"Floor MFFIBullding or. R: Papa and S. Loyola Sis. ReSA arc peg The Review School of Accountancy 8735-9807 / 734-3989 / (0910) 1 resareview@hotmail.com i (2017) ‘Jose M, Ireneo -Fermin D. Vabut (20: ‘AUDITING THEORY AT-04: PRACTICE AND REGULATIONS OF THE PROFESSION (R.A. 9298) rUASNo, 9298 The Pitoine Accountancy Act of 2004, incdng ts Implementing Rules and Regulations a . Chapters} and 4, Auditing and Assurance Princes, 12 Fain PSA Glossary of Terms. 1. The Philippine Accountancy Act of 2004 ~ shall provide for and govern: A. The standardization and regulation of accounting education. ie he examination for registration of Certified Public Accountants. eae oe ree he Philippines. All of the answers. 2. Regulation of the accounting profession include: ‘ ‘Ar bublic Regulation as provided for in tre Philippine Accountancy Act of 2004, 8: Regulation within theGrofession) through the implementation of the Code of Ethics. Regulation within theGiit through the implementation of @ system cash ol 6) Atortne answers > Tis sefers to those persons who hold a(valld certificatd)issued by the Board of Accountancy, whether they be in public practice, commerce and industry, the public sector, or educeieg sector. Professional accountant B. Professional accountant in public practice €. Senior accounting practitioner D. Audit associate Practice of the accounting profession in commerce and industry when he/she: A Spl or I appointed to a postion in an accounting professional group in geverament feaures eovemment-owned and/or controlled corporation, where, decor ne requires professional knowledge.tn the science of accounting G 1s involved in @eeision-making requiring, prone knowledge in the science of shastnon ahs Mell 85 the accounting aspects of finance and taxabon, oe asec ade a position that requires a CPA. © Js in an educational institution which involves teaching of accounting, auditing, management advisory services, jena tIN9 Aspect of finance, business law, taxation, and other technically-related subj. D. Holds out himself/herself as oi accounting, jects, Ne skilled in the and as someone qualified to render (For numbers 5 and 6 several administrative knowledge, science and practice of professional services as a CPA. » abc Company is a business in the private sector. The company has Positions that require, ai mong others the supervision of the recon suc or meetensipreparaion “of nancial statement Seago “the extemal Suaors for the audit ofthe financial statements; and ether laces functions. ® These positions should be occupied by duly registered Cons, iy ABC Company has: 6-10 Peep capil of at tenet ee ABE Co revenue of @ ®. 5,000,000. 10,000,000. B. P10,000,000. P10,000,000. <= P 5,000,000. P 5,000,000, D. P10,000,000, 000, P 5,000,000. incumbents to these positions Will the effectivity of the ReSA — The Review School of ‘Accountancy Page 1 of 6AT-04 - 2 foltowir in teach business law: @ Yes ves eA Yes. Ne No. : for accountants, & candidate carnination five percent, witt jemoval examination within BNO years D. 3. $1 To be qui alified as having passed the lice for accrues tower than Sixt) ust obtain a sages ‘average of seventy fi fority of the subjects. Fr creer nT SsubIe ke oe ereane er coats creas Mut 2 Nemesis A accra OTA ae, eB Fa corthe ete ee eamenricy ics pacer : Examine hall be disqualified ae ae 2 comet ra tat F 9, ay candidate Sor of examatons unless rt ca to the satisfaction from teking arate envolied in and compared ot 2S ye Nor subjects aiven in of sisure examination. ; ore SHAME. ae aeoral of sOumns C2 PUNTO total of 60 units t : D. 3, 24 units 2, 24 units: gs tpevermine the apprapriate rating ofthe student SS optained the following individual marks: si 100 oer ASS at s4-74 cates eC ara @. Passed . Conditioned 8. Failed DB, Cannot be determined .j to an individual, by the PRC, bearing a registration number, is joomrecammendation by the Board of Act untancy, werlled with afi the legal and procedural £7 ints for such Issuance, including, in cormpriate cases, having successfully oassed the ‘Cpa licensure examinations. Certificate of registration Certificate of identification B. Certificate of accreditation Certificate of quality review 11.A certificate under seal, ‘signifying that the individual has 12.A professional identification card has a validity A. vyear B. 2-years @. — 3 years Dp. 4 years 13.The Continuing Professional Development (CPD} programs far accountancy shall have these objectives: ( 6 B a bd + To raise and maintain the profes delivering professional services az > yes No Yes «To attain and maintain the minima Ste quality in the practice of his profession No Yes Yes No ves No Yes NO = To make the profession globally competitive. how many nits of continuing professional . 