DIRECTION: Read and encircle the best answer. Strictly no erasure!

Used of pencil or fixtion pen will be marked wrong.

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. The following statements relate to some of the provisions of RA 9298. Which is correct?
a. Audit working papers are generally the property of the company whose financial statements were audited.
b. After three (3) years, subject to certain conditions, the Board of Accountancy may order the reinstatement of a
CPA whose certificate of registration has been revoked.
c. The penal provision (Sec. 36) of RA 9298 applies only to the violation of any of the provisions of RA 9298
because its Implementing Rules and Regulations are unenforceable.
d. It shall be the primary duty of the PRC and the BOA to effectively enforce the provisions of RA 9298.

6. Which of the following organization has been recognized by the Commission on October 2, 1975 per
Accreditation No. 15, As Accredited Professional Organization?
a. Board of Accountancy (BOA)
b. Association of CPA's in Public Practice (ACPAPP)
c. Association of CPAs in Education (ACPAE)
d. Philippine Institute of CPAs (PICPA)

7. A Certified Public Accountant or CPA is:

a. A person who holds a valid Certificate of Registration issued by the PRC
b. A person who holds a valid professional Identification Card issued by the PRC
c. A person who holds a valid Certificate of Registration and a valid Professional Identification Card
issued by the PRC
d. A person who is engaged in the practice of public accountancy

8. A CPA is in public accounting practice when he/she:

a. Holds, or is appointed to, in an accounting professional group in government or in a government-owned
and/or controlled corporation where decision making requires professional knowledge in the science of
accounting.
b. Represents his/her clients before government agencies on tax and other matters related to accounting.
c. Represents his/her employer before government agencies on tax and other matters related to accounting.
d. Teaches accounting, auditing, management advisory services, accounting aspect of finance, business law,
taxation, and other technically related subjects.

9. Which of the following statements concerning the practice of accountancy in commerce and industry is incorrect?
a. A CPA is in the practice of accountancy in commerce and industry when he/she is involved in decision
making requiring professional knowledge in the science of accounting, as well as the accounting aspects of
finance and taxation.
b. A CPA is in the practice of accountancy in commerce and industry when he/she renders professional
services as a Certified Public Accountant to more than one client on a fee basis.
c. A CPA is in the practice of accountancy in commerce and industry when he/she represents his/her employer
before government agencies on tax and other matters related to accounting.
d. A CPA is in the practice of accountancy in commerce and industry when such employment or position
requires that the holder thereof must be a Certified Public Accountant.

10. 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 is appointed as a marketing director of a government owned and controlled corporation.
c. A person in educational institution teaching accounting, auditing, business law, taxation or other technically
related subjects.
 d. A person representing his/her employer before government agencies on tax and other accounting related
matters.

11. Which of the following statements concerning the practice of accountancy in the academe/education is incorrect?
a. Members of the Integrated Bar of the Philippines are not allowed to teach business law and taxation
subjects.
b. The position of either the Dean or the Department Chairman or its equivalent that supervises the Bachelor of
Science in Accountancy program of an educational institution is deemed to be in practice of accountancy in
the academe/education.
c. CPAs are allowed to teach business law subjects.
d. d. The position of either the Dean or the Department Chairman or its equivalent that supervises the Bachelor
of Science in Accountancy program of an educational institution must be occupied only by a duly registered
CPA.

12. Which of the following statements concerning the practice of accountancy is correct?
a. A CPA is in the practice of accountancy in the government when he/she is involved in the audit or
verification of financial transactions and accounting records of his/her clients.
b. A CPA is in public accountancy when he/she renders his/her professional services as a CPA to more
than one client on a fee basis in the design, installation, review, and revision of accounting systems and
controls.
c. A CPA is in the practice of accountancy in the academe/education when he/she is in an educational institution
teaching any of the subjects included in the BSA curriculum.
d. A CPA is in the practice of accountancy in commerce and industry when his/her position requires civil
service eligibility as a Certified Public Accountant.

13. Which is not permitted by RA 9298 to practice public accountancy?

a. A CPA in individual capacity.
b. A sole proprietorship.
c. A general partnership.
d. A corporation, whose stockholders are all CPAs.

