PRC BOA amended Resolution No. 3-2016

Regulations

March 30, 2016

This Accounting Alert is issued to provide information about the recently released Board of Accountancy (BOA) Resolution No. 68-2016, Amending Resolution No. 3, Series of 2016, entitled "Requirement for the Submission of Certificate by the Responsible Certified Public Accountants (CPAs) on the Compilation Services for the Preparation of Financial Statements (FS) and Notes thereto," Mandating External Auditors to Monitor Compliance thereto, and for other purposes.

The amendments, among others, are as follows:

  • extension of the deadline for the filing of application for accreditation by CPAs in commerce and industry from February 29, 2016 to April 30, 2016
  • application within one month after the date of hiring of certifying CPAs who are hired after the April 30, 2016 deadline
  • release of Certificates of Accreditation of applicants with undertaking to comply with the Continuing Professional Development (CPD) requirement until June 30, 2016 will only be made upon submission of proof of compliance therewith
  • accredited CPA who retire, resign or be dismissed or separated from current employment shall notify the Standards and Inspection Division (SID) of PRC within one yearfrom severance of employment; if the same CPA os subsequently re-employed and will be the certifying CPA of the new employer, such CPA shall apply for accreditation with BOA under the new employer within one month from hiring date
  • certifying CPAs who also concurrently perform compilation services for other related companies/persons shall file only an application for accreditation for the employer; however, the CPAs shall indicate in the "Detailed Description of Work" the following:
    1. names of the other companies in which the CPA is also doing compilation services, and,
    2. that the preparation of the FS of such companies are also the responsibility and duty of the CPA
  • CPAs shall complete the preparation of the FS and notes thereto for presentation to the external auditor/s not later than two months after the end of the accounting period
  • external auditor/s shall bring to the attention of management any instance of omission or non-compliance with the provisions of BOA Resolutions 3-2016 and 68-2016, including:
    1. failure of the audit client to engage a duly accredited CPA who is responsible for preparing the FS,
    2. non-attachment of the Certificate in the annual statutory FS, and,
    3. other violations of aforementioned BOA resolutions and any subsequent amendments thereto'
  • external auditor/s shall notify BOA of the foregoing omissions and non-compliance within one month from the conclusion of the audit engagement

See attached copy of BOA Resolution 68-2016.

P&A Accounting Alerts are issued to keep our clients updated with the latest developments in financial reporting. These are not intended to be a substitute for professional advise. If you would like to unsubscribe, or add a colleague or a friend to our mailing list, please let us know by return e-mail. For inquiries and suggestions on how the Accounting Alert may be even more useful to you, e-mail Mabel.Comedia@ph.gt.com or Jerald.Sanchez@ph.gt.com or call 988-2288.