1. BOA Chairman Joel L. Tan-Torres QUALITY ASSURANCE REVIEW PROGRAM

2. Commitment of the Board of Accountancy to its Mandate

3. Philippine Accountancy Law of 2004

4. RA 9298 Section 9h “coordinate an oversight into the quality of audits of financial statements through a review of the quality control measures instituted by auditors in order to ensure compliance with accounting and auditing standards and practices.”

5. Quality Assurance Review Program

6. Historical Background DateEvent July 28, 2009 Issuance of BoA Resolution No. 88 to implement the QAR August 12, 2009 Execution of a MOA with SEC, BSP and IC, as well as, with PICPA February 2, 2010 Resolution No. 23: Some amendments to BoA Resolution No. 88

7. Historical Background DateEvent December 2010 Injunction case file by the group of small accountants in Public Practice with RTC 128 (Caloocan) to stop the implementation The QAR was not implemented! To date, the QAR is suspended; RTC order for the judicial arbitration between the parties

8. Historical Background DateEvent 2011 Issuance of PSQC 1 : Quality Control for Firms that Perform Audits and Reviews Issuance of PSW 220 : Quality Control for an Audit of Financial Statements

9. Recent Developments DateEvent July 05, 2014 Discussion between the BoA Chairman and the petitioners in the Caluya case July 06, 2014 Signing of the Cebu Accord Agreements and Principles that addressed the QAR disputed issues

10. Moving Forward ✓ Recommend to PRC the withdrawal of Resolutions 88 and 28 ✓ Recommend to PRC a new resolution for the QAR implementation ✓ Notify RTC 128 of mutual agreement upon resolution of the case

11. Guiding Principles ✓ The formulation of the Resolution and implementing rules and regulations (attached as to the Resolution as an annex) shall be consultative following a strict time table ✓ Discussions are based on mutual trust ✓ The right of the BoA to regulate the profession shall be recognized and respected

12. Developments to Date ✓ Dissemination of draft IRR and QAR resolution to sectoral organizations and social network (BoA Facebook) ✓ Conduct of public dialogues held last July 10 and Sept. 10, 2014 ✓ Attendance of BoA Chairman of the judicial arbitration in RTC Caloocan last September 4, 2014

13. Developments to Date ✓ Submission of several written comments on draft IRR ✓ Planned dissemination of revised IRR ✓ Ongoing address of QAR organizational and implementation requirements

14. With the support and cooperation of all stakeholders, our accountancy profession is well on its way towards instituting measures for the enhancement of our profession. Joel Tan Torres BoA Chairman