1/30/2018

1

Updates on CPA Board ExaminationCurrent topics NOT included in May 2018CPA Board Examination but in October 2018

--PFRS 9--PFRS 15--TRAIN Law

Updates on CPA Board Examination

Review of Examination syllabi and TOS

-- In time for October 2017 CPA Board Exam-- Will dwell on common themes or areas:

-Globalization developments-Digitalization trends -Effective business communication-Governance and code of ethics-Regulatory compliance requirements-Integrated practical applications

PRC LAUNCHES TEST QUESTIONS DATABANKING SYSTEM (TQDS)

STRAT 6 - Provide COMMUNICATION & ASSISTANCE MECHANISMS

Website, Facebook & TwitterCareer Tracking Surveys

Provide COMMUNICATION & ASSISTANCE MECHANISMS

Website, Facebook & TwitterCareer Tracking Surveys

1/30/2018

2

To date, several surveys that have been released and/or are on going. These include the Sectoral surveys forCPAs in Academe (“AE”), Public Practice (“PP”), and Commerce and Industry (“CI”); Survey on Satisfaction services of PICPA;Survey on Access to Accountancy Website and Facebook sites; New CPA Tracker Surveys, and various Mini Surveys.

The surveys links are indicated below as follows:

AE – https://www.surveymonkey.com/r/CPASurveyAEPP – https://www.surveymonkey.com/r/CPASurveyPPCI – https://www.surveymonkey.com/r/CPASurveyCINew CPA Tracker Survey – https://www.surveymonkey.com/r/cpatrackerand https://www.surveymonkey.com/r/102017cpatrackSurvey on Satisfaction on PICPA -https://www.surveymonkey.com/r/mspicpaSurvey on FB and website - https://www.surveymonkey.com/r/webfbfeedbck

CPA in Public Practice Survey Tabulation

as of January 10, 2018

Number of Respondents – 830

None A few number

A large number No basis for

responding

1.) The number of CPAs who are NOT able to do high quality audit service due to lack if competency or updated knowledge is:

53(6.39%)

310(37.35%)

177(21.33%)

290(34.39%)

2.) The number of practicing CPAs who do NOT do high quality audit service due to low fees charged to clients for merely signing the audit opinions:

48(5.78%)

278(33.49%)

269(32.41%)

235(28.31%)

Yes No

3.) I believe that situations exist where unfair competition from other CPAs who charge lower fees and who do not actual do quality audit service. 749

(88.74%)95

(11.26%)4.) I have encountered situations of unfair competition from other CPAs who charge lower fees who do not actual do quality audit service. 560

(66.19%)286

(33.81%)

1/30/2018

3

Yes No

3.) I believe that situations exist where unfair competition from other CPAs who charge lower fees and who do not actual do quality audit service. 749

(88.74%)95

(11.26%)4.) I have encountered situations of unfair competition from other CPAs who charge lower fees who do not actual do quality audit service. 560

(66.19%)286

(33.81%)

Strongly disagree Disagree Neither Disagree or

Agree

Agree Strongly Agree

5.) An effective quality assurance review of CPAs conducted by the regulator (ie.BOA) is needed to address the issues on unfair competition, lack of quality audit service, and other problems in the public practice sector of the profession. 61

(7.51%)73

(8.99%)121

(14.90%)388

(47.78%)169

(20.81%)6.) I benefit from Continuing Professional Development Program as implemented currently.

40(4.64%)

16(1.86%)

41(4.76%)

476(55.22%)

289(33.53%)

7.) The P600,000 of annual sales threshold prescribed in the Tax Code requiring external CPA audit of financial statements should be adjusted upwards.

73(9.01%)

152(18.77%)

157(19.38%)

250(30.86%)

178(21.98%)

8.) The consolidation or merger of practice of sole practitioners should be encouraged to enhance the practice under partnership setup 88

(10.97%)207

(25.81%)189

(23.57%)263

(32.79%)55

(6.86%)

Yes No

9.) I support the objective of mobility of accountancy services prescribed in the ASEAN Mutual Arrangement (ASEAN MRA). 637

(85.96%)104

(14.04%)10.) I am aware of the salient features of the ASEAN MRA. 300

(39.37%)462

(60.63%)

CPA in Commerce and Industry Survey Tabulation

As of January 10, 2018CI –

1/30/2018

4

YES NO

1. My Company is presently hiring CPAs/accountants222

(60.82%)143

(39.18%)

2. When hiring CPAs/accountants, my Company normally hires those with experience.

253(68.38%)

117(31.62%)

3. My Company has a hard time hiring CPAs/accountants.188

(51.65%) 176

(48.35%)

4. My Company has a hard time hiring good CPAs/accountants.

196(53.70%)

169(46.30%)

