RA 9298

BOA has the power to conduct 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 BOA is called *

A. Quality control

B. Appraisal

C. Quality assurance review

D. Peer review

C. Quality assurance review

BOA shall submit to PRC the ratings obtained by each candidate within _____ days after the examination unless extended for just cause. *

A. 10

B. 15

C. 20

D. 5

A. 10

Which of the following shall be issued to examinees who pass the CPALE? *

A. Certificate of registration and death certificate

B. Professional identification card and accreditation certificate

C. Certificate of registration and professional identification card

D. Accreditation certificate

C. Certificate of registration and professional identification card

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 examination remain the property of such CPA in the absence of a written agreement between the CPA and the client of the company.

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

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

D. Working papers shall be treated confidential and privileged unless such documents are required to be produced through a subpoena issued by any court, tribunal, or government regulatory or administrative body.

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

Any person who shall violate any provisions of RA 9298 or any of its implementing rules and regulations promulgated by BOA subject to the approval of PRC, shall upon conviction, be punished by *

A. Lethal injection

B.A fine of not less than P50,000 or by imprisonment for a period not exceeding 2 years or both

C.Imprisonment for a period not exceeding 2 years

D.A fine of not more than P50,000

B.A fine of not less than P50,000 or by imprisonment for a period not exceeding 2 years or both

All registered CPAs shall obtain and use a seal which shall be circular in form with a smaller circle bearing the registrant's name, registration number and title. Which of the following is correct? *

A. Engraved in the middle of the smaller circle are the letters "CPA"

B. Engraved in the lower portion of the space between the circles is the CPA's name.

C. Engraved in the middle of the smaller circle are the "CPA's name and registration number'

D. Engraved in the middle of the smaller circle is the "CPA's name".

A. Engraved in the middle of the smaller circle are the letters "CPA"

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

A. 1 year

B. 2 years

C. 3 years

D. 4 years

B. 2 years

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 BOA not later than _____days from the date of such death, dissolution or liquidations. *

A. 15

B. 30

C. 6

D. 90

B. 30

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

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

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

C. Disclosure should be made only if there is a legal or professional duty to make the disclosure

D. Disclosure may be made to any government agency without subpoena.

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

Listed below are names of 4 CPA firms and pertinent facts relative to each firm. Unless otherwise indicated, the individuals named are CPAs and partners, and there are not other partners. Which is a violation of the IRR of RA 9298? *

A. Sweet, Love and Darling, CPAs (Sweet died about 5 years ago, Love and Darling are continuing the firm)

B. Pilar and Pepe, CPAs (The name of Kiko, a 3rd partner, is omitted from the partnership name)

C. King and Kong, CPAs (King died about 3 years ago, Kong is continuing the firm as a sole proprietor)

D. Brandy and Company, CPAs (The firm has 10 other partners who are all CPAs)

C. King and Kong, CPAs (King died about 3 years ago, Kong is continuing the firm as a sole proprietor)

A registered CPA who I working or practicing his profession or furthering abroad shall be temporarily exempted from compliance with CPE requirements during the period of his stay abroad, provided that prior to the date or renewal he has been out of the country for at least *

A. One year

B. Two years

C. Three years

D. Four years

B. Two years

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. CPA's accreditation to practice public accountancy.

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

D. Fair presentation of financial statements audited.

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

Philippine Accountancy Act of 2004 (RA 9298)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.

D. All of the above.

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

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

B. Of unsound mind

C. Convicted by a court of political offense.

D. Guilty of immoral or dishonorable conduct.

C. Convicted by a court of political offense.

The following statements relate to CPALE 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 failed in 4 complete examinations shall no longer be allowed to take the examinations the 5th time.

C. Candidates who obtain a rating of 75% and above in at least 4 subjects shall receive a conditional credit for the subjects passed.

D. Conditioned candidates shall take an examination in the remaining subjects within 2 years from the preceding examination.

B. Candidates who failed in 4 complete examinations shall no longer be allowed to take the examinations the 5th time.

Who is not permitted by RA 9298 to practice public accountancy? *

A. A corporation, whose stockholders are all CPAs.

B. A general partnership.

C. A limited liability partnership

D. A sole proprietorship.

A. A corporation, whose stockholders are all CPAs.

If the application or registration to practice public accountancy of Tiu and Co. CPAs,was approved on April 30, 2006, the registration shall expire on *

A. April 30, 2009

B. September 30, 2008.

C. September 30, 2009.

D. December 31, 2008

D. December 31, 2008

A certificate of accreditation shall be issued to CPA's in public practice only uponshowing, in accordance with rules and regulations promulgated by the Board and approved by the PRC, that such registration has acquired a minimum of _____ years meaningful experience in any of the areas of public practice including taxation. *

A. 2

B. 3

C. 4

D. 5

B. 3

Which of the following organizations has been recognized by the Commission on October 2, 1975 per Accreditation No. 15, (a) Accredited Professional Organization? *

A. Board of Accountancy (BOA)

B. Association of CPAs in Education (ACPAE)

C. Philippine Institute of CPAs (PICPA)

D. Association of CPA's in public practice (ACPAPP)

B. Association of CPAs in Education (ACPAE)

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

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

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

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

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

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

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 Certified Public Accountant with at least ten years experience in practice of accountancy.

C. Must be of good moral character.

D. Must not have been convicted of crimes involving moral turpitude

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

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 supervise the PICPA

C. To prepare questions for the CPA licensure examination which shall strictly be within the scope of the syllabi of the subjects for examination.

D. To investigate violations of the RA 9298

B. To supervise the PICPA

The auditing standard setting body created by the Board of Accountancy is knowns as *

A. Financial Reporting Standards Council (FRSC)

B. Accountancy Standards Council (ASC)

C. Auditing Standards and Practices Council (ASPC)

D. Auditing and Assurance Standards Council (AASC)

B. Accountancy Standards Council (ASC)

The sector that is most represented in the AASC is the *

A. Public Practice

B. Commerce and Industry

C. Government

D. Academe/Education

A. Public Practice

Which of the following government regulatory agencies is not represented in theAASC? a. Securities and Exchange Commission b. Bureau of Internal Revenue c. *

A. Banko Sentral ng Pilipinas

B. Board of Accountancy

C. Bureau of Internal Revenue

D. Securities and Exchange Commission

C. Bureau of Internal Revenue

The following qualifications of applicants for CPA licensure examination, except *

A. He/She is a Filipino Citizen

B. He/She is of good moral character

C. He/She is a holder of the degree of Bachelor of Science in Accountancy

D. He/She is at least 21 years of age

D. He/She is at least 21 years of age

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 or B

C. A and B

Which of the following shall be issued to examinees who pass 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

D. Certificate of registration and professional identification card

The PICPA shall renew its certificate of accreditation once every year.

A. 2 years

B. 3 years

C. 4 years

D. 5 years

B. 3 years

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 the public practice. *

A. Compliance audit

B. Quality review

C. Peer review

D. External audit

B. Quality review

A body created by the Board to conduct an oversight of the quality of the audit of financial statements by reviewing the firm's quality control is known as: *

A. Quality Review Committee (QRC)

B. Educational Training Committee (ETC)

C. Financial Reporting Standards Council (FRSC)

D. Auditing and Assurance Service Council (AASC)

A. Quality Review Committee (QRC)

For every CPE seminars or conventions attended, participant CPAs shall get a CPE credit equivalent to *

A. one credit unit per hour.

B. three credit units per hour.

C. two credit units per hour.

D. five credit units per hour.

A. one credit unit per hour.

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

A. 55 years

B. 60 years

C. 65 years

D. 70 years

B. 60 years

Which of the following functions to promulgate auditing standards? *

A. National Accredited Professional Organization

B. Auditing and Assurance Standards Council

C. Financial Reporting Standards Council

D. ACPAPP

B. Auditing and Assurance Standards Council

=

B. Auditing and Assurance Standards Council

CPAs, firms and partnership of CPAs engaged in the practice of public accountancy including partners and staff members thereof, shall register with the Commission and the Board, 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

