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[Act No. 3105, (1923-03-17)](https://lawyerly.ph/laws/view/l53cb)
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[ Act No. 3105, March 17, 1923 ]

AN ACT REGULATING THE PRACTICE OF PUBLIC ACCOUNTING; CREATING A BOARD OF ACCOUNTANCY; PROVIDING FOR EXAMINATION, FOR THE GRANTING OF CERTIFICATES AND THE REGISTRATION OF CERTIFIED PUBLIC ACCOUNTANTS; FOR THE SUSPENSION OR REVOCATION OF CERTIFICATES AND FOR OTHER PURPOSES

Be it enacted by the Senate  and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. Any citizen of the  Philippine Islands or of the United States, having a place  for the regular transaction  of  business as  a professional accountant  in  the Philippine Islands, and who, as in this Act required, shall have  received from the Board of  Accountancy  hereinafter created, a certificate of his qualifications to practice as a public accountant, shall have the authority to style himself and to be known as a  Certified  Public Accountant, and to use the  abbreviated title C. P. A. for and during the term mentioned in his certificate.

SEC. 2. The Secretary of Commerce and Communications shall within thirty days after the taking effect of this Act", appoint three persons  who are  citizens of the Philippine Islands  or of the United States, who shall  constitute  the Board of Accountancy.   At least two members of the Board shall have been engaged in the reputable practice as public accountant for a continuous period of three years immediately preceding the passage of this Act. in the Philippine Islands.  The persons  first  appointed  shall hold office  for one,  two, and  three  years, respectively;  thereafter  appointees shall serve for  three years.  Interim vacancies shall be filled by appointment for the  unexpired term only.

SEC. 3. The Secretary of Commerce and Communications may remove any member of the Board of Accountancy  for continued neglect of duty or incompetency or  for unprofessional or dishonorable conduct.

SEC. 4. The Board of Accountancy, the majority of which shall in all cases have the powers  of the  board, is vested with authority, conformably with the provisions of this Act, to issue and to  suspend temporarily or  revoke the validity of certificates of registration for Certified Public Accountants.  The board shall study the  conditions  affecting  the practice of public accounting in  all parts of the Philippine Islands  and  shall exercise the  powers herein conferred upon it  with a view to the maintenance of efficient ethical and technical standards in the public accounting profession. Subject to the approval of the Secretary of Commerce  and Communications, it  shall  determine  the qualifications of persons applying for certificates under  this Act, and shall make rules for the examination of same, which shall embody the following:

'   (a) Examination shall be held by the board at least once in each year, at such times and places as may be determined by them.  The time and place of holding such examinations shall be advertised for  not less than three consecutive days, not less than thirty days  prior to the date of such examination, in at least two daily newspapers printed and published in the  Philippines.   The examinations shall  be "theory of accounts,"  "pratical accounting,"  "auditing,"  and "commercial law" as  affecting accountancy.

(b) Applicants for certificates, before taking the examination must produce evidence satisfactory to the board that they are  over  twenty-one  years  of  age,  of good  moral character, a graduate  of  a  high school with  a  four  years course, or have an equivalent education, or pass  an especial examination held by the board  for that purpose and that they have had at least  three years' practical experience as professional public accountants,  or three years of  study in accounting and commercial subjects in a college or university whose  course of  study has been  approved  by  the Government.

SEC. 5. All candidates for examination  provided  for in this Act obtaining a general average rating of seventy-five per cent or over shall be entitled to registration as certified public accountants and as such receive a certificate of registration from the board.

SEC. 6.  In the event the board shall renounce the examination of any person as in this Act provided, the name of' such person shall likewise be registered  and the certificate issued upon payment of the prescribed fees.

SEC. 7.  All applications must be filed  with the Board of Accountancy and accompanied by the following fees:

For examination or for renunciation of same as provided in Section six..  P50.00

For registration and issuance of certificate ..............................................    10.00

Provided, however, That in the event any candidate fails to pass the required examination, he shall  be entitled to take a second examination, within one year  after the date of the examination at which he fails to pass, without paying a second fee.  All  fees  collected by  the board under this Act shall  accrue to the Insular Treasury.

SEC. 8.  Each member of the Board shall receive from the Insular funds as compensation the  sum of ten pesos for each application  for  examination  or renunciation accepted by the  Board.   The Secretary-Treasurer shall receive  from Insular  funds in addition to his allowance as member of the Board a compensation  at the rate of two hundred forty pesos per year,  one-half of which amount  shall be paid on the thirtieth of June and one-half  on  the  thirty-first of December of each year.

SEC. 9.  The board shall annually elect from  its members a president, and a secretary-treasurer, and  all certificates required to be executed for and on  behalf of the board shall be certified by  the  signature  of the president and  attested by the secretary-treasurer.  The  secretary-treasurer shall receipt  for all funds accruing under the provisions of this Act and account for them in the manner prescribed by the Insular Auditor.  He shall be bonded in the sum which shall be fixed by the Insular  Auditor.

