1.
The following statements relate to the
accounting profession:
I. To merit public trust and confidence,
the professional person must convince the public that he will place public
service ahead of personal reward.
II. A CPA certificate is evidence of basic
competence in the discipline of accounting at the time the certificate is
granted.
III. A code of professional conduct is one
of the most important distinguishing characteristics of a profession.
State
whether the foregoing statements are true or false.
a. All
of the statements are true. c. Only two of the statements are true.
b. Only
one of the statements is true. d. All of the statements are false.
2.
Which of the following is not normally
a service rendered by public accountants?
a.Management
consultation service c. Internal auditing
b.Attest
function d. Taxation
3.
A CPA firm offers management advisory
services to clients. Its primary purpose
is to
a. Furnish
professional advice and assistance which will enable the client to improve
operations.
b. Keep
the CPA firm competitive with other firms.
c. Establish
the firm as a consultant, thus ensuring its future expansion and growth.
d. Permit
the firm’s staff members to acquire expertise in other areas of practice.
4.
The government agency tasked by law of
implementing and enforcing the regulatory policies of the national government
with respect to the regulation and licensing of the various professions and
occupations under its jurisdiction is
a. PRC b.
BOA c.
COA d.
SEC
5.
Which of the following mostly
describes the function of ASPC?
a. To
monitor full compliance by auditors to PSAs.
b. To
promulgate auditing standards, practices and procedures that shall be generally
accepted by the accounting profession in the Philippines.
c. To
assist the Board of Accountancy in conducting administrative proceedings on
erring CPAs in audit practice.
d. To
undertake continuing research on both auditing and financial accounting in
order to make them responsive to the needs of the public.
6.
In the absence of pronouncements
issued by the ASPC and the PICPA, published statements and guidelines issued by
other authoritative bodies like AICPA, IAASB and AFA are the bases of
determining generally accepted auditing standards (GAAS). What effect do these pronouncements provide
in determining the GAAS?
a. Authoritative b. Persuasive c.
Parallel d. Alternative
7.
Which statement is incorrect regarding
the pronouncements of ASPC?
a. The
PSAs and Interpretations may also have application, as appropriate, to other
related activities of auditors.
b. PSAs
contain basic principles and essential procedures (identified in bold type
black lettering) together with related guidance in the form of explanatory and
other material.
c. PSAs
need only be applied to material matters.
d. The
Interpretations have the same authority as the PAPSs.
8.
The Philippine Standards on Auditing
issued by ASPC
a. Apply
to independent examination of financial statements of any entity when such an
examination is conducted for the purpose of expressing an opinion thereon.
b. Must
not apply to other related activities of auditors
c. Need
to be applied on all audit related matters.
d. Require
that in no circumstances would an auditor may judge it necessary to depart from
a PSA, even though such a departure may result to more effective achievement of
the objective of an audit
9.
These statements are issued to provide
practical assistance to auditors in implementing the PSAs
a. Interpretations b. SASP c. PAPS d. SPA
10. A
body that is created through the Philippine Accountancy Act of 2004 and is
intended to replace the ASPC.
a. Auditing
and Assurance Standards Council (AASC)
b. Financial
Reporting Standards Council (FRSC)
c. Education
Technical Council (ETC)
d. Philippine
Institute of Certified Public Accountants (PICPA)
11. Which of the following government
agencies is represented both to the Auditing Standards and Practices Council
and the Auditing and Assurance Standards Council?
a. Bangko Sentral ng Pilipinas c. Securities and Exchange Commission
b. Bureau of Internal Revenue d. Commission on Higher Education
12. Are
the following government agencies represented both to Auditing Standards and
Practices Council (ASPC) and the new Auditing and Assurance Standards Council
(AASC)?
a
|
b
|
c
|
d
|
|
·
Board
of Accountancy
|
Yes
|
Yes
|
Yes
|
Yes
|
·
Securities
and Exchange Commission
|
Yes
|
Yes
|
No
|
No
|
·
Commission
on Audit
|
Yes
|
Yes
|
Yes
|
Yes
|
·
Bangko
Sentral ng Pilipinas
|
Yes
|
No
|
Yes
|
No
|
13. Which
statement is correct regarding AASC?
a. The
AASC shall be composed of 15 members plus a Chairman.
b. The
chairman and members of the AASC shall be appointed by the President of the Philippines
upon the recommendation of PRC.
c. The
chairman and members of the AASC shall have a non-renewable term of 3 years.
d. The
chairman should have been or presently a senior practitioner in public
accountancy.
