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?

Performing audits or verification of financial transactions and records for more than one client.

Employed as the department chairman that supervises the BSA program of an educational
institution.

Employment as controller of a private business enterprise and such employment requires that the
holder thereof should be a CPA.

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

Ans.

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

The integrated national professional organization of Certified Public Accountants accredited by the Board
and the Commission per PRC Accreditation No. 15 dated October 2, 1975.

APO PICPA PRC B OA

Ans.

PICPA

Which of the following statements concerning a CPA’s disclosure of confidential client information is
ordinarily correct?

Disclosure may be made to any party on consent of the client.

Disclosure should not be made even if such disclosure will protect the CPA’s professional interests in
legal proceedings.

Ans.

Disclosure may be made to any party on consent of the client.

This is the area of practice of accountancy namely public accountancy, commerce and industry,
academe/education and government.
Field Area Sector Profession

Ans.

Sector

Practice in Public Accountancy shall constitute in a person

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.

In an educational institution which involve teaching of accounting, auditing, management advisory

services, finance, business law, taxation, and other technically related subjects.

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,

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.

Ans.

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.

Which of the following statements concerning the practice of accountancy in commerce and industry is
incorrect?

A CPA is in the practice of accountancy in commerce and industry when he or she is involved in decision
making requiring professional knowledge in the science of accounting, as well as the accounting aspects
of finance and taxation.

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.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.
 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.

Ans.

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.

When a CPA represents her/his client before government agencies n tax matters related to accounting,
the CPA is engaged in what sector?

Practice in public accountancy

Practice in academic

Practice in commerce and industry

Practice in government

Ans.

Practice in public accountancy

A person who holds a valid Certificate of Registration and a valid Professional Identification Card issued
by the Commission upon recommendation by the Board to those who have satisfactorily complied with
all the legal and procedural requirements for such issuance, including in appropriate cases, having
passed the CPA licensure examination

Accredited CPA by the Board CPA Successful examinee Board

Ans.

CPA

A person is not deemed to be engaged in professional accounting practice if

Her merely holds himself out as skilled in the science and practice of accounting and qualified to render
services as a CPA.

He merely offers to render services as a CPA to the public, but does not actually render such services.
He offers or renders bookkeeping services to more than one client.

He installs and revises accounting systems for more than one client.

Ans.

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

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

Examination for registration of CPAs.

Supervision, control, and regulation of accounting practice.

Standardization and regulation of accounting education.

Promulgation of accounting and auditing standards.

Ans.

Promulgation of accounting and auditing standards.

It is an organization engaged in the practice of public accountancy, consisting of a sole proprietor , either
alone or with one or more staff member(s):

Sector Partnership Firm Association

Ans.

Firm

Which of the following statements about the composition of the Board of Accountancy is incorrect?

The four sector in the practice of accountancy shall as much as possible be equitably represented in the
Board.

The Board shall be composed of a chairman and six members.

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 (APO). The Board shall elect a chairman from
among its members to serve for a term of one year.

Ans.

The Board shall elect a chairman from among its members to serve for a term of one year.

The following statements relate to some of the provisions of RA 9298. Which is correct?

Audit working papers are generally the property of the company whose financial statements were
audited.

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.

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. It shall be the primary duty of the
PRC and the BOA to effectively enforce the provisions of RA 9298.

Ans.

It shall be the primary duty of the PRC and the BOA to effectively enforce the provisions of RA 9298.

Which statement is incorrect regarding the term of office of the chairman and the members of the Board
of Accountancy (BOA)?

The Chairman and members of the Board shall hold office for a term of three years.

No person who has served two (2) successive complete terms shall be eligible for reappointment until
the lapse of one (1) year.

A person may serve the BOA for not more than twelve years.

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

Ans.

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

Which of the following is not one of the functions of the Board of Accountancy as specifically provided
under RA 9298?
To determine and prescribe minimum requirements leading to the admission of candidates to the CPA
examination.

To investigate violations of the Accountancy Law and the rules and regulations promulgated thereunder.

To perform visitorial powers or review professional work of accounting practitioners in a general or

random basis.

After due process, to suspend, revoke, or reissue certificates of registrations causes provided for by law
by the rules and regulations promulgated therefore

Ans.

