AT - The Accountancy Profession

Auditing Theory Testbanks

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

A. The standardization and regulation of accounting education.
B. The examination for registration of CPAs.
C. Integration of the practice of accountancy
D. The supervision, control and regulation of the practice of accountancy in the Philippines.

C. Integration of the practice of accountancy

S1: The right to practice as a CPA is granted through the Board of Accountancy.
S2: An employee rendering professional services in an accounting or auditing firm is considered to be in the practice of public accountancy.

A. Only S1 is correct.
B. Only S2 is correct.
C. Both statements are correct.
D. Both statements are incorrect.

C. Both statements are correct

A CPA is in public accounting practice when he/she

A. Represents his/her employer before government agencies on tax and other matters related to accounting.
B. Represents his/her clients before government agencies on tax and other matters related to accounting
C. Teaches accounting, auditing, management advisory services, accounting aspects of finance, business law, taxation, and other technically related subjects
D. Holds, or is appointed to a position, in an accounting professional group in government or in a GOCC where decision-making requires professional knowledge in the science of accounting.

B. Represents his/her clients before government agencies on tax and other matters related to accounting

Any position in any business or company in the private sector which requires supervising the recording of financial transactions, preparation of FS, coordinating with the external auditors for the audit of such FS, 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 P5M and/or annual revenue of at least P10M.
B. The above provision shall apply only to persons to be employed after the effectivity of the IRR of RA 9298.
C. The above provision shall not result in deprivation of the employment of the incumbents to the position.
D. That the business or company where the above position exists has an annual revenue of at least P5M and/or paid-up capital of at least P10M.

D. That the business or company where the above position exists has an annual revenue of at least P5M and/or paid-up capital of at least P10M.

S1: The dean of the College of Accountancy that exclusively offers the BSA Program must be a CPA.
S2: The dean of the College of Business, Accountancy, and Management shall be a CPA.
S3: The program chair of the BSA program of the College of Business, Accountancy, and Management must be a CPA.

A. Only one statement is correct.
B. Only two statements are correct.
C. All statements are correct.
D. All statements are incorrect.

B. Only two statements are correct.

S1 and S3 are correct.

The number of recommendees for each position in the Board to be submitted by the PRC is

A. One
B. Three
C. Five
D. Seven

B. Three

PICPA submits 5. PRC selects 3. Then the President appoints one as a chairman.

Which of the following statements about the composition of the BOA is incorrect?

A. The four sectors in the practice of accountancy shall as much as possible be equitably represented in the Board.
B. The Board shall be composed of a chairman and six members.
C. 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 an Accredited Professional Organization (APO).
D. The Board shall elect a chairman from among its members to serve for a term of one year.

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

vice-chairman

The following statements pertain to the qualifications a person should possess to qualify as a member or chairman of the board, except

A. Must be a duly registered CPA with at least ten (10) years of work experience in any scope of practice of accountancy.
B. Must be of good moral character and must not have been convicted of crimes involving moral turpitude.
C. Must not have any pecuniary interest, directly or indirectly, in any school, college, university, or institution conferring an academic degree necessary for admission to the practice of accountancy or where review classes in preparation for the licensure examination are being offered or conducted, nor shall he/she be a member of the faculty or administration thereof at the time of his/her appointment to the Board.
D. Must not be a member, director, or officer of the APO at the time of his appointment.

D. Must not be a member, director, or officer of the APO at the time of his appointment.

Can be a member 🌸

Which of the following is incorrect regarding the term of office of the chairman and members of the Board?

A. No member shall serve for more than 12 years.
B. No person who has served two successive terms shall be eligible for reappointment until the lapse of one year.
C. Appointment to fill up an unexpired term is not to be considered as a complete term.
D. A vice-chairman shall be elected by the Board among themselves to serve as a vice-chairman for three years, renewable.

D. A vice-chairman shall be elected by the Board among themselves to serve as a vice-chairman for three years, renewable.

1 year term only 🎀

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

A. Neglect of duty or incompetence.
B. Violation or tolerance of any violation of RA 9298 and its IRR or the CPA’s Code of Ethics and the technical and professional standards of practice for CPAs.
C. Final judgment of crimes involving moral turpitude.
D. Having a pecuniary interest, directly or indirectly, in any school, college or university.

D. Having a pecuniary interest, directly or indirectly, in any school, college or university.

Which of the following is not a subject in the LECPA?

