AUDITING THEORY

AT.0101_R.A. 9298/Accountancy Law MAY 2020

LECTURE NOTES

Overview of RA 9298 and its IRR

The Republic Act No. 9298, including its implementing rules and regulations, consists of:
 five Articles (Rules);
 with 44 Sections;
 has three Annexes; and
 was enacted into law on May 13, 2004.

Rule I – Title, Declaration of Policy, Objective and Scope of Practice

Title – the “Philippine Accountancy Act of 2004”

Declaration of Policy

The State recognizes the importance of accountants in nation building and development. Hence, it shall develop and
nurture competent, virtuous, productive and well rounded professional accountants whose standards of practice and
service shall be excellent, qualitative, world class and globally competitive through:
 inviolable, honest, effective, and credible licensure examinations; and
 regulatory measures, programs and activities that foster their professional growth and development.

Objectives

This Act shall provide for and govern:

 The standardization and regulation of accounting education;
 The examination for registration of certified public accountants; and
 The supervision, control, and regulation of the practice of accountancy in the Philippines.

Scope of Practice

The practice of Accountancy (or “sector”) include:

a. Practice of Public Accountancy
b. Practice in Commerce and Industry
 Only for a CPA for business with paid-up capital of at least P5.0M and/or annual revenue of at least P10.0M for
functions involving supervision, preparation of financial statements and coordination with external audit.
 Not result to deprivation of incumbents
c. Practice in Education/Academe
 Dean or Chair of Accountancy shall be a CPA
d. Practice in the Government

Rule II – Professional Regulatory Board of Accountancy (PRBOA or the “Board”)

The PRBOA and its Composition

 Composed of a chairman and six members appointed by the President from a list of three recommendees for each
position and ranked by the Commission (PRC), from a list of five nominees for each position submitted by the
Accredited Professional Organization (APO).
 Elect a vice-chairman from among its members for a term of one year.
 The four sectors in the practice of accountancy shall as much as possible be equitably represented in the Board.

The APO shall submit its nominations with complete documentation to the Commission not later than 60 days prior to the
expiry of the term of an incumbent chairman or member with adequate documentation to show the qualification and
primary field of professional activity of the nominee

If the APO fails to submit its own nominee(s), the Commission in consultation with the Board shall submit to the
President a list of three nominees for each vacant position.

Qualifications of Members of the PRBOA

To become a member of the PRBOA, a person must meet the following qualifications:
1. A natural-born citizen and resident of the Philippines

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2. A duly registered CPA with at least 10 years of work experience in any scope of practice of accountancy
3. Of good moral character and must not have been convicted of crimes involving moral turpitude
4. Must not have any pecuniary interest, directly or indirectly, in any institution (SCU) conferring an academic degree
or CPA review schools
5. Must not be a Director or Officer of the APO at the time of his appointment

Term of Office

 Three years for the chairman and members.

 Any vacancy occurring within the term shall be filled up for the unexpired portion of the term only (and is not
considered a complete term).
 No person who has served two successive complete terms shall be eligible for reappointment until the lapse of one
year.
 No person shall serve in the Board for more than 12 years.

Compensation and Allowances of the Board

Comparable to that being received by the Chairman and members of existing regulatory boards under the Commission as
provided for in the General Appropriations Act.

Powers and Functions of the Board

The Board acts as a collegial body and shall exercise the following powers, functions and responsibilities:
a. To prescribe and adopt the rules and regulations necessary for carrying out the provisions of RA 9298;
b. To supervise the registration, licensure and practice of accountancy in the Philippines;
c. To administer oaths in connection with the administration of this Act;
d. To issue, suspend, revoke, or reinstate the Certificate of Registration for the practice of the accountancy profession;
e. To adopt an official seal of the Board;
f. To prescribe and/or adopt a Code of Ethics for the practice of accountancy;
g. To monitor the conditions affecting the practice of accountancy and adopt measures, including promulgation of
accounting and auditing standards, rules and regulations and best practices;
h. To conduct an oversight into the quality of audits of financial statements;
i. To investigate violations of this act and the rules and regulations;
j. To make such investigations to determine whether any person has violated RA 9298;
k. To issue a cease or desist order to any person, association, partnership or corporation engaged in violation of any
provision of RA No. 9298;
l. To punish for contempt of the Board, both direct and indirect, in accordance with the pertinent provisions of and
penalties prescribed by the Rules of Court;
m. To prepare, adopt, issue or amend the syllabi of the subjects for examinations;
n. To ensure that schools and other educational institutions comply with the policies, standards and requirements of the
course prescribed by CHED; and
o. To exercise such other powers deemed necessary.

Note that the Board’s decisions are subject to review and approval of the Commission, except for administrative cases.

Accounting and Auditing Standard Setting Council

The Commission upon the recommendation of the Board shall within 90 days from the effectivity of this IRR, create an
accounting standard setting body, the “FRSC”, and an auditing standard setting body, the “AASC.”

The Chairman and the members of the FRSC and AASC shall have a term of three years renewable for another term.

Any member of any existing accounting and auditing standard setting council shall not be disqualified from being
appointed.

FRSC AASC
Chairman (FRSC: Any sector; AASC: Public Accountancy)
1 1
Board of Accountancy 1 1
Securities and Exchange Commission 1 1
Bangko Sentral ng Pilipinas 1 1
Commission on Audit 1 1
Bureau of Internal Revenue 1
A major organization composed of preparers and users of financial statements (FINEX) 1
An association or organization of CPAs in active public practice of accountancy 1
APO (PICPA):
Public Practice (AASC: Small, medium & big prac.) 2 6
Commerce and Industry 2 1
Academe/Education 2 1
Government 2 1
Total 15 15

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Education Technical Council (ETC)

The Commission, upon the recommendation of the Board, shall within 60 days from the effectivity of this IRR create an
ETC.

The term of office of the chairman and members of ETC is three years, renewable for another term.

ETC
Chairman 1
Board of Accountancy 1
APO (PICPA):
Public Practice 1
Commerce and Industry 1
Academe/Education (Public & Private) 2
Government 1
Total 7

Administrative Supervisions of the Board, Custodian of its Records, Secretariat and Support Services

The Board shall be under the administrative supervision of the Commission.

