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 dignity to the profession which, unlike ordinary services and merchandise, should not be peddled in the market place through touting and selflaudatory means; WHEREAS, due to the expansion of the services provided by the professional accountants and the inclusion of a provision in the Revised Code of Ethics for Professional Accountants of the International Federation of Accountants (IFAC) which the Board of Accountancy and the Professional Regulation Commission have adopted, allowing advertising to the extent that this provides the public with necessary information about the sole practitioners or professional partnerships and the services they offer to their clients; WHEREAS, Section 250 on Marketing Professional Services of the Revised Code of Ethics for Professional Accountants in the Philippines provides that “1. When a professional accountant in public practice solicits new work through advertising or other forms of marketing, there may be potential threats to
compliance with the fundamental principles. For example, a self-interest threat to compliance with the principle of professional behavior is created if services, achievements or products are marketed in a way that is consistent with that principle. 2. A professional accountant in public practice should not bring the profession into disrepute when marketing professional services. The professional accountant in public practice should be honest and truthful and should not: • • Make exaggerated claims for services offered, qualifications possessed or experience gained; or Make disparaging references to unsubstantiated comparisons to the work of another.
If the professional accountant in public practice is in doubt whether a proposed form of advertising or marketing is appropriate, the professional accountant in public practice should consult with the relevant professional body.” WHEREAS, with this new development, the Board of Accountancy deems it necessary to adopt rules and regulations covering...
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