14. The
following sectors represented by the PICPA to the membership of AASC have one
representative, except
a. Government c. Commerce and industry
b. Public
practice d. Academe
15. Statements on financial accounting standards constituting
GAAP are issued by the
a. Philippine Institute of CPAs. c. Audit
Standards and Practices Council.
b. Securities and Exchange Commission. d.
Accounting Standards Council.
16. Indicate whether the following functions would
be performed by:
P – Partner S
– Senior
M – Manager AS
– Audit Assistant
(1) Supervises two or more concurrent audit
engagements
(2)
Performs detailed audit procedures
(3)
Overall responsibility for audit
(4)
Signs audit report
(1) (2) (3) (4)
a. P AS S M
b. M S M P
c. M AS P P
d. P AS S M
17. The amount of audit fees depend largely on the
a. Size and capitalization of the company under
audit.
b. Amount of profit for the year.
c. Availability of cash.
d. Volume of audit work and degree of competence
and responsibilities involved.
18. In
determining audit fees, an auditor may take into account each of the following
except
a. Volume and intricacy of work involved. c.
Number and cost of manhours needed.
b. Degree of responsibility assumed. d. Size and
amount of capital of client.
19. Under
this method of billing a client, the external auditors charges on the basis of
time spent by principals/partners, supervisors, seniors and juniors at
predetermined rates agreed upon with the client
a.Maximum
fee basis c. Flat sum basis
b.Retainer
basis d. Per diem basis
RA No. 9298 – Philippine Accountancy Act of 2004 and its IRR
1.
Which of the following is not one of
the specified objectives of the Accountancy Act of 2004?
a. Examination
for registration of CPAs.
b. Supervision,
control, and regulation of accounting practice.
c. Standardization
and regulation of accounting education.
d. Promulgation
of accounting and auditing standards.
2.
In all of the following situations
except one, a person is deemed to be engaged in professional accounting
practice. Which of them is the
exception?
a. Performing
audits or verification of financial transactions and records for more than one
client.
b. Employed
as the department chairman that supervises the BSA program of an educational
institution.
c. Employment
as controller of a private business enterprise and such employment requires
that the holder thereof should be a CPA.
d. Appointment
in the government where first grade civil service eligibility is a
prerequisite.
3.
A person is not deemed to be engaged
in professional accounting practice if
a. Her
merely holds himself out as skilled in the science and practice of accounting
and qualified to render services as a CPA.
b. He
merely offers to render services as a CPA to the public, but does not actually
render such services.
c. He
offers or renders bookkeeping services to more than one client.
d. He
installs and revises accounting systems for more than one client.
4.
Practice in Public Accountancy shall
constitute in a person
a. Involved
in decision making requiring professional knowledge in the
science of accounting, or when such employment or position requires that the
holder thereof must be a certified public accountant.
b. In
an educational institution which involve teaching of accounting, auditing,
management advisory services, finance, business law, taxation, and other
technically related subjects.
c. Who
holds, or is appointed to, a position in an accounting professional group in
government or in a government owned and/or controlled corporation, including
those performing proprietary functions, where decision making requires
professional knowledge in the science of accounting,
d. Holding
out himself/herself as one skilled in the knowledge, science and practice of
accounting, and as a qualified person to render professional services as a
certified public accountant; or offering or rendering, or both, to more than
one client on a fee basis or otherwise.
5.
