Ateneo de Zamboanga University

School of Management and Accountancy

Accountancy Department

External Auditing 3
Midterm Examination
S.Y. 2023-2024

Name: ____________________________________ Date: ______________ Score: _______

TEST I. MULTIPLE CHOICE

Directions: Choose the letter of the BEST answer, then write the letter corresponding to your choice on the space provided before the
number. Write in CAPITAL LETTER. Strictly no erasures or any form of alteration is allowed. (70 points)

CHEATING is a choice. Make sure you are willing to take the risk of failure/expulsion for a number of points.

Problem 1
You were able to gather the following from the December 31, 2020 trial balance of Eilah Corporation in connection with your audit of
the company:
Cash on hand 336,000
Petty cash fund 10,000
EWB current account 950,000
BDO savings account No. 01 1,280,000
BDO savings account No. 02 (40,000)
BPI savings account 450,000
BPI time deposit 310,000

Cash on hand includes the following items:

a) Customer’s check for P60,000 returned by bank on December 27, 2020 due to insufficient fund but subsequently redeposited
and cleared by the bank on January 4, 2021.
b) Customer’s check for P30,000 dated January 5, 2021, received on December 29, 2020.
c) Postal money orders received from customers, P36,000.

The petty cash fund consisted of the following items as of December 31, 2020.
Currency and coins P 2,100
Employees’ vales 1,600
Currency in an envelope marked “collections for charity” with names attached 1,200
Unreplenished petty cash vouchers 800
Check drawn by Eilah Corporation, payable to the petty cashier 4,600

Included among the checks drawn by Eilah Corporation against the EWB current account and recorded in December 2020 are the
following:
a) Check written and dated December 28, 2020 and delivered to payee on January 1, 2021, P40,000.
b) Check written on December 26, 2020, dated January 3, 2021, delivered to payee on December 30, 2020, P86,000.

The credit balance in the BDO savings account No. 2 represents checks drawn in excess of the deposit balance. These checks were
still outstanding at December 31, 2020.

The savings account deposit in BPI has been set aside by the board of directors for acquisition of new equipment. This account is
expected to be disbursed in the next three months from the balance sheet date.

Based on the above and the result of your audit, compute for the adjusted balances of following:

___ 1. Cash on hand

a. P282,000 b. P372,000 c. P246,000 d. P306,000

___ 2. Petty cash fund

a. P10,000 b. P2,100 c. P9,100 d. P6,700

___ 3. EWB current account

a. P1,086,000 b. P1,076,000 c. P904,000 d. P950,000

___ 4. Cash and cash equivalents

a. P2,914,700 b. P2,878,700 c. P2,918,700 d. P3,414,700

Problem 2
In your audit of the cash account of Trisha Company, you are required to prepare a four-column reconciliation of receipts,
disbursements, and balances using the adjusted balance method and to submit adjusting journal entries as of September 30, 2005.

August 31 September 30
a) Balances per bank P14,010 P19,630
b) Balances per books 13,290 18,195
c) Deposits in transit 2,740 3,110
d) Outstanding checks 4,260 3,870
e) Bank collections not in 1,200 1,600
books
f) Bank charges not in books 950 640

g. Of the checks outstanding on September 30, one check for P700 was certified at the request of the payee.
h. Receipts for September, per bank statement – P281,070.
i. September disbursements, per cash journal – P274,635.
 j. NSF check from customer was charged by the bank on September 28, and has not been recorded – P800.
k. NSF check returned in August and recorded in September, P1,050.
l. NSF check returned and recorded in September, P900.
m. Check of Yin Company charged by the bank in error, P2,010.
n. Receipt on September 6 paid out in cash for travel expenses, P750.
o. Error in recording customer’s check on September 20, P165 instead of P465.
p. Error in disbursements journal for September, P3,250 instead of P325.

You noted in your audit that that the NSF checks returned by the bank are recorded as a reduction on the cash receipts journal instead
of recording it at cash disbursements journal; redeposits are recorded as regular cash receipts.

___ 5. Adjusted bank balance in August

a. P12,490 b. P13,240 c. P13,390 d. P12,190

___ 6. Adjusted bank balance in September

a. P22,330 b. P21,580 c. P22,480 d. P21,280

___ 7. Adjusted book receipts

a. P281,290 b. P282,190 c. P281,440 d. P281,890

___ 8. Adjusted bank disbursements

a. P272,900 b. P272,350 c. P272,200 d. P273,100

Problem 3
Ayesah Company established a petty cash fund of P5,000 on July 1, 2020. At the end of the month, the count of cash on hand
indicated that P675.40 remained in the fund. A review of the petty cash vouchers disclosed the following expenses had been incurred
during the month:
Office supplies – P341.60; Postage – P780.00; Representation – P1,000.00; Transportation – P 1,321.40; Miscellaneous – P837.60
___ 9. The above information indicates that there is
A. Cash overage of 44.00 B. Cash shortage of 44.00 C. Cash overage of 1,394.80 D. Cash shortage of 1,394.80

Problem 4
If a petty cash fund of Yancy Company is established in the amount of P2,500, and contains P2,000 in cash and P450 in receipts for
disbursements when it is replenished
___ 10. The journal entry to record replenishment should include credit to the following account/s
A. Petty Cash, 450 B. Cash, 500 C. Cash, 450; Cash Over and Short, 50 D. Petty Cash, 500

___ 11. Cash is the most inherently risky among assets in the perspective of the auditor. This is mostly associated to the fact that cash
has the highest risk of misappropriation either from within or outside the entity. Which of the following controls most likely would reduce
the risk of diversion of customer receipts by an entity’s employees?
A. Daily deposit of cash receipts. C. Prenumbered remittance advice
B. Monthly bank reconciliations. D. A bank lockbox system

___ 12. Which of the following is not a universal rule for achieving strong internal control over cash receipts?
A. Decentralize the receiving of cash as much as possible.
B. Deposit each days’ cash receipts by the end of the day.
C. Separate the cash handling function, record keeping function and regular bank reconciliation functions.
D. Where collections are made through cash and not through checks, cash receipts should be reconciled with the prenumbered
official receipt at the end of the operating day.

___ 13. Which of the following assertions does the auditor most likely would like to validate in deciding to render cash counts?
A. Existence C. Completeness
B. Valuation D. Rights and obligations

___ 14. The usefulness of the standard bank confirmation request may be limited because the bank employee who completes the form
may:
A. Be unaware of all the financial relationships that the bank has with the client.
B. Not have access to the client’s cutoff bank statement.
C. Not believe that the bank is obligated to verify confidential information to a third party.
D. Sign and return the form without inspecting the accuracy of the client’s bank reconciliation.

___ 15. The usefulness of the standard bank confirmation request may be limited because the bank employee who completes the form
may:
A. Be unaware of all the financial relationships that the bank has with the client.
B. Not have access to the client’s cutoff bank statement.
C. Not believe that the bank is obligated to verify confidential information to a third party.
D. Sign and return the form without inspecting the accuracy of the client’s bank reconciliation.

___ 16. What is the effect of not replenishing the petty cash fund at year-end and not making the appropriate adjusting entry?
A. A detailed audit is necessary.
B. The petty cash custodian should turn over the petty cash to the general cashier.
C. Expenses will be overstated and cash will be understated.
D. Cash will be overstated and expenses understated.

___ 17. To gather evidence regarding the balance per bank in a bank reconciliation, an auditor would examine all of the following
except
A. Cutoff bank statement C. Year-end bank statement
B. General ledger D. Bank confirmation

Problem 5
On June 1, 2014, Aibon Corporation purchased as a long-term investment 4,000 of the P1,000 face value, 8% bonds of Too
Corporation. You Corporation has the positive intention and ability to hold these bonds to maturity. The bonds were purchased to yield
10% interest. Interest is payable semi-annually on December 1 and June 1. The bonds mature on June 1, 2020. On November 1,
2015, You Corporation sold the bonds for a total consideration of P3,925,000.

Based on the above and the result of your audit, determine the following: (Round off present value factors to four decimal places)

___ 18. The purchase price of the bonds on June 1, 2014 is

A. P3,691,132 B. P3,696,736 C. P3,645,328 D. P3,624,596

___ 19. The interest income for the year 2014 is

A. P215,850 B. P212,830 C. P211,612 D. P215,521

___ 20. The carrying value of the investment in bonds as of December 31, 2014 is
A. P3,671,491 B. P3,649,541 C. P3,719,986 D. P3,725,919

___ 21. The interest income for the year 2015 is

A. P304,748 B. P311,218 C. P310,715 D. P306,607

___ 22. The gain on sale of investment in bonds on November 1, 2015 is

A. P104,045 B. 80,235 C. P27,632 D. P21,196

___ 23. Which of the following is not one of the auditor’s primary objectives in an audit of trading securities?
A. To determine whether securities are properly classified on the balance sheet date.
B. To determine whether securities are the property of the client.
C. To determine whether securities are authentic.
D. To determine whether securities actually exist.

___ 24. Which of the following is the least effective audit procedure regarding the existence assertion for the securities held by the
auditee?
A. Vouching all changes during the year to supporting documents.
B. Examination of paid checks issued in payment of securities purchased.
C. Simultaneous count of liquid assets.
D. Confirmation from the custodian.

___ 25. In confirming with an outside agent, such as a financial institution, that the agent is holding investment securities in the client’s
name an auditor most likely gathers evidence in support of management’s financial statement assertions of
A. Completeness and valuation C. Existence and completeness
B. Existence and presentation and disclosure D. Existence and rights and obligations

Problem 6
On January 1, 2004, Arielle Corporation purchased a tract of land (site number 101) with a building for P1,800,000. Additionally,
Arielle paid a real state broker’s commission of P108,000, legal fees of P18,000 and title guarantee insurance of P54,000. The closing
statement indicated that the land value was P1,500,000 and the building value was P300,000. Shortly after acquisition, the building
was razed at a cost of P225,000.

Arielle entered into a P9,000,000 fixed-price contract with Luis Builders, Inc. on March 1, 2004 for the construction of an office building
on the land site 101. The building was completed and occupied on September 30, 2005. Additional construction costs were incurred
as follows:

Plans, specifications and blueprints P 36,000

Architect’s fees for design and supervision 285,000

The building is estimated to have a forty-year life from date of completion and will be depreciated using the 150%-declining-balance
method.

To finance the construction cost, Arielle borrowed P9,000,000 on March 1, 2004. The loan is payable in ten annual installments of
P900,000 plus interest at the rate of 14%. Arielle used part of the loan proceeds for working capital requirements. Arielle’s average
amounts of accumulated building construction expenditures were as follows:

For the period March 1 to December 31, 2004 P2,700,000

For the period January 1 to September 31, 2005 6,900,000

Arielle is using the allowed alternative treatment for borrowing cost.

Based on the above and the result of your audit, determine the following:

___ 26. Cost of land site number 101

A. P2,205,500 B. P1,800,000 C. P1,905,000 D. P2,151,000

___ 27. Cost of office building

A. P10,581,000 B. P10,329,000 C. P10,960,500 D. P10,360,500

___ 28. Depreciation of office building for 2005

A. P99,197 B. P102,800 C. P97,130 D. P96,800

Problem 7
On April 30, 2021, Tristan Company acquired an equipment worth P 2,500,000 for its operations. The equipment has an estimated
useful life of 10 years with P 300,000 residual value. The company has a policy to depreciate all equipment using the SYD method.

___ 29. How much is the accumulated depreciation on August 1, 2024?

A. P1,227,273 B. P1,080,000 C. P1,173,333 D. P1,150,000

Problem 8
On August 31, 20x4, Rigil Co. incurred the following costs for one of its printing presses:
Purchase of collating and stapling attachment P 168,000
Installation of attachment 72,000
Replacement parts for overhaul of press 52,000
Labor and overhead in connection with overhaul 28,000

The overhaul resulted in a significant increase in production. Neither the attachment nor the overhaul increased the estimated useful life
of the press.

___ 30. What amount of the above costs should be capitalized?

A. P0 B. P168,000 C. P240,000 D. P320,000

Problem 9
Your audit of Kyla Marie Corporation for the year 2005 disclosed the following property dispositions:

Cost Acc. Dep. Proceeds Fair value Mode

Land P3,200,00 - 2,480,00 2,480,00 Condemnation
0 0 0
Building 1,200,000 - 288,000 - Demolition
Warehouse 5,600,000 880,000 5,920,00 5,920,00 Destruction by fire
0 0
Machine 640,000 256,000 72,000 576,000 Exchange
Delivery 800,000 380,000 376,000 376,000 Sale
truck

Land
On January 15, a condemnation award was received as consideration for the forced sale of the company’s land and building, which
stood in the path of a new highway.

Building
On March 12, land and building were purchased at a total cost of P4,000,000, of which 30% was allocated to the building on the
corporate books. The real estate was acquired with the intention of demolishing the building, and this was accomplished during the
month of August. Cash proceeds received in September represent the net proceeds from demolition of building.

Warehouse
On July 4, the warehouse was destroyed by fire. The warehouse was purchased on January 2, 1997. On December 12, the insurance
proceeds and other funds were used to purchase a replacement warehouse at a cost of P4,800,000.

Machine
On December 15, the machine was exchanged for a similar machine having a fair value of P504,000 and cash of P72,000 was
received.

Delivery Truck
On November 13, the delivery truck was sold to a used car dealer.

Based on the above and the result of your audit, compute the gain or loss to be recognized for each of the following dispositions:

___ 31. Land

A. P2,480,000 gain B. P3,200,000 loss C. P720,000 loss D. P0

___ 32. Warehouse

A. P1,200,000 gain B. P3,600,000 loss C. P320,000 gain D. P0

___ 33. Building

A. P288,000 gain B. P912,000 loss C. P1,488,000 loss D. P0

___ 34. Machine

A. P24,000 gain B. P18,000 gain C. P192,000 gain D. P0

___ 35. Delivery truck

A. P44,000 loss B. P424,000 gain C. P424,000 loss D. P44,000 gain

___ 36. Recorded entries in which of the following accounts are most likely to relate to the PPE completeness assertion?
A. Allowance for bad debts C. Prepaid insurance
B. Marketable securities D. Repairs and maintenance expense

___ 37. When there are numerous property and equipment transactions during the year, an auditor who plans to assess control risk at
a low level usually perform
A. Tests of controls and extensive tests of property and equipment balances at the end of the year.
B. Analytical procedures for current year property and equipment transactions.
C. Tests of controls and limited tests of current year property and equipment transactions.
D. Analytical procedures for property and equipment balances at the end of the year.

___ 38. Analysis of which account is least likely to reveal evidence relating to recorded retirement of equipment?
A. Insurance expense C. Property, plant and equipment
B. Purchase returns D. Accumulated depreciation

___ 39. The failure to capitalize a permanent asset, or the recording of an asset acquired at the improper amount, affects the income
statement
A. For the current period C. For the go
B. For the depreciable life of the asset D. Forever
___ 40. An auditor is verifying a company’s ownership of equipment. What is the best evidence of ownership?
A. An interview with the equipment custodian verifying company ownership.
B. A canceled check written to acquire the equipment.
C. The current year’s depreciation expense journal entry.
D. The presence of the equipment on the company’s statement of financial position.

Problem 10
Rayne Company incurred P100,000 of research and development costs to develop a product for which a patent was granted on
January 1, 2017. Legal fees and other costs associated with registration of the patent totaled P300,000. The patent is being amortized
over its legal life. On July 1, 2019, Rayne Company won and paid legal fees of P80,000 for the successful defense of the patent against
an infringement lawsuit filed by Mikko Company.

___ 41. How much is the total expenses for the year 2019 assuming Rayne Company did not win the lawsuit?
A. P342,500 B. P262,500 C. P350,000 D. P87,500

Problem 11
Uriel Company acquired a patent for a drug with a remaining legal and useful life of six years on January1, 2015 for P5,400,000. On
January 1, 2017, a new patent is received for an improved version of the same drug. The new patent has a legal and useful life of
twenty years.

