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 - May 13, 2004

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 THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Shorts Title. - This act shall be known as the "Philippine Accountancy Act of 2004"

Section 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 standard of practice and service shall be excellent,
qualitative, world class and globally competitive though inviolable, honest, effective, and credible
licensure examinations and though regulatory measures, programs and activities that foster their
professional growth and development.

Section 3. Objectives. - This Act shall provide and govern:

 The standardization and regulation of accounting education;

 The examination of registration of certified public accountants; and
 The supervision, control, and regulation of the practice of accountancy in the Philippines.

Section 4. Scope of Practice. - The practice of accountancy shall include, but not limited to, the
following:

(a) Practice of Public Accountancy - shall constitute a person, be it his/her individual capacity, 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 or more than one client
on a fee basis or otherwise, services as 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, statement of 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 purposes; or to design, installation, and revision of accounting
system; or the preparation of income tax returns when related to accounting procedures; or when
he/she represent clients before government agencies on tax and other matters relating to
accounting or render 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, fiancé, business law,
taxation and other technically related subject: Provided, that members of the Integrated Bar of the
Philippines may be allowed to teach business law and taxation subjects.

(d) Practice in 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

Section 5. The Professional Regulatory Board of Accountancy and its Composition. - The
Professional Regulatory Board of Accountancy, hereinafter referred to as 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) recommenders 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 accountant. The Board shall elect a
vice-chairman from among each member for a term of one (1) year. The chairman shall preside in
all meetings of the Boards 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.

Section 6. Qualifications of a 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 at least ten (10) years of work
experience in any scope of practice of accountancy;
c) Must be a 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 a time of his/her appointment to the Board.

Section 9. Powers and Functions of the Board. - The Board shall exercise the following specific
powers, functions and responsibilities:

 To prescribed and adopt the rules and regulations necessary for carrying out the provisions
of this Act;
 To supervise the registration, licensure and practice of accountancy in the Philippines;
 To administer oaths in connection with the administration of this Act;
 To issue, suspend, revoke, reinstate the Certificate of Registration for the practice of the
accountancy profession;
 To adopt an official seal of the Board;
 To prescribe and/or adopt a Code of Ethics for the practice of accountancy;

ARTICLE III

EXAMINATION, REGISTRATION AND LICENSURE

Section 13. The Certified Public Accountant Examinations. - All applicants for registration for the
practice of accountancy shall be required to undergo a licensure examination to be given by the
Board in such places and dates as the Commission may be designate subject to compliance with
the requirements prescribed by the Commission in accordance with Republic Act No. 8981.

Section 14. Qualifications of Applicant for Examinations. - Any person applying for examination
shall establish the following requisites to the satisfaction of the Board that he/she:

 is a Filipino citizen;
 is of good moral character;
 is a holder of the degree of Bachelor of Science in Accountancy conferred by the school,
college, academy or institute duly recognized and/or accredited by the CHED or other
authorized government offices; and
  has not been convicted of any criminal offence involving moral turpitude.

Section 15. Scope of Examination. - The licensure examination for certified public accountants
shall cover, but are not limited to, the following subjects:

 Theory of Accounts
 Business Law and Taxation
 Management Services
 Auditing Theory
 Auditing Problems
 Practical Accounting Problem I
 Practical Accounting Problem II

The Board, subject to the approval of the Commission, may revise or exclude any of the subjects
and their syllabi, and add new ones as the need arises.

Section 16. Rating in the Licensure Examination. - To be qualified as having passed the licensure
examination for accountants, a candidate must obtain a general average of seventy-five percent
(75%), with no grade lower than sixty-five percent (65%) in any given subject. In the event a candidate
obtains the rating of seventy-five percent (75%) and above in at least a majority of subjects as
provided for in this Act, he/she shall receive a conditional credit for the subjects passed: Provided,
That a candidate shall take an examination in the remaining subjects within two (2) years from
preceding examination: Provided, further, That if the candidate fails to obtain at least a general
average of seventy-five percent (75%) and a rating of at least sixty-five percent (65%) in each of the
subjects reexamined, he/she shall be considered as failed in the entire examination.

Section 17. Report of Rating. - The Board shall submit to the Commission the rating obtained by
each candidate within ten (10) calendar days after the examination, unless extended for just cause.
Upon the release of the results of the examination, the Commission shall send by mailing the rating
received by each examinee at his/her given address using the mailing envelop submitted during
the examination.