14. Which is permitted by RA 9298 to practice public accountancy?

a. A corporation whose stockholders are all CPAs
b. A corporation whose some of stockholders are CPAs
c. Limited liability partnership
d. A non-stock corporation whose members are all CPAs

15. The names under which a CPA practices the profession must:
a. Indicate any specialization.
b. Contain more than three name.
c. Include one fictitious name.
d. Not misleading as to form of organization.

16. A certificate of accreditation shall be issued to CPA's in public practice only upon showing, in accordance with
rules and regulations promulgated by the BOA and approved by the PRC, that such registration has acquired a:
a. Minimum of 3 years meaningful experience in any of the areas of practice of accountancy including taxation.
b. Minimum of 3 years meaningful experience in any of the areas of practice of accountancy.
c. Minimum of 3 years meaningful experience in any of the areas of public practice including taxation.
d. Minimum of 3 years meaningful experience in any of the areas of public practice excluding taxation.

17. The minimum meaningful experience in public accountancy as required by RA 9298 shall include:
a. At least one year as audit assistant and at least one year as auditor in charge.
b. At least one year as audit assistant and at least two years as auditor in charge.
c. At least two years as audit assistant and at least two years as auditor in charge.
d. At least two years as audit assistant and at least one year as auditor in charge.

18. 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 if the
business or company where the above position exists has
a. An annual revenue of at least P5,000,000.00
b. A total asset of at least P10,000,000
c. A paid-up capital of at least P10,000,000.00
d. A paid-up capital of at least P5,000,000.00

19. 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, 2005,
the registration will expire on

a. Sept. 30, 2007 c. Dec. 31, 2008

b. Dec. 31, 2007 d. Aug. 30, 2007

20. CPAs, firms and partnerships of CPAs engaged in the practice of public accountancy including partners and staff
members thereof, shall register with the PRC and the BOA, such registration to be renewed every
a. Three years on or before December 31
b. Three years on or before September 30
c. Two years on or before December 31
d. Two years on or before September 30

21. Based on R.A. 9298, how many years can a partner who survived the death or withdrawal of other partner(s)
continue to practice under the partnership name after becoming a sole practitioner?

a. 1 year c. 3 years
b. 2 years d. Indefinite period of time

22. Which of the following is not one of the qualifications of the members of the Board of Accountancy?
a. He/She must not be a director or officer of PICPA at the time of his appointment.
b. He/She must be a natural-born citizen and a resident of the Philippines.
c. He/She must be a duly Certified Public Accountant with at least ten years of experience in practice of
public accountancy.
d. He/She must not have any direct or indirect pecuniary interest in any school, college, university, or institution
offering a BS Accountancy course or institution conducting review classes in preparation for the licensure
examination at the time of his appointment to the Board.

23. 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 registered 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.

24. 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

25. 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 a valid ground for suspension or removal of
members of the Board of Accountancy?
a. Neglect of duty or incompetence
b. A member of the Board manipulated the CPA licensure examination results.
c. A member of the Board has been sued of crimes involving moral turpitude.
d. A member of the Board has violated RA 9298.
26. Which statement is correct regarding the term of office of the chairman and the members of the Board of
Accountancy (BOA)?
a. A person may serve in the Board of Accountancy for eight consecutive years.
b. No person who has served three (3) successive complete terms shall be eligible for reappointment until the
lapse of one (1) year
c. Appointment to fill up an unexpired term is to be considered a complete term.
d. No person shall serve in the Board for more than 10 years.

27. Which of the following is not one of the functions of the Board of Accountancy specifically provided under the
RA 9298?
a. To monitor the conditions affecting the practice of accountancy and adopt such measures deemed proper for
the enhancement and maintenance of high professional, ethical, accounting and auditing standards.
b. To make investigations as it deems necessary to determine whether any person has violated any provisions of
this law or any standards promulgated by the Board as part of the rules governing the practice of accountancy
c. To delegate its power and function to determine and prepare test questions for the CPA licensure
examination.
d. To conduct an oversight into the quality of audits of financial statements through a review of the quality
control measures.

28. Which is the least function of the Board of Accountancy?

a. To prepare, adopt, issue or amend syllabi at the subjects for examinations in consultation with the academe.
b. To investigate violations of the RA 9298
c. To prepare questions for the CPA licensure examination which shall strictly within the scope of the syllabi of
the subjects for examination.
d. To supervise PICPA.