Any position in any business or
company in the private sector which requires supervising the recording of
financial transactions, preparation of financial statements, coordinating with
the external auditors for the audit of such financial statements and other
related functions shall be occupied only by a duly registered CPA. Provided (choose the incorrect one)
a. That
the business or company where the above position exists has a paid-up capital
of at least P5,000,000 and/or an annual revenue of at least P10,000,000.
b. The
above provision shall apply only to persons to be employed after the
effectivity of the Implementing Rules and Regulations of RA 9298.
c. The
above provision shall not result to deprivation of the employment of incumbents
to the position.
d. None
of the above.
6.
The integrated national professional
organization of Certified Public Accountants accredited by the BOA and the PRC
per PRC accreditation No. 15 dated October 2, 1975.
a. Auditing
and Assurance Standards Council (AASC)
b. Financial
Reporting Standards Council (FRSC)
c. Education
Technical Council (ETC)
d. Philippine
Institute of Certified Public Accountants (PICPA)
7.
As
defined in the IRR of RA 9298, it is an organization engaged in the practice of
public accountancy, consisting of sole proprietor, either alone or with one or
more staff members.
a. Firm b. Individual CPA c.
Partnership d. Sector
8.
The following statements relate to the
Board of Accountancy. Which statement is
correct?
a. The
Board consists of a Chairman and six members.
b. The
chairman and members are appointed by the President of the Philippines upon
recommendation of PICPA.
c. The
Professional Regulation Commission may remove from the Board any member whose
certificate to practice has been removed or suspended.
d. Majority
of the board members shall as much as possible be in public practice.
9.
The APO shall submit its nominations with
complete documentation to the Commission not later than _____ prior to the
expiry of the term of an incumbent chairman or member.
a. 30 days b. 60 days c. 90 days d. 120 days
10.
A
member of the BOA shall, at the time of his/her appointment, possess the
following qualifications, except
a.
Must
be a natural-born citizen and resident of the Philippines.
b.
Must
be a duly registered CPA with more than ten (10) years of work experience in
any scope of practice of accountancy.
c.
Must
be of good moral character and must not have been convicted of crimes involving
moral turpitude.
d.
Must
not be a director or officer of the APO at the time of his/her appointment.
11.
Which
statement is incorrect regarding the term of office of the chairman and the
members of the Board of Accountancy (BOA)?
a.
The
Chairman and members of the Board shall hold office for a term of three years.
b.
No
person who has served two (2) successive complete terms shall be eligible for
reappointment until the lapse of one (1) year.
c.
A
person may serve the BOA for not more than twelve years.
d.
A
member of the BOA may continuously serve office for more than nine years.
12. The
Board shall exercise the following specific powers, functions and
responsibilities:
a
|
b
|
c
|
d
|
|
·
To supervise the registration,
licensure and practice of accountancy
|
Yes
|
Yes
|
Yes
|
Yes
|
·
To issue, suspend, revoke, or
reinstate the Certificate of Registration for the practice of the accountancy
profession
|
Yes
|
No
|
Yes
|
Yes
|
·
To monitor the conditions affecting
the practice of accountancy
|
Yes
|
Yes
|
No
|
Yes
|
·
To conduct an oversight into the
quality of audits of financial statements
|
Yes
|
No
|
Yes
|
No
|
·
To issue a cease or desist order to
any person, association, partnership or corporation engaged in violation of
any provision of the Act
|
Yes
|
Yes
|
No
|
Yes
|
13. Which
of the following is not one of the penalties that can be imposed by the Board
of Accountancy?
a. Fine or imprisonment c. Reprimand
b. Revocation of CPA certificate d. Suspension of CPA certificate
14.
The
creation of FRSC and AASC is intended to assist the BOA in carrying out its
function to
a.
To
monitor the conditions affecting the practice of accountancy and adopt such
measures, rules and regulations and best practices as may be deemed proper for
the enhancement and maintenance of high professional, ethical, accounting and
auditing standards.
b.
To
supervise the registration, licensure and practice of accountancy in the
Philippines.
c.
To
prescribe and adopt the rules and regulations necessary for carrying out the
provisions of RA 9298.
d.
