1.

The ultimate basis of RA 9298 is the

a. NIRC
b. PD 692
c. Revenue Regulations
d. Philippine Constitution
2. “The State recognizes the importance of accountants in nation building and development”. This
statement is included in what section of the Act?
a. Short title
b. Declaration of policy
c. Objectives
d. Scope of practice
3. The primary duty to enforce the provision of RA 9298 and its IRR rests with
a. The PRC
b. The FRSC
c. The BOA
d. The AASC
4. Which of the following is not one of the main objectives of the Philippine Accountancy Act of
2004?
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. The prescription and/or adoption of a Code of Ethics for the practice of accountancy
5. Any person who shall violate any of the provision of the Act or any of its implementing rules and
regulations promulgated by the BOA subject to the approval of the PRC, shall upon conviction, be
punished by
a. Lethal injection
b. A fine of not more than P50,000
c. Imprisonment for a period not exceeding two years
d. A fine of not less than P50,000 or by imprisonment for a period not exceeding 2 years or
both
6. The following are qualifications of applicants for the CPA licensure examination, except
a. Must be a Filipino citizen
b. Must be of good moral character
c. Must be a holder of the degree of BS Accountancy
d. Must be at least 21 years old
7. The following documents shall be submitted by applicants for the CPA licensure examination,
except
a. Transcript of records with indication therein the date of graduation and Special order
number unless it is not required
b. Certificate of Live Birth in National Statistics Office (NSO) security paper
c. Marriage contract in NSO security paper for married female applicants
d. Baptismal certificate
8. The following statements relate to the rating in the CPA exams. Identify the false statement.
a. A candidate must have a general weighted average of at least 75% with no grades lower
than 65% in any given subjects in order to pass the CPA exam.
b. In the event a candidate obtains a rating of 75% an above in at least majority of the
subjects, he/she shall receive conditional credit for the subjects passed.
c. A candidate who receives a conditional credit shall take an examination on the remaining
subjects within 2 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 re-examined and at least
65% in each of the subjects re-examined.
9. Which of the following is a correct statement?
a. The Certificate of Registration issued to successful examinees is renewable every three
years.
b. The Professional Identification Card issued to successful examinees shall remain in full
force and effect until withdrawn, suspended or revoked.
c. The BOA, may after the expiration of three years from the date of revocation of a
Certificate of Registration, reinstate the validity of a revoked Certificate of Registration.
d. Those who failed to renew professional licenses for a period of five continuous years
from initial registration, or from last renewal shall be declared delinquent.
10. Practice of Public Accountancy shall constitute in a person (choose exception)
 a. Rendering professional services to more than one client on a fee basis
b. Offering services for the design, installation, review and revision of accounting systems
and controls, or the preparation and/ or review of income tax returns when related to
accounting and auditing procedures
c. When he/she represents his/her clients before government agencies on tax and
accounting matters
d. When he/she represents his/her employer before government agencies on tax and
accounting matters and such employment or position requires that the holder thereof
must be a certified public accountants.
11. Which of the following is incorrect regarding Republic Act 9298
a. Its ultimate basis is the Constitution of the Philippines.
b. The primary duty to enforce its provisions, including its IRR rests with BOA.
c. It is also known as the Revised Accountancy Law.
d. It was made into law in 2014.
12. Which of the following statements is correct?

I. Violators of RA 9298 may be brought before the PRC, the BOA or other offices of the law
mentioned in the Act.

II. Punishment for violation of RA 9298 shall be a fine of not less than P50,000 or by
imprisonment for a period not exceeding 2 years or both.

