CPAR

1. Who is not permitted by law to practice accountancy?

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

2. A certificate of accreditation shall be issued to certified public accountants in public practice

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

3. A meaningful experience shall be considered as satisfactory compliance with the

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

4. The Accountancy Law provides that all working papers made during an audit shall be the
property of the auditor. These working papers shall include the following, except:
a. Schedules and memoranda made by the CPA and his staff.
b. Working papers prepared and submitted by the client.
c. Excerpts or copies of documents furnished the auditor.
d. Reports submitted by the CPA to the client.
5. Individual CPAs, Firms or Partnerships of CPAs, including partners and staff members
thereof shall register with the BOA and the PRC. If the application for registration of AB and
Co., CPAs was approved on August 30, 2005, it shall file for renewal on or before
a. September 30, 2007 c. December 31, 2007
b. September 30, 2008 d. August 30, 2008

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

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

8. The primary duty to enforce the provisions of RA 9298 and its IRR rests with
a. The PRC c. The PRC and BOA
b. The BOA d. The AASC
9. The PICPA shall renew its Certificate of Accreditation once every how many years after the
date of the Resolution granting the petition for re-accreditation and the issuance of the said
certificate upon submission of the requirements?
a. 2 years b. 3 years c. 4 years d. 6 years

10. Below are the names of three CPA firms and pertinent facts relative to each firm. Unless
otherwise indicated, the individuals named are CPAs and partners, and there are no other
partners. Which firm name and related facts indicates a violation of the IRR of RA 9298?
a. Joyce, Ara and Angela, CPAs (Joyce died about 10 years ago, Ara and Angela are
continuing the firm)
b. Lupin and Fujico, CPAs ( the name of Goymon a third active partner is omitted in the firm
name)
c. Hugo and Pugo, CPAs (Hugo died 25 months ago, Pugo is continuing the firm as a sole
proprietor)
d. Bubu and Bibi, CPAs (Bibi died 3 years ago, Bobot was admitted into the partnership 2
months after Bibi’s death.)
RESA
1. Which of the following is not a requirement in applying for ASEAN Chartered
Professional Accountant?
a. Letter of intent addressed to the ASEAN Monitoring Committee on Professional
Accountancy Services of the Philippines
b. Photocopies of CPD certificates of credit units earned
c. Validated rating in the BOA CPA Licensure Examination
d. All of the above are included in the checklist of requirements
ANS. C

2. Regulations of the accounting profession applicable to Filipino CPAs include the

following except:
a. Public regulation as provided for in the Philippine Accountancy Act of 2004
b. Regulation within the profession, through the implementation of the Code of Ethics
c. Regulation within the firm, through the implementation of a system of quality control
d. Regulation within the profession, through the implementation of the ASEAN MRA
ANS. D

3. In the PRC, the receipt and processing of ASEAN Chartered Professional Accountant
(ACPA) applications is under the jurisdiction of:
a. Professional Regulatory Boards (PRBs) Secretariat Division
b. Continuing Professional Development Division
c. Professional Registry Division
d. International Affairs Division
ANS. D

4. The Philippine Accountancy Act of 2004-shall provide for and govern:

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 answers
ANS. D
 5. A person is deemed to be in practice of the accounting profession in commerce and
industry when she/he:
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. 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
d. 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
ANS. B

6. According IRR of RA 9298, the following can teach business law:

CPAS Members of IBP
a. YES YES
b. YES NO
c. NO YES
d. NO NO
ANS. A

7. CPD competence areas imclude:

a. Technical competence
b. Professional skills
c. Professional values, ethics, and attitudes
d. All of the above
ANS. D

8. With reference to membership in the International Federation of Accountants (IFAC),

Filipino CPAS are required to accumulate 120 credit units of CPD as compliance to:
a. International Education Standard (IES) 7
b. International Education Standard (IES) 4
c. International Education Standard (IES) 3
d. International Education Standard (IES) 2
ANS. A
 9. The Board of Accountancy, subject to the approval of the PRC, may revise or exclude
any of the subjects and their syllabi and add new ones as the need arises, provided that
the change shall not be more often than:
a. Every two years
b. Every three years
c. Every four years
d. Every five years
ANS B

