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AUD (Oct 2023 CPALE) > Practice and Regulation of Accountancy Profession > Flashcards

Practice and Regulation of Accountancy Profession Flashcards

1
Q

John, a CPA, is an accountant who renders auditing and management advisory services to its clients for a fee.

If John is a managing partner in a partnership of CPAs, what scope of practice is he in?

a. Public
b. Academe
c. Government
d. Commerce and industry

A

a.

Hint: partnership of CPAs

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2
Q

John, a CPA, is an accountant who teaches taxation in Saint Louis College. Under what scope of practice is he in?

a. Public
b. Academe
c. Government
d. Commerce and industry

A

b.

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3
Q

John, a CPA, is an accountant who teaches English to college students.

Under what scope of practice is he in?

a. Public
b. Academe
c. Government
d. None of the choices

A

d.

John may be in the academe, but he is not engaged in teaching accounting subjects.

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4
Q

C, a CPA, is currently employed as an accountant in a cooperative. She performs accounting duties in the cooperative. Under what scope of accountancy does she belong to?

a. Public
b. Commerce and industry
c. Government
d. Academe

A

b.

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5
Q

RA 9298 shall provide for and govern the following, except:

a. Standardization and regulation of accounting education
b. Examination for registration of CPAs
c. Supervision, control, and regulation of the practice of accountancy in the Philippines
d. All of the choices are the objectives of RA 9298

A

d.

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6
Q

Who appoints the chairman of the BOA?

a. PICPA President
b. President of the Philippines
c. Secretary of Finance
d. PRC Commissioner

A

b.

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7
Q

The following are qualifications of members of the board, except:

a. Duly registered CPA with more 10 years of work experience in any scope of practice of accountancy

b. Must not be a director or officer of the APO at the time of appointment

c. Natural born citizen and resident of the Philippines

d. Not convicted of crimes involving moral turpitude

A

a.

“…with AT LEAST 10 years of work experience…”

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8
Q

What is the term of vice chairman of the board?

a. 2 years
b. 1 year
c. 3 years
d. 6 years

A

b.

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9
Q

Which of the following is not a power and function of the board?

a. Issue, suspend, revoke, or reinstate, for no valid reason, the Certificate of Registration for practice of accountancy profession

b. Adopt an official seal of the Board

c. Administer oaths in connection with the administration of this Act

d. Issue a cease or desist order to any person, association, partnership or corporation engaged in violation of any provision of this act, any accounting standards duly promulgated by the Board

A

a.

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10
Q

Mr. A, a member of the BOA, was suspended by the President of the Philippines for an infringement of RA 9298. Which of these might be the reason?

a. A was sued in court for a criminal act, in which the case is still ongoing and no decision was still made to date

b. A manipulated the CPALE results in favor of X, an exam taker and the son of an influential governor, who promised the former that he shall be rewarded with P5,000,000 reward for manipulating the exam results.

c. A followed the Code of Ethics and resolved a petty issue without any further problems.

d. None of the choices.

A

b.

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11
Q

The following are the exam results of A, a CPALE taker:

MAS 90
AUD 86
TAX 73
RFBT 80
FAR 67
AFAR 67

What is his rating?

a. Conditional
b. Failed
c. Passed
d. None of the choices

A

c.

General average of at least 75% is met (77.17%)

No grades lower than 65% in any given subject is also met. Hence, A passed the boards.

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12
Q

J failed the CPA exams twice. His recent take was May 2023. If he took a refresher course and was issued a certificate on October 2023, but will retake the CPALE on October 2025, will the refresher certificate be valid?

a. Yes. The refresher certificate is good for 2 years and 2 exams.

b. Yes, because while it may have exceeded the 2 years period, he will take the exams for first time after his refresher course.

c. No, because the certificate is already expired, despite not taking the exams in the years prior to October 2025.

d. None of the choices.

A

a.

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13
Q

Which of the following is not a content of the Certificate of Registration?

a. Official seal of the Commission and of the Board

b. Full name and assigned registration number of the registrant

c. Expiry date

d. Signature of the chairperson of the Commission and chairman and members of the board

A

c.

Expiry date can be found on Professional Identification Card

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14
Q

Which of the following can be issued a special/temporary permit by the Board?

a. A, a CPA from Australia, who is an internationally recognized expert in public accounting, whose service is for advancement of accountancy in the Philippines

b. J, a CPA from USA, who is engaged both as professor of accounting education and practitioner.

c. L, a CPA from UK, who is called for consultation for specific purpose, but is not essential for the development of the country.

d. None of the choices

A

a.

