Journal 4

1. What is a professional accountant? Identify the characteristics that makes Accountancy a profession. -

A professional accountant is any persons who have a certificate given by the Boards of Accountancy (BOA) whom can be a Certified Public Accountant and such. It can also be delineates as an individual who has proficiency and aptitude in the area of accounting. The characteristics that make Accountancy a profession are: systematic theory, professional authority, community sanction, regulations Code, and a culture. 2. What are the different scope of practice of accountancy? Identify and each and explain the scope of practice.

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Practice of Public Accountancy – The professional accountants who gives professional services despite their differences in classification. He shall also not be known to work or engage in any business or occupation that might violate any standards or frameworks. The professional accountant provides advisory, audit, and any related services to intended customers.

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Practice in Commerce and Industry – The professional accountants who performs this are solely employed in a private entity which involved them in decision making for they need your knowledge in the profession of accountancy.

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Practice in Education/ Academe – This shall inaugurate in an individual (professors, researchers, and/or trainers) who must be in an educational institution involving teaching of accounting and related subjects such as taxation and law. They are also required to take units before teaching.

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Practice in the Government – It simply refers to professional accountants working under the different government agencies or government-owned controlled corporation. 3. What are the different standard setting bodies that affect the practice of accountancy?

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International Federation of Accountants (IFAC) – This is the international counterpart of PICPA. It involves the developing and enhancing the profession of Accountancy therefore it can dispense services to the world of with excellent practice of profession in the interest of the public.

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International Accounting Standards Boards (IASB) – Previously, it was called International Accounting Standard then became International Accounting Standard Committee before IASB. It consists of 14 Board members (12 are full time). IASB’s mission is to develop a single set of excellent global accounting standards in which they also cooperate with other national accounting standardsetters around the world.

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Financial Reporting Standards Council (FRSC) – this organization is in charge of carrying its power and responsibilities to adapt to the rules of International Accounting Standard Boards to assist the Board of Accountancy in implanting such rules in the country.

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International Auditing Practices Committee (IAPC) – it is in charge to oversee growth issuance and vouch functions to make the auditing practices more

uniform. They are also the one who releases international Standard on Auditing (ISA’s) which are required to be followed and applied in auditing. -

Auditing and Assurance Standards Council (AASC) – they are to assist the Board of Accountancy to carry out its responsibilities in adopting the assurance standards and auditing in the country. 4. What are the different government agencies that affect the practice of accountancy?

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Professional Regulation Commission (PRC) – it manages, executes and impose the policies and regulations of the National Government when it comes to licensing various professions and maintaining the standards and ethics of all professions. It also has an authority as stated in PRC Modernization Act of 2002, having the overall authority to all regulatory board in which Board of Accountancy is part of.

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Professional Regulatory Board of Accountancy (BOA) – This consists of 6 members with a chairman and administered the Accountancy Law. It also has the rights to issue and revoke CPA certificates and license grants. The function of BOA is provided for Philippine Accountancy Act of 2004.

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Securities and Exchange Commission (SEC) – it synchronized the operations and registrations of large companies and corporations or partnerships in the whole Philippines. They are also to assists in providing prospective investors with credible and reliable information which is one of the deciding factors to make investing decisions.

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Commission on Audit (COA) – the topmost agency in which it audits the governments funds if they are using it in compliance with law of the Philippines and if the programs and activities they are planning and doing are done efficiently and effectively.

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Bureau of Internal Revenue (BIR) – its responsibility to enforce tax, laws, rules and regulations is one of its main tasks. It reviews the income tax return of all individuals and corporations who have cashflow as it is required by the National Internal Revenue Code. 5. What is Continuing Professional Development? Why does a professional accountant need to do Continuing Professional Development?

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Continuing Professional Development is basically the underway process of maintaining, developing and documenting the professional skills you achieve and learned by courses or training. It also helps you to become conscious and proactive in your work field. An accountant needs to do CPD in order to continue its work using its profession and ensures that you maintain your competence in the field. 6. What are the methods to obtain Continuing Professional Development Units?

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Professionals can gain CPD units by attending programs like formal learning, non-formal learning, informal learning, self-directed learning, online learning activities, and professional work experience. An accountant needs 120 credit units in order to renew their licenses and continue to practice their expertise.

Reference/s: Laco, R., et.al. (2022). Quicknotes in Auditing Theory: For Accountancy Students and CPA Reviewees (2020 ed.).

Cabrera, M. & Cabrera G. (2020). Principles of Auditing and Assurancce Services(20202021 ed.). GIC Enterprises & Co., Inc. ACCOUNTINGVERSE

(2021).

Areas

of

Accounting

Practice.

Retrieved

from

https://www.accountingverse.com/accounting-basics/areas-of-accounting-practice.html Depedtambayan (2013-2018). How to Earn CPD Units to Renew Your PRC License. Retrieved from https://www.depedtambayan.ph/earn-cpd-units-to-renew-prc-license/