B. Three years on or before September 30

Emerald, 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 country for at least two years immediately prior to the date of renewal

C. Either A or B

D. Under no circumstances

C. Either A or B

It is the specific organization mandated by the law to promulgate rules and regulations affecting the practice of Accountancy. *

A. Professional Regulation Commission (PRC)

B. Accounting Standards Council (ASC)

C. Professional Regulatory Board of Accountancy (BoA)

D. Philippine Institute of Certified Public Accountants (PICPA)

C. Professional Regulatory Board of Accountancy (BoA)

It is the organization created by PICPA in 1981 to formalize the accounting standard-setting function and establish generally accepted accounting principles (GAAP) in the Philippines. *

A. Professional Regulatory Board of Accountancy (BoA)

B. Accounting Standard Council (ASC)

C. Association of the CPAs in Education (ACPAE)

D. Association of CPAs in Public Practice (ACPAPP)

B. Accounting Standard Council (ASC)

The Financial Reporting Standards Council (FRSC) is composed of nominees from all of the following, except *

A. Commission on Audit (CoA)

B. Bureau of Internal Revenue (BIR)

C. Financial Accounting Standards Board (FASB)

D. Professional Regulatory Board of Accountancy (BoA)

C. Financial Accounting Standards Board (FASB)

Pursuant to the IRR of the Philippine Accountancy Act of 2004, the Accounting Standards Council (ASC) was replaced by the *

A. Financial Reporting Standards Council (FRSC)

B. Auditing and Assurance Standards Council (AASC)

C. Education Technical Council (ETC)

D. Association of CPAs in Education (ACPAE)

A. Financial Reporting Standards Council (FRSC)

The number of members (including the chairman) in the Financial Reporting Standards Council.

A. 12

B. 13

C. 14

D. 15

D. 15

Based on IRR, how long in years is the renewable term of the chairman and members of FRSC? *

A. 2

B. 3

C. 4

D. 5

B. 3

The chairman of FRSC must be or must have been a senior accounting practitioner in *

A. Public practice

B. Government practice

C. Any scope of accounting practice

D. Commerce & Industry

C. Any scope of accounting practice

Its function is to assist FRSC in establishing and improving financial reporting standards in the Philippines as it issues implementation guidance on existing PFRS.

A. Board of Accountancy

B. Professional Regulations Commission

C. Education Task Force

D. Philippine Interpretations Committee

D. Philippine Interpretations Committee

What is the branch of accounting that is most related to the accounting sector"Association of CPAs in Commerce and Industry (ACPACI)?" *

A. Public accounting

B. Government accounting

C. Private accounting

D. Accounting education

C. Private accounting

Which organization(s) has/have the primary duty of effective enforcing the provisions of RA 9298?

I. Professional Regulatory Board of Accountancy

II. Department of Justice

III. Professional Regulation Commission

IV. Philippine Institute of Certified Public Accountants *

A. I and II

B. II and III

C. I, III and IV

D. I and III

D. I and III

What are the three main areas in the practice of the accountancy profession, except? *

A. Public accounting, private accounting, and government and not-for profit accounting

B. Private accounting

C. Government and not for profit accounting

D. Accounting education

D. Accounting education

A professional identification card has a validity of ___ years. *

A. 1 year

B. 2 years

C. 3 years

D. 4 years

C. 3 years

CPAs may practice public accountancy under the following forms of organization, except: *

A. Sole proprietorship

B. Limited liability partnership

C. General partnership

D. Corporations

D. Corporations

This is the traditional service provided by CPA firms. *

A. Compilation

B. Audit

C. Tax services

D. Management advisory

B. Audit

All licensed CPAs shall obtain and use a seal of a design prescribed by the *

A. Accounting Standards Council.

B. Board of Accountancy

C. PiCPA

D. PRC

B. Board of Accountancy

A CPA firm offers management advisory services to clients. Its primary purpose is to *

A. Permit the firm's staff members to acquire expertise in other areas of practice

B. Establish the firm as a consultant, thus ensuring its future expansion and growth.

C. Keep the CPA firm competitive with other firms.

D. Furnish professional advice and assistance which will enable the client to improve operations.

D. Furnish professional advice and assistance which will enable the client to improve operations.

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

A. Must not be a director or officer of the APO at the time of his/her appointment

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

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

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

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

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, 2014, the registration will expire on *

A. Sept. 30, 2016

B. Dec. 31, 2017

C. Dec. 31, 2016

D. Aug. 30, 2016

C. Dec. 31, 2016

The CPA 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 the profession: *

A. All of these are required to be indicated

B. Professional Identification Card.

C. Professional tax receipt.

D. CPA Certificate of Registration number.

A. All of these are required to be indicated

The amount of audit fees depend largely on the: *

A. Volume of audit work and degree of competence and responsibility involved.

B. Availability of cash.

C. Amount of the profit for the year.

D. Size and capitalization of the company under audit

A. Volume of audit work and degree of competence and responsibility involved.

The practice of accountancy includes the following, except: *

A. Being appointed as the marketing manager of a business enterprise.

B. Serving as edit examiner for the Commission on Audit.

C. Working as the Dean of a College that grants a degree of BS Accountancy.

D. Provision of assurance services to more than one client and on a fee basis

A. Being appointed as the marketing manager of a business enterprise.

All graduates with a Bachelor's Degree in Accounting shall be allowed to take the CPA Licensure Examination within two years from the effectiveness of RA 9298 under the rules and regulations to be promulgated by the BIA subject to the approval by the PRC. *

A. 1 year

B. 2 years

C. 3 years

D. 4 years

B. 2 years

According to the IRR, this council is tasked to assist the BOA in continuously upgrading accountancy education in the Philippines to make the Filipino CPAs globally competitive. *

A. CPE council

B. Education Technical Council

C. Quality Review Committee

D. Accounting Standards Council

B. Education Technical Council

The Education Technical Council shall be composed of *

A. Six members

B. Seven members with a chairman

C. Seven members with a chairman and a vice-chairman.

D. Eight members with a chairman, a vice-chairman, and a secretary.

B. Seven members with a chairman

Unless there's a valid reason to have additional representation, the PICPA shall have how many national directors? *

A. 12

B. 14

C. 15

D. 20

C. 15

The PICPA national directors shall be apportioned according to four geographic sectors based on the ratio of latest available number of members in good standing from those areas. Which of the following is NOT a geographic sector? *

A. Luzon

B. NCR

C. Mindanao

D. CAR

D. CAR

A PICPA director can only represent a sector in a region if he/she has been a member in good standing in such sector in the region for at least _____ years at the same time of his/her nomination: *

A. 2 years

B. 3 years

C. 4 years

D. 5 years

A. 2 years

A Sectoral Organization has been established to promote the interests of groups of professional accountants. Which of the following is the sectoral organization for CPAs in Public Practice? *

A. GACPA

B. ACPAPP

C. ACPACI

D. ACPAE

B. ACPAPP

Monitoring the compliance with CPE requirements is done by the PRC CPE Council. The PRC CPE Council shall be composed of: *

A. A chairperson and three members

B. A chairperson, vice-chairperson and two members

C. A chairperson and two members

D. A chairperson, vice-chairperson and three members

C. A chairperson and two members

Regarding practice of accountancy, which of the following certificates is issued to a successful passer of the CPA Board Exams first, a certificate of registration or a certificate of accreditation?

A. Certificate of registration.

B. Certificate of accreditation.

C. Both are issued at the same time

D. Neither are issued to CPAs.

A. Certificate of registration.

Statement 1: A registered professional who is working abroad shall be temporarily exempted from compliance with CPE requirements during his/her stay abroad, provided.

Statement 2: Those who failed to renew professional licenses for a period of three continuous years from initial recognition, or from last renewal, shall be declared delinquent. *

A. Both statements are true

B. Statement 1 is true, Statement 2 is false

C. Statement 1 is false, Statement 2 is true

D. Both statements are false

D. Both statements are false

As used in RA 9298, this term refers to the area of practice of accountancy: *

A. Line

B. Section

C. Segment

D. Sector

D. Sector

This organization administers, implements and enforces the regulatory policies of the Philippine Government with respect to the regulation and licensing of the various professions under its jurisdiction, one of which is accountancy.

A. PRC

B. COA

C. PICPA

D. BOA

A. PRC

Who is the person that has the authority to suspend or remove a member of the BOA, on valid grounds and after due process? *

A. President of the Philippines

B. Chairman of Professional Regulatory Board of Accountancy

C. Commissioner of PRC

D. None of them

A. President of the Philippines

The following are 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 RA9298 and its IRR, or the Code of Ethics and technical and professional standards of practice for CPAs.

C. Pending case on a crime involving moral turpitude

D. Manipulation or rigging of the CPA licensure examination results.

C. Pending case on a crime involving moral turpitude

The names under which a CPA practices the profession must: *

A. Not be misleading as to the form of organization.

B. Contain more than three names.

C. Indicate any specialization.

D. Include one fictitious name.

A. Not be misleading as to the form of organization.

A(n) shall do business under their respective duly registered and authorized firm name appearing in the registration documents issued by the Department of Trade and Industry or any other proper government office . *

A. Individual CPA

B. Firm

C. Partnerships of CPAs

D. Corporations of CPAs

B. Firm

Which of the following cannot be mentioned by an author in publicizing a book in accounting? *

A. Name

B. Qualifications

C. Membership in professional organization

D. Services that the author's firm provides

D. Services that the author's firm provides

A professional accountant may invite the following to attend training courses and seminars conducted for the assistance of staff (select the exception): *

A. Staff of the firm

B. Other professional accountants

C. Potential clients

D. Clients

C. Potential clients

This acts provides that only licensed professionals may teach licensure subjects, and provides for the triennial renewal of the Professional Identification Card: *

A. RA 9298

B. PRC Modernization Act

C. IRR of RA 9298

D. PD 1081

B. PRC Modernization Act

The accreditation granted for accounting teachers is valid for: *

A. 1 year

B. 2 years

C. 3 years

D. 4 years

The following are regarded by RA 9298 as CPA services in public practice if offered or rendered on a fee basis and to more than one client:

I. Preparation and signing of audit reports.

II. Professional assistance on accounting procedures.

III. Representation of clients before governmental agencies on tax and other matters regardless of its relation to accounting *

A. I, II, III

B. I and III only

C. I and II only

D. II and III only

C. I and II only

Which of the following statements is correct? *

A. The chairman and members of the Board shall receive compensation and allowances comparable to that being received by the chairman and members of the existing regulatory boards under the PRC as provided for in the General Appropriations Act.

B. No person shall serve in the Board for more than nine years.

C. The BOA chair has the sole power to administer oaths in connection with the administration of the accountancy law.

D. The Board shall be under administrative supervision of the PICPA.

A. The chairman and members of the Board shall receive compensation and allowances comparable to that being received by the chairman and members of the existing regulatory boards under the PRC as provided for in the General Appropriations Act.

May a CPA give a brochure to a non-client? *

A. No, because this is a violation of the revised rules on advertising.

B. Yes, since this is acceptable under revised rules on advertising 2

C. No, unless the non-client becomes a client within 10 days from receipt of the brochure.

D. Yes, if the non-client has made an unsolicited request.

D. Yes, if the non-client has made an unsolicited request.

Which if the following partner profile information may be posted in a firm's website?

A. Name

B. Educational background

C. Postal address, telephone, fax and email address

D. All of these may be posted in a form's website

D. All of these may be posted in a form's website

The constitution of the Philippines requires this office to "keep the general accounts of the Government and for such period as may be provided by law, preserve the vouchers pertaining thereto." *

A. COA

B. Accounting units

C. National Accounting Office

D. Ministry of Finance

A. COA

A CPA firm usually offers non-audit services, such as management advisory services. Its primary purpose is to: *

A. Furnish professional advice and assistance which will enable the client to improve operation

B. Keep the CPA firm competitive with other firm

C. Establish the firm as a consultant, thus ensuring its future expansion and growth.

D. Permit the firm's staff members to acquire expertise in other areas of practice

A. Furnish professional advice and assistance which will enable the client to improve operation

Under this method of billing a client, the external auditors' charges on the basis of actual time spent by principals/partners, supervisors, seniors and juniors at predetermined rates agreed upon with the client. *

A. Per diem basis

B. Flat fee or flat sum basis

C. Retainer basis

D. Maximum fee basis

A. Per diem basis

The following are grounds for the suspension or revocation of certificate of registration and professional identification card, except: *

A. Possession of an unsound mind

B. Unprofessional or unethical conduct, malpractice, or violation of RA9298.

C. Conviction of a criminal offense involving moral turpitude

D. Practice in more than one field of accountancy

D. Practice in more than one field of accountancy

The practice of Accountancy includes Practices in:

I. Public Accountancy

II. Commerce and Industry

III. Education/Academe

IV. Government

A. I, II and III only

B. I, III and IV only

C. I, II and IV only

D. I, II, III and IV

D. I, II, III and IV

Section 4 of the IRR of RA 9298 provides that 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 should be occupied by a duly registered CPA. It provides further that: *

A. The business or company where such a position exists has a paid-up capital of at least P5 M and/or annual revenue of at least P10M.

B. The business or company where such a position exists has a paid-up capital of at least P10 M and/or annual revenue of at least P 5M.

C. The section applies to all incumbents to the position.

D. The section applies only to persons employed after the effectiveness of the Code of Ethics for Professional Accountants in the Philippines.

A. The business or company where such a position exists has a paid-up capital of at least P5 M and/or annual revenue of at least P10M.

The following statements relate to the submission of nominations to the BOA. 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 60 days prior to the expiry of the term of an incumbent chairman or member.

B. The APO shall submit its nominations to the PRC not later than 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 BOA, shall submit to the President of the Philippines a list of 5 nominees for each position.

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

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

The following statements relate to the qualifications of a member of the Board of Accountancy. Which is incorrect? *

A. He/she must be of good moral character and must not have been convicted of crimes involving moral turpitude.

B. He/she must be a duly registered CPA with at least 10 years of work experience in the practice of public accounting.

C. He/she must be a natural-born citizen and a resident of the Philippines

D. He/she must not be a director or officer of APO at the time of his/her appointment.

B. He/she must be a duly registered CPA with at least 10 years of work experience in the practice of public accounting.

The following statements relate to the term of office of the chairman and members of BOA. Which is false? *

A. The chairman and members of BOA shall hold office for a term of 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. No person who has served 2 successive complete terms as Chairman or member shall be eligible for reappointment until the lapse of 2 years.

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

C. No person who has served 2 successive complete terms as Chairman or member shall be eligible for reappointment until the lapse of 2 years.

1. A registered professional shall be permanently exempted from CPE requirements upon reaching the age 60 years old. *

FALSE

2. BOA shall exercise specific powers, functions and responsibilities to supervise the registration, licensure and practice of accountancy. *

TRUE

3. A CPA is in public accounting practice when he/she teaches accounting, auditing, MAS, taxation and other technically related subjects. *

FALSE

4. A member of the Board of Accountancy shall be suspended or removed from office due to neglect of duty or incompetence. *

TRUE

5. The development and improvement of accounting standards that will be generally accepted in the Philippines is one of the objectives of RA 9298. *

FALSE

6. PICPA is the body that is created to assist the BOA in the attainment of the objective of continuous upgrading the accountancy education in the Philippines to make the Filipino CPAs globally competitive. *

FALSE

7. PICPA is the integrated national professional organization of CPA accredited by BOA and PRC per PRC accreditation No. 15 dated October 2, 1975 *

TRUE

8. The creation of FRSC and AASC is intended to assist BOA in carrying out its function to monitor the conditions affecting the practice of public 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. *

TRUE

9. A meaningful experience shall be considered as satisfactory compliance with the requirements of Section 28 of RA 9298 it is earned in 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. *

TRUE

10. The Accountancy Law provides that all working papers made during an audit shall be the property of the auditor. *

TRUE

11. Individual CPAs, Firms or Partnerships of CPAs, including partners and staff members thereof shall be registered with PRC only. *

FALSE