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Theory of Accounts > THE PHILIPPINE ACCOUNTANCY ACT OF 2004 (RA 9298) > Flashcards

THE PHILIPPINE ACCOUNTANCY ACT OF 2004 (RA 9298) Flashcards

1
Q

Which of the following is not among the qualifications of a member of the Board of Accountancy?

a. He/She must have at least 10 years of experience in the practice of public accountancy.
b. He/She must be a natural-born Filipino citizen and a resident of the Philippines.
c. He/She must not be a director or officer of the accredited national professional organization at the time of appointment.
d. He/She must be of good moral character.

A

a. He/She must have at least 10 years of experience in the practice of public accountancy.

Must be a duly registered Certified Public Accountant with a least
ten (10) years of work experience in any scope of practice of accountancy.

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2
Q

Which of the following is not represented in the Auditing and Assurance Standards Council?

a. Board of Accountancy
b. Bureau of Internal Revenue
c. Commission on Audit
d. Securities and Exchange Commission

A

b. Bureau of Internal Revenue

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3
Q

Which of the following best describes the function of the Auditing and Assurance Standards Council?

a. To monitor full compliance by auditors to PSAs.
b. To promulgate rules concerning the practice of the accountancy profession.
c. To promulgate auditing standards, practices, and procedures that shall be generally accepted by the accounting profession in the Philippines.
d. To undertake continuing research on both auditing and financial accounting in order to make them responsive to the needs of the public.

A

c. To promulgate auditing standards, practices, and procedures that shall be generally accepted by the accounting profession in the Philippines.

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4
Q

The following are the qualifications of applicants for the CPA Board Exam in accordance with RA 9298, except

a. BS Accountancy degree holder
b. He must of good moral character.
c. He must not been convicted of any criminal offense involving moral turpitude.
d. He must be a natural-born Filipino citizen.

A

d. He must be a natural-born Filipino citizen.

Filipino citizen only
natural-born Filipino citizen - for BOA member

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5
Q

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

a. To issue, suspend, revoke, or reinstate the Certificate of Registration for the practice of the accountancy profession.
b. To supervise the registration, licensure and practice of accountancy in the Philippines.
c. To prescribe and/or adopt a Code of Ethics for the practice of accountancy.
d. To convict any CPA accused of crime punishable by RA 9298.

A

d. To convict any CPA accused of crime punishable by RA 9298.

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6
Q

Which of the following statements concerning the different practices of the accountancy profession is incorrect?

a. Members of the Integrated Bar of the Philippines are prohibited from teaching taxation subjects.
b. Practice in the Government includes working in government-owned and/or controlled corporations, including those performing proprietary functions where a civil service eligibility as a CPA is a prerequisite.
c. The practice of accountancy is not limited to Public Practice, Private Practice, Government Practice, and Academe.
d. Public practice includes a person, be in his/her individual capacity, or as a partner or staff member in an accounting or auditing firm, holding out himself or herself as one skilled in the knowledge, science, and practice of accounting, and as a qualified person to render professional services as a certified public accountant.

A

a. Members of the Integrated Bar of the Philippines are prohibited from teaching taxation subjects.

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7
Q

Which of the following statements concerning the Board of Accountancy is incorrect?

a. It shall be composed of a chairman and six members who shall hold office for a term of 3 years and no person who has served 2 consecutive complete terms shall be eligible for reappointment until the lapse of one year.
b. The chairman and members of the BoA shall be appointed by the PRC Chairperson.
c. The BoA shall elect a vice-chairman from among its members for a term of one year.
d. The chairman and members of BoA shall receive compensation and allowances comparable to that being received by the chairman and members of regulatory boards under the Commission as provided in the General Appropriations Act.

A

b. The chairman and members of the BoA shall be appointed by the PRC Chairperson.

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8
Q

Who has the power to remove or suspend a member of the Board of Accountancy?

a. PRC Chairperson
b. BoA Chairperson
c. President of the Philippines
d. PICPA Chairperson

A

c. President of the Philippines

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9
Q

Which of the following statements concerning the CPA Examination is incorrect?

a. To be qualified as having passed the licensure examination for accountants, a candidate must obtain a weighted general average of seventy-five percent with no grades lower than sixty-five percent in any given subject.
b. A conditional candidate in the board exam shall take the examination of the conditional subject within 3 years from the preceding examination.
c. The Board, 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.
d. The BoA shall submit to the PRC the ratings obtained by each candidate within 10 calendar days after the examination unless extended for just cause.