III. Only CPAs may report cases of illegal practice or violators of RA 9298 committed by any
person or party.

a. I and II only
b. I and III only
c. II and III only
d. I, II, and III
13. Which of the following statements about the composition of the BOA is incorrect?
a. It shall be composed of a chairman and 6 members.
b. The members shall be appointed by the President of the Philippines.
c. The four sector in the practice of accountancy shall as much as possible be equally
represented in the BOA.
d. If the PICPA 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 BOA, shall
submit to the President a list of 3 nominees for each vacant position.
14. Which of the following is one of the qualifications of the members of the BOA?
a. Must be a natural-born CPA
b. Must not be a member PICPA at the time of appointment
c. Must not have been convicted of political offense
d. Must be a CPA with at least 10 years of experience in any scope of practice of
accountancy
15. Which statement is correct regarding the term of office of the chairman and the members of the
Board of Accountancy?
a. The chairman and members of the Board shall hold office for a term of 12 years.
b. The vice chairman shall serve as BOA members for 1 year, subject to reappointment.
c. No person who has served two (2) successive complete terms shall be eligible for
reappointment until the lapse of 1 year.
d. A person may serve the BOA for not more than 12 terms.
e. A member of the BOA may serve for 9 consecutive years.
16. The following are qualifications of applicants for the CPA licensure examination, except
a. Must be a Filipino citizen
b. Must not be convicted of any criminal offense involving moral turpitude
c. Must be at least 21 years old
d. Must be a holder of degree of Bachelor of Science in Accountancy
17. The following documents shall be submitted by applicants for the CPA licensure examination,
except:
a. Transcript of records with indication therein of date of graduation and Special Order
Number unless it is not required
b. Certificate of live birth in National Statistics Office (NSO) security paper
 c.
College diploma with indication therein of date of graduation and Special Order Number
unless it is not required
d. Marriage contract in NSO security paper for all applicants
18. Which of the following is correct regarding the scope of the CPA Examination?

I. The licensure examination for CPAs shall be limited to TOA, BLT, MS, AT, PA1 and PA2.

II. The BOA, subject to the approval of the PRC, may revise or exclude any of the subjects
and their syllabi, and add new ones as the need arises. Provided, that the change shall
not be more often than every 3 years.

