Boa Resolution
BOARD OF ACCOUNTANCY Resolution No. 126 Series of 2008
ADOPTION OF THE RULES AND REGULATIONS ON ADVERTISING FOR THE PHILIPPINE ACCOUNTANCY PROFESSION
WHEREAS, the Philippine Accountancy Act of 2004, Article II Section 9(f) empowers the Board of Accountancy “to prescribe and/or adopt a Code of Ethics for the practice of accountancy” and Section 9(g) provides that the Board of Accountancy shall “monitor the conditions of accountancy and adopt such measures, including promulgation of accounting and auditing standards, rules and regulations and best practices as may be deemed proper for the enhancement and maintenance of high professional, ethical, accounting and auditing standards xxx” WHEREAS, all Professional Accountants must adhere to the Revised Code of Ethics for Professional Accountants in the Philippines which governs their relations to the public in general, their co-professionals, their clients and the State of the practice of the Accountancy profession in the Philippines; WHEREAS, any advertising by professional accountants beyond their name, address, telephone number and membership in professional organizations has been traditionally considered unethical in the Accountancy Profession; WHEREAS, the reasons for not allowing advertisement include: (a) advertising can lead to undue competition between and among practitioners, and thus may cause a decline in the quality of service; (b) advertising would encourage a more commercial approach within the profession thus reducing clients’ trust in CPAs and also increasing the likelihood of CPAs neglecting their ethical duties; (c) the cost of advertising would outweigh any savings which might result from competition, and it would be borne ultimately by clients; and (d) small or new practitioners would be unlikely to have the financial resources to match the advertising of larger or more established practices. WHEREAS, the rationale behind the prohibition of certain kinds of advertising or advertisements is to lend
ADOPTION OF THE RULES AND REGULATIONS ON ADVERTISING FOR THE PHILIPPINE ACCOUNTANCY PROFESSION
WHEREAS, the Philippine Accountancy Act of 2004, Article II Section 9(f) empowers the Board of Accountancy “to prescribe and/or adopt a Code of Ethics for the practice of accountancy” and Section 9(g) provides that the Board of Accountancy shall “monitor the conditions of accountancy and adopt such measures, including promulgation of accounting and auditing standards, rules and regulations and best practices as may be deemed proper for the enhancement and maintenance of high professional, ethical, accounting and auditing standards xxx” WHEREAS, all Professional Accountants must adhere to the Revised Code of Ethics for Professional Accountants in the Philippines which governs their relations to the public in general, their co-professionals, their clients and the State of the practice of the Accountancy profession in the Philippines; WHEREAS, any advertising by professional accountants beyond their name, address, telephone number and membership in professional organizations has been traditionally considered unethical in the Accountancy Profession; WHEREAS, the reasons for not allowing advertisement include: (a) advertising can lead to undue competition between and among practitioners, and thus may cause a decline in the quality of service; (b) advertising would encourage a more commercial approach within the profession thus reducing clients’ trust in CPAs and also increasing the likelihood of CPAs neglecting their ethical duties; (c) the cost of advertising would outweigh any savings which might result from competition, and it would be borne ultimately by clients; and (d) small or new practitioners would be unlikely to have the financial resources to match the advertising of larger or more established practices. WHEREAS, the rationale behind the prohibition of certain kinds of advertising or advertisements is to lend