To perform visitorial powers or review professional work of accounting practitioners in a general or

random basis.

The following statements relate to the submission of nominations to the Board of Accountancy. Which is
correct?

The Accredited National Professional Organization of CPAs (APO) shall submit its nominations to the
president of the Philippines not later than sixty (60) days prior to the expiry of the term of an incumbent
chairman or member.

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.

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.

There should be adequate documentation to show the qualifications and primary field of professional
activity of each nominee.

Ans.

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.

Which of the following is not a valid ground for suspension or removal of members of the Board of
Accountancy?

Neglect of duty or incompetence

Rigging the CPA licensure examination results.

Violating RA9298.

Having been charged of any crime involving moral turpitude.

Ans.

Having been charged of any crime involving moral turpitude.

The Board of Accountancy may issue certificate of registration and professional identification card to any
successful examinee:

Must be a natural- born citizen and resident of the Philippines, convicted by a court of political offense.

Guilty of immoral or dishonourable conduct.

Who has falsely represented himself/herself in his/her application for examination.

Of unsound mind.

Ans.

Must be a natural- born citizen and resident of the Philippines, convicted by a court of political offense.

The following statements relate to CPE credit units. Which is incorrect?

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.

Any excess credit units in one year may be carried over to the succeeding years within the three-year
period.

Excess credit units earned may be carried over to the next three-year period including credit units
earned for doctoral and master’s degrees.

One credit hour of CPE program, activity or source shall be equivalent to one (1) credit unit.

Ans.

Excess credit units earned may be carried over to the next three-year period including credit units
earned for doctoral and master’s degrees.
The Board of Accountancy has the power to conduct an oversight into the quality of audits of financial
statements through a review of the quality control measures instituted by auditors in order to ensure
compliance with the accounting and auditing standards and practices. This power of the BOA is called

Quality assurance review Peer review Appraisal Quality control

Ans.

Quality assurance review

Which of the following is not one of the functions of the Board of Accountancy as specifically provided
under RA 9298?

To determine and prescribe minimum requirements leading to the admission of candidates to the CPA
examination.

To investigate violations of the Accountancy Law and the rules and regulations promulgated thereunder.

To perform visitorial powers or review professional work of accounting practitioners in a general or

random basis.

After due process, to suspend, revoke, or reissue certificates of registrations causes provided for by law
by the rules and regulations promulgated therefore

Ans.

To perform visitorial powers or review professional work of accounting practitioners in a general or

random basis.

The following statements relate to the term of office of the chairman and members of the Board of
Accountancy (BOA). Which is false?

The chairman and members of the BOA shall hold office for a term of three (3) years. Any vacancy
occurring within the term of a member shall be filled up for the unexpired portion of the term only.

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.

Appointment to fill up an unexpired term is not to be considered as a complete term.

Ans.

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.
Which of the following statements about the composition of the Board of Accountancy is incorrect?

The four sector in the practice of accountancy shall as much as possible be equitably represented in the
Board.

The Board shall be composed of a chairman and six members.

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 (APO). The Board shall elect a chairman from
among its members to serve for a term of one year.

Ans.

The Board shall elect a chairman from among its members to serve for a term of one year.

The following statements relate to some of the provisions of RA 9298. Which is correct?

Audit working papers are generally the property of the company whose financial statements were
audited.

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.

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. It shall be the primary duty of the
PRC and the BOA to effectively enforce the provisions of RA 9298.

Ans.

It shall be the primary duty of the PRC and the BOA to effectively enforce the provisions of RA 9298.

The following statements relate to the term of office of the chairman and the members of the Board of
Accountancy (BOA).
(I)No person who has served two (2) successive complete terms shall be eligible for reappointment until
the lapse of one (1) year

(II)Appointment to fill up an unexpired term is not to be considered a complete term

(III)A person may serve in the Board of Accountancy for eight consecutive years.

(IV)No person shall serve in the Board for more than 12 years.

All statements are true

Only I and IV are true

Only I and II and IV are true

Only II, III and IV are true

Ans.

All statements are true

Which statement is correct regarding the term of office of the chairman and the members of the Board
of Accountancy (BOA)?

