Philippine Accounting Laws Quiz
75 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which of the following is NOT a role of the Board of Accountancy?

  • Issue, revoke, and cancel registration of CPAs
  • Conduct inspection of financial statements for accuracy (correct)
  • Regulate rules and supervise registration of CPAs
  • Adopt an official seal and Code of Ethics for accountants

    • According to the Philippine Accountancy Act of 2004, how many members does the Board of Accountancy consist of?

  • 7 members (correct)
  • 5 members
  • 11 members
  • 9 members

    • What is one key function of the Accounting and Auditing Standard Setting council?

  • Creating accounting standards for financial reporting (correct)
  • Developing marketing strategies for accounting firms
  • Regulating employment laws in the accounting industry
  • Setting rules for conducting corporate mergers

    • How long is the term for the Chairman and members of the Board of Accountancy under RA 9298?

    <p>3 years</p> Signup and view all the answers

    What must an individual NOT be directly involved with to qualify as a member of the Board of Accountancy?

    <p>Schools or review centers</p> Signup and view all the answers

    Which entity can provide meaningful experience for individuals seeking to engage in public practice in accountancy?

    <p>Private auditing firms</p> Signup and view all the answers

    What does an operational audit primarily focus on?

    <p>Measuring performance and management efficiency</p> Signup and view all the answers

    Under the Philippine Accountancy Act of 2004, who appoints the Chairman and members of the Board of Accountancy?

    <p>President of the Philippines</p> Signup and view all the answers

    'Auditor should always maintain independence' refers to which ethical principle in auditing?

    <p><em>Objectivity</em></p> Signup and view all the answers

    'Effective internal control system reduces the possibility of errors and frauds' emphasizes the importance of ____________.

    <p><em>Risk management</em></p> Signup and view all the answers

    What is one of the requirements for a company to be mandated to have a CPA?

    <p>At least P10M paid-up capital</p> Signup and view all the answers

    In which sector must a CPA possess a Master's degree or be a Licensed Professional Teacher (LPT)?

    <p>Academe/Education</p> Signup and view all the answers

    According to Annex B, when should CPAs, staff members, and firms in the practice of public accountancy register with the BOA and PRC?

    <p>Within 90 days of the revised rules</p> Signup and view all the answers

    How many credit units of Continuing Professional Education (CPE) must registered accounting professionals earn in 3 years?

    <p>60 credit units</p> Signup and view all the answers

    Who is eligible for a temporary exemption from the CPE requirements?

    <p>A registered professional practicing abroad 2 years prior to renewal</p> Signup and view all the answers

    Which source is NOT mentioned as a way to earn CPE credit units?

    <p>Public Accountancy Practice</p> Signup and view all the answers

    For how many years is the registration of CPAs, staff members, and firms in public accountancy valid?

    <p>3 years</p> Signup and view all the answers

    What is the minimum number of CPE credit units that must be earned in each year by registered accounting professionals?

    <p>15</p> Signup and view all the answers

    What is the consequence if the registration of CPAs, staff members, and firms in public accountancy is not renewed by September 30?

    <p>'The registration remains valid until December 31 of the expiry year.'</p> Signup and view all the answers

    'What is true about the CPE Credit Units for registered accounting professionals?'

    <p>'A minimum of 10 credit units needs to be earned each year.'</p> Signup and view all the answers

    What is the primary objective of a Financial Statement Audit as defined by PSA 200?

    <p>To express an opinion on the fair presentation of the financial statements</p> Signup and view all the answers

    Which of the following is NOT a limitation that affects the level of assurance provided by auditors according to PSA 200?

    <p>The conclusive nature of audit evidence</p> Signup and view all the answers

    According to PSA 200, what is the responsibility of an auditor when planning and performing an audit?

    <p>Exercise professional judgment and obtain sufficient appropriate audit evidence</p> Signup and view all the answers

    Which of the following is NOT a reason for the need for an independent Financial Statement Audit?

    <p>Lack of legal requirement for audits</p> Signup and view all the answers

    What does PSA 200 state about the nature of audit evidence?

    <p>Audit evidence is generally persuasive but not conclusive in nature</p> Signup and view all the answers

    What kind of risk is associated with the use of testing and sampling in auditing?

    <p>Sampling risk</p> Signup and view all the answers

    Which principle outlined in PSA 200 governs an auditor's compliance with relevant ethical requirements?

    <p>Comply with relevant ethical requirements</p> Signup and view all the answers

    According to PSA 200, what should be the attitude of an auditor when conducting an audit?

    <p>'Professional skepticism' approach</p> Signup and view all the answers

    'Independence' requirement for a Financial Statement Audit arises primarily due to:

    <p>'Conflict of interest between management and users'</p> Signup and view all the answers

    'Professional judgment' is a key aspect according to PSA 200 because auditors need to:

    <p>'Make informed decisions based on available evidence'</p> Signup and view all the answers

    Who appoints the Chairman and members of the Educational Technical Council?

    <p>Philippine Regulatory Commission (PRC)</p> Signup and view all the answers

    How many representatives from the Association of CPA in Public Practice (APO) are part of the Educational Technical Council?

    <p>5</p> Signup and view all the answers

    What is the term length for Chairman and members of the Quality Review Committee (QRC)?

    <p>3 years</p> Signup and view all the answers

    What is the purpose of the Continuing Professional Development (CPD) program?

