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 (BOA), the Professional Regulation Commission (PRC), and sector regulators.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 1 by serving as the designated implementing arm of the Quality Assurance Review Program (QARP) under BOA Resolution No. 57, Series of 2023. PICPA established the Quality Assurance Review Office (QARO) to implement QARP under BOA oversight, including registration of firms and Certified Public Accountant practitioners, conduct of quality assurance reviews, issuance of review reports, and monitoring of remediation requirements. BOA Resolution No. 02, Series of 2025 amended the revised QARP rules, reflecting continued regulatory development of the program.

PICPA has also supported members through awareness activities, guidance, and training related to QARP registration, audit quality, and implementation of Philippine Standards on Quality Management. Auditors of entities regulated by the Securities and Exchange Commission (SEC) are subject to separate accreditation and inspection requirements through the SEC Oversight Assurance Review Inspection Program. In January 2025, the Supreme Court affirmed the SEC’s authority to accredit external auditors of covered entities, supporting continued implementation of the SEC inspection framework.

PICPA is encouraged to continue working with the BOA, the PRC, and sector regulators to support full operationalization of QARP across all mandatory audits, strengthen links between quality assurance findings and remedial or disciplinary actions, and expand practical implementation support for firms applying quality management standards.

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, Republic Act No. 10912, the Continuing Professional Development Act of 2016, and related regulations issued by the Professional Regulatory Board of Accountancy (BOA), the Professional Regulation Commission (PRC), and the Commission on Higher Education (CHED).

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 2 through the delivery of continuing professional development programs, technical training, conferences, webinars, and learning resources covering accounting, auditing, ethics, sustainability reporting, taxation, and emerging professional issues. PICPA works with the BOA, the PRC, CHED, accredited continuing professional development providers, and academic institutions to support professional competence and lifelong learning for Certified Public Accountants.

PICPA has continued to expand member support through virtual and in-person learning programs, technical updates, and competency development initiatives designed to assist members in implementing new professional standards and responding to evolving market demands. The institute also contributes to discussions on accountancy education, curriculum development, and professional competency requirements through its engagement with regulators, educators, and other stakeholders.

PICPA is encouraged to continue working with the BOA, the PRC, and CHED to promote closer alignment of initial and continuing professional development requirements with the latest International Education Standards, support consistent implementation of competency-based learning approaches, and strengthen monitoring of continuing professional development outcomes across the profession.

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 based on 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 continuing professional development programs, technical updates, seminars, conferences, and implementation guidance on auditing and assurance standards. PICPA assists members in understanding and applying new and revised Philippine Standards on Auditing and related pronouncements through training programs, technical publications, and professional learning activities.

PICPA has continued to support implementation of recently adopted standards, including Philippine Standards on Quality Management, International Standard on Auditing 600 (Revised), International Standard on Auditing 570 (Revised 2024), and other updates issued by the Auditing and Assurance Standards Council. The institute also works with regulators, standard setters, audit practitioners, and academic institutions to promote awareness of developments affecting audit quality and professional practice.

PICPA should continue monitoring developments in international auditing and assurance standards and provide timely implementation support to members as new and revised standards are adopted in the Philippines.

Current Status: Sustain

Ethical requirements for professional accountants 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 (BOA) and the Professional Regulation Commission (PRC). In 2025, the BOA adopted the Code of Ethics for Professional Accountants in the Philippines (2024 Edition), based on the 2024 International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 4 by promoting implementation of the Code of Ethics through continuing professional development programs, technical seminars, ethics-focused training, publications, and awareness activities. PICPA provides members with guidance on ethical and independence requirements and supports understanding of new and revised provisions of the Code through conferences, webinars, and technical updates.

PICPA also contributes to the ethical framework through its participation in the development and implementation of ethical requirements and supports regulatory processes through delegated fact-finding functions in investigation and disciplinary matters under the oversight of the BOA and the PRC.

PICPA is encouraged to continue working with the BOA and the PRC to support timely adoption of the latest International Ethics Standards Board for Accountants pronouncements, expand implementation support for new ethical and independence requirements, and promote continued alignment of the national Code with the latest international standards.

Current Status: Review & Improve

Public sector accounting standards in the Philippines are established by the Commission on Audit (COA), which has adopted accrual-basis International Public Sector Accounting Standards with Philippine Application Guidance for application by national government agencies, local government units, and government corporations classified as non-commercial public sector entities.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 5 by promoting awareness and understanding of public sector accounting standards, public financial management reforms, and government accounting requirements through continuing professional development programs, conferences, seminars, and technical learning activities. PICPA also provides a platform for public sector accountants and auditors to discuss developments affecting implementation of IPSAS and related COA guidance.

Recent jurisdictional developments include the continued issuance of COA implementation guidance, including COA Circular No. 2024-009 on IPSAS 39, Employee Benefits, and related Philippine Application Guidance. These developments support ongoing implementation of accrual-basis IPSAS in the public sector.

PICPA is encouraged to strengthen its collaboration with COA and other public sector stakeholders to provide more targeted implementation support on IPSAS, expand capacity-building activities for public sector members, and further document how its activities support implementation of SMO 5 requirements.

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) under the supervision of the Professional Regulation Commission (PRC). Additional enforcement powers apply to auditors of regulated entities through sector regulators, including the Securities and Exchange Commission.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 6 through its ethics and disciplinary arrangements and by performing fact-finding functions delegated by the BOA and the PRC. PICPA receives and reviews complaints involving its members, conducts preliminary investigations, and refers matters to the BOA and the PRC for consideration and adjudication where appropriate. PICPA also promotes awareness of professional responsibilities and disciplinary procedures through ethics-focused training, continuing professional development activities, and member guidance.

Recent regulatory developments include the continued implementation of the Quality Assurance Review Program and the resumption of Securities and Exchange Commission oversight inspection activities following confirmation of the regulator’s authority to accredit and inspect auditors of covered entities. These developments strengthen the broader regulatory framework and may support increased coordination between quality assurance, oversight, and disciplinary processes.

PICPA is encouraged to continue working with the BOA, the PRC, and sector regulators to strengthen coordination among investigation and disciplinary systems, promote greater linkage between quality assurance findings and disciplinary processes, and enhance transparency regarding disciplinary outcomes and enforcement activities.

Current Status: Review & Improve

Financial reporting standards in the Philippines are adopted under the authority of the Professional Regulatory Board of Accountancy through the Financial and Sustainability Reporting Standards Council and are based on IFRS Accounting Standards issued by the International Accounting Standards Board. In 2022, the Professional Regulatory Board of Accountancy approved the adoption of IFRS Sustainability Disclosure Standards and expanded the mandate of the Financial Reporting Standards Council to include sustainability reporting standards.

The Philippine Institute of Certified Public Accountants (PICPA) supports fulfillment of SMO 7 through continuing professional development programs, technical guidance, publications, conferences, and member outreach activities focused on financial reporting and sustainability reporting requirements. PICPA provides implementation support on new and revised Philippine Financial Reporting Standards, IFRS for SMEs, and sustainability disclosure requirements adopted in the jurisdiction.

PICPA has continued to assist members in understanding developments in financial reporting, including updates issued by the Financial and Sustainability Reporting Standards Council and the International Accounting Standards Board, as well as emerging sustainability reporting requirements. Through seminars, webinars, technical discussions, and learning resources, PICPA promotes consistent application of financial reporting standards across the profession.

PICPA should continue monitoring developments in international financial reporting and sustainability reporting standards and provide timely implementation support to members as new and revised standards are adopted in the Philippines.

Current Status: Sustain