The Chairman and members of the Board shall hold office for a term of 12 years

No person who has served two (2) successive complete terms shall be eligible for reappointment until
the lapse of 1 year

A person may serve the BOA for not more than twelve terms

A member of the BOA may simultaneously be a director of PICPA during his/her term

Ans.

No person who has served two (2) successive complete terms shall be eligible for reappointment until
the lapse of 1 year

The Board of Accountancy may issue certificate of registration and professional identification card to any
successful examinee:
Must be a natural- born citizen and resident of the Philippines, convicted by a court of political offense.

Guilty of immoral or dishonourable conduct.

Who has falsely represented himself/herself in his/her application for examination.

Of unsound mind.

Ans.

Must be a natural- born citizen and resident of the Philippines, convicted by a court of political offense.

The members of the Professional Regulatory Board of Accountancy shall be appointed by the

Philippine Institute of CPAs (PICPA).

Professional Regulation Commission (PRC).

President of the Philippines.

Association of CPAs in Public Practice (ACPAPP).

Ans.

President of the Philippines.

Which statement is incorrect regarding the term of office of the chairman and the members of the Board
of Accountancy (BOA)?

The Chairman and members of the Board shall hold office for a term of three years.

No person who has served two (2) successive complete terms shall be eligible for reappointment until
the lapse of one (1) year.

A person may serve the BOA for not more than twelve years.

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

Ans.

A member of BOA may continuously serve office for more than nine years.
Which of the following is not one of the functions of the Board of Accountancy as specifically provided
under RA 9298?

To determine and prescribe minimum requirements leading to the admission of candidates to the CPA
examination.

To investigate violations of the Accountancy Law and the rules and regulations promulgated thereunder.

To perform visitorial powers or review professional work of accounting practitioners in a general or

random basis.

After due process, to suspend, revoke, or reissue certificates of registrations causes provided for by law
by the rules and regulations promulgated therefore

Ans.

To perform visitorial powers or review professional work of accounting practitioners in a general or

random basis.

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

He/ She must have at least 10 years of experience in the practice of public accountancy He/ She must be
a natural-born Filipino citizen and a resident of the Philippines

He/ She must not be a director or officer of the accredited national professional organization at the time
of appointment.

He/ She must be of good moral character

Ans.

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

Which of the following is not one of the basic duties and responsibilities of the BOA?

To prescribe and adopt the rules and regulations necessary for carrying out the provisions of RA 9298

To conduct an oversight into the quality of audits of financial statements through a review of the quality
control measures instituted by auditors

To designate the dates, places and venues of the CPA licensure examinations

To prescribe and/or adopt a Code of Ethics for the practice of accountancy

Ans.
To designate the dates, places and venues of the CPA licensure examinations

The Professional Regulatory Board of Accountancy shall be composed of a chairman and six (6) members
to be appointed by the <LIST A> from a list of three (3) recommendees for each position and ranked by
the <LIST B>, from a list of five (5) nominees for each position submitted by <LIST C>.

(LIST A)Commission; (LIST B)PICPA; (LISTC)President of the Philippines

(LIST A)President of the Philippines; (LIST B)PICPA; (LISTC)Commission

(LIST A)Commission; (LIST B)Commission; (LISTC)PICPA

(LIST A)President of the Philippines; (LIST B)Commission; (LISTC)PICPA

Ans.

(LIST A)President of the Philippines; (LIST B)Commission; (LISTC)PICPA

The Board of Accountancy shall submit to the PRC the ratings obtained by each candidate within _____
days after the examination, unless extended for just cause.

10 2 5 3

Ans.

10

A member of the BOA shall, at time his/her appointment, possess the following qualifications, except

Must be a natural- born citizen and resident of the Philippines.

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

Must be good moral character and must not have been convicted of crimes involving moral turpitude.

Ans.

Must be duly registered CPA with more than ten (10) years of work experience in any scope of practice of
accountancy.
The Board of Accountancy may issue certificate of registration and professional identification card to any
successful examinee:

Convicted by a court of political offense.

Guilty of immoral or dishonourable conduct.

Who has falsely represented himself/herself in his/her application for examination.

Of unsound mind.

Ans.

