THE ACCOUNTANCY

PROFESSION AND ITS

DEVELOPMENT
The accountancy Profession
 Accountancy is not only one of the modest,
less expensive but also the most prestigious
profession in the land today. Since it existed
way back in 1923, it hardly gained
recognition among the professions unlike
medicine, engineering and law. However, the
profession becomes the most feared of and
dreaded of all because it maintained the
highest mortality rate among courses that
requires board examination.
The accountancy Profession
The Accountancy Profession demands a high
quality of high standards performance at all
times to the public it served
What is an accountant?
 A Certified Public Accountant (CPA) or a
Professional Accountant is a holder of a
baccalaureate degree in Bachelor of Science in
Accountancy(BSA), who has taken and passed
the difficult and competitive licensure
examination for Certifies Public Accountants
and carries the title as C.P.A, vested by laws
of the republic to practice Public Accounting
in general under the supervision of the PRC
(Professional Regulations Commission)
What are the career Opportunities of
an Accountant?

 Public Accounting
 Government Accounting
 Private Accounting
 Academe
Private Accounting
 Under this field, we are in public practice
 Render service as an individual practitioner

and join partnership (e.g S.G.V & CO)

 The work includes auditing, taxation, &

management services.
 Association of CPAs in Public Practice

(ACPAPP)
Government Accounting
 Under this field, we are to render services to
the government
 We will gain employment in the National

Government Agencies such as DOF, SEC, BSP,

NBI, BIR, DBM, DPWH, DTI, COA, LGUs and
other GOCCs
 Government Association of CPAs
Private Accounting
 Under this field, we will gain employment in
private firms and hold positions as Chief
Accountant, Accounting Manager, Internal
Auditor, Finance Managerr or the highest
accounting officer of an enterprise which is
known as the Comptroller.
 Association of CPAs in Commerce and

Industry (ACPACI)
Academe
 We can also join in the learning institutions
and be there as an Accounting Professor or
CPA reviewers
 Association of CPAs in Education (ACPAE)
All CPA are members of the national
professional organization known as “Philippine
Institute of Certified Public Accountants”
(PICPA)
Basic Professional Values and Ethics

 Accounting is not just a course but a profession.

Characteristics distinguishing a profession:

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 of a duty to society as a whole.
 To ensure the highest quality of performance and to maintain
public confidence in the profession, PICPA has adopted the
IFAC Code of Ethics(with certain modifications).
Basic Professional Values and Ethics
 The code mentions the accountants' responsibility to the public, as
follows:
 Independent auditors should help maintain the integrity and

efficiency of financial statements.

 Financial executives contribute to the efficient and effective use of

the organization’s resources.

 Internal auditors provide assurance about sound internal control

system which enhances the reliability of the external financial

information of the employer.
 Tax experts help to establish confidence and efficiency, and the fair

application of the tax system.

 Management consultants have a responsibility toward the public

interest in advocating sound management decision-making.

Basic Professional Values and Ethics
 According to the code, a professional accountant  shall comply with the following fundamental
principles:

(a) Integrity – to  be straightforward and honest in all professional and business relationships.

(b) Objectivity – to not allow bias, conflict of interest or undue influence of others to override
professional or business judgments.

(c) Professional Competence and Due Care – to  maintain professional knowledge and skill at the
level required to ensure that a client or employer receives competent professional services based
on current developments in practice, legislation and techniques  and  act diligently and in
accordance with applicable technical and professional standards.

(d) Confidentiality – to respect the confidentiality of information acquired as a result of professional

and business relationships and, therefore,  not disclose any such information to third parties
without proper and specific authority, unless there is a legal or professional right or duty to
disclose, nor use the information for the personal advantage of the professional accountant or third
parties.

