Frequently Asked Questions
What is the difference of accountant and bookkeeper?
Bookkeeper focuses on records and organization of financial data. Bookkeeping consists of payroll, invoicing, recording receipts, payments and other business transactions.
Accountant focuses on interpretation and presentation of data to business owners, investors and other users of the Business' financial data. Accounting consists of financial statements and reports, budgets, forecasts, tax returns and analyzing business performance.
There are times that Bookkeeping and Accounting may be performed by one person.
What is a Certified Public Accountant and what are his/her role in the Audit Engagement?
A Certified Public Accountant is a designation given to those who met the education and experience requirements and passed the CPA licensure examination.
Based on the Audit, the CPA gives an opinion on the Financial Statements whether it was prepared in accordance with the standards, or material misstatements are found.
Under Bureau of Internal Revenue, who are required to submit Audited Financial Statements (AFS)?
Individuals, Partnerships, or Corporations earning gross sales of PHP 3,000,000 per year (amount updated by TRAIN Law) must submit an Audited Financial Statements each year except Individuals who avail the Optional Standard Deduction (OSD).
The AFS should be filed as an attachment to the Company's Annual Income Tax Return (AITR).
Under Securities and Exchange Commission, who are required to submit Audited Financial Statements (AFS)?
For Corporations and Partnerships, they are required by SEC to file AFS regardless of the rule in BIR. This is a mandatory reportorial requirement every year, and SEC will not accept filing unless the same is stamped filed by BIR.
What are the Pre-Engagement Procedures before Audit?
The Auditor performs the following pre-engagement acceptance or continuance procedures:
- Independence Assessment
- Pre-engagement Assessment
- Communications with the previous Auditor (if applicable)
What are the phases of Audit Process?
The Audit Process is divided into seven phases:
1st
Pre-engagement Procedures
2nd
Audit Planning
3rd
Study and Evaluation of Internal Control
4th
Substantive Tests
5th
Complete Audit Engagement
6th
Issuance of Audit Report
7th
Post-Audit Responsibilities
What are the modes of Filing of Tax Returns?
Tax returns can be filed manually, through eBIR Forms, or through the Electronic Filing and Payment System (eFPS) facility.
What are the important documents to remember and prepare during Tax Mapping?
Companies must be ready to show their Bookkeeping requirements, Invoicing Requirements, and Registration requirements.
What are the examples of techniques used in Financial Statement Analysis?
Horizontal and Vertical Analysis, Ratio and Trend Analysis, Cash Flow Analysis
What is the difference of Real Estate Agent and Real Estate Broker?
A real estate agent assist with the buying and selling of properties. All real estate agents must work for a broker.
A real estate broker is a licensed professional in their own right in addition to being a licensed real estate agent. It is the broker's duty to ensure that the transactions are lawful, requirements and paperwork are complete and reported properly.