CH2 [Roque] The Accountancy Profession

Question 1

Republic Act No. _________________________, also known as the “___________________________,” shall provide for and govern the standardization and regulation of accounting education; the examination for registration of CPAs; and the supervision, control, and regulation of the practice of accountancy

a. No. 9298, Philippine Accountancy Act of 2004
b. No. 9298, Revised Accountancy Law
c. No. 692, Philippine Accountancy Act of 2004
d. No. 692, Revised Accountancy Law

Answer 1

a

Question 2

Which of the following is not an objective of the Philippine Accountancy Act of 2004?

a. The standardization and regulation of accounting education
b. The examination for registration of certified public accountants
c. The supervision, control, and regulation of the practice of accountancy in the Philippines
d. The development and improvement of accounting standards that will be generally accepted in the Philippines

Answer 2

d

Question 3

The practice of Accountancy includes

I. Practice of Public Accountancy
II. Practice in Commerce and Industry
III. Practice in Education/Academe

a. I and II only
b. II and III only
c. I and III only
d. I, II, and III

Answer 3

d

Question 4

A CPA is in public accounting practice when he/she

a. Represents his/her employer before government agencies on tax and other matters related to accounting
b. Represents his/her clients before government agencies on tax and other matters related to accounting
c. Teaches accounting, auditing, management advisory services, accounting aspect of finance, business law, taxation, and other technically related subjects
d. Holds, or is appointed to, a position in an accounting professional group in a government or in a government-owned and/or controlled corporation where decision making requires professional knowledge in the science of accounting

Answer 4

b

Question 5

Section 4 of the Rules and Regulations Implementing RA 9298 (IRR) provides that any position in any business 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 should be occupied by a duly registered CPA. It provides further that the business or company where such position exists has a

a. Paid-up capital of at least P5,000,000 and/or an annual revenue of at least P10,000,000
b. Paid-up capital of at least P10,000,000 and/or an annual revenue of at least P5,000,000
c. Paid-up capital and/or annual revenue of at least P10,000,000
d. Paid-up capital and/or an annual revenue of at least O5,