All records of the Board, including applications for examination, examination questions , answer sheets, and other
records and documents pertaining to the CPA licensure examinations, and administrative and other investigative cases
conducted by the Board shall be under the custody of the Commission.

The Commission shall designate the Secretary of the Board and shall provide the secretariat and other support services
to implement the provisions of RA No. 9298.

Grounds for Suspension or Removal of Members of the Board

The President, upon the recommendation of the Commission, after due process, may suspend or remove any member on
the following grounds:
 Neglect of duty or incompetence;
 Violation or tolerance of any violation of this Act and its IRR or the CPA’s Code of Ethics and the professional
standards of practice for CPAs;
 Final judgment of crimes involving moral turpitude; and
 Manipulation or rigging of the CPA’s licensure examination results, disclosure of secret and confidential information in
the examination questions prior to the conduct of the said examination or tampering of grades.

Annual Report

The Board shall, at the close of each calendar year, submit an annual report to the President of the Philippines through
the Commission giving a detailed account of its proceedings and accomplishments during the year and making
recommendations for the adoption of measures that will upgrade and improve the conditions affecting the practice of
accountancy in the Philippines.

Rule III - Examination, Registration and Licensure

The Certified Public Accountant Examinations

All applicants for registration for the practice of accountancy shall be required to undergo a licensure examination to be
given by the Board in such places and dates as the Commission may designate.
The places/venues and dates of examinations shall be included in the Schedule of Professional Licensure Examinations for
the year issued by the Commission.

Qualifications of Applicants for Examinations

Any person applying for examination shall establish the following requisites to the satisfaction of the Board that he/she:
a. Filipino citizen
b. Of good moral character
c. Holder of the degree of BSA conferred by a school, college, academy or institute duly recognized and/or accredited by
the CHED or other authorized government offices
d. Has not been convicted of any criminal offense involving moral turpitude

Scope of Examination

The licensure examination for CPAs shall cover the following subjects:
a. Financial Accounting and Reporting (FAR)
b. Management Services
c. Advanced FAR
d. Taxation
e. Regulatory framework for Business Transactions
f. Auditing

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The Board, subject to the approval of the Commission, may change any of the subjects and their syllabi, and add new
ones, not be more often than every three years.

Rating in the Licensure Examination

 General average of 75%, with no grades lower than 65% in any subject.
 If a candidate obtains 75% and above in at least a majority of subjects, he/she shall receive a conditional credit for
the subjects passed (remaining subjects to be taken within two years).
 If the candidate fails to obtain at least a general average of 75% and a rating of at least 65% in each of the subjects
reexamined, he/she shall be considered as failed in the entire examination.

Report of Ratings

The Board shall submit to the Commission the ratings obtained by each candidate within ten (10) calendar days after the
examination, unless extended for just cause.

Upon the release of the results of the examination, the Commission shall send by mailing the rating received by each
examinee at his/her given address using the mailing envelope submitted during the examination. Provided, that the
report of rating may be distributed to the successful examinees during their mass oath taking as new registered CPAs.

Failing Candidates to Take Refresher Course

Any candidate who fails in two complete CPA Board Examinations shall be disqualified from taking another set of
examinations unless he/she submits evidence to the satisfaction of the Board that he/she enrolled in and completed at
least 24 units of subjects given in the licensure examination.

The examination in which the candidate was conditioned together with the removal examination on the subject in which
he/she failed shall be counted as one complete examination.

Oath

All successful candidates in the examination shall be required to take an oath of profession before any member of the
Board or before any government official authorized by the Commission or any person authorized by law to administer
oaths upon presentation of proof of his/her qualification, prior to entering upon the practice of the profession.

An oath shall also be required for CPAs admitted in the practice of accountancy without examination under reciprocity or
other international agreements.

Issuance of Certificate of Registration (CoR) and Professional Identification Card (PIC)

A CoR shall be issued to examinees who pass the licensure examination, or are admitted without examination under
reciprocity subject to payment of fees prescribed by the Commission.

The CoR shall bear the signature of the Chairperson of the Commission and the Chairman and Members of the Board,
stamped with the official seal of the Commission and of the Board.

A PIC bearing the registration number, date of issuance, expiry date, duly signed by the chairperson of the Commission.
Provided, that the registrant has paid the prescribed fee for the annual registration (reissuance or renewal) for three
years.

Roster of Certified Public Accountants

A roster showing the names and place of business of all registered CPAs shall be prepared and updated by the Board, and
copies thereof shall be made available to any party as may be deemed necessary.

The preparation of this roster may be delegate to the APO, and the Board and/or the Commission may adopt the APO’s
report as it may deem fit;

Posting of the roster at the internet shall be deemed compliance with this requirement.

Indication of CoR, PIC and Professional Tax Receipt

The CPA shall be required to indicate the numbers of his/her CoR and PIC with its date of issuance and the duration of
validity, including the PTR No. on the documents he/she signs, uses or issues in connection with the practice of his/her
profession.

Refusal to Issue CoR and PIC

The Board shall not register and issue a CoR and PIC to any successful examinee (with due process):
 convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude; or
 guilty of immoral and dishonorable conduct; or of unsound mind; or
 has falsely sworn or misrepresented himself/herself in his/her application for examination.

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Registration shall not be refused and a name shall not be removed from the roster of CPAs on conviction for a political
offense or for an offense which shall not disqualify a person from practicing accountancy.
Suspension and Revocation of CoR and PIC and Cancellation of Special Permit

The Board shall have the power to suspend or revoke the practitioner’s CoR and PIC or suspend him/her from the
practice of his/her profession or cancel his/her special permit for any of the causes or grounds
 convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude; or
 guilty of immoral and dishonorable conduct; or of unsound mind; or
 has falsely sworn or misrepresented himself/herself in his/her application for examination; or
 unprofessional or unethical conduct, malpractice, violation of any of the provisions of RA No. 9298 , and its IRR, the
CPA’s Code of Ethics and professional standards of practice for CPAs.

Suspension/revocation of the CoR and PIC shall not prejudice prosecution for criminal liabilities and meted the penalties
under the Revised Penal Code.

Reinstatement, Reissuance and Replacement of Revoked or Lost Certificates

The Board may, after the expiration of two years from the date of revocation of a CoR and upon application, and after
being convinced of applicant’s remorse and rehabilitation, reinstate the validity of a revoked certificate of registration and
may exempt the applicant from taking another examination.