10. Which of the following is not a ground for the suspension or revocation of certificate of
registration and professional identification card?
a. Possession of an unsound mind
b. Practice in more than one field of accountancy
c. Conviction of a criminal offense involving moral turpitude
d. Unprofessional or unethical conduct, malpractice, or violation of RE 9298
ANS B

11. S1 A BSA graduate is allowed to practice public accountancy under his or her own name
immediately upon passing the CPA Board Exams
S2 The certificate of accreditation to practice public accountancy is granted only once
and remains in effect until withdrawn, suspended, or revoked in accordance with RA no.
9298.
a. True, true
b. True, false
c. False, True
d. False, False
ANS D

12. Which of the following statement is correct?

a. Single practitioner and partnerships for the practice of public accountancy shall be
registered certified public accountants in the Philippines
b. A certified of accreditation shall be issued to certified public accountants in public
practice only upon showing, that such registrant has acquired a maximum of three (3)
years meaningful experience in any of the areas of public practice including taxation.
c. Meaningful experience, as mentioned by RA 9298 are explained in detail under PSA 220.
d. The SEC shall register corporation organized for the practice of public accountancy
ANS A
 13. According to Board Resolution 71 Series of 2004, individual CPAs, Firms or Partnerships
of CPAs, including partners and staff members thereof shall register with the Board of
Accountancy and the Professional Regulation Commission. If the application for
registration of James and Sison, CPAs, was approved on July 19,2013, it shall file for
renewal on or before:
a. July 19, 2016
b. September 30, 2015
c. September 30, 2016
d. December 31, 2015
ANS B

14. Which of the following functions would usually be performed by a senior associate?
a. Signs the audit report
b. Assumes overall responsibility
c. Performs detailed audit procedure
d. Prepares the audit program and performs more complex audit procedures
e. Tasked with liaison work between partners and other team members
ANS D

15. The amount of professional fees depend largely on the:

a. Size and capitalization of the company under audit
b. Amount of profit for the year
c. Availability of cash
d. Volume of audit work and degree of competence and responsibilities involved
ANS D

16. 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
ANS A

17. 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
ANS D

18. 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 the revised rules on advertising
c. No, unless the non-client becomes a client within 10days from receipt of the brochure
d. Yes, if the non-client has made an unsolicited request
ANS D

19. Subjects or citizens of foreign countries:

a. May be allowed to practice accountancy in the Philippines, regardless of the
provisions of existing laws and international treaty obligations, including mutual
recognition agreements entered into by the Philippine government with other
countries
b. Are not allowed to practice accountancy in the Philippines, unless they take, and pass,
the certified public accountant licensure examination given by the Board of
Accountancy
c. May be allowed to practice accountancy in the Philippines, subject to the provisions
of existing laws and international treaty obligations, including mutual recognition
agreements entered into by the Philippine government with other countries
d. Are never allowed to practice accountancy in the Philippines because they will
jeopardize the interests of Filipino certified public accountants
ANS C

20. RA No. 9298 provides that temporary or special permits may be issued to Foreign CPAs
in the following situations:
a. A foreign CPA was called for consultation which, in the judgment of the Board of
Accountancy, is essential for the development of the Philippines. The permits restricts
the foreign CPA’s practice to the particular consultation work being performed. No
Filipino CPA was qualified for such consultation.
b. A foreign CPA was engaged to lecture on fields essential to accountancy education in
the Philippines. The permit restricts the CPA to teaching only, and limited public
practice provided such practice is conducted outside class hours.
c. A foreign CPA, an IFRS expert, is engaged for services deemed essential for the
advancement of accountancy in the Philippines which can also be performed by
Filipino CPAs
d. All the above situations do not justify the issuance of a temporary or special permit.
ANS A
21. Violations of the IRR shall subject the CPA to fines and penalties as provided for in RA
No. 9298, including it IRR. Such violations include:
a. Engaging in public accounting practice without first registering with the BOA and the
SEC
b. Continuing to engage in the practice of public accountancy after the expiration of the
registration/ accreditation
c. Continuing to engage in the practice of public accountancy after suspension,
revocation, or withdrawal registration
d. Giving any false information, Data, statistics, reports or other statement which tend to
mislead, obstruct, or obscure the registration of an individual CPA, firm or
partnership of CPAs under IRR
e. Giving any misrepresentation to the effect the registration was secured in truth when
in fact, it was not secured
f. Failure or refusal to undergo quality review
g. All of the answers
ANS G

