Professional Documents
Culture Documents
1. The objective of the Philippine Accountancy Act of 7. As used in RA 9298, this term refers to the area of
2004 includes: practice of accountancy:
a. The standardization and regulation of accounting a. Segment
education. b. Line
b. The examination for registration of certified c. Sector
public accountants. d. Section
c. The supervision, control, and regulation of the
practice of accountancy in the Philippines. 8. A Certified Public Accountant or CPA is:
d. All of the above a. A person who holds a valid Certificate of
Registration issued by the PRC
2. The Philippine Accountancy Act of 2004 shall provide b. A person who holds a valid professional
for and govern: Identification Card issued by the PRC
a. The supervision, control, and regulation of the c. A person who holds a valid Certificate of
practice of accountancy in the Philippines. Registration and a valid Professional
b. The standardization and regulation of accounting Identification Card issued by the PRC
education. d. A person who is engaged in the practice of
c. The examination for registration of certified public accountancy
public accountants.
d. All of the above 9. A CPA is in public accounting practice when he/she:
a. Holds, or is appointed to, in an accounting
3. The document that contains the norm and principles professional group in government or in a
governing the practice of the accountancy profession government-owned and/or controlled
in the highest standards of ethical conduct corporation where decision making requires
a. RA 9298 professional knowledge in the science of
b. Code of Ethics for CPAs in the Philippines accounting.
c. IRR to RA 9298 b. Represents his/her clients before
d. PSA 220 on Quality Control government agencies on tax and other
matters related to accounting.
4. The following statements relate to some of the c. Represents his/her employer before government
provisions of RA 9298. Which is correct? agencies on tax and other matters related to
a. Audit working papers are generally the property accounting.
of the company whose financial statements were d. Teaches accounting, auditing, management
audited. advisory services, accounting aspect of finance,
b. After three (3) years, subject to certain business law, taxation, and other technically
conditions, the Board of Accountancy may order related subjects.
the reinstatement of
a CPA whose certificate of registration has been 10. Which of the following statements concerning the
revoked. practice of accountancy in commerce and industry is
c. The penal provision (Sec. 36) of RA 9298 applies incorrect?
only to the violation of any of the provisions of a. A CPA is in the practice of accountancy in
RA 9298 because its Implementing Rules and commerce and industry when he/she is involved
Regulations are unenforceable. in decision making requiring professional
d. It shall be the primary duty of the PRC and knowledge in the science of accounting, as well
the BOA to effectively enforce the as the accounting aspects of finance and
provisions of RA 9298. taxation.
b. A CPA is in the practice of accountancy in
5. Which of the following organization has been commerce and industry when he/she
recognized by the Commission on October 2, 1975 renders professional services as a Certified
per Accreditation No. 15, As Accredited Professional Public Accountant to more than one client
Organization? on a fee basis.
a. Board of Accountancy (BOA) c. A CPA is in the practice of accountancy in
b. Association of CPA's in Public Practice (ACPAPP) commerce
c. Association of CPAs in Education (ACPAE) and industry when he/she represents his/her
d. Philippine Institute of CPAs (PICPA) employer before government agencies on tax
and other matters related to accounting.
6. The area of practice of accountancy namely public d. A CPA is in the practice of accountancy in
accountancy, commerce and industry, academe / commerce and industry when such employment
education and government are called: or position requires that the holder thereof must
a. Sectors be a Certified Public Accountant.
b. Scope of practice of accountancy
c. Section 11. Which of the following does not constitute a practice
d. Segment of accountancy?
a. A person holding out himself as one skilled in the
35. Who has the power to suspend or remove any 43. According to Section 9(A) of the IRR, the
member of the Board of Accountancy? Commission upon the recommendation of the Board,
a. The Chairman of the FRSC shall create an auditing standard setting body to be
b. The Chairman of the PRC known as the
c. The Chairman of the AASC a. Auditing and Assurance Standards Council
d. The President of the Philippines (AASC)
b. Auditing Standards Board
36. This standard setting body shall have a chairman c. Auditing Standards Council
who had been or presently a senior accounting d. Auditing Standards and Practices Council (ASPC)
practitioner in any of the scope of accounting
practice. 44. The Auditing and Assurance Standards Council
a. PICPA (AASC) shall be composed of
b. ACPAPP a. 8 members
c. FRSC b. 14 members
d. AASC c. 15 members
d. 17 members
37. This standard setting body shall have a chairman
who had been or presently a senior accounting 45. Which of the following does not have representation
practitioner in public accountancy. in the Financial Reporting Standards Council (FRSC)?