A new CoR to replace lost, destroyed, or mutilated Certificate may be issued, subject to the rules promulgated by the
Board and the Commission, upon payment of the required fees.

Rule IV – Practice of Accountancy

Prohibition in the Practice of Accountancy

No person shall practice accountancy in this country, or use the title “Certified Public Accountant”, or use the
abbreviated title “CPA” or display or use any title, sign, card, advertisement, or other device to indicate such person
practices or offers to practice accountancy, or is a certified public accountant, unless such person shall have received
from the Board a CoR and be issued a PIC or a valid temporary/special permit duly issued to him/her by the Board and
the Commission.

Vested Rights: CPAs Registered When this Law is Passed

All CPAs registered at the time this law takes effect shall automatically be registered under the provisions hereof, subject
however, to the provisions herein set forth as to future requirements.

Certificates of Registration held by such persons in good standing shall have the same force and effect as though issued
after the passage of this Act.

Limitation of the Practice of Public Accountancy

Single practitioners and partners of partnership organized for the practice of public accountancy shall be registered CPAs
in the Philippines;

Certificate of Accreditation shall be issued to CPAs in public practice after a minimum of three years meaningful
experience;

Partnerships may be carried as a general partnership (GP) or a limited liability partnership (LLP).

The SEC shall not register any corporation organized for the practice of public accountancy.

Meaningful Experience
Commerce Significant involvement in general accounting, budgeting, tax administration, internal auditing,
and industry liaison with external auditors, representing his/her employer before gov’t agencies on tax and
matters related to accounting or any other related functions; or

Academe/ teaching for at least three trimesters or two semesters accounting related subjects. The accumulated
Education teaching experience on these subjects shall not be less than three school years; or
Government significant involvement in general accounting, budgeting, tax administration, internal auditing, liaison
with the Commission on Audit or any other related functions
Public practice At least one year as audit assistant and at least two years as auditor in charge of audit engagement
covering full audit functions of significant clients.

Ownership of Working Papers

Confidential and privileged and remain the property of such CPA in the absence of a written agreement between the CPA
and the client, to the contrary unless such documents are required to be produced through subpoena issued by any
court, tribunal, or government regulatory or administrative body in accordance with Philippine laws.

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Accredited Professional Organization

 Known as the PICPA

 Registered with the SEC as a non-profit corporation and recognized by the Board and the Commission.
 Recognized by the Commission as the APO on 10/2/1975 per Acc. No. 15. Certificate of Accreditation (CoA) once
every three years.
 With 15 national directors apportioned according to sectors in the four geographic areas (eg. NCR, Luzon, Visayas
and Mindanao) based on the ratio of latest available number of members in good standing from those areas;

The PICPA’s CoA shall be cancelled or suspended by the Commission upon recommendation by the Board after due
process if:
 It has ceased to possess any of the qualifications for accreditation.
 It no longer serves the best interest of the CPAs.
 It did not achieve its plan to enlist into active membership within three years, majority of the CPAs in the practice of
accountancy.
 It has committed acts inimical to its members and to the profession.
 It has not renewed its CoA after a lapse of an unreasonable period.
 It has not submitted the required audited FSs.

Accreditation to Practice Public Accountancy

Within 90 days from effective date of IRR, Individual CPAs, firms and partnerships of CPAs engaged in the practice of
public accountancy, including the partners and staff members thereof, shall register with the Commission and the Board.

The registration shall be valid for a period of three years and may be renewed every three years on or before September
30 on the year of expiry. The registration of applicants approved during any month of the year shall expire on December
31 on the third year following its approval.

Name of the Individual CPA, Firm or Partnership

Type Basis Example

Individual CPA BOA and PRC Registered Name “Juan de la Cruz, CPA”
Firms DTI Registered Name “Juan de la Cruz and Associates”
Partnerships SEC Registered Name “Cruz, Isidro, Martin, and Company"

Not allowed firm names include:

 fictitious name;
 indicates specialization; or
 is misleading as to the type of organization (proprietorship or partnership).

A partner surviving the death or withdrawal of all the other partners in a Partnership may continue to practice under the
Partnership name for a period of not more than two years after becoming a sole proprietor.

Quality Review Committee

 Conducts quality review on applicants for registration to practice public accountancy

 Appointed by the Commission upon the recommendation of the Board in coordination with the APO
 A term of three years renewable for another term
 Recommends to the Board the revocation of the Certificate of Registration and the professional identification card

QRC Composition
Chairman 1
Board of Accountancy 1
APO (PICPA):
Public Practice 2
Commerce and Industry 1
Academe/Education 1
Government 1
Total 7

Continuing Professional Education (CPE) Program

Continuing professional education (CPE) refers to the inculcation, assimilation and acquisition of knowledge, skills,
proficiency and ethical and moral values, after the initial registration of a professional that raise and enhance the
professional’s technical skills and competence.

The total CPE credit units for registered accounting professionals shall be 60 credit units for three years, provided that a
minimum of 15 credit units shall be earned in each year.

Any excess credit units in one year may be carried over to the succeeding years within the three-year period. Excess
credit units earned shall not be carried over to the next three-year period except credit units earned for doctoral and
master’s degrees.

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The Board, upon approval by the PRC, shall create a Council within thirty (30) days from the effectivity of this resolution.

PRC CPE Council

Chairman (from BOA) 1
1st Member (President or Officer of PICPA) 1
2nd Member (Academician) 1
Total 3

Common Sources of CPE Credit Units

Seminar/Convention:
Participant 1 CU per hour
Resource speaker 3 CU per hour
Panelist/reactor 2 CU per hour
Facilitator/moderator 2 CU per hour
Master’s Degree 1 CU per academic unit; additional 30 CU upon completion
Doctoral Degree 2 CU per academic unit; additional 45 CU upon completion
Inventions 10-30 CU per invention

Note: refer to Annex C of IRR of RA 9298 for the complete list of sources of CPE credit units.

Exemption from CPE Requirement

a. Permanent Exemption
 Upon reaching the age of 65 years old.
b. Temporary Exemption
 Working or practicing his/her profession or furthering his/her studies abroad shall be temporarily exempted
during the period of his/her stay abroad, provided that he/she has been out of the country for at least two years
immediately prior to the date of renewal.