A. Advance Financial Accounting and Reporting
B. Business Law and Taxation
C. Management Advisory Services
D. Auditing

B. Business Law and Taxation

The following documents shall be submitted by applicants of LECPA, except

A. Certificate of Live Birth
B. College diploma and TOR
C. NBI clearance
D. Certificate of good moral character from an educational institution

D. Certificate of good moral character from an educational institution

An examinee obtained the following ratings during the 2024 examination:

FAR	96	AUD	92
AFAR	94	TAX	64
MAS	94	RFBT	74

Based on the above information, the examinee is considered

A. Passed
B. Topnotcher
C. Conditional
D. Failed

C. Conditional

CONDITIONAL – general average of less than 75%, has a grade of less than 65%, or both, but has obtained 75% and above in at least majority (4 out of 6) of the subjects covered in the licensure examination; retake all subjects lower than 75%

Which of the following statements is incorrect?

A. Professional identification card is a card with a validity of three (3) years, bearing the registration number, date of issuance with an expiry date, due for periodic renewal, duly signed by the Chairperson of the Commission issued by the PRC to a registered CPA upon payment of the annual registration fees for three (3) years.
B. A certificate of registration is a certificate under seal with a validity of three (3) years, bearing a registration number, issued to an individual, by the Commission, upon recommendation by the Board, signifying that the individual has complied with all the legal and procedural requirements for such issuance including, in appropriate cases, having successfully passed the LECPA.
C. Both COR and PIC shall be issued to a candidate who passes the LECPA.
D. The Board has the power to issue, suspend, revoke, and/or reinstate the COR.

B. A certificate of registration is a certificate under seal with a validity of three (3) years, bearing a registration number, issued to an individual, by the Commission, upon recommendation by the Board, signifying that the individual has complied with all the legal and procedural requirements for such issuance including, in appropriate cases, having successfully passed the LECPA.

no expiry!!

The COR of Juan, CPA was revoked by the Board as he was convicted of a crime involving moral turpitude. When can the Board reinstate the validity of his certificate?

A. After he successfully passed another set of CPA board examination.
B. After 2 years from the date of revocation.
C. After 3 years from the date of revocation.
D. He is no longer allowed to reinstate his certificate.

B. After 2 years from the date of revocation.

Which of the following are allowed to practice public accountancy?

I. Single practitioner
II. Limited partnership
III. General partnership
IV. Corporation

A. I and III
B. I and II
C. I, II and III
D. I, II, III and IV

C. I, II and III

A CPA shall not practice under a firm name that includes or indicates the following, except

A. Fictitious name
B. Specialization
C. Misleading as to the type of organization
D. Name(s) of past partner(s) in the firm name of successor partnership

D. Name(s) of past partner(s) in the firm name of successor partnership

Meaningful experience shall be considered as satisfactory compliance with the requirements of Section 28 of RA No. 9298 if it is earned in

A. Commerce and industry and shall include significant involvement in general accounting, budgeting, tax administration, internal auditing, liaison with the COA, 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 of subjects in either financial accounting, business law, and tax, auditing problems, auditing theory, financial management, and management services and the accumulated teaching experience on these subjects shall not be less than three (3) school years.
C. Government and shall include significant involvement in general accounting, budgeting, tax administration, internal auditing, liaison with external auditors, or any other related functions.
D. Public practice and shall include at least one year as auditor in charge and at least two years as audit assistant of audit engagement covering full audit functions of significant clients.

B. Academe/Education and shall include teaching for at least three (3) trimesters or two (2) semesters of subjects in either financial accounting, business law, and tax, auditing problems, auditing theory, financial management, and management services and the accumulated teaching experience on these subjects shall not be less than three (3) school years.

Which statement is correct with respect to continuing professional development (CPD) requirements of members of the accountancy profession?

A. Only members employed in commerce and industry are required to comply with CPD requirements.
B. Only members in public practice are required to comply with CPD requirements.
C. Members, regardless of whether they are in public practice, are required to comply with CPD requirements.
D. There is no requirement for members to comply with CPD requirements.

C. Members, regardless of whether they are in public practice, are required to comply with CPD requirements.

If the application for registration to practice public accountancy of an individual CPA was approved on July 31, 2023, the registration shall expire on

A. September 30, 2025
B. December 31, 2025
C. December 31, 2026
D. The date of birth of the individual in year 2026.

D. The date of birth of the individual in year 2026.

Which of the following organizations are created by the Commission through the powers granted by RA 9298?

I. Auditing and Assurance Standards Council (AASC)
II. Quality Review Committee (QRC)
III. Education Technical Council (ETC)
IV. PRC CPE Council
V. Philippine Institute of Certified Public Accountant (PICPA)

A. I, II and III
B. II, III and IV
C. I, II, III and IV
D. II, III, IV and V

A. I, II and III

Which of the following is not represented in the AASC?

A. Bureau of Internal Revenue
B. Insurance Commission
C. Commission on Audit
D. Securities and Exchange Commission

A. Bureau of Internal Revenue

Which of the following does not have representation in the FSRSC?

A. Insurance Commission
B. Board of Investments
C. Commission on Audit
D. Securities and Exchange Commission

B. Board of Investments

FSRSC, AASC, and ETC are similar in the sense that:

I. They have the same number of members
II. Term of office of members are the same
III. Their members are appointed by the Commission
IV. Their Chairman must be or must have been a senior accounting practitioner in public practice

A. I, II and III
B. I and II only
C. II and III only
D. I, II, III and IV

C. II and III only

Which of the following is a correct qualification of the Chairman and two Commissioners of the COA?

A. A citizen of the Philippines
B. At least 40 years of age upon appointment
C. CPAs with no less than 5 years of auditing experience or members of the Philippine bar who have been engaged in law practice for at least 5 years.
D. Must not have been candidates for any elective position preceding appointment

D. Must not have been candidates for any elective position preceding appointment

Which of the following statements concerning the practice of accountancy is correct?

A. A CPA is in public accountancy when he/she renders his/her professional services as a CPA to more than one client on a fee basis in the design, installation, review, and revision of accounting systems and controls
B. A CPA is in the practice of accountancy in the academe/education when he/she is in an educational institution teaching any of the subjects included in the BSA curriculum
C. A CPA is in the practice of accountancy in commerce and industry when his/her position requires civil service eligibility as a CPA.
D. A CPA is in the practice of accountancy in the government when he/she in involved in the audit or verification of financial transactions and accounting records of his/her clients.

A. A CPA is in public accountancy when he/she renders his/her professional services as a CPA to more than one client on a fee basis in the design, installation, review, and revision of accounting systems and controls

The number of nominees for each position on the Board to be submitted by the APO is

A. One
B. Three
C. Five
D. Seven

C. Five

APO → PRC → President
5 → 3 → 1

S1: The vice-chairman shall preside in all meetings of the Board
S2: The majority of the members of BOA must be from the public accountancy sector.

A. Only S1 is correct.
B. Only S2 is correct.
C. Both statements are correct.
D. Both statements are incorrect.

D. Both statements are incorrect.

Which of the following is not a qualification of a member of the BOA?

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 duly registered CPA with at least ten (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 the APO at the time of his/her appointment.

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

Can be in any scope of practice ✨

S1: The chairman and members of BOA are all appointed by the President of PICPA.
S2: If a person has served the BOA for more than 12 years, he shall be eligible for reappointment until the lapse of 1 year.

A. Only S1 is correct.
B. Only S2 is correct.
C. Both statements are correct.
D. Both statements are incorrect.

D. Both statements are incorrect.

S1 - President of the Philippines
S2:
- The chairman and members of the Board shall hold office for a term of three (3) years
- No person who has served two (2) successive complete terms shall be eligible for reappointment until the lapse of one (1) year
- Maximum of service is 12 years or 4 complete terms

The powers and functions of the Board include the following, except

A. To prescribe and adopt the rules and regulations necessary for carrying out the provisions of this Act
B. To supervise the registration, licensure, and practice of accountancy in the Philippines
C. To administer oaths in connection with the administration of this Act
D. To remove a member of the Board upon due investigation from the Commission

D. To remove a member of the Board upon due investigation from the Commission

Only the President could remove a member he personally appointed

Which of the following is not a subject in the LECPA?

A. AFAR
B. MAS
C. TAX
D. AUD

B. MAS

In other syllabi, it is only MS - Management Services.

The following statements relate to CPA ratings. Which is incorrect?

A. To pass the LECPA, an examinee must obtain a general average of at least 75% with no grades lower than 65% in any given subject.
B. A conditional candidate shall take an examination in the remaining subjects within two years from the preceding examination.
C. An examinee obtaining a general average of less than 75%, has a grade of less than 65%, or both, but has obtained 75% and above in at least majority of the subjects covered in the licensure examination is considered failed.
D. A candidate who fails in two (2) complete CPA Board Examinations shall be disqualified from taking another set of examinations unless he/she submits evidence to the satisfaction of the Board that he/she enrolled in and completed at least 24 units of the subject given in the board exam.

C. An examinee obtaining a general average of less than 75%, has a grade of less than 65%, or both, but has obtained 75% and above in at least majority of the subjects covered in the licensure examination is considered failed.

*Conditional

Evaluate the following

I. All successful candidates in the examination shall be required to take an oath of profession.
II. The oath shall be taken before any BOA member or government official authorized by PRC or by law.
III. An oath is not required for CPAs admitted in the practice of accountancy under reciprocity or international agreements.

A. Only one statement is correct.
B. Only two statements are correct.
C. All statements are correct.
D. All statements are incorrect.

B. Only two statements are correct.

III is incorrect. Still required.

After becoming a sole proprietor, 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. 1 year
B. 2 years
C. 3 years
D. Not allowed

B. 2 years

Only for purposes of winding up the business

S1: A certificate of registration shall be issued to CPAs in public practice only upon showing that such registrant has acquired a minimum of 3 years meaningful experience.
S2: The SEC shall not register any corporation organized for the practice of public accountancy.

A. Only S1 is correct.
B. Only S2 is correct.
C. Both statements are correct.
D. Both statements are incorrect.

B. Only S2 is correct.

S1 - should be certificate of accreditation

Which of the following describes a doctorate degree?

A. Shall refer to a graduate degree in accountancy, business, or related field from a recognized school, college, or university.
B. Shall refer to a postgraduate degree in accountancy, business, or related field from a recognized school, college, or university.
C. Shall mean training or specialization at the post graduate level for a minimum period of one year.
D. None of the above.

B. Shall refer to a postgraduate degree in accountancy, business, or related field from a recognized school, college, or university.

A is referring to masteral’s degree

How many members of AASC are needed to approve the exposed draft or PSA as PSAs?

A. Majority of the regular members.
B. At least eight
D. At least ten
D. At least twelve

D. At least ten

Which of the following is not one of the functions of ETC?

A. Determine a minimum standard curriculum for the study of accountancy to be implemented in all schools offering accountancy as an undergraduate degree.
B. Establish teaching standards, including the qualifications of members of the faculty of schools and colleges of accountancy.
C. Monitor the progress of the program on the study of accountancy and undertaking measures for the attainment of a high quality of accountancy education in the country.
D. Recommend to the Board the revocation of the COR and the PIC of an individual CPA or firm including any of their staff members who have not observed the quality control measures and who have not complied with the standards of quality prescribed for the practice of public accountancy.

D. Recommend to the Board the revocation of the COR and the PIC of an individual CPA or firm including any of their staff members who have not observed the quality control measures and who have not complied with the standards of quality prescribed for the practice of public accountancy.

A function of QRC 🎀

The organization charged with protecting investors and the public by requiring full disclosure of financial information by companies offering securities to the public is the

A. AASC
B. FRSC
C. BOA
D. SEC

D. SEC

A CPA hopeful is currently preparing to apply for the CPALE. Related to this, the applicant should submit the following documents, except:

A. NSO/PSA Certificate of Live Birth
B. NSO/PSA Marriage Contract for married female applicants
C. Valid National Bureau of Investigation (NBI) clearance
D. Transcript of Records (TOR) with scanned picture and remarks “For Employment Purposes”.

D. Transcript of Records (TOR) with scanned picture and remarks “For Employment Purposes”.

For Board Exam Purposes

In connection with the LECPA, which of the following is not correct?

A. The Board of Accountancy shall submit to the PRC the ratings obtained by each candidate within 10 calendar days after the examination, unless extended for just cause.
B. Changes in the subjects in the LECPA shall not be more often than every two years.
C. All successful candidates in the examination are required to take oath of profession, generally, before any member of the Board of Accountancy.
D. A person who is convicted of any criminal offense involving moral turpitude cannot apply for the LECPA.

B. Changes in the subjects in the LECPA shall not be more often than every two years.

*3 years

Two CPA candidates obtained the following ratings in a licensure exam:

Candidate 1 – First Time Examinee
AUD 96
AFAR 90
FAR 63
MS 89
RFBT 73
TAX 93

Candidate 2 – First Time Examinee
AUD 79
AFAR 78
FAR 74
MS 76
RFBT 85
TAX 70

Based on the above information, their status would be:

A. Candidate 1 – Passed Candidate 2 – Conditional
B. Candidate 1 – Conditional Candidate 2 – Conditional
C. Candidate 1 – Conditional Candidate 2 – Passed
D. Candidate 1 – Passed Candidate 2 – Passed

C. Candidate 1 – Conditional Candidate 2 – Passed

A LECPA examinee had the following examination history:

May 2023 Failed.
October 2023 Conditional. To retake two subjects.

Based on this information, determine which of the following statements is/are incorrect:

Statement 1: The examinee is required to retake the relevant subject/s in the immediately succeeding examination in May 2024.
Statement 2: If the examinee takes the removal exam and did not meet the minimum grade requirement on the re-examined subjects, the examinee is required to take a 24-unit refresher course before qualifying for another shot at the LECPA.

A. Statement 1 only
B. Statement 2 only
C. Both of the statements are incorrect.
D. Neither of the statements are incorrect.

A. Statement 1 only

*not required but encouraged

During the October 2022 LECPA, a first-time examinee had the following ratings:

AUD 75
AFAR 74
FAR 62
MS 75
RFBT 75
TAX 75

Based on the above information, which of the following is incorrect?

A. The examinee is required to take all the subjects the next time that the examinee will sit in the LECPA.
B. Financial Accounting and Reporting and Advanced Financial Accounting and Reporting are to be taken the next time the examinee will sit in the LECPA.
C. The examinee has two years to take the removal exam for the affected subjects.
D. All of the above are correct.

A. The examinee is required to take all the subjects the next time that the examinee will sit in the LECPA.

Statement 1: The CPA Certificate of Registration is valid for three years and includes the signatures of the PRC Chairperson and the chairman and members of the Board of Accountancy.

Statement 2: Professional Identification Card has a validity of three (3) years and include the signature of the chairman of the Professional Regulation Commission.

A. Only 1 is true
B. Only 2 is true
C. Both 1 and 2 are true.
D. Both 1 and 2 are false.

B. Only 2 is true

COR - no expiry

The following are true regarding the required CPD units for the BOA accreditation of CPAs, except

A. The 120 CPD units consist of 40 required units and 80 “flexible” units.
B. The three areas of CPD are Competence Area A (Technical Competence), Competence Area B (Professional Skills) and Competence Area C (Professional Values, Ethics and Attitudes).
C. The minimum required CPD units for Competence Area A is 20 units.
D. Professional Values, Ethics and Attitudes includes quality standards based on issuances of professional bodies.

C. The minimum required CPD units for Competence Area A is 20 units.

*30 units

Which of the following is true regarding the current rules involving the Continuing Professional Development?

A. The 15 CPD units required for the renewal of Professional ID Card can be under any competence area.
B. Master’s Degree, Doctorate Degree, or equivalent degrees can be a source of CPD units.
C. Self-directed learning can be a source of CPD units.
D. All of the statements are true.

D. All of the statements are true.

Statement 1: An audit staff is considered to be in practice in commerce and industry since the audit staff is employed by an auditing firm – a private entity.

Statement 2: The accounting personnel of a private entity who coordinate with external auditors is considered to be in public practice for the duration of such coordination.

A. Only 1 is true
B. Only 2 is true
C. Both 1 and 2 are true.
D. Both 1 and 2 are false.

D. Both 1 and 2 are false.

S1 - public practice
S2 - commerce & industry

Which of the following is incorrect regarding the practice in the academe?

A. The Vice President of Academic Affairs of a university offering B.S. Accountancy shall be duly registered CPA.
B. The dean of the College of Business, Economics and Accountancy is not required to be a CPA, provided the program head of the BS Accountancy is a CPA.
C. Members of the Integrated Bar of the Philippines may be allowed to teach business law and taxation subjects to accountancy students.
D. A person teaching accounting, auditing and management advisory services shall be a duly registered CPA.