22. Sectoral organizations have 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. Nacpae
ANS B

23. This committee is created to conduct an oversight into quality of audits of financial
statements through a review of the quality control measures instituted by individual
CPAs, Firms, or Partnership
a. Quality Review Council
b. Quality Control Committee
c. Quality Review Committee
d. Engagement Quality Control Review
ANS C
 24. The QRC shall have the following functions:
a. Conduct quality control review on applicants for registration to practice public
accountancy and render a report on such quality review
b. Revoke the certificate of registration and professional ID if an individual CPA, firm
or partnership of CPAs who have not observed quality control measures
c. All of the answers
d. None of the answers
ANS A

25. In compliance with the SEC, auditors accredited under this/these group/s are allowed to
perform FS audit services to lending companies
a. Group A only
b. Group A and B only
c. Group A, B and C only
d. Group D only
ANS C
CRC-ACE
1. Who is not permitted by RA 9298 to practice public accountancy?
a. A general partnership
b. A limited liability partnership
c. A sole proprietorship
d. A corporation, whose stockholders are all CPAs

2. According to RA 9298, if a partner in a two-member partnership dies, the surviving

partner may continue to practice as an individual under the existing firm title which includes the
deceased partner’s name
a. For a period of time not to exceed five years
b. For a period of time not to exceed two years
c. Indefinitely
d. Until the partnership pay-out to the deceased partner’s estate I terminated

3. 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 three years on or before
a. April 15
b. December 31
c. September 30
d. May 31

4. A certificate of accreditation shall be issued to CPAs in public practice only upon

showing, 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
areas of public practice including taxation.
a. 2 b. 3 c. 4 d. 5
PRTC
1. Firm includes the following, except
a. A sole practitioner professional accountant.
b. An entity that controls a partnership of professional accountants.
c. An entity controlled by a partnership of professional accountants.
d. A sole practitioner, partnership or corporation of professional accountants.

2. The Code of Ethics for Professional Accountants in the Philippines defined “practice” as
a. A distinct sub-group, whether organized on geographical or practice lines.
b. An entity under common control, ownership or management with the firm or any entity
that a reasonable and informed third party having knowledge of all relevant information
would reasonably conclude as being part of the firm national or internationally.
c. Any service requiring accountancy or related skills performed by a professional
accountant including accounting, auditing, taxation, management consulting and financial
management services.
d. A sole proprietor or a partnership of professional accountants which offers
professional services to the public.

3. The communication to the public of facts about a professional accountant which are not
designed for the deliberate promotion of that professional accountant.
a. Publicity c. Indirect promotion
b. Advertising d. Solicitation

4. Advertising, as defined in the Code of Ethics, means

a. The communication to the public of facts about a professional accountant which are not
designed for the deliberate promotion of that professional accountant.
b. The approach to a potential client for the purpose of offering professional services.
c. The communication to the public of information as to the services or skills provided by
professional accountants in public practice with a view to procuring professional business.
d. Any of the above.

5. Existing accountant, as defined in the Code of Ethics, means

a. A professional accountant employed in industry, commerce, the public sector or
education.
b. A professional accountant in public practice currently holding an audit appointment or
carrying out accounting, taxation, consulting or similar professional services for a client.
 c. Those persons who hold a valid certificate issued by the Board of Accountancy.
d. A sole proprietor, or each partner or person occupying a position similar to that of a
partner and each staff in a practice providing professional services to a client irrespective of
their functional classification (e.g., audit, tax or consulting) and professional accountants in
a practice having managerial responsibilities.

6. The term professional accountant in public practice includes the following, except
a. A sole proprietor providing professional services to a client.
b. Each partner or person occupying a position similar to that of a partner staff in a practice
providing professional services to a client.
c. Professional accountants employed in the public sector having managerial responsibilities.
d. A firm of professional accountants in public practice.

7. The term receiving accountant includes the following, except

a. A professional accountant in public practice to whom the existing accountant has referred
tax engagement.
b. A professional accountant in public practice to whom the client of the existing accountant
has referred audit engagement.
c. A professional accountant in public practice who is consulted in order to meet the needs of
the client.
d. A professional accountant in public practice currently holding an audit appointment or
carrying out accounting, taxation, consulting or similar professional services for a client.

8. A profession is distinguished by certain characteristics including

I. Mastery of a particular intellectual skill, acquired by training and education.
II. Adherence by its members to a common code of values and conduct established by its
administrating body, including maintaining an outlook which is essentially objective.
III. Acceptance of a duty to society as a whole (usually in return for restrictions in use of a
title or in the granting of a qualification).
a. I, II and III c. III only
b. I and II only d. II and III only

9. In the marketing and promotion of themselves and their work, professional accountants
should
a. Not use means which brings the profession into disrepute.
b. Not make exaggerated claims for the services they are able to offer, the qualifications they
possess, or experience they have gained.
 c. Not denigrate the work of other accountants.
d. All of the above.
10. Which of the following is not likely to create a threat to independence?
a. The total fees generated by an assurance client represent a large proportion of a firm’s
total fees.
b. Fees due from an assurance client for professional services remain unpaid for a long time.
c. A firm obtains an assurance engagement at a significantly lower fee level than that
charged by the predecessor firm, or quoted by other firms.
d. A court or other public authority established fees.

11. A client company has not paid its 2003 audit fees. According to the Code of Professional
Conduct, for the auditor to be considered independent with respect to the 2004 audit, the 2003
audit fees must be paid before the
a. 2003 report is issued c. 2004 report is issued
b. 2004 field work is started d. 2005 field work is started

12. Fees calculated on a predetermined basis relating to the outcome or result of a transaction or
the result of the work preformed.
a. Contingent fees c. Flat sum fees
b. Retainer fees d. Per diem fees

13. Which of the following is least likely to create a threat to independence?

a. The fees generated by the assurance client represent a large proportion of the revenue of
an individual partner.
b. The firm charges a contingent fee to an assurance client.
c. Accepting gifts or hospitality, the value of which is clearly insignificant, from an
assurance client.
d. When litigation takes place, or appears likely, between the firm or a member of the
assurance team and the assurance client.

14. Which statement is incorrect regarding professional fees?

a. Professional fees should normally be computed on the basis of appropriate rates per hour
or per day for the time of each person engaged in performing professional services.
b. The appropriate rates should be based on the fundamental premise that the organization
and conduct of the professional accountant in public practice and the services provided to
clients are well planned, controlled and managed.
c. It is for each professional accountant in public practice to determine the appropriate rates.
 d. It is not proper for a professional accountant in public practice to charge a client a lower
fee than has previously been charged for similar services
15. The Rules of Conduct will ordinarily be considered to have been violated when the
professional accountant represents that specific consulting services will be performed for a stated
fee and it is apparent at the time of the representation that the
a. Actual fee would be substantially higher.
b. Actual fee would be substantially lower than the fees charged by other professional
accountants for comparable services
c. Fee was a competitive bid.
d. Professional accountant would not be independent.

16. Which of the following fee arrangements would violate the Code of Professional Conduct?
a. A fee based on the approval of a bank loan.
b. A fee based on the outcome of a bankruptcy proceeding.
c. A per hour fee that includes out-of-pocket expenses.
d. A fee based on the complexity of the engagement.

17. The amount of audit fees depend largely on the

a. Size and capitalization of the company under audit.
b. Amount of profit for the year.
c. Availability of cash.
d. Volume of audit work and degree of competence and responsibilities involved.

