NPM 012-2012

Requesting Entity: Metro Iloilo Water District

Issues Concern: Audited Financial Statements



Whether financial statements audited by Certified Public Accountants (CPAs) not accredited by the Board of Accountancy (BOA) should not be considered compliant with the requirement for an audited financial statement as an eligibility requirement under Section 23.1 of the revised Implementing Rules and Regulations (IRR) of Republic Act (RA) 9184.

A reading of Sections 26 and 28 of the IRR of RA 9298 reveals that no person shall engage in the practice of public accountancy unless he/she is a CPA and has received a certificate of accreditation from the BOA. Since the audit of financial statement for purposes of participation in public bidding can be considered a "practice of public accountancy" under Section 4(a) of RA 9298, CPAs preparing such Audited Financial Statement (AFS) must be accredited by the BOA.

Based on the foregoing, it is our considered view that financial statements audited by CPAs not accredited by the BOA cannot be considered for purposes of Sections 23.1(a)(v) and 24.1(a)(v) of the revised IRR of RA 9184.