Philippines

The statutory framework for accounting and auditing in the Philippines is established primarily by Republic Act No. 9298, the Philippine Accountancy Act of 2004, the Revised Corporation Code of the Philippines, the Securities Regulation Code, and sector-specific requirements issued by the Securities and Exchange Commission (SEC), the Bangko Sentral ng Pilipinas (BSP), the Insurance Commission, and other regulators.

The financial reporting framework is based on Philippine Financial Reporting Standards (PFRS), which are adopted from International Financial Reporting Standards issued by the International Accounting Standards Board. The Philippines has also adopted the IFRS for SMEs Accounting Standard as the Philippine Financial Reporting Standard for Small and Medium-sized Entities (PFRS for SMEs). The Financial and Sustainability Reporting Standards Council (FSRSC), operating under the authority of the Professional Regulatory Board of Accountancy (BOA), is responsible for establishing and promulgating accounting standards in the jurisdiction. Standards adopted by the FSRSC are subject to approval by the BOA and the Professional Regulation Commission (PRC). In 2022, the BOA approved the adoption of IFRS Sustainability Disclosure Standards and renamed the Financial Reporting Standards Council as the FSRSC, expanding its mandate to include sustainability reporting standards.

The SEC requires domestic publicly accountable entities under its supervision to apply full PFRS. Qualifying entities may apply PFRS for SMEs in accordance with the SEC’s differential reporting framework. The BSP similarly requires banks and other supervised financial institutions to prepare financial statements in accordance with PFRS. Sector-specific requirements may apply to regulated entities in addition to the general financial reporting framework.

Statutory audit requirements are established under the Revised Corporation Code of the Philippines, the Securities Regulation Code, tax legislation, and sector-specific laws applicable to regulated entities. Entities subject to statutory audit requirements must have their financial statements audited by an independent Certified Public Accountant accredited to practice public accountancy and, where applicable, accredited by the relevant sector regulator.

Auditing standards are established by the Auditing and Assurance Standards Council (AASC), operating under the authority of the BOA. The AASC adopts Philippine Standards on Auditing and other pronouncements based on standards issued by the International Auditing and Assurance Standards Board. International Standards on Quality Management 1 and 2 and International Standard on Auditing 220 (Revised) have been adopted as Philippine standards. New and revised pronouncements become effective following adoption by the AASC and approval by the BOA and the PRC.

The accountancy profession in the Philippines is regulated under Republic Act No. 9298, the Philippine Accountancy Act of 2004, through a shared regulatory model involving the Professional Regulation Commission (PRC), the Professional Regulatory Board of Accountancy (BOA), and the Philippine Institute of Certified Public Accountants (PICPA).

The PRC, operating under the Office of the President, is responsible for the regulation and supervision of all regulated professions in the Philippines. The BOA, operating under the PRC, is the statutory authority responsible for regulating the accountancy profession. Pursuant to Republic Act No. 9298, the BOA is responsible for the registration, licensing, and practice of accountancy; administering licensure examinations; adopting accounting, auditing, ethical, and quality management standards; overseeing quality assurance review arrangements; investigating professional misconduct; and imposing disciplinary sanctions.

The Certified Public Accountant (CPA) designation is the protected professional title for accountancy professionals in the Philippines. Entry into the profession is regulated under Republic Act No. 9298. Candidates are required to hold a Bachelor of Science in Accountancy degree from a Commission on Higher Education-recognized institution, pass the CPA licensure examination administered by the BOA, and register with the PRC. Individuals seeking to engage in public practice must additionally obtain a Certificate of Accreditation from the BOA and satisfy prescribed practical experience and continuing professional development requirements.

Auditors in public practice are subject to additional regulatory requirements. Only CPAs and audit firms accredited by the BOA may perform statutory audits. Auditors of public interest entities are also subject to accreditation, inspection, and oversight requirements established by sector regulators, including the Securities and Exchange Commission (SEC), the Bangko Sentral ng Pilipinas (BSP), the Insurance Commission, and the Cooperative Development Authority, depending on the nature of the audited entity.

PICPA is the accredited national professional accountancy organization in the Philippines. Membership in PICPA is mandatory for all registered CPAs. PICPA supports the development and implementation of professional and ethical requirements, continuing professional development, and quality assurance initiatives under the oversight of the BOA and the PRC. PICPA also assists in investigation and disciplinary processes through fact-finding functions delegated by the BOA and the PRC.

This framework reflects a shared regulatory model in which statutory oversight is exercised by the PRC and the BOA, while PICPA plays a significant role in supporting professional standards, ethics, education, quality assurance, and member development.

