for
CPA licensure examinations, the examination process, and the practice of accountancy. Here is a
summary of the key points in each section:

Rule I: Title, Declaration of Policy, Objective, and Rule IV: Practice of Accountancy
Scope of Practice
Prohibits the practice of accountancy without a
Defines the short title, declaration of policy, valid Certificate of Registration and Professional
objectives, and scope of practice for Identification Card.
accountants in the Philippines.
Recognizes vested rights of CPAs registered
Provides definitions for important terms used in before the enactment of the law.
the rules and regulations.
Specifies limitations on the practice of public
Rule II: Professional Regulatory Board of accountancy.
Accountancy
Defines meaningful experience requirements
Describes the composition of the Professional for accreditation in public practice.
Regulatory Board of Accountancy (Board).
Addresses the ownership of working papers,
Specifies the qualifications of Board members. mandatory membership in a professional
organization, and the accreditation process.
Outlines the term of office, compensation, and
powers and functions of the Board. Requires CPAs to participate in Continuing
Professional Education (CPE) programs.
Establishes Accounting and Auditing Standard
Setting Councils and an Education Technical Mandates the use of a designated seal and
Council to assist the Board in its functions. governs its use.

Rule III: Examination, Registration, and Allows foreign CPAs to practice in the
Licensure Philippines under certain conditions.

Covers the CPA licensure examinations, Covers temporary/special permits for foreign
including qualifications, scope, and passing CPAs.
criteria.
Rule V: Penal and Final Provisions
Describes the process for reporting examination
Specifies penalties for violations of the law and
ratings and the requirements for candidates
its implementing rules.
who fail the examination.
Empowers the Board to adopt and promulgate
Explains the oath-taking and issuance of
rules and regulations.
certificates and Professional Identification
Cards. Ensures the interpretation and enforcement of
the law.
Addresses the maintenance of a roster of CPAs
and the indication of registration on Addresses funding for the law's
professional documents. implementation.
Outlines grounds for suspension or removal of Contains transitory provisions for incumbent
Board members and requires the submission of Board members and recent graduates.
an annual report by the Board.
Includes a separability clause, repealing clause, the Philippines, including the qualifications and
and an effective date. responsibilities of CPAs and the regulatory
mechanisms in place to ensure compliance with
These rules and provisions establish the legal
professional standards and ethics.
framework for the practice of accountancy in

CPD UNITS MATRIX

Professional Regulation Commission (PRC) Resolution No. 1244, Series of 2020, provides guidelines and
updates related to Continuing Professional Development (CPD) activities in the Philippines. Here's an
overview of its key components:

Guidelines on the Matrix of CPD Activities:

The resolution includes guidelines for the Matrix of CPD Activities, which outlines various CPD activities
that professionals can engage in to earn CPD credit units.

It specifies the number of credit units allocated to different activities and the corresponding categories
they fall under.

The Matrix helps professionals understand the types of activities that are eligible for CPD credit and how
many credits each activity is worth.

Revised CPD Forms:

PRC Resolution No. 1244 introduces revised CPD forms that professionals need to use for documenting
their CPD activities.

These forms are essential for professionals to track and report their CPD compliance to the PRC.

The revised forms likely include spaces for professionals to record details about the CPD activities they
have completed, including the type of activity, the provider, date, and the number of credit units earned.

CPD Glossary:

The resolution also includes a CPD Glossary, which provides definitions and explanations of terms related
to Continuing Professional Development.

This glossary aims to clarify any terminology or concepts related to CPD, making it easier for
professionals to understand and navigate the CPD requirements.

Reiterating Ways of Earning CPD Credit Units During the COVID-19 Crisis:

PRC Resolution No. 1240 reaffirms and provides guidance on the ways in which licensed professionals
can earn CPD credit units, particularly during the state of public health emergency caused by the COVID-
19 pandemic.

It acknowledges that the pandemic may have disrupted traditional CPD activities such as physical
seminars and workshops.
The resolution likely suggests alternative ways of learning and earning CPD credit units, which may
include online courses, webinars, virtual conferences, and other forms of remote or digital learning.

By reiterating these alternative learning methods, PRC aims to ensure that professionals can continue to
meet their CPD requirements despite the challenges posed by the pandemic.

Extending the Acceptance of Undertaking for PIC Renewal:

The resolution also extends the acceptance of the Undertaking as an alternative mode of compliance for
the renewal of the Professional Identification Card (PIC).

The Undertaking is a document in which a professional commits to complete the required CPD units
within a specified period.

The acceptance of the Undertaking as an option for renewal is extended until December 31, 2021. This
means that professionals who are unable to fulfill their CPD requirements by traditional means can use
the Undertaking to renew their PICs until the specified deadline.

