Description : The standard-setting body whose chairman had been or presently a senior accounting practitioner in any scope of accounting practice is a. AASC b. FRSC c. PICPA d. ACPAPP
Last Answer : FRSC
Description : The 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. Mete out ... with the standards of quality prescribed for the practice of public accountancy. d. All of these
Last Answer : Conduct quality control review on applicants for registration to practice public accountancy and render a report on such quality review.
Description : It involves a study or evaluation of the quality of audit of financial statements through a review of quality control measures established by on CPA firms and individual CPAs in public practice to ... standards and practices a. External audit b. Compliance audit c. Peer review d. Quality review
Last Answer : Quality review
Description : Which of the following mostly describes the function of AASC? a. To monitor full compliance by auditors to PSAs. b. To assist the Board of Accountancy in conducting administrative proceedings on ... both auditing and financial accounting in order to make them responsive to the needs of the public
Last Answer : To promulgate auditing standards, practices and procedures that shall be generally accepted by the accounting profession in the Philippines.
Description : Which of the following is the authoritative body designated to promulgate auditing standards? a. Financial Reporting Standards Council b. PICPA c. Association of CPAs in Public Practice and PICPA d. Auditing and Assurance Standards Council
Last Answer : Auditing and Assurance Standards Council
Description : The Philippine Framework for Assurance Engagements a. Provides a frame of reference for CPAs in public practice when performing audits, reviews, and compilations of historical financial information. b. ... of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply
Last Answer : Defines and describes the elements and objectives of an assurance engagement, and identifies engagements to which PSAs, PSREs, and PSAEs apply
Description : CPAs in public practice who perform assurance engagements are governed by the following, except a. Framework for Assurance Engagements b. Philippine Standards on Quality Control c. Code of Ethics for ... Accountants in the Philippines d. AASC's Engagement Standards (PSAs, PSREs, PSAEs, and PSRSs
Last Answer : AASC's Engagement Standards (PSAs, PSREs, PSAEs, and PSRSs
Description : Which of the following is not an objective of requiring registration of individual CPAs and Firms of partnership of CPAs engaged in public accounting practice? a. The required registration will ... will help PRC and BOA to identify and impose corresponding sanctions and penalties on individual CPAs
Last Answer : The required registration will give equal opportunities to CPAs in the practice of their profession.
Description : The CPA shall not concurrently engage in any business or occupation which impairs his objectivity in rendering professional services or which is inconsistent with his practice or employment. This ... accountancy, or employed in a private enterprise, a government agency or an educational institution
Last Answer : All CPAs engaged in public accountancy, or employed in a private enterprise, a government agency or an educational institution
Description : Foreign CPAs a. Are allowed to practice accountancy in the Philippines without restriction. b. Are never allowed to practice accountancy in the Philippines. c. May be allowed to practice ... be allowed to practice accountancy in the Philippines, subject to the rules and regulations on reciprocity
Last Answer : May be allowed to practice accountancy in the Philippines, subject to the rules and regulations on reciprocity
Description : Special/temporary permit may be issued by the Board to the following persons except: a. A foreign CPA engaged as a professor or lecturer in the fields essential to accountancy education in ... of accountancy and his/her service is essential for the advancement of accountancy in the Philippines
Last Answer : A foreign CPA who can prove that the country of which he or she is a citizen admits citizens of the Philippines to the practice of the same profession without restriction
Description : Regarding practice of accountancy, which of the following certificates is issued to a CPA first, a certificate of registration or a certificate of accreditation? a. Certificate of registration b. Certificate of accreditation c. Both are issued at the same time d. Neither are issued to CPAs
Last Answer : Certificate of registration
Description : Engagement letters are widely used in practice for professional engagements of all types. The primary purpose of the engagement letter is to a. Remind management of its primary responsibility over the financial ... a written record of the agreement with the client as to the services to be provided.
Last Answer : Provide a written record of the agreement with the client as to the services to be provided.
Description : In which of the following circumstances would a CPA be bound by ethics to refrain from disclosing any confidential information obtained during the course of a professional engagement? a. The CPA is ... the PICPA. d. An inquiry by a disciplinary body of PICPA requests confidential client information
Last Answer : A major stockholder of a client company seeks accounting information from the CPA after management declined to disclose the requested information
Description : The confidential relationship will be violated if, without client's permission, the CPA provides working papers about client to a. A court of law which subpoenas them. b. Another CPA firm as part ... . d. An investigative or disciplinary body which is conducting a review of the CPA's practice.
Last Answer : Another CPA firm which has just purchased the CPA's entire practice.
