Accountancy Stakeholders Forum Tentative Results of Sectoral Surveys December 7, 2015

As of November 10, 2015 AE Survey Tabulation

NoneA few numberA large number No basis for responding 1.) The number of CPA Accounting educators in my academic institution who are NOT able to teach effectively due to lack of competency or updated knowledge is: ) The number of CPA accounting educators in the other educational institution who are NOT able to teach effectively due to lack of competency or updated knowledge is:

Strongly Disagree Disagree Neither Disagree or Agree Agree Strongly Agree 3.) The Continuing Professional Development (“CPD”) Program as implemented currently will go a long way in upgrading the CPA Accounting Educator profession ) I benefit from the CPD Program as implemented currently

YesNo No basis for responding 5.) There are sufficient number of CPD courses that are relevant to an accounting educator

Strongly disagree Disagree Neither Disagree of Agree Agree Strongly Agree 6.) Academic institutions and accounting educators should focus primarily on their accounting students being able to pass the COA board examination ) Academic institution should primarily focus on their accounting students being able to have appropriate competencies for their career or work in the future

8.) Comparing the two priorities indicated in statements (6) and (7) above, the higher the priority between the two that academic institutions and accounting educators should focus on is: Accounting students being able to pass the CPA board examinations. 85 Accounting students being able to have the appropriate competencies for their career or work in the future. 178

Strongly disagree Disagree Neither Disagree or Agree Agree Strongly Agree 9.) The BS in Accountancy curriculum needs to be revised ) The BS in Accountancy curriculum should be a five (5) year degree program ) My academic institution is ready for the implementation of the Outcome Based Education ) I am ready for the implementation of the Outcome Based Education

SDDNASA 13.) The Board of Accountancy and Commission on Higher Education (CHED) should conduct quality inspections of the accountancy academic institutions in a regular basis ) Appropriate sanctions should be imposed on academic institutions that are NOT able to pass the CPA examination passing benchmark for several years ) Academic institutions that are NOT able to pass the CPA examinations passing benchmark for several years should not be allowed to continue to offer BS in Accountancy program ) Academic institutions that are NOT able to pass the CPA board examination passing benchmark for several years should be able to shift to programs that provide for other accounting specialization that will not require being licensed through the CPA board examinations, such as BS Internal Audit, BS Forensic Audit, BS Management Accounting, BS Information Systems Audit, BS Accounting Technology ) The CPA Licensure Examination needs to be revised

YesNo 18.) I support the objective of mobility of accountancy services prescribed in the ASEAN Mutual Arrangement (ASEAN MRA) on Accountancy Services ) I am aware of the salient features of the ASEAN MRA on Accountancy Services

Commerce and Industry Survey As of November 10,2015

YESNO 1.My Company is presently hiring CPAs/accountants When hiring CPAs/accountants, my Company normally hires those with experience My Company has a hard time hiring CPAs/accountants My Company has a hard time hiring good CPAs/accountants. 3614

Strongly disagree Disagree Neither Disagree or Agree Agree Strongl y agree 1.I believe that the quality of CPAs/accountants available for hiring is declining

I believe that the CPAs/accountants entering the commerce and industry sector SHOULD HAVE the following (select as many as warranted): 50 _____1. Satisfactory knowledge of basic accounting and bookkeeping 49 _____2. Knowledge of taxation and management advisory 38 _____3. Business acumen 44 _____4. Knowledge of current trends and events and their impact on business 42 _____5. Emphasis on governance and ethics 41 _____6. International Standards in Accounting 41 _____7. Analysis of data for use by management in planning and decision making 46 _____8. Competencies in the use of Information Technology

52 _____9 Computer literacy, capacity to work with computerized accounting systems, basic Microsoft Office 30 _____10. Strategic and integrative mindset that understands the impact of output on other units 48 _____11. Analytical skills, i.e., creative thinking and thinking out of the box 44 _____12. Critical thinking, i.e., can prepare reports with analysis and recommendations 44 _____13. Capacity to communicate with non-accountants or to present financial data to non- accountants 51 _____14. Communication skills –capacity to communicate and interact with people 48 _____15. Values of integrity and honesty 41 _____16. Leadership skills – involved in extracurricular activities during college; can handle pressure at work

44 _____17. Adaptability – can be assigned to different places and different assignments 47 _____18. Time management – ability to finish work on or before assigned deadlines 58 _____19. Self driven – can work with minimal guidance 6 _____20. Others, please specify I believe that the CPAs/accountants entering the commerce and industry sector IS LACKING IN the following (select as many as warranted): 7 _____1. Satisfactory knowledge of basic accounting and bookkeeping 22 _____2. Knowledge of taxation and management advisory 16 _____3. Business acumen

