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What is the profession in the Philippines which celebrates a weeklong festivity of activities pursuant to a Malacañang proclamation? I believe that our accountancy sector is the only one among the 43 professions in the country which has a weeklong celebration every year.
This week accountants and the accountancy profession’s many stakeholders will have their Accountancy Week Celebration (AWC) from July 15 to 21. The many activities ranging from seminars, sports fest, outreach programs, accounting quiz contests, etc., are to be held in various locations throughout the Philippines. The 90 chapters of Philippine Institute of CPAs here and abroad and the more than 250 Junior Philippine Institute of CPAs chapters will all be coming out with activities for the AWC. The accountants have been conducting this weeklong festivities since 1966 when then-President Ferdinand E. Marcos Sr. issued in March 1966 Proclamation 19 declaring the AWC. The AWC tradition continues to be celebrated every third week of July pursuant to Malacañang Proclamation 218 that was issued by President Gloria Macapagal-Arroyo in July 2002.
At about the same time last year, on the occasion of the AWC then, I wrote about my concern on some initiatives in our accountancy profession. One year thereafter, I again ponder on some of these issues and more in this article.
Accounting schools would have addressed by now their response to two recent developments, namely the influx of the first batch of senior high school graduates proceeding to take up the accountancy program and the offering of the new accountancy programs provided for in Commission on Higher Education Memorandum Orders 27 to 30. Both of these present opportunities, as well as challenges for all accounting schools. For these incoming freshmen, the school administrators will have to evaluate their admission policy and basic accounting offering as they take into account the additional two years and accounting and bookkeeping learning of this batch of students. Schools would have already decided by now if they would add any of the new accounting course/s to their existing program.
Three major initiatives are still on the pipeline. The rollout of the Quality Assurance Review, the update of the Accountancy Law, and the implementation of the Asean Mutual Recognition Arrangement have long been in gestation. Because of the high impact and value that these will provide to the profession, it is imperative that the remaining kinks and requirements be addressed and resolved so as to move these three initiatives forward.
An assessment must be made of the regulatory measures that the Board of Accountancy and other regulators had instituted in the past years. There is a need to evaluate the effectiveness and areas for improvement of various measures, such as accreditation rules for the various accountancy sectors; the adoption of the Expanded Auditors Report and Certificate of Compilations Services; the increase of the audit peso threshold; the inspection of establishments and schools and establishments; and the investigation of complaints against erring CPAs.
With a new Code of Ethics that includes the response to noncompliance with laws and regulations; and the revived focus on disclosure of client information and professional skepticism, the CPAs would have to constantly be alert and conscious of their growing responsibilities.
Meanwhile, the demands of globalization and digital technology continue to impact the day-to-day engagement of the professional accountant. These require the accountant to be aware of these developments and to be ready to change his or her mind-set and way of doing things to continue to be relevant.
These are thoughts that we should all ponder upon as we celebrate our Accountancy Week.
Joel L. Tan-Torres is the chairman of the Professional Regulatory Board of Accountancy. 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 was the former 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.