Description : Which of the following is a correct qualification of the Chairman and Two Commissioners of the Commission on Audit? a. A citizen of the Philippines b. At least 40 years of age upon appointment. c ... experience or members of Philippine bar who have been engaged in law practice for at least 5 years
Last Answer : Must not have been candidates for any elective position preceding appointment.
Description : Without the consent of the client, a CPA should not disclose confidential information contained in working papers to a: a. Voluntary quality control review board. b. CPA firm that has purchased the ... . c. National court that has issued a valid subpoena. d. Disciplinary body created under statute.
Last Answer : CPA firm that has purchased the CPA’s accounting practice.
Description : Contingent fees charged by CPAs engaged in tax practice are permitted under the rules of professional conduct because: a. This practice establishes fees which are commensurate with the value of ... . The consequences are based upon findings of judicial proceedings or the findings of tax authorities
Last Answer : The consequences are based upon findings of judicial proceedings or the findings of tax authorities
Description : Which of the following is not mentioned as a power of the Board? a. To monitor the conditions affecting the practice of accountancy. b. To supervise the registration, licensure and ... , suspend, revoke, or reinstate the Certificate of Registration for the practice of the accountancy profession
Last Answer : To sentence to imprisonment CPAs who have been found guilty of violations of the Accountancy Act
Description : Which of the following is the accredited national professional organization of CPAs? a. IFAC b. ASC c. AASB d. PICPA
Last Answer : PICPA
Description : Which of the following is prohibited by the Code of Professional Ethics for CPAs? a. Use of a firm name which includes the name of a retired partner. b. Accepting an engagement or ... newspaper of the opening of a public accounting office. d. Engaging in civic activities during business hours
Last Answer : Accepting an engagement or employment which one cannot reasonably expect to complete or discharge with professional competence
Description : Which statement is incorrect regarding the Code of Ethics for Professional Accountants in the Philippines? a. Professional accountants refer to persons who are Certified Public Accountants (CPA) ... the ethical requirements as the basic principles which they should follow in performing their work
Last Answer : Where a national statutory requirement is in conflict with a provision of the IFAC Code, the IFAC Code requirement prevails.
Description : The 1986 Constitution provides that the Chairman and Commissioners of the Commission on Audit shall be a. All lawyers b. All Certified Public Accountants c. Two lawyers and one CPA d. One or two lawyers and one or two CPAs for a total of three
Last Answer : One or two lawyers and one or two CPAs for a total of three
Description : Which of the following is the single feature that most clearly distinguishes auditing, attestation, and assurance: a. CPA's approach to the service. b. Type of service. c. Scope of services. d. Training necessary to perform the service
Last Answer : Scope of services
Description : The Code of Professional Ethics states, in part, that a CPA should maintain integrity and objectivity. Objectivity refers to the CPA's ability to a. Determine accounting practices that were consistently ... . c. Determine the materiality of items. d. Insist on all matters regarding audit procedures.
Last Answer : Maintain an impartial attitude on all matters which come under his review.
Description : Which of the following types of auditing is performed most commonly by CPA's on a contractual basis? a. Internal auditing b. Income tax auditing c. External auditing d. Government auditing
Last Answer : External auditing
Last Answer : Scope of services.
Description : The predominant type of attestation service performed by CPAs is: a. Audit. b. Review. c. Compilation d. Management consulting
Last Answer : Audit
Description : The attest function: a. Is an essential part of every engagement performed by a CPA. b. Includes the preparation of a written report of the CPA's conclusion. c. Requires a complete review ... under examination. d. Requires a review of a sample of transactions during the period under examination.
Last Answer : Includes the preparation of a written report of the CPA's conclusion
Description : Working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the ... d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged.
Last Answer : Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit.
Description : When CPAs are able to maintain an independent attitude in fulfilling theirresponsibility, it is referred to as independence in a. Fact. b. Appearance. c. Conduct. d. Tota
Last Answer : Fact.
Description : The working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the ... d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged
Last Answer : Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit
Description : Individual CPAs, Firms or Partnerships of CPAs, including partners and staff members thereof shall register with the BOA and the PRC. If the accreditation of Velasco and Co., CPAs, was renewed on September 30, ... . September 30, 2010 b. September 30, 2011 c. December 31, 2010 d. December 31, 2011
Last Answer : September 30, 2011
Description : Though PSAs do not provide "hard and fast rules," they provide subjective guidance which allow the auditors to: a. Only apply those standards that are important to the audit. b. Use ... Tailor their audit to procedures requested by management. d. Accurately interpret the Code of Ethics for CPAs
Last Answer : Use adequate professional judgment when applying the standards.
