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Fourth of a series
With the changes in the CPA Licensure Examinations (CPALE) brought about in Boa Resolutions 274 and 275 Series of 2015, and 114 Series of 2016, this will instigate the training of accounting students and the qualification of CPAs to meet the exacting requirements of businesses and government. This includes compliance with regulatory rules and regulations.
For the accounting students and future CPAs, they have to be equipped with “entry level” knowledge of the multitude of compliance with government rules for business transactions. It should be emphasized that they need not have a complete mastery of the many topics included in the Regulatory Framework for Business Transactions and Taxation subjects of the CPALE. Likewise, the students and aspiring CPAs need not know the purely legal and “lawyering” aspects of these two subjects. The mandate of the accountant is to guide their clients or employers to navigate the accounting and regulatory compliance requirements of doing business.
As a result of these changes and expectations, accounting schools have to redo their curriculum and syllabi and realign the teaching approaches. The era of teaching and memorizing of legal terms and concepts are now over. Accounting students need not anymore memorize the legal definitions and enumerations that are taught in the law school for the law students. Instead, they have to be exposed to the practical applications of complying with the various government rules affecting businesses. What should be learned are knowledge of accomplishing government forms and tax returns, competence in transacting with government regulators and offices, awareness of government requirements and processes for business transactions, and other real world or real business situations and experiences.
Boa Resolution 114-2016 also clarified that the Code of Ethics for Professional Accountants is included in the coverage of the CPALE. This emphasizes the expectation that CPAs should always be discharging their responsibility as a professional, imbued with integrity and focused on governance.
The same resolution also provided that “Effective Communication to Stakeholders” shall be incorporated in all the six CPALE subjects. This emphasizes the importance of CPAs being competent in their verbal and written skills.
I am a believer of the four Cs of learning. The important skills in Communication, Collaboration, Critical thinking, and Creativity should be taught, learned, and practiced to be able to survive in the Fourth Industrial Revolution and post Covid pandemic era. With these changes brought about in the accountancy ecosystem, the profession and its stakeholders will be in a better position to move forward.
(To be continued)
Joel L. Tan-Torres is the Dean of the University of the Philippines Virata School of Business. Previously, he was the Commissioner of the Bureau of Internal Revenue, the chairman of the Professional Regulatory Board of Accountancy and partner of Reyes Tacandong & Co. and the SyCip Gorres and Velayo & Co. He is a Certified Public Accountant who garnered No. 1 in the CPA Board Examination of May 1979.
This column accepts contributions from the business community. Articles not exceeding 600 words can be e-mailed to boa.secretariat.@gmail.com.
1 comment
Very well said Sir Joel.
Practicality and alignment with the real business environment are very important.
Love your 4Cs by the way.
A 5th C can be Co-elevation 🙂
Stay great.