FAR1C1 C

Question 1

State all content information.

Part 1

Answer 1

1) Explain accreditation to practice public accountancy.
2) What are the three (3) main areas that Certified Public Accountants generally practice their profession?
3) What is public accounting?
4) What are the three (3) kinds of services public accountants usually offer?

Question 2

State all content information.

Part 2

Answer 2

1) What is auditing?
2) What is taxation?

Question 3

State all content information.

Part 3

Answer 3

1) What are management advisory services?
2) What is the major objective of a private accountant?
3) What is the highest accounting officer in an entity?

Question 4

Explain accreditation to practice public accountancy.

Answer 4

Certified public accountants, firms and partnerships of certified public accountants, including partners and staff members thereof, are required to register with the Board of Accountancy and Professional Regulation Commission for the practice of public accountancy.

The Professional Regulation Commission upon favorable recommendation of the Board of Accountancy shall issue the Certificate of Registration to practice public accountancy which shall be valid for 3 years and renewable every 3 years upon payment of required fees.

Question 5

Explain accreditation to practice public accountancy.

Certified public accountants, firms and partnerships of certified public accountants, including — and staff — thereof, are required to — with the — of Accountancy and — — — for the — of public accountancy.

The Professional Regulation Commission upon — — of the Board of Accountancy shall issue the Certificate of — to practice public accountancy which shall be valid for — years and renewable every — years upon — of required fees.

Answer 5

Certified public accountants, firms and partnerships of certified public accountants, including partners and staff members thereof, are required to register with the Board of Accountancy and Professional Regulation Commission for the practice of public accountancy.

The Professional Regulation Commission upon favorable recommendation of the Board of Accountancy shall issue the Certificate of Registration to practice public accountancy which shall be valid for 3 years and renewable every 3 years upon payment of required fees.

Question 6

What are the three (3) main areas that Certified Public Accountants generally practice their profession?

Answer 6

1) Public accounting
2) Private accounting
3) Government accounting

Question 7

What is public accounting?

Answer 7

It is composed of individual practitioners, small accounting firms and large multinational organizations that render independent and expert financial services to the public.

Question 8

It is composed of individual practitioners, small accounting firms and large multinational organizations that render independent and expert financial services to the public.

Answer 8

Public accounting

Question 9

What are the three (3) kinds of services public accountants usually offer?

Answer 9

1) Auditing
2) Taxation
3) Management advisory services

Question 10

What is auditing?

Answer 10

It has traditionally been the primary service offered by most public accounting practitioners.

It is also known as external auditing is the examination of financial statements by independent certified public accountant for the purpose of expressing an option as to the fairness with which the financial statements are prepared.

Actually, external auditing is the attest function of independent CPAs.

The Bureau of Internal Revenue requires audited financial statements to accompany the filing of annual income tax return.

Banks and other lending institutions frequently require an audit by an independent CPA before granting a loan to the borrower.

Creditors and prospective investors place considerable reliance on audited financial statements on making economic decision.

Question 11

What is auditing?

It has traditionally been the — service offered by most — — practitioners.

It is also known as — — is the — of financial statements by — certified public accountant for the purpose of — an opinion as to the — with which the financial statements are —.

Actually, external auditing is the — function of — CPAs.

The Bureau of Internal Revenue requires — — — to accompany the filing of — — — —.

Banks and other lending institutions frequently require an — by an — — before — a — to the borrower.

Creditors and prospective investors place considerable — on — financial statements on making economic —.

Answer 11

It has traditionally been the primary service offered by most public accounting practitioners.

It is also known as external auditing is the examination of financial statements by independent certified public accountant for the purpose of expressing an opinion as to the fairness with which the financial statements are prepared.

Actually, external auditing is the attest function of independent CPAs.

The Bureau of Internal Revenue requires audited financial statements to accompany the filing of annual income tax return.

Banks and other lending institutions frequently require an audit by an independent CPA before granting a loan to the borrower.

Creditors and prospective investors place considerable reliance on audited financial statements on making economic decision.

Question 12

It has traditionally been the primary service offered by most public accounting practitioners.

Answer 12

Auditing

Question 13

It is also known as external auditing is the examination of financial statements by independent certified public accountant for the purpose of expressing an option as to the fairness with which the financial statements are prepared.