    <p>To ensure ongoing professional development for accountants</p> Signup and view all the answers

    How many subjects must have at least a 75% average with no grades lower than 65% to pass the examination?

    <p>4</p> Signup and view all the answers

    According to PSA 200, auditors must provide absolute assurance on the fair presentation of financial statements.

    <p>False</p> Signup and view all the answers

    One of the limitations affecting the level of assurance provided by auditors is the reliance on management's representation.

    <p>True</p> Signup and view all the answers

    An auditor's objective is to express an opinion on the fair presentation of financial statements.

    <p>True</p> Signup and view all the answers

    Auditors are not required to comply with relevant ethical requirements according to PSA 200 guidelines.

    <p>False</p> Signup and view all the answers

    An independent financial statement audit is primarily needed to resolve conflicts of interest between management and users of financial statements.

    <p>True</p> Signup and view all the answers

    PSA 200 emphasizes the importance of auditors obtaining insufficient audit evidence.

    <p>False</p> Signup and view all the answers

    Professional skepticism is not required when planning and performing an audit according to PSA 200.

    <p>False</p> Signup and view all the answers

    The primary objective of a financial statement audit is to provide absolute assurance on the accuracy of financial data.

    <p>False</p> Signup and view all the answers

    A company can be mandated to have a CPA primarily due to the nature of audit evidence.

    <p>False</p> Signup and view all the answers

    'Obtaining and evaluating evidence about assertions' is not a key component of auditing according to PSA 200.

    <p>False</p> Signup and view all the answers

    An audit benefits only the client's management team.

    <p>False</p> Signup and view all the answers

    Compliance Audit focuses on measuring the performance of an organization.

    <p>False</p> Signup and view all the answers

    The Board of Accountancy under RA 9298 is composed of a Chairman and 5 members.

    <p>False</p> Signup and view all the answers

    The Chairman and members of the Board of Accountancy can serve more than 2 complete terms with no restrictions.

    <p>False</p> Signup and view all the answers

    The Professional Regulatory Commission (PRC) appoints the Chairman and members of the Accounting and Auditing Standard Setting council.

    <p>True</p> Signup and view all the answers

    The Accounting and Auditing Standard Setting council does not include representation from the major organizations of preparers and users of Financial Statements.

    <p>False</p> Signup and view all the answers

    The term for the Vice-Chairman of the Board of Accountancy is renewable for more than one term.

    <p>False</p> Signup and view all the answers

    The Board of Accountancy has no power to investigate violations of the Philippine Accountancy Act of 2004.

    <p>False</p> Signup and view all the answers

    The Accounting and Auditing Standard Setting council is not involved in setting Financial Reporting Standards.

    <p>False</p> Signup and view all the answers

    The composition of the Board of Accountancy includes a total of 7 members appointed by the President directly.

    <p>False</p> Signup and view all the answers

    The term of the Chairman and members of the Educational Technical Council is 2 years renewable for another term.

    <p>False</p> Signup and view all the answers

    The Quality Review Committee (QRC) consists of 5 representatives from the Association of CPA in Public Practice.

    <p>False</p> Signup and view all the answers

    The Board of Accountancy submits an annual report to the President of the Philippines through the PRC at the end of every fiscal year.

    <p>False</p> Signup and view all the answers

    Members of the Quality Review Committee (QRC) are appointed by the PRC upon the recommendation of the BOA.

    <p>True</p> Signup and view all the answers

    The Continuing Professional Education (CPE) Council under PRC consists of 2 representatives from PICPA.

    <p>False</p> Signup and view all the answers

    The Chairperson of the PRC appoints all the members of the CPE Council.

    <p>False</p> Signup and view all the answers

    The Board upon approval by the PRC must submit an annual report to the President of the Philippines within 30 days from the effectivity of the resolution.

    <p>False</p> Signup and view all the answers

    The members of the Educational Technical Council are co-terminus with their corresponding incumbency.

    <p>True</p> Signup and view all the answers

    The Chairman and members of the Quality Review Committee have a term of 4 years renewable for another term.

    <p>False</p> Signup and view all the answers

    CPAs in public practice need to be registered with SEC regardless of their experience.

    <p>False</p> Signup and view all the answers

    Commerce and Industry must have at least P5M paid-up capital to be required to have a CPA.

    <p>True</p> Signup and view all the answers

    CPAs in practice must renew their Certificate of Accreditation once every 5 years.

    <p>False</p> Signup and view all the answers

    All CPAs, staff members, and firms in the practice of public accountancy must register with the BOA and PRC within 60 days of the revised rules.

    <p>False</p> Signup and view all the answers

    Excess credit units earned in one year for CPE requirements can be carried over to the next three-year period.

    <p>True</p> Signup and view all the answers

    A registered professional is permanently exempt from CPE requirements upon reaching 60 years old.

    <p>False</p> Signup and view all the answers

    Sources of credit units for CPE include being an author, inventor, and seminar participant.

    <p>True</p> Signup and view all the answers

    Temporary exemption from CPE requirements is granted to professionals practicing abroad for 1 year prior to renewal.

    <p>False</p> Signup and view all the answers

    CPAs in public accountancy need to renew their registration before September 15 to avoid expiration by the end of the year.

    <p>False</p> Signup and view all the answers

    A CPA working in Academe/Education must have a Master's degree or be an ongoing Masteral student.

    <p>False</p> Signup and view all the answers

    CPAs in Government are part of Civil Service and are required to be part of JPIA.

    <p>False</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser