TBE#1

1. To be qualified as having passed the CPA licensure exam, a candidate must?

A. obtain a general avaerage of 75%, with grade lower than 65% in any given
subject.

B. obtains a rating of less than 75% in majority of the subjects given.

C. obtain a general average of 75%, with no grades lower than 65% in any given
subject.

D. obtains a rating of 80% in at least majority of the subjects and took the
conditional examination 3 years after.

Ans: C

2. The professional skills of an accountant includes the following except

A. Intellectual Skills
B. Legislative Skills
C. Personal Skills
D. Interpersonal and Communication Skills

Ans: B

3. Any person applying for the CPA licensure exam can be previously
incarcerated

True
False

Ans: False

4. All are core values of the CPA profession excluding

A. Loyalty
B. Integrity
C. Objectivity
D. Commitment to excellence

Ans: A

5. All are core competencies of the CPA profession except

A. Leadership skills
B. Integration and Collaboration
C. Anticipating and serving evolving needs
D. Customer service
Ans: D

6. A professional accountant is an individual who holds a valid certificate issued

by the Board of Accountancy, whether he/she be in public practice, industry,
commerce, the public sector or education.

True
False

Ans: True

7. Anyone can take the CPA licensure examinations

True
False

Ans: False

8. The CPA licensure exam shall cover the following except

A. Auditing
B. Financial accounting and reporting
C. Law on partnership and corporation
D. Taxation

Ans: C

9. Dependable information is essential to the very existence of our society.

True
False

Ans: True

10. Which of the following is not a scope of practice in the accountancy

profession?

A. Practice of Public Accountancy

B. Practice in Human resource
C. Practice in the government
D. Practice in commerce and Industry

Ans: B

Kaye Valerie Sinco19 Jul

TBE#2

1. CPAs who practice as independent auditors must meet registration

requirements to exercise their right to practice
True
False

Ans: True

2. Which agency administers, implements, and enforces the regulatory policies of

the National Government with respect to the regulation and licensing of the
various professions under its jurisdiction?

A. SEC
B. PRC
C. COA
D. BIR

Ans: PRC (professional regulatory commission)

3. The professional regulatory board of accountancy consists of

A. A chairman and 6 members

B. A chairman and 5 members
C. 2 chairman and 8 members
D. A chairman and 4 members

Ans: A

4. What is a symbolic representation of the CPA's report on management

assertions about its disclosure of electronic commerce practices?

A. Internet and electronic commerce

B. Information system reliability service
C. Web trust seal
D. None of the above

Ans: C

5. The practitioner is the person who provides the assurance to the intended
users about a subject matter that is the responsibility of another party

True
False

Ans: True

6. A suitable criteria must exhibit the following characteristics except

A. Completeness
B. Neutrality
C. Relevance
D. Complexity

Ans: D

7. Which of the following is not a component of an engagement risk?

A. Control Risk
B. Business Risk
C. Detection Risk
D. Inherent Risk

Ans: B

8. The most predominant type of assurance engagement that provides a high

level of assurance that the financial statements are free of material misstatement
is known as

A. Review
B. Independent financial statements audit
C. Agreed-upon procedures
D. Compilation

Ans: B

9. The person who provides the assurance to the intended users about a subject
matter that is the responsibility of another party is called

A. Practitioner
B. Responsible party
C. Chairman
D. Intended user

Ans: A

10. Sufficiency is the measure of the quality of evidence while appropriateness is

the measure of the quantity of evidence

True
False

Ans: False

Kaye Valerie Sinco3 Aug

TBE#3

1. This refers to an "experts" communication about the reliability or unreliability

of the financial statements and supporting records

A. Auditing
B. Accounting
C. Attestation
D. Opinion

Ans: C. Attestation

2. The term refers to the audit procedures deemed necessary in the

circumstances to achieve the objective of the audit

A. Systematic procedure
B. Control
C. Attest function
D. Scope of an audit

Ans: D. Scope of an audit

3. All are types of internal auditing except

A. Operational audit
B. Program audit
C. Management audit
D. Financial audit

Ans: B. Program audit

4. Independence is essential to the effectiveness of internal auditing

True
False

Ans: True

5. The process of recording, classifying, and summarizing economic events in a

logical manner for the purpose of providing financial information for decision-
making is

A. Accounting
B. Management
C. Auditing
D. Financing

Ans: A. Accounting

6. Is concerned with the determination of whether the recorded accounting

information for the entity properly reflects the economic events that occured
during the accounting period

A. Auditing
B. Accounting
C. Economics
D. Management

Ans: A. Auditing

7. Which of the following is considered as ethical principles governing the

auditor's professional responsibilities

A. Confidentiality
B. Professional behavior
C. Integrity
D. Independence
E. All of the above

Ans: E. All of the above

8. Governmental auditing, in addition to including audits of financial statements,

often includes audits of efficiency, effectiveness, and

A. Accuracy
B. Adequacy
C. Compliance
D. Dependence

Ans: C. Compliance

9. This refers to the closeness with which the assertations can be identified with
established criteria

A. Established criteria
B. Assertions about economic actions & events
C. Objectively obtains and evaluates evidence
D. Degree of correspondence

Ans: D. Degree of correspondence

10. The auditor's opinion helps establish the credibility of the financial
statements

True
False

Ans: True

Kaye Valerie Sinco3 Aug

TBE#4
1. Auditors found guilty of not complying with the minimum standards of
performance established by law are subject to penalty, which generally takes one
of the following forms except

A. Payment of damages to those claiming injury

B. Public censure
C. Temporary or permanent loss of license to practice
D. Suspension or prohibition from practice before the court

Ans: D.

2. Any candidate who fails in 2 complete CPA board examination shall be

disqualified from taking another set of examinations unless he/she submits
evidence that he/she enrolled in and completed at least

A. 24 units in subject given in the licensure exam

B. 36 units in subject given in the licensure exam
C. 48 units in subject given in the licensure exam
D. 15 units in subject given in the licensure exam

Ans: A

3. An act regulating the practice of accountancy in the Philippines

A. R.A 9262
B. R.A 9298
C. R.A 10175
D. R.A 8353

Ans: B.

4. The auditor should plan and perform the audit with an attitude of professional
skepticism

True
False

Ans: True

5. The standard of due care to which the auditor is expected to be held is referred
to as

A. Prudent person concept

B. Due care concept
C. Common law doctrine
D. Responsible person concept

Ans: A.
6. Refers to limitations of liability to the parties to a given contract

A. Contributory negligence
B. Absence of casual connection
C. Privity of contract
D. Statute of limitations

Ans: C

7. Refer to the body of laws passed by legislative bodies such as Congress

A. Common law
B. Republic Act
C. Bill
D. Statutory laws

Ans: D

8. Refers to laws that have been developed through court decisions rather than
through government statutes

A. Statutory laws
B. Common laws
C. Bill
D. Wrongdoings

Ans: B

9. Which one of the auditor's four defenses is the preferred defense in third party
lawsuits?

A. Lack of duty
B. Non-negligent performance
C. Absence of casual connection
D. Contributory negligence

Ans: B

10. In the event the auditor fails to detect fraud and is found negligent, a client is
entitled to recover any losses occuring since the auditor's negligence was
proximate cause but is unable to recover the audit fee

True
False

Ans: False - the client may recover the audit fee because of the auditor's breach
of contract