No. 125 Brgy.

San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

AT.08.03 – The Accountancy Profession

1. Which of the following is not one of the objectives of RA 9298 – The Philippine Accountancy Act
of 2004?
a. Standardization and regulation of accounting education
b. Examination for registration of certified public accountants
c. Supervision, control and regulation of the practice of accountancy in the Philippines
d. Specific independence requirements for assurance engagements performed by CPAs.

2. Statement 1: The primary duty of effectively implementing the provisions of the Philippine
Accountancy Act rests with the PRC and BOA.
Statement 2: The Secretary of Justice or his duly designated representative shall act as legal
adviser to PRC and BOA in carrying out the provisions of the Philippine Accountancy Act.
a. True, True
b. True, False
c. False, True
d. False, False

3. The Professional Regulatory Board of Accountancy (PRBOA) is composed of

a. A Chairman and four (4) members (5 in total)
b. A Chairman and five (5) members (6 in total)
c. A Chairman and six (6) members (7 in total)
d. A Chairman and seven (7) members (8 in total)

4. Any position in any business or company in the private sector which requires supervising the
recording of financial transactions, preparation of financial statements, coordinating with the
external auditors for the audit of such financial statements, and other related functions shall be
occupied only by a duly registered CPA. Provided (choose the incorrect statement)
a. That the business or company where the above position exists has an annual revenue of
at least Php5,000,000 and/or paid-up capital of at least Php10,000,000.
b. The above provision shall apply only to persons to be employed after the effectivity of the
Implementing Rules and Regulations of RA 9298.
c. The above provision shall not result to deprivation of the employment of incumbents to
the position.
d. That the business or company where the above position exists has an annual revenue of
at least Php10,000,000 and/or paid-up capital of at least Php5,000,000.

5. The following statements relate to the submission of nominations to the Board of Accountancy.
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 sixty (60) days prior to the
expiry of the term of an incumbent chairman or member.
b. The Accredited National Professional Organization of CPAs (APO) shall submit its
nominations to the PRC not later than ninety (90) 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 the Board of Accountancy shall submit to the president of the
Philippines a list of five (5) nominees for each position.
d. There is no requirement as to the exact number of members from each of the four (4)
sectors in the PRC-BOA; but as much as possible all sectors are equitably represented.

6. Which of the following statement/s about the qualifications of members of the Professional
Regulatory Board of Accountancy is/are always correct?
a. A member of the Board shall be a natural-born Filipino citizen and a resident of the
Philippines.
b. A member of the Board shall be a duly registered Certified Public Accountant with at least
ten (10) years of work experience in Public Practice of Accountancy.
c. A member of the Board shall not have any pecuniary interest, directly or indirectly, in any
accounting or auditing firm/s performing assurance engagements. A member of the Board
is allowed however, to be affiliated in an accounting or auditing firm if he/she handles non-
assurance engagements.
d. All of the above statements are correct.

7. I. The chairman and members of BOA are all appointed by the president of the Philippines.
II. The chairman of BOA is appointed by the president of the Philippines, while the rest of the
members are appointed by PRC.
III. All members of the BOA, must not be a director or officer of the APO at the time of their
appointment.
Which of the above statement(s) is/are false?
a. I and II
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JABELLAR/AJABINAL
JMAGLINAO/RBERCASIO/ASARMIENTO/JGERONIMO
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

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

8. Which of the following statement/s about the term of office for the Chairman and members of the
Board is/are incorrect?
a. The Chairman and members of the Board shall hold office for a term of three (3) years.
b. Any vacancy occurring within the term of a member shall be filled up for the unexpired
portion of the term only. Appointment to fill up an unexpired term is not to be considered
as a complete term.
c. No person who has served two (2) successive complete terms shall be eligible for
reappointment until the lapse of one (1) year.
d. None of the above.

9. The following statements relate to CPA examination ratings. Which of the following statements is
incorrect?
a. To pass the examination, candidates should obtain a general weighted average of 75%
and above, with no rating in any subject less than 65%.
b. Candidates who obtain a rating of 75% and above in at least (4) subjects shall receive a
conditional credit for the subjects passed, provided that he/she has no rating in any subject
less than 65%.
c. Conditioned candidates shall take an examination in the remaining subject within two (2)
years from the preceding examination.
d. Candidates who fail in two (2) complete CPA examinations may be allowed to take
examinations a third time provided he/she submits evidence to the satisfaction of the
Board that he/she enrolled in and completed at least twenty-four (24) units of subject given
in the board exam.

10. Isko obtained the following ratings in his recently finished CPA Licensure Examinations: TAX:
65%, AFAR: 65%, RFBT: 70%, MAS: 75%, AUD: 84%, FAR: 90%. What is his status in this
examination?
a. Passed, with a General Weighted Average of 75%.
b. Passed, with a General Weighted Average of 74.83%.
c. Conditioned, and must re-take both Taxation and AFAR subjects.
d. Failed.

11. Lucy, a CPA candidate obtained the following ratings in the recently conducted CPA Licensure
exams: AUD: 75%, FAR: 82%, TAX: 74%, AFAR: 71%, RFBT: 72%. What rating should Lucy have
gotten in her MAS examinations for her to be able to pass the licensure exams?
a. 65%
b. 74%
c. 75%
d. 76%

12. If Lucy was not able to obtain at least the rating required in #11, she will be considered as
____________.
a. Failed
b. Conditioned
c. Either A or B
d. Neither A nor B

13. According to PRBOA Resolution 2020-46, which of the following is allowed to offer special
refresher course to CPA candidates?
a. CHED-accredited institutions offering a degree of B.S. in Accountancy with a national
passing rate of at least 5% and have at least 5 examinees in the CPALE for the last 10
years.
b. CHED-accredited institutions offering a degree of B.S. in Accountancy, with a national
passing rate of at least 10% and have at least 10 examinees in the CPALE for the last 5
years.
c. Review schools with a national passing rate of at least 10% and have at least 10
examinees in the CPALE for the last 5 years.
d. All of the above.