a. I only
b. II only
c. Both I and II
d. Neither I nor II
19. Which of the following is correct regarding the ratings in the CPA Examination?
a. If the event a candidate obtains the rating of 75% and above in at least a majority of the
subjects, he/she shall receive conditional credit for the subjects failed.
b. Conditioned examinees shall take an examination in the remaining subjects within a year
from the preceding examination.
c. If a conditioned candidate fails to obtain at least a general average of 75% and a rating of
at least 65% in each of the subjects re-examined, he/she be considered as failed in two
complete examinations.
d. Any candidate who fails in 2 complete examinations shall be disqualified from taking
another set of examinations unless he/she has completed at least 24 units of subjects
given in the licensure examination.
20. On the report of ratings, which of the following is correct?
a. The PRC shall mail the report of rating of each successful examinee only at his/her given
address using the mailing envelope submitted during the examination.
b. The report of rating may be distributed to all examinees during the mass oath taking of
the newly registered CPAs.
c. The report of ratings shall be submitted by the BOA to the PRC with 10 working days
after the examination.
d. The accounting profession was the first among the professions to achieve full
computerization of licensure examinations.
21. Which of the following is incorrect regarding “oath”?
a. It is required for all successful candidates in the examination.
b. It shall be before any BOA member, or any government official authorized by the PRC or
law to administer oaths.
c. It is required for CPAs admitted in the practice of accountancy in the Philippines without
examination under international agreements.
d. It is not required for CPAs admitted in the practice of accountancy in the Philippines
without examination under reciprocity.
22. Which of the following is correct regarding the roster of CPAs?
a. It shall be prepared and updated by the PRC.
b. The BOA may delegate the preparation of the roster to the PRC.
c. The roster needs to be published in the official gazette.
d. It shows names and place of business of all registered CPAs.
23. The BOA 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
24. The professional accountant shall be required to indicate all of the choices below on the
documents he/she signs, uses or issues in connection with the practice of his/her profession.
Which is the exception?
a. Business contact number
b. COR number
c. PIC number with date of issuance and validity
d. Professional Tax Receipt number
25. Which of the following is correct regarding the Certificate of Registration?
 a. It shall be issued to successful examinees, or those who are admitted without
examination under reciprocity or other international agreements and exempt from
payment of fees prescribed by the PRC.
b. It shall bear the registration number, date, of issuance and expiry date.
c. It shall be subject to annual registration fees and renewed every after 3 years.
d. It shall bear the signature of the PRC Chairman, BOA Chairman and its members,
stamped with the official seal of the PRC and the BOA.
26. Which of the following cannot be found in the Professional Identification Card issued to every
registered CPA?
a. Date of issuance
b. Expiry date
c. Registration number
d. Signature of the BOA and PRC chairperson
27. Which of the following is correct?
a. A revoked COR may be reinstated by the BOA within 2 years from the date of revocation.
b. A revoked COR must be reinstated by the BOA after 2 years from the date of revocation.
c. Lost, destroyed or mutilated COR cannot be replaced with a new COR.
d. On reinstatement of a revoked COR, the Boa may exempt the application from taking
another examination.
28. It refers to a certified public accountant engaged in the practice of public accountancy under
his/her name, by himself/herself only or with one or more staff members.
a. Individual CPA
b. CPA
c. Practitioner
d. Professional accountant
29. It refers to an organization engaged in the practice of public accountancy, consisting of a sole
proprietor, either alone or with one or more staff members.
a. Firm
b. Individual CPA
c. Corporation
d. Network firm
30. As defined by the Act, it refers to a CPA employed by an individual CPA, Firm or Partnership
engaged in the practice of public accountancy, below the rank of the Individual CPA, sole
proprietor or partner as the case may be.
a. Staff member
b. Assistant
c. Auditor
d. Associate
31. On the practice of public accountancy, which of the following is incorrect?
a. From the effectivity of RA 9298, Certificate of Accreditation shall be issued to CPAs in
public practice who acquired a minimum of 3 years meaningful experience in any of the
areas of public practice, including taxation.
b. Partnerships in public practice may be formed as general partnership or a limited liability
partnership.
c. The SEC shall not be register any corporation organized for the practice of public
accountancy.
d. Sole proprietorships shall be registered with the SEC.
32. Any position in any business or company in the private sector which requires supervising the
recording of financial statements, coordinating with external auditors for the audit of such
financial statements and other related functions shall be occupied only a by duly registered CPA if
the business or company where the above position exists has
a. A paid up capital of at least P5M
b. An annual revenue of at least P5M
c. A total asset of at least P10M
d. A paid up capital of at least P10M
33. The minimum meaningful experience required in public accountancy by RA 9298 shall include:
a. At least 1 year as audit assistant and at least 1 year as auditor in charge
b. At least 1 year as audit assistant and 2 years as auditor in charge
c. At least 2 years as audit assistant and at least 2 years as auditor in charge
d. At least 2 years as audit assistant and at least 1 year as auditor in charge
34. For every CPE seminars or conventions attended, moderator CPAs shall be present for how
many hours to earn 10 credit units?
 a. 2 hours
b. 5 hours
c. 3.33 hours
d. 10 hours
35. Which of the following is incorrect on credit units?
a. A minimum of 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. One credit hour of CPE program, activity or source shall be equivalent to one credit unit
d. No excess credit units shall be carried to the next three year period.
36. Which of the following statement is correct?
a. Permanent exemptions from CPE requirements shall be granted to all CPA who reached
60 years old.
b. Temporary exemptions from CPE requirements shall be granted to all CPAs who are
abroad for a year prior to the renewal of the license.
c. Foreign accountants may practice accountancy in the Philippines anytime.
d. Credit units in graduate and post graduate degree may be carried forward to the next 3-
year period.
37. Which of the following is correct regarding the FRSC?
a. It is composed of 15 members and a chairman.
b. Its chairman should have been or presently a senior accounting practitioner in public
