Catalog

Diagnostic Study of Accounting and Auditing Practices in the Philippines
Written by R. Narasimham and Barry Reid

This report describes accounting and auditing arrangements in Indonesia, identifies deficiencies in those arrangements, and presents recommendations to address those deficiencies.

The study revealed a range of issues that need attention if accountancy is to maintain its high status in the Philippines and if the Philippines is to successfully attract investment. In the case of accounting and auditing standards and practices, the study identifies deficiencies in the standards and in standard-setting arrangements. In addition, the quality of financial reporting is undermined by a lack of compliance monitoring. With regard to professional arrangements, the study identifies significant weaknesses in CPA licensure standards and quality assurance arrangements. Standards of accountancy education and training arrangements may also need to be raised. Some of these constraints can be addressed with minimum resources and effort, while others are more complex and will take time.

SEE ALSO

Diagnostic Study of Accounting and Auditing Practices Series Financial Management and Governance Issues Series

To read, you need Acrobat.

Contents

---

Preface, Currency Equivalents, Acronyms, Contents and Executive Summary [ PDF: 553kb | 24 pages ]

1. Introduction [ PDF: 248kb | 13 pages ]
   1. Study Background
   2. Study Objectives
   3. Country Case Study and Workshop
   4. ADB Focus on Philippine Financial Governance
   5. The Philippines
   6. International Guidelines and Surveillance
   7. Report Structure

2. Accounting and Auditing in the Philippines [ PDF: 279kb | 15 pages ]

   Part One. Accounting

   1. Introduction
   2. The "Philippine Accounting System"
   3. Financial Reporting and Disclosure Requirements
   4. Quality of Financial Reporting

   Part Two. Auditing

   5. Governing Laws and Regulations
   6. Philippine Auditing Practices
   7. Public Accounting and Auditng Firms
   8. Issue Synopsis: Accounting and Auditing

3. Professional Infrastructure [ PDF: 660kb | 37 pages ]
   1. Introduction
   2. Professional Organization and Regulation
   3. The Certified Public Accountant (CAP) License
   4. Professional Ethics
   5. Quality Control and Assurance
   6. Philippine Institute of Certified Public Accountants
   7. Other Professional Bodies
   8. Relations between the Profession and the BIR
   9. Globalization and Liberalization Challenges
   10. Initiative to Strengthen the Profession
   11. Issue Synopsis: Professional Infrastructure

4. Accounting and Auditing Standards [ PDF: 294kb | 16 pages ]

   Part One. Accounting Standards

   1. Introduction
   2. Accounting Standards Council (ASC)
   3. Accounting Standard Setting Process
   4. Statements of Financial Accounting Standards (SFASs)
   5. Conformity with International Accounting Standards (IAS)
   6. Public Sector Accounting Standards
   7. Taxation Reporting Requirements

   Part Two. Auditing Standards

   8. Introduction
   9. Auditing Standards and Practices Council (ASPC)
   10. Auditing Standards
   11. Comaprison with International Standards on Auditing
   12. Issue Synopsis: Accounting and Auditing Standards

5. Accounting and Auditing Training [ PDF: 119kb | 5 pages ]
   1. Introduction
   2. Educational Coordination
   3. Curriculum
   4. Education and Training Institutions
   5. Training for Lecturers and Professors
   6. Issue Synopsis: Accounting and Auditing Education and Training

6. Government Budget and Accounting [ PDF: 636kb | 14 pages ]
   1. Introduction
   2. Legal Framework for Government Accounting
   3. Organizational Roles and Responsibilities
   4. Budgeting and Reporting Calendar
   5. Accounting and Reporting Arrangements
   6. Accounting Information Systems
   7. Internal Auditing
   8. Government Accounting Personnel
   9. Public Financial Management Reform Program
   10. Anticorruption Measures
   11. Issue Synopsis: Government Budgeting and Accounting

7. Donor Assitance [ PDF: 523kb | 8 pages ]
   1. Overview
   2. Coordination Mechanisms
   3. Asian Development Bank (ADB)
   4. The World Bank
   5. United Nations Development Programme (UNDP)
   6. Canada (CIDA)
   7. Japan
   8. United Kingdom (British Council)
   9. United States (USAID)

8. Issues and Recommendations [ PDF: 486kb | 14 pages ]

   Part One. Where Donor Assistance Might be Appropriate

   1. Advocate Changes to IASB Copyright and Pricing Policies
   2. Directly Adopt International Accounting Standards
   3. Alter Accounting Standard Setting Arrangements
   4. Strengthen Financial Disclosure Monitoring
   5. Directly Adopt IAASB Auditing Pronouncements
   6. Strengthen Compliance with Auditing Practices
   7. Amend the Accountancy Law so that Licensure Standards can be Raised
   8. Address CPA Licensure Examination Issues
   9. Introduce an Experience Prerequisite for the CPA Title
   10. Introduce Mandatory Continuing Professional Education
   11. Reassign Responsibilities for Monitoring and Investigating Certain Ethical Matters
   12. Implement Quality Control and Assurance Arrangements
   13. Introduce Provisional CPA Title
   14. Introduce Accounting Technician Membership Category
   15. Develop Annual Financial Management Scorecard
   16. Improve Monitoring of Accountancy Courses
   17. Provide Continuing Training to Professors and Lecturers
   18. Define Accounting Information System Requirements

   Part Two. Where External Assistance is Not Required

   19. Directly Adopt IFAC Pronouncements on Ethics
   20. Make PICPA Membership Compulsary for CPAs
   21. Minimize Compliance (Transaction) and VFM Auditing
   22. Limit Proxy Voting in PICPA Meetings and Elections
   23. Exempt CPAs from Tax Agent Accreditation
   24. Limit Accountancy Degree Courses to 4 Years
   25. Separate Accounting and Auditing Responsibilities
   26. Adopt International Public Sector Accounting Standards

9. Country Action Plan [ PDF: 173kb | 5 pages ]

References [ PDF: 223kb | 10 pages ]

Appendixes [ PDF: 487kb | 37 pages ]