28689037-Past-CPA-Board-on-MAS - Past CPA Board on MAS PART...

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Past CPA Board on MAS PART I. Basic Consideration in MAS and Consulting Practice 1. Which of the following statement is True? a. Adequate training and experience in both the analytical approach and process in the particular undertaking are requisites for the CPA to be involved in a management service engagement. b. A CPA with MBA and Ph D Degrees is automatically qualified to render management services. c. Competence as a standard in the rendition of management services by a CPA may be equated to having excellent scholarly preparation to include the usual baccalaureate degree, an MBA and other post graduate studies. d. A CPA by virtue of having the necessary academic preparation and by hurdling the licensure examinations required to have a CPA license can readily render management services to the public. 2. Which of the following statement is False? a. CPAs provide management services to go around the ethical constraints as mandated by the accountancy act. b. Businesses hire management consultants to help define specific problems and develop solutions. c. Included in the practice of consulting is the provision of confidential service in which the identity of the client is concealed. d. CPAs performing management services may be considered to be in the practice of management consulting. 3. Mr. Rey Carlos, a CPA firm’s partner in-charge of quality assurance and review is arguing with Mr. Rueben Fortuna, the consulting partner regarding the question on independence as Mr. Fortuna is presently rendering consulting services to T. Ang & Nga Company, an audit client of the firm. Related to this issue of independence, all of the following statements are not valid except: a. Independence is not sacrifice 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.
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d. It is up to professional judgment and discretion of the auditor/consultant to render decision for the client for as long as his professional fees are commensurate to the benefits that the client will derive from the engagement. 4. A Certified Public Accountant’s scope of management services is broad and covers all of the following except: a. Change management engagement b. Computerization engagements c. Audit engagements d. Re-engineering jobs 5. Which of the following statements is not acceptable? a. A CPA represents 3 major players in the industry in rationalizing the industry’s incentives before the government public hearings. b. A CPA shares with a new and substantial client information
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28689037-Past-CPA-Board-on-MAS - Past CPA Board on MAS PART...

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