a. BOA a. Board of Investments (BOI)
b. AASC b. Philippine Institute of CPAs (PICPA)
c. FRSC c. Bureau of Internal Revenue (BIR)
d. ACPAE d. Board of Accountancy (BOA)
38. The Chairman and the members of the FRSC and 46. The following are represented both to the Financial
AASC shall have a term of Reporting Standards Council (FRSC) and Auditing
a. 1 year and Assurance Standards Council (AASC), except:
b. 3 years a. Bangko Sentral ng Pilipinas
c. 5 years b. Bureau of Internal Revenue
d. 6 years c. Securities and Exchange Commission
d. Board of Accountancy
39. The following statements relate to the term of office
of the Chairman and members of the Board of 47. Which of the following functions to promulgate
Accountancy (BOA). Which is false? auditing standards?
a. The Chairman and members of the BOA shall a. National Accredited Professional Organization
hold office for a term of three (3) years. b. Financial Reporting Standards Council
b. Any vacancy occurring within the term of a c. Auditing and Assurance Standards Council
member shall be filled up for the unexpired d. ACPAPP
portion of the term only.
c. Appointment to fill up an unexpired term is not 48. The auditing standard setting body created by the
to be Board of Accountancy is known as
considered as a complete term. a. Accounting Standards Council (ASC)
d. No person who has served two successive b. Financial Reporting Standards Council (FRSC)
complete terms as chairman or member c. Auditing Standards and Practices Council (ASPC)
shall be eligible for reappointment until d. Auditing and Assurance Standards Council
60. Which of the following shall be issued to examinees 65. The following are grounds for the suspension or
who passed the CPA licensure examination? revocation of certificate of registration and
a. Certificate of accreditation professional identification card, except:
b. Personal identification card a. Unprofessional or unethical conduct.
c. Certificate of full compliance and PRC ID. b. Practice in more than one field of
d. Certificate of registration and professional accountancy.
identification card c. Possession of unsound mind.
d. Conviction of a criminal offense involving moral
61. To be qualified as having passed the CPA licensure turpitude.
examination:
a. The candidate must have a general weighted 66. The following are grounds for refusal to issue a
average of at least 75%. certificate of registration and professional
b. The candidate must not have a grade lower than identification card to any successful examinee
65% in any given subject. except:
c. A and B a. Guilty of immoral and dishonorable conduct.
d. Neither A nor B b. Conviction for a political offense.
c. Unsound mind.
62. Any candidate who fails in 2 complete CPA Board d. Conviction of a criminal offense involving moral
Examinations shall be disqualified from taking turpitude.
another set of examination unless he or she submits
evidence to the satisfaction of the Board that 67. A CPA whose certificate has been revoked:
a. He/She enrolled in and completed at least a. Has committed a crime involving moral
24 units of subjects given in the licensure turpitude.
examination. b. Is required to take the CPA Board Licensure
b. He/She enrolled the subjects given in the CPA examinations before reinstatement.
Board Examination in the regular course offering. c. May be reinstated by the BOA after the
c. He/She is ready to take another set of expiration of 2 years from the date of
examination. revocation.
d. He/She enrolled in an educational institution d. Can no longer be reinstated as a CPA.
offering or conducting review classes in
preparation for CPA Board Examination. 68. The Board of Accountancy may issue certificate of
registration and professional identification card to
63. The following statements relate to CPA examination any successful examinee:
ratings. Which of the following is incorrect? a. Of unsound mind
a. To pass the examination, candidates should b. Convicted by a court of political offense.
obtain a general weighted average of 75% and c. Guilty of immoral or dishonorable conduct.
above, with no rating in any subject less than d. Who has falsely represented himself/herself in
65%. his/her application for examination.
b. Conditioned candidates shall take an
examination in the remaining subjects within two 69. The Board of Accountancy may, after the expiration
years from the preceding examination. of ____ years from the date of revocation of a
c. Candidates who obtain a rating of 75% and certificate of registration, reinstate the validity of a
above in at least four subjects shall receive a revoked certificate of registration.
conditional credit for the subjects passed. a. 2 b. 3 c. 4 d. 5
d. Candidates who failed in four complete
examinations shall no longer be allowed to 70. It involves a study or appraisal by the Board or its
take the examinations the fifth time. duly authorized representatives, of the quality of
audit of financial statements through an evaluation of
64. The following statements relate to the rating in the the quality control measures instituted by the CPA
CPA licensure examination. Identify the incorrect firm to ascertain compliance with ethical and
statement. technical standards of public practice.
a. A candidate must have a general weighted a. Quality review
average of at least 75% with no grades lower b. Peer review
than 65% in any given subject in order to pass c. Compliance audit
the CPA licensure examination. d. External audit
b. In the event a candidate obtains a rating of 75%
and above in at least a majority of the subjects, 71. A body created by the BOA to conduct an oversight
73. All CPAs who are considered in the practice of 79. The following statements relate to the exemption
accountancy shall abide by the requirements, rules from CPE requirements. Which is false?
and regulations on continuing professional education. a. A registered professional shall be
For this purpose, it is required that all registered permanently exempted from CPE
CPAs must complete a number of CPE units requirements upon reaching the age of 60
equivalent to years old.
a. 60 credit units in three years b. A registered professional shall be permanently
b. 45 credit units in three years exempted from CPE requirements upon reaching
c. 30 credit units in three years the age of 65 years old.
d. 15 credit units in three years c. A registered professional who is working or
practicing his/her profession abroad shall be
74. For every CPE seminars or conventions attended, temporarily exempted from compliance with CPE
participant CPAs shall get a CPE credit equivalent to requirements during the period of his/her stay
a. One credit unit per hour. abroad provided that he/she has been out of the
b. Two credit units per hour. country for at least two years immediately prior
c. Three credit units per hour. to the date of renewal.
d. Five credit units per hour. d. A registered professional who is furthering
his/her studies abroad shall be temporarily
75. Unless otherwise exempted, registered CPAs in the exempted from compliance with CPE
practice of accountancy who have not completed the requirements during the period of his/her stay
CPE requirements shall abroad provided that he/she has been out of the
a. Be dropped from the roster of CPAs. country for at least two years immediately prior
b. Not be allowed to renew their professional to the date of renewal.
licenses.
c. Present evidence to the satisfaction of the Board 80. A registered professional shall be permanently
that they have the necessary knowledge, skills exempted from CPE requirements upon reaching the
and experience to discharge their professional age of
responsibility. a. 55 years old
d. Submit a letter addressed to the Board indicating b. 65 years old
the reasons for not complying with the CPE c. 60 years old
requirements. d. 70 years old
76. Which of the following statements is correct about 81. As defined in Annex "C" of the IRR, this refers to the
the PRC CPE Council? inculcation, assimilation and acquisition of
a. The Council shall be composed of six members knowledge, skills, proficiency and ethical and moral
and a chairperson. values, after the initial registration of a professional
b. The members of the Board shall choose a that raise and enhance the professional's technical
chairperson from among themselves. skills and competence.
c. The members of the Council shall be appointed a. Professional Development
by the Commission upon recommendation of the b. Continuing Professional Education
Board in coordination with APO. c. Continuing Professional Development
d. The chairperson and members of the Council d. Professional Growth and Development
shall have a term of three years renewable for
another term. 82. The PRC CPE Council shall assist the BOA in
implementing its CPE program. Which of the
77. How many CPE credit units must be accumulated by following statements is incorrect concerning the
a registered accounting professional within the 3- Council's composition?
year period? a. The PRC CPE Council shall be composed of a
101. The death or disability of an individual CPA 109. What is the required minimum number of CPE
and/or the dissolution and liquidation of a firm or credit units that an accounting teacher shall earn in
partnership of CPAs shall be reported to the BOA not each year prior to renewal of accreditation?
later than days from the date of such death, a. 15 units
dissolution or liquidation. b. 20 units
a. 15 c. 10 units
b. 30 d. No minimum number of credit units required
c. 60
d. 90 110. The Certificate of Accreditation issued by the
PRC to an accounting teacher shall
102. Which of the following has the power to conduct a. Be valid for 2 years and renewable every 2
an oversight into the quality of audits of financial years.
statements through the review of the quality control b. Be valid initially for 3 years and renewable
measures instituted by auditors? annually.
a. Bureau of Internal Revenue c. Remain in full force and effect unless revoked,
b. Securities and Exchange Commission cancelled or withdrawn.
c. Board of Accountancy d. Be valid for 3 years and renewable every 3
d. Insurance Commission years.