29. The following statements relate to the RA 9298. Which statement is true?
a. The Professional Regulation Commission has the authority to remove any member of the Board of
Accountancy for negligence, incompetence, or any other just cause.
b. No person shall be appointed as a member of the Board of Accountancy unless he has been in the
practice of accountancy for at least 10 years, among others.
c. Insanity is not a ground for proceeding against a CPA.
d. After three years, subject to certain conditions, the Board of Accountancy may order the reinstatement of a
CPA whose certificate of registration has been revoked.

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

31. The person authorized to remove a member of BOA on valid grounds and after due process is:
a. The Commissioner of the PRC.
b. The Chairman of BOA, unless he is the one under investigation.
c. The President of the Philippines.
d. Congress of the Philippines.

32. The following are the grounds for suspension or removal of members of BOA, except
a. Neglect of duty.
b. Incompetence.
c. Violation of the CPA’s Code of Ethics.
d. Pending case involving moral turpitude.

33. Which of the following statements about the composition of the Board of Accountancy is incorrect?
a. The Board shall be composed of a chairman and six members.
 b. The members of the Board shall be appointed by the President of the Philippines from a list of three
recommendees for each position and ranked by the Commission from a list of five nominees for each position
submitted by Accredited Professional Organization or PICPA.
c. The Board shall elect a chairman from among its members to serve for a term of one year.
d. If the APO fails to submit its nominees within 60 days prior to the expiry of the term of an incumbent
chairman or member, the Commission in consultation with the Board shall submit to the president a list of
three nominees for each vacant position.

34. Who has the power to suspend or remove any member of the Board of Accountancy?
a. The Chairman of the FRSC
b. The Chairman of the PRC
c. The Chairman of the AASC
d. The President of the Philippines

35. This standard setting body shall have a chairman who had been or presently a senior accounting practitioner in
any of the scope of accounting practice.

a. PICPA b. ACPAPP c. FRSC d. AASC

36. This standard setting body shall have a chairman who had been or presently a senior accounting practitioner in
public accountancy.

a. BOA b. AASC c. FRSC d. ACPAE

37. The Chairman and the members of the FRSC and AASC shall have a term of

a. 1 year b. 3 years c. 5 years d. 6 years

38. The following statements relate to the term of office of the Chairman and members of the Board of Accountancy
(BOA). Which is false?
a. The Chairman and members of the BOA shall hold office for a term of three (3) years.
b. Any vacancy occurring within the term of a member shall be filled up for the unexpired portion of the term
only.
c. Appointment to fill up an unexpired term is not to be considered as a complete term.
d. No person who has served two successive complete terms as chairman or member shall be eligible for
reappointment until the lapse of two (2) years.

39. The Board of Accountancy shall elect a vice-chairman from among its members for a term of

a. Two (2) years c. Three (3) years

b. One (1) year d. Five (5) years

40. According to Section 9(A) of the IRR, the Commission upon the recommendation of the Board shall create an
accounting standard setting body to be known as the
a. Accounting Standards Board
b. Accounting Standards Council
c. Financial Reporting Standards Council
d. Financial Reporting Standards Board

41. The Financial Reporting Standards Council shall be composed of

a. 8 members c. 15 members
b. 14 members d. 17 members

42. According to Section 9(A) of the IRR, the Commission upon the recommendation of the Board, shall create an
auditing standard setting body to be known as the
 a. Auditing and Assurance Standards Council (AASC)
b. Auditing Standards Board
c. Auditing Standards Council
d. Auditing Standards and Practices Council (ASPC)

43. The Auditing and Assurance Standards Council (AASC) shall be composed of

a. 8 members c. 15 members
b. 14 members d. 17 members

44. Which of the following does not have representation in the Financial Reporting Standards Council (FRSC)?
a. Board of Investments (BOI)
b. Philippine Institute of CPAs (PICPA)
c. Bureau of Internal Revenue (BIR)
d. Board of Accountancy (BOA)

45. The following are represented both to the Financial Reporting Standards Council (FRSC) and Auditing and
Assurance Standards Council (AASC), except:
a. Bangko Sentral ng Pilipinas
b. Bureau of Internal Revenue
c. Securities and Exchange Commission
d. Board of Accountancy

46. Which of the following functions to promulgate auditing standards?

a. National Accredited Professional Organization
b. Financial Reporting Standards Council
c. Auditing and Assurance Standards Council
d. ACPAPP

47. The auditing standard setting body created by the Board of Accountancy is known as:
a. Accounting Standards Council (ASC)
b. Financial Reporting Standards Council (FRSC)
c. Auditing Standards and Practices Council (ASPC)
d. Auditing and Assurance Standards Council (AASC)

48. 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 public accounting practice is the sector that is most represented in the accounting standard setting
council.
d. 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.

