75 Questions
Which of the following is NOT a role of the Board of Accountancy?
Conduct inspection of financial statements for accuracy
According to the Philippine Accountancy Act of 2004, how many members does the Board of Accountancy consist of?
7 members
What is one key function of the Accounting and Auditing Standard Setting council?
Creating accounting standards for financial reporting
How long is the term for the Chairman and members of the Board of Accountancy under RA 9298?
3 years
What must an individual NOT be directly involved with to qualify as a member of the Board of Accountancy?
Schools or review centers
Which entity can provide meaningful experience for individuals seeking to engage in public practice in accountancy?
Private auditing firms
What does an operational audit primarily focus on?
Measuring performance and management efficiency
Under the Philippine Accountancy Act of 2004, who appoints the Chairman and members of the Board of Accountancy?
President of the Philippines
'Auditor should always maintain independence' refers to which ethical principle in auditing?
Objectivity
'Effective internal control system reduces the possibility of errors and frauds' emphasizes the importance of ____________.
Risk management
What is one of the requirements for a company to be mandated to have a CPA?
At least P10M paid-up capital
In which sector must a CPA possess a Master's degree or be a Licensed Professional Teacher (LPT)?
Academe/Education
According to Annex B, when should CPAs, staff members, and firms in the practice of public accountancy register with the BOA and PRC?
Within 90 days of the revised rules
How many credit units of Continuing Professional Education (CPE) must registered accounting professionals earn in 3 years?
60 credit units
Who is eligible for a temporary exemption from the CPE requirements?
A registered professional practicing abroad 2 years prior to renewal
Which source is NOT mentioned as a way to earn CPE credit units?
Public Accountancy Practice
For how many years is the registration of CPAs, staff members, and firms in public accountancy valid?
3 years
What is the minimum number of CPE credit units that must be earned in each year by registered accounting professionals?
15
What is the consequence if the registration of CPAs, staff members, and firms in public accountancy is not renewed by September 30?
'The registration remains valid until December 31 of the expiry year.'
'What is true about the CPE Credit Units for registered accounting professionals?'
'A minimum of 10 credit units needs to be earned each year.'
What is the primary objective of a Financial Statement Audit as defined by PSA 200?
To express an opinion on the fair presentation of the financial statements
Which of the following is NOT a limitation that affects the level of assurance provided by auditors according to PSA 200?
The conclusive nature of audit evidence
According to PSA 200, what is the responsibility of an auditor when planning and performing an audit?
Exercise professional judgment and obtain sufficient appropriate audit evidence
Which of the following is NOT a reason for the need for an independent Financial Statement Audit?
Lack of legal requirement for audits
What does PSA 200 state about the nature of audit evidence?
Audit evidence is generally persuasive but not conclusive in nature
What kind of risk is associated with the use of testing and sampling in auditing?
Sampling risk
Which principle outlined in PSA 200 governs an auditor's compliance with relevant ethical requirements?
Comply with relevant ethical requirements
According to PSA 200, what should be the attitude of an auditor when conducting an audit?
'Professional skepticism' approach
'Independence' requirement for a Financial Statement Audit arises primarily due to:
'Conflict of interest between management and users'
'Professional judgment' is a key aspect according to PSA 200 because auditors need to:
'Make informed decisions based on available evidence'
Who appoints the Chairman and members of the Educational Technical Council?
Philippine Regulatory Commission (PRC)
How many representatives from the Association of CPA in Public Practice (APO) are part of the Educational Technical Council?
5
What is the term length for Chairman and members of the Quality Review Committee (QRC)?
3 years
What is the purpose of the Continuing Professional Development (CPD) program?
To ensure ongoing professional development for accountants
How many subjects must have at least a 75% average with no grades lower than 65% to pass the examination?
4
According to PSA 200, auditors must provide absolute assurance on the fair presentation of financial statements.
False
One of the limitations affecting the level of assurance provided by auditors is the reliance on management's representation.
True
An auditor's objective is to express an opinion on the fair presentation of financial statements.
True
Auditors are not required to comply with relevant ethical requirements according to PSA 200 guidelines.
False
An independent financial statement audit is primarily needed to resolve conflicts of interest between management and users of financial statements.
True
PSA 200 emphasizes the importance of auditors obtaining insufficient audit evidence.
False
Professional skepticism is not required when planning and performing an audit according to PSA 200.
False
The primary objective of a financial statement audit is to provide absolute assurance on the accuracy of financial data.
False
A company can be mandated to have a CPA primarily due to the nature of audit evidence.
False
'Obtaining and evaluating evidence about assertions' is not a key component of auditing according to PSA 200.
False
An audit benefits only the client's management team.
False
Compliance Audit focuses on measuring the performance of an organization.
False
The Board of Accountancy under RA 9298 is composed of a Chairman and 5 members.
False
The Chairman and members of the Board of Accountancy can serve more than 2 complete terms with no restrictions.
False
The Professional Regulatory Commission (PRC) appoints the Chairman and members of the Accounting and Auditing Standard Setting council.
True
The Accounting and Auditing Standard Setting council does not include representation from the major organizations of preparers and users of Financial Statements.
False
The term for the Vice-Chairman of the Board of Accountancy is renewable for more than one term.
False
The Board of Accountancy has no power to investigate violations of the Philippine Accountancy Act of 2004.
False
The Accounting and Auditing Standard Setting council is not involved in setting Financial Reporting Standards.
False
The composition of the Board of Accountancy includes a total of 7 members appointed by the President directly.
False
The term of the Chairman and members of the Educational Technical Council is 2 years renewable for another term.
False
The Quality Review Committee (QRC) consists of 5 representatives from the Association of CPA in Public Practice.
False
The Board of Accountancy submits an annual report to the President of the Philippines through the PRC at the end of every fiscal year.
False
Members of the Quality Review Committee (QRC) are appointed by the PRC upon the recommendation of the BOA.
True
The Continuing Professional Education (CPE) Council under PRC consists of 2 representatives from PICPA.
False
The Chairperson of the PRC appoints all the members of the CPE Council.
False
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.
False
The members of the Educational Technical Council are co-terminus with their corresponding incumbency.
True
The Chairman and members of the Quality Review Committee have a term of 4 years renewable for another term.
False
CPAs in public practice need to be registered with SEC regardless of their experience.
False
Commerce and Industry must have at least P5M paid-up capital to be required to have a CPA.
True
CPAs in practice must renew their Certificate of Accreditation once every 5 years.
False
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.
False
Excess credit units earned in one year for CPE requirements can be carried over to the next three-year period.
True
A registered professional is permanently exempt from CPE requirements upon reaching 60 years old.
False
Sources of credit units for CPE include being an author, inventor, and seminar participant.
True
Temporary exemption from CPE requirements is granted to professionals practicing abroad for 1 year prior to renewal.
False
CPAs in public accountancy need to renew their registration before September 15 to avoid expiration by the end of the year.
False
A CPA working in Academe/Education must have a Master's degree or be an ongoing Masteral student.
False
CPAs in Government are part of Civil Service and are required to be part of JPIA.
False
Test your knowledge on Philippine accounting laws including the terms and differences between various organizations and councils. Learn about the appointment process of chairman and members in different accounting bodies.
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