Convicted by a court of political offense.

Which of the following does not fall under the admission requirements for CPA examinations?

a Filipino citizen

is of good moral character

at least twenty one years of age

has not been convicted of any criminal offense involving moral turpitude

Ans.

at least twenty one years of age

The following were the ratings of examinees who took the very difficult CPA Board Examination on May
2010.

· Examinee 1 - All subjects garnered a rating of 95%.

· Examinee 2 - All subjects garnered a rating of 75%.

· Examinee 3 - One subject garnered a rating of 81% and the other six garnered a rating of 74%.
· Examinee 4 - One subject garnered a rating of 64% and the other six garnered a rating of 85%.

· Examinee 5 - Three subjects garnered a rating of 75% and the other four garnered a rating of 74%.

· Examinee 6 - All subjects garnered a rating of 74%.

· Examinee 7 - Four subjects garnered a rating of 95%, one with 73% and other 2 with 64%.

· Examinee 8 - Three subjects garnered a rating of 95%, one with 74% and other three with 73%.

Of the ratings presented above, how many examinees obtain a conditional status in the Board Exam?

4 3 2 1

Ans.

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

• Professional Identification Card

• Professional Tax Receipt

• Telephone

YesYesYesYes YesYesYesNo YesYesNoNo NoYesYesNo

Ans.

Yes

Yes

Yes

No
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

Two years Three years Four years Five years

Ans.

Three years

Which of the following is among the qualifications of applicants for CPA licensure examination?

(I)Must be a natural born Filipino citizen

(II)Must be of good moral character

(III)Must be a holder of the degree of Bachelor of Science in Accountancy

(IV)Must be at least 21 years of age

I,IIandIIIonly I,II,IIIandIV II and III only II, III and IV only

Ans.

I, II and III only

The Board shall submit to the Commission the ratings obtained by each candidate within how many
calendar days after the examination unless extended for just cause?

Ten Twenty Thirty One hundred eighty

Ans.

Ten

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

two years three years four years five years

Ans.

three years

Which of the following will not be found in the Certificate of Registration issued to successful
examinees?

Indication that the CPA named therein is entitled to the practice of the profession

Signature of the PRC chairperson

Date of issuance and expiry date

Signature of the BOA chairman and members

Ans.

Date of issuance and expiry date

On exam results and report of ratings, which of the following is correct?

Results of the CPA exams are released within 10 working days from the last day of examination.

All examinees may claim their report of ratings during the mass oath-taking.

The PICPA shall be responsible for the release of the results.

None among the given statements is correct.

Ans.

None among the given statements is correct.

Which of the following exams must be taken with two years from the preceding examination? Removal
exams for conditioned examinees

Exams after a refresher certificate has been granted

Both A and B

Neither A nor B

Ans.

Removal exams for conditioned examinees

Which of the following does not fall under the admission requirements for CPA examinations? a Filipino
citizen

is of good moral character

at least twenty one years of age

has not been convicted of any criminal offense involving moral turpitude

Ans.

at least twenty one years of age

The following documents shall be submitted by applicants for the CPA licensure examination, except:

Transcript of records with indication therein of date of graduation and Special Order number unless it is
not required.

Certificate of Live Birth in National Statistics Office (NSO) security paper.

Marriage contract in NSO security paper for married female applicants.

Baptismal Certificate.

Ans.

Baptismal Certificate.

The following statements relate to CPA examination ratings. Which of the following is incorrect?
To pass the examination, candidates should obtain a general weighted average of 75% and above, with
no rating in any subject less than 65%.

Candidates who obtain a rating of 75% and above in at least four subjects shall receive a conditional
credit for the subjects passed.

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

Conditioned candidates shall take an examination in the remaining subjects within two years from the
preceding examination.

Ans.

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

Which of the following statements concerning the issuance of Certificates of Registration and
Professional Identification Cards to successful examinees is correct?

The Certificate of Registration issued to successful examinees is renewable every three (3) years.

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.

The BOA shall not register and issue a Certificate of Registration and Professional Identification Card to
any successful examinee of unsound mind.

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.

Ans.

The BOA shall not register and issue a Certificate of Registration and Professional Identification Card to
any successful examinee of unsound mind.

On exam results and report of ratings, which of the following is correct?

Results of the CPA exams are released within 10 working days from the last day of examination.

All examinees may claim their report of ratings during the mass oath-taking.

The PICPA shall be responsible for the release of the results.

None among the given statements is correct.

Ans.

None among the given statements is correct.

Which of the following statements concerning the issuance of Certificates of Registration and
Professional Identification Cards to successful examinees is correct?

The Certificate of Registration issued to successful examinees is renewable every three (3) years.

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.

The BOA shall not register and issue a Certificate of Registration and Professional Identification Card to
any successful examinee of unsound mind.

Ans.

The BOA shall not register and issue a Certificate of Registration and Professional Identification Card to
any successful examinee of unsound mind.

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 2 years 3 years 4 years 5 years

Ans.

3 years

The BOA shall submit to the PRC the ratings obtained by each candidate within how many calendar days
after the examination?

5 days 10 days 15 days 30 days

Ans.

10 days
Which of the following shall be issued to examinees who pass the CPA licensure examination? Certificate
of registration and death certificate.

Professional identification card and warrant of arrest.

Certificate of registration and professional identification card

Warrant of arrest and death certificate.

Ans.

Certificate of registration and professional identification card

Which of the following is required for a partnership for public accountancy practice?

At least one of the partners must be a CPA.

All partners must be PICPA members.

All partners must be CPAs.

Firm name must contain names of partners only.

Ans.

All partners must be CPAs.

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

Upper portion of the space between the bigger and smaller circle.

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

Left and right portion of the space between the bigger and the smaller circle in the middle of the
smaller circle.

Middle of the smaller circle.

Ans.

Middle of the smaller circle.

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?

Joyce, Ara and Angela, CPAs (Joyce died about 10 years ago, Ara and Angela are continuing the firm)
Lupin and Fujico, CPAs ( the name of Goymon a third active partner is omitted in the firm name)

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

Bubu and Bibi, CPAs (Bibi died 3 years ago, Bobot was admitted into the partnership 2 months after
Bibi’s death.)

Ans.

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

Which of the following is not represented in the AASC?

Board of Accountancy

Bureau of Internal Revenue

Commission on Audit

Securities and Exchange Commission

Ans.

Bureau of Internal Revenue

Which of the following statements concerning ownership of working papers is incorrect?

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.

Working papers include schedules and memoranda prepared and submitted by the client of the CPA.

Working papers include reports submitted by a CPA to his/her client.

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.

Ans.

Working papers include reports submitted by a CPA to his/her client.

The following statements relate to RA 9298 and its IRRs. Which statement is false?

Under the IRR of RA 9298, if a partner in a two member partnership dues, the surviving partner may
continue to practice as an individual under the existing frim title which includes the deceased partner’s
name for a period of time not to exceed five ears.

Any candidate who fails in two (2) complete Certified Public Accountant Board Examinations shall be
disqualified from taking another set of examinations unless he/she submits evidence to satisfaction of
the board that he/she enrolled in and completed at least licensure examination.

No person shall serve the Professional Regulatory Board of Accountancy for more than twelve (12)
years.

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 has been out of the country for at
least two years immediately prior to the date of renewal.

Ans.

Under the IRR of RA 9298, if a partner in a two member partnership dues, the surviving partner may
continue to practice as an individual under the existing frim title which includes the deceased partner’s
name for a period of time not to exceed five ears.

If the application for registration to practice public accountancy of Sayson and Co. CPAs, was approved
on July 31, 2009, the registration shall expire on

September 30, 2011. September 30, 2012. July 31, 2012. December 31, 2011

Ans.

December 31, 2011

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.

15 30 60 90

Ans.

30
Listed below are names of four 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 is a
violation of the Implementing Rules and Regulations of RA 9298?

Tin, Ton and Tan, CPAs (Tin died about five years ago; Ton and Tan are continuing the firm.)

Pol and Bon, CPAs (The name of Cua, a third partner, is omitted from the partnership name.)

Joni and Jona, CPAs (Joni died about three years ago; Jona is continuing the firm as a sole proprietor.)

Elias and Co., CPAs (The firm has ten other partners who are all CPAs).