There is no single independent audit oversight authority responsible for all statutory audits in the Philippines. Audit oversight is carried out through a shared regulatory framework involving the Professional Regulation Commission (PRC), the Professional Regulatory Board of Accountancy (BOA), the Philippine Institute of Certified Public Accountants (PICPA), and sector-specific regulators.

The BOA operates under the supervision of the PRC pursuant to Republic Act No. 9298, the Philippine Accountancy Act of 2004. The BOA is responsible for registering, licensing, and accrediting Certified Public Accountants and audit practitioners; adopting auditing and ethical standards; overseeing quality assurance review arrangements; and administering investigation and disciplinary processes. PICPA supports the implementation of these arrangements under the oversight and delegated authority of the BOA and the PRC.

Auditors of public interest entities are subject to additional oversight by sector regulators. The Securities and Exchange Commission (SEC) accredits and oversees external auditors of entities under its supervision, including issuers and public companies, and conducts inspections through the SEC Oversight Assurance Review Inspection Program. The authority of the SEC to accredit external auditors and conduct audit oversight inspections was affirmed by the Supreme Court in January 2025. Auditors of banks, insurance companies, and cooperatives are also subject to accreditation and oversight by the Bangko Sentral ng Pilipinas, the Insurance Commission, and the Cooperative Development Authority, respectively.

The SEC is a member of the International Forum of Independent Audit Regulators, supporting cooperation with other audit oversight authorities and alignment with international audit oversight practices.

The Philippine Institute of Certified Public Accountants (PICPA)

The Philippine Institute of Certified Public Accountants (PICPA) was established in 1929 and is the accredited national professional accountancy organization recognized by the Professional Regulation Commission (PRC) and the Professional Regulatory Board of Accountancy (BOA). Membership in PICPA is mandatory for all registered Certified Public Accountants in the Philippines.

PICPA serves as the principal professional accountancy organization in the jurisdiction and supports the development and regulation of the profession. Its responsibilities include promoting high professional and ethical standards, supporting the implementation of professional and ethical requirements established by the BOA, advancing accountancy education and continuing professional development, protecting and promoting the Certified Public Accountant designation, supporting quality assurance initiatives, and assisting with investigation and disciplinary processes through fact-finding functions delegated by the BOA and the PRC.

PICPA operates through a national office and a network of regional and local chapters throughout the Philippines. The organization works closely with the BOA, the PRC, educational institutions, regulators, and other stakeholders on matters affecting the accountancy profession.

In addition to being a member of the International Federation of Accountants, PICPA is a member of the ASEAN Federation of Accountants and the Confederation of Asian and Pacific Accountants. Through these organizations, PICPA contributes to regional initiatives aimed at strengthening the accountancy profession and promoting the adoption and implementation of international standards.

The quality assurance review system in the Philippines is established under Republic Act No. 9298, the Philippine Accountancy Act of 2004. The Professional Regulatory Board of Accountancy (BOA), operating under the Professional Regulation Commission (PRC), is responsible for oversight of the quality of audits of financial statements and the operations of Certified Public Accountant practitioners.

The BOA established the Quality Assurance Review Program (QARP) under BOA Resolution No. 57, Series of 2023, which designates the Philippine Institute of Certified Public Accountants (PICPA) as the implementing arm of the program. The Quality Assurance Review Office (QARO), established by PICPA, implements QARP under BOA oversight. In 2025, BOA Resolution No. 02 amended the 2023 revised rules governing QARP.

Auditors of entities regulated by the Securities and Exchange Commission (SEC) are subject to additional accreditation and inspection requirements. The SEC conducts audit oversight inspections through its SEC Oversight Assurance Review Inspection Program. In January 2025, the Supreme Court affirmed the authority of the SEC to accredit external auditors of covered entities and confirmed that the SEC’s accreditation function is complementary to BOA licensure.

While a quality assurance review system has been established and is operational for segments of mandatory audits, publicly available information indicates that the BOA QARP is still being operationalized across the profession. Accordingly, the quality assurance review system partially incorporates the requirements of SMO 1 and is assessed as Partially Adopted.

The Philippine Standards on Quality Management, including Philippine Standard on Quality Management 1 and Philippine Standard on Quality Management 2, were approved by the BOA in 2021 and adopted for application in the jurisdiction.

Current Status: Partially Adopted

Initial and continuing professional development requirements for Certified Public 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 Regulation Commission (PRC), the Professional Regulatory Board of Accountancy (BOA), and the Commission on Higher Education (CHED).

Entry into the profession requires completion of a Bachelor of Science in Accountancy degree from a CHED-recognized institution, passing the Certified Public Accountant licensure examination administered by the BOA, and registration with the PRC. CHED Memorandum Order No. 27, Series of 2017 establishes revised policies, standards, and guidelines for the Bachelor of Science in Accountancy program and adopts an outcomes-based curriculum intended to support the development of entry-level professional competence.

