3/9/2016
BoA Resolution No. 2016-03 and other
Resolutions affecting the Public Practice
February 2016
Recent BoA Resolutions Issued
BoA Resolution 262-205Prescribing new Board
Examination Subjects
BoA Resolution 274-2015Syllabus for new Board
Examination Subjects
BoA Resolution 275-2015Table of Specification
for new Board Examination Subjects
BoA Resolution 01-2016Completion of CPD
Requirements of Accounting Teachers to June 30,
2016
Recent BoA Resolutions Issued
BoA Resolution 263-2015Prescribing 2013 IFAC
Code of Ethics with slight modifications
BoA Resolution 244-2015Revised QAR
BoA Resolution 295-2015Accreditation of
Partners and CPA Professional Staff of Firms
BoA Resolution 02-2016Submission of
Engagement Reports
BoA Resolution 03-2016Certificate of FS
preparation and Accreditation of CPAs in C&I
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Recent BoA Resolutions Issued

BoA Resolution 05-2016Office verification and Quality
Assurance Checklist
BoA Resolution 06-2016Revised Accreditation Forms
Forthcoming issuances and developments:
Additional procedures for Accreditation of various CPAs and Certificate
of FS (Q&A)
CPD policies and procedures
MoA with PICPA on office verification (Q&A)
Lifting of injunction on QAR case
Implementation details of QAR and Engagement Reports (Q&A)
Schedule of violations with penalties and fines
Risk Based Red Flagging IT system
On line accreditation application and renewal of license
Document monitoring system

HIGHLIGHTS OF BoA RESOLUTION 03-2016 HIGHLIGHTS OF BoA RESOLUTION 03-2016

The Resolution 2015-03 was approved by PRC/BoA last
January 2016 and was published in Philippine Star on
January 25, 2016
BoA Resolution was recently issued to meet several
objectives
The rationale of the Reso is defined, and.
The BoA has communicated to the DOF, BIR and SEC
about the implementation of the Resolution and the
Q&A, and.
The BoA has coordinated with PICPA, ACPAPP, ACPACI
and other stakeholders on the information dissemination
The BoA has considered the recommendation of PICPA on
the mandatory/optional coverage
The over P10 Million gross sales threshold applies for the
submission of the Certificate
The same over P10M threshold on the requirement that only
CPA can prepare FS and sign the Certificate shall apply
Mandatory covered accounting periods to include only those
ending June 30, 2016 and subsequent periods
Extension of deadline of February 28, 2016 to April 30, 2016
file application for accreditation
Deadline of June 30,2016 to complete CPD requirements
remains
CPA hired after April 30 have 30 days from hiring to file
application

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DEVELOPMENTS AFFECTING THE CPAs
COMMERCE & INDUSTRY
BoA Resolution 2016-03 providing:
for the submission of Certification of Compilation Services
for the Preparation FS/Notes
Accreditation of CPAs in Commerce & Industry
Requirement that only CPAs are authorized to prepare FS
and notes to FS
BoA Resolution 2015-244 on the Quality Assurance Review
prescribing the quality assurance review of the audit work and
documents of the external auditor of the Company
Requirement that FS shall be submitted to external auditor not
later than two months from end of accounting period
Responsibility of external auditor
Notify clients of details of Resolution
Monitor the compliance of clients on
requirements of Resolution
Discuss findings on compliance/non-
compliance with clients
Include in working papers the findings and
action of clients on same
Report to BoA the findings which are not
acted upon by clients
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NEW DEVELOPMENTS AFFECTING THE CPAS IN THE PUBLIC
PRACTICE SECTOR PURSUANT TO RESOLUTION 03-2016
BoA Resolution 2016-03 providing
for the monitoring by the external auditor of the (1) submission
by clients of Certification of Compilation Services for the
Preparation FS/Notes and (2) the requirement that only CPAs
are authorized to prepare FS/Notes
notifying the BoA who among their clients are not complying
reiteration of the rule that CPAs in PP shall not prepare the
clients FS/notes
Services pertaining to compilation for non-Audit clients shall result
in new opportunities
The provisions under PSRS 4114 must be reviewed and learned
EXPANDING HORIZONS
Responsibility of external auditor
Preparation of notes to FS is part of
compilation services
Be familiar with PSRS/ISRS 4410
If the accountant becomes aware that information supplied by management is
incorrect, incomplete, or otherwise unsatisfactory, the accountant should consider
performing the above procedures and request management to provide additional
information. If management refuses to provide additional information, the
accountant should withdraw from the engagement, informing the entity of the
reasons for the withdrawal.
If the accountant becomes aware of material misstatements, the accountant should
try to agree appropriate amendments with the entity. If such amendments are not
made and the financial information is considered to be misleading, the accountant
should withdraw from the engagement .
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EXPANDING HORIZONS EXPANDING HORIZONS