Section 18. Failing Candidates to Take Refresher Course. - Any candidate who fails in two (2)
complete Certified Public Accountant Board Examinations shall be disqualified from taking another
set of examinations unless he/she submit evidence to the satisfaction of the Board that he/she
enrolled in and completed at least twenty-four (24) units of subject given in the licensure
examination.
 For purposes of this Act, the examination in which the candidate was conditioned together
with the removal examination on the subject in which he/she failed shall be counted as one compete
examination.

Section 19. Oath. - All successful candidates in the examination shall require to take an oath of
professional before any member of the Board or before any government official authorized of the
Commission or any person authorized by law to administer oaths upon presentation of proof of
his/her qualification, prior to entering upon the practice of the profession.

Section 20. Issuance of Certificate of Registration and Professional Identification Card. - A

certificate of registration shall be issued to examinees who pass the licensure examination subject
to payment of fees prescribed by the Commission. The Certificate of Registration shall bear the
signature of the chairperson of the Commission and the chairman and members of the Board,
stamped with the official seal of the Commission and of the Board, indicating that the person named
therein is entitled to the practice of the profession with all the privileges appurtenant thereto. The
said certificate shall remain in full force and effect until withdrawn, suspended or revoked in
accordance with this Act.

A Professional Identification Card bearing the registration number date of issuance, expiry date,
duly signed by the chairperson of the Commission, shall likewise be issued to every registrant
renewable every three (3) years.

Section 21. Roster of Certified Public Accountant. - A roster showing the names and place of
business of all registered certified public accountants shall be prepared and updated by the Board,
and copies thereof shall be made available to any party as may deemed necessary.

Section 22. Indication of Certificate of Registration, Identification Card and Professional Tax
Receipt. - The certified public Accountant shall be required to indicate his/her certificate of
registration number and date of issuance, the duration of validity, including the Professional Tax
Receipt number on the documents he/she signs, uses or issues in connection with the practice of
his/her profession.

Section 23. Refusal to Issue Certificate of Registration and Professional Identification Card. -
The Board shall not register and issue a certificate of registration and professional identification
Card to any successful examinee convicted by the court of competent jurisdiction of a criminal
offence involving moral turpitude or guilty of immoral and dishonorable conduct to any person or
unsound mind. In the event of refusal to issue certificate for any reason, the Board shall give the
applicant a written statement setting forth the reasons for such action, which statement shall be
incorporated in the record of the Board.
Section 24. Suspension and Revocation of Certificate of Registration and Professional
Identification Card and Cancellation of Special Permit. - The Board shall have the power, upon
the notice and hearing, to suspend or revoke the practitioner's certificate of registration and
professional identification card or suspend his/her from the practice of his/her profession or cancel
his/her special permit for any of the causes or ground mentioned under Section 23 of this Act or
any of the provisions of this Act, and its implementing rules and regulations, the certified Public
Accountant's Code of Ethics and the technical and professional standards of practice for certified
public accountants.

Section 25. Reinstatement, Reissuance and Replacement of Revoked or Lost Certificates. - The
Board may, after the expiration of two (2) years from the date of revocation of a certificate of
registration and upon application and for reasons deemed proper and sufficient, reinstate the
validity of a revoked certificate of registration and in so doing, may, in its discretion, exempt the
applicant from taking another examination.

A new certificate of registration to replace lost, destroyed, or mutilated certificate/license may be

issued, subject to the rules and promulgated by the Board and the Commission, upon the payment
of the required fees.

ARTICLE IV

PRACTICE OF ACCOUTANCY

Section 26. Prohibition in the Practice of Accountancy. - No person shall practice accountancy in
this country, or use the title "Certified Public Accountant", or use the abbreviated title "CPA" or
display or use any title, sign, card, advertisement or other device to indicate such person practices
or offers to practice accountancy, or is a certified public accountant, unless such person shall have
received from the Board a certificate of registration/Professional license and be issued a
professional identification card or a valid temporary/special permit duly issued to him/her by the
Board and the Commission.

Section 27. Vested Rights. - Certified Public Accountants Registered When This Law is Passed. - All
certified public accountants registered at the time this law takes effect shall automatically be
registered under the provisions hereof, subject, however, to the provisions herein set forth as to
future requirements. Certificate of Registration/Professional license held by such persons in good
standing shall have the same license force and effect as though issued after the passage of this Act.