RA 9298 [REDSIRUG]

Question 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

Answer 1

D

Question 2

The Philippine Accountancy Act of 2004 shall provide for and govern:
a. The supervision, control, and regulation of the practice of accountancy in the Philippines.
b. The standardization and regulation of accounting education.
c. The examination for registration of certified public accountants.
d. All of the above

Answer 2

D

Question 3

The document that contains the norm and principles governing the practice of the accountancy profession in the highest standards of ethical conduct
a. RA 9298
b. Code of Ethics for CPAs in the Philippines
c. IRR to RA 9298
d. PSA 220 on Quality Control

Answer 3

B

Question 4

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certain conditions, the Board of Accountancy may order the reinstatement of a CPA whose certificate of registration has been revoked.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.

Answer 4

D

Question 5

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)

Answer 5

D

Question 6

The area of practice of accountancy namely public accountancy, commerce and industry, academe / education and government are called:
a. Sectors
b. Scope of practice of accountancy
c. Section
d. Segment

Answer 6

A

Question 7

As used in RA 9298, this term refers to the area of practice of accountancy:
a. Segment
b. Line
c. Sector
d. Section

Answer 7

C

Question 8

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

Answer 8

C

Question 9

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.

Answer 9

B

Question 10

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.

Answer 10

B

Public accountancy

Question 11

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.

Answer 11

B

Question 12

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. 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.

Answer 12

A

Question 13

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.

Answer 13

B

Question 14

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.

Answer 14

D

Question 15

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

Answer 15

C

Question 16

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.

Answer 16

D

Question 17

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.

Answer 17

C

Question 18

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.

Answer 18

B

Question 19

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

Answer 19

D

Question 20

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
b. Dec. 31, 2007
c. Dec. 31, 2008
d. Aug. 30, 2007

Answer 20

B

Question 21

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

Answer 21

B

Question 22

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
b. 2 years
c. 3 years
d. Indefinite period of time

Answer 22

B

Question 23

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.

Answer 23

C

Question 24

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.

Answer 24

A

Question 25

No person shall serve the Professional Regulatory Board of Accountancy for more than: a. 3 years b. 6 years c. 9 years d. 12 years

Answer 25

D

Question 26

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.

Answer 26

C

Question 27

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.

Answer 27

A

Question 28

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.

Answer 28

C

Question 29

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.

Answer 29

D

Question 30

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.

Answer 30

B

Question 31

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.

Answer 31

D

Question 32

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.

Answer 32

C

Question 33

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.

Answer 33

D

Question 34

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.

Answer 34

C

Question 35

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

Answer 35

D

Question 36

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

Answer 36

C

Question 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

Answer 36

B

Question 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

Answer 37

B

Question 37

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.

Answer 37

D

Question 38

The Board of Accountancy shall elect a vice-chairman from among its members for a term of a. Two (2) years b. One (1) year c. Three (3) years d. Five (5) years

Answer 38

B

Question 39

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

Answer 39

C

Question 40

The Financial Reporting Standards Council shall be composed of a. 8 members b. 14 members c. 15 members d. 17 members

Answer 40

C

Question 41

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)

Answer 41

A

Question 42

The Auditing and Assurance Standards Council (AASC) shall be composed of a. 8 members b. 14 members c. 15 members d. 17 members

Answer 42

C

Question 43

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)

Answer 43

A

Question 44

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

Answer 44

B

Question 45

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

Answer 45

C

Question 46

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)

Answer 46

D

Question 47

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.

Answer 47

C

Question 48

The sector that is most represented in the AASC is the: a. Commerce and Industry b. Academe c. Public Practice d. Government

Answer 48

C

Question 49

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.

Answer 49

C

Question 50

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.

Answer 50

D

Question 51

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.

Answer 51

B

Question 52

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.

Answer 52

D

Question 53

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

Answer 53

B

Question 54

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

Answer 54

D

Question 55

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.

Answer 55

B

Question 56

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.

Answer 56

B

Question 57

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 oh 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.

Answer 57

B

Question 58

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

Answer 58

D

Question 59

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

Answer 59

C

Question 60

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.

Answer 60

A

Question 61

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.

Answer 61

D

Question 62

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.

