Professional Documents
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Overview of The Ms Practice by The Cpa
Overview of The Ms Practice by The Cpa
1-C
2. Management accounting
a. Is governed by generally accepted accounting principles.
b. Draws from disciplines other than accounting.
c. Is geared primarily to the past rather than the future.
d. Places more emphasis on precision of data compared with financial accounting
which does snot.
2-B
3-B
4-B
5-A
6-B
1
7-D
8-C
9-C
10-C
11-C
12-A
2
13-A
14. You were newly appointed as controller of CZX Corporation. Among the jobs
your department would do include the following:
a. Cash receipts, cash disbursements, general accounting, taxation, financial
accounting analysis, and internal auditing.
b. Financial reporting, strategic planning, managerial accounting, taxation,
financial statement analysis, and internal accounting.
c. Financial accounting, managerial accounting, cost accounting, inventory
accounting, payroll accounting, tax accounting and sales forecasting.
d. Tax accounting, managerial accounting, internal auditing, general accounting.
14-D
15-B
16-D
17-B
18-D
3
19. Which of the following is not a Controller’s function?
a. In charge of planning and control
b. Protection of assets such as adequate insurance coverage. Etc.
c. Interpreting and reporting on effects of external factors on the business
d. Arranging short-term financing
19-D
20-D
21-A
22-B
23-C
24-C
25. Which of the following acts is not performed by an independent CPA engaged to
install an accounting system?
a. Formulation of the chart of accounts
b. Design of business and accounting forms
c. Supervision of application of system and procedures recommended
d. Preparation of an accounting manual.
4
25-C
26-C
27-B
28-D
29-C
30. Which of the following types of management services is not directly related to
accounting and finance functions?
a. Cost analysis of major investment decision.
b. Long range planning.
c. Design, installation and review of budgetary system.
d. Valuation of capital stock of companies for purposes of merger or sales.
30-B
31-C
5
b. Project feasibility study. d. Assistance in budgeting. (?)
32-D
33-B
34. Management services of certified public accountant cover all of the following
except
a. Project feasibility studies. c. Organizational development and planning.
b. Systems design, development and implementation. d. Audit, tax and legal
services.
34-D
35. Which of the following does not relate to management services by CPAs?
a. Design and/or installation of accounting systems. c. Cost analysis of major
investment decisions.
b. Financial analysis for project feasibility studies. d. None of the
above.
35-D
36. Which of the following is not an area related to the performance of management
services by independent accounting firms?
a. Introducing new ideas, concepts and methods to management.
b. Improving existing policies, methods and procedures
c. Performing special studies, preparing recommendations, and formulating plans and
programs
d. Performing management functions and making decisions
36-D
37-D
6
c. It is the ability to identify client’s needs, use analytical approach and
process, apply technical knowledge, communicate recommendations and assist in
implementation.
d. It must be retained in the rendition of MAS work and it can be impaired if the
CPA performs decision-making for the client or acts as employee of the client.
38-D
39-A
40-A
41-D
42-C
7
43. The Revised Accountancy Law incorporates the Code of Professional Ethics for
CPAs. The provision of management advisory services is among the areas of public
accounting. It is, however, not exclusive to CPAs. Considering these premises,
which of the following statements is applicable?
a. Management advisory services as a field of practice is considered as an integral
part of public accounting thus, the Code of Professional Ethics for CPAs covers
management advisory services.
b. CPAs in the practice of audit and management consulting services may advertise
and charge contingent fees.
c. The practice of management advisory services should not be extended to existing
audit clients since this will adversely affect the CPA’s independence.
d. CPAs in the practice of management advisory services are not bound by the Board
of Accountancy but are bound by the said law in the practice of audit.
43-A
44-A
45-B
46. Mr. Rey Carlos, a CPA firm’s partner-in-charge of quality assurance and review
is arguing with Mr. Reuben Fortuna, the consulting partner regarding the question of
independence as Mr. Fortuna is presently rendering consulting services to T. Ang and
Nga Co., an audit client of the firm. Related to this issue of independence, all of
the following statements are not valid except
a. Independence is never sacrificed for as long as the auditor/consultant is correct
in his decisions for the client.
b. A CPA who renders both audit and consulting services to a client by virtue of his
competence/expertise and extensive knowledge of the client’s business is in the best
position to render decisions for the client and should do so.
c. The client is the ultimate decision maker and the auditor and/or consultant
should not make decisions for the client.
d. It is us up to professional judgment and discretion of the auditor/ consultant to
render decisions for the client for as long as his professional fees are
commensurate to the benefit that the client will derive from the engagement.
46-C
47. Which of the following acts is not performed by an independent CPA engaged to
design the accounting system?
8
a. Formulation of the chart of accounts.
b. Design of business and accounting forms.
c. Supervision of implementation of system and procedures recommended
d. Preparation of an accounting manual.
47-C
48. Which of the following will not impair the independence of a CPA in the
rendition of Management Services?
a. The CPA performs decision-making services for his client.
b. The CPA performs services wherein he is in effect, acting as an employee of the
client.
c. The CPA loses his objectivity and acts in a manner as if he is advocating for the
interest of his client.
d. The CPA does not extend his services beyond the presentation of recommendations
or giving of advice.
48-D
49-A
50-C
ANSWER KEY
1. C 11. C 21. A 31. C 41. D
2. B 12. A 22. B 32. D 42. C
3. B 13. A 23. C 33. B 43. A
4. B 14. D 24. C 34. D 44. A
5. A 15. B 25. C 35. D 45. B
6. B 16. D 26. C 36. D 46. C
7. D 17. B 27. B 37. D 47. C
8. C 18. D 28. D 38. D 48. D
9. C 19. D 29. C 39. A 49. A
10. C 20. D 30. B 40. A 50. C