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Part Two
THE Filipino Certified Public Accountant continues to be recognized in the global accountancy profession and the local business community. In these two sectors, our CPAs play leading and important roles and responsibilities. For us to maintain and even move forward, we should focus on five priority attributes of compliance, innovation, professionalism, advocacy and globalization, with the appropriate acronym of Cipag.
On the first attribute of compliance, our CPAs should be familiar and disciplined in complying with the many regulatory measures that impact their practice and that of their stakeholders, including their clients, employers, staff and many others. These regulatory measures include the more common rules and laws on doing business, taxation, auditing, accounting and corporate reporting. CPAs should also start learning the newer government requirements on data privacy protection, anti-money laundering, corporate governance and fair competition.
The Board of Accountancy had instituted major regulatory programs on the Quality Assurance Program for auditors, the accreditation of CPAs in the various sectors, the imposition of the compilation guidelines, and inspection of establishments were implemented. The BOA had been active in pursuing closer collaboration with the other government regulators, including the Commission on Audit, Securities and Exchange Commission (SEC), Bureau of Internal Revenue, Anti-Money Laundering Council, Bangko Sentral ng Pilipinas and other agencies. The CPAs’ professional responsibility is to comply with the relevant issuances issued by the government regulatory rules.
A number of the measures adopted by the BOA were disputed in the judicial courts. In the past recent years, there were four court cases filed against the Professional Regulations Commission and the BOA contesting some BOA regulatory measures. These include:
1. New Excelsior General Merchandising, et. al. docketed as Civil Case 16-137284 of Regional Trial Court (RTC) Manila, on the implementation of BOA Resolution 3-2016 on accreditation of CPAs in commerce and industry and the submission of the compilation services certification;
2. SGV case docketed as CA-GR SP 154778 and Civil Case 16-432 of RTC Makati providing for the implementation of BOA Resolution 295, Series of 2015, on the registration and accreditation of all Partners and CPA staff members in partnerships and firms engaged in the public practice of accountancy;
3. Caluya, et. al. docketed as Civil Case 1028 of RTC Caloocan on the Quality Assurance Program; and
4. Dollisen, et. al docketed as CA-SP 153836 and SCA 16136907 of RTC of Manila on the bridging program offered by Trece Martirez City College and Center of Excellence for Review and Training Services.
The various courts of these cases all ruled in favor of BOA on the legality of the measures adopted by the regulator. It is now incumbent the affected CPAs to comply with these.
It is also noteworthy that CPAs know that the RTC Davao nullified the SEC-imposed mandatory accreditation of CPAs in public practice with its decision on Civil Case R-DVO 15-0229-SC. This case was filed by a group of CPAs based in Davao and the 1Accountants Party-List Inc.
Knowing these developments affecting CPAs is the path toward compliance of Cipag.
To be continued
Joel L. Tan-Torre is a Certified Public Accountant who placed No. 1 in the May 1979 CPA Board Examinations. He was the former commissioner of the Bureau of Internal Revenue from 2009 to 2010 and the chairman of the Professional Regulatory Board of Accountancy from 2014 to August 2018. He is a partner of Reyes Tacandong & Co.
This column accepts contributions from accountants, especially articles that are of interest to the accountancy profession, in particular, and to the business community, in general. These can be e-mailed to boa.secretariat.@gmail.com