Accounting Profession

Question 1

The body is authorized by law to promulgate rules and regulations affecting the practice of accountancy in the Philippines.

Answer 1

Board of Accountancy

Question 2

Involves the rendering of audit or accounting-related services to more than one client on a fee basis.

Answer 2

Public Accountancy

Question 3

Refers to employment in the private sector in a position that involves decision-making requiring professional knowledge in the science of accounting, and such a position requires that the holder is a CPA.

Answer 3

Private Accounting

Question 4

Employment or appointment to a position in an accounting professional group in the government or in a government-owned and/or controlled corporation.

Answer 4

Government Accounting

Question 5

Employment in an educational institution that involves the teaching of accounting, auditing, management advisory services, finance, business law, taxation, and other technically related subjects.

Answer 5

Academe

Question 6

The law mandating and strengthening the continuing professional development program for all regulated professions, including the accountancy profession.

Answer 6

R.A. 10912 (Continuing Professional Development)

Question 7

Credit hours required for the renewal of a CPA license and accreditation of a CPA to practice the accountancy profession every three (3) years.

Answer 7

CPD Credit Units

Question 8

How many credit units are required to renew the CPA license?

Answer 8

15 units

Question 9

How many credit units are required for CPA accreditation?

Answer 9

120 units

Question 9

What is the requirement to reach permanent exemption of renewal of CPA license?

Answer 9

Reach 65 year old.

Question 10

The Philippine Financial Reporting Standards are Standards and Interpretations adopted by the Financial Reporting Standards Council (FRSC) which comprise:

Answer 10

1. Philippine Financial Reporting Standards (PFRSs);
2. Philippine Accounting Standards (PASs);
3. Interpretations

Question 11

Why is there a need for Reporting Standards?

Answer 11

Reduce the risk of fraudulent reporting and help provide useful information for economic decisions.

Question 12

Authoritative accounting rule-making body & official accounting standard-setting boy in the Philippines.

Answer 12

Financial Reporting Standards Council (FRSC)

Question 13

Formed by the Accounting Standards Council (ASC), the predecessor of FRSC, with the role of reviewing the interpretations of the International Financial Reporting Interpretations Committee
(IFRIC) for approval and adoption by the FRSC.

Answer 13

Philippine Interpretation Committee (PIC)

Question 14

The professional regulatory board created under RA 9298 to supervise the registration, licensure, and practice of accountancy in the Philippines.

Answer 14

Board of Accountancy

Question 15

The government agency is tasked with regulating corporations and partnerships, capital and investment markets, and the investing public.

Answer 15

Securities and Exchange Commission (SEC)

Question 16

The government bureau that administers the provisions of the National Internal Revenue Code.

Answer 16

Bureau of Internal Revenue (BIR)

Question 17

The government institution that influences the selection and application of accounting policies by banks and other entities performing banking functions.

Answer 17

Bangko Sentral ng Philippines

Question 18

The government agency that influences the selection and application of accounting policies by cooperatives in the Philippines

Answer 18

Cooperative Development Authority

Question 19

Prior to the full adoption of the IFSs in 2005, the accounting standards used in the Philippines were previously based on which GAAP?

Answer 19

US GAAP - Statements of Financial Reporting Standards (SFAS).