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15
Q

RA 9298 is a consolidation of what Senate and House Bill?

A

SB 2748 & HB 6678

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16
Q

The APO shall submit its nominations with complete documentation to the PRC not later than ____ days prior to expiry of the term of an incumbent chairman or member.

a. 30
b. 90
c. 120
d. 60

A

d.

17
Q

Who has the primary duty to enforce the provisions of RA 9298 and its IRR?

a. PRC & BOA
b. BOA only
c. PRC only
d. SEC

A

a.

18
Q

Penalty for violation of any of the provisions of RA 9298 or any of its IRR as promulgated by the BOA, subject to approval of the PRC.

A

Fine: Not less than P50,000; or
Imprisonment: not exceeding 2 years; or
Both fine and imprisonment

19
Q

The IRR of RA 9298 shall take effect:

A

within 15 days following the publication in the Official Gazette or in any major daily newspaper of general circulation

20
Q

The following are penalties that can be imposed by the BOA. Choose the exception.

a. Suspension of CPA certificate
b. Revocation of CPA certificate
c. Fine or imprisonment
d. Reprimand

A

c.

21
Q

The following are penalties for non-compliance of the minimum standards of performance, except:

a. Reclusion perpetua
b. Injunction
c. Payment of damages
d. Temporary or permanent loss of license

A

a.

22
Q

Objectives of RA 9298 are the following, except:

a. Examination for registration of CPAs
b. Standardization and regulation of accounting education
c. Supervision, control, and regulation of practice of accountancy in the Philippines
d. To turn Filipino CPAs to be irresponsible, unethical, and incompetent CPAs

A

d.

23
Q

Who shall be the legal adviser to the PRC & BOA and shall render legal assistance as necessary in carrying out the provisions of the Philippine Accountancy Act?

A

Secretary of Justice OR his duly designated representative

24
Q

What is the APO for CPAs?

A

PICPA

25
Q

No person who has served ____ successive complete terms shall be eligible for reappointment until the lapse of ____ year, provided further that no person shall serve the BOA for more than ____ years.

A

2; 1; 12

26
Q

How many years is 1 term for chairman and members of the board?

A

3 years

27
Q

Who can suspend or remove members of the board?

A

President of the Philippines, upon recommendation of the Commission

28
Q

The Board shall elect from among its members for a term of 1 year a:

a. Secretary
b. Vice President
c. Vice Chairman
d. Chairman

A

c.

29
Q

The following are qualifications of a member of BOA at the time of appointment, except:

a. Natural-born citizen and resident of PH
b. Not be a director or officer of the APO at the time of his/her appointment
c. Of good moral character
d. Duly registered CPA with at least 10 years of work experience in public accounting

A

d.

“…at least 10 years of work experience in ANY scope of practice of accountancy”

30
Q

Composition of the BOA:

a. Chairman + 6 members
b. Chairman + 6 members coming from the top auditing firms in the PH
c. Chairman + 6 members appointed by the President of the PH
d. Chairman + 6 members appointed by the Secretary of Finance

A

c.

31
Q

The Board shall submit to the PRC the ratings obtained by each candidate within _____________ after the examination.

A

10 calendar days

32
Q

Maximum number of times a failing CPA candidate sits for the CPALE before he/she is required to attend a refresher course.

a. 2
b. 3
c. 4
d. No limit

A

c.

Maximum will be four (if candidate takes first exam and gets conditional, second exam is a fail and garnering his/her first actual fail, third exam is a conditional, and the fourth one a fail and garnering his/her second actual fail).

33
Q

A CPA certificate is evidence of

A

Basic competence at the time of certification

34
Q

Yuri passed the CPALE. In this case, he shall be issued what?

A

Certificate of Registration and Professional ID Card

35
Q

The CPA shall be required to indicate the ff numbers on the documents he/she signs, uses or issues in connection with the practice of his/her profession:

A
  1. His/her Certificate of Registration
  2. Professional ID Card
  3. Professional Tax Receipt
36
Q

The Professional ID of a CPA is renewable every ___ years

A

3

37
Q

Death or disability of individual CPA and/or dissolution and liquidation of a firm/partnership of CPAs shall be reported to the BOA not later than ____ days from the date of such death, dissolution, or liquidation.

A

30

38
Q

A partner surviving the death or withdrawal of all the other partners in a partnership may continue to practice under the Partnership name for a period of not more than ____ years after becoming a sole proprietor.

A

2

AUD (Oct 2023 CPALE) (8 decks)

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