THE PRACTICE OF ACCOUNTANCY

1. Practice of Public Accountancy shall constitute in a person:

a. When he or she is involved in teaching of accounting, auditing,
management advisory services, accounting aspect of finance,
business law, taxation and other technically related subjects.
b. When involved in decision making requiring professional
knowledge in the science of accounting, as well as the
accounting aspects of finance and taxation.
c. When he/she represents his/her employer before government
agencies on tax and other matters relating to accounting.
d. When a person is skilled in knowledge, science and practice of
accounting and as a qualified person to render professional
services as a CPA
2. In pursuing a CPA firm’s quality objectives, a CPA firm should adopt
policies and procedures to enable it to identify and evaluate
circumstances and relationships that create threats to independence,
and to take appropriate action to eliminate those threats or reduce
them to an acceptable level by applying safeguards, or, if considered
appropriate, to withdraw form the engagement. Which quality control
element would this be most likely to satisfy?
a. Ethical requirements
b. Human resources
c. Leadership responsibilities for quality within the firm
d. Monitoring
3. Individual CPAs, Firms or Partnerships of CPAs, including partners and
staff members thereof shall register with the BOA and the PRC. If the
application for the registration of AB and Co., CPAs was approved on
August 30, 2015, it shall file for renewal on or before
a. August 30, 2017
b. September 30, 2017
c. December 31, 2017
d. December 31, 2018
4. A CPA shall not practice under a firm name that includes or indicates
the following except
a. Fictitious name
b. Misleading as to the type of the organization
c. Name(s) of past partner(s) in the firm name of successor
partnership
d. Specialization
5. Individual CPAs, Firms or Partnerships of CPAs, including partners and
staff members thereof shall register with the BOA and the PRC. If
Emong and Bobads, CPAs renewed its accreditation on August 30,
2015, it shall file for renewal on or before
a. August 30, 2018
b. September 30, 2018
c. September 30, 2017
d. December 31, 2017
6. A and C, CPAs, organized a partnership for the practice of public
accounting. Which of the following is the best name of the firm?
a. A and C, CPAs
b. A and C, Members, PICPA
c. A and C, Auditors and Tax Consultants
d. A and C, Inc.
7. Under the IRR of RA 9298, if a partner in a two-member partnership
dies, the surviving partner may continue as an individual under the
existing firm title which includes the deceased partner’s name
a. For a period of time not to exceed five years.
b. Indefinitely.
c. For a period of time not to exceed two years.
d. Until the partnership payout to the deceased partner’s estate is
terminated.
8. Rico Penamante, CPA has released a 1,200 page book on Auditing
Problems. Technically, his work falls under authorship” for the purpose
of CPE credits. Credit earned by Mr. Penamante must be claimed:
a. Within six months from the date of publication
b. Within one year from the date of publication
c. Within six days from the date of publication
d. Within three years from the date of publication
9. Which statement is incorrect regarding CPE requirements for renewal
of professional license?
a. A registered professional shall be permanently exempted from
CPE requirements upon reaching the age of 65 years old.
b. Those who failed to renew professional licenses for a period of
five (5) continuous years from the initial registration, or of from
the last renewal shall be declared delinquent.
c. A registered professional who is working abroad shall be
temporarily exempted from compliance with CPE requirement
during his/her stay abroad, provided that he/she is has been out
of the country for at least one year immediately prior to the
date of renewal.
d. The total CPE credit unit required for CPAs shall be sixty (60)
units for (3) years, provided that a minimum of fifteen (15)
units shall be earned in each year.
10. Inventions (of national significance) made by a CPA will earn
him/her
a. 20- 40 CU
b. 10- 30 CU
c. 10 CU
d. 10- 20 CU
11. A CPA who authored a 110-page book in Auditing Theory will
earn him/her
a. 40 CU
b. 20 CU
c. 10 CU
d. 30 CU
12. Under the provision of the RA 9298, a partner surviving the
death or withdrawal of all partners may continue to practice under the
partnership name
a. For one year after becoming a sole practitioner
b. For two years after becoming a sole practitioner
c. For five years after becoming a sole practitioner
d. For three years after becoming a sole practitioner
13. How many credit units per hour is (are) earned by a CPA who
serves as a resource speaker at a CPE seminar?
a. 2 CU per hour
b. 3 CU per hour
c. 5 CU per hour
d. 1 CU per hour
14. A study, appraisal, or review by the BOA or its duly authorized
representatives, of the quality of audit of financial statements through
a review of the quality control measures instituted by an individual
CPA, Firm or Partnership of CPAs engaged in the practice of public
accountancy.
a. Peer review
b. Administrative review
c. Quality review
d. Analytical review
15. How many credit units per year are earned by a CPA who serves
as a chairperson of the BSA program?
a. 20 CU
b. 5 CU
c. 10 CU
d. 30 CU
16. The Continuing Professional Education (CPE) program
mentioned in the IRR shall have the following objectives, except:
a. To attain and maintain the highest standards and quality in the
practice of the profession
b. To raise and maintain the professional capability for delivering
professional services
c. To promote the general welfare of the public
d. To provide and ensure the continuous education of the
accountancy students with the latest trends in the profession
bought about by modernization and scientific and technological
advancement
17. S1: A meaningful experience shall be considered as satisfactory
compliance with the requirements of Section 28 if it is earned in
academe/education and shall include teaching for at least three (3)
trimesters or two (2) semesters subject in either financial accounting,
business law and tax, auditing problems, auditing theory, financial
management and management services. Provided the accumulated
teaching experience on these subjects shall not be less than three (3)
school years.
 S2: A meaningful experience shall be considered as satisfactory
compliance with the requirements of Section 28 if it is earned in Public
Practice and shall include at least one year as audit assistant and at
least two years as auditor in charge of the audit engagement covering
full audit functions of significant clients.
a. True, True
b. False, False
c. True, False
d. False, False
18. When a CPA represents his/her employer before government
agencies on tax matters related to accounting, the CPA is engaged in
what sector?
a. Practice in government
b. Practice in commerce and industry
c. Practice in public accountancy
d. Practice in academe
19. Who is not permitted by law to practice accountancy?
a. A partnership of CPAs, with some non- CPA staff
b. A partnership of CPAs
c. A solo practitioner
d. A corporation whose stockholders are all CPAs
20. A CPA must earn at least 60 credit units for 3 years, with a
minimum of 15 credit units earned per year. Excess credit units shall
not be carried over to the next three- year period except:
a. Credit units earned for doctoral or masteral degrees
b. Credit units earned for authoring an article of national
significance
c. Credit units earned for servicing as a professorial chair
d. Credit units earned for an invention of significance of the
profession