CH01 - Accountancy Profession
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Questions and Answers

Which of the following is a specified objective of the Accountancy Act of 2004?

  • Integration of financial technology in accountancy
  • Creation of international accounting standards
  • The supervision, control and regulation of the practice of accountancy in the Philippines (correct)
  • Improvement of accounting software tools
  • What is the minimum number of recommendees for each position in the Board to be submitted by the PRC?

  • Five (correct)
  • Seven
  • Ten
  • Three
  • Which statement regarding the right to practice as a CPA is correct?

  • It is granted automatically to anyone with an accounting degree
  • It is determined by examination results only
  • It is granted by the Board of Accountancy (correct)
  • It can be obtained through experience alone
  • Which of the following qualifications is NOT required for a member or chairman of the board?

    <p>Must possess a valid international accounting certification</p> Signup and view all the answers

    In what situation might the provision regarding employing a CPA not apply?

    <p>If the incumbent is already in position when the law takes effect</p> Signup and view all the answers

    What is the implication of a person serving on the Board of Accountancy for more than 12 years?

    <p>They are eligible for reappointment until 1 year has passed</p> Signup and view all the answers

    Which of the following statements is true about the vice-chairman of the Board?

    <p>The vice-chairman presides in all meetings of the Board</p> Signup and view all the answers

    Which entity is responsible for the examination for registration of certified public accountants?

    <p>The Board of Accountancy</p> Signup and view all the answers

    Which statement about employees in accounting firms is incorrect?

    <p>They do not need to be registered CPAs to work</p> Signup and view all the answers

    What must a CPA ensure regarding their position in the context of occupied roles?

    <p>They must occupy the position in a company meeting capital requirements</p> Signup and view all the answers

    Study Notes

    Standard-Setting Bodies

    • Financial Reporting and Sustainability Standards Council plays a crucial role in developing accounting standards.
    • Auditing and Assurance Standards Council oversees auditing standards to ensure quality and reliability in financial reporting.

    Accountancy Act of 2004 Objectives

    • Key objectives include standardization and regulation of accounting education, and examination for CPA registration.
    • The integration of the practice of accountancy is not a specified objective.

    CPA Practice and Employment

    • The right to practice as a CPA is granted by the Board of Accountancy.
    • Employees in accounting or auditing firms are regarded as engaging in public accountancy.
    • Positions in the private sector requiring financial transaction oversight must be held by registered CPAs.

    Incorrect Provisions for Employment

    • Condition about annual revenue or paid-up capital pertains to companies employing personnel for accounting roles:
      • Misleading statement indicates it’s the opposite of correct requirements: annual revenue of at least P5,000,000 and/or paid-up capital of at least P10,000,000 is incorrect.

    Board Recommendations

    • Only five recommendees for each Board position are submitted by the Professional Regulation Commission (PRC).

    Board Member Qualifications

    • Must be a registered CPA with a minimum of ten years of relevant work experience.
    • Good moral character is required; convictions related to moral turpitude disqualify candidates.
    • No financial interest or involvement in institutions providing accounting degrees is allowed.
    • Incorrect qualification states must not be a member, director, or officer of the APO at the time of appointment.

    Board Appointment Statements

    • Both statements about the Board of Accountancy being appointed by the President of PICPA and reappointment eligibility after 12 years are incorrect.

    Board Meetings

    • The vice-chairman leads all Board meetings.
    • Majority of BOA members must represent the public accountancy sector is incorrect.

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    Description

    Test your knowledge on the objectives set by the Accountancy Act of 2004 in this quiz focused on standard-setting bodies for financial reporting and auditing. Challenge yourself with questions on accounting education and the registration process for certified public accountants.

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