Answer 62

D ## Footnote A candidate who gets a conditional credit and takes an examination on the remaining subjects must get an average of at least 75% and at least 65% in each of the subjects reexamined.

Question 63

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.

Answer 63

B

Question 64

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.

Answer 64

B

Question 65

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.

Answer 65

C

Question 66

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.

Answer 66

B

Question 67

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

Answer 67

A

Question 68

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 b. Peer review c. Compliance audit d. External audit

Answer 68

A

Question 69

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)

Answer 69

A

Question 70

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.

Answer 70

D

Question 71

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. 60 credit units in three years b. 45 credit units in three years c. 30 credit units in three years d. 15 credit units in three years

Answer 71

A

Question 72

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.

Answer 72

A

Question 73

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.

Answer 73

B

Question 74

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.

Answer 74

B

Question 75

How many CPE credit units must be accumulated by a registered accounting professional within the 3-year period? a. 15 credit units b. 45 credit units c. 60 credit units d. 90 credit units

Answer 75

C

Question 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.

Answer 76

C

Question 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.

Answer 77

A

Question 78

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

Answer 78

B

Question 79

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. Continuing Professional Education c. Continuing Professional Development d. Professional Growth and Development

Answer 79

B

Question 80

The PRC CPE Council shall assist the BOA in implementing its CPE program. Which of the following statements is incorrect concerning the Council's composition? a. The PRC CPE Council shall be composed of a chairperson and two (2) members. b. The Chairperson shall be chosen from among the members of the BOA by the PRC. c. The first member shall be the President or, in his/her absence or incapacity, any officer chosen by the Board of Directors of PICPA. d. The second member shall be the President or, in his/her absence or incapacity, any officer of the organization of Deans or Department Heads of schools, colleges or universities offering the degree requiring licensure examination.

Answer 80

B

Question 81

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 b. Three years c. Two years d. One year

Answer 81

C

Question 82

Rodz, 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

Answer 82

C

Question 83

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.

Answer 83

D

Question 84

Which of the following statements concerning the issuance of Certificates of Registration and Professional Identification Cards to successful examinees is correct? a. The Certificate of Registration issued to successful examinees is renewable every three (3) years. b. The Professional Identification Card issued to successful examinees shall remain in full force and effect until withdrawn, suspended or revoked in accordance with RA 9298. c. The BOA shall not register and issue a Certificate of Registration and Professional Identification Card to any successful examinee of unsound mind. d. The BOA may, after the expiration of three (3) years from the date of revocation of a Certificate of Registration, reinstate the validity of a revoked Certificate of Registration.

Answer 84

C

Question 85

Which of the following statements concerning ownership of working papers is incorrect? a. All working papers made by a CPA and his/her staff in the course of an examination remain the property of such CPA in the absence of a written agreement between the CPA and the client to the contrary. b. Working papers include reports submitted by a CPA to his/her client. c. Working papers include schedules and memoranda prepared and submitted by the client of the CPA. d. Working papers shall be treated confidential and privileged unless such documents are required to be produced through subpoena issued by any court, tribunal, or government regulatory or administrative body.

Answer 85

B

Question 86

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.

Answer 86

B

Question 87

A special/temporary permit may be issued by the Board of Accountancy (BOA) to the following persons, except a. A foreign CPA engaged as professor, lecturer or critic in fields essential to accountancy education in the Philippines and his/her engagement is confined to teaching only. b. A foreign CPA called for consultation or for a specific purpose which, in the judgment of the BOA, is essential for the development of the country regardless of whether there are Filipino CPAs who are qualified for such consultation or specific purposes. c. A foreign CPA who is an internationally recognized expert or 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 called for consultation or for a specific purpose which, in the judgment of the BOA, is essential for the development of the country and that there is no Filipino CPA qualified for such consultation or specific purposes.

Answer 87

B

Question 88

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 statementsconcerning 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 appro-priate 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.

Answer 88

C

Question 89

The following documents are to be submitted by a foreign applicant whose letter/document and the copy of the law on foreign reciprocity of his/her country/state are satisfactory to the BOA, except a. The original or certified copy of any official documents issued by the Bureau of Immigration and Deportation allowing the applicant to enter and reside in the Philip pines. b. Certificate of Registration or its equivalent stating that the foreign applicant is duly registered or licensed CPA or its equivalent in his/her country/state. c. Certificate of Religious Affiliation. d. Original or authenticated copy of transcript of records or equivalent document of the course for licensure examination where he/she studied duly authorized or accredited by his/her country/state.