A

b. A conditional candidate in the board exam shall take the examination of the conditional subject within 3 years from the preceding examination.

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10
Q

When shall a candidate take a refresher course with at least 24 units of the subject given in the licensure examination?

a. Any candidate who fails in one complete CPA Board Examination.
b. Any candidate who fails in three complete CPA Board Examinations.
c. Any candidate who fails in two complete CPA Board Examinations.
d. Any candidate who fails in four complete CPA Board Examinations

A

c. Any candidate who fails in two complete CPA Board Examinations.

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11
Q

Which of the following statements is correct?

a. A professional Identification Card of CPA shall be issued to every CPA passer renewable every two years.
b. The BoA shall have the power to suspend or revoke the practitioner’s CPA or suspend him from practice even without notice and hearing.
c. The BoA may, after the expiration of two years from the date of revocation of a certificate of registration and upon application and for reasons deemed proper and sufficient, reinstate the validity of a revoked certificate of registration.
d. The CPA is allowed to indicate only his/her certificate of the registration number, and date of issuance, duration of validity even without Professional Tax Receipt Number on the documents he/she signs, users, or issues in connection with his practice.

A

c. The BoA may, after the expiration of two years from the date of revocation of a certificate of registration and upon application and for reasons deemed proper and sufficient, reinstate the validity of a revoked certificate of registration.

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12
Q

Any person who shall violate any of the provisions of RA 9298 or any of its IRRs, shall upon conviction, be punished by a

a. Fine of not less than 50,000 or by imprisonment for a period not exceeding 2 years or both.
b. Fine of not more than 50,000 or by imprisonment for a period exceeding 2 years or both.
c. Fine of not less than 100,000 or by imprisonment for a period not exceeding 3 years or both.
d. Fine of not more than 100,000 or by imprisonment for a period exceeding 3 years or both.

A

a. Fine of not less than 50,000 or by imprisonment for a period not exceeding 2 years or both.

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13
Q

Which of the following accredited national professional organization of CPAs shall be predominantly represented in the Auditing and Assurance Standards Council?

a. ACPACI
b. ACPAPP
c. ACPAE
d. GACPA

A

b. ACPAPP

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14
Q

The following are the grounds for suspension or removal of members of the Board of Accountancy, except

a. Neglect of duty or incompetence
b. Violation or tolerance of any violation of RA 9298, its IRRs, and the CPA’s Code of Ethics
c. Charge or accusation of crimes involving moral turpitude
d. Manipulation or rigging of the CPA’s licensure examination results, disclosure of secret and confidential information in the exam.

A

c. Charge or accusation of crimes involving moral turpitude

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15
Q

The following documents shall be submitted by all applications for the CPA board exam, except

a. National Bureau of Investigation clearance
b. Baccalaureate Transcript of Records with indication therein of date of graduation
c. College Diploma with indication therein of graduation
d. Marriage Contract in NSO Security paper

A

d. Marriage Contract in NSO Security paper

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16
Q

Which of the following shall not be considered as a public practice?

a. Performing audit or verification of financial transactions and accounting records.
b. Representing clients before government agencies on tax and other matters related to accounting.
c. Teaching of accounting, auditing, management advisory services, accounting aspect of finance business law, taxation, and other technically related subjects.
d. Design, installation, review and revision of accounting system and controls.

A

c. Teaching of accounting, auditing, management advisory services, accounting aspect of finance business law, taxation, and other technically related subjects.

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17
Q

Which of the following business organization is prohibited by RA 9298 for practicing public accountancy in the Philippines?

a. Corporation
b. Partnership
c. Sole proprietorship
d. All are allowed.

A

a. Corporation

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18
Q

When shall an auditor be allowed to disclose confidential and privileged information obtained from a client?

a. When required or requested by the major stockholder of the client.
b. When asked by a bank of the client.
c. When such information is needed by the auditor for its investment interest.
d. When required to be produced through subpoena issued by any court, tribunal or government regulatory body.

A

d. When required to be produced through subpoena issued by any court, tribunal or government regulatory body.

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19
Q

CPAs and firms or partnerships of CPAs engaged in the practice of public accountancy, including partners and staff members, shall register with the PRC and BoA, and such registration shall be renewed

a. Every one year
b. Every three years
c. Every five years
d. Every two years

A

b. Every three years

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20
Q

What is the rule as regards to foreigners who want to practice accountancy in the Philippines?

a. They can never practice accountancy in the Philippines.
b. They may practice accountancy if they pass the CPA Board Examination.
c. They may be allowed to practice accountancy if they study in the Philippines.
d. They may be allowed to practice accountancy if they can prove that Filipino citizens are also allowed to practice accountancy in their country.

A

d. They may be allowed to practice accountancy if they can prove that Filipino citizens are also allowed to practice accountancy in their country.

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21
Q

What is the recognized accredited professional organization of CPAs in the Philippines?

a. Integrated Certified Public Accountants of the Philippines
b. Philippine Organization of Certified Public Accountants
c. Philippine Institute of Certified Public Accountants
d. Philippine Association of Certified Public Accountants

A

c. Philippine Institute of Certified Public Accountants

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22
Q

It is an agency created to conduct oversight into the quality of audit of financial statements through a review of the quality control measures instituted by individual CPAs, Firms of Partnership in order to ensure compliance with accounting and auditing standards and practices.

a. Quality Assurance Review
b. Inspection and Review Agency
c. Quality Inspection Committee
d. Quality Assessment Committee

A

a. Quality Assurance Review

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23
Q

A registered professional or CPA shall be permanently exempted from CPD requirements

a. If he has obtained Doctorate study
b. If he has retired from employment
c. If he is working from government agency
d. If he has reached the age of 65 years old

A

d. If he has reached the age of 65 years old

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24
Q

How many units of CPD must a CPA in practice obtained?

a. 20 CPD units every year
b. 120 CPE units every three years
c. 60 CPD units every year
d. 40 CPD units every two years

A

b. 120 CPE units every three years

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25
Q

What is the sanction for registered CPAs in the practice of accountancy who have not completed the CPD requirements?

a. They shall not be allowed to work in the country.
b. They shall be prohibited from practicing accountancy in the Philippines.
c. Their CPA licenses will be automatically revoked.
d. They shall not be allowed to renew their professional license.

A

d. They shall not be allowed to renew their professional license.

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26
Q

The following are the objectives of the Continuing Professional Development programs, except

a. To make the profession nationalistic.
b. To promote the general welfare of the public.
c. To attain and maintain the highest standards and quality in the practice of his profession.
d. To raise and maintain the professional’s capability for delivering professional services.

A

a. To make the profession nationalistic.

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27
Q

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

A

c. Board of Accountancy

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28
Q

The death or disability of an individual CPA and/or 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 of liquidaton

a. 15 days
b. 30 days
c. 60 days
d. 90 days

A

b. 30 days

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29
Q

A partner surviving the death or withdrawal of all the other partners in a partnership may continue to practice under the partnership name for a period of not more than ____ years after becoming a sole proprietorship.

a. 1
b. 2
c. 3
d. 4

A

b. 2

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30
Q

Which of the following statements is incorrect as regards to the practice of public accountancy?

a. Single proprietorship and partners of partnerships organized for the practice of public accountancy shall be registered CPAs in the Philippines.
b. A partnership engaged in the practice of public accountancy may be carried on in the form of general partnership but not on a limited partnership.
c. A CPA is in public accounting when he/she represents his/her clients before government agencies on tax and other matters related to accounting.
d. The SEC shall not register any corporation organized for the practice of public accountancy.

A

b. A partnership engaged in the practice of public accountancy may be carried on in the form of general partnership but not on a limited partnership.

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31
Q

The Continuing Professional Education (CPE) program mentioned in the IRR shall have the following objectives, except:

a. To promote the general welfare of the public
b. To provide and ensure the continuous education of accountancy students with the latest trends in the profession brought about by modernization and scientific and technological advancement
c. To raise and maintain the professionals capability for delivering professional services
d. To attain and maintain the highest standards and quality in the practice of the profession

A

b. To provide and ensure the continuous education of accountancy students with the latest trends in the profession brought about by modernization and scientific and technological advancement

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32
Q

Which statement is(are) correct regarding CPE requirements for renewal of professional license?
I. The total CPE credit units required for CPAs shall be sixty (60) units for three (3) years, provided that a minimum of fifteen (15) credit units shall be earned in each year.
II. Any excess credit units in one year may be carried over to the succeeding years within the three-year period.
III. Excess credit units earned shall not be carried over to the next three-year period without exception.
IV. A registered professional who is working abroad shall be temporarily exempted from compliance with CPE requirement during his/her stay abroad, provided that he/she is has been out of the country for at least two years immediately prior to the date of renewal.

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

A

c. I, II and IV only

33
Q

Which statement is incorrect regarding CPE requirements for renewal of professional license?

a. The total CPE credit units required for CPAs shall be sixty (60) units for three (3) years, provided that a minimum of fifteen (15) credit units shall be earned in each year.
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 abroad shall be temporarily exempted from compliance with CPE requirement during his/her stay abroad, provided that he/she is has been out of the country for at least one year immediately prior to the date of renewal.
d. Those who failed to renew professional licenses for a period of five (5) continuous years from initial registration, or from last renewal shall be declared delinquent.

A

c. A registered professional who is working abroad shall be temporarily exempted from compliance with CPE requirement during his/her stay abroad, provided that he/she is has been out of the country for at least one year immediately prior to the date of renewal.

34
Q

. How many credit units per hour is (are) earned by a CPA who serves as a resource speaker at a CPE seminar?

a. 1 CU per hour c. 3 CU per hour
b. 5 CU per hour d. 2 CU per hour

A

b. 5 CU per hour

35
Q

Who is not permitted by law to practice public accountancy?

a. A corporation whose stockholders are all CPAs
b. A partnership of CPAs
c. A solo practitioner
d. A partnership of CPAs, with some non-CPA staff

A

a. A corporation whose stockholders are all CPAs

36
Q

Under the IRR of RA 9298, if a partner in a two-member partnership dies, the surviving partner may continue to practice as an individual under the existing firm title which includes the deceased partner’s name

a. For a period of time not to exceed five years.
b. For a period of time not to exceed two years.
c. Indefinitely.
d. Until the partnership payout to the deceased partner’s estate is terminated.

A

b. For a period of time not to exceed two years.

37
Q

I. A meaningful experience shall be considered as satisfactory compliance with the requirements of Section 28 if it is earned in academe/education and shall include teaching for at least three(3) trimesters or two(2) semesters subjects in either financial accounting, business law and tax, auditing problems, auditing theory, financial management and management services. Provided the accumulated teaching experience on these subjects shall not be less than three (3) school years.
II. A meaningful experience shall be considered as satisfactory compliance with the requirements of Section 28 if it is earned in Public Practice and shall include at least one years as audit assistant and at least two years as auditor in charge of the audit engagement covering full audit functions of significant clients.
a. True, False c. False, False
b. False, True d. True, True

A

d. True, True

38
Q

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, it shall file for renewal on or before

a. September 30, 2007 c. December 31, 2007
b. September 30, 2008 d. August 30, 2008

A

a. September 30, 2007

39
Q

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

A

c. Dec. 31, 2007

40
Q

Individual CPAs, Firms or Partnerships of CPAs, including partners and staff members thereof shall register with the BOA and the PRC. If Emong and Bobads, CPAs renewed its accreditation on August 30, 2005, it shall file for renewal on or before

a. September 30, 2007 c. December 31, 2007
b. September 30, 2008 d. August 30, 2008

A

b. September 30, 2008

41
Q

The “CPA Registration Number” shall be engraved in what part of the CPA’s seal?

a. Upper portion of the space between the bigger and smaller circle.
b. Lower portion of the space between the bigger and smaller circle.
c. Left and right portion of the space between the bigger and smaller circle and in the middle of the smaller circle.
d. Middle of the smaller circle.

A

b. Lower portion of the space between the bigger and smaller circle.

42
Q

Affixing the CPA’s seal and signature is an indication of CPA’s

a. Compliance with the requisite accounting and auditing standards and rules.
b. Independence with respect to the entity being audited.
c. Basic competence at the time of signing the document.
d. Collection of the audit fees from the client.

A

a. Compliance with the requisite accounting and auditing standards and rules.

43
Q

Special/temporary permit may be issued by the Board of Accountancy subject to the approval of PRC and payment of the fees the latter has prescribed and charged thereof to the following persons

a. A foreign CPA called for consultation or for a specific purpose which, in the judgment of BOA is essential for the development of the country
b. A foreign CPA engaged as professor, lecturer or critic in fields essential to the accountancy education in the Philippines and his/her engagement is confined to teaching only.
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. All of the above

A

d. All of the above

44
Q

According to the Philippine Accountancy Act of 2004 (RA 9298), any person who shall violate RA 9298 or any of its implementing rules and regulations as promulgated by the Board of Accountancy subject to the approval of the PRC, shall, upon conviction, be punished by a fine

a. not less fifty thousand pesos (P50,000), or by imprisonment for a period not exceeding three (3) years, or both
b. not less one hundred thousand pesos (P100,000), or by imprisonment for a period not exceeding two (2) years, or both
c. not less fifty thousand pesos (P50,000), or by imprisonment for a period not exceeding two (2) years, or both
d. not less one hundred fifty thousand pesos (P150,000), or by imprisonment for a period not exceeding three (3) years, or both

A

c. not less fifty thousand pesos (P50,000), or by imprisonment for a period not exceeding two (2) years, or both

45
Q 
Within \_\_(I)\_\_\_ days after the effectivity of RA 9298, the Board subject to the approval of PRC and in coordination with APO, shall adopt and promulgate such rules and regulations to carry out the provisions of RA 9298 and which shall take effect \_\_(II)\_\_\_\_ days following its publication in the Official Gazette or in any major daily newspapers of general circulation?
	I	II
a.	90	30
b.	60	15
c.	90	15
d.	30	45
A

c. 90 15

46
Q
  1. The primary duty to enforce the provisions of RA 9298 and its IRR rests with
    a. The PRC c. The PRC and BOA
    b. The BOA d. The AASC
A

a. The PRC

47
Q

Which of the following is not one of the specified objectives of the Accountancy Act of 2004?

a. Examination for registration of CPAs.
b. Supervision, control, and regulation of accounting practice.
c. Standardization and regulation of accounting education.
d. Promulgation of accounting and auditing standards.

A

d. Promulgation of accounting and auditing standards.

48
Q

In all of the following situations except one, a person is deemed to be engaged in
professional accounting practice. Which of them is the exception?
a. Performing audits or verification of financial transactions and records for more than one
client.
b. Employed as the department chairman that supervises the BSA program of an
educational institution.
c. Employment as controller of a private business enterprise and such employment requires
that the holder thereof should be a CPA.
d. Appointment in the government where first grade civil service eligibility is a prerequisite.

A

d. Appointment in the government where first grade civil service eligibility is a prerequisite.

49
Q

A person is not deemed to be engaged in professional accounting practice if
a. Her merely holds himself out as skilled in the science and practice of accounting and
qualified to render services as a CPA.
b. He merely offers to render services as a CPA to the public, but does not actually render
such services.
c. He offers or renders bookkeeping services to more than one client.
d. He installs and revises accounting systems for more than one client.

A

c. He offers or renders bookkeeping services to more than one client.

50
Q

Practice in Public Accountancy shall constitute in a person
a. Involved in decision making requiring professional knowledge in the science of
accounting, or when such employment or position requires that the holder thereof must be
a certified public accountant.
b. In an educational institution which involve teaching of accounting, auditing, management
advisory services, finance, business law, taxation, and other technically related subjects.
c. Who holds, or is appointed to, a position in an accounting professional group in
government or in a government owned and/or controlled corporation, including those
performing proprietary functions, where decision making requires professional knowledge
in the science of accounting,
d. Holding out himself/herself as one skilled in the knowledge, science and practice of
accounting, and as a qualified person to render professional services as a certified public
accountant; or offering or rendering, or both, to more than one client on a fee basis or
otherwise.