Sanctions applicable to CPAs

Unless otherwise exempted, registered CPAs in the practice of accountancy who have not completed the CPE
requirements provided herein shall not be allowed to renew their professional licenses.

Those who failed to renew their professional licenses for a period of five continuous years from initial registration, or from
last renewal date shall be declared delinquent and shall, after due notice, through the website and publication in the
newsletters of PICPA or any newspaper of general circulation, be dropped from the roster of CPAs.

Seal and Use of Seal

All registered CPAs shall obtain and use a seal of a design prescribed by the Board bearing the registrant’s name,
registration number and title.

The auditor’s reports shall be stamped with said seal, indicating therein his/her current Professional Tax Receipt (PTR)
number, date/place of payment when filed with government authorities or when used professionally.

Circular in form with a smaller circle within and in the upper portion of the space between the circles shall be engraved
the name of the individual CPA, firm or partnership as the case maybe, the lower portion thereof shall be engraved the
CPA Registration Number of the individual CPA, proprietor of the firm and the signing partner of the partnership and in
the middle of the smaller circle shall be engraved the letters “CPA”.

Affixing the CPA’s seal and signature is an indication of compliance by the CPA of the requisite accounting and auditing
standards and rules.

Foreign Reciprocity

Subjects or citizens of foreign countries may be allowed to practice Accountancy in the Philippines in accordance with the
provisions of existing laws, international treaty obligations including mutual recognition agreements entered into by the
Philippine government with other countries.

Provided, he files an application and by submitting the necessary documents provided for in this sections.

Coverage of Temporary/Special Permits

May be issued by the Board subject to the approval of the Commission to the following persons:
 A foreign CPA called for consultation or for a specific purpose essential for the development of the country. His/her
practice shall be limited only for the particular work that he/she is being engaged and there is no Filipino CPA
qualified;
 A foreign CPA engaged as professor, lecturer or critic in fields essential to accountancy education and is confined to
teaching only; and

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 A foreign CPA who is an internationally recognized expert or with specialization in any branch of accountancy and
his/her service is essential for the advancement of accountancy.

Rule V – Penal and Final Provisions

Penal Provision

Any person who shall violate any of the provisions of RA No. 9298 or this IRR as promulgated by the Board subject to the
approval of the Commission, shall, upon conviction, be punished by:
 a fine of not less than P50,000.00 or
 by imprisonment for a period not exceeding two years or
 both.

Implementing Rules and Regulations

Within ninety (90) days after the effectivity of RA No. 9298, the Board, subject to the approval of the Commission and in
coordination with the APO, shall adopt and promulgate such rules and regulations to carry out the provisions of RA No.
9298 and which shall be effective fifteen (15) days following their publication in the Official Gazette or in any major daily
newspaper of general circulation.

Interpretation of RA No. 9298 and its IRR

Nothing in the RA No. 9298 and this Implementing Rules and Regulations shall be construed to effect or prevent the
practice of any other legally recognized profession.

Enforcement of RA No. 9298 and its IRR

Primary duty of the Commission and the Board to effectively enforce RA No. 9298 and its IRR.

All duly constituted law enforcement agencies and officers of the government or any political subdivisions shall render
assistance in enforcing the provisions of RA No. 9298 and this IRR and to prosecute any person in violation.

The Secretary of Justice or his duly designated representative shall act as legal adviser to the Commission and the Board
and shall render legal assistance as may be necessary in carrying out the provisions of RA No. 9298 and this IRR.

Funding Provision

The chairperson of the Commission shall immediately include in the Commission’s programs the implementation of RA
No. 9298 and this IRR the funding of which shall be included in the annual General Appropriations Act. Provided, That
the amount necessary to carry out the initial implementation of RA No. 9298 shall be charged against the current year’s
appropriation of the Commission. Thereafter, sums as maybe necessary for the continued implementation of RA No. 9298
shall be included in the succeeding General Appropriations Act (GAA).

Transitory Provision

The incumbent chairman and members of the Board shall continue to serve in their respective positions without the need
of new appointments, not be disqualified for appointment.

All graduates with a Bachelor’s Degree, major in Accounting shall be allowed to take the CPA Licensure Examination
within two (2) years from the effectivity of RA No. 9298 (or until May, 2006).

Separability Clause

If any clause, provision, paragraph or part of RA No. 9298 and this Implementing Rules and Regulations shall be
declared unconstitutional or invalid, such judgment shall not affect, invalidate or impair any other part hereof, but shall
be merely confined to the clause, provision, paragraph or part directly involved in the controversy in which such
judgment has been rendered.

Repealing Clause

Any rule and regulation or resolution or part/s thereof inconsistent with the provisions of this Implementing Rules and
Regulations are hereby repealed or modified accordingly.

Effectivity

RA 9298 shall take effect after fifteen (15) days following its publication in the Official Gazette or in any major daily
newspaper of general circulation.

IRR was promulgated in September 2004 (within 90 days from the effective date of RA 9298) and took effect after fifteen
(15) days following its publication in the Official Gazette or in any major daily newspaper of general circulation.

- done -

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 MULTIPLE CHOICE

SECTIONS APPLICABLE TO ALL CPAs

1. Republic Act No. 9298 is also known as
a. Accountancy Law of 2004
b. Accreditation of Accounting Teachers
c. Philippine Accountancy Act of 2005
d. Philippine Accountancy Act of 2004

2. Under Section 2 of RA 9298, the State recognizes the importance of accountants in nation building and development.
Hence, it shall develop and nurture competent, virtuous, productive and well rounded professional accountants whose
standards of practice and service shall be excellent, qualitative, world class and globally competitive through
I. Inviolable, honest, effective and credible licensure examinations
II. Regulatory measures, programs and activities that foster their professional growth and development
a. I only c. I and II
b. II only d. Neither I nor II

3. The objectives of the Philippine Accountancy Act of 2004 are the following, except:
a. Standardization and regulation of accounting education.
b. Integration of accountancy profession
c. Examination for registration of certified public accountants.
d. Supervision, control and regulation of the practice of accountancy.