___ 42. What is the amortization expense for 2017?

A. P180,000 B. P300,000 C. P200,000 D. P900,000

Problem 12

Use the following for the next two

questions
Mikhail Company developed a new
machine for manufacturing
baseballs. Because the machine is
very
valuable, the entity had it patented.
The following expenditures were
incurred in developing and patenting
the machine:
Purchase of special equipment to be
used solely for development of the
new machine P 2,000,000
Drawings required by patent office
to be filed with patent application
30,000
Cost of testing prototype
300,000
Fees paid to government patent
office 100,000
Research salaries and fringe benefits
for engineers 350,000
Legal cost for filing patent
250,000
Use the following for the next two
questions
Mikhail Company developed a new
machine for manufacturing
baseballs. Because the machine is
very
valuable, the entity had it patented.
The following expenditures were
incurred in developing and patenting
the machine:
Purchase of special equipment to be
used solely for development of the
new machine P 2,000,000
Drawings required by patent office
to be filed with patent application
30,000
Cost of testing prototype
300,000
Fees paid to government patent
office 100,000
Research salaries and fringe benefits
for engineers 350,000
Legal cost for filing patent
250,000
Use the following for the next two
questions
Mikhail Company developed a new
machine for manufacturing
baseballs. Because the machine is
very
valuable, the entity had it patented.
The following expenditures were
incurred in developing and patenting
the machine:
Purchase of special equipment to be
used solely for development of the
new machine P 2,000,000
Drawings required by patent office
to be filed with patent application
30,000
Cost of testing prototype
300,000
Fees paid to government patent
office 100,000
Research salaries and fringe benefits
for engineers 350,000
Legal cost for filing patent
250,000
Jonabelle Company developed a new machine for manufacturing baseballs. Because the machine is very valuable, the entity had it
patented. The following expenditures were incurred in developing and patenting the machine:
Purchase of special equipment to be used solely for development of the new machine P 2,000,000
Drawings required by patent office to be filed with patent application 30,000
Cost of testing prototype 300,000
Fees paid to government patent office 100,000
Research salaries and fringe benefits for engineers 350,000
Legal cost for filing patent 250,000

Legal cost for filing patent

250,000
b. 2,750,000
___ 43. What is the amortization expense for 2017?
A. P2,750,000 B. P2,650,000 C. P3,030,000 D. P2,330,000

___ 44. What amount should be capitalized as cost of patent?

A. P250,000 B. P730,000 C. P350,000 D. P380,000

Problem 13

Shawarma Company spent

P3,000,000 on a new software
package that is to be used only for
internal use.
The amount was spent after the
application development stage.
Shawarma Company spent
P3,000,000 on a new software
package that is to be used only for
internal use.
The amount was spent after the
application development stage.
Joshua Company spent P3,000,000 on a new software package that is to be used only for internal use. The amount was spent after
the application development stage. The economic life of the product is expected to be three years. The equipment on which the
package is to be used is being depreciated over six years.

___ 45. What amount of expense should be reported for the first full year?
A. P3,000,000 B. P2,000,000 C. P1,000,000 D. P0

The economic life of the product is

expected to be three years. The
equipment on which the package is
to
be used is being depreciated over six
years.
What amount of expense should be
reported for the first full year
___ 46. In auditing intangible assets, an auditor most likely would review or recomputed amortization and determine whether the
amortization period is reasonable in support of management’s financial statement assertion of
A. Completeness C. Existence and occurrence
B. Valuation and allocation D. Rights and obligations

___ 47. I. There is goodwill involved in the acquisition of a business if the purchase price paid is in excess of the proprietorship of the
business acquired.
II. Goodwill might be viewed as the enjoyment of a profit by a company in excess of the normal or usual pattern for the industry
as a whole but such goodwill is not recorded if it has not been purchased or paid for.
A. False – True C. True - True
B. True – False D. False - False

___ 48. In auditing intangible assets, an auditor most likely would review or recomputed amortization and determine whether the
amortization period is reasonable in support of management’s assertion of
A. Completeness C. Existence and occurrence
B. Valuation and allocation D. Rights and obligations

___ 49. The auditor has set an audit objective of determining whether research and development projects were properly authorized.
Which of the following audit techniques will best meet this objective?
A. Inquiry C. Analytical procedures
B. Observation D. Inspection

___ 50. Goodwill impairment refers to

A. Loss of trust from customers. C. A permanent decline in value of recorded goodwill.
B. The amount of amortization. D. A need for increased professional skepticism.

___ 51. Information regarding the legal life and useful life of the company’s patent is related to what financial statement assertion?
A. Disclosure and Valuation C. Existence and Presentation
B. Completeness and Validity D. Accuracy and Existence

___ 52. An entity developed a new secret formula which is of great value because it resulted in a virtual monopoly. The entity has
capitalized all research and development costs associated with this formula. The CPA who is examining this account will probably
A. Confirm that the secret formula is registered and on file with the county clerk’s office.
B. Confer with management regarding a change in the title of the account to goodwill.
C. Confer with management regarding transfer of the amount from the statement of financial position to the income statement.
D. Confer with management regarding ownership of the secret formula.
___ 53. The most effective means for the auditor to determine whether a recorded intangible asset possesses the characteristics of an
asset is to
A. Evaluate the future revenue producing capacity of the intangible asset.
B. Analyze research and development expenditures to determine that only such expenditures possessing future economic benefit
have been capitalized.
C. Vouch the purchase by reference to underlying documentation.
D. Inquire as to the status of patent applications.