Strongly disagree

Disagree Neither Disagree or Agree

Agree Strongly agree

5. I believe that the quality of CPAs/accountants available for hiring is declining.

349.34%

14840.66%

8723.90%

8723.90%

82.20%

I believe that the CPAs/accountants entering the commerce and industry sector SHOULD HAVE the following attributes: (RANKED FROM HIGHEST TO LOWEST):

239_____1. Satisfactory knowledge of basic accounting and bookkeeping202_____2. Knowledge of taxation and management advisory130_____3. Business acumen167_____4. Knowledge of current trends and events and their impact on business137_____5. Emphasis on governance and ethics139_____6. International Standards in Accounting191_____7. Analysis of data for use by management in planning and decision making184_____8. Competencies in the use of Information Technology

229_____9 Computer literacy, capacity to work with computerized accounting systems, basic Microsoft Office149_____10. Strategic and integrative mindset that understands the impact of output on other units 219_____11. Analytical skills, i.e., creative thinking and thinking out of the box221_____12. Critical thinking, i.e., can prepare reports with analysis and recommendations190_____13. Capacity to communicate with non-accountants or to present financial data to non-accountants215_____14. Communication skills –capacity to communicate and interact with people209_____15. Values of integrity and honesty184_____16. Leadership skills – involved in extracurricular activities during college; can handle pressure at work

1/30/2018

5

177_____17. Adaptability – can be assigned to different places and different assignments207_____18. Time management – ability to finish work on or before assigned deadlines215_____19. Self driven – can work with minimal guidance16_____20. Others, please specify

I believe that the CPAs/accountants entering the commerce and industry sector IS LACKING IN the following (select as many as warranted): 25_____1. Satisfactory knowledge of basic accounting and bookkeeping71_____2. Knowledge of taxation and management advisory60_____3. Business acumen

Below P15,000 monthly

Between P15,001

and P20,000

Between P20,001

and P25,000

Between P25,001

and P30,000

Above P30,001

1. The hiring rate of CPAs/accountants with no experience in my Company is: 17

(4.59%)36

(9.73%)50

(13,51%)174

(47.03%)93

(25.14%)2. The hiring rate of experienced CPAs/accountants in my Company is: 94

(26.04%)208

(57.62%)45

(12.47%)12

(3.32%)2

(0.55%)

Strongly disagree

Disagree Neither Disagree or Agree

Agree Strongly agree

1. The Continuing Professional Development (“CPD”) Program as implemented currently will go a long way in upgrading the CPA accounting profession.

18(5.01%)

77(21.45%)

115(32.03%)

64(17.83%)

85(23.68%)

YES NO

1. My Company is presently hiring CPAs/accountants222

(60.82%)143

(39.18%)

2. When hiring CPAs/accountants, my Company normally hires those with experience.

253(68.38%)

117(31.62%)

3. My Company has a hard time hiring CPAs/accountants.188

(51.65%) 176

(48.35%)

4. My Company has a hard time hiring good CPAs/accountants.

196(53.70%)

169(46.30%)

YES NO

15. I am interested in having accounting interns trained and work in my Company?

298(83.01%)

61(16.99%)

Strongly disagree

Disagree Neither Disagree or Agree

Agree Strongly agree

16. I believe that CPAs/accountants in the commerce and industry sector should strictly comply with the CPD requirements. 24

(6.52%)50

(13.59%)67

(18.21%)169

(45.92%)58

(15.76%)17. I support the objective of mobility of accountancy services prescribed in the ASEAN Mutual Arrangement (ASEAN MRA) on Accountancy Services.

51.40% 48.60%

18. I am aware of the salient features of the ASEAN MRA on Accountancy Services.

6(1.68%)

20(5.60%)

44(12.32%)

242(67.79%)

45(12.61%)

19. I believe that the work done by my external auditor has value added benefit to my Company. 10

(2.75%)4

(1.10%)10

(2.75%)197

(54.27%)142

(39.12%)

1/30/2018

6

Below P 50,000

Between P50,001

and P100,000

Between P100,001

and P200,000

Between P200,001

and PP300,000

Between P300,001

and P500,000

Above P500,001

20. The professional fees paid by my Company this year to the external auditor for their attest work is:.

62(17.66%)

91(25.93%)

44(12.54%)

20(5.70%)

40(11.40%)

94(26.78%)

In house staff

Outsourced to external

organization

External auditor of

the company

21. The accounting records of my Company are maintained by:

348(94.82%)

9(2.45%)

10(2.72%)

YES NO

22. The year end financial statements(FS) and notes to FS are prepared by the Company’s external auditor.

114(31.15%)

252(68.85%)

October batch: 258July batch: 289

NCR: 46.1%

For more information:• http://www.prc.gov.ph

• http://boa.com.ph

• www.facebook.com/professionalregulatory board of accountancy

• boa.secretariat@gmail.com