Answer 89

C

Question 90

Any person who shall violate any of the provisions of the Philippines Accountancy Act or any of its IRR promulgated by the Board of Accountancy 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 two years or both

Answer 90

D

Question 91

The following statements relate to roster of CPAs. Identify the incorrect statement. a. A roster showing the names and place of business of all registered CPAs shall be prepared and updated by the Board. b. Copies of the roster shall be made available to any party as may be deemed necessary. c. The Board, upon approval of the Commission, may delegate the preparation of this roster to the APO. d. The publication of the roster in the official gazette or in any major news paper of public circulation shall be deemed compliance with the requirement of RA 9298.

Answer 91

D

Question 92

The PICPA shall renew its certificate of accreditation once every: a. Two years b. Three years c. four years d. five years

Answer 92

C

Question 93

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.

Answer 93

B

Question 94

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 chair man 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.

Answer 94

D

Question 95

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.

Answer 95

A

Question 96

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 newspapers of general circulation. b. Any person who shall violate any of the provisions of RA No. 9298 or the IRR shall upon conviction, be punished by a fine of not more than P50,000.00 or by imprisonment for a period not exceeding 2 years or both. c. The board may 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 RA 9298 or until May 2006.

Answer 96

B ## Footnote Not less than P50,000

Question 97

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.

Answer 97

C

Question 98

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.

Answer 98

D

Question 99

The death or disability of an individual CPA and/or the dissolution and liquidation of a firm or partnership of CPAs shall be reported to the BOA not later than days from the date of such death, dissolution or liquidation. a. 15 b. 30 c. 60 d. 90

Answer 99

B

Question 100

Which of the following has the power to conduct an oversight into the quality of audits of financial statements through the review of the quality control measures instituted by auditors? a. Bureau of Internal Revenue b. Securities and Exchange Commission c. Board of Accountancy d. Insurance Commission

Answer 100

C

Question 101

In the exercise of its power to conduct an oversight into the quality of audits, the BOA organized the Department of the Philippine Institute of Certified Public Accountants (PICPA) to conduct an independent study, appraisal, or review of the quality of audit of financial statements. a. Quality Control Review b. Quality Assurance Review c. Independent Quality Assurance Review d. Independent Quality Control Review

Answer 101

B

Question 102

The operation of the Quality Assurance Review Department (QARD) of the PICPA shall be supervised by a/an a. Oversight Committee b. Executive Committee c. Supervisory Board d. Accountability Board

Answer 102

B

Question 103

The Head of the QARD who will be appointed by the Executive Committee is the a. Chief Inspector b. Chief of Administration c. Chief Auditor d. Chief Quality Assurance Reviewer

Answer 103

A

Question 104

Which of the following is an incorrect qualification of the Chief Inspector of the QARD? a. Must have at least 5 years experience in the practice of public accountancy. b. Must be of good moral character. c. Must not have been found guilty of violating any professional, ethical and regulatory auditing standards. d. Must have reached the level of senior manager or partner of an accounting firm that has among its clients, publicly listed entities.

Answer 104

A

Question 105

Who is responsible for the non-technical aspect of the QAR program? a. Chief Inspector b. Chief of Administration c. Assistant to the Chief Inspector d. Chairman of the Executive Committee

Answer 105

B

Question 106

The QAR program covers all CPAs in a. Public Accounting b. Government c. Education/Academe d. Commerce and Industry

Answer 106

A

Question 107

What is the required minimum number of CPE credit units that an accounting teacher shall earn in each year prior to renewal of accreditation? a. 15 units b. 20 units c. 10 units d. No minimum number of credit units required

Answer 107

A

Question 108

The Certificate of Accreditation issued by the PRC to an accounting teacher shall a. Be valid for 2 years and renewable every 2 years. b. Be valid initially for 3 years and renewable annually. c. Remain in full force and effect unless revoked, cancelled or withdrawn. d. Be valid for 3 years and renewable every 3 years.

Answer 108

D