Practice and Regulation of the Accountancy Profession

Question 1

Refusal to Issue Certificate of Registration

Answer 1

1. Convicted by a court of competent jurisdiction of a criminal offense.
2. Guilty of immoral and dishonorable conduct
3. Of unsound mind

Question 2

RA 9298

Answer 2

The Philippine Accountancy Act of 2004

Question 3

Qualifications for the members of the BOA

Answer 3

1. Natural Born Citizen and Resident
2. At least 10 years of meaningful experience in any sector of practice
3. Have good moral character and was not convicted of any crime
4. must not have any pecuniary interest in any school or institution conferring the academic degree; and
5. Not a director or officer of any APO at time of appointment

Question 4

The death or disability of an individual CPA and/or dissolution and liquidation of a firm or partnership of CPAs shall be reported to the BOA not later than ___ days from date of such death, dissolution, or liquidation

Answer 4

30 Days

Question 5

The APO shall submit with complete documentation to the Commission not later than ____ prior to the expiry of the term of an incumbent chairman or member

Answer 5

60 Days

Question 6

Term of the Commission Proper of Commission on Audit

Answer 6

7 Years

Question 7

Qualifications of the Chairman and Two Commissioners of the Commision on Audit

Answer 7

1. Natural Born Citizen and Resident of the Philippines
2. At least 35 years of age
3. CPAs with at least 10 years of work experience

Question 8

Practice in Education/Academe

Answer 8

A person in an educational institution which involves teaching accounting, auditing, management services, finance, RFBT, Taxation and other related subjects.

Question 9

How many members are in the FRSC

Answer 9

1 Chair and 14 members composed of
1 BOA
1 COA
1 SEC
1 BSP
1 BIR
1 Major organization composed of prepares and users of financial statements
2 Orgs in Public Practice
2 Orgs in Private Practice
2 Orgs in Academe
2 Orgs in Government

Question 10

Ratings in CPALE

Answer 10

PASSING- General Average of 75 and no grade lower than 65
CONDITIONAL- General Average of 75, has a grade less than 65 or both but has obtained at least 75 in majority (4 out of 6) of the subjects covered
FAILING- Did not fall under Passing or Conditional

Question 11

Scopes of Accountancy Practice

Answer 11

Public Accountancy
Commerce and Industry (Private Practice)
Education or Academe
Government

Question 12

CPD Requirements

Answer 12

Every 3 years, upon renewal, a CPA must accomplish 120 units of Continuing Professional Development Units (CPD)

Question 13

Subjects of CPALE

Answer 13

1. Management Services
2. Auditing (Theory and Problem)
3. Financial Accounting and Reporting
4. Regulatory Framework for Business Transactions
5. Taxation
6. Advanced Financial Accounting and Reporting

Question 14

Composition of the BOA

Answer 14

1 Chair and 6 members appointed by the President of the Philippines

Question 15

QRC Members and Functions

Answer 15

1 Chairman and 6 Members composed of
1 BOA
2 Orgs in Public Practice
1 Org in Commerce and Industry
1 Org in Academe
1 Org in Government

Functions:
- Conduct Quality review on applicants of registration to practice public accountancy
- Recommend to board the revocation of COR and Id cards

Question 16

Practice in Commerce and Industry

Answer 16

A person involved in the decision making requiring professional knowledge in accounting. Renders service to his employer and represents employer in front of government agencies

Question 17

Grounds for Suspension or removal from the Board

Answer 17

1. Neglect of duty or incompetence
2. Violations or tolerance of any violation of the RA 9298
3. Final judgement of crimes
4. Manipulation and rigging of CPALE prior to conduct of said examination.

Question 18

Objectives of RA 9298

Answer 18

1. Standardization and regulation of accounting education
2. Examination for registration of CPA
3. Supervision, control and regulation of the accountancy profession in the Philippines

Question 19

ETC Members and Functions

Answer 19

1 Chairman and 6 members composed of
1 BOA
1 Org in Public Practice
1 Org in Commerce and Industry
2 Orgs in Academe
1 Org in Government

Functions:
- Upgrading the accountancy education to make the Filipino CPAs globally competitive

Question 20

A CPA employed by an individual CPA, Firm, or Partnership engaged in the practice of public accountancy below the rank of the Individual CPA, sole proprietor or partner as the case maybe

Answer 20

Staff Member

Question 21

Practice in Commerce and Industry

Answer 21

A person involved in the decision making requiring professional knowledge in accounting. Renders service to his employer and represents employer in front of government agencies.