49. The sector that is most represented in the AASC is the:

a. Commerce and Industry c. Public Practice

b. Academe d. Government

50. Which of the following statements 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.

51. 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.

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

53. Which of the following is not one of the functions of ETC?

a. Determine a minimum standard curriculum for the study of accountancy to be implemented in all schools
offering BS Accountancy.
b. Establish teaching standards, including the qualifications of the members of the faculty of schools and
colleges of accountancy.
c. Monitor the progress of the program on the study of accountancy and undertaking measures for the attainment
of a high quality accountancy education in the country.
d. Recommend to the BOA the revocation of the Certificate of Registration and the professional
identification card of an individual CPA or CPA firm including any of their members who have not
observed the quality control measures or who have not complied with the standards of quality
prescribed for the practice of public accountancy.

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

55. An applicant for the CPA licensure examination should be

I. A Filipino citizen
II. Of good moral character
III. A holder of the degree of Bachelor of Science in Accountancy

a. I and II only c. c. II and III only

b. b. I and III only d. d. I, II, and III

56. The following documents shall be submitted by applicants for the CPA licensure examination, except
a. Certificate of Live Birth in National Statistics Office (NSO) security paper.
b. Marriage contract in NSO security paper for married male applicants.
c. NBI clearance.
d. Transcript of records with indication therein of date of graduation and Special Order number unless it is not
required.

57. A candidate who obtains the rating of seventy-five percent (75%) and above in at least a majority of the subjects
shall receive a conditional credit for the subjects passed. He/she shall take an examination in the remaining
subjects within
a. One (1) year from the preceding examination.
b. Two (2) years from the preceding examination.
c. Three (3) years from the preceding examination.
d. Five (5) years from the preceding examination.

58. Which of the following statements is correct?

a. Any candidate who fails in two (2) complete CPA board examinations will no longer be allowed to take
another set of examinations.
 b. Any candidate who fails in two (2) 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 twenty-four (24) units of subjects given in the licensure examination.
c. The examination in which the candidate was conditioned and the removal examination of the subject in which
he/she failed shall be counted as two (2) complete examinations.
d. The refresher course should be completed within two (2) years from the preceding examination.

59. Which of the following shall be issued to examinees who passed the CPA licensure examination?
a. Certificate of accreditation
b. Personal identification card
c. Certificate of full compliance and PRC ID.
d. Certificate of registration and professional identification card

60. 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. A and B
d. Neither A nor B

61. Any candidate who fails in 2 complete CPA Board Examinations shall be disqualified from taking another set of
examination unless he or she submits evidence to the satisfaction of the Board that
a. He/She enrolled in and completed at least 24 units of subjects given in the licensure examination.
b. He/She enrolled the subjects given in the CPA Board Examination in the regular course offering.
c. He/She is ready to take another set of examination.
d. He/She enrolled in an educational institution offering or conducting review classes in preparation for CPA
Board Examination.

62. The following statements relate to CPA examination ratings. Which of the following 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. Conditioned candidates shall take an examination in the remaining subjects within two years from the
preceding examination.
c. Candidates who obtain a rating of 75% and above in at least four subjects shall receive a conditional credit for
the subjects passed.
d. Candidates who failed in four complete examinations shall no longer be allowed to take the
examinations the fifth time.

63. The following statements relate to the rating in the CPA licensure examination. Identify the incorrect statement.
a. A candidate must have a general weighted average of at least 75% with no grades lower than 65% in any
given subject in order to pass the CPA licensure examination.
b. In the event a candidate obtains a rating of 75% and above in at least a majority of the subjects, he/she shall
receive a conditional credit for the subject passed.
c. A candidate who receives a conditional credit shall take an examination on the remaining subjects within two
years from the preceding examination.
d. A candidate who gets a conditional credit and takes an examination on the remaining subjects must get
an average of at least 75% on the subjects reexamined and at least 65% in each of the subjects
reexamined.