Continuing professional development is mandatory for all registered and licensed professionals under Republic Act No. 10912. BOA Resolution No. 358, Series of 2016 increased the continuing professional development requirement for Certified Public Accountants to 120 credit units over a three-year compliance period and aligned the thematic areas with competence areas. However, the Professional Regulation Commission has continued to apply transitional measures for renewal of professional identification cards, including acceptance of continuing professional development undertakings through June 30, 2026.

The jurisdiction-level framework incorporates education, examination, practical experience, and continuing professional development requirements for Certified Public Accountants. However, due to the continued transitional implementation of continuing professional development requirements and the absence of public evidence confirming full alignment with the International Education Standards in effect as of the time of the assessment, the framework is partially aligned with the relevant SMO 2 requirements.

Current Status: Partially Adopted

The Professional Regulatory Board of Accountancy (BOA), pursuant to Republic Act No. 9298, the Philippine Accountancy Act of 2004, has authority to adopt auditing standards in the Philippines. The BOA established the Auditing and Assurance Standards Council (AASC) to adopt and promulgate auditing and assurance standards for application in the jurisdiction.

The AASC adopts Philippine Standards on Auditing (PSA), which are based on International Standards on Auditing (ISA) and other pronouncements issued by the International Auditing and Assurance Standards Board (IAASB). New and revised PSA become effective following approval by the AASC, BOA, and the Professional Regulation Commission, and publication where required. The AASC has adopted recent IAASB pronouncements, including International Standard on Quality Management 1, International Standard on Quality Management 2, International Standard on Auditing 220 (Revised), International Standard on Auditing 600 (Revised), International Standard on Auditing 570 (Revised 2024), and related conforming amendments, as Philippine standards.

Based on publicly available information, the Philippines has adopted ISA in effect as of the time of the assessment as PSA for application in mandatory audits.

The Philippines has also taken steps to implement the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).

Current Status: Adopted

Ethical requirements for professional accountants in the Philippines are established under Republic Act No. 9298, the Philippine Accountancy Act of 2004. The Professional Regulatory Board of Accountancy (BOA), operating under the Professional Regulation Commission (PRC), is responsible for prescribing and adopting ethical requirements for Certified Public Accountants in the jurisdiction.

The BOA has adopted the 2024 edition of the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA) as the Code of Ethics for Professional Accountants in the Philippines (2024 Edition), with amendments to align with national laws and regulatory requirements. The adoption was formalized through PRC BOA Resolution No. 48, Series of 2025. The national code is published by the PRC and the Philippine Institute of Certified Public Accountants.

The latest IESBA Handbook in effect as of the time of the assessment is the 2025 edition. Accordingly, the jurisdiction-level framework is partially aligned with the relevant SMO 4 requirements, and the Philippines is assessed as Partially Adopted.

Current Status: Partially Adopted

Public sector accounting standards in the Philippines are established by the Commission on Audit (COA), which has constitutional and statutory authority over government accounting and auditing. The COA adopted Philippine Public Sector Accounting Standards through COA Resolution No. 2014-003. These standards were initially based on accrual-basis International Public Sector Accounting Standards (IPSAS) and included Philippine Application Guidance to address jurisdiction-specific requirements.

The COA subsequently updated the standards through COA Resolution No. 2017-006, based on the 2016 Handbook of International Public Sector Accounting Pronouncements, and COA Resolution Nos. 2021-018 and 2021-019, based on the 2019 Handbook. COA Resolution No. 2020-001 renamed the Philippine Public Sector Accounting Standards as IPSAS with corresponding Philippine Application Guidance, and COA Circular No. 2021-004 issued implementation guidelines for the renamed standards. The COA has also issued implementation guidance for specific standards, including COA Circular No. 2024-009 on IPSAS 39, Employee Benefits.

The standards apply to national government agencies, local government units, and government corporations classified as non-commercial public sector entities. Government corporations classified as commercial public sector entities apply Philippine Financial Reporting Standards.

Accordingly, accrual-basis IPSAS have been adopted for application by public sector entities in the Philippines through IPSAS with Philippine Application Guidance issued by the Commission on Audit. The jurisdiction-level framework is aligned with the relevant SMO requirements, and the Philippines is assessed as Adopted.

Current Status: Adopted

The Professional Regulatory Board of Accountancy (BOA), under the Republic Act 9298, Philippine Accountancy Act 2004, is responsible for the investigation and discipline (I&D) of any violations of the accountancy law by any professional accountant. The Professional Regulation Commission (PRC) is ultimately responsible for approving any sanction recommended by the BOA.

