Chapter 1

I. Multiple choice

1. Which of the following is characteristic of an ideal profession?

A. Systematic theory.
B. Professional authority.
C. Community sanction.
D. All of the above.

2. Which of the following is professional skills?

A. Intellectual skills
B. Technical and functional skills.
C. Personal skills.
D. Interpersonal and communication skills.
E. All of the above.

3. The practice of accountancy includes the following except

A. Practice in public accountancy.
B. Practice in education/academe.
C. Practice in the government.
D. Practice in commerce and industry, when the CPA is appointed as marketing
manager of the enterprise.

4. Which of the following is qualification for the licensure examinations?

A. Is a Filipino citizen.
B. Good moral character.
C. A holder of BSAccy
D. Has not been convicted of any crime.
E. All of the above.

5. Which of the following are the different areas that the professional accountant’s
mindset needs to embrace?
A. Professionalism and ethical behavior.
B. Professional judgment.
C. Organizational and environmental awareness.
D. An investor and wider stakeholder focus.
E. Change, uncertainty and complexity.
F. All of the above.

II. True or false

1. Professional Accountant in Public Practice. A professional accountant. irrespective of
functional accountant in classification (for example, audit, tax or consulting) in a firm
that provides professional services. This term is also used to refer to a firm of
professional accountants in public practice.
A. True.
B. False.

2. CPAs are considered professional persons because they hold a license from a
government agency?
A. True.
B. False. serve the interests of the public in general and clients in particular. are
members of the PICPA.

3. Society has attached a special meaning to the term “professional” a professional is

someone who has passed a qualifying exam to enter the job market?
A. True.
B. False. a person who is expected to conduct himself or herself at a higher level
than the requirements of society's laws or regulations.

4. A basic objective of a CPA firm is to provide professional services that conform with
professional standards. Reasonable assurance of achieving this basic objective is
provided through a system of quality control?
A. True.
B. False.

5. Competency requirements for professional accountants in public practice are

knowledge content and practical experience?
A. True.
B. False.