64. The following are grounds for the suspension or revocation of certificate of registration and professional
identification card, except:
a. Unprofessional or unethical conduct.
b. Practice in more than one field of accountancy.
c. Possession of unsound mind.
d. Conviction of a criminal offense involving moral turpitude.

65. The following are grounds for refusal to issue a certificate of registration and professional identification card to
any successful examinee except:
a. Guilty of immoral and dishonorable conduct.
 b. Conviction for a political offense.
c. Unsound mind.
d. Conviction of a criminal offense involving moral turpitude.

66. A CPA whose certificate has been revoked:

a. Has committed a crime involving moral turpitude.
b. Is required to take the CPA Board Licensure examinations before reinstatement.
c. May be reinstated by the BOA after the expiration of 2 years from the date of revocation.
d. Can no longer be reinstated as a CPA.

67. The Board of Accountancy may issue certificate of registration and professional identification card to any
successful examinee:
a. Of unsound mind
b. Convicted by a court of political offense.
c. Guilty of immoral or dishonorable conduct.
d. Who has falsely represented himself/herself in his/her application for examination.

68. The Board of Accountancy may, after the expiration of ____ years from the date of revocation of a certificate of
registration, reinstate the validity of a revoked certificate of registration.

a. 2 b. 3 c. 4 d. 5

69. It involves a study or appraisal by the Board or its duly authorized representatives, of the quality of audit of
financial statements through an evaluation of the quality control measures instituted by the CPA firm to ascertain
compliance with ethical and technical standards of public practice.

a. Quality review c. Compliance audit

b. Peer review d. External audit

70. A body created by the BOA to conduct an oversight of the quality of audit of financial statements by reviewing
the firms quality control is known as:
a. Quality Review Committee (QRC)
b. Financial Reporting Standards Council (FRSC)
c. Auditing and Assurance Service Council (AASC)
d. Educational Training Committee (ETC)

71. Which of the following is one of the functions of the QRC?

a. To promulgate accounting and auditing standards that will be generally accepted in the Philippines.
b. To evaluate periodically the performance of educational institutions offering accountancy education.
c. To prescribe and or/ adopt a Code of Ethics for the practice of accountancy.
d. To conduct a review on applicants for registration to practice public accountancy and render a report
which shall be attached to the application for registration.

72. All CPAs who are considered in the practice of accountancy shall abide by the requirements, rules and regulations
on continuing professional education. For this purpose, it is required that all registered CPAs must complete a
number of CPE units equivalent to
a. 120 credit units in three years
b. 90 credit units in three years
c. 60 credit units in three years
d. 30 credit units in three years

73. For every CPE seminars or conventions attended, participant CPAs shall get a CPE credit equivalent to
a. One credit unit per hour.
b. Two credit units per hour.
c. Three credit units per hour.
d. Five credit units per hour.
74. Unless otherwise exempted, registered CPAs in the practice of accountancy who have not completed the CPE
requirements shall
a. Be dropped from the roster of CPAs.
b. Not be allowed to renew their professional licenses.
c. Present evidence to the satisfaction of the Board that they have the necessary knowledge, skills and
experience to discharge their professional responsibility.
d. Submit a letter addressed to the Board indicating the reasons for not complying with the CPE requirements.

75. Which of the following statements is correct about the PRC CPE Council?
a. The Council shall be composed of six members and a chairperson.
b. The members of the Board shall choose a chairperson from among themselves.
c. The members of the Council shall be appointed by the Commission upon recommendation of the Board in
coordination with APO.
d. The chairperson and members of the Council shall have a term of three years renewable for another term.

76. The following statements relate to CPE credit units. Which is incorrect?
a. The total CPE credit units for registered accounting professionals shall be sixty (60) credit units for three (3)
years, provided that a minimum of fifteen (15) credit units shall be earned in each year.
b. Any excess credit units in one year may be carried over to the succeeding years within the three-year period.
c. Excess credit units earned may be carried over to the next three-year period including credit units
earned for doctoral and master's degrees.
d. One credit hour of CPE program, activity or source shall be equivalent to one (1) credit unit.

