Questions and Answers
Which of the following is a specified objective of the Accountancy Act of 2004?
What is the minimum number of recommendees for each position in the Board to be submitted by the PRC?
Which statement regarding the right to practice as a CPA is correct?
Which of the following qualifications is NOT required for a member or chairman of the board?
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In what situation might the provision regarding employing a CPA not apply?
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What is the implication of a person serving on the Board of Accountancy for more than 12 years?
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Which of the following statements is true about the vice-chairman of the Board?
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Which entity is responsible for the examination for registration of certified public accountants?
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Which statement about employees in accounting firms is incorrect?
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What must a CPA ensure regarding their position in the context of occupied roles?
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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.