A

d. Holding out himself/herself as one skilled in the knowledge, science and practice of
accounting, and as a qualified person to render professional services as a certified public
accountant; or offering or rendering, or both, to more than one client on a fee basis or
otherwise.

51
Q

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. Provided (choose the incorrect one)
a. That the business or company where the above position exists has a paid-up capital of at
least P5,000,000 and/or an annual revenue of at least P10,000,000.
b. The above provision shall apply only to persons to be employed after the effectivity of the
Implementing Rules and Regulations of RA 9298.
c. The above provision shall not result to deprivation of the employment of incumbents to
the position.
d. None of the above.

A

d. None of the above.

52
Q

The integrated national professional organization of Certified Public Accountants accredited
by the BOA and the PRC per PRC accreditation No. 15 dated October 2, 1975.
a. Auditing and Assurance Standards Council (AASC)
b. Financial Reporting Standards Council (FRSC)
c. Education Technical Council (ETC)
d. Philippine Institute of Certified Public Accountants (PICPA)

A

d. Philippine Institute of Certified Public Accountants (PICPA)

53
Q

As defined in the IRR of RA 9298, it is an organization engaged in the practice of public
accountancy, consisting of sole proprietor, either alone or with one or more staff members.
a. Firm b. Individual CPA c. Partnership d. Sector

A

a. Firm

54
Q

The APO shall submit its nominations with complete documentation to the Commission not
later than _____ prior to the expiry of the term of an incumbent chairman or member.
a. 30 days b. 60 days c. 90 days d. 120 days

A

b. 60 days

55
Q

A member of the BOA shall, at the time of his/her appointment, possess the following
qualifications, except
a. Must be a natural-born citizen and resident of the Philippines.
b. Must be a duly registered CPA with more than ten (10) years of work experience in any
scope of practice of accountancy.
c. Must be of good moral character and must not have been convicted of crimes involving
moral turpitude.
d. Must not be a director or officer of the APO at the time of his/her appointment.

A

b. Must be a duly registered CPA with more than ten (10) years of work experience in any
scope of practice of accountancy.

56
Q

Which statement is incorrect regarding the term of office of the chairman and the members of
the Board of Accountancy (BOA)?
a. The Chairman and members of the Board shall hold office for a term of three years.
b. No person who has served two (2) successive complete terms shall be eligible for
reappointment until the lapse of one (1) year.
c. A person may serve the BOA for not more than twelve years.
d. A member of the BOA may continuously serve office for more than nine years.

A

d. A member of the BOA may continuously serve office for more than nine years.

57
Q

The Board shall exercise the following specific powers, functions and responsibilities:

• To supervise the registration, licensure and
practice of accountancy
• To issue, suspend, revoke, or reinstate the
Certificate of Registration for the practice of
the accountancy profession
• To monitor the conditions affecting the practice
of accountancy
• To conduct an oversight into the quality of
audits of financial statements
• To issue a cease or desist order to any
person, association, partnership or corporation
engaged in violation of any provision of the Act

a. Yes Yes Yes Yes Yes
b. Yes No Yes No Yes
c. Yes Yes No Yes No
d. Yes Yes Yes No Yes

A

a. Yes Yes Yes Yes Yes

58
Q 
Which of the following is not one of the penalties that can be imposed by the Board of
Accountancy?
a. Fine or imprisonment 
b. Revocation of CPA certificate 
c. Reprimand
d. Suspension of CPA certificate
A

a. Fine or imprisonment

59
Q

The creation of FRSC and AASC is intended to assist the BOA in carrying out its function to
a. To monitor the conditions affecting the practice of accountancy and adopt such
measures, rules and regulations and best practices as may be deemed proper for the enhancement and maintenance of high professional, ethical, accounting and auditing standards.
b. To supervise the registration, licensure and practice of accountancy in the Philippines.
c. To prescribe and adopt the rules and regulations necessary for carrying out the provisions
of RA 9298.
d. To prepare, adopt, issue or amend the syllabi of the subjects for examinations.

A

a. To monitor the conditions affecting the practice of accountancy and adopt such
measures, rules and regulations and best practices as may be deemed proper for the enhancement and maintenance of high professional, ethical, accounting and auditing standards.

