Professional Practice of Accountancy

8/10/2019 Professional Practice of Accountancy

1/32


2/32

L. O. 1Appreciate the roleof the professional

accountant in the economy


3/32

Role of the professional accountant in

the economy

Professional accountants in bothcommerce and industry and public

accounting sectors must understand

how organizations are governed andthe key information that boards utilize

to ensure that organizations are

managed properly


4/32

L. O. 2Know the attributesof the profession


5/32

Accountancy as a Profession

Five major characteristics of an idealprofession according to ErnestGreenwoods articleAttributes of aProfession

(1957):1. Systematic Theory

2. Professional Authority

3. Community Sanction

4. Regulations Code

5. A culture


6/32

The Revised Code of Ethics for Certified

Public Accountants in the Philippines

statesA profession is distinguished by certain

characteristics including:

Mastery of a particular intellectual skill,acquired by training and education;

Adherence by its members to a common

code of values and conduct established by its

administering body, including maintaining an

outlook which is essentially objective; and

Acceptance to a duty of society as a whole

(usually in return for restrictions in use of a


7/32

L. O. 3Know who is aprofessional accountant


8/32

Who is a professional accountant?

A professional accountant is anindividual who holds a valid certificateissued by the Board of Accountancy.

A professional accountant may belong toany of the following sectors:

Professional Accountant in PublicPractice

Professional Accountant in BusinessCommerce and industry

Education

Government


9/32

L. O. 4Enumerate the

scope of the practice ofaccountancy


10/32

Scope of Practice

The Philippine Accountancy Act of 2004(R.A. 9298), Article 1, Section 4,

paragraphs (a) to (d) spell out the scope

of the practice of accountancy asfollows:

a) Practice of Public Accountancy

b) Practice in Commerce and Industryc) Practice in Education / Academe

d) Practice in Government


11/32

L. O. 5Know therequirements to enter the

accountancy profession


12/32

Requirements to Enter the Accountancy

Profession

To be able to enter the professionalaccountancy profession in thePhilippines, an individual should be able

to satisfy all of the followingrequirements:

a) A holder of a degree of Bachelor ofScience in Accountancy conferred by

school, college or institute dulyrecognized and/or accredited by theCommission on Higher Education orother authorized government office


13/32

Requirements to Enter the Accountancy

Profession

b) Qualify as a professional accountantby passing the CPA Licensure Board

Examination administered by the

Professional Regulatory Board ofAccountancy

c) Satisfy all other legal requirements

before the individual takes on therole of a professional accountant


14/32

A. Pre-qualification Education

Requirements

I. Professional Accounting EducationII. Professional Skills:

Intellectual Skills

Technical and Functional Skills

Personal Skills

Interpersonal and Communications Skills;and

General Education: knowledge on human behavior

understanding the flow of ideas events inhistory, the different cultures in todays

world and an international outlook


15/32

A. Pre-qualification Education

Requirements

appreciation of art, literature,science, issues and contracting

economic, political and social

forces in the world experience in making value

judgments

III. Professional Values, Ethics andAttitudes

Values and Attitudes

Nature of Ethics


16/32

B. CPA Licensure Examination

I. Qualification of Applicants for theLicensure Examination

II. Scope of the Examination

III. Rating in the Licensure Examination


17/32

C. Other Legal and Regulatory

Requirements

I. Oath

II. Issuance of Certificates of

registration and Professional

Identification CardIII. Indication of Certificate of

Registration, Identification Card and

Professional Tax Receipt


18/32

L. O. 6Understand the need

for the professional accountantto develop capabilities and

competence after admission to

the profession


19/32

Developing Capabilities and

Competence After Admission to the

ProfessionAn individual may need further education

and development to acquire capabilitiesand competence required of professionalaccountants.

Advanced professional educationpursued at academic institutions orthrough the programs of professionalbodies

On-the-job-training and experienceprogramsOff-the-job-training; andContinuing professional development

(CPD) courses and activities


20/32

L. O. 7aKnow the

competency requirements forprofessional accountants in

public practice


21/32

Competency Requirements for

Professional Accountants in Public

PracticeA. Knowledge content

a) Audit of historical financial

information at an advanced level;

b) Financial accounting and reportingat an advanced level; and

c) Information technology

B. Practical Experience


22/32

L. O. 7bKnow the

competency requirements forprofessional accountants in

business


23/32


Professional Accountants in Business

Professional accountants in business forma very diverse constituency, and can befound working as employees, consultants,and self-employed owner-managers or

advisors.

Professional skills are part of the set ofcapabilities required by professional

accountants to demonstrate competence.Professional skills will be acquired in partduring initial qualification and training, butwill need to be developed and honored

throughout a career.


24/32


Professional Accountants in Business

In addition, with experience, thesuccessful professional accountant inbusiness can typically also becharacterized by a distinctive attitude,

outlook or way of thinking or mindset.1. Professionalism and Ethical Behavior2. Professional Judgment3. Organizational and Environmental

Awareness4. An Investor and Wider Stakeholder

Focus5. Change, Uncertainty and Complexity


25/32

How Competencies can be Developed

and Maintained

Some companies have specificdevelopment programs for professional

accountants in business which may

involve:a) Exposure to various parts of the

organization

b) Formal an informal training, includingcoaching and mentoring; and

c) Synchronization of development with

organization maturity


26/32

L. O. 8Understand theincreased globalization of

accounting and auditing


27/32

Increased Globalization of Accounting

and Auditing

This is brought about by the nature ofaccounting standards and the demandfor accounting-related information whichhave changed in several significant

ways. This changes include: Global Harmonization of Accounting

Standards Expanded Accountability

More Detailed Reporting Increased Risk Reporting Global Audit Standards


28/32

L. O. 9Be familiar with

what a CPA may expect inthe future


29/32

CPA Horizons 2025: A Road Map for the

Future

CPAs overwhelmingly agreed that theprofessions core purpose, Makingsense of a changing and complex world,remains relevant today and for the future

The professions core values remainedsubstantially unchanged The professions core competencies

evolved to reflect the 21stcentury

The services provided by CPAs havebecome so varied and diverse that theconcept of core services is no longerrepresentative of the profession


30/32

Ten Insights and Directions

The report highlighted 10 following insights withdetails on how each is likely to impact theprofession:

1. Technology

2. Pre-certification and Lifelong Learning

3. Worldwide Profession4. Pride in the Profession

5. Trusted Attester

6. Trusted Advisor

7. Market Permissions8. Marketplace

9. Value Proposition

10. Demographic Shifts


31/32

Core Values and Competencies

Core Values

Integrity

Competence

Lifelong Learning

Objectivity

Commitment to Excellence

Relevance in the Global Marketplace


32/32

Core Values and Competencies

Core Competencies:

Communication Skills

Leadership Skills

Critical-Thinking and Problem-Solving

Skills

Anticipating and Servicing Evolving

Needs

Synthesizing Intelligence to Insight

Integration and Collaboration

Documents

Professional Practice of Accountancy