1.

The objective of the Philippine Accountancy Act of 2004 includes:

a. The standardization and regulation of accounting education
b. The examination for registration of certified public accountants
c. The supervision, control and regulation of the practice of accountancy in the Philippines
d. All of the above

2. Which of the following does not constitute a practice of accountancy?

a. A person holding out himself as one skilled in the knowledge, science and practice of
accounting and as a qualified person to render professional services as a CPA to more than
one client.
b. A person representing his/her employer before the government agencies on tax and other
accounting related matters.
c. A person in educational institution teaching accounting, auditing, business law, taxation or
other technically related subjects.
d. A person is appointed as a marketing director of a government owned and controlled
corporation.

3. The following statements relate to the Board of Accountancy. Which statement is correct?
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 PICPA.
c. The Professional Regulation Commission may remove from the Board any member whose
certificate to practice has been removed or suspended.
d. Majority of the board members shall as much as possible be in public practice.

4. Which of the following is not one of the qualifications of the members of the Board of
Accountancy?
a. Must be a natural-born CPA and a resident of the Philippines.
b. Must be a duly Certified Public Accountant with at least ten years of experience in practice
of accountancy.
c. Must be of good moral character.
d. Must not have been convicted of crimes involving moral turpitude.

5. The President of the Philippines, upon the recommendation of the Commission, may suspend or
remove any member of the Board of Accountancy. Which of the following is not valid ground for
suspension or removal of members of the Board of Accountancy?
a. Neglect of duty of incompetence
b. A member of the Board manipulated the CPA licensure examination results.
c. A member of the Board has violated RA9298.
d. A member of the Board has been sued of crimes involving moral turpitude.

6. Which of the following is not a function of the Board of Accountancy?

a. To supervise the registration, licensure and practice of accountancy in the Philippines.
 b. To issue, suspend, revoke or reinstate the certificate of registration for the practice of the
accountancy profession.
c. To prescribe and/or adopt a code of ethics for the practice of accountancy.
d. To adopt an official seal of the Commission.

7. Which is the least function of the Board of Acountancy?

a. To prepare, adopt, issue or amend syllabi at the subjects for examinations in consultation
with the academe.
b. To prepare questions for the CPA licensure examination which shall strictly within the scope
of the syllabi of the subjects for examination.
c. To investigate violations of the RA9298.
d. To supervise PICPA.

8. The auditing standard setting body created by the PRC is known as

a. Financial Reporting Standards Council (FRSC)
b. Auditing Standards and Practices Council (ASPC)
c. Accounting Standards Council (ASC)
d. Auditing and Assurance Standards Council (AASC)

9. Which of the following is correct about AASC?

a. The AASC shall be composed of a chairman and six members.
b. The chairman and members of the AASC shall be appointed by the president of the
Philippines from a list of three recommendees ranked by the Commission from the list of 5
nominees for each position submitted by APO.
c. The chairman and members of the AASC shall have a term of three years renewable for
another term.
d. The AASC shall elect a Vice-Chairman from among its members for a term of one year.

10. The sector that is most represented in the AASC is the

a. Commerce and Industry
b. Academe
c. Government
d. Public Practice

11. Which of the following statements about Accounting Standard Setting Council is false?
a. The accounting standard setting body is to be known as Financial Reporting Standards
Council (FRSC).
b. The accounting standard setting body shall be composed of a chairman and fourteen
members.
c. The chairman and members of the standard setting council shall be appointed by the
Commission upon the recommendation of the Board in coordination with APO.
d. The public accounting practice is the sector that is most represented in the accounting
standard setting council.
12. Which of the following government regulatory agencies is not represented in the AASC?
a. Securities and Exchange Commission
b. Bureau of Internal Revenue
c. Bangko Sentral ng Pilipinas
d. Board of Accountancy

13. Educational Technical Council (ETC) differs from accounting and auditing standard setting
councils in that
a. ETC is composed of 15 members with a chairman.
b. The chairman and members of ETC are appointed by the Commission.
c. The chairman and members of ETC have a three-year term renewable for another term.
d. The chairman of ETC must have been or presently a senior accounting practitioner in
academe or education.

14. The following are qualifications of applicants for CPA licensure examination, except
a. He/she is a Filipino citizen.
b. He/she is of good moral character.
c. He/she is a holder of the degree of Bachelor of Science in Accountancy.
d. He/she is at least 21 years of age.

