boa chairman joel l. tan-torres quality assurance review program
TRANSCRIPT
BOA Chairman Joel L. Tan-Torres
QUALITY ASSURANCE REVIEW PROGRAM
Commitment of the Board of Accountancy
to its Mandate
Philippine Accountancy Law of 2004
RA 9298 Section 9h“coordinate an oversight into the quality of
audits of financial statements through a review of the quality control measures instituted by auditors in order to ensure compliance with
accounting and auditing standards and practices.”
Quality Assurance Review Program
PRC
BOA
ACCOUNTING PROFESSION
EXPANDING HORIZONS
Historical BackgroundDate Event
July 28, 2009 Issuance of BoA Resolution No. 88 to implement the QAR
August 12, 2009 Execution of a MOA with SEC, BSP and IC, as well as, with PICPA
February 2, 2010 Resolution No. 23: Some amendments to BoA Resolution No. 88
Historical BackgroundDate Event
December 2010Injunction case file by the group of small accountants in Public Practice with RTC 128 (Caloocan) to stop the implementation
The QAR was not implemented!• To date, the QAR is suspended; RTC order for the judicial
arbitration between the parties
Historical Background
Date Event
2011 Issuance of PSQC 1 : Quality Control for Firms that Perform Audits and ReviewsIssuance of PSW 220 : Quality Control for an Audit of Financial Statements
Recent DevelopmentsDate Event
July 05, 2014 Discussion between the BoA Chairman and the petitioners in the Caluya case
July 06, 2014Signing of the Cebu Accord• Agreements and Principles that addressed
the QAR disputed issues
Moving Forward Recommend to PRC the withdrawal of
Resolutions 88 and 28 Recommend to PRC a new resolution for the
QAR implementation Notify RTC 128 of mutual agreement upon
resolution of the case
Guiding Principles The formulation of the Resolution and
implementing rules and regulations (attached as to the Resolution as an annex) shall be consultative following a strict time table
Discussions are based on mutual trust The right of the BoA to regulate the profession
shall be recognized and respected
Developments to Date Dissemination of draft IRR and QAR resolution to
sectoral organizations and social network (BoA Facebook)
Conduct of public dialogues held last July 10 and Sept. 10, 2014
Attendance of BoA Chairman of the judicial arbitration in RTC Caloocan last September 4, 2014
Developments to Date Submission of several written comments on draft IRR Planned dissemination of revised IRR Ongoing address of QAR organizational and
implementation requirements
With the support and cooperation of all stakeholders, our accountancy
profession is well on its way towards instituting measures for the
enhancement of our profession.
Joel Tan TorresBoA Chairman