Reviewer Cfas

1. What is the overall objective of accounting?
The overall objective of accounting is to provide quantitative financial

information about a business, useful to statement users particularly owners
and creditors in making economic decisions.
2. Describe the accountancy profession.
Accountancy has developed as a profession attaining a status

equivalent to that of law and medicine.
In the Philippines, in order to qualify to practice the accountancy
profession, a person must finish a degree in BSA and pass a very difficult
government exam given by the Board of Accountancy which is the CPALE.
3. What is RA No. 9298?
Law regulating the practice of accountancy in the Philippines. This is

known as the Philippine Accountancy Act of 2004.
4. What do you understand by the Board of Accountancy?
Board of Accountancy is the body authorized by law to promulgate

rules and regulations affecting the practice of the accountancy profession in
the Philippines. Board of Accountancy is also responsible for preparing and
grading the Philippine CPA examination.
5. Explain the limitation of the practice of public accountancy.
Single practitioners and partnerships for the practice of public

accountancy shall be registered certified public accountants in the Philippines.
The SEC shall not register any corporation organized for the practice
of public accountancy.
6. Explain the accreditation to practice of accountancy.
CPAs, firms & partnerships of certified public accountants, including

partners and staff members are required to register with the BOA and PRC for
the practice of Public Accountancy.
7. What are the three main areas in the practice of the accountancy profession?
Public Accounting, Private Accounting & Government Accounting.
8. Explain public accounting.
The field of public accounting or public accountancy is composed of

individual practitioners, small accounting firms and large multinational
organizations that render independent and expert financial services to the
public.
9. Explain auditing, taxation service and management advisory services.
Auditing has traditionally been the primary service offered by most

public accounting practitioners. Auditing or external auditing is the
examination of financial statements by the independent certified public
accountant for the purpose of expressing an opinion as to the fairness with
which the financial statements are prepared.
Taxation service includes the preparation of annual income tax returns

and determination of tax consequences of certain proposed business
endeavors.
Management advisory services have become increasingly important in

recent years although audit and tax services are undoubtedly the mainstay of
public accountants.
10. Explain private accounting.
Private accounting includes maintaining the records, producing the

financial reports, preparing the budgets and controlling & allocating the
resources of the entity. Its major objective is to assist management in planning
and controlling the entity’s operations.
The highest accounting officer in an entity is known as the controller.
11. Explain government accounting.
Government accounting encompasses the process of analyzing,

classifying, summarizing and communicating all transactions involving the
receipt and disposition of government funds & property & interpreting the
results thereof.
The focus of government accounting is the custody and administration of
public funds.
12. What do you understand by the Continuing Professional Development of

CPAs?
All certified public accountants shall abide by the requirements, rules

and regulations on continuing professional development to be promulgated
by the Board of Accountancy, subject to the approval of the Professional
Regulation Commission.
CPD is the acquisition of advance knowledge, skill and proficiency.
CPD raises and enhances the technical skill & competence of the CPA.
13. What is the meaning of CPD credit units?
This refer to the CPD credit hours required for the renewal of CPA
license and accreditation of a CPA to practice accountancy profession every 3
years.
14. How many CPD credit units are required?
120 credit units.
15. What is the purpose of the required CPD credit units?
The purpose of it is to renew CPA license and accreditation of CPA to

practice accountancy profession.
16. What is the exemption from the CPD requirements?
A CPA shall be permanently exempted from CPD requirements upon

reaching the age of 65 years.

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1. What is the overall objective of accounting?

The overall objective of accounting is to provide quantitative financial

Accountancy has developed as a profession attaining a status

3. What is RA No. 9298?

Law regulating the practice of accountancy in the Philippines. This is

4. What do you understand by the Board of Accountancy?

Board of Accountancy is the body authorized by law to promulgate

5. Explain the limitation of the practice of public accountancy.

Single practitioners and partnerships for the practice of public

CPAs, firms & partnerships of certified public accountants, including

Public Accounting, Private Accounting & Government Accounting.

8. Explain public accounting.

The field of public accounting or public accountancy is composed of

9. Explain auditing, taxation service and management advisory services.

Auditing has traditionally been the primary service offered by most

Taxation service includes the preparation of annual income tax returns

Management advisory services have become increasingly important in

Private accounting includes maintaining the records, producing the

11. Explain government accounting.

Government accounting encompasses the process of analyzing,

12. What do you understand by the Continuing Professional Development of

All certified public accountants shall abide by the requirements, rules

13. What is the meaning of CPD credit units?

120 credit units.

15. What is the purpose of the required CPD credit units?

The purpose of it is to renew CPA license and accreditation of CPA to

16. What is the exemption from the CPD requirements?

A CPA shall be permanently exempted from CPD requirements upon

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