EXPANDING HORIZONS EXPANDING HORIZONS

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NEW REQUIREMENTS FOR CPAs IN PUBLIC PRACTICE OF HAVING A VISITATION OF

THEIR OFFICE PURSUANT TO BOA RESOLUTION 05-2016

BoA Resolution 05-2016 provides for the visitation by a BoA deputy of the office of a CPA in
public practice and the accomplishment of the Quality Assurance Checklist (QAC)

The visit is part of the requirement for the initial application, renewal, or the retention of
accreditation of CPAs in public practice

The BoA deputy shall accomplish the QAC during the office visit and complete this within a
reasonable number of hours

The QAC shall be submitted to the PRC/BoA within three days from date of visitation done
immediately upon the filing of the accreditation application by the CPA in public practice

The QAC requires the indication of information on the basic features of a functional office of a
CPA engaged in public practice

The results of the office visitation and the QAC shall be considered by the BoA in evaluating
the accreditation of CPAs in public practice and in the forthcoming Quality Assurance
Program

CLOUD BASED RISK BASED RED FLAGGING I.T. SYSTEM
In the process of being pilot tested
Provides online submission of Engagement Reports
Requires no human intervention in the encoding of data in the ER
Benchmarks of engagement matrixes shall be determined
Cross checking with other regulators data banks shall be arranged
Confidentiality, security and information access protocols shall
be provided
FEATURES OF BOA RESOLUTION 295-2015 REQURING THE
ACCREDITATION OF PARTNERS AND CPA PROFESSIONAL STAFF
Mandates the provision of law that Partners and CPA professional staff shall
individually apply for accreditation by February 29, 2016 or a later date that
may be prescribed by BoA
This is separate and different from the present provision of accreditation of
Sole Practices, Partnerships and Firms
Will ensure that all involved in practice will be updated in CPD requirements
The accreditation shall be linked to the partnership and firm
Change/s in affiliation shall be reported to BoA within 30 days from date of
change

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For reference: For more information:

Question and Answer dated Feb. 24, 2016
Various resolutions issued late December and http://www.prc.gov.ph
July batch: 289 October batch: 258
early January
Forthcoming resolutions and issuances http://boa.com.ph
BoA Resolution 59-2012 and 774-2013 (CPD) NCR: 46.1%

IRR for Republic Act no 9298 www.facebook.com/professional

Comment of BoA Chairman in response to PDI regulatory board of accountancy
article of Atty. Raul Pabrica

New EH Developments in the Commerce & Industry Sector New EH Developments in the Commerce & Industry Sector
Dialogue with Affiliated Accountancy Certification Bodies
ASEAN MRA for Accountancy Services
MOEHO Awards Run after Erring CPAs Program
Prescribing Schedule of Fines and Penalties
Integrity Initiative Whistle Blower Program
July batch: 289 October batch: 258 Streamlining
July batch: 289 the Administrative Investigation
October batch: Process
258
New Code of Ethics CPA for CPA project
Improvements in the CPD
Performance Governance System Active coordination of BoA with PICPA and ACPACI
Academic Industry linkages
E-Library Project Acct initiative
NCR: 46.1% NCR: 46.1%
BoA Internship Program
Survey of CPAs in Commerce & Industry Volunteer Program
Publications: Highest Standards Technical Journal, News Ledger magazine,
Accountancy Case development project involving Corporate issues Debit Credit column ABC of Accountancy atbp. project
Global accountancy bodies linkages
Revision of Accountancy Law

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New EH Developments in the Academe Sector

Revision in Accountancy Program and Tracks For more information:
Revision in CPA Examination Syllabi
Introduction of the Doctoral Program on Accountancy
ASEAN MRA for Accountancy Services
July batch:
Improvements
289
in CPD October batch: 258
http://www.prc.gov.ph
July batch: 289 October batch: 258
Active coordination with PICPA, NACPAE and NFJPIA
Academic Industry linkages


Project Acct initiative
BoA Internship Program
http://boa.com.ph
NCR: 46.1%
Volunteer Program NCR: 46.1%
Publications: Highest Standards Technical Journal,
News Ledger magazine, Debit Credit column www.facebook.com/professional
Enhanced Inspection of Schools
AtTEST Student Competition regulatory board of accountancy