14. The Certificate of Accreditation issued to educational institutions authorized to conduct refresher
courses in relation to the CPA Licensure Exams shall be renewed every _________ years
provided all requirements set forth in PRBOA Resolution 2020-46 are complied with.
a. One
b. Two
c. Three
d. Five

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JABELLAR/AJABINAL
JMAGLINAO/RBERCASIO/ASARMIENTO/JGERONIMO
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

15. The Certificate of Completion as evidenced by the Transcript of Records (TOR) issued by qualified
schools to offer refresher course shall be valid for ______ year/s from the date of completion to
ensure relevance of the subjects taken in the refresher course.
a. One
b. Two
c. Three
d. Five

16. Certificates of Completion issued by schools prior to adoption of PRBOA Resolution 2020-46 shall
be valid for ______ year/s from the date of issuance, provided that no confirmed report has been
received by the Board that the Certificates of Completion are spurious or the applicants did not
actually enroll and attended the refresher course.
a. One
b. Two
c. Three
d. Such certificates are no longer valid.

17. The Board of Accountancy shall submit to the PRC the ratings obtained by each candidate within
how many calendar days after the examination?
a. 1
b. 2
c. 5
d. 10

18. The Professional Identification Card issued to successful examinees

a. Is renewable every three years.
b. Is renewable every ten years.
c. Shall remain in full force and effect until withdrawn, suspended or revoked in accordance
with RA 9298.
d. Shall bear the signature of the PRC Chairperson and the chairman and members of the
BOA.

19. A partner surviving the death or withdrawal of all the other partners in a partnership may continue
to practice under the partnership name for a period of not more than ________ years after
becoming a sole proprietor.
a. 1
b. 2
c. 3
d. 4

Use the following information for items 17-20.

I. Board of Accountancy
II. Commission on Audit
III. Securities and Exchange Commission
IV. Bangko Sentral ng Pilipinas
V. Bureau of Internal Revenue
VI. Insurance Commission

20. Which of the above regulatory agencies are represented both in the FSRSC and AASC?
a. I, II and III
b. I, II, III and IV
c. I, II, III, IV and VI
d. All of the above are represented both in the FSRSC and AASC.

21. Which of the above regulatory agencies have more than one representative in the AASC?
a. III only
b. IV only
c. III and IV
d. None of the above.

22. Which of the above regulatory agencies is/are represented in AASC, but not in FSRSC?
a. VI only
b. V only
c. V and VI
d. None of the above.

23. Which of the above regulatory agencies is/are represented in FSRSC, but not in AASC?
a. VI only
b. V only
c. V and VI

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JABELLAR/AJABINAL
JMAGLINAO/RBERCASIO/ASARMIENTO/JGERONIMO
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

d. None of the above.

24. Statement 1: Josh, a newly licensed CPA, is required to comply only to a minimum of 15 CPD
credit units for his 1st renewal cycle.
Statement 2: Only CPAs acquiring or renewing BOA accreditation (including accreditation as
ASEAN CPA) are required to comply with the 120 CPD credit unit requirements based on PRC
Resolution No. 2019-1146.
Statement 3: Ronald, a 70-year-old CPA is considered permanently exempted from the CPD credit
unit requirements of PRBOA.

Which of the above statements is/are true?

a. I only
b. I and II only
c. II and III only
d. All of the above statements are true.

25. According to PRBOA Resolution 2020-22, The Auditing and Assurance Standards Council (AASC)
shall be composed of:
a. Fifteen (15) members with a Chairman
b. Fourteen (14) members with a Chairman
c. Eighteen (18) members with a Chairman
d. Twenty (20) members with a Chairman

26. Which of the following is correct regarding the minimum composition of major areas of competence
on CPD requirements for CPAs applying for BOA accreditation?
a. Technical Competence – 30 units, Professional Skills – 10 units, Professional Values,
Ethics and Attitudes – 10 units
b. Technical Competence – 40 units, Professional Skills – 10 units, Professional Values,
Ethics and Attitudes – 10 units
c. Technical Competence – 30 units, Professional Skills – 5 units, Professional Values,
Ethics and Attitudes – 5 units
d. Technical Competence – 40 units, Professional Skills – 5 units, Professional Values,
Ethics and Attitudes – 5 units

27. Statement 1: PRBOA Resolution 2022-29 increases the membership of the FRSC from fifteen (15)
to sixteen (16), with the additional representative coming from the Insurance Commission.
Statement 2: There is currently no existing standards on sustainability disclosures in the
Philippines. However, PRBOA will adopt the IFRS Sustainability Disclosure Standards to be
developed by the International Sustainability Standards Board (ISSB) in the preparation of
general-purpose financial statements.
Statement 3: PRBOA Resolution 2022-44 renames the Financial Reporting Standards Council
(FRSC) to Financial Statements and Regulatory Standards Council (FSRSC) considering the
effects of regulatory requirements on sustainability reporting in the Philippines.
a. All statements are true.
b. Only one statement is true.
c. