AT-01 Flashcards
Why should CPAs in the Philippines adhere to the SMOS (Statement of Membership Obligations) of the International Federation of Accountants (IFAC)?
A. because of globalization and ASEAN integration
B. because the Philippine Institute of Certified Public Accountants (PICPA) is a member- professional organization of IFAC?
C. because it is required by the Code of Ethics
D. because it is required by RA 9298
B
Which of the following is/are included among the fundamental objectives of the Statement of Membership Obligations (SMOs)?
A. to provide clear benchmarks to current and potential IFAC member bodies.
B. to support the adoption and implementation of international standards and other pronouncements issued by the International Auditing and Assurance Standards Board (IAASB), International Accounting Education Standards Board (IAESB), International Ethics Standards Board for Accountants (IESBA), International Public Sector Accounting Standards Board (IPSASB), and International Accounting Standards Board (IASB).
C. Both A and B
D. Neither A nor B
C
This SMO sets out the requirements of an IFAC member organization with respect to quality assurance review systems for partners/and or firms performing certain audit, review, other assurance, and related services engagements.
A. SMO 1 - Quality Assurance
B. SMO 2 - International Education Standards for Professional Accountants and Other Pronouncements Issued by the IAESB
C. SMO 4 - IESBA Code of Ethics for Professional Accountants
D. SMO 6 - Investigation and Discipline
A
Quality assurance is addressed at:
A. the engagement level.
B. the firm level.
C. The body responsible for the quality assurance review system.
D. All of the above.
D
The receipt and processing of ASEAN Chartered Professional Accountant (ACPA) applications is under the jurisdiction of which PRC division?
A. Professional Regulatory Boards (PRBS) Secretariat Division.
B. Continuing Professional Development Division.
C. Professional Registry Division.
D. International Affairs Division.
D
Which of the following statements about the Philippine Accountancy Act of 2004 is CORRECT?
A. It shall provide for and govern the regulation and liberalization of accounting educatioN and the examination for registration of certified public accountants.
B. It shall provide for and govern the supervision, control, and regulation of the practice of Filipino professional accountants in the Philippines and abroad.
C. It may depart, in some justifiable circumstances, from the policy of the State to recognize accountants in nation-building and development.
D. It aims to develop and nurture professional accountants whose standards of practice and service shall be excellent, qualitative, world class, and globally competitive.
D
A person is deemed to be in the practice of the accounting profession in public practice when he/she:
A. Holds, or is appointed to a position in an accounting professional group in government or in a government-owned and/or controlled corporation, where decision-making requires professional knowledge in the science of accounting.
B. Is involved in decision-making requiring professional knowledge in the science of accounting, as well as the accounting aspects of finance and taxation, or is employed in a position that requires a CPA.
C. Is in an educational institution which involves teaching of accounting, auditing, management advisory services, accounting aspect of finance, business law, taxation, and other technically-related subjects.
D. Holds out himself/herself as one skilled in the knowledge, science and practice of accounting, and as someone qualified to render professional services as a CPA.
D
Figure 1
A
Figure 2.1 & Figure 2.2
A
Any candidate who fails in ____ complete ‘CPA Board Examinations shall be disqualified from taking another set of examinations unless he/she submits evidence to the satisfaction of the BOA that he/she enrolled in and completed at least ________ of subjects given in the licensure examination.
A. 3, 15 units per year for a total of 60 units
B. 2,24 units
C. 2, 15 units/year, total of 60 units
D. 3, 24 units
B
Any candidate who fails in two (2) complete CPA Board Examinations shall be disqualified from taking another set of examinations unless he/she submits certificate of completion of refresher course to the satisfaction of the PRBOA that he/she enrolled in and completed at least twenty-four (24) units of subjects given in the licensure examination. Such a certificate shall be valid for years from the date of completion.
A. One
B Two
C. Three
D. Four
B
The PRBOA, subject to the approval of the PRC, 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:
A. Every two years.
B. Every three years.
C. Every four years.
D. Every five years.
B
Evaluate the following statements:
I. Including the Professional Regulatory Board of Accountancy (PRBOA), there are 45 boards under the PRC.
II. As of the most recent update, a professional identification card has a validity of five (5) years.
A. True, True
B. True, False
C. False, True
D. False, False
B
A certificate under seal, bearing a registration number, issued to an individual, by the PRC, upon recommendation by the Board of Accountancy, signifying that the individual has complied with all the legal and procedural requirements for such issuance, including, in appropriate cases, having successfully passed the CPA licensure examinations.
A. Certificate of registration.
B. Certificate of accreditation.
C. Certificate of identification.
D. Certificate of quality review.
A
Figure 3
D
CPD competence areas include:
A. technical competence.
B. professional skills.
C. professional values, ethics, and attitudes.
D. All of the above.
D
The objective of this IES is to establish whether aspiring professional accountants have demonstrated an appropriate level of professional competence by the end of IPD in order to perform a role as a professional accountant.
A. International Education Standard (IES) 3
B. International Education Standard (IES) 5
C. International Education Standard (IES) 6
D. International Education Standard (IES) 7
C
Per PRBOA Resolution 254 Series of 2017, which of the following statements is CORRECT?
A. The following can be a CPD provider: sole proprietor, partnership, corporation, government institutions, and foreign entities.
B. Members of PRBOA are allowed to be a CPD provider during their incumbency.
C. Application for CPD program accreditation should be filed 60 days before the offering of the program.
D. The CPD monitor should submit the monitoring report to PRC within 15 calendar days after the conduct of the program.
A
With respect to the most recent IRR (PRC Resolution 1146 Series of 2019) for CPD Law, which of the following statements is INCORRECT?
A. The new provisions would take effect by March 1, 2019.
B. It would refer to CPD Law of 2016.
C. 15 CPD credit units would be required for the renewal of the PRC ID.
D. 120 CPD credit units would be required for the accreditation of CPAs in government.
D
What is the minimum number of CPD credit units that a registered professional accountant in public practice should accumulate within the three-year period for the renewal of PIC?
A. 15 credit units
B. 45 credit units
C. 100 credit units
D. 120 credit units
A
Per PRBOA Resolution 27 Series of 2024, which of the following statements is INCORRECT?
A. In all applications for accreditation, the prescribed and earned CPD units to be submitted prior to processing is 120 CPD units.
b. For those approved applications covered under Section 12.b of Board Resolution No. 53 (s. 2022), the prescribed and earned 120 CPD units to be applied in order to comply with the maximum accreditation validity period of three (3) years shall be those issued within the three (3) period prior to the filing of the application for accreditation using the effectivity date (birth month/year) in the PIC of the applicant as the base period.
C. For CPAs in education, 12 units of professional education units shall be required in the first
and subsequent renewals.
D. All of the above statements are correct.
C
Which of the following is NOT a ground for the suspension or revocation of certificate of registration and professional identification card?
A. Possession of an unsound mind
B. Practice in more than one field of accountancy
C. Conviction of a criminal offense involving moral turpitude
D. Unprofessional or unethical conduct, malpractice, or violation of RA 9298.
B
The punishment, upon conviction, for any person who has violated any of the provisions of the Accountancy Act of 2004, or any of its Implementing Rules and Regulations as promulgated by the Board of Accountancy:
A. A fine of not less than fifty thousand pesos (P50,000.00) and imprisonment for a period not exceeding two (2) years.
B. A fine of not less than fifty thousand pesos (P50,000.00) but not an imprisonment.
C. No fine but an imprisonment for a period not exceeding two (2) years.
D. A fine of not less than fifty thousand pesos (P50,000.00) or imprisonment for a period not exceeding two (2) years, or both.
D
A CPA whose certificate has been revoked:
A. Is required to take the CPA Board Licensure examinations before reinstatement
B. May be reinstated by the PRBCA after the expiration of two (2) years from the date of revocation
C. Can no longer be reinstated as a Certified Public Accountant
D. Has committed a crime involving moral turpitude
B
Evaluate the following statements:
I. A BSA graduate is allowed to practice public accountancy under his or her own name immediately upon passing the CPA Board Exams.
II. The certificate of accreditation for CPAs in education is granted only once and remains in effect until withdrawn, suspended, or revoked in accordance with RA 9298.
A. True, True
B. True, False
C. False, True
D. False, False
D
Evaluate the following statements:
I. Single practitioners and partnerships for the practice of public accountancy shall be yo registered certified public accountants in the Philippines.
II. A certificate of accreditation shall be issued to certified public accountants in public practice only upon showing, that such registrant has acquired a minimum of three (3) years meaningful experience in any of the areas of public practice including taxation.
A. True, True
B. True, False
C. False, True
D. False, False
A
Which of the following functions would usually be performed by a senior (experienced) associate?
A. Signs the audit report.
B. Performs detailed audit procedures.
C. Prepares the audit program and performs more complex audit procedures
D. Tasked with liaison work between partners and other team members
C
The amount of professional fees depends 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.
D
Under this method of billing a client, billing is done on the basis of actual time spent by the staff multiplied by the hourly rates agreed upon.
A. Per diem basis
B. Retainer fee basis
C. Flat or fixed fee basis
D. Maximum fee basis
A
Which of the following cannot be mentioned by an author in publicizing a book in accounting?
A. Name
B. Qualifications
C. Membership in professional organization
D. Services that the author’s firm provides
D
May a CPA give a brochure to a non-client?
A. No, because this is a violation of the revised rules on advertising.
B. Yes, since this is acceptable under the revised rules on advertising
C. No, unless the non-client becomes a client within ten (10) days from receipt of the brochure
D. Yes, if the non-client has made an unsolicited request
B
Subjects or citizens of foreign countries:
A. May be allowed to practice accountancy in the Philippines, regardless of the provisions of existing laws and international treaty obligations, including mutual recognition agreements entered into by the Philippine government with other countries.
B. Are not allowed to practice accountancy in the Philippines, unless they take, and pass, the certified public accountant licensure examination given by the Board of Accountancy
C. May be allowed to practice accountancy in the Philippines, subject to the provisions of existing laws and international treaty obligations, including mutual recognition agreements entered into by the Philippine government with other countries.
D. Are never allowed to practice accountancy in the Philippines because they will jeopardize the interests of Filipino certified public accountants.
C
RA 9298 provides that temporary or special permits may be issued to Foreign CPAs in the following situations:
A. A foreign CPA was called for consultation which, in the judgment of the Board of Accountancy, is essential for the development of the Philippines. The permit restricts the foreign CPA’s practice to the particular consultation.work being performed. No Filipino CPA was qualified for such consultation.
B. A foreign CPA was engaged to lecture on fieids essential to accountancy education in the Philippines. The permit restricts the CPA to teaching only, and limited public practice provided such practice is conducted outside class hours.
C. A foreign CPA, an IFRS expert, is engaged for services deemed essential for the advancement of accountancy in the Philippines which can also be performed by Filipino CPAs
D. All of the above situations do not justify the issuance of a temporary or special permit.
A
Violations of the IRR shall subject the CPA to fines and penalties as provided for in RA 9298, including its IRR. Such violations include:
I. Engaging in public accounting practice without first registering with the PRBOA and the SEC
II. Continuing to engage in the practice of public accountancy after the expiration of the registration/accreditation
III. Continuing to engage in the practice of public accountancy after suspension, revocation or withdrawal of registration
IV. Giving any false information, data, statistics, reports or other statement which tend to mislead, obstruct, or obscure the registration of an Individual CPA, Firm or Partnership of CPAs under the IRR.
V. Giving any misrepresentation to the effect that registration was secured in truth when in fact, it was not secured
VI. Failure or refusal to undergo quality review
A. I, II, III, IV, V, and VI
B. I, II, III, IV, and V
C. I, II, III, IV, and VI
D. I, II, IV, V, and VI
A
Fill out the table below to summarize pointers on the PRBOA:
Composition
Nominations
One (1) complete term
Maximum no. of years
Vice Chairman (term)
Two (2) consecutive complete terms
The following are qualifications of the members of the Board of Accountancy, EXCEPT:
A. Natural-born citizen and resident of the Philippines.
B. Duly registered CPA with at least five (5) years of work experience in any scope of practice of accountancy.
C. Good moral character, not convicted of crimes involving moral turpitude.
D. No direct, or indirect pecuniary interest in any school, college, university or institution conferring the B.S. Accountancy degree or providing CPA Review classes.
