AUDTHEO CH 04
A
(MCQ) A CPA firm usually offers non-audit services, such as management advisory services. Its primary purpose is to: A. Furnish professional advice and assistance which will enable the client to improve operations. B. Keep the CPA firm competitive with other firms. C. Establish the firm as a consultant, thus ensuring its future expansion and growth. D. Permit the firm's staff members to acquire expertise in other areas of practice.
C
(MCQ) A CPA initially applied for accreditation and was approved and registered on August 15, 2017. The deadline for the renewal of the accreditation shall be: A. Three years after Aug. 15. B. Three years after date of registration as CPA. C. Birthday of CPA in 2020. D. After completing 120 CU.
C
(MCQ) A new CPA can practice his profession in public accounting after gaining a meaningful experience of: A. 1 year. B. 2 years. C. 3 years. D. 4 years.
C
(MCQ) All licensed CPAs shall obtain and use a seal of a design prescribed by the A. ASC B. PICPA С. ВОА D. PRC
C
(MCQ) CPD credit units can be earned by engaging on the following activities, except. A. Participant to a seminar. B. Completing a Master's Degree. C. Completing BSA Degree. D. Study Tours and Visits.
D
(MCQ) CPD units maybe earned by a CPA thru the following modes, except: A. Attending seminars and conference B. Authoring and publishing a book C. Completing a post-graduate degree program D. Rendering CPA services for a minimum fee
C
(MCQ) Certified public accountants, firms and partnerships of CPAS, engaged in the practice of public accountancy, shall register with the Commission and the PRBOA, such registration to be renewed: A. Annually B. Every 2 years C. Every 3 years D. Every 5 years
D
(MCQ) Generally, advertising and promotion in any medium are acceptable, provided: A. It is in good taste. B. It is professionally dignified. C. It avoids frequent repetition of, and any undue prominence being given to the name of the firm or professional accountant in public practice. D. All of the above.
B
(MCQ) RA9298 provides that temporary or special permits may be issued to Foreign CPAs in the following situations, except: A. A foreign CPA was called for consultation which, in the judgment of the Board of Accountancy, is essential for the development of the Philippines. The permit restricts the foreign CPA's practice to the particular consultation work being performed. No Filipino CPA was qualified for such consultation. B. 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. D. All of the above situations do not justify the issuance of a temporary or special permit.
D
(MCQ) Regarding advertising, the following are not allowed, except: A. Self-laudatory statements B. Discrediting, disparaging, or attacking other firms or CPA practitioners C. Referring to, using or citing actual or purported testimonials by third parties D. Publishing the contact details of the CPA firm.
D
(MCQ) The CPA shall be required to indicate which of the following numbers on the documents he/she signs, uses or issues in connection with the practice of the profession: A. CPA Certificate of Registration number. B. Professional Identification Card C. Professional tax receipt. D. All of these are required to be indicated.
A
(MCQ) The QRC shall have the following functions: A. Conduct quality control review on applicants for registration to practice public accountancy and render a report on such quality review B. Revoke the certificate of registration and professional ID of an individual CPA, firm, or partnership of CPAs who have not observed quality control measures and who has not complied with the standards of quality prescribed for the practice of public accountancy C. Mete out sentences of imprisonment to CPAs who fail to present a valid system of quality control. D. All of these.
D
(MCQ) The amount of audit fees depend largely on the: A. Size and capitalization of the company under audit. B. Amount of client's profit for the year. C. Availability of cash. D. Volume of audit work and degree of competence and responsibilities involved.
C
(MCQ) The following are the classification of the required competence areas for CPD purposes, except: A. Professional Skills. B. Technical competence. C. Tax Competence D. Professional values, ethics and attitudes.
