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Auditing Theory - Day 01

1. The document discusses key concepts in auditing theory including professional accountants, the practice of public accountancy, regulatory government agencies, and standard setting bodies. 2. It defines professional accountants and outlines the practice of public accountancy. It also lists key Philippine regulatory agencies that oversee accounting professionals including the Professional Regulation Commission, Professional Regulatory Board of Accountancy, Securities and Exchange Commission, and Commission on Audit. 3. International and Philippine standard setting bodies are discussed including the International Federation of Accountants, International Accounting Standards Board, Financial Reporting Standards Council, and Auditing and Assurance Standards Council which establishes Philippine Standards on Auditing and other assurance standards.

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marian nabos
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81 views2 pages

Auditing Theory - Day 01

1. The document discusses key concepts in auditing theory including professional accountants, the practice of public accountancy, regulatory government agencies, and standard setting bodies. 2. It defines professional accountants and outlines the practice of public accountancy. It also lists key Philippine regulatory agencies that oversee accounting professionals including the Professional Regulation Commission, Professional Regulatory Board of Accountancy, Securities and Exchange Commission, and Commission on Audit. 3. International and Philippine standard setting bodies are discussed including the International Federation of Accountants, International Accounting Standards Board, Financial Reporting Standards Council, and Auditing and Assurance Standards Council which establishes Philippine Standards on Auditing and other assurance standards.

Uploaded by

marian nabos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Auditing theory day 01

1. Professional Accountant Regulatory Government Agencies


He or she is an individual who holds a valid
certificate issued by the Board of Accountancy (i.e., 9. Professional Regulation Commission (PRC)
Certified Public Accountant), whether he/she be in PRC administers, implements and enforces
public practice, industry, commerce, the public the regulatory policies of the National Government
sector or education. with respect to the regulation and licensing of
various professions under its jurisdiction including
Scope of Practice of Professional Accountants the maintenance of professional standards and
ethics and the enforcement of the rules and
3. Practice of Public Accountancy regulations relative thereto.
This shall constitute in a person, be it in
his/her individual capacity, or as a partner or a staff 10. Professional Regulatory Board of Accountancy
member in an accounting or auditing firm, holding (BOA)
out himself/herself as one skilled in the knowledge, This board, consisting of a chairman and six
science and practice of accounting, and as a members, is the agency that is empowered to
qualified person to render professional services as administer the Accountancy Law. As a licensing
a certified public accountant. agency of the government, the board is the only
body that may issue and revoke CPA certificates
4. Practice in Commerce and Industry and grant licenses to practice.
This shall constitute in a person involved in
decision making requiring professional knowledge 11. Securities and Exchange Commission (SEC)
in the science of accounting, or when such This is the government agency that
employment of position requires that the holder regulates the registration and operations of
thereof must be a certified public accountant. corporations, partnerships and other forms of
associations in the Philippines.
5. Practice in Education or Academe
This shall constitute in a person in an 12. Commission on Audit (COA)
educational institution which involve teaching of This is the agency that audits or determines
accounting, auditing, management advisory whether government units handle their funds
services, finance, business law, taxation and other according to existing laws and whether their
technically related subjects. programs are being conducted efficiently and
economically.
6. Practice in the Government
This shall constitute in a person who holds, 13. Bureau of Internal Revenue (BIR)
or is appointed to, a position in the accounting The BIR is responsible for enforcement of
professional group in government or in a the tax laws, rules and regulations.
government-owned and/or controlled corporation,
including those performing proprietary functions, Professional Organization
where decision making requires professional
knowledge in the science of accounting, or where a 15. Philippine Institute of Certified Public
civil service eligibility as a certified public Accountants (PICPA)
accountant is a prerequisite. PICPA is the accredited national
*** professional organization of CPAs. It serves all
members in the different sectors of the accounting
7. Certified Public Accountant profession. Year-round professional development
He or she is a person who, after obtaining programs and regular fellowship and sport
the required education passes an extensive activities are sponsored by the association for its
examination and is licensed by the country to members.
practice as a professional accountant.

1
Auditing theory day 01
16. Sectoral Professional Organizations 22. Auditing and Assurance Standards Council
(AASC)
a. Association of CPAs in Public Practice The AASC is the body authorized to
(ACPAPP) establish and promulgate generally accepted
b. Association of CPAs in Education auditing standards (GAAS) in the Philippines.
(ACPAE)
c. Association of CPAs in Commerce and Philippine Standards Issued by AASC
Industry (ACPACI)
d. Government Association of CPAs 24. Philippine Standards on Auditing (PSAs)
(GACPA) These standards are applicable to the audit
Standard Setting Bodies of historical financial information.

18. International Federation of Accountants (IFAC) 25. Philippine Standards on Review Engagements
IFAC has as its mission the development (PSREs)
and enhancement of the profession to enable it to These standards are applicable to the
provide services of consistently high quality in the review of historical financial information.
public interest. It is a non-profit, non-governmental,
non-political international organization of 26. Philippine Standards on Assurance
accountancy bodies. Engagements (PSAEs)
These standards are applicable to
19. International Accounting Standards Board assurance engagements dealing with subject
(IASB) matters other than historical financial information.
The Board is committed to developing, in the
public interest, a single set of high quality, global 27. Philippine Standards on Related Services
accounting standards that require transparent and (PSRSs)
comparable information in general purpose These standards are applicable to related
financial statements. services such as compilation engagements,
engagements to apply agreed-upon procedures to
20. Financial Reporting Standards Council (FRSC) information and other related services
As the successor of Accounting Standards engagements as specified by the AASC.
Council (ASC), FRSC’s main function is to establish ***
generally accepted accounting principles (GAAP) in
the Philippines. 28. Philippine Standards on Quality Control (PSQC)
These standards are to be applied for all
21. International Auditing Practices Committee services falling under the AASCs engagement
(IAPC) standards.
The IAPC is a standing committee of the
Council of IFAC and is responsible for the 29. Philippine Auditing Practice Statements
development and issuance on behalf of the Council, (PAPSs)
standards and statements on a variety of audit and These provide interpretative guidance and
attests functions in order to improve the degree of practical assistance to professional accountants in
uniformity of auditing practices and related implementing Philippine Standards and promote
services throughout the world. good practice.

30. AASC Bulletins and AASC Alerts


These refer to a regular publication issued
by the AASC to provide guidance to auditors in the
application of PSAs. These are not part of PSAs and
do not change the requirements of relevant PSAs.

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