Saturday, January 23, 2016


The Certified Public Accountant (CPA) employed or tasked by an entity (including a cooperative) to prepare its Financial Statements (FS) and Notes to the FS, is required by the Professional Regulatory Board of Accountancy (PRBoA) to comply with additional regulations.

First, the PRBoA requires the submission of a Certificate, to be prepared and signed by the CPA, that he/she/it prepared the FS and Notes to the FS, after having been employed/tasked to assist management in the preparation and presentation of the latter's financial information.

Under PRBoA Resolution No. 3, series of 2016, done on January 19, 2016, the CPA preparing the FS, Notes to the FS, and the Certificate, shall first be accredited by the PRBoA, for this purpose.

As such, the CPA shall apply with PRBoA for accreditation, not later than February 29, 2016, and shall comply with the Continuing Professional Development requirements, as prescribed in existing rules and regulations, not later than June 30, 2016, and after signing the corresponding Affidavit of Undertaking to that effect, the Resolution said.

The Resolution also emphasized that the preparation of an entity's financial information in accordance with the applicable financial reporting framework and reports, as required by accounting and auditing standards, is the job of the CPA.

Moreover, the CPA preparing these documents shall either be (1) CPA/s employed by he organization (CPA employee), or (2) CPA/s contracted by the organization to perform said service.

If the contracted CPA shall be preparing the FS and Notes to the FS, (and Certificate), said CPA shall NOT be the External Auditor/CPA who shall be rendering the attest services to the organization.

Upon conviction, violators shall be fined of not less than P50, 000.00, or by imprisonment for a period not exceeding two years or both, without prejudice to administrative sanctions, including possible  cancellation of the CPA license.

The forms/format for the Certificate, Affidavit of Undertaking, Application Form and requirements, etc., including a copy of the Resolution may be downloaded at


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