Answer 13

Auditing

Question 14

What is taxation?

Answer 14

It includes the preparation of annual income tax returns and determination of tax consequences of certain proposed business endeavors.

The CPA not infrequently represents the client in tax investigations.

To offer this service effectively and efficiently, the public accountant must be thoroughly familiar with the tax laws and regulations and updated with changes in taxation law and court cases concerned with interpreting taxation law.

Question 15

What is taxation?

It includes the — of annual — — — and — tax — of certain proposed business —.

The CPA not infrequently — the client in tax —.

To offer this service effectively and efficiently, the public accountant must be thoroughly — with the — — and — and updated with changes in — — and — — concerned with — — —.

Answer 15

It includes the preparation of annual income tax returns and determination of tax consequences of certain proposed business endeavors.

The CPA not infrequently represents the client in tax investigations.

To offer this service effectively and efficiently, the public accountant must be thoroughly familiar with the tax laws and regulations and updated with changes in taxation law and court cases concerned with interpreting taxation law.

Question 16

It includes the preparation of annual income tax returns and determination of tax consequences of certain proposed business endeavors.

Answer 16

Taxation

Question 17

To offer this service effectively and efficiently, the public accountant must be thoroughly familiar with the tax laws and regulations and updated with changes in taxation law and court cases concerned with interpreting taxation law.

Answer 17

Taxation

Question 18

What are management advisory services?

Answer 18

These have become increasingly important in recent years, although audit and tax services are undoubtedly the mainstay of public accountants.

This term has no precise coverage but is used generally to refer services to clients on matters of accounting, finance, business policies, organization procedures, product costs, distribution and many other phases of business conduct and operations.

Specifically, management advisory services include:

1) Advice on installation of computer system
2) Quality control
3) Installation and modification of accounting system
4) Budgeting
5) Forward planning and forecasting
6) Design and modification of retirement plans
7) Advice on mergers and consolidations

Question 19

What are management advisory services?

These have become increasingly — in recent years, although — and — services are undoubtedly the — of — accountants.

This term has no precise — but is used — to refer services to clients on matters of —, —, business —, organization —, product —, — and many other phases of business — and —.

Specifically, management advisory services include:

1) Advice on installation of — system
2) Quality —
3) Installation and modification of — system
4) —
5) Forward — and —
6) Design and modification of — —
7) Advice on — and —

Answer 19

These have become increasingly important in recent years, although audit and tax services are undoubtedly the mainstay of public accountants.

This term has no precise coverage but is used generally to refer services to clients on matters of accounting, finance, business policies, organization procedures, product costs, distribution and many other phases of business conduct and operations.

Specifically, management advisory services include:

1) Advice on installation of computer system
2) Quality control
3) Installation and modification of accounting system
4) Budgeting
5) Forward planning and forecasting
6) Design and modification of retirement plans
7) Advice on mergers and consolidations

Question 20

These have become increasingly important in recent years, although audit and tax services are undoubtedly the mainstay of public accountants.

Answer 20

Management Advisory Services

Question 21

This term has no precise coverage but is used generally to refer services to clients on matters of accounting, finance, business policies, organization procedures, product costs, distribution and many other phases of business conduct and operations.

Answer 21

Management Advisory Services

Question 22

What is the major objective of a private accountant?

Answer 22

The major objective of a private accountant is to assist management in planning and controlling the entity’s operations.

It includes maintaining the records, producing the financial reports, preparing the budgets and controlling and allocating the resources of the entity.

It has also the responsibility for the determination of the various taxes the entity is obliged to pay.

Question 23

What is the major objective of a private accountant?

The major objective of a private accountant is to — — in — and — the entity’s —.

It includes — the —, — the financial —, preparing the — and controlling and allocating the — of the entity.

It has also the responsibility for the — of the various — the entity is — to —.

Answer 23

The major objective of a private accountant is to assist management in planning and controlling the entity’s operations.

It includes maintaining the records, producing the financial reports, preparing the budgets and controlling and allocating the resources of the entity.

It has also the responsibility for the determination of the various taxes the entity is obliged to pay.

Question 24

What is the highest accounting officer in an entity?

Answer 24

Controller or comptroller