4. The following statements relate to the Board of Accountancy and its composition. Which statement is incorrect?
a. The Board consists of a Chairman and six members
b. The Chairman and members are appointed by PRC upon recommendation of APO
c. The Board shall elect a vice-chairman from among its members.
d. The four(4) sectors in the practice of accountancy shall as much as possible be equitably represented in the
Board

5. The APO shall submit its nominations with complete documentation to the Commission not later than _____ prior to
the expiry of the term of an incumbent chairman or member.
a. 30 days c. 90 days
b. 60 days d. 120 days

6. Which of the following is incorrect regarding the qualifications of members of the Board of Accountancy?
a. Must be a natural-born citizen and resident of the Philippines
b. Must be a duly registered Certified Public Accountant with at least fifteen (15) years of work experience in any
scope of practice of accountancy
c. Must be of good moral character and must not have been convicted of crimes involving moral turpitude
d. Must not have any pecuniary interest, directly or indirectly, in any school, college, university where review
classes in preparation for the licensure examination are being offered or conducted

7. Which of the following statements is incorrect according to Section 7 of the Philippine Accountancy Act of 2004 (RA
9298)?
a. The Chairman and the members of the Professional Regulatory Board of Accountancy (PRBOA) shall hold office
for a term of three (3) years.
b. No person who has served two(2) successive terms shall be eligible for reappointment until the lapse of one (1)
year.
c. Any vacancy occurring within the term of a member shall be filled up for the unexpired portion of the term only.
d. Appointment to fill up an unexpired term is considered as a complete term.

8. No person shall serve the Professional Regulatory Board of Accountancy for more than
a. 3 years c. 9 years
b. 6 years d. 12 years

9. The following are the powers, functions and responsibilities of the Board of Accountancy (also known as the Board)
a. To prescribe and/or adopt a Code of Ethics for the practice of accountancy
b. To prescribe and adopt the rules and regulations necessary for carrying out the provisions of RA 9298
c. To prepare, adopt, issue or amend the syllabi of the subjects for examinations in consultation with the academe,
determine and prepare questions for the licensure examination which shall strictly be within the scope of the
syllabi of the subjects for examinations as well as administer, correct and release the results of the licensure
examinations
d. All of the above

10. The Board shall exercise the following specific powers, functions and responsibilities:
a. b. c. d.
To supervise the registration, licensure and practice of accountancy Yes Yes Yes Yes
To issue, suspend, revoke, or reinstate the certificate of registration for the practice of
accountancy Yes No Yes Yes
To monitor the conditions affecting the practice of accountancy Yes Yes No Yes
To conduct an oversight into the quality of audits of financial statements Yes No Yes No
To ensure that all HEIs including review centers comply with the requirements of CHED or Yes Yes No Yes
other authorized

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 government offices
11. The following were created to assist the BOA in carrying out its powers and functions, except
a. Auditing and Assurance Standards Council
b. Financial Reporting Standards Council
c. Education Technical Council
d. Accredited National Professional Organization of CPAs

12. The creation of FRSC and AASC is intended to assist the BOA in carrying out its function to
a. To monitor the conditions affecting the practice of accountancy and adopt such measures, rules and regulations
and best practices as may be deemed proper for the enhancement and maintenance of high professional, ethical,
accounting and auditing standards.
b. To supervise the registration, licensure and practice of accountancy in the Philippines.
c. To prescribe and adopt the rules and regulations necessary for carrying out the provisions of RA 9298.
d. To prepare, adopt, issue or amend the syllabi of the subjects for examinations.

13. Applications for examination, examination questions, answer sheets, and other records and documents pertaining to
the CPA licensure examinations shall be under the custody of the
a. PRC c. PICPA
b. BOA d. National Library

14. Which of the following is not a ground for suspension or removal of members of BOA?
a. Neglect of duty or incompetence
b. Intolerance of any violation of RA 9298
c. Final judgment of crimes, involving moral turpitude
d. Rigging of the certified public accountant’s licensure examination results

15. Which of the following is not a requisite in applying for the CPA licensure examinations?
a. Natural-born citizen of the Philippines.
b. Good moral character.
c. Holder of the degree of Bachelor of Science in Accountancy.
d. Has not been convicted of any criminal offense involving moral turpitude.

16. The Board, subject to the approval of the Commission, may revise or exclude any of the subjects and their syllabi,
and add new ones as the need arises. Provided that the change shall not be more often than every
a. 2 years c. 4 years
b. 3 years d. 5 years

17. The following statements relate to CPA examination ratings. Which statement is incorrect?
a. To pass the examination, candidates should obtain a general weighted average of 75% and above, with no rating
in any subject less than 65%.
b. Candidates who obtain a rating of 75% and above in at least four subjects shall receive a conditional credit for
the subjects passed.
c. Conditioned candidates shall take an examination in the remaining subject(s) within three years from the
preceding examination.
d. Candidates who fail in two (2) complete CPA examinations may be allowed to take examinations a third time
provided he or she will comply with Sec. 18 of RA 9298.

18. Any candidate who fails in two (2) complete Certified Public Accountant Board Examinations shall be disqualified from
taking another set of examinations unless he/she submits evidence to the satisfaction of the Board that he/she
enrolled in and completed at least ____ of subject given in the licensure examination.
a. 12 units c. 24 units
b. 21 units d. 60 units

19. The Board shall submit to the Commission the ratings obtained by each candidate within ____ calendar days after the
examination, unless extended for just cause.
a. 10 c. 20
b. 15 d. 30

20. According to Section 20 of RA 9298, a Professional Identification Card bearing the registration number, date of
issuance, expiry date, duly signed by the chairperson of the PRC, shall likewise be issued to every registrant
renewable every
a. One (1) year c. Three (3) years
b. Two (2) years d. Five (5) years

21. The BOA shall refuse the registration of any person who successfully passed the CPA examinations if
a. Convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude
b. Having an unsound mind
c. Guilty of immoral and dishonorable conduct
d. All of the above

22. No person shall practice accountancy in the Philippines or use the abbreviated title “CPA” unless such person shall
received from the Board a Certificate of Registration and be issued a professional identification card or a valid
temporary/special permit duly issued to him/her by the Board and the Commission

Page 10 of 16 AT.0101
 A person who is not a citizen of the Philippines shall not be allowed to practice accountancy in the Philippines unless
he/she can prove, in the manner provided by the Rules of Court that, by specific provisions of law, the country of
which he/she is a citizen, subject or national admits citizens of the Philippines to the practice of the same profession
without restriction.
a. True, False c. False, False
b. True, True d. False, True

