The Accountancy Profession Flashcards
- The members of the Professional Regulatory Board of Accountancy shall be appointed by the
A. Philippine Institute of CPAs (PICPA).
B. Professional Regulation Commission (PRC).
C. President of the Philippines.
D. Association of CPAs in Public Practice (ACPAPP).
C. President of the Philippines.
- The following statements relate to the submission of nominations to the Board of Accountancy. Which is correct?
A. The Accredited National Professional Organization of CPAs (APO) shall submit its nominations to the president of the Philippines not later than sixty (60) days prior to the expiry of the term of an incumbent chairman or member.
B. The APO shall submit its nominations to the PRC not later than thirty (30) days prior to the expiry of the term of an incumbent chairman or member.
C. If the APO fails to submit its own nominee(s) to the PRC within the required period, the PRC in consultation with the Board of Accountancy shall submit to the president of the Philippines a list of five (5) nominees for each position.
D. There should be adequate documentation to show the qualifications and primary field of professional activity of each nominee.
D. There should be adequate documentation to show the qualifications and primary field of professional activity of each nominee.
- The following statements relate to the term of office of the chairman and members of the Board of Accountancy (BOA). Which is false?
A. The chairman and members of the BOA shall hold office for a term of three (3) years.
B. Any vacancy occurring within the term of a member shall be filled up for the unexpired portion of the term only.
C. No person who has served two successive complete terms as chairman or member shall be eligible for reappointment until the lapse of two (2) years.
D. Appointment to fill up an unexpired term is not to be considered as a complete term.
C. No person who has served two successive complete terms as chairman or member shall be eligible for reappointment until the lapse of two (2) years.
- The Board of Accountancy has the power to conduct 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 the accounting and auditing standards and practices. This power of the BOA is called
A. Quality assurance review C. Appraisal
B. Peer review D. Quality control
A. Quality assurance review
- The Board of Accountancy shall submit to the PRC the ratings obtained by each candidate within _____ days after the examination, unless extended for just cause.
A. 10 C. 2
B. 5 D. 3
A. 10
- Which of the following shall be issued to examinees who pass the CPA licensure examination?
A. Certificate of registration and death certificate.
B. Professional identification card and warrant of arrest.
C. Certificate of registration and professional identification card.
D. Warrant of arrest and death certificate.
C. Certificate of registration and professional identification card.
- Which of the following statements concerning the issuance of Certificates of Registration and Professional Identification Cards to successful examinees is correct?
A. The Certificate of Registration issued to successful examinees is renewable every three (3) years.
B. The Professional Identification Card issued to successful examinees shall remain in full force and effect until withdrawn, suspended or revoked in accordance with RA 9298.
C. The BOA shall not register and issue a Certificate of Registration and Professional Identification Card to any successful examinee of unsound mind.
D. The BOA may, after the expiration of three (3) years from the date of revocation of a Certificate of Registration, reinstate the validity of a revoked Certificate of Registration.
C. The BOA shall not register and issue a Certificate of Registration and Professional Identification Card to any successful examinee of unsound mind.
- Which of the following statements concerning ownership of working papers is incorrect?
A. All working papers made by a CPA and his/her staff in the course of an examination remain the property of such CPA in the absence of a written agreement between the CPA and the client to the contrary.
B. Working papers include schedules and memoranda prepared and submitted by the client of the CPA.
C. Working papers include reports submitted by a CPA to his/her client.
D. Working papers shall be treated confidential and privileged unless such documents are required to be produced through subpoena issued by any court, tribunal, or government regulatory or administrative body.
C. Working papers include reports submitted by a CPA to his/her client.
- Any person who shall violate any of the provisions of the Accountancy Act or any of its implementing rules and regulations promulgated by the Board of Accountancy subject to the approval of the PRC, shall, upon conviction, be punished by
A. A fine of not more than P50,000.
B. Imprisonment for a period not exceeding two years.
C. A fine of not less than P50,000 or by imprisonment for a period not exceeding two years or both.
D. Lethal injection.
C. A fine of not less than P50,000 or by imprisonment for a period not exceeding two years or both.
- Which of the following statements concerning the use of firm or partnership name is incorrect?
A. In the case of an individual CPA, he/she shall do business under his/her registered name with the BOA and the PRC and as printed in his/her CPA certificate (for example, Juan Puruntong, CPA).
B. In the case of a firm, it shall do business under its duly registered and authorized firm name appearing in the registration documents issued by the Department of Trade and Industry (DTI) and other government offices and such firm name shall include the real name of the sole proprietor as printed in his/her CPA certificate (for example, Arnulfo Gumamela and Associates).
C. In the case of a registered partnership, it shall do business under its name as indicated in its current Articles of Partnership and Certificate of Registration issued by the Securities and Exchange Commission (SEC) (for example, Tanya, Sam, and Jervi, CPAs).
D. A CPA shall practice only under an individual, firm, or partnership name in accordance with Philippine laws and shall not include any fictitious name but may indicate specialization.
D. A CPA shall practice only under an individual, firm, or partnership name in accordance with Philippine laws and shall not include any fictitious name but may indicate specialization.
- 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. 1 C. 3
B. 2 D. 4
B. 2
- The death or disability of an individual CPA and/or the dissolution and liquidation of a firm or partnership of CPAs shall be reported to the BOA not later than _____ days from the date of such death, dissolution or liquidation.
A. 15 C. 60
B. 30 D. 90
B. 30
- The following statements relate to CPE credit units. Which is incorrect?
A. The total CPE credit units for registered accounting professionals shall be sixty (60) credit units for three (3) years, provided that a minimum of fifteen (15) credit units shall be earned in each year.
B. Any excess credit units in one year may be carried over to the succeeding years within the three-year period.
C. Excess credit units earned may be carried over to the next three-year period including credit units earned for doctoral and master’s degrees.
D. One credit hour of CPE program, activity or source shall be equivalent to one (1) credit unit.
C. Excess credit units earned may be carried over to the next three-year period including credit units earned for doctoral and master’s degrees.
- Which of the following statements concerning a CPA’s disclosure of confidential client information is ordinarily correct?
A. Disclosure may be made to any party on consent of the client.
B. Disclosure should not be made even if such disclosure will protect the CPA’s professional interests in legal proceedings.
C. Disclosure should be made only if there is a legal or professional duty to make the disclosure.
D. Disclosure may be made to any government agency without subpoena.
A. Disclosure may be made to any party on consent of the client.
- Listed below are names of four 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 is a violation of the Implementing Rules and Regulations of RA 9298?
A. Tin, Ton and Tan, CPAs (Tin died about five years ago; Ton and Tan are continuing the firm.)
B. Pol and Bon, CPAs (The name of Cua, a third partner, is omitted from the partnership name.)
C. Joni and Jona, CPAs (Joni died about three years ago; Jona is continuing the firm as a sole proprietor.)
D. Elias and Co., CPAs (The firm has ten other partners who are all CPAs).
C. Joni and Jona, CPAs (Joni died about three years ago; Jona is continuing the firm as a sole proprietor.)