14. According to PRC Resolution 990-20: secelopment musta CPA undertake? eye re (eo) eredit units for three years, provided tite shall be earned in each veer. B. Forty-five (45) credit units for three ye zest sel be earned nea ya | Saathundred twenty (120) credit units for three years B. Minimum of fifteen (15) credit units earned in each year 15. The following are regarded by RAG296 as CPA services in public ih elongate aca A B c Q@ cs Yes YG that a minimum of fifteen (15) credit ars, provided that a minimum of fifteen (15) practice if offered or «= Preparation and signing of audit re} 19 of audit reports. Yes Yes © Professional assistance on accounting pro s sistance or nting procedures. yes No = Representation of clients before governmental ae agencies on tax and other matters regardiess of its relation to accounting — mut be relafedLin accty, Yes Yes No No 16. The policy for accreditation cover ved ie ala dit covers CPAs involved in teaching of accounting and related ‘A. Primary level only B. Primary and secondary leveis only 6 Secondary and tertiary levels only Primary, secondary, tertiary and graduate level ReSAS735-9807 / 734-3989 / (0910) 439-1320 Page 2 of 6Resi Sel et Rect satcy AT-04 Fasting Theory: Procior and Reg ation ofthe Profession (RA. 9296) ion of releyant BSA Degree ~M A total of tWo)years’ meaningful experience in actual account 6 Proof that the CPA has undergone continuing professional development, totaling 80 (2017), 100 (2018), or 120 (2019)units A. One year @) Three years B. Two years D. Four years >. 19. Thé Board of Accountancy , subject to the approval of the PRC, may revise or exclude any of the subjects and their syllabi, and add new ones as the need arises, provided that the change shall not be more often than: eee unc cenyiernyeers Bao DAE 20.S1A BS Accountancy, graduate who takes and successfully passes the CPA Board Examinations shall“Stl be required to take the Ciel Seve Eeammnetien ang holding an entry-level government position. ‘S2 Practice in government shall constitute in a person who holds, or is appointed to a position in an accounting professional group in government or in & goverment ovved and/or controlled corporation, including those. performing, proprigtany functions where decision making requires professional knowledge in the scienge of accounting or where a civil service eligiblty as a certified pyblic accountant In prema en A. True, true B. True, false (J. false, tue, Dace, false wAoeorany ee ead 21-Which of the following is not a ground for the suspension or revocation of certificate of registration and professional identification card? penalties eee Possession of an unsound mind “oy Bon Pec (Ack) Practice in more than one field of accountancy Fi pean, jt ehipony Conviction of a criminal offense involving moral turpitude purerent ut cenditional D. Unprofessional or unethical conduct, malpractice, oF vielstion of RA9298. 22..The.punishment,..upon. conviction, for any person whoshasovial ated. any.of the. provisions of the Accountancy Act of 2004, or any of a its Implementing Rules and Regulations as Promulgated by the Board of Accountancy: AA fine of nat less than fifty thousand pesos (0,000.00) and imprisonment for a per not exceeding two (2) years, » m leet B. Afine of not less then revocation ©. Can no longer be rei Instated as a Certiied Public Accoun D. Has committed a crit a A. True, true” B. 7 et enema Sin erships for the practi Such registrant has acc juirec z 3) a cared a@haximum of three (3) —)y\nit Of public practice na ice including taxation ned PY RA £298 are explained det att hi True, false @ The SEC shalll register corporation organized for ti * Practice of public accountancy, ReSA8735-9807 / 734-3089 / (0910) 439, 1320 Page 3 of 6AT-04 1 CF partnerships of : ‘enes of 2004, individual CPAS, FETS Te ny tat ee \inoreof shall register_with ane bord _ ; f tion for Commission. If the application a er oe ee or peGh: The Review School of Accountancy cup. 9298) RoR The ory, Practive and Reguabons of ane Profession (RAS _Ausiting Theory Se 96, According to Board Resolut Ana. including partners and CPAS, taney and the Professional Reguiavoe i aeagnd sison, CPAS, was approved O° as <. september 30, 2016- Q Soberiver 3, 2025 (sep30,akge) ——_B._—Deternder 32, 2025. seheeniber 30, See ach firm. Unless eee preatceal ners ana] peraen foees Tee ee Ee named are CPAS and partners, and there are no other ‘on of the IRR of RA9298? 