D
The following qualifications are common to members of the PRBOA and the applicants for CPALE, EXCEPT:
A. good moral character.
B. natural-born Filipino citizen.
C. Both A and B.
D. Neither A nor B.
B
The Accredited Integrated Professional Organization (AIPO) shall submit its nominations for the PRBOA, with complete documentation, to the Commission
A. Not later than sixty (60) days prior to the expiry of the term of an incumbent chairman or member.
B. On the date of expiry of the term of an incumbent chairman or member.
C. After the 60th day from the expiry of the term of an incumbent chairman or member.
D. Upon request by the Commission for the submission of nominations.
A
The following are among the powers and functions of the PRBOA, EXCEPT:
A. To prescribe and/or adopt a Code of Ethics for the practice of accountancy
B. To ensure, in coordination with DepEd and CHED that all senior high schools and higher education institutions offering accountancy-related programs and strand comply with prescribed policies, standards and requirements
C. To conduct an oversight into the quality of audits of financial statements
D. None of the choices
B
The following are grounds for suspension or removal of members of the PRBOA, EXCEPT:
A. Neglect of duty or incompetence.
B. Violation or tolerance of any violation of RA 9298 and its IRR, or the Code of Ethics and technical and professional standards of practice for CPAs.
C. Pending case on a crime involving moral turpitude.
D. Manipulation or rigging of the CPA licensure examination results.
C
According to the IRR of RA 9298, this group is tasked to assist the PRC in accepting, evaluating, and approving applications for accreditation of CPE programs, activities or sources as to their relevance to the profession and determine the number of CPE credit units to be earned on the basis of the contents of the programs, activity or source submitted by the CPE providers.
A. PRC Quality Review Committee
B. PRC Education Technical Council
C. PRC CPE Council
D. PRC CPD Committee
C
The Quality Review Committee (QRC) shall have the following functions:
A. Conduct quality control review on applicants for registration to practice public accountancy and render a report on such quality review
B. Revoke the certificate of registration and professional ID of an individual CPA, firm, or partnership of CPAs who have not observed quality control measures.
C. Both A and B
D. Neither A nor B
A
Which of the following is not represented in both AASC and FRSC?
A. SEC
B. BSP
C. PRBOA
D. BIR
D
Evaluate the following statements:
I. The Philippine Institute of Certified Public Accountants is registered with the SEC as a non- stock corporation and recognized by the PRBOA, subject to the approval by the PRC.
II. Membership in PICPA shall be a bar to membership in any other association of certified public accountants.
A. True, True
B. True, False
C. False, True
D. False, False
B
Sectoral organizations have been established to promote the interests of groups of professional accountants. Which of the following is the sectoral organization for CPAS employed under oil and gas companies?
A. GACPA
B. ACPAPP
C. ACPACI
D. NACPAE
C
The Securities Exchange Commission restrict accredited auditors from providing many non-audit services to their audit clients. Which of the following is true for SEC-accredited auditors?
I. They are restricted from providing internal audit outsourcing services to audit clients.
II. There is no restriction on providing non-audit services to audit clients.
A. I only
B. II only
C. Both I and II
D. Neither I nor II
A
Which of the following is a CORRECT qualification of the Chairman and two Commissioners of COA?
A. A naturalized citizen of the Philippines
B. At least forty (40) years of age upon appointment
C. CPAs with no less than five (5) years of auditing experience or members of the Philippine bar who have been engaged in law practice for at least five (5) years
D. Must not have been candidates for any elective position preceding appointment
C
Evaluate the following statements:
Statement 1: The vision of COA is: a trustworthy, respected, and independent audit institution that is an enabling partner of government in ensuring a better life for every Filipino.
Statement 2: Patriotism, excellence, and integrity are among the core values being adhered to by COA.
A. Only statement 1 is correct.
B. Both statements are correct.
C. Only statement 2 is correct.
D. Both statements are incorrect.
B