60
Q

A body that is created to assist the BOA in the attainment of the objective of continuously
upgrading the accountancy education in the Philippines to make the Filipino CPAs globally
competitive.
a. Philippine Institute of Certified Public Accountants (PICPA)
b. Education Technical Council (ETC)
c. Financial Reporting Standards Council (FRSC)
d. Associations of CPAs in Education (ACPAE)

A

b. Education Technical Council (ETC)

61
Q

Which of the following is are grounds for suspension or removal of members of BOA?
I. Neglect of duty or incompetence.
II. Violation or tolerance of any violation of the CPA’s Code of Ethics.
III. Final judgment of crimes involving moral turpitude.
IV. Rigging of the certified public accountant’s licensure examination results.
a. I, II, III and IV b. I, II and III c. III and IV d. I, III and IV

A

a. I, II, III and IV

62
Q

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

A

c. Candidates who failed in four complete examinations shall no longer be allowed to take
the examinations the fifth time.

63
Q

The Board, subject to the approval of the Commission, 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
a. 2 years b. 3 years c. 4 years d. 5 years

A

b. 3 years

64
Q

The BOA shall submit to the PRC the ratings obtained by each candidate within how many
calendar days after the examination?
a. 5 days b. 10 days c. 15 days d. 30 days

A

b. 10 days

65
Q

A Professional Identification Card bearing the registration number, date of issuance, expiry
date, duly signed by the chairperson of the Commission, shall be issued to every registrant
renewable every
a. Two years b. Three years c. Four years d. Five years

A

b. Three years

66
Q

The certified public accountant shall be required to indicate which of the following numbers
on the documents he/she signs, uses or issues in connection with the practice of his/her
profession?
• His/her Certificate of Registration Yes Yes Yes No
• Professional Identification Card Yes Yes Yes Yes
• Professional Tax Receipt Yes Yes No Yes
• Telephone Yes No No No

a. Yes Yes Yes Yes
b. Yes Yes Yes No
c. Yes Yes No No
d. No Yes Yes No

A

b. Yes Yes Yes No

67
Q

The BOA shall not refuse the registration of any person who successfully passed the CPA
examinations if
a. Convicted by a court of competent jurisdiction of a criminal offense involving moral
turpitude
b. Convicted for a political offense.
c. Guilty of immoral and dishonorable conduct
d. None of the above.

A

b. Convicted for a political offense.

68
Q

Which of the following is not one of the grounds for proceedings against a CPA?

a. Gross negligence or incompetence in the practice of his profession.
b. Engaging in public practice while being employed in a private enterprise.
c. Insanity.
d. Immoral or dishonorable conduct.

A

b. Engaging in public practice while being employed in a private enterprise.

69
Q

A person whose CPA certificate has been revoked
a. Can no longer be reinstated as a CPA
b. Is automatically reinstated as a CPA after two years if the has acted in an exemplary
manner
c. May be reinstated as a CPA by the Board of Accountancy after two years if he has acted
in an exemplary manner
d. May be reinstated by the PRC after two years if he has acted in an exemplary manner

A

c. May be reinstated as a CPA by the Board of Accountancy after two years if he has acted
in an exemplary manner

70
Q

Who is not permitted by law to practice accountancy?

a. A corporation whose stockholders are all CPAs
b. A partnership of CPAs
c. An individual CPA practitioner
d. A partnership of CPAs with some non-CPA staff

A

a. A corporation whose stockholders are all CPAs

71
Q

A certificate of accreditation shall be issued to certified public accountants in public practice
only upon showing, in accordance with rules and regulations promulgated by the Board and
approved by the Commission, that such registrant has acquired how many years of
meaningful experience in any of the areas of public practice?
a. One b. Two c. Three d. Four

A

c. Three

72
Q

A meaningful experience shall be considered as satisfactory compliance with the
requirements of Section 28 of RA 9298 if it is earned in (Choose the incorrect one)
a. Commerce and industry and shall include significant involvement in general accounting,
budgeting, tax administration, internal auditing, liaison with external auditors, representing
his/her employer before government agencies on tax and matters related to accounting or
any other related functions.
b. Academe/education and shall include teaching for at least three (3) trimesters or two (2)
semesters subjects in either financial accounting, business law and tax, auditing
problems, auditing theory, financial management and management services.
c. Government and shall include significant involvement in general accounting, budgeting,
tax administration, internal auditing, liaison with the Commission on Audit or any other
related functions.
d. Public practice and shall include at least two years as audit assistant and at least one
year as auditor in charge of audit engagement covering full audit functions of significant
clients.

