Philippine Institute of Certified Public Accountants

Quality assurance review requirements for auditors in the Philippines are established under Republic Act No. 9298, the Philippine Accountancy Act of 2004, with oversight exercised by the Professional Regulatory Board of Accountancy and sector regulators.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 1 by acting as the implementing arm of the Quality Assurance Review Program under arrangements approved by the Board of Accountancy. Through the Quality Assurance Review Office, PICPA supports the operationalization of firm-level and engagement-level quality assurance reviews, facilitates registration of audit firms and practitioners into the program, issues inspection reports, and supports monitoring of remediation plans linked to accreditation renewal. PICPA has also focused on helping its members understand and prepare for quality management requirements through audit methodology workshops, guidance materials, and training on the implementation of quality management standards.

PICPA is encouraged to continue strengthening the operational consistency and coverage of the Quality Assurance Review Program across all mandatory audits and to support the integration of quality assurance review findings into the investigative and disciplinary system, in line with the requirements of SMO 1.

Current Status: Review & Improve

Initial professional development, licensure, and continuing professional development requirements for professional accountants in the Philippines are established under Republic Act No. 9298, the Philippine Accountancy Act of 2004, and the Continuing Professional Development Act of 2016, and are administered by the Professional Regulatory Board of Accountancy and the Professional Regulation Commission.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 2 by delivering continuing professional development programs aligned with international education standards, supporting professional competence throughout the career lifecycle, and working with regulators, academic institutions, and training providers to promote awareness of international education benchmarks. PICPA provides continuing professional development programs, learning resources, and technical updates to assist members in meeting competency requirements and understanding evolving professional expectations.

PICPA is encouraged to continue working with the Professional Regulatory Board of Accountancy, the Professional Regulation Commission, and the Commission on Higher Education to further strengthen alignment of initial and continuing professional development requirements with the latest International Education Standards, including requirements related to professional competence and the development of engagement partners.

Current Status: Review & Improve

Auditing standards in the Philippines are adopted under the authority of the Professional Regulatory Board of Accountancy through the Auditing and Assurance Standards Council and are substantially converged with the International Standards on Auditing issued by the International Auditing and Assurance Standards Board.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 3 by providing ongoing training, technical guidance, and implementation support to its members on auditing standards, including new and revised International Standards on Auditing and related quality management standards. PICPA organizes seminars, workshops, and continuing professional development activities to assist members in understanding and applying auditing standards in practice and supports dissemination of updates issued by the relevant standard-setting bodies.

PICPA is encouraged to continue supporting timely implementation of newly issued and revised International Standards on Auditing and to work with the relevant authorities to facilitate continued alignment of Philippine Standards on Auditing with the latest standards in effect.

Current Status: Review & Improve

Ethical requirements for professional accountants in the Philippines are established under Republic Act No. 9298, the Philippine Accountancy Act of 2004, with the Code of Ethics adopted and applied under the oversight of the Professional Regulatory Board of Accountancy (BOA) and the Professional Regulation Commission (PRC).

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 4 by implementing the International Code of Ethics for Professional Accountants (including International Independence Standards) for all its members and by providing ethics-focused training, guidance, and awareness programs. PICPA supports member understanding of ethical requirements through seminars, technical updates, and advisory materials and assists regulators through delegated fact-finding activities in investigative and disciplinary matters.

PICPA is encouraged to continue supporting the timely incorporation and implementation of the latest revisions to the International Code of Ethics and to work with the relevant authorities to maintain alignment with the most current version in effect.

Current Status: Review & Improve

Public sector accounting standards in the Philippines are established by government authorities, primarily through the Commission on Audit, using national standards that reference International Public Sector Accounting Standards.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 5 by promoting awareness and understanding of public sector accounting standards and international best practices among its members through training programs, seminars, and continuing professional development activities. PICPA also supports broader capacity building in public sector accounting by providing learning opportunities and technical discussions related to International Public Sector Accounting Standards and public financial management reforms.

Given the nature of its mandate and membership composition, PICPA does not have direct responsibility for establishing public sector accounting standards in the jurisdiction and continues to maintain appropriate support activities within its sphere of influence.

Current Status: Sustain

Investigation and disciplinary arrangements for professional accountants in the Philippines are established under Republic Act No. 9298, the Philippine Accountancy Act of 2004, and are administered by the Professional Regulatory Board of Accountancy (BOA) and the Professional Regulation Commission (PRC).

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 6 by operating investigative and disciplinary procedures for its members under delegated authority, including receiving complaints, conducting fact-finding investigations, and referring cases to the BOA and the PRC for adjudication and sanctioning. PICPA also supports member understanding of disciplinary processes and professional responsibilities through awareness activities and guidance on ethical and professional conduct.

PICPA is encouraged to continue strengthening the linkage between quality assurance review findings and the investigative and disciplinary system and to work with the relevant authorities to ensure that disciplinary processes remain fully aligned with the requirements of SMO 6.

Current Status: Review & Improve

Financial reporting standards in the Philippines are adopted under the authority of the Professional Regulatory Board of Accountancy (BOA) through the Financial and Sustainability Reporting Standards Council (FSRSC) and are based on IFRS Accounting Standards issued by the International Accounting Standards Board.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 7 by providing training, technical guidance, and continuing professional development activities to assist members in understanding and applying financial reporting standards, including updates to IFRS Accounting Standards and developments in sustainability reporting following the adoption of IFRS Sustainability Disclosure Standards. PICPA supports implementation through seminars, publications, technical updates, and member engagement on financial reporting and disclosure requirements.

PICPA is encouraged to continue supporting the timely incorporation and implementation of the latest IFRS Accounting Standards and related sustainability disclosure standards and to work with the relevant authorities to maintain continued alignment with the most current standards in effect.

Current Status: Review & Improve