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