CMO No. 27, Series of 2017, issued by the Commission on Higher Education (CHED) in the Philippines,
outlines the "Revised Policies, Standards, and Guidelines (PSGs) for Bachelor of Science in Accountancy
(BSA)" programs offered by higher education institutions in the country. These policies and standards
serve as a framework to ensure the quality of education and training in accountancy programs. Here are
some key points from CMO No. 27, Series of 2017:

Definition and Objectives: The CMO defines the Bachelor of Science in Accountancy (BSA) program and
sets its objectives. It aims to produce graduates who are knowledgeable and competent in the practice
of accountancy, auditing, taxation, and related fields.
Curriculum: The document outlines the curriculum structure, including the required number of units and
courses for the BSA program. It provides guidance on the distribution of subjects across different areas
of accountancy and related fields.

Faculty Qualifications: The CMO specifies the qualifications and requirements for faculty members
teaching in BSA programs. It emphasizes the importance of having qualified and experienced faculty to
ensure the quality of education.

Facilities and Resources: Higher education institutions offering BSA programs are expected to provide
appropriate facilities and resources, including libraries, computer laboratories, and accounting
laboratories, to support students' learning and research needs.

Student Admission and Retention: The document outlines the criteria and procedures for student
admission and retention in BSA programs. It includes academic performance standards and
requirements for students to progress in the program.

Assessment and Evaluation: CHED emphasizes the importance of assessment and evaluation
mechanisms to monitor the performance of BSA programs. It encourages institutions to use various
assessment methods, including standardized tests, to evaluate student learning outcomes.

Internship and On-the-Job Training: BSA programs should incorporate internship or on-the-job training
components to provide students with practical experience in accounting and related fields.

Quality Assurance: The CMO emphasizes the role of quality assurance mechanisms in ensuring the
continuous improvement of BSA programs. Institutions are encouraged to undergo accreditation and
regularly review and update their programs to meet changing industry demands.

Ethical Standards: The document highlights the importance of instilling ethical standards and values in
BSA students, emphasizing the need for integrity and professionalism in the practice of accountancy.

Transition Provisions: CHED provides transition provisions for institutions to align their existing BSA
programs with the revised policies and standards outlined in CMO No. 27, Series of 2017.

CMO No. 28, Series of 2017, issued by the Commission on Higher Education (CHED) in the Philippines,
outlines the "Revised Policies, Standards, and Guidelines (PSGs) for Bachelor of Science in Management
Accounting (BSMA)" programs offered by higher education institutions in the country. These policies and
standards provide a framework to ensure the quality of education and training in management
accounting programs. Here are some key points from CMO No. 28, Series of 2017:

Definition and Objectives: The CMO defines the Bachelor of Science in Management Accounting (BSMA)
program and sets its objectives. The program aims to produce graduates who are knowledgeable and
competent in management accounting and related fields.

Curriculum: The document outlines the curriculum structure, including the required number of units and
courses for the BSMA program. It provides guidance on the distribution of subjects across different areas
of management accounting and related fields.
Faculty Qualifications: CHED specifies the qualifications and requirements for faculty members teaching
in BSMA programs. It emphasizes the importance of having qualified and experienced faculty to ensure
the quality of education.

Facilities and Resources: Higher education institutions offering BSMA programs are expected to provide
appropriate facilities and resources, including libraries, computer laboratories, and accounting
laboratories, to support students' learning and research needs.

Student Admission and Retention: The CMO outlines the criteria and procedures for student admission
and retention in BSMA programs. It includes academic performance standards and requirements for
students to progress in the program.

Assessment and Evaluation: CHED emphasizes the importance of assessment and evaluation
mechanisms to monitor the performance of BSMA programs. Institutions are encouraged to use various
assessment methods, including standardized tests, to evaluate student learning outcomes.

Internship and On-the-Job Training: BSMA programs should incorporate internship or on-the-job
training components to provide students with practical experience in management accounting and
related fields.

Quality Assurance: The document highlights the role of quality assurance mechanisms in ensuring the
continuous improvement of BSMA programs. Institutions are encouraged to undergo accreditation and
regularly review and update their programs to meet changing industry demands.

Ethical Standards: CHED emphasizes the importance of instilling ethical standards and values in BSMA
students, emphasizing the need for integrity and professionalism in the practice of management
accounting.

Transition Provisions: CHED provides transition provisions for institutions to align their existing BSMA
programs with the revised policies and standards outlined in CMO No. 28, Series of 2017.

CMO No. 29, Series of 2017, issued by the Commission on Higher Education (CHED) in the Philippines,
outlines the "Revised Policies, Standards, and Guidelines (PSGs) for Bachelor of Science in Internal
Auditing (BSIA)" programs offered by higher education institutions in the country. These policies and
standards serve as a framework to ensure the quality of education and training in internal auditing
programs. Here are some key points from CMO No. 29, Series of 2017:

Definition and Objectives: The CMO defines the Bachelor of Science in Internal Auditing (BSIA) program
and sets its objectives. The program aims to produce graduates who are knowledgeable and competent
in the field of internal auditing and related areas.