The BOA and the PRC may delegate the fact-finding component of investigations to the nationally accredited professional accountancy organization which is the Philippine Institute of Certified Public Accountants (PICPA). The BOA and PRC may then proceed with adopting PICPA’s findings and issuing sanctions as it sees fit.

PICPA’s by-laws provide for the establishment of an Ethics Board which may hear and decide cases on: (i) violations of the PICPA Constitution and By-laws; (ii) a breach of the Code of Ethics; (iii) infringements of any provisions of the Rules of Professional Conduct of the BOA; and (iv) a violation of any of the rules provided by the Rules and Regulations of the BOA. The Ethics Board will forward its decision onto the PICPA Board and the BOA, unless the decision of the Ethics Board has been appealed to the PICPA Board in which case it is the duty of the PICPA Board to forward its final decision to the BOA. The BOA may then recommend a sanction which is approved by the PRC before becoming final.

Lastly, the Securities and Exchange Commission (SEC) is authorized to carry out investigations and issue penalties for auditors of listed companies as per the Securities Regulation Code Rule 68. Through a Memorandum of Understanding between the SEC and the BOA, the SEC’s findings are also forwarded to the BOA as appropriate given that the BOA issues and grants licenses to practice auditing.

In 2018, the PICPA carried out an extensive assessment of all three I&D systems against the SMO 6 components. The information can be found in its 2018 SMO Action Plan and indicates that a gap remains between linking results of quality assurance (QA) reviews with the BOA’s and PICPA’s I&D system as only the SEC has an operational QA review system.

The corporate financial reporting framework in the Philippines is established under Republic Act No. 9298, the Philippine Accountancy Act of 2004, and related regulations issued by the Professional Regulatory Board of Accountancy (BOA), the Professional Regulation Commission (PRC), the Securities and Exchange Commission (SEC), and sector-specific regulators.

The Financial and Sustainability Reporting Standards Council (FSRSC), operating under the authority of the BOA, is responsible for adopting and promulgating financial reporting standards in the jurisdiction. The FSRSC has adopted IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) as Philippine Financial Reporting Standards (PFRS). The Philippines has also adopted the IFRS for SMEs Accounting Standard as PFRS for Small and Medium-sized Entities.

The SEC requires public interest entities and other entities meeting prescribed thresholds to apply full PFRS, while other entities may apply PFRS for Small and Medium-sized Entities or other permitted frameworks under the SEC’s differential reporting framework. The Bangko Sentral ng Pilipinas (BSP) also requires banks and other supervised financial institutions to prepare financial statements in accordance with PFRS, subject to sector-specific regulatory requirements.

In 2022, BOA Resolution No. 44 renamed the Financial Reporting Standards Council as the FSRSC and expanded its mandate to include sustainability reporting standards. The BOA subsequently adopted IFRS S1 and IFRS S2 as Philippine Financial Reporting Standards on sustainability disclosures, with implementation subject to SEC and other regulatory requirements.

Accordingly, IFRS Accounting Standards in effect as of the time of the assessment are adopted as PFRS and required for application by domestic publicly accountable entities in general purpose financial statements.

The Philippines has also adopted the IFRS for SMEs Accounting Standard as Philippine Financial Reporting Standards for Small and Medium-sized Entities. Qualifying entities may apply this framework in accordance with the Securities and Exchange Commission's differential reporting requirements.

Current Status: Adopted

Relevant Organizations

• Auditing and Assurance Standards Council (AASC)
• Bangko Sentral ng Pilipinas (BSP)
• Commission on Audit (COA)
• Financial Reporting Standards Council (FRSC)
• Philippine Institute of Certified Accountants (PICPA)
• Philippine Securities and Exchange Commission (SEC)
• Professional Board of Accountancy (BOA)
• Professional Regulation Commission (PRC)

Relevant Legislation

• BSP Circular 2014-494
• COA Circular 2015-003
• COA Resolution No. 2017-006
• PICPA’s By-laws
• Republic Act (RA) 9298, Philippine Accountancy Act
• Resolution No. 2015-263
• Securities Regulation Code (SRC) Rule 68

Relevant Publications

• ASEAN, Handbook on liberalization of professional services through mutual recognition in ASEAN: Accountancy services, September 2015.
• ASEAN and ACCA, Easy Guide to Setting Up Accountancy Practices in ASEAN Countries, March 2010.
• PICPA, SMO Action Plan, April 2018.
• IFRS Foundation, “IFRS Application Around the World, Jurisdictional Profile: Philippines,” 16 June 2016.
• World Bank, Report on the Observance of Standards and Codes (ROSC), Accounting and Auditing: Republic of the Philippines, 15 March 2006.