Volume 1,
Series 1
PRC’s Code of Ethics for Professional Accountants Released

PRC Resolution No. 263-2015

The Professional Regulation Commission (PRC) published Resolution no. 263 entitled “Adoption of the IFAC 2013 Code of Ethics for Professional Accountants as ‘The Code of Ethics for Professional Accountants in the Philippines’ and prescribing amendments therefor” last December 2015. This new resolution tackles about thwarting familiarity and self-interest threats as a result of long rapport with the client.

The Code of Ethics is based on the International Code of Ethics, which was developed by Internal Federation of Accountants (IFAC), and later issued in 2006. It had undergone numerous amendments, and its latest version is dated May 2015. Both the Philippine Institute of Certified Public Accountant (PICPA) and the Accredited Professional Organization for Certified Public Accountant (AOCP) are IFAC members, and pledged to its aim of “developing guidance on ethics for professional accounts” by the consistency of “professional ethics throughout the world.” To suit the Philippine setting, the Code had undergone changes as it considered the Philippine Regulatory requirements and circumstances also.

Now, the IFAC Code of Ethics is approved by both the Board of Accountancy (BoA) and the Professional Regulation Commission (PRC). It is now used as the ethics code for the CPAs in the country.

Lastly, aside from those section revisions, they also changed the meaning of these two terms: Assurance Engagement and Professional Accountant.

Sources: PRC Res. 263-2015

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