To
prepare, adopt, issue or amend the syllabi of the subjects for examinations.
15. A
body that is created to assist the BOA in the attainment of the objective of
continuously upgrading the accountancy education in the Philippines to make the
Filipino CPAs globally competitive.
a. Philippine
Institute of Certified Public Accountants (PICPA)
b. Education
Technical Council (ETC)
c. Financial
Reporting Standards Council (FRSC)
d. Associations
of CPAs in Education (ACPAE)
16. Which
of the following is are grounds for suspension or removal of members of BOA?
I. Neglect
of duty or incompetence.
II. Violation
or tolerance of any violation of the CPA’s Code of Ethics.
III. Final
judgment of crimes involving moral turpitude.
IV. Rigging
of the certified public accountant’s licensure examination results.
a. I, II, III and IV b. I, II and III c. III and IV d. I, III and IV
17. The
following statements relate to CPA examination ratings. Which of the following is incorrect?
a. To
pass the examination, candidates should obtain a general weighted average of
75% and above, with no rating in any subject less than 65%.
b. Candidates
who obtain a rating of 75% and above in at least four subjects shall receive a
conditional credit for the subjects passed.
c. Candidates
who failed in four complete examinations shall no longer be allowed to take the
examinations the fifth time.
d. Conditioned
candidates shall take an examination in the remaining subjects within two years
from the preceding examination.
18.
The
Board, subject to the approval of the Commission, may revise or exclude any of
the subjects and their syllabi, and add new ones as the need arises. Provided that the change shall not be more
often than every
a. 2 years b.
3 years c. 4 years d. 5 years
19. The
BOA shall submit to the PRC the ratings obtained by each candidate within how
many calendar days after the examination?
a. 5 days b. 10 days c. 15 days d. 30 days
20. A
Professional Identification Card bearing the registration number, date of
issuance, expiry date, duly signed by the chairperson of the Commission, shall
be issued to every registrant renewable every
a. Two years b. Three years c. Four years d. Five years
21. The
certified public accountant shall be required to indicate which of the
following numbers on the documents he/she signs, uses or issues in connection
with the practice of his/her profession?
A
|
b
|
c
|
d
|
|
·
His/her
Certificate of Registration
|
Yes
|
Yes
|
Yes
|
No
|
·
Professional
Identification Card
|
Yes
|
Yes
|
Yes
|
Yes
|
·
Professional
Tax Receipt
|
Yes
|
Yes
|
No
|
Yes
|
·
Telephone
|
Yes
|
No
|
No
|
No
|
22.
The
BOA shall not refuse the registration of any person who successfully passed the
CPA examinations if
a.
Convicted
by a court of competent jurisdiction of a criminal offense involving moral
turpitude
b.
Convicted
for a political offense.
c.
Guilty
of immoral and dishonorable conduct
d.
None
of the above.
23. Which
of the following is not one of the grounds for proceedings against a CPA?
a. Gross negligence or incompetence in the practice of his
profession.
b. Engaging in public practice while being employed in a
private enterprise.
c. Insanity.
d. Immoral or dishonorable conduct.
24. A
person whose CPA certificate has been revoked
a. Can
no longer be reinstated as a CPA
b. Is
automatically reinstated as a CPA after two years if the has acted in an
exemplary manner
c. May
be reinstated as a CPA by the Board of Accountancy after two years if he has
acted in an exemplary manner
d. May
be reinstated by the PRC after two years if he has acted in an exemplary manner
25. Who
is not permitted by law to practice accountancy?
a. A
corporation whose stockholders are all CPAs
b. A
partnership of CPAs
c. An
individual CPA practitioner
d. A
partnership of CPAs with some non-CPA staff
26. A
certificate of accreditation shall be issued to certified public accountants in
public practice only upon showing, in accordance with rules and regulations
promulgated by the Board and approved by the Commission, that such registrant
has acquired how many years of meaningful
experience in any of the areas of public practice?