A. The Vice President of Academic Affairs of a university offering B.S. Accountancy shall be duly registered CPA.

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

A. Must be a natural-born citizen and a resident of the Philippines
B. Must be a duly registered Certified Public Accountant with at least ten (10) years of work experience in public practice of accountancy.
C. Must not be associated to at least one educational institution
D. Must be of good moral character and must not have been convicted of crimes involving moral turpitude

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

*any scope of practice

Which of the following is not true regarding the nomination and appointment of the chairman and members of Board of Accountancy?

A. The Board of Accountancy has seven (7) members including the chairman.
B. The PICPA submits to PRC five (5) nominees for each position.
C. The PRC ranks the nominees submitted by PICPA into two (2) recommendees.
D. The President of the Philippines appoints a member from the list of recommendees ranked by PICPA.

C. The PRC ranks the nominees submitted by PICPA into two (2) recommendees.

*3

Gandalf, CPA, was appointed as a member of the BOA last July 1, 2019. Assuming that he was immediately reappointed for his second term, when will be the earliest date that his third term can start?

A. July 1, 2024
B. July 1, 2025
C. July 1, 2026
D. July 1, 2027

C. July 1, 2026

3 year term. 2 complete terms then lapse of 1 year before reappointment. maximum of 4 complete terms or 12 years

Arwen, CPA, had the following timeline with the BOA:

July 1, 2016 - appointed as a member of the Board of Accountancy to replace a sick member. The sick member was initially appointed last July 1, 2015.
July 1, 2018 – reappointed immediately for a complete term.

Related to this, which of the following is/are correct?

Statement 1: The expiration of her complete term is on July 1, 2022.
Statement 2: Arwen can be reappointed immediately after her complete term.

A. Statement 1 only
B. Statement 2 only
C. Both Statements 1 and 2
D. Neither Statements 1 nor 2

B. Statement 2 only

S1 should be on July 1, 2021.

The following include the powers, functions and responsibilities of the Board, except

A. Ensuring, in coordination with the Commission on Higher Education, that all higher educational instruction and offering of accountancy may comply with prescribed policies, standards and requirements of the course
B. Preparing the questions in the Licensure Examinations for CPAs.
C. Conducting oversight into the quality of audits of financial statements through a review of the quality control measured instituted by auditors.
D. Meting out imprisonment sentences to CPAs who violate the R.A. No. 9298 or the CPA Code of Ethics.

D. Meting out imprisonment sentences to CPAs who violate the R.A. No. 9298 or the CPA Code of Ethics.

Grounds for suspension of a member of the Board include the following, except

A. Final conviction of crimes involving moral turpitude
B. Manipulation or rigging of board exam results
C. Commitment to duty and full competence
D. Violation or tolerance of any violation of RA 9298 and its implementing rules and regulations, CPAs’ Code of Ethics and the technical and professional standards of practice for CPAs

C. Commitment to duty and full competence

A CPA is deemed to be in practice in government when the CPA:

A. Holds, or is appointed to a position in an accounting professional group in government or in a government-owned and/or controlled corporation, where decision-making requires professional knowledge in the science of accounting.
B. Is involved in decision-making requiring professional knowledge in the science of accounting, as well as the accounting aspects of finance and taxation, or is employed in a position that requires a CPA.
C. Holds out himself/herself as one skilled in the knowledge, science and practice of accounting, and as someone qualified to render professional services as a CPA.
D. Is in an educational institution which involves teaching of accounting, auditing, management advisory services, accounting aspect of finance, business law, taxation, and other technically-related subjects.

A. Holds, or is appointed to a position in an accounting professional group in government or in a government-owned and/or controlled corporation, where decision-making requires professional knowledge in the science of accounting.

B - commerce & industry
C - public practice
D - education/academe

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. Retainer basis
C. Flat fee or flat sum basis
D. Maximum fee basis

A. Per diem basis

Public accountancy can be practiced through the following forms, except

A. Individual CPA
B. General professional partnership
C. Limited liability partnership
D. Corporation

D. Corporation

To be accredited in public practice, a CPA shall accumulate at least _______ CPD units

A. 120 units
B. 90 units
C. 60 units
D. 30 units

A. 120 units

Individual CPAs, Firms or Partnerships of CPAs, including partners and staff members thereof shall register with the Board of Accountancy and Professional Regulation Commission. If the application for registration of A & A, CPAs was approved on July 19, 2020, the certificate of accreditation shall be valid for a period of:

A. Two years
B. Three years
C. Four years
D. Indefinitely until suspended or revoked.

B. Three years

Legolas and Gimli, who are CPAs, organized a partnership for the practice of public accounting. Which of the following is the best name of the firm?