27.8elow are t Below are frgicatea, the jacividuats AA therwlse elchaf these indicates 2 viol ie aan 'B and C, CPAs (A dit ‘seven years ago; B and C are continuing the firm). ee. A ar CPAs (G died@)years ago, and H Is cone he firm as a sole proprietor). C. D. ning fed from the frm name). a ied s)years 290 or ertive partners omitted from f Dan Ee eae ated | 1 was admitted into the partnership two months: ‘¢ whom have their names 3 years 290, K and L, CPAs (K die other active partners, all of after K's death. There are se omitted from the firm name) 28. which of the following functions would usually be performed by a senior associate? ‘A. Signs the audit report Parthw B. assumes overall responsibility for the audit ~ Dacia Pertorms detailed audit procedures. — Junie (Pk Bees manga and performs mare consies i ee OL repens pagan work between partners and ofner team members mgnage- 29. The amount of professional fees depend largely on the ye ocize and capitalization of the company under audit 8. Amount of profit for the year. Availability of cash. ay cadit work and degree of competence and responsibilities involved. 30. Under this method of billing 2 client, the extemal auditors charges Or the basis of actual tne Spent by principals/partners, supervisors, seniors and juniors at predetermined rates reed upon with the client Per-diemn- basis. Cc. Flat fee or flat sum. basis. B. Retainer basis. D. Maximum fee basis. 41. Which of the following cannot be mentioned by an author in publicizing @ bodk in accounting? "A Name ” emteriin renner B. Qualifications Serees that the author's firm provideds 32. May @ CPA give a brochure to a non-client? MAY oo, because this Is a violation of the revised rules on advertising 5. Yes, since this is acceptable under the revised rules on advertising No, unless the non-client becomes a client within 10 days from receipt of the brochure es, ifthe non-client has made an unsolicited request 33. Which of the following partner profile information may D : stner profile information may be posted in firm A, Name Mu 2 oe B. Educational attainraent and brief listing of services C._ Postal address, telephone, fox and email-aadress (@. Allof these may be posted in a irm’s website 34, Subjects or citizens of foreign countries A May be allowed to practice accountancy in the Phi Moy bed practice accom he ines garde of he prowsions international treaty obligations, incluaing mutual SE eee ee a rere Slee etree MT ce a ic a Are not allowed accour + Philippi ‘ Sere Ki to practice intancy in the Philippines, unless they take, and pass, the certified public accountani examin the _certiied ps untant sure examination given by the Board of 's website? B. © May be allowedto practice account 1 i C4 fancy in the Philippines, Gubject is a owe es, Gubjecbto the provi exiting“ and nkemational_ten blastoma mutual fetepnibon ons nents Se into by the Philippine government with other countries ee re never allowed to practice acccuntancy in the Phi ee ee Respe edtl naressee bee or ceTntaeee aa sa s ReSA®735.9807 / 734-3989 / (0910) 439-1320 fc Page 4 of 6Sk: The Review School of Accountancy -04 Ating Theory: Practice and Repuatons ofthe Profession (RA. 9258) AT- 35.RA9298 provides that temporary or special _permits may be issued to Foreign CPAs in the iippines. The permit restricts ‘Accountancy, 1s essential for the daveloprient of the Philippines the foreign CPA's practice to the particular consultation work being, gerformed ip Filipino CPA was qualified for such consultation. 8. A foreign CPA was engaged to lecture on fields essential to accountancy education in the Philippines. The permit restricts the CPA to teaching only, and limited public Practice provided such practice is conducted outside class hours. C. A foreign CPA, an IFRS expert, is engaged for services deemed essential for the advancement of accountancy in the Philippines which can also be performed by Filipino CPAs D. All of the above situations do not justify the Issuance of a temporary or special permit. 