a. One b. Two c. Three d. Four
27. A
meaningful experience shall be considered as satisfactory compliance with the
requirements of Section 28 of RA 9298 if it is earned in (Choose the incorrect
one)
a. Commerce
and industry and shall include significant involvement in general accounting,
budgeting, tax administration, internal auditing, liaison with external
auditors, representing his/her employer before government agencies on tax and
matters related to accounting or any other related functions.
b. Academe/education
and shall include teaching for at least three (3) trimesters or two (2)
semesters subjects in either financial accounting, business law and tax,
auditing problems, auditing theory, financial management and management
services.
c. Government
and shall include significant involvement in general accounting, budgeting, tax
administration, internal auditing, liaison with the Commission on Audit or any
other related functions.
d. Public
practice and shall include at least two years as audit assistant and at least
one year as auditor in charge of audit engagement covering full audit functions
of significant clients.
28. The Accountancy Law provides that all working papers made
during an audit shall be the property of the auditor. These working papers shall include the
following, except:
a. Schedules and memoranda made by the CPA and his staff.
b. Working papers prepared and submitted by the client.
c. Excerpts or copies of documents furnished the auditor.
d. Reports submitted by the CPA to the client.
29.
Individual
CPAs, Firms or Partnerships of CPAs, including partners and staff members
thereof shall register with the BOA and the PRC. If the application for registration of AB and
Co., CPAs was approved on August 30, 2005, it shall file for renewal on or
before
a. September 30, 2007 c. December 31, 2007
b. September 30, 2008 d. August 30, 2008
30.
Which
statement is correct regarding CPE requirements for renewal of professional
license?
a.
The
total CPE credit units required for CPAs shall be sixty (60) units for three
(3) years, provided that a minimum of twenty (20) credit units shall be earned
in each year.
b.
A
registered professional shall be permanently exempted from CPE requirements
upon reaching the age of 60 years old.
c.
A
registered professional who is working abroad shall be temporarily exempted
from compliance with CPE requirement during his/her stay abroad, provided that
he/she is has been out of the country for at least one year immediately prior
to the date of renewal.
d.
Those
who failed to renew professional licenses for a period of five (5) continuous
years from initial registration, or from last renewal shall be declared
delinquent.
31. Any
person who shall violate any of the provisions of RA 9298 or any of its
implementing rules and regulations as promulgated by the Board subject to the
approval of the Commission, shall, upon conviction, be punished by
a. A
fine of not less than fifty thousand pesos (P 50,000.00) or by imprisonment for
a period not exceeding two (2) years or both.
b. A
fine of not less than one hundred thousand pesos (P 100,000.00) or by
imprisonment for a period not exceeding two (2) years or both.
c. A
fine of not less than fifty thousand pesos (P 50,000.00) or by imprisonment for
a period not exceeding three (3) years or both.
d. A
fine of not less than one hundred thousand pesos (P 100,000.00) or by
imprisonment for a period not exceeding three (3) years or both.
32.
The
primary duty to enforce the provisions of RA 9298 and its IRR rests with
a. The PRC c. The PRC and BOA
b. The BOA d. The AASC
33. The
PICPA shall renew its Certificate of Accreditation once every how many years
after the date of the Resolution granting the petition for re-accreditation and
the issuance of the said certificate upon submission of the requirements?
a. 2 years b. 3 years c. 4 years d. 6 years
34.
Below
are the names of three CPA firms and pertinent facts relative to each firm. Unless otherwise indicated, the individuals
named are CPAs and partners, and there
are no other partners. Which firm name
and related facts indicates a violation of the IRR of RA 9298?
a.
Joyce,
Ara and Angela, CPAs (Joyce died about 10 years ago, Ara and Angela are
continuing the firm)
b.
Lupin
and Fujico, CPAs ( the name of Goymon a third active partner is omitted in the
firm name)
c.
Hugo
and Pugo, CPAs (Hugo died 25 months ago, Pugo is continuing the firm as a sole
proprietor)
d.
Bubu
and Bibi, CPAs (Bibi died 3 years ago, Bobot was admitted into the partnership
2 months after Bibi’s death.)
-
end of AT-5902 -
