Setting Up and Maintaining an
Accounting Practice
Accreditation to Practice
Public Accountancy
• Proprietorship and partnership must obtain a
Certificate of Accreditation from BOA to
practice public accountancy
• A minimum of three years of meaningful
experience is required
Meaningful Experience Include
Sector Nature of Experience
At least, one year as audit assistant and two years as auditor-in-
Public Practice charge of audit engagements
Significant involvement in general accounting, budgeting internal
Commerce and
auditing, tax administration related functions
Industry
Accumulated teaching experience of no less than three school
years teaching either financial accounting, business law and tax,
Education auditing problems and theory, financial management and MS
Significant involvement in general accounting, budgeting, internal
Government auditing and tax administration
Renewal of Accreditation
Accreditation shall be renewed every three years,
before Sept. 30 of the expiration year
The BOA requires as a condition for registration or
renewal – for the practitioners to undergo quality
review
Quality Review Committee (QRC) - - created to
conduct an oversight into the quality of audits of
financial statements.
Limitations for Foreign CPAs
Under no circumstances shall the correspondent
relationship, membership or business dealings with
foreign CPAs be a scheme for the foreign CPAs to engage
in the practice of public accountancy in the Philippines
which under the present laws is limited to Filipino CPAs
Powers and Functions of QRC
Conduct quality review on applicants for registration to practice
public accountancy
Recommend to the BOA the revocation of the Certificate of
Registration and ID of the practitioners who has not observed the
quality control measures
In the event that the QRC cannot accomplish the aforesaid
functions, the BOA or its duly authorized representatives may
conduct the required quality review
Composed of seven members: One Chair and six representatives.
Advertising and Promotion
• Any advertising by professional accountants beyond
their name, address, telephone number and
membership in professional organizations has been
traditionally considered unethical in the Accountancy
profession
• Due to the expansion of the services provided by the
professional accountants and the inclusion of a provision
in the Revised Code of Ethics, allowing advertising to the
extent that this provides the public with necessary
information about the services they offer to their clients
BOA Resolution No. 126, Series of 2008
Generally, advertising and publicity in any medium are
acceptable, provided:
It has as its objective the notification to the public
It is in good taste;
It is professionally dignified; and
It avoids frequent repetition, of and any undue
prominence being given to the name of the firm or
professional accountant
BOA Resolution No. 126, Series of 2008
Generally, the following shall not be allowed:
Self-laudatory statements
Discrediting, disparaging, or attacking other firms
Referring to, using or citing actual or purported
testimonials by third parties
Publishing and comparing fees with other CPAs or
comparing those services with those provided by another
practitioner
Giving too much emphasis on competitive differences
Publishing services in billboard advertisements
Examples of Acceptable Publicity
• Awards
• Professional Accounts Seeking Employment
• Directories
• Books, Articles, Lectures and Television Appearances
• Training Courses, Seminars
• Booklets and Documents Containing Technical Info
• Staff Recruitment
• Brochures and Firm Directories
• Stationery and Nameplates
• Announcements
• Anniversaries
Considerations in Determining
Professional Fees
Skills and knowledge required for the type of work
involved
The level of experience of the persons engaged on
the work
The time necessarily occupied by each person
engaged on the work
The degree of responsibility and urgency that the
work entails
Methods of Billing Clients
Flat or lump sum fee basis
Actual time charges or per diem basis
Maximum fee basis
Retainer fee basis