23. The Board shall have the power, upon due notice and hearing, to suspend or revoke the practitioner’s certificate of
registration and professional identification card or suspend him/her from the practice of his/her profession or cancel
his/her special permit for any of the causes or grounds
I. Convicted by a court of competent jurisdiction of a criminal offense involving moral turpitude
II. Having an unsound mind
III. Guilty of immoral and dishonorable conduct
IV. Unprofessional or unethical conduct, malpractice
V. Violation of any of the provisions of this Act, and its implementing rules and regulations, the Certified Public
Accountant‘s Code of Ethics and the technical and professional standards of practice for certified public
accountants.
a. I, II and III only
b. I, II, IV and V only
c. I, II, III and IV only
d. I, II, III, IV and V

24. A CPA whose certificate have been revoked may be reinstated if he has acted in exemplary manner and has not
committed any illegal, immoral or dishonorable conduct for a period not less than
a. One year
b. Two years
c. Five years
d. The period depends on the seriousness of his offense

25. The Continuing Professional Education (CPE) program mentioned in the IRR shall have the following objectives,
except:
a. To promote the general welfare of the public
b. To provide and ensure the continuous education of accountancy students with the latest trends in the profession
brought about by modernization and scientific and technological advancement
c. To raise and maintain the professionals capability for delivering professional services
d. To attain and maintain the highest standards and quality in the practice of the profession

26. Which statement is(are) correct regarding CPE requirements for renewal of professional license?
I. The total CPE credit units required for CPAs shall be sixty (60) units for three (3) years, provided that a minimum
of fifteen (15) credit units shall be earned in each year.
II. Any excess credit units in one year may be carried over to the succeeding years within the three-year period.
III. Excess credit units earned shall not be carried over to the next three-year period without exception.
IV. 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 has been out of the country for at least two years
immediately prior to the date of renewal.
V. A registered professional shall be permanently exempted from CPE requirements upon reaching the age of 60
years old.
a. I, II and III only
b. I and IV only
c. I, II and IV only
d. I, II, and V only

27. How many credit units per hour is (are) earned by a CPA who serves as a resource speaker at a CPE seminar?
a. 1 CU per hour
b. 5 CU per hour
c. 3 CU per hour
d. 2 CU per hour

28. 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 servicing as a professorial chair
b. credit units earned for authoring an article of national significance
c. credit units earned for an invention of significance of the profession
d. credit units earned for doctoral or masteral degrees

29. The PRC-CPE Council shall be composed of a chairperson and three (3) members.

Those who failed to renew professional licenses for a period of five (5) continuous years from initial registration, or
from last renewal shall be declared delinquent.
a. True, False c. False, False
b. True, True d. False. True

Page 11 of 16 AT.0101
30. Special/temporary permit may be issued by the Board of Accountancy subject to the approval of PRC and payment of
the fees the latter has prescribed and charged thereof to the following persons
a. A foreign CPA called for consultation or for a specific purpose which, in the judgment of BOA is essential for the
development of the country
b. A foreign CPA engaged as professor, lecturer or critic in fields essential to the accountancy education in the
Philippines and his/her engagement is confined to teaching only.
c. A foreign CPA who is an internationally recognized expert or with specialization in any branch of accountancy and
his/her service is essential for the advancement of accountancy in the Philippines.
d. All of the above

31. According to the Philippine Accountancy Act of 2004 (RA 9298), any person who shall violate RA 9298 or any of its
implementing rules and regulations as promulgated by the Board of Accountancy subject to the approval of the PRC,
shall, upon conviction, be punished by a fine
a. not less than fifty thousand pesos (P50,000), or by imprisonment for a period not exceeding three (3) years, or
both
b. not less than one hundred thousand pesos (P100,000), or by imprisonment for a period not exceeding two (2)
years, or both
c. not less than fifty thousand pesos (P50,000), or by imprisonment for a period not exceeding twoh (2) years, or
both
d. not less than one hundred fifty thousand pesos (P150,000), or by imprisonment for a period not exceeding three
(3) years, or both

32. Within __(I)___ days after the effectivity of RA 9298, the Board subject to the approval of PRC and in coordination
with APO, shall adopt and promulgate such rules and regulations to carry out the provisions of RA 9298 and which
shall take effect __(II)____ days following its publication in the Official Gazette or in any major daily newspapers of
general circulation?
I II
a. 90 30
b. 60 15
c. 90 15
d. 30 45

33. The primary duty to enforce the provisions of RA 9298 and its IRR rests with
a. The PRC c. The PRC and BOA
b. The BOA d. The AASC

SECTIONS APPLICABLE TO CPAs IN COMMERCE AND INDUSTRY

34. When involved in decision making requiring professional knowledge in the science of accounting, as well as the
accounting aspects of finance and taxation or when he/she represents his/her employer before government agencies on
tax and other matters relating to accounting
a. Practice in Commerce and Industry
b. Practice in Education
c. Practice in Government
d. Practice of Public Accountancy

35. Any position in any business or company in the private sector which requires supervising the recording of financial
transactions, preparation of financial statements, coordinating with the external auditors for the audit of such
financial statements and other related functions shall be occupied only by a duly registered CPA. Provided
I. That the business or company where the above position exists has a paid-up capital of at least P5,000,000 and/or
annual revenue of at least P10,000,000
II. The above provision shall apply only to persons to be employed after the effectivity of the Implementing Rules
and Regulations of RA 9298
III. The above provision shall not result to deprivation of the employment of incumbents to the position
a. I, II and III
b. I and II
c. II and III
d. I and III

SECTIONS APPLICABLE TO CPAs IN EDUCATION/ACADEME

36. 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.
a. Practice in Commerce and Industry
b. Practice in Education
c. Practice in Government
d. Practice of Public Accountancy

37. A body that is created to assist the BOA in the attainment of the objective of continuously upgrading the accountancy
education in the Philippines to make the Filipino CPAs globally competitive
a. PICPA
b. Education Technical Council (ETC)
c. Quality Assurance Review Department (QARD)
d. Auditing and Assurance Standards Council (AASC)

Page 12 of 16 AT.0101
38. ETC is composed of
a. 6 members including the chairman
b. 7 members including the chairman
c. 10 members including the chairman
d. 15 members including the chairman