accountancy.
c. Its chairman and members shall be appointed by the BOA upon the recommendation of
the PRC.
d. It is created within 90 days from the effectivity of the IRR to RA 9298.
38. Which of the following is incorrect regarding the AASC?
a. It is composed of 15 members with a chairman.
b. It is created by the PRC upon the recommendation of the BOA.
c. The BIR is not represented in the Council.
d. The APO from public practice shall have 5 representatives.
39. Which of the following is incorrect regarding the QRC?
a. It is created to conduct an oversight into the quality of audit of financial statements
through a review of the quality control measures instituted by Individual CPAs, firms or
Partnerships
b. It shall be composed of 7 members with a chairman
c. Its chairman and members are appointed by the PRC and shall have a renewable term of
3 years.
d. QRC stands for Quality Review Council.
41. Which of the following forms of evidence would be least persuasive in forming the auditor’s
opinion?
a. Responses to auditor’s questions by the president and controller regarding the
investment account.
b. Correspondence with a stockbroker regarding the quantity regarding the quantity of
client’s investment held in street name by the broker.
c. Minutes of the board of directors authorizing the purchase of stocks as an investment.
d. The auditor’s count of marketable securities.
42. Which of the following types of audit evidence is the most persuasive?
a. Pre-numbered client purchase order forms
b. Client work sheets supporting cost allocations
c. Bank statements obtained from the client
d. Client representation letter
43. When the auditor is gathering evidence, if the source of the evidence is independent of the client,
the auditor will conclude that the evidence is
a. Not reliable
b. Reliable
c. Not reliable unless the provider is qualified to provide the evidence
d. Reliable if the provider has no reason to be biased
44. The primary purpose of sending a standard confirmation request to financial institutions with
which the client has done business during the year is to
 a. Corroborate information regarding deposit and loan balances
b. Provide the data necessary to prepare a proof of cash
c. Detect kiting activities that may otherwise not be discovered
d. Request information about contingent liabilities and secured transactions
45. Which of the following is confirmed on the standard confirmation form used for cash balancesat
financial institution?
a. Factored accounts receivable
b. Loss contingencies
c. Loans payable
d. Safe deposit boxes controlled by the entity
46. An auditor most likely would limit substantive audit tests of sales transactions when control risk is
assessed as low for the existence or occurrence assertion concerning sales transactions and the
auditor has already gathered evidence supporting
a. Opening and closing inventory balances
b. Cash receipts and accounts receivables
c. Shipping and receiving activities
d. Cutoff of sales and purchases
47. A cash shortage may be concealed by transporting funds from one location to another or by
converting negotiable assets to prevent
a. Theft
b. Irregular endorsement
c. Deposits in transit
d. Substitution
48. Confirmation is most likely to be relevant form of evidence with regard to assertions about
accounts receivable when the auditor has concerns about the receivables’
a. Valuation
b. Classification
c. Existence
d. Completeness
49. In determining validity of accounts receivables, which of the following would the auditor consider
to be the most reliable?
a. Documentary evidence that supports the accounts receivable
b. Credits to accounts receivable from the cash receipts book after the close of business at
year-end
c. Direct telephone communication between the auditor and debtor
d. Confirmation replies received directly from customers
50. Analysis of which account is least likely to reveal evidence relating to recorded retirement of
equipment?
a. Accumulated depreciation
b. Insurance expense
c. Property, plant and equipment
d. Purchase returns and allowances
51. In testing for unrecorded retirements of equipment, an auditor most likely would
a. Select items of equipment from the accounting records and then locate them during the
plant tour
b. Compare depreciation journal entries with similar prior year entries in search of fully
depreciated equipment
c. Inspect items of equipment observed during the plant tour and then trace them to the
equipment subsidiary ledger
d. Scan the general journal for unusual equipment additions and excessive debits to repairs
and maintenance expense
52. Testing for overstatement of repairs expense for equipment requires examination first of the
a. Equipment
b. Depreciation
 c. Cash
d. Repairs expense
53. Which statement is incorrect when auditing in a CIS environment?
a. A CIS environment exists when a computer of any type or size is involved in the
processing by the entity of financial information of significance to the audit, whether that
computer is operated by the entity or by a third party.
b. The auditor should consider how a CIS environment affects the audit.
c. The use of a computer changes the processing, storage and communication of
financial information and may affect the accounting and internal control systems
employed by the entity.
d. A CIS environment changes the overall objective and scope of an audit.
54. General CIS controls may include, except:
a. Organization and management controls.
b. Delivery and support controls.
c. Development and maintenance controls.
d. Controls over computer data files.
55. CIS application controls include, except
a. Controls over input.
b. Controls over processing and computer data files.
c. Controls over output.
d. Monitoring controls.
56. The applications of auditing procedures using the computer as an audit tool refer to
a. Integrated test facility
b. Auditing through the computer
c. Data-based management system
d. Computer assisted audit techniques
57. Which statement is incorrect regarding CAATs?
a. CAATs are often an efficient means of testing a large number of transactions or
controls over large populations.
b. To ensure appropriate control procedures, the presence of the auditor is not necessarily
required at the computer facility during the running of a CAAT.
c. The general principles outlined in PAPS 1009 apply in small entity IT environments.
d. Where smaller volumes of data are processed, the use of CAATs is more cost effective.
58. It consists of generalized computer programs designed to perform common audit tasks or
standardized data processing functions.
a. Package or generalized audit software
b. Utility programs
c. Customized or purpose-written programs
d. System management programs
59. A control procedure that could be used in an on-line system to provide an immediate check on
whether an account number has been entered on a terminal accurately is a
a. Compatibility test
b. Record count
c. Hash total
d. Self-checking digit
60. A control designed to catch errors at the point of data entry is
a. Batch total
b. Self-checking digit
c. Record count
d. Checkpoints