A

d. Public practice and shall include at least two years as audit assistant and at least one
year as auditor in charge of audit engagement covering full audit functions of significant
clients.

73
Q

The Accountancy Law provides that all working papers made during an audit shall be the
property of the auditor. These working papers shall include the following, except:
a. Schedules and memoranda made by the CPA and his staff.
b. Working papers prepared and submitted by the client.
c. Excerpts or copies of documents furnished the auditor.
d. Reports submitted by the CPA to the client.

A

d. Reports submitted by the CPA to the client.

74
Q

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, it shall file for renewal on or before
a. September 30, 2007 c. December 31, 2007
b. September 30, 2008 d. August 30, 2008

A

a. September 30, 2007

75
Q

Which statement is correct regarding CPE requirements for renewal of professional license?
a. The total CPE credit units required for CPAs shall be sixty (60) units for three (3) years,
provided that a minimum of twenty (20) credit units shall be earned in each year.
b. A registered professional shall be permanently exempted from CPE requirements upon
reaching the age of 60 years old.
c. A registered professional who is working abroad shall be temporarily exempted from
compliance with CPE requirement during his/her stay abroad, provided that he/she is has
been out of the country for at least one year immediately prior to the date of renewal.
d. Those who failed to renew professional licenses for a period of five (5) continuous years
from initial registration, or from last renewal shall be declared delinquent.

A

d. Those who failed to renew professional licenses for a period of five (5) continuous years
from initial registration, or from last renewal shall be declared delinquent.

76
Q

Any person who shall violate any of the provisions of RA 9298 or any of its implementing
rules and regulations as promulgated by the Board subject to the approval of the
Commission, shall, upon conviction, be punished by
a. A fine of not less than fifty thousand pesos (P 50,000.00) or by imprisonment for a period
not exceeding two (2) years or both.
b. A fine of not less than one hundred thousand pesos (P 100,000.00) or by imprisonment
for a period not exceeding two (2) years or both.
c. A fine of not less than fifty thousand pesos (P 50,000.00) or by imprisonment for a period
not exceeding three (3) years or both.
d. A fine of not less than one hundred thousand pesos (P 100,000.00) or by imprisonment
for a period not exceeding three (3) years or both.

A

a. A fine of not less than fifty thousand pesos (P 50,000.00) or by imprisonment for a period
not exceeding two (2) years or both.

77
Q

The primary duty to enforce the provisions of RA 9298 and its IRR rests with

a. The PRC
b. The BOA
c. The PRC and BOA
d. The AASC

A

c. The PRC and BOA

78
Q

The PICPA shall renew its Certificate of Accreditation once every how many years after the
date of the Resolution granting the petition for re-accreditation and the issuance of the said
certificate upon submission of the requirements?
a. 2 years b. 3 years c. 4 years d. 6 years

A

b. 3 years

79
Q

Below are the names of three CPA firms and pertinent facts relative to each firm. Unless
otherwise indicated, the individuals named are CPAs and partners, and there are no other
partners. Which firm name and related facts indicates a violation of the IRR of RA 9298?
a. Joyce, Ara and Angela, CPAs (Joyce died about 10 years ago, Ara and Angela are
continuing the firm)
b. Lupin and Fujico, CPAs ( the name of Goymon a third active partner is omitted in the firm
name)
c. Hugo and Pugo, CPAs (Hugo died 25 months ago, Pugo is continuing the firm as a sole
proprietor)
d. Bubu and Bibi, CPAs (Bibi died 3 years ago, Bobot was admitted into the partnership 2
months after Bibi’s death.)

A

c. Hugo and Pugo, CPAs (Hugo died 25 months ago, Pugo is continuing the firm as a sole
proprietor)

Theory of Accounts (4 decks)

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