SECTION APPLICABLE TO CPAs IN GOVERNMENT

39. When he/she is appointed in an accounting professional group in government or in a government-owned and/or
controlled corporation, including those performing proprietary functions, where decision-making requires professional
knowledge in the science of accounting
a. Practice in Commerce and Industry
b. Practice in Education
c. Practice in Government
d. Practice of Public Accountancy

SECTIONS APPLICABLE TO CPAs IN PUBLIC PRACTICE

40. Practice of Public Accountancy shall constitute in a person:
a. When involved in decision making requiring professional knowledge in the science of accounting, as well as the
accounting aspects of finance and taxation or when he/she represents his/her employer before government
agencies on tax and other matters relating to accounting.
b. When he/she is appointed in an accounting professional group in government or in a government-owned and/or
controlled corporation, including those performing proprietary functions, where decision-making requires
professional knowledge in the science of accounting
c. 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.
d. When a person is skilled in the knowledge, science and practice of accounting and as a qualified person to render
professional services as a CPA

41. Who is not permitted by law to practice public accountancy?

a. A corporation whose stockholders are all CPAs
b. A partnership of CPAs
c. A solo practitioner
d. A partnership of CPAs, with some non-CPA staff

42. All registered CPAs whose names appear in the roster of CPAs shall be united and integrated through their
membership in a one and only registered and accredited national professional organization of registered and licensed
CPAs, which shall be registered with the SEC as a nonprofit corporation and recognized by the Board subject to the
approval of the commission.

CPAs, firms and partnerships of CPAs engaged in the practice of public accountancy, including partners and staff
members thereof, shall register with the Commission and the Board.
a. True, False c. False, True
b. False, False d. True, True

43. A CPA shall not practice under a firm name that includes or indicates the following except
a. Fictitious name
b. Specialization
c. Misleading as to the type of the organization
d. Name(s) of past partner(s) in the firm name of successor partnership

44. Under the IRR of RA 9298, if a partner in a two-member partnership dies, the surviving partner may continue to
practice 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. For a period of time not to exceed two years.
c. Indefinitely.
d. Until the partnership payout to the deceased partner’s estate is terminated.

45. 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 subjects
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.
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, False c. False, False
b. False, True d. True, True

46. 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 registration of AB and Co., CPAs was approved on August 30, 2011, it shall
file for renewal on or before
a. September 30, 2013 c. December 31, 2013
b. September 30, 2014 d. August 30, 2014

Page 13 of 16 AT.0101
47. 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 registration of AB and Co., CPAs was approved on August 30, 2011, the
registration will expire on
a. Sept. 30, 2013 c. Dec. 31, 2013
b. Dec. 31, 2014 d. Aug. 30, 2014

48. 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, 2011, it shall file for renewal
on or before
a. September 30, 2013 c. December 31, 2013
b. September 30, 2014 d. August 30, 2014
49. The “CPA Registration Number” shall be engraved in what part of the CPA’s seal?
a. Upper portion of the space between the bigger and smaller circle.
b. Lower portion of the space between the bigger and smaller circle.
c. Left and right portion of the space between the bigger and smaller circle and in the middle of the smaller circle.
d. Middle of the smaller circle.

50. Affixing the CPA’s seal and signature is an indication of CPA’s

a. Compliance with the requisite accounting and auditing standards and rules
b. Independence with respect to the entity being audited.
c. Basic competence at the time of signing the document.
d. Collection of the audit fees from the client.

- now do the DIY drill -

DO-IT-YOURSELF (DIY) DRILL

1. Which of the following is required for a partnership for public accountancy practice?
a. At least one of the partners must be a CPA.
b. All partners must be PICPA members.
c. All partners must be CPAs.
d. Firm name must contain names of partners only.

2. The following should be occupied only by a duly registered CPA, except

a. Any position in any business or company in the private sector which requires supervising the recording of
financial transactions.
b. Any position in any business or company in the private sector which requires preparation of financial statements.
c. Any position in any business or company in the private sector which requires coordinating with the internal
auditors for the audit of financial statements.
d. The position of the dean that supervises the BSA program of an educational institution.

3. The Board of Accountancy is responsible for the preparation of the contents of the CPA Licensure Examination.

The Board of Accountancy is responsible for investigating violations of RA 9298

a. False, True c. True, False
b. True, True d. False, False

4. A member of the Board of Accountancy should not be connected to any accounting firm.

A member of the Board of Accountancy should not be connected to any CPA Review school or university offering
courses leading to admission for the CPA Board Examinations, whether directly or indirectly.
a. False, False c. True, True
b. False, True d. True, False

5. The following statements relate to the Board of Accountancy. Which statement is incorrect?
a. The Board consists of a Chairman and six members
b. The Chairman and members are appointed by the President of the Philippines upon recommendation of PRC
c. No person shall be appointed a member of the Board unless he is a natural-born citizen of the Philippines, a duly
registered CPA and has been in the practice of accountancy for at least ten years
d. The Professional Regulation Commission may remove from the Board any member whose certificate to practice
has been removed or suspended

6. The following statements relate to CPA examinations. Which of the following is correct?
a. To pass the examination, candidates should obtain a general weighted average of at least 75%, with no grade in
any subject lower than 60%.
b. A person may be admitted in the practice of accountancy without examination.
c. Candidates who failed in two complete examinations shall be disqualified from taking another set of examinations
unless he/she enrolled in and completed at least 21 units of subjects given in the licensure examinations.
d. Conditioned candidates shall take an examination in the remaining subjects within three years from the preceding
examination.

7. The following statements relate to CPA examination ratings. Which statement is correct?

Page 14 of 16 AT.0101
 a. To pass the examination, candidates should obtain a general weighted average of 75% and above, with no rating
in any subject less than 65%.
b. Candidates who obtain a rating of 75% and above in at least three subjects shall receive a conditional credit for
the subjects passed.
c. Conditioned candidates shall take an examination in the remaining subject within three years from the preceding
examination.
d. Candidates who fail in four (4) complete CPA examinations will not be allowed to take examinations a fifth time.

8. A CPA certificate is evidence of

a. Independence as a professional.
b. Basic competence at the time of certification.
c. Membership in the accredited association.
d. Completion of continuing professional education program.