18. In determining audit fees, an auditor may take into account each of the following except
a. Volume and intricacy of work involved.
b. Degree of responsibility assumed.
c. Number and cost of manhours needed.
d. Size and amount of capital of client.

19. Under this method of billing a client, the external auditors charges on the basis of time spent
by principals/partners, supervisors, seniors and juniors at predetermined rates agreed upon with
the client
a. Maximum fee basis c. Flat sum basis
b. Retainer basis d. Per diem basis
20. Which of the following is true regarding advertising and solicitation?
a. Advertising, but not solicitation, by individual professional accountants in public practice
is permitted in the Philippines.
b. It is clearly desirable that the public should be aware of the range of services available
from a professional accountant.
c. Solicitation, but not advertising, by individual professional accountants in public practice
is permitted in the Philippines.
d. A professional accountant in public practice in the Philippines, where advertising is
prohibited, may advertise in a newspaper or magazine published in a country where
advertising is permitted.

22. Publicity by individual professional accountants in public practice is acceptable provided:

A B C D
• It has as its object the notification to the public
or such sectors of the public as are concerned,
of matters of fact in a manner that is not false,
misleading or deceptive Yes Yes No Yes
• It is in good taste Yes Yes Yes Yes
• It is professionally dignified Yes Yes Yes No
• It avoids frequent repetition of, and any undue
prominence being given to the name of the
professional accountant in public practice Yes No No Yes

23. Which of the following is not acceptable?

a. An appointment of a professional accountant in a matter of national importance was
publicized.
b. A professional accountant writes a letter to another professional accountant seeking
employment or professional business.
c. A professional accountant is listed in a directory that could reasonably be regarded as a
promotional advertisement for those listed therein.
d. A professional accountant who authored an article on professional subject, stated his name and
professional qualifications and gave the name of his organization.

24. Which of the following is acceptable?

a. A professional accountant invited a potential client to attend training courses or seminars
conducted for the assistance of staff.
b. Job specification that gives some detail as to one or more of the services provided to clients by
the professional accountant in public practice was communicated to the public through the
classified ads section of a newspaper.
c. A professional accountant in public practice indicated in his stationery that he is a tax expert.
d. A professional accountant developed a website that contains self-laudatory statements
designed to solicit clients.

25. Professional accountant who author books or articles on professional subjects, may state
A B C D
• His or her name Yes Yes Yes Yes
• Professional qualifications Yes Yes Yes No
• Name of organization Yes Yes No No
• Information as to the services his or her firm
provide Yes No No No

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

27. A meaningful experience shall be considered as satisfactory compliance with the

requirements of Section 28 of RA 9298 if it is earned in (Choose the incorrect one)
a. Commerce and industry and shall include significant involvement in general accounting,
budgeting, tax administration, internal auditing, liaison with external auditors, representing
his/her employer before government agencies on tax and matters related to accounting or any
other related functions.
b. Academe/education and shall include teaching for at least three (3) trimesters or two (2)
semesters subjects in either financial accounting, business law and tax, auditing problems,
auditing theory, financial management and management services.
c. Government and shall include significant involvement in general accounting, budgeting,
tax administration, internal auditing, liaison with the Commission on Audit or any other related
functions.
d. Public practice and shall include at least two years as audit assistant and at least one year
as auditor in charge of audit engagement covering full audit functions of significant clients.
28. Below are the names of three CPA firms and pertinent facts relative to each firm. Unless
otherwise indicated, the individuals named are CPAs and partners, and there are no other
partners. Which firm name and related facts indicates a violation of the IRR of RA 9298?
a. Joyce, Ara and Angela, CPAs (Joyce died about 10 years ago, Ara and Angela are continuing
the firm)
b. Lupin and Fujico, CPAs ( the name of Goymon a third active partner is omitted in the firm
name)
c. Hugo and Pugo, CPAs (Hugo died 25 months ago, Pugo is continuing the firm as a sole
proprietor)
d. Bubu and Bibi, CPAs (Bibi died 3 years ago, Bobot was admitted into the partnership 2
months after Bibi’s death.)