77. The following statements relate to the exemption from CPE requirements. Which is false?
a. A registered professional shall be permanently exempted from CPE requirements upon reaching the
age of 60 years old.
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 or practicing his/her profession abroad shall be temporarily
exempted from compliance with CPE requirements 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.
d. A registered professional who is furthering his/her studies abroad shall be temporarily exempted from
compliance with CPE requirements 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.

78. As defined in Annex "C" of the IRR, this 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.
a. Professional Development b
b. Continuing Professional Education
c. Continuing Professional Development
d. Professional Growth and Development

79. A registered CPA who is working or practicing his/her profession or furthering abroad shall be temporarily
exempted from compliance with CPE requirements during the period of his/her stay abroad, provided that prior to
the date of renewal he/she has been out of the country for at least

a. Four years c. Two years

b. Three years d. One year

80. Special/temporary permit may be issued by the Board to the following persons except:
a. A foreign CPA engaged as a professor or lecturer in the fields essential to accountancy education in the
Philippines.
b. A foreign CPA called for consultation or specific purpose which is essential for the development of the
country and that there are no Filipino CPAs qualified for such consultation or specific purpose.
c. A foreign CPA with specialization in any branch of accountancy and his/her service is essential for the
advancement of accountancy in the Philippines.
 d. A foreign CPA who can prove that the country of which he or she is a citizen admits citizens of the
Philippines to the practice of the same profession without restriction.

81. Section 36 (Penal Provision) of RA 9298 states that any person who shall violate any of the provisions of the
Philippine Accountancy Act or any of its implementing rules and regulations shall, upon conviction, be punished
by
a. A fine of not less than P50,000.
b. Imprisonment for a period not exceeding two (2) years.
c. A fine of not less than P50,000 or by imprisonment for a period not exceeding two (2) years.
d. A fine of not less than P50,000 or by imprisonment for a period not exceeding two (2) years, or both.

82. The following statements relate to the submission of nominations to the Board of Accountancy. Which is correct?
a. The Accredited National Professional Organization of CPAs (APO) shall submit its nominations to the
President of the Philippines not later than sixty (60) days prior to the expiry of the term of an incumbent
chairman or member.
b. The APO shall submit its nominations to the PRC not later than thirty (30) days prior to the expiry of the term
of an incumbent chairman or member.
c. If the APO fails to submit its own nominee(s) to the PRC within the required period, the PRC in consultation
with the Board of Accountancy shall submit to the President of the Philippines a list of five (5) nominees for
each position.
d. There should be adequate documentation to show the qualifications and primary field of professional
activity each nominee.

83. 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 should not serve as a reference source for the clients accounting records.
d. Working papers are subject to confidentiality rules and they cannot be shown to third parties in any
circumstances.

84. The following statements relate to the use of seal by registered CPAs. Which is incorrect?
a. The seal should be of a design prescribed by the Board bearing the CPA's name, registration number, and
title.
b. A registered CPA shall obtain and use a seal of a design that will suit his/her taste.
c. The auditor's reports shall be stamped with the CPA's seal, indicating therein his/her current Professional Tax
Receipt (PTR) number, date/place of payment when filed with government authorities or when used
professionally.
d. The seal of a CPA shall be circular in form.

85. Section 34 of the IRR provides that a foreign CPA 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 provision of law, the
country of which he/she is a citizen, subject or national admits Filipino citizens to the practice of the same
profession without restriction. Which of the following statements concerning foreign reciprocity is incorrect?
a. A foreign CPA should submit an authentic or authenticated copy of the law on reciprocity of his/her
country/state officially translated in the English language.
b. If the letter/document and the copy of the law submitted by a foreign CPA are satisfactory to the BOA, he/she
shall be allowed to practice accountancy in the Philippines but has to apply for accreditation to do so.
c. A foreign CPA who desires to practice accountancy in the Philippines shall present/submit a letter or
any document signed and under official seal by the appropriate official of his/her country/state
requesting the Chairman of the PRC to allow him/her to practice accountancy in the Philippines.
d. By express provision of the law of a foreign CPA's country/state, Filipino CPAs are allowed to practice
accountancy in his/her country/state on terms of strict and absolute equality with the citizens or subjects of
said country or state.
 GODBLESS!
“Nobody can go back and start a new beginning, but anyone can start today and make a new ending.”
- Maria Robinson