Question 22

Powers of the BOA

Answer 22

1. Prescribe and adopt the rules and regulations necessary
2. Supervise the registration, licensure, and practice of Accountancy in the Philippines
3. Administer oaths
4. Issue, suspend, and revoke CORs
5. Adopt an official seal of the board
6. Adopt a Code of Ethics
7. Adopt new accounting and auditing standards which will enhance the profession
8. Conduct an oversight on the quality of Audits through Quality Control Review
9. Investigate violations of the act and issue cease and desist orders
10. Punish for contempt of the board (direct and Indirect)
11. Prepare and adopt a syllabi for accounting education
12. Coordinate with CHED that all policies are complied with
13. Exercise the necessary power provided by law necessary to carry out the powers of the Board.

Question 23

Refresher Course on Failed Examinees

Answer 23

After failing TWO (2) COMPLETE EXAMINATIONS, applicant must take a refresher course of 24 units in accredited institution.

Question 24

Conventions

Answer 24

Gatherings of professional which shall include among others conferences symposia or assemblies for round table discussions

Question 25

Special/Temporary Permit given to foreign CPA

Answer 25

Issued by BOA in following instances: 1. A foreign CPA called for consultation for a specific purpose which is deemed essential for the development of the country because no other CPA is qualified for that purpose 2. A foreign CPA engaged as professor or critic in fields essential to accountancy education (confined to teaching only) 3. A foreign CPA internationally recognized expert essential for advancement of accountancy in the Philippines

Question 26

Meaningful experience in the public practice

Answer 26

One year as an Audit Assistant (Staff Assistant) and at least two years as auditor-in-charge of audit engagement covering full audit functions of significant clients

Question 27

Who created the PRC CPE council

Answer 27

The BOA

Question 28

Penal and Final Provisions

Answer 28

Person who violates this Act may be punished of a fine at least 50,000 pesos or by imprisonment not exceeding 2 years or both.

Question 29

Practice of Public Accountancy

Answer 29

A person who is a staff or partner in an accounting or auditing firm skilled in the practice of accountancy, rendering services to more than once client on a fee basis

Question 30

Term of the Commission Proper of Commission on Audit

Answer 30

7 Years

Question 31

How many members are in the AASC

Answer 31

1 Chairperson and 17 Members Composed of 1 BOA 1 COA 1 SEC 1 BSP 1 Insurance Commission 1 Major Org in practice of Public Accounttnancy 9 Orgs in Public Practice 1 Org in Commerce and Industry 1 in Academe

Question 32

Contents of COR

Answer 32

1. Full name and the assigned registration number of the registrant 2. Signature of the Chairperson of PRC and Chairman of BOA 3. Official seal of PRC and BOA

Question 33

Sec 8 Compensation and Allowances of the Board states that the chairman and the members of the board shall receive compensation and allowances comparable to that being received by the chairman and members of existing regulatory boards under the Commission as provided in the

Answer 33

General Appropriations Act

Question 34

Reinstatement, Reissuance, and Replacement of Revoked or Lost Certificates

Answer 34

After the expiration of two years from date of revocation, and upon application and for proper and sufficient reasons, Board may reinstate the validity of revoked COR

Question 35

Who is issued a Certificate of Registration

Answer 35

1. Examinees who passed the CPALE 2. Persons admitted under reciprocity or other international agreement

Question 36

Terms of Office of BOA members

Answer 36

The members will have a term of 3 years and cannot serve more than 12 years. No one shall serve for more than 2 consecutive terms until the lapse of 1 year.

Question 37

Suspension and Revocation of COR

Answer 37

1. Same as Refusal to Issue 2. Any unprofessional or unethical conduct 3. Malpractice 4. Violations of any provisions of RA 9298

Question 38

Penalties for non-compliance of the minimum standards of performance may include the following

Answer 38

1. Injunction 2. Payment of damages 3. Permanent or temporary loss of license

Question 39

The number of continuous years from initial registration or last renewal date registered accountants should fail to renew their professional licenses before they are declared delinquent and shall after due notice through website and publication of PICPA be dropped from roster of CPAs

Answer 39

5 years

Question 40

Which of the following shall act as a legal adviser to the PRC and the BOA and shall render legal assistance as maybe necessary in carrying out the provisions of the Philippine Accountancy Act

Answer 40

Secretary of Justice or his duly designated representative

Question 41

Qualification of for CPALE

Answer 41

1. Filipino Citizen (Natural or Naturalized) 2. Good Moral Character 3. Must have Accountancy Degree from accredited institution 4. Has not been convicted of any criminal offense

Question 42

Penalties imposed by the Board of Accountancy

Answer 42

1. Reprimand 2. Revocation of CPA certificate 3. Suspension of CPA certificate

Question 43

As defined in ANNEX C of IRR of RA 9298, this refers to the inculcation assimilation and acquisition of knowledge skills and proficiency and ethical and moral values after the initial registration of a professional that raise and enhance the professional skills and competence

Answer 43

Continuing Professional Education