AUDITING III

1. Section 4 of the Rules and Regulations Implementing RA 9298 (IRR) provides that 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
should be occupied by a duly registered CPA. It provides further that the business of
company where such position exists has a 
A. Paid up capital and/or an annual revenue of at least P5,000,000. 
B. Paid up capital and/or an annual revenue of at least 10,000,000. 
C. Paid up capital of at least P5,000,000 and/or an annual revenue of at least
P10,000,000. D. Paid up capital of at least P10,000,000 and/or an annual revenue of at
least P5,000,000. 2. Which of the following is not an objective of the Philippine
Accountancy Act of 2004? The development and improvement of accounting
standards that will generally be accepted in the  Philippines. 
The supervision, control and regulation of the practice of accountancy in
the Philippines. The examination for registration of certified public
accountants. 
The standardization and regulation of accounting education. 
3. The area of practice of accountancy namely, public accountancy, commerce
and industry, academe/education, and government 
Line 
Section 
Sector 
Segment 
4. The fundamental principles of Code of Ethics include the following, EXCEPT 
Objectivity 
Independence 
Confidentiality 
Professional competence and due care 
5. The following situations constitute a practice of public accountancy, EXCEPT 
Performance of external audit services. 
Instruction of accountancy students on accounting. 
Rendering of services to more than one client on a fee basis. 
Holding out oneself as one skilled in the knowledge, science and practice of
accounting and as a qualified person to render professional services as a CPA. 
6. The following are regarded by RA9298 as CPA services in public practice if offered or
rendered on a fee basis and to more than one client (select an exception). 
Preparation and signing of audit reports. 
Design and installation of accounting system. 
Professional assistance on accounting procedures. 
Representation of clients before government agencies on tax and other matters
regardless of its relation to accounting.
7. The government agency tasked by law of implementing and enforcing the regulatory policies
of the national government with respect to the regulation and licensing of various
professions and occupations under its jurisdiction. 
Professional Regulation Commission 
Commission on Audit 
Professional Regulatory Board of Accountancy 
Department of Justice 
8. The Professional Regulatory Board of Accountancy consists of 
1 Chairman and 4 members 
1 Chairman and 5 members 
1 Chairman and 6 members 
1 Chairman and 7 members 
9. The Chairman and the members of the BOA shall be appointed by 
President of PICPA 
President of the Republic of the Philippines 
Chairman of the Professional Regulation Commission 
Commissioner of DOLE 
10. Which of the following is not a qualification of the members of the BOA? 
Must be a natural-born Filipino citizen and a resident of the Philippines. 
Must be of good moral character and must not have been convicted for crimes
involving moral turpitude. 
Must be a duly registered CPA with at least ten (10) years of work experience in any
scope of practice of accountancy. 
Must not have any pecuniary interest, direct or material, indirect, in any school,
college, university or institution conferring B.S. Accountancy