Warning: Attempt to read property "post_title" on null in /www/businessmirror_145/public/wp-content/plugins/better-image-credits/better-image-credits.php on line 227
The journey started over four years ago. On May 15, 2014, I was sworn in as the chairman of the Professional Regulatory Board of Accountancy (BOA) with my appointment to that position by the then-President of the Philippines, Benigno Aquino III. Thereafter, the great journey started.
On June 14, 2014, the “Expanding Horizons” (EH) initiative of the BOA was launched. The EH initiative represents the various undertakings and plans of BOA to pursue the various mandates prescribed in the Accountancy Law (Republic Act 9298) to supervise and regulate the practice of accountancy. Subsequently, the Six-point Expanding Horizons Plan was formulated with the vision of upgrading the profession and the Filipino accounting professional to levels higher than that of global standards. With the EH initiative as the road map, I proceeded with the journey of leading the institution of many reforms in the accountancy profession.
A main focus of the EH journey was the reform of the educational and board licensure system. It was necessary that the accountancy education and the professional qualification process be upgraded to meet the requirements of the stakeholders and the demands of the changing times. The main achievements of this initiative was the formulation of the Commission on Higher Education Memorandum Orders (CMO) 27 to 30 and the BOA Resolutions 215, 262, 275 , 275, all under Series of 2015, and 114 of them under Series 2016. The CMO issuances provided additional accountancy programs that can be offered by the more than 500 accountancy schools in the Philippines that will address the specialized requirements of the industry and the profession. The BOA resolutions rationalized and upgraded the process for qualification of the CPAs.
The regulation of the profession was also given expanded attention. Major regulatory programs on the Quality Assurance Program, accreditation of CPAs in the various sectors, the imposition of the Compilation guidelines, and inspection of establishments were implemented. There were closer collaboration with the other government regulators, including the Commission on Audit, Securities and Exchange Commission, Bureau of Internal Revenue, Anti-Money Laundering Council, Bangko Sentral ng Pilipinas and other agencies. A number of the measures adopted by the BOA were disputed in the judicial courts. There were five cases filed in Judiciary, and all were resolved in favor of the BOA. A perfect success attainment, which affirms the legitimacy of the regulatory proceedings of the BOA.
There were major inroads in the globalization thrust of the EH initiative. The accountancy profession of the Philippines was given more recognition by the major global accountancy bodies, including the International Federation of Accountants and its various boards, the Asian Development Bank, Accountancy Europe, European Federation of Accountants and Auditors for SMEs, the Centre for Financial Reporting Reform, the UNCTAD International Standards
Accounting and Reporting, ACCA, CPA Canada, the Institute of Management Accountant and other organizations. Engagements with these institutions include their invitations for the BOA to participate in the major activities, and conversely their participation in the BOA activities in the Philippines. The Asean Mutual Recognition for Accountancy Services was signed in November 2014. Bilateral negotiations for mutual accountancy recognition with Australia have been agreed upon paving the way for discussions with CPA Australia. Talks with the National Association of State Boards of the United States are ongoing for the initiation of bilateral mutual recognition negotiations. The World Bank released in 2017 the Reports on the Observance of Standards and Codes for the Philippines.
Governance and ethics were important concerns of the EH initiatives. Major accomplishments include the institutionalization of the Integrity Pledge during the oathtaking of new CPAs, the adoption of the Code of Ethics with the “Responding to Non-compliance with Laws and Regulations” standard, and the landmark awards on the Performance Governance Systems given by the Institute for Solidarity Asia to the accountancy profession.
The stakeholders of the profession are communicating more with each other. The BOA has been proactive in implementing interactive initiatives such as the “Let your voice be heard” survey project, the social network and web site of BOA, the “Debit Credit” column in the BusinessMirror, the Highest Standards Technical Journal and News Ledger publications, and the involvement of the BOA in the various activities and events of the various professional accountancy organizations.
The 95th anniversary celebration, the accounting case development project, the Small Medium Practice empowerment, “I am Accountant” movement, and the proposed revisions of the Accountancy Law are in the pipeline . Once these are completed, these will further enhance the capability and image of the profession.
Recalling all these events and experiences over the past years has been very pleasant. I will turn over the chairmanship of the BOA to Dr. Noe Quinanola, knowing that I did my part in enhancing our beloved accountancy profession.
It has been a wonderful journey.
Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. His term expires on August 14 with the turnover of chairmanship. He is a Certified Public Accountant who placed No. 1 in the May 1979 CPA Board Examinations. He is concurrently a tax partner of Reyes Tacandong & Co., CPAs. He served as commissioner of the Bureau of Internal Revenue from 2009 to 2010.
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