A. Legolas and Gimli, CPAs
B. Legolas and Gimli, Auditors and Tax Consultants
C. Legolas and Gimli, Inc.
D. Legolas and Gimli, Members, PICPA

A. Legolas and Gimli, CPAs

Which of the following is correct?

A. “Juan dela Cruz, CPA” denotes an individual CPA
B. “Juan dela Cruz, CPA and Associates” denotes a firm name
C. “Dela Cruz and Panganiban, CPAs” denotes a partnership name
D. The above statements are all correct.

D. The above statements are all correct.

Below are the names of four CPA firms and pertinent facts relative to each firm. Unless other indicated, the individuals named are CPAs and partners, and there are no other partners. Which firm name and related facts indicated a violation of the IRR of RA 9298?

a. Donna and Diana, CPAs (Donna died 25 months ago, Diana is continuing the firm as a sole proprietorship)
b. Jenny, Karla and Donald, CPAs (Jenny died about 10 years ago, Karla and Donald are continuing the firm)
c. Kris and Lucy, CPAs (the name of Kurt, a third active partner is omitted in the firm name)
d. Ann and Marta, CPAs (Marta died 3 years ago; Helen was admitted into the partnership 2 months after Marta’s death)

a. Donna and Diana, CPAs (Donna died 25 months ago, Diana is continuing the firm as a sole proprietorship)

only 2 years is allowed for winding up the business

Practice of accountancy is affected by standard-setting bodies, such as the FSRSC and the AASC. Regarding the chairpersons of FSRSC and AASC, which of the following is correct?

A. The chairperson of FSRSC is appointed by the President of the Philippines, while the chairperson of the AASC is appointed by the Professional Regulation Commission.
B. The chairperson of FSRSC is appointed by the Professional Regulation Commission, while the chairperson of the AASC is appointed by the President of the Philippines.
C. Both the chairpersons of the FSRSC and AASC are appointed by the President of the Philippines.
D. Both the chairpersons of the FSRSC and AASC are appointed by the Professional Regulation Commission.

D. Both the chairpersons of the FSRSC and AASC are appointed by the Professional Regulation Commission.

The following numbers are required to be indicated by the CPA on the documents he/she signs, uses or issues, except

A. Certificate of Registration number
B. Tax Identification number
C. Professional Tax Receipt number
D. Business Telephone number

D. Business Telephone number

Statement 1: Generally, the CPA is not the owner of working papers because these include client’s information.
Statement 2: The public practice of accountancy shall include the offering or rendering of assurance services and non-assurance services to more than one client, on a fee basis.

A. Only 1 is true
B. Only 2 is true
C. Both 1 and 2 are true.
D. Both 1 and 2 are false.

B. Only 2 is true

CPA is the owner of working papers.

The sanctions that may be imposed by the Board of Accountancy for violators of the Republic Act. No. 9298, including its implementing rules and regulations, the Code of Ethics, and other related pronouncements, may include which of the following?

A. A fine of not less than fifty thousand pesos (P50,000.00)
B. Suspension of the CPA’s License, or Revocation of the CPA’s License
C. For foreign CPAs, cancellation of special or temporary permit.
D. All of these are within the power of the BOA to impose.

D. All of these are within the power of the BOA to impose.

Fine of P50k or imprisonment for 2 years, or both.

The following are considered grounds for the suspension or revocation of a CPA’s Certificate of Registration, except

A. The CPA is guilty of immoral and dishonorable conduct.
B. The CPA became of unsound mind.
C. The CPA is convicted of political offense.
D. Violation of the provisions of Code of Ethics for Professional Accountants.

C. The CPA is convicted of political offense.

crime involving moral turpitude only

Which of the following is true when a CPA’s Certificate of Registration has been revoked?

A. For the Certificate of Registration to be reinstated, the CPA is required to retake and pass the LECPA.
B. The revoked Certificate of Registration cannot be reinstated at all.
C. The Board of Accountancy may reinstate the license after the expiration of two years from the date of revocation.
D. The only ground for the revocation of the CPA license is the conviction for a criminal offense involving moral turpitude.

C. The Board of Accountancy may reinstate the license after the expiration of two years from the date of revocation.

2 year lapse → petition (can be denied)