Confidentiality in Accounting

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Questions and Answers

What is the minimum general average score required to pass the licensure examination for accountants?

65%

70%

80%

75% (correct)

Which of the following subjects is NOT included in the licensure examination for certified public accountants?

Theory of Accounts

Auditing Problems

Business Law and Taxation

Financial Management (correct)

If a candidate scores at least 75% in the majority of subjects, what provision allows them to retake remaining subjects?

Limited exemption

Conditional credit (correct)

Provisional approval

Tentative pass

What is the maximum score a candidate can receive in each subject and still be considered a failure in the examination?

65% Signup and view all the answers

What is the time frame within which a candidate must re-examine the remaining subjects after receiving conditional credit?

Two years Signup and view all the answers

Which of the following does NOT need to be conferred upon the candidate before taking the licensure examination?

Approval from the Board Signup and view all the answers

What is the role of the Board regarding the examination rating?

Submits the rating to the Commission Signup and view all the answers

What consequence faces a candidate who fails to meet the passing scores upon retaking the examination?

Considered as failed in the entire examination Signup and view all the answers

What is the minimum number of units a candidate must complete to retake the licensure examination after failing twice?

24 units Signup and view all the answers

What is required of all successful candidates before they can practice their profession?

An oath of professionalism Signup and view all the answers

What document is issued to examinees who pass the licensure examination?

Certificate of Registration Signup and view all the answers

How often must the Professional Identification Card be renewed?

Every three years Signup and view all the answers

Who is authorized to administer the oath to successful candidates?

A government official authorized by the Commission Signup and view all the answers

What must accompany the issuance of the Certificate of Registration?

Payment of prescribed fees Signup and view all the answers

What specifically does the roster maintained by the Board show?

Names and places of business of registered accountants Signup and view all the answers

What happens to the Certificate of Registration once issued?

It remains valid until revoked or suspended Signup and view all the answers

What is the general status of working papers created by a certified public accountant during an examination?

They are considered confidential and privileged. Signup and view all the answers

What is required for working papers to be disclosed if they are demanded through a legal process?

A subpoena issued by a legal authority. Signup and view all the answers

What must certified public accountants do to maintain their practice according to the content?

Register and renew their registration every three years. Signup and view all the answers

What is the role of the integrated and accredited national professional organization?

To provide benefits and privileges to its members. Signup and view all the answers

What must occur in the absence of a written agreement regarding working papers?

Documents remain the property of the CPA. Signup and view all the answers

Which entity should the national professional organization be registered with?

The Securities and Exchange Commission. Signup and view all the answers

What is an essential requirement for registered certified public accountants detailed in the content?

They should engage in a Continuing Professional Education (CPE) program. Signup and view all the answers

What happens if there is a violation of the registration requirements by a CPA?

They may face fees and penalties. Signup and view all the answers

What change was made to the number of subjects in the BLECPA examination?

Reduced from seven to six Signup and view all the answers

Which subject replaced 'Theory of Accounts' in the BLECPA sequence?

Financial Accounting and Reporting Signup and view all the answers

What was the main reason for revising the BLECPA subjects?

To rationalize and integrate related subjects Signup and view all the answers

Which of the following subjects was not included in the old LECPA subjects list?

Regulatory Framework for Business Transaction Signup and view all the answers

What does AFAR stand for in the new LECPA subject list?

Advanced Financial Accounting and Reporting Signup and view all the answers

When did the changes to the BLECPA subjects become effective?

March 9, 2016 Signup and view all the answers

Which stakeholder group was consulted about the revision of the BLECPA subjects?

Members of the academe and other stakeholders Signup and view all the answers

What was the status of the BLECPA subjects before the revision?

The subjects remained unchanged since 1975 Signup and view all the answers

What is the role of the Secretary of Justice in relation to the Commission and the Board?

Serve as the legal adviser and provide legal assistance Signup and view all the answers

Which group is responsible for assisting the Commission in filing appropriate charges?

The Board Signup and view all the answers

What provision is made for graduates with a Bachelor's Degree in Accounting under the Act?

They can take the CPA Licensure Examination within two years of the Act's effectivity Signup and view all the answers

What happens if any part of the Act is declared unconstitutional?

Only the specific part involved in the controversy is affected Signup and view all the answers

What is the purpose of including the Commission's programs in the annual General Appropriations Act?

To ensure the implementation of the Act's provisions Signup and view all the answers

What is the repeal status of Presidential Decree No. 692 with the enactment of this Act?

It is fully repealed Signup and view all the answers

Under what condition does this Act take effect?

Fifteen days after publication in an official source Signup and view all the answers

What is required for the provisions of this Act to be enforced by law enforcement agencies?

A specific request or call from the Commission or Board Signup and view all the answers

Study Notes

Confidentiality of Accountant Documents

All working papers, schedules, and memoranda by certified public accountants (CPAs) are confidential and privileged.
These documents remain the property of the CPA unless a written agreement states otherwise.
Confidentiality is waived only if documents are required by a subpoena from a court or regulatory body.

Accredited Professional Organization

All registered CPAs must belong to a single accredited national professional organization.
This organization is registered with the Securities and Exchange Commission and recognized by the Board.
Membership provides benefits and is not exclusive to other associations of CPAs.

Accreditation to Practice Public Accountancy

CPAs, firms, and partnerships must register with the Commission and the Board, renewable every three years.
The Board can implement new registration rules, including fees and penalties for violations.

Continuing Professional Education (CPE)

CPAs must hold a Bachelor of Science in Accountancy from a recognized institution.
Must not have a criminal record involving moral turpitude.

Scope of Examination

Licensure examination subjects include:
- Theory of Accounts
- Business Law and Taxation
- Management Services
- Auditing Theory
- Auditing Problems
- Practical Accounting Problems I & II
The Board can revise or exclude subjects as necessary.

Rating in the Licensure Examination

A minimum general average of 75% is required to pass, with no subject below 65%.
Candidates with conditional credits must retake failed subjects within two years.
Failing candidates twice must complete 24 units of relevant courses to retake the exam.

Oath and Certification

Successful candidates must take a professional oath before practicing.
A Certificate of Registration is granted upon passing the exam, issued by the Commission, valid until revoked or suspended.
Professional Identification Cards are issued, valid for three years, with specific information.

Roster of Certified Public Accountants

The Board maintains an updated roster of CPAs' names and business addresses available to the public.

Enforcement and Legal Assistance

Law enforcement must assist the Commission in enforcing the Act.
Legal counsel from the Secretary of Justice is available for the Commission and Board.

Funding and Transitional Provisions

The Commission's programs under this Act are funded by the General Appropriations Act.
Current Board members serve their appointed terms without needing reappointment post-Act effectivity.

Effectivity and Repealing Clause

The Act takes effect within 15 days of publication.
Previous laws inconsistent with this Act are repealed or modified accordingly.

Updates to Licensure Examination Subjects

PRBOA Resolution # 262 reduced the number of exam subjects from seven to six; effective March 9, 2016.
New subjects:
- Financial Accounting and Reporting (FAR)
- Advanced Financial Accounting and Reporting (AFAR)
- Management Advisory Services (MAS)
- Auditing
- Taxation
- Regulatory Framework for Business Transactions
Changes reflect modern requirements and enhance comprehension and application.

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Description

This quiz explores the confidentiality and privilege of working papers and memoranda created by certified public accountants during examinations. Understand the legal aspects and ownership rights of such documents, and their implications for both accountants and clients. Test your knowledge on the rules governing these crucial aspects of accounting practice.