___ 54. The client has just acquired another company by purchasing all its assets. As a result of the purchase, goodwill has been
recorded on the client’s books. Which of the following comparisons would be the most appropriate audit test for the amount of recorded
goodwill?
A. The purchase price and the book value of assets purchased.
B. The figure for goodwill specified in the contract for purchase.
C. Earnings in excess of 15% if net assets for the past five years.
D. The purchase price and the fair market value of assets purchased.

___ 55. In verifying the amount of goodwill recorded by a client, the most convincing evidence which an auditor can obtain is by
comparing the recorded value of assets acquired with the
A. Assessed value as evidence by tax bills.
B. Appraised value as evidenced by independent appraisals.
C. Seller’s book value as evidenced by financial statements.
D. Insured value as evidence by insurance companies.

Problem 14
In 2011, Casandra Corp. sold a comic strip to Joshua II, Inc. and will receive royalties of 20% of future revenues associated with the
comic strip. At December 31, 2012, Casandra reported royalties receivable of P75,000 from Joshua II. During 2013, Casandra received
royalty payments of P200,000. Joshua II reported revenues of P1,500,000 in 2013 from the comic strip.

___ 56. In its 2013 income statement, what amount should Casandra report as royalty revenue?
A. P300,000 B. P125,000 C. P175,000 D. P200,000

Problem 15

Cooke Company acquires patent rights

from other enterprises and pays advance
royalties in some cases, and in
others, royalties are paid within ninety
days after year-end. The following data
are included in Cooke’s December 31
balance
sheets:
2011 2012
Prepaid royalties $55,000 $45,000
Royalties payable $80,000 $75,000
During 2012 Cooke remitted royalties of
$300,000. In its income statement for the
year ended December 31, 2012, Cooke
should report royalty expense of
Rgilaine Company acquires patent rights from other enterprises and pays advance royalties in some cases, and in others, royalties
are paid within ninety days after year-end. The following data are included in Rgilaine’s December 31 balance sheets:

2011 2012
Prepaid royalties 55,000 45,000
Royalties payable 80,000 75,000

During 2012 Rgilaine remitted royalties of P300,000. In its income statement for the year ended December 31, 2012, Rgilaine should
report royalty expense of

___ 57. What amount of expense should be reported for the first full year?
A. P310,000 B. P295,000 C. P314,000 D. P330,000

___ 58. On January 1, 2012, Keziah Co. signed a five-year contract enabling it to use a patented manufacturing process beginning in
2012. A royalty is payable for each product produced, subject to a minimum annual fee. Any royalties in excess of the minimum will be
paid annually. On the contract date, Keziah prepaid a sum equal to two years’ minimum annual fees. In 2012, only minimum fees were
incurred. The royalty prepayment should be reported in Keziah’s December 31, 2012 financial statements as
A. An expense only
B. A current asset and a noncurrent asset
C. A noncurrent asset
D. A current asset and an expense

___ 59. A retail store received cash and issued gift certificates that are redeemable in merchandise. The gift certificates lapse one year
after they are issued. How would the deferred revenue account be affected by each of the following transactions? Redemption of
certificates Lapse of certificates
A. No effect, Decrease
B. Decrease, Decrease
C. Decrease, No effect
D. No effect, No effect

___ 60. Jersey, Inc. is a retailer of home appliances and offers a service contract on each appliance sold. Jersey sellsappliances on
installment contracts, but all service contracts must be paid in full at the time of sale. Collections receivedfor service contracts should be
recorded as an increase in a:
A. Deferred revenue account.
B. Sales contracts receivable valuation account.
C. Stockholders’ valuation account.
D. Service revenue account.

A retail store received cash and issued

gift certificates that are redeemable in
merchandise. The gift
certificates lapse one year after they are
issued. How would the deferred revenue
account be affected by each of the
following transactions? Redemption of
certificates Lapse of certificate