(e) Professional Behavior – to comply with relevant laws and regulations and avoid any action that
discredits the profession.
Core Competencies which entry level
CPA should possess:
Knowledge
Skills
Values
The CPAs knowledge must cover:

 General knowledge
 Organizational and business knowledge
 Information Technology knowledge
 Accounting Knowledge
The skills which every CPA should demonstrate include:

 Intellectual
◦ Analysis
◦ Problem solving
◦ Strategic/Critical Thinking
 Interpersonal
◦ Being a team player
◦ Persuasion, confidence and diplomacy
◦ Discreetness, open mind and patience
 Communication
The values that CPAs should possess include:

Professional ethics
• Integrity
• Objectivity and Independence
• Professional competence and due care
• Confidentiality
• Professional behavior

Moral Values
the CPAs to be able to dicern between what
is morally right or wrong
The Accountancy Act of 2004
 The Republic Act 9298 (RA9298) otherwise known as the "Philippine Accountancy Act of
2004" serves as the regulating law for the certified public accountants (CPAs) in the
Philippines. The act was officially promulgated on July 28, 2003 by the Congress of the
Philippines. Topics and its accompanying details are included in the CPA Board
Examinations as part of the Auditing Theory subject.

The act discusses the following topics:

1. The scope of the profession's practice, which classifies the CPA profession into four
categories namely, Practice of Public Accountancy, Practice in Commerce and Industry,
Government Sector and Practice in Education/Academe.
2. The creation of the Regulatory Body for CPAs known as the Professional Regulatory
Board of Accountancy (BOA).
3. The admittance and licensure of qualified candidates for the CPA profession.
4. The guiding rules and law in the practice of accountancy which includes prohibitions,
limitations, accreditations and the continuing professional education (CPE).
5. The Penal and Final provisions.

For the full text of the RA 9298, visit:

https://www.officialgazette.gov.ph/2004/05/13/republic-act-no-9298/
About FRSC and PIC

The Financial Reporting Standards Council (FRSC) was established by

the Professional Regulatory Commission under the Implementing
Rules and Regulations of the Philippine Accountancy of Act of 2004
to assist the Board of Accountancy 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 in the Philippines.
 The FRSC is the successor of the Accounting Standards Council

(ASC). The 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 converge Philippine
accounting standards with international accounting standards issued
by the International Accounting Standards Board (IASB).
 The FRSC consists of who a Chairman and members
 are appointed by the BOA and include
representatives from the Board of Accountancy (BOA),
Securities and Exchange Commission (SEC), Bangko
Sentral ng Pilipinas (BSP), Financial Executives
Institute of the Philippines (FINEX), Commission on
Audit (COA) and Philippine Institute of Certified Public
Accountants (PICPA). The FRSC has full discretion in
developing and pursuing the technical agenda for
setting accounting standards in the Philippines.
Financial support is received principally from the
PICPA Foundation.
 The FRSC monitors the technical activities of the
IASB and invites comments on exposure drafts of
proposed IFRSs as these are issued by the IASB.
When finalized, these are adopted as Philippine
Financial Reporting Standards (PFRSs). The FRSC
similarly monitors issuances of the International
Financial Reporting Interpretations Committee
(IFRIC) of the IASB, which it adopts as Philippine
Interpretations–IFRIC. PFRSs and Philippine
Interpretations–IFRIC approved for adoption are
submitted to the BOA and PRC for approval.
 The FRSC formed the 
Philippine Interpretations Committee (PIC)  in August
2006 to assist the FRSC in establishing and improving
financial reporting standards in the Philippines. The
role of the PIC is principally to issue implementation
guidance on PFRSs. The PIC members are appointed
by the FRSC and include accountants in public
practice, the academe and regulatory bodies and users
of financial statements. The PIC replaced the
Interpretations Committee created by the ASC in
2000.
References:
 Fundamentals of Accounting by Rafael M.
Lopez
 http://

www.picpa.com.ph/frsc.html?article=About%
20FRSC%20and%20PIC&page=FRSC&main_me
nu=AboutFRSC
 https
://www.officialgazette.gov.ph/2004/05/13/r
epublic-act-no-9298
/