9. Are the following CPAs required to comply with the requirements on continuing professional education?
a b c d
 CPAs in Public Yes Yes Yes Yes
Accountancy
 CPAs in Commerce and Yes Yes No No
Industry
 CPAs in Yes Yes Yes No
Education/Academe
 CPAs in Government Yes No Yes No

10. Which statement is incorrect regarding CPE requirements for renewal of professional license?
a. The total CPE credit units required for CPAs shall be sixty (60) units for three (3) years, provided that a minimum
of fifteen (15) credit units shall be earned in each year.
b. A registered professional shall be permanently exempted from CPE requirements upon reaching the age of 65
years old.
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. Those who failed to renew professional licenses for a period of five (5) continuous years from initial registration,
or from last renewal shall be declared delinquent.

11. Emong, CPA is applying for renewal of his professional license. He is exempted from the CPE requirements
a. If he is at least 65 years old.
b. If he is working abroad and he has been out of the country for at least two years immediately prior to the date of
renewal.
c. Either a or b.
d. Under no circumstances.

12. How many credit units per hour is (are) earned by a CPA who serves as a facilitator at a CPE seminar?
a. 1 CU per hour
b. 5 CU per hour
c. 3 CU per hour
d. 2 CU per hour

13. A person whose CPA certificate has been revoked

a. can no longer be reinstated as a CPA.
b. is automatically reinstated as a CPA by the PRC after two years if he has acted in an exemplary manner.
c. may be reinstated as a CPA by the PRC after two years if he has acted in an exemplary manner
d. may be reinstated as a CPA by the Board of Accountancy after two years if he has acted in an exemplary manner.

14. The following statements relate to the Philippine Accountancy Act of 2004 (RA 9298). Which of the statement is
true?
a. The PRC has no authority to remove any member of the Board of Accountancy for negligence, incompetence or
other just cause
b. Insanity is not a ground for proceeding against a CPA
c. An applicant is prohibited from taking the Phil. CPA Board Exam if he (she) is below 21 years of age
d. After one year, subject to certain limitations, the Board of Accountancy may order the reinstatement of a CPA
whose certificate of registration has been revoked

15. The following statements relate to RA 9298 and its IRRs. Which statement(s) is (are) true?
I. According to RA 9298 and its IRRS, a Professional Identification Card bearing the registration number, date of
issuance, expiry date, duly signed by the chairperson of the PRC, shall likewise be issued to every registrant
renewable every three years.

II. Practice in Education shall constitute in a person 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.
a. I only b. II only c. I and II d. Neither I nor II

Page 15 of 16 AT.0101
16. A CPA whose certificate have been revoked may be reinstated if he has acted in exemplary manner and has not
committed any illegal, immoral or dishonorable conduct for a period not less than
a. One year c. Five years
b. Two years d. The period depends on his offense
17. Which of the following is not one of the specified objectives of the Philippine Accountancy Act of 2004?
a. Examination for registration of CPAs
b. Promulgation of auditing and accounting standards
c. Supervision, control and regulation of accounting practice
d. Standardization and regulation of accounting education
18. Which statement is(are) correct regarding CPE requirements for renewal of professional license?
I. The total CPE credit units required for CPAs shall be sixty (60) units for three (3) years, provided that a minimum
of fifteen (15) credit units shall be earned in each year.
II. A registered professional shall be temporarily exempted from CPE requirements upon reaching the age of 65
years old.
III. 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 three
years immediately prior to the date of renewal.
IV. Those who failed to renew professional licenses for a period of five (5) continuous years from initial registration,
or from last renewal shall be declared delinquent.
a. I and II only c. I, II and IV only
b. I and IV only d. II and III only
19. The following statements relate to RA 9298 and its IRRs. Which statement(s) is (are) true?
I. The PRC-CPE Council shall be composed of a chairperson and three (3) members.
II. Any candidate who fails in two (2) complete Certified Public Accountant Board Examination shall be disqualified
from taking another set of examinations unless he/she submits evidence to the satisfaction of the Board that
he/she enrolled in and completed at least twenty-four (24) units of subject given in the licensure examination.
III. Within ninety (90) days after the effectivity of RA 9298, the Board subject to the approval of PRC and in
coordination with APO, shall adopt and promulgate such rules and regulations to carry out the provisions of RA
9298 and which shall take effect fifteen (15) days following its publication in the Official Gazette or in any major
daily newspapers of general circulation.
a. I and II c. II and III
b. I and III d. I, II and III
20. Which of the following is not one of the function of the Board of Accountancy as specifically provided under RA 9298?
a. To determine and prescribe minimum requirements leading to the admission of candidates to the CPA
examination.
b. To investigate violations of the Accountancy Law and the rules and regulations promulgated thereunder.
c. To perform visitorial powers or review professional work of accounting practitioners in a general or random basis.
d. After due process, to suspend, revoke, or reissue certificates of registration for causes provided for by law by the
rules and regulations promulgated therefore
21. The Accountancy Law provided that a CPA certificate may be suspended or revoked on grounds except
a. Immoral or dishonorable conduct.
b. Gross negligence or incompetence in the practice of profession.
c. Refusal to accept an audit engagement with a government corporation.
d. Conduct discreditable to the accounting profession
22. 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 c. A and C, Auditors and Tax Consultants
b. A and C, Inc. d. A and C, Members, PICPA
23. 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 registration of AB and Co., CPAs was approved on August 30, 2012, the
registration will expire on
a. Sept. 30, 2014 c. Dec. 31, 2014
b. Dec. 31, 2015 d. Aug. 30, 2014
24. The letters “CPA” shall be engraved in what part of the CPA’s seal?
a. Upper portion of the space between the bigger and smaller circle.
b. Lower portion of the space between the bigger and smaller circle.
c. Left and right portion of the space between the bigger and smaller circle and in the middle of the smaller circle.
d. Middle of the smaller circle.
25. Below are names of four CPA firms and pertinent facts relating to them. Unless otherwise indicated, the individuals
named are CPAs and partners, and there are no other partners. Which firm name and related facts indicate a
violation of RA 9298 and its IRR?
a. Dee, Lim and Sy, CPAs (Dee died about five years ago; Lim and Sy are continuing the firm).
b. Cruz and Reyes, CPAs (The name of V. Valdes, CPA, a third partner, is omitted from the firm name).
c. Gomez and Castro, CPAs (Gomez died about three years ago; Castro is continuing the firm as a sole
proprietorship).
d. P. Reyes and Co., CPAs (The firm has ten other partners who are all CPAs).

 - end of AT.0101

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