Upgrading Filipino Certified Public Accountants
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Chapter I
When the Philippines acceded to the World Trade Organization in 1995, the country demonstrated its determination to face the challenges of globalization. Recognizing that globalization is the exhortation of the 21st century and it affects the growth and governance of the Philippines. Entering the WTO is a means to prepare itself for global competitiveness and reap the benefits that globalization may bring.
The current review of the competitiveness of various economic sectors is a result of the continuing reforms brought about by the process of liberalization and deregulation of the economy. It has been observed that greater openness of economies to international trade has brought significant impact on their economic performance. However, the growth potentials of the services sector are not fully realized because of difficulties and the reluctance of industries to undertake the necessary reforms.
The accountancy profession is one of the most rapidly progressing professions in the Philippine today. The beginning of public accounting practice were formed in the beginning of the 20th century by British chartered accountants then were followed by American CPAs. After which, some Filipinos obtained CPA certifications in the United States. It was in 1923, where formal recognition was given to the professions with the enactment of the Accountancy Law.
The right to use the title “CPA” and to practice public accounting is granted by the state law. To become a Certified Public Accountant, one must comply with the prescribed minimum requirements for CPA licensure set by the Board of Accountancy, under the oversight of the Professional Regulation Commission (PRC).
CPAs frequently work in positions embodying a substantial amount of public trust. The profession as a whole has responded with efforts to assure suitable standards of professional and ethical competence among practitioners. However, due to international standards and practices were continuously enhanced and other countries had already developed their professions accordingly, significant recommendations were intended in order to adapt in the globally changing world and support the return of the Philippine accountancy profession to its former status.
In order to increase the quality of CPA services and portray that Philippines is open to challenges; CPA licensure standards must be raised. It is recommended the introduction of (a) practical experience requirements for CPA licensure, (b) a written component to the CPA licensure examination, (c) mandatory CPE as a condition of license renewal, and (d) provisional CPA title.
ARGUMENTS
Being an accountancy student, I have been aware of current situation regarding the status of Philippine CPAs among ASEAN countries and in the rest of the world. The Philippine CPA title may meet the international standards and regional norms in the academic stage but lack on the three stages. The four recommendations provided is a means to broaden our area of attention and in due course formulate a Philippine position to meet the competitive edge of professionals from develop countries.
Chapter II
Claim no. 1.
Introduce an Experience Prerequisite for the CPA Title
Practical experience is not one of the requirements in obtaining a Philippine CPA License which does accord with the international guidelines provided by IEG 9. And experience requisite has always been considered by most to be beneficial, if not essential, to gaining the expertise necessary to be considered a professional.
A supervised experience requirement, under the assistance of a licensed CPA, is essential to refine technical knowledge through application and to provide the individual the opportunity to acquire the attitude and judgment of a competent, practicing public accountant. CPA Title indicates that a level of technical knowledge has been achieved it credential carries a certain level of assurance to those using the work of both the external and internal auditor.
Your actual work experience will also help you gain more knowledge regarding the things you have to know about the globally competitive world. And help you develop skills and experiences a school internship and classroom setting will never provide.
Claim no. 2 Address CPA Licensure Examination