1.

Act 9298 is known as the

a. Revised accountancy law
b. Code of ethics for professional accountants
c. Philippine accountancy act of 2004
d. Philippine accountancy law of 2004

2. Which of the following engagements provides third parties the highest level of assurance about
the client’s financial statements?
a) Audit
b) Review
c) Agreed-upon procedures
d) Compilation
3. Which statement is incorrect regarding the pronouncements of ASPC?
a) The PSAs and Interpretations may also have application, as appropriate, to other related
activities of auditors.
b) PSAs contain basic principles and essential procedures (identified in bold type black
lettering) together with related guidance in the form of explanatory and other
material.
c) PSAs need only be applied to material matters.
d) The Interpretations have the same authority as the PAPSs.

4. A study, appraisal, or review by the BOA or its duly authorized representatives, of the quality of
audit of financial statements through a review of the quality control measures instituted by an Individual
CPA, Firm or Partnership of CPAs engaged in the practice of public accountancy.
a) Peer review
b) Quality review
c) Analytical review
d) Administrative review

5. Among, CPA is applying for renewal of his professional license. He is exempted from the
CPE requirements
A.If he is at least 65 years old.
B. If he is working abroad and he has been out of the country for at least two years immediately prior
to the date of renewal.
C. Either a or b.
D. Under no circumstances.

6. The following statements relate to 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. Insanity is not a ground for proceeding against a CPA.
C. A person shall be considered to be in the professional practice of accounting if, as an officer in a
private enterprise, he makes decisions requiring professional accounting knowledge.
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the reinstatement of a CPA whose certificate of registration has been revoked.

7. There is a need for assurance that all services obtained from a professional accountant are carried
out to the highest standards of performance. This statement relates to
A.Credibility
B. Professionalism
 C. Quality of Services
D. Confidence

8. Which of the following is not an objective of the Philippine Accountancy Act of 2004?
a) The standard 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 development and improvement of accounting standards that will be generally accepted in the
Philippines

9. The practice of accountancy includes

I. Practice of Public Accountancy
II. Practice in Commerce and Industry
III. Practice in Education/Academe
IV. Practice in the Government
a) I, II, and IV only
b) II, III, and IV only
c) I, II, and III only
d) I, II, III and IV

10. Which of the following is the most appropriate action to be taken by a CPA who has been asked to
perform a consulting services engagement concerning the analysis of a potential merger if he/she has a
little experience with the industry involved?

a. Accept the engagement but he/she should conduct research or consult with others to obtain
sufficient competence.
b. Decline the engagement because he/she should lacks sufficient knowledge.
c. Accept the engagement and issue a report that contains his/her opinion on the achievability of the
results of the merger.
d. Accept the engagement and perform it in accordance with Philippine Standards on Auditing
(PSAs).

11. Which of the following engagements does not require compliance with independence requirements?

a. Compilation of financial information.

b. Review of financial statements.
c. Examination of prospective financial information.
d. Audit of financial statements.

12. The Board of Accountancy shall be composed of a chairman and ___ members to be appointed by the
_______.

a. 6, President of the Philippines

b. 5, President of the Philippines
c. 6, Professional Regulation Commission (PRC)
d. 5, Philippine Institute of CPAs (PICPA)

13. Each page of the financial information compiled by the accountant should include the following
reference, except

a. "Unaudited"
b. "Refer to compilation report"
 c. "Compiled without Audit or Review"
d. "Compiled, Negative Assurance Expressed"

14. Assurance services differ from consulting services in that they

I. Focus on providing assurance

II. Involve monitoring one party by another
a. I only
b. II only
c. Both I and II
d. Neither I nor II

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

a. Represents his/her employer before government agencies on tax and other matters related
to accounting.
b. Represents his/her clients before government agencies on tax and other matters related to
accounting.
c. Teaches accounting, auditing, management advisory services, accounting aspect of finance,
business law, taxation, and other technically related subjects.
d. Holds, or is appointed to, a position 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.

16. Section 5 of the Accountancy Act of 2004 states that the Board of Accountancy shall be composed of
a Chairman and

a) 2 members
b) 4 members
c) 6 members
d) 8 members

17. When an auditor increases the planned assessed level of control risk because certain controls were
determined to be ineffective, the auditor would most increase the

a) Extent of test of details.

b) Level of inherent risk.
c) Extent of test of controls.
d) Level of detection risk.

18. Which of the following procedures would an auditor most likely perform to test controls relating to
management’s assertion concerning the completeness of sales transactions?

a) Verify that extensions and footings on the entity’s sales invoices and monthly customer
statements have been recomputed.
b) Compare the invoiced prices in prenumbered sales invoices to the entity’s authorized price
list.
c) Inquire about the entity’s credit granting policies and the consistent application of credit
checks.
d) Inspect the entity’s reports of prenumbered shipping documents that have not been recorded in
the sales journal.
19. Under PSA 260, this term is used to describe the role of persons entrusted with the supervision,
control, and direction of an entity.

a) Oversight.
b) Governance.
c) Direction.
d) Control.

20. As used in PSA 250, this term refers to acts of omission or commission by the entity being audited,
either intentional or unintentional, which are contrary to prevailing laws or regulations.

a) Noncompliance
b) Illegal acts
c) Erotic acts
d) Unforgivable acts