Ans.

Joni and Jona, CPAs (Joni died about three years ago; Jona is continuing the firm as a sole proprietor.)

Which of the following regarding the standards-setting councils is correct?

Each of the councils is composed of 15 members including the chairman.

The chairman of the FRSC must be a senior in the practice of public accountancy.

The APO shall be equally represented in the AASC.

The BIR has a representative in both the AASC and the FRSC.

Ans.

Each of the councils is composed of 15 members including the chairman.

Affixing the CPA’s seal and signature on the auditor’s report is an indication of:

CPA’s acceptance of responsibility for the financial statements audited.

Compliance by the CPA of the requisite accounting and auditing standards and rules.

CPA’s accreditation to practice public accountancy.

Fair presentation of financial statements audited.

Ans.

Compliance by the CPA of the requisite accounting and auditing standards and rules.
The death or disability of an individual CPA and dissolution or liquidation of a firm or partnership shall be
reported to the BOA not later than _______ days following the event.

15 30 45 60

Ans.

30

Practice of accountancy in the public sector involves

Representing employers before government agencies

A requirement to obtain civil service eligibility status

Teaching taxation and business law subjects in accountancy schools

Rendering bookkeeping, auditing, system installation, etc. on a fee basis

Ans.

Rendering bookkeeping, auditing, system installation, etc. on a fee basis

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.

234

Ans.

Per RA 9298: A certified public accountant engaged in the practice engaged in the practice of public
accountancy under his/her name, by himself/herself only or with one or more staff members.

Individual CPA CPA Practitioner Professional accountant

Ans.

Individual CPA
Which of the following statements concerning the use of firm or partnership name is incorrect?

In the case of an individual CPA, he/she shall do business under his/her registered name with the BOA
and the PRC and as printed in his/her CPA certificate (for example, Juan Puruntong, CPA).

In the case of a firm, it shall do business under its duly registered and authorized firm name appearing in
the registration documents issued by the Department of Trade and Industry (DTI) and other government
offices and such firm name shall include the real name of the sole proprietor as printed in his/her CPA
certificate (for example, Arnulfo Gumamela and Associates).

In the case of a registered partnership, it shall do business under its name as indicated in its current
Articles of Partnership and Certificate of Registration issued by the Securities and Exchange Commission
(SEC) (for example, Tanya, Sam, and Jervi, CPAs).

A CPA shall practice only under an individual, firm, or partnership name in accordance with Philippine
laws and shall not include any fictitious name but may indicate specialization.

Ans.

A CPA shall practice only under an individual, firm, or partnership name in accordance with Philippine
laws and shall not include any fictitious name but may indicate specialization.

A registered professional shall be permanently exempted from CPE requirements upon reaching the age
of

55 years old 60 years old 65 years old 70 years old

Ans.

65 years old

The sector that is most represented in the AASC is the

Commerce and Industry Academe Government Public Practice

Ans.

Public Practice

Which of the following does not constitute a practice of accountancy?

A person holding out himself as one skilled in the knowledge, science and practice of accounting and as
qualified person to render professional services as a CPA to more than one client.

A person representing his/her employer before government agencies on tax and other accounting
related matters.

A person in educational institution teaching accounting, auditing, business law, taxation or other
technically related subjects.

A person is appointed as a marketing director of a government-owned and controlled corporation.

Ans.

A person is appointed as a marketing director of a government-owned and controlled corporation.

A CPA is not allowed to practice public accountancy if the form of business organization is

A general partnership

A limited liability partnership

A corporation , whose stockholder’s are all CPA’s

A sole proprietorship

Ans.

A corporation , whose stockholder’s are all CPA’s

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
proprietor.

1234

Ans.

If the application for registration to practice public accountancy of Sayson and Co. CPAs, was approved
on July 31, 2009, the registration shall be renewed on or before
September 30, 2011 September 30, 2012 July 31, 2012 July 31, 2011

Ans.

September 30, 2011

Which of the following definitions in the Act describe a convention?

It refers to the inculcation, assimilation and acquisition of knowledge, skills, proficiency and ethical
values, after the initial registration of a professional that raise and enhance the professional’s technical
skills and competence

It refers to the gathering of professionals which shall include, among others, workshops, technical
lectures or subject matter meetings, non-degree training courses and scientific meetings.

