Module 2
Module 2
Module 2
I. INTRODUCTION
A. OVERVIEW
Module 2 contains the different fields of accounting where you can
choose from for employment after graduation. It also contains the regulatory and
professional bodies in accounting, and some important provisions of
Accountancy Acts of 2004, 2016, and 2017. The theoretical framework of
accounting is also an important content of the module. This is the foundation of
accounting theories and principles. Corporate governance, business ethics, and
the code of professional ethics are also taken up. These topics are important as
yours’ and other accounting professionals’ guide in performance of duties as
professional accountants.
B. LEARNING OUTCOMES
C. REQUIREMENTS
D. INSTRUCTION
Spend the first two days of the week (MW and TTh) reading, studying,
and understanding the lessons in this module. Then answer the
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questions/exercises given and send them to my private messenger. Then
prepare for a discussion on the last day of the week (F and S).
E. PRE-ASSESSMENT
Recitation/Quiz
II. LESSON
A. CONTENT
1. FIELDS OF ACCOUNTING
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be Certified Public Accountant. However, the controller or the head of the
department is usually a CPA.
2. REGULATORY BODIES
2.1. Securities and Exchange Commission (SEC)
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The SEC is tasked to regulate business operations of
partnerships, corporations, and foreign companies doing business in the
Philippines. It requires these entities to submit/file audited financial
reports as part of its supervisory function over these business
organizations. It is also tasked to protect the investments in the capital
market, stocks and bonds.
The BIR is tasked to collect licenses and fees; and taxes from
people and business organizations’ earning income. Such collections are
the source of funds of the Philippine government used in its various
projects.
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3.1.4. Act on valid complaints
3.1.5. Suspend or revoke license of an erring professional
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Council (PIC) comprised the financial reporting standards in the
Philippines.
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4.2.2. Issue certificate of registration and professional
identification cards, documents which are necessary
for practice of accounting profession.
4.3. Supervision, control and regulation of the accounting practice in
the Philippines. To achieve this objective, the following are
enforced:
4.3.1. Enumerate prohibitions, vested rights, and limitations in
the practice of accountancy
4.3.2. Require certificate of accreditation for individual CPA,
accounting firms, partnership of CPAs, and accounting
educators
4.3.3. Require a continuing professional development (CPD)
for all CPAs as a pre-requisite for renewal of license to
practice. For this purpose, PICPA created the CPE
Council and the NACPAE to conduct seminars to
update competencies of accountants
Ethics is a set of values and moral principles which guides one to conduct
oneself accordingly and distinguish right and wrong.
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Confidentiality of records requires a practitioner to keep information obtained
from the client from leaking out.
B. ADDITIONAL READINGS
1. Accountancy Act of 2004
2. Fundamentals of Accounting by Amelia M. Arganda
3. Conceptual Framework and Accounting Standards by Zeus Millan
4. Financial Accounting and Reporting For Services and Merchandisers
by Zenaida Manuel
5. Fundamentals of Accountancy, Business and Management by Rodiel
C. Ferrer
C. EXERCISES
Direction: In your own words, answer the following exercises then send your
answers to my private messenger. Your answers should be in 120-150 words.
D. SCORING/RUBRICS
Contents 30%
Reasoning 30%
Clarity 20%
Organization 20%
100%
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