The Professional Regulatory Board of Accountancy issued Resolution No. 57 (s. 2023) or the “Revised Rules and Regulations on the Conduct of an Oversight into the Quality of Audits of Financial Statements and Operations of Certified Public Accountant Practitioners by the Professional Regulatory Board of Accountancy, and Designating the Philippine Institute of Certified Public Accountants (PICPA) as the Implementing Arm of the Quality Assurance Review (QAR) Program on December 15, 2023”.
The QAR Program was intended to ensure the quality of audit of financial statements and the adoption of best practices through a review of the quality control measures instituted by CPA Practitioners to ascertain compliance with the prescribed professional, ethical, and technical standards of public practice.
The implementation of the QAR Program is not only required under Republic Act No. 9298 of the “Philippine Accountancy Act of 2004” but also by the International Federation of Accountants (IFAC) where the Philippine Institute of Certified Public Accountants (PICPA), being a member-professional organization and as the duly Accredited and Integrated Professional Organization for the Accountancy Profession (AIPO) ,has the responsibility to implement based on Statement of Membership Obligation No. 1 which requires quality assurance review of those who perform audit, review, and other assurance and related services.
Recently, there are advisories circulating that the implementation of the QAR Program has been suspended which have caused misinformation and confusion among CPA Practitioners. Such advisory, however, is in clear contravention of Board Resolution No. 57 (s. 2023) and was issued without the consent and knowledge and approval of the Board of Accountancy.
With the foregoing, the Board of Accountancy hereby informs all CPA Practitioners and all its stakeholders that the QAR Program shall continue to be implemented and compliance thereto by all CPA Practitioners shall be strictly enforced.
For this purpose, all PRC Regional Offices and the Accreditation and Compliance Division shall require proof of QAR compliance as part of the accreditation requirements of CPA Practitioners as provided for under Section 14 (h) of Annex” A” of Board Resolution No.57 (s.2023).
To read the full text of Resolution No. 57 (s. 2023), https://www.prc.gov.ph/sites/default/files/2023-57%20published%20cpa.pdf
Please be guided accordingly.