36. Provide the definition of the following acronyms under the ASEAN Integration Mutual Recognition Arrangement on Accountancy Services: G ACPA, ASEAN Chartered Prresional Qccgmlant D * o acpacc Pw 7 __ Coordi RFPA Regitttred Foreign Propestional Qcuouant 37, Violations of the IRR shall subject the CPA to fines and penalties as provided for in RA No. 9298, including its IRR. Such violations includ A. Engaging in public accounting practice without first registering with the BOA and the SEC B. Continuing to engage in the Practice of public accountancy after the expiration of the registration/accreditation ream a to cndage In the practice of public accountancy after suspension, revocation or withdrawal of registration Oe eng any false Information, data, statistics, reports or other statement which tend to mislead, obstruct, or obscure the registration of an Individual CPA, Firm or Partnership Of CPAs under the IRR. £. Giving any misrepresentation to the effect that registration was secured in truth when in fact, it was not secured a z £, Failure or refusal to undergo quality review All of the answers. 38. Fill out the table below to summarize pointers on th [Composition [Nominations 1 complete term Maximum no. of years ice Chairman (term) — {2 consecutive complete terms 6 Netirat bom) Citizen and resident of the Philippines. uly registered CPA with at least/ rf i Dae ‘ars of work experience in any scope of practice of is D, of crimes involving moral turpitude ree on pay School, college, university or institution Isses,AT-04 mpers of the Board of view ‘Acoountancy e esa Ze Reo S60 amano we Pteson (2. Hhuciting Theory: Pr CF f on or removal of me! ‘a2.The following are grounds for suspensich ‘or removal ‘Accountancy, except: x Neglect of duty or incompetence. B. Wolation or tolerance of any violation Se onal standards of practice for peal and prore tpgRICa ang Or erime involving moral turpitude inuously upgrading 2n9208 and its IRR, or the Code of Ethics and PAS. «43. According to the IRR, this council #5 tasked Ve assist the BOA In conti acco taney education in the Philippives to make the Filipino CPAs iu ality Review Committee ‘2 committtes —C. CPD Council A Quay Review Comme] pipng BOR. 0. Commision an anes le 2) a4.$1 The Philippine Institute of Certified Public Ae 5 Is registered with the SEC as @ non-profis corporation and recognized By te ‘BOA, subject to the approval by the PRE. 2 Membership in the PICPA shalt be a_bar to tnombership in any other association Certified public accountants. FE smuttncarty beers A mem. A. True, true True, fase “"'C. False, true D. False, fals® ountant: '45.Unless there is a valid reason to have additional representation, the PICPA shall have how many national directors? nD 84 @ 1s b. 20 gn the ati Jajng is WOT a geogrannc sector? A: Luzon 8. NCR cc. Mindanzo @ cr 47.Sectoral organizations have been established to promote the interests of groups of Frofessional accountants, Which of the following Is the sectoral organization for CPAs in Public Practice? ‘A. GACPA. 6) ACPAPE. ©. ACPAGL 1b. ACPA ty = ie dutation Aone Riso _ cat my © 40. This EM Ie created to coMMiCPARCSTETSIGRDnt® the quality of audits of Mangal ean eee ea eview of the quality control measures instituted by Tndividual CPAS, Firms, or Partnerships. 23 ‘A. Quality Review Council © uaiity Review Committee BA Com ~Piblic B. Quality Contro! Committee . Engagement Quality Contro! Review roche 49. The QRC shall have the following functions: Conduct quality control review on applicants for registration to practice public accountancy and render a report on such quality review B. evoke the certificate of registration and professional 10 of an individual CPA, firm, or partnership of CPAs who have not observed quality control measures, C. All of the answers D. None of the answers C: 50.the Constitution of te Philippines, requires this Offi Ys neral_ accounts of the fovernment and for such ‘period as may be provided by law, preserve the vouchers pertaining thereto.” , ‘A. National Accoun no Office G. Commission on Audit B. Ministry of Financ D Pr y of Finance D, unting Units 51. The following are the duties of the Commission on Audit (COA), except: A; Define the scope ofits audit and examination Promuigate accounting rules and regulation & Saag gemma accounts of ine govereman assume fiscal respons Government and Its instr. menitalities 52. Which of the following is & correct quali the COA? parural_ bem as AA itizen of the Phil of the Philippines 8. ALtesst#O}vear of age upon appotite c S with no less than Gears of auditing exp who have been engaged in iaw oractice for ath tion of the Chairman and Two Commissione nt 1ge,or members of the Philippine bar Must not have been candidates for any elective pariton preceding appointment -end of AT-04Q- ReSA%735-9807 / 734-3989 / (0910) 439