20 _____4. Knowledge of current trends and events and their impact on business 17 _____5. Emphasis on governance and ethics 26 _____6. International Standards in Accounting 20 _____7. Analysis of data for use by management in planning and decision making 19 _____8. Competencies in the use of Information Technology 11 _____9 Computer literacy, capacity to work with computerized accounting systems, basic Microsoft Office 23 _____10. Strategic and integrative mindset that understands the impact of output on other units 20 _____11. Analytical skills, i.e., creative thinking and thinking out of the box 18 _____12. Critical thinking, i.e., can prepare reports with analysis and recommendations

19 _____13. Capacity to communicate with non-accountants or to present financial data to non-accountants 13 _____14. Communication skills –capacity to communicate and interact with people 5 _____15. Values of integrity and honesty 20 _____16. Leadership skills – involved in extracurricular activities during college; can handle pressure at work 7 _____17. Adaptability – can be assigned to different places and different assignments 9 _____18. Time management – ability to finish work on or before assigned deadlines 13 _____19. Self driven – can work with minimal guidance 1 _____20. Others, please specify

YESNO 1.I am concerned with the fast turnover of CPAs/accountants in my Company Strongly disagree Disagree Neither Disagree or Agree Agree Strongly agree 1. I believe that there is an increasing trend of CPAs/accountants going out of the country in order to work I believe that there is an increasing trend of CPAs/accountants working in the Business Process Outsourcing, Call Centers, or any other related occupation

Below P15,000 monthly Between P15,001 and P20,000 Between P20,001 and P25,000 Between P25,001 and P30,000 Above P30, The hiring rate of CPAs/accountants with no experience in my Company is: The hiring rate of experienced CPAs/accountants in my Company is: Strongly disagree Disagree Neither Disagree or Agree Agree Strongly agree 1.The Continuing Professional Development (“CPD”) Program as implemented currently will go a long way in upgrading the CPA accounting profession

YESNO 15.I am interested in having accounting interns trained and work in my Company? 417 Strongly disagree Disagree Neither Disagree or Agree Agree Strongly agree 16.I believe that CPAs/accountants in the commerce and industry sector should strictly comply with the CPD requirements I support the objective of mobility of accountancy services prescribed in the ASEAN Mutual Arrangement (ASEAN MRA) on Accountancy Services I am aware of the salient features of the ASEAN MRA on Accountancy Services I believe that the work done by my external auditor has value added benefit to my Company

Below P 50,000 Between P50,001 and P100,000 Between P100,001 and P200,000 Between P200,001 and PP300,000 Between P300,001 and P500,000 Above P500, The professional fees paid by my Company this year to the external auditor for their attest work is: In house staff Outsourced to external organization External auditor of the company 21. The accounting records of my Company are maintained by:5101 YESNO 22. The year end financial statements(FS) and notes to FS are prepared by the Company’s external auditor. 2625

Strongly disagree Disagree Neither Disagree or Agree Agree Strongly agree 23. I believe that it should be mandatory that there should be at least one CPA/accountant in the audit committee of companies in general My academic background (accountancy graduate/CPA ) has prepared me adequately for my present position. (NOTE: IF NOT AN ACCOUNTING GRADUATE/CPA, PROCEED TO QUESTION 23) My academic/training background (please specify____________________________) has prepared me adequately for my present position

PP Survey Tabulation As of November 10, 2015

None A few number A large number No basis for responding 1.) The number of CPAs who are NOT able to do high quality audit service due to lack if competency or updated knowledge is: ) The number of practicing CPAs who do NOT do high quality audit service due to low fees charged to clients for merely signing the audit opinions:

Yes No 3.) I believe that situations exist where unfair competition from other CPAs who charge lower fees and who do not actual do quality audit service ) I have encountered situations of unfair competition from other CPAs who charge lower fees who do not actual do quality audit service

Strongly disagree Disagree Neither Disagree or Agree Agree Strongly Agree 5.) An effective quality assurance review of CPAs conducted by the regulator (ie.BOA) is needed to address the issues on unfair competition, lack of quality audit service, and other problems in the public practice sector of the profession ) I benefit from Continuing Professional Development Program as implemented currently ) The P600,000 of annual sales threshold prescribed in the Tax Code requiring external CPA audit of financial statements should be adjusted upwards ) The consolidation or merger of practice of sole practitioners should be encouraged to enhance the practice under partnership setup

Yes No 9.) I support the objective of mobility of accountancy services prescribed in the ASEAN Mutual Arrangement (ASEAN MRA) ) I am aware of the salient features of the ASEAN MRA