B
(MCQ) The following statements relate to advertising. Which one is incorrect? A. The use of the name of an international accounting firm affiliation/correspondence other than a notation that it is a "member/correspondent firm of that foreign firm" shall not be allowed so as to imply that the foreign firm is practicing in the Philippines. B. No firm or CPA practitioner shall identify the name of a client or items of a client's business in advertising, public relations or marketing material produced to promote his practice even if the client's written consent was obtained. C. No firm or CPA practitioner shall use the term "Accredited" or any similar words or phrases calculated to convey the same meaning if the claimed accreditation (BOA, SEC, BSP or IC) has expired. D. All advertisements must have prior review and approval in writing by the Risk Management Partner and Managing Partner or their equivalents.
C
(MCQ) This committee is created to conduct an oversight into the quality of audits of financial statements through a review of the quality control measures instituted by Individual CPAs, Firms, or Partnerships. A. Quality Review Council. B. Quality Control Committee. C. Quality Review Committee. D. Engagement Quality Control Review.
D
(MCQ) Under this method of billing a client, the external auditors charges on the basis of actual time spent by principals/partners, supervisors, seniors and juniors at predetermined rates agreed upon with the client, subject to a maximum amount A. Per diem basis. B. Retainer basis. C. Flat fee or flat sum basis. D. Maximum fee basis.
D
(MCQ) Which of the following functions is most likely to be performed by an audit manager? A. Signing of the audit report B. Assumption of overall responsibility for the audit. C. Preparation of audit programs and supervision of audit associates. D. Administrative procedures and liaison work between partners and other team members.
B
(MCQ) Which of the following names illustrates a firm name, as contrasted to the name of an individual CPA and a partnership name? A. Jose M. Ireneo, CPA. B. Jose M. Ireneo and Associates C. Ireneo and Cordova, CPAS D. Ireneo, Cordova and Company
D
(MCQ) Which of the following partner profile information may be posted in a firm's website? A. Name B. Educational attainment and brief listing of services C. Postal address, telephone, fax and email-address D. All of these may be posted in a firm's website
False
(True/False) A BSA graduate may be allowed to practice public accountancy under his or her own name provided he/she acquired a maximum of three (3) years meaningful experience in any of the areas of public practice including taxation.
False
(True/False) A minimum of twenty (20) credit units shall be earned in each of the three years for accreditation requirement purposes.
False
(True/False) Accountancy practice in corporate form is allowed by RA9298, subject to certain limitations.
False
(True/False) Advertising is never allowed in any form in the accounting profession.
False
(True/False) Advertising is the approach to a potential client for the purpose of offering professional services.
True
(True/False) CPD credit units can be earned through self-directed and lifelong learning.
True
(True/False) Human resources development is considered as one of the pillars of successful accounting practice.
True
(True/False) It is ethical for a CPA to use a firm name which includes the name of a retired partner.
False
(True/False) Registration for accreditation shall be valid for a period of two years and may be renewed every year.
True
(True/False) Single practitioners and partnerships for the practice of public accountancy shall be registered certified public accountants in the Philippines.
False
(True/False) The PRC CPD Council is created to be of assistance to the PICPA CPD Council.
True
(True/False) The amount of audit fee may depend upon the qualifications and competence of audit staff assigned to the engagement.
True
(True/False) The amount of audit fees depends largely on the volume of audit work and degree of competence and responsibility involved.
False
(True/False) The certificate of accreditation to practice public accountancy is granted only once and remains in effect until withdrawn, suspended, or revoked.
False
(True/False) The client is billed on the basis of time spent by staff members of the auditing firm at rates previously agreed upon with the client. This method of billing the client is called retainer basis.
False
(True/False) The death or disability of a partner shall be reported to the BOA not later than 10 days from date of such death or disability.
False
(True/False) The maximum CPD units a professional accountant must submit for accreditation is 120 credit units.
False
(True/False) The most satisfactory method of determining audit fees is to set them at an agreed percentage of net profit since this is the best measurement of ability to pay.
False
(True/False) The names of CPA firms may not contain the first name of proprietors or partners; it must always be the surname.
False
(True/False) The profit share of a partner must be plowed back into the partnership; otherwise, the partner's license shall be revoked by the BOA.