It refers to the gathering of professionals which shall include, among others, conferences, symposia or
assemblies for round table discussions.

It refers to a graduate degree in accountancy, business or related field from a recognized school, college
or university.

Ans.

It refers to the gathering of professionals which shall include, among others, conferences, symposia or
assemblies for round table discussions.

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
proprietor.

1234

Ans.

Which is correct regarding credit units earned in a continuing professional education activity?

CPAs who are outside the country for 2 years before renewal of license are permanently exempted from
the CPE requirements

Number of units to be earned by a CPA on an annual basis must not exceed 15 credit units
A CPA who has earned 70 units in a 3-year period from seminars and conventions cannot carry the
excess units to the next 3-year period

A participant in a seminar/convention earns 1 credit unit per day of the said seminar/convention

Ans.

A CPA who has earned 70 units in a 3-year period from seminars and conventions cannot carry the
excess units to the next 3-year period

Special/ temporary permit may be issued by the Board to the following persons except:

A foreign CPA called for consultation or for 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 and
that his or her practice shall be limited only to the particular work that he or she is being engaged.

A foreign CPA engaged as a professor or lecturer in the fields essential to accountancy education in the
Philippines and his or her engagement is confined to teaching only.

A foreign CPA with specialization in any branch of accountancy and his/her service is essential for the
advancement of accountancy in the Philippines.

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.

Ans.

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.

Which of the following statements is/are correct?

Statement 1: It shall be the primary duty of the Commission and the Board to effectively enforce the
provisions of RA 9298 and its Implementing Rules and Regulations.

Statement 2: Any person may bring before the Commission, Board, or the aforementioned officers of the
law, cases of illegal practice or violations of RA 9298 and its Implementing Rules and Regulations.

Only statement 1 is correct

Only statement 2 is correct

Both statements are correct

Both statements are incorrect

Ans.

Both statements are correct

Any person who shall violate any of the provisions of the Accountancy Act or any of its implementing
rules and regulations promulgated by the Board of Accountancy subject to the approval of the PRC, shall,
upon conviction, be punished by

A fine of not more than P50,000.

Imprisonment for a period not exceeding two years.

A fine of not less than P50,000 or by imprisonment for a period not exceeding two years or both.

Lethal injection.

Ans.

A fine of not less than P50,000 or by imprisonment for a period not exceeding two years or both.

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

Gross negligence or incompetence in the practice of his profession.

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

Insanity.

Immoral or dishonorable conduct.

Ans.

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

Any person who shall violate any of the provisions of the Accountancy Act or any of its implementing
rules and regulations promulgated by the Board of Accountancy subject to the approval of the PRC, shall
upon conviction , be punished by

Lethal injection

A fine of not more than P50,000

Imprisonment for a period not exceeding two years

A fine of not less than P50,000 or by imprisonment for a period not exceeding two years or both

Ans.

A fine of not less than P50,000 or by imprisonment for a period not exceeding two years or both

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 Professional Regulatory Board of
Accountancy subject to the approval of the PRC, shall upon conviction, be punished by:

A fine of not less than fifty thousand pesos (P50,000) or by imprisonment for a period of not exceeding
three (3) years or both

Not less than one hundred thousand pesos (P100,000), or by imprisonment for a period of not
exceeding two (2) years, or both

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

Not less than one hundred fifty thousand pesos (P150,000), or by imprisonment for a period of not
exceeding three (3) years, or both.

Ans.

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

A person whose CPA certificate has been revoked

Can no longer be reinstated as a CPA

Is automatically reinstated as a CPA after two years if the has acted in an exemplary manner

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

May be reinstated by the PRC after two years if he has acted in an exemplary manner

Ans.

May be reinstated as a CPA by the Board of Accountancy after two years if he has acted in an exemplary
manner
Which of the following is not one of the penalties that can be imposed by the Board of Accountancy?

Fine or imprisonment

Reprimand

Revocation of CPA certificate

Suspension of CPA certificate

Ans.

Fine or imprisonment

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 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.

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.

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.

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.

Ans.

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.