SEC.  10. The  secretary-treasurer shall keep a record of the proceedings of the Board and a register of all persons to whom certificates of registration as Certified Public Accountants have  been granted, setting forth the name, age, sex, and place of business of each, his  post-office  address, the name  of the school, college or university  from  which he graduated or in which he has studied  accounting, if any, and the date of  such graduation or length  and  date of such term  of study together with the time spent in  the study of accounting  elsewhere, if any, and locations of all institutions which  have granted to  him  degrees  or certificates of lectures in accounting  or business,  and all other degrees granted to him  from institutions  of  learning.

SEC.  11.  The board may, in  its discretion, waive the examination of any person of competent age, of good moral character, and who has been engaged in reputable practice as  a  public accountant  for a period of  one  year in the Philippine Islands  immediately preceding the passage of this Act,  or any person  who is the lawful holder  of a  certified public accountant's certificate issued  under the law of any State of the United States.

SEC. 12.  The board may, at its discretion, include under section eleven hereof any foreigner holding a certified public accountant's certificate issued under the laws of a foreign state, who  has been in practice in the Philippine Islands as a professional public accountant five years prior to the passage of this Act.

SEC. 13.  After due hearing, the board may, at its discretion, either suspend  temporarily or revoke the validity of any certificate issued under this Act for unprofessional conduct of the holder  or other sufficient cause:  Provided, That  written  notice shall have been  mailed to  the  holder of such certificate at least twenty days before the hearing thereon, stating the cause of such contemplated action, and appointing a day for such hearing; and the defendant shall be given full  opportunity to defend himself personally or by counsel  from  the charge.

SEC. 14.  The sum of two thousand pesos is hereby appropriated  out of any funds in the Insular Treasury not otherwise  appropriated  for the expenses  necessary for carrying out the  purposes of this Act: Provided, That any balance from this fund remaining unexpended on December thirty-first, one  thousand nine hundred  and twenty-three, shall  revert   to  the  Insular  Treasury:  And  provided, further, That  the funds necessary for the expenses of carrying out the  purposes of this Act after said date shall be provided in the  annual appropriation  act.

SEC. 15.  Any person who  shall by himself or in cooperation with another defeat, deceive, or obstruct any person in the matter  of his right of examination by the Board of Accountancy, or who shall falsely rate, grade, estimate, or report upon the  examination  or standing  of  any person examined by  the Board, or  shall aid  in  so  doing, or shall make any false representations relative thereto or concerning the person or persons examined or who shall  use or furnish any special or secret  information for the purpose of improving  or injuring the  prospects or chances of any person so examined or to be examined, or receiving a certificate, shall for each such offense be punished by a fine not exceeding  one thousand  pesos, or by imprisonment for a period not  exceeding six months,  or  both.

Any  person who  shall knowingly  make  any  material false  statement in his application for examination, or who shall  connive at any false statement made in any certificate which may accompany his  application, or who  shall make any material false statement in any certificate to accompany the application for examination of any other person, or who shall  personate any other person or  permit or  aid in any manner any other person to  personate him in  connection with  any examination or application  for examination, or who shall falsely make or forge any  certificate  or present any falsely made  or forged certificate in connection with his application for examination, or who shall  commit or attempt to commit any  fraud, or violate  in any manner the provisions of this Act or  any regulations promulgated under the  provisions hereof,  or  aid  in so  doing, shall be subject to the  same penalty  as in the preceding paragraph provided.

SEC. 16.  Any person who represents himself to the public as having received a certificate as provided in this Act, or shall assume to  practice as a Certified Public Accountant, or use the abbreviated title C. P. A. or any similar words or letters,  to  indicate  that the person using the same is  a Certified Public Accountant, without having  received such certified public accountant's  certificate, or having received such certificate  was thereafter deprived  of the use of the same  by  temporary suspension  or  revocation,  shall  be punished by a fine in a sum  not exceeding  five thousand pesos, or by imprisonment for a period not exceeding two years, or both, at the discretion of the court,  for each such offense, and each day that such person shall so practice or hold himself  out as a Certified Public  Accountant,  shall be deemed a  separate offense.  Nothing in this Act shall be construed  to prohibit any person from practicing as a public or expert accountant in the Philippine Islands so long as he does not practice or hold himself  out as a Certified Public Accountant.

Any person practicing in the Philippine Islands as a Certified Public Accountant under this Act, or otherwise in the practice of public  accountancy, who  willfully falsify any report or statement bearing on any  examination, investigation, or audit made by him, or under his direction, shall be  subject  to the  same penalty as in the last preceding paragraph provided.

SEC.  17. All laws and parts of  laws in conflict with the provisions of this law are hereby repealed.

SEC.  18.  This Act shall take effect on its approval.

Approved,  March 17,  1923.

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