Musings on the amendments of the accountancy law

IN May 2017, the Professional Regulatory Board of Accountancy (BOA), with me as Chairman, was able to finally cause the approval by the Commission of Higher Education of four landmark Ched Memorandum Orders pertaining to the policies, standards and guidelines of four accountancy academic programs. I initiated discussions with the Ched Technical Working Committee in 2014 to come up with major changes and innovations of the accountancy education program. It had been over 10 years ago, in 2007, when the CMO 3 Series of 2017 first formally prescribed the PSGS for the Bachelor of Science in Accountancy (BSA).

On the policy aspect, the Board, which I chaired, formulated an innovative approach for the professional licensure examination for the accountancy sector. In essence, this consists of providing all graduates of the four accounting programs the gateway to taking the licensure examinations and becoming professional accountants.

The past decade covering the interval between two batches of Cmos has been the period of the emergence of so many developments affecting the business environment, in general, and the accountancy profession, in particular. major changes and innovations have arisen in the areas of technology, governance, business models, industry expectations, competencies, and globalization imperatives that impacted the accountancy profession. The promulgation of the four landmark measures were timely and much needed.

These Cmos (number 27 to 30) prescribe for the psgs of a revised Bachelor of science in accountancy (Bsa), and three new accounting baccalaureate programs—bs in internal audit, Bs in management accounting, and Bs in accounting information system. These became effective in school year 2018-2019.

The schools and universities offering accounting courses had to do major decision-making and implementation activities. The administrators of the various schools needed to review their existing Bsa program to ensure that it complies with Cmo 27-17; ascertain whether they will offer any, if not all, of the three new program/s in the school; revise the Bsa curriculum and other administrative and academic measures to incorporate the needed changes and revisions; and a host of other details.

on the part of the Boa then, the enactment of the new Cmos brought forth a number of policy, regulatory and administrative concerns and considerations. Foremost among these was the clamor of a number of accounting schools for the provision of detailed syllabi for the courses or subjects prescribed in the Cmo curricula. as intended, the four Cmos provided only the course titles and descriptions. i thought then that the schools would welcome the advantage of this general setup, which provides flexibility to each school to determine and define the details of their course offerings in syllabi that they will formulate. it appears that a good number of schools prefer to be spoon fed with prescribed syllabi that they will just follow and implement. i understand that the national association of Cpas in education has a program of coming up with these course syllabi.

The Cmo 27-17 increased the number of hours of internship training to at least 600 hours for all Bsa students. This requirement will result in a substantial increased demand from accounting students of companies or organizations where they will render their internship service. The Boa should be ready to intervene if the number of companies offering internships fall short of the demand. The Boa should also be monitoring the quality and conduct of these internship programs.

on the policy aspect, the Board, which i chaired, formulated an innovative approach for the professional licensure examination for the accountancy sector. in essence, this consists of providing all graduates of the four accounting programs the gateway to taking the licensure examinations and becoming professional accountants. However, for this proposal to be put in place, it will require an amendment of the accountancy Law. i will discuss the details of this proposal in the next issue. i hope that the ongoing discussions on the revisions of the accountancy Law will take this into account.

To be continued.

Joel L. Tan-torres is the Dean of the University of the Philippines Virata School of Business. Previously, he was the Commissioner of the Bureau of Internal Revenue, the chairman of the Professional Regulatory Board of Accountancy and partner of Reyes Tacandong & Co. and the Sycip Gorres and Velayo & Co. He is a Certified Public Accountant who garnered No. 1 in the CPA Board Examination of May 1979.

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