15. To be qualified as having passed the CPA licensure examination:

a. The candidate must have a general weighted average of at least 75%.
b. The candidate must not have a grade lower than 65% in any given subject.
c. Both A & B
d. Neither A nor B

16. The Board of Accountancy shall submit to the PRC the ratings obtained by each candidate within
_____ days after the examination, unless extended for just cause.
a. 10
b. 5
c. 2
d. 3

17. Which of the following shall be issued to examinees who pass the CPA licensure examination?
a. Certificate of Accreditation
b. Personal Identification Card
c. Certificate of registration and professional identification card
d. Certificate of full compliance and PRC ID

18. Which of the following is one of the reasons for not issuing a certificate of registration to
successful examinee?
a. Is of unsound mind
b. Had been guilty of immoral and dishonorable conduct
c. Had been convicted by a court of a criminal offense involving moral turpitude
 d. All of the given choices

19. A CPA whose certificate of registration has been revoked:

a. Can no longer be reinstated
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 by the Professional Regulation Commission 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

20. A professional identification card bearing the registration number, date of issuance, expiry date,
duly signed by the Chairperson of the Commission, shall be issued to every registrant renewable
every
a. Two years
b. Three years
c. Four years
d. Five years

21 to 23 are based on the following information:

Paul John C. Beldad, CPA Auditing Firm engaged in the practice of public accountancy including his
partners and staff members thereof, shall register with the Commission and the Board, such registration
to be renewed every _____ on or before______.

21.
a. One year
b. Two years
c. Three years
d. Five years

22.
a. April 15
b. December 31
c. September 30
d. May 31

23. If the application for registration to practice accountancy of Paul John C. Beldad, CPA was
approved on April 30, 2015, the registration shall expire on
a. September 30, 2018
b. September 30, 2017
c. April 30, 2018
d. December 31, 2017
24. Special/Temporary permit may be issued by the Board to the following persons except:
a. Mizuri Kho, foreign CPA called for consultation for new existing Financial Reporting Standard
which is essential for the development of the country and that there are no qualified Filipino
CPAs qualified for such consultation or specific purpose.
b. Buen Krap Te, a foreign CPA engaged as a professor in the fields essential to accountancy
education in the Philippines.
c. Kendra Voughn, a foreign CPA with specialization in Computerized Integrated System in
which her service is essential for the advancement of accountancy in the Philippines
d. Lee Min Sy, a foreign CPA who can prove that the country of which he is citizen admits
citizens of the Philippines to the practice of same profession without restriction.

25. Affixing the CPA’s seal and signature on the auditor’s report is an indication of:
a. CPA’s acceptance of responsibility for the financial statements audited
b. Compliance by the CPA of the requisite accounting and auditing standards and rules
c. CPA’s accreditation to practice public accountancy
d. Fair presentation of financial statements audited

26. Which of the following statements about working paper is correct?

a. Working papers prepared by a CPA including those prepared and submitted by the client are
the personal property of the auditor and the client has no right to these working papers.
b. Working papers may substitute the client’s accounting records.
c. Working papers are subject to confidentiality rules and they cannot be shown to third
parties in any circumstances.
d. Working papers should not serve as a reference source for the clients accounting records.

27. 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 the Philippine Accountancy Act of 2004?
a. Vincent, James and Michael, CPAs (James died about 4 years ago; Vincent and Michael are
the continuing partners)
b. Daniel and Denzo, CPAs (the name of G. Sanchez, CPA, a third partner is omitted from the
firm name)
c. Vlad and Vent, CPAs (Vent died about 3 years ago; Vlad is continuing the firm as a sole
practitioner)
d. D. Flores and Co., CPAs (D. Flores has ten other partners who are all CPAs)

28. The following statements relate to RA 9298. Identify the incorrect statement.
a. Implementing rules and regulations shall take effect 15 days following its publication in the
official gazette or in any daily newspaper of general publication.
b. Any person, who shall violate any of the provisions of RA 9298 or the IRR shall upon the
conviction, be punished by fine of not more than PHP50,000.00 or by imprisonment for a
period not exceeding 2 years or both.
c. The Board, after the expiration of 2 years from the date of revocation of certificate of
registration, may reinstate the revoked certificate.
 d. All graduates with bachelors degree major in accounting shall be allowed to take the CPA
licensure examination within two years from the effectivity of RA9298 or until May 2006.

29. A registered professional shall be permanently exempted from the CPE requirements upon
reaching the age of
a. 55 years old
b. 65 years old
c. 60 years old
d. 70 years old

30. Carlo Rossi, a CPA whose certificate of registration has been revoked:
a. Can no longer be reinstated
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 by the Professional Regulation Commission 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