Curriculum: The document outlines the curriculum structure, including the required number of units and
courses for the BSIA program. It provides guidance on the distribution of subjects across different areas
of internal auditing and related fields.

Faculty Qualifications: CHED specifies the qualifications and requirements for faculty members teaching
in BSIA programs. It emphasizes the importance of having qualified and experienced faculty to ensure
the quality of education.
Facilities and Resources: Higher education institutions offering BSIA programs are expected to provide
appropriate facilities and resources, including libraries, computer laboratories, and auditing laboratories,
to support students' learning and research needs.

Student Admission and Retention: The CMO outlines the criteria and procedures for student admission
and retention in BSIA programs. It includes academic performance standards and requirements for
students to progress in the program.

Assessment and Evaluation: CHED emphasizes the importance of assessment and evaluation
mechanisms to monitor the performance of BSIA programs. Institutions are encouraged to use various
assessment methods, including standardized tests, to evaluate student learning outcomes.

Internship and On-the-Job Training: BSIA programs should incorporate internship or on-the-job training
components to provide students with practical experience in internal auditing and related fields.

Quality Assurance: The document highlights the role of quality assurance mechanisms in ensuring the
continuous improvement of BSIA programs. Institutions are encouraged to undergo accreditation and
regularly review and update their programs to meet changing industry demands.

Ethical Standards: CHED emphasizes the importance of instilling ethical standards and values in BSIA
students, emphasizing the need for integrity and professionalism in the practice of internal auditing.

Transition Provisions: CHED provides transition provisions for institutions to align their existing BSIA
programs with the revised policies and standards outlined in CMO No. 29, Series of 2017.

CMO No. 30, Series of 2017, issued by the Commission on Higher Education (CHED) in the Philippines,
outlines the "Revised Policies, Standards, and Guidelines (PSGs) for Bachelor of Science in Accounting
Information Systems (BSAIS)" programs offered by higher education institutions in the country. These
policies and standards provide a framework to ensure the quality of education and training in accounting
information systems programs. Here are some key points from CMO No. 30, Series of 2017:

Definition and Objectives: The CMO defines the Bachelor of Science in Accounting Information Systems
(BSAIS) program and sets its objectives. The program aims to produce graduates who are knowledgeable
and competent in the field of accounting information systems and related areas.

Curriculum: The document outlines the curriculum structure, including the required number of units and
courses for the BSAIS program. It provides guidance on the distribution of subjects across different areas
of accounting information systems and related fields.

Faculty Qualifications: CHED specifies the qualifications and requirements for faculty members teaching
in BSAIS programs. It emphasizes the importance of having qualified and experienced faculty to ensure
the quality of education.

Facilities and Resources: Higher education institutions offering BSAIS programs are expected to provide
appropriate facilities and resources, including libraries, computer laboratories, and information systems
laboratories, to support students' learning and research needs.
Student Admission and Retention: The CMO outlines the criteria and procedures for student admission
and retention in BSAIS programs. It includes academic performance standards and requirements for
students to progress in the program.

Assessment and Evaluation: CHED emphasizes the importance of assessment and evaluation
mechanisms to monitor the performance of BSAIS programs. Institutions are encouraged to use various
assessment methods, including standardized tests, to evaluate student learning outcomes.

Internship and On-the-Job Training: BSAIS programs should incorporate internship or on-the-job training
components to provide students with practical experience in accounting information systems and related
fields.

Quality Assurance: The document highlights the role of quality assurance mechanisms in ensuring the
continuous improvement of BSAIS programs. Institutions are encouraged to undergo accreditation and
regularly review and update their programs to meet changing industry demands.

Ethical Standards: CHED emphasizes the importance of instilling ethical standards and values in BSAIS
students, emphasizing the need for integrity and professionalism in the practice of accounting
information systems.

Transition Provisions: CHED provides transition provisions for institutions to align their existing BSAIS
programs with the revised policies and standards outlined in CMO No. 30, Series of 2017.

Management is predominantly concerned with planning, organizing, and controlling processes,

emphasizing efficiency and task completion, while leadership centers on inspiring and influencing people
to achieve a shared vision and strategic goals, fostering innovation and adaptability. Management
maintains day-to-day stability and order through formal authority, while leadership shapes an
organization's future by providing a broader direction, relying on influence and inspiration to guide
individuals and teams. Managers typically have a short-term focus, addressing immediate tasks, whereas
leaders often take a longer-term perspective, considering the organization's vision and long-range
objectives. Combining both skill sets is essential for a well-rounded approach to effective organizational
leadership and operations.