Description : The revised Code of Ethics is mandatory for all CPAs and is applicable to professional services performed in the Philippines on or: a. Before June 30. 2008 b. After June 30, 2008 c. Before January 1,2008 d. After January 1, 2008
Last Answer : After June 30, 2008
Description : Individual CPAs, Firms or Partnerships of CPAs, including partners and staff members thereof shall register with the BOA and the PRC. Assuming that the application for registration of Sisip and Co., CPAs was ... on Dec. 31, 2007 which is also the last day of renewal of certificate of registration.
Last Answer : The registration will expire on Dec. 31, 2007.
Description : Which of the following statements is correct? a. The fair presentation of audited financial statements in accordance with applicable financial reporting framework is an implicit part of the auditor's ... those who provide audit and tax services, also provide consulting services to their clients.
Last Answer : Most CPAs, including those who provide audit and tax services, also provide consulting services to their clients.
Description : The Code of Professional Ethics states, in part, that a CPA should maintain integrity and objectivity. Objectivity refers to the CPA's ability to a. Insist on all matters regarding audit ... were consistently applied. d. Maintain an impartial attitude on all matters which come under his review
Last Answer : Maintain an impartial attitude on all matters which come under his review
Description : .As part of audit planning, CPAs should design audit programs for each individual audit and should include audit steps and procedures to a. Ensure that only material items are audited. b. Provide ... are met. c. Detect and eliminate fraud. d. Increase the amount of management information available
Last Answer : Provide assurance that the objectives of the audit are met.
Description : Which of the following statements is true? a. Professional standards prohibit CPAs from performing non-assurance engagements. b. Absolute assurance is attainable owing to the fact that much of ... to whether the subject matter conforms, in all material respects, with the identified suitable criteria
Last Answer : The CPA’s conclusion provides a level of assurance about the subject matter.
Description : .Which of the following fee arrangements is in violation of the Code of Professional Conduct? a. A fee based on whether the CPA's report on the client's financial statements results in the approval of a ... actual time spent on the engagement. d. A fee based on the fee charged by the prior auditor.
Last Answer : A fee based on whether the CPA's report on the client's financial statements results in the approval of a bank loan
Description : .In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm a. Which owes the CPA audit ... owes the CPA audit fees for services in the current year and has just filed a petition for bankruptcy
Last Answer : Which owes the CPA audit fees for services in the current year and has just filed a petition for bankruptcy
Description : The concept of materiality would be least important to an auditor when considering the a. Decision whether to use positive or negative confirmations of accounts receivable. b. Adequacy of disclosure of a ... . d. Effects of a direct financial interest in the client upon the CPA's independence.
Last Answer : Effects of a direct financial interest in the client upon the CPA's independence.
Description : The confidential relationship applies to a. All services provided by CPAs. b. Only audit and attestation services. c. Audit and tax services, but no MAS services. d. Audit and MAS services, but not tax services
Last Answer : All services provided by CPAs
Description : Which of the following statements is incorrect? a. CPAs lose their independence if they acquire any direct financial interest in a client. b. CPAs lose their independence if they have a material ... d. CPAs lose their independence if they acquire a material indirect financial interest in a client.
Last Answer : CPAs lose their independence if they acquire any indirect financial interest in a client.
Description : When CPAs are able to maintain an independence attitude in fulfilling their responsibility, it is referred to as independence in a. Fact. b. Appearance. c. Conduct. d. Total.
Last Answer : Fact
Description : Which of the following factors would most likely cause a CPA to decide not to accept a new audit engagement? a. The CPA's lack of understanding of the prospective client's internal auditor's ... . d. Management's refusal to permit the CPA to perform substantive tests before the year-end.
Last Answer : Management’s disregard of its responsibility to maintain an adequate internal control environment
Description : Which of the following statements concerning consulting services is incorrect? a. The performance of consulting services for audit clients does not, in and of itself, impair the auditor's ... including those who provide audit and tax services, also provide consulting services to their clients
Last Answer : Consulting services ordinarily involve external reporting
Description : A review of a company's financial statements by a CPA firm: a. Is similar in scope to an audit and adds similar credibility to the statements. b. Is significantly less in scope than an ... s opinion as to the fairness of the financial statements. d. Is designed to provide only moderate assurance
Last Answer : Is designed to provide only moderate assurance
Description : The Code of Ethics contains both general ethical principles that are aspirational in character and also a: a. List of violations that would cause the automatic suspension of the CPA's license. b ... observe. d. List of specific crimes that would be considered as acts discreditable to the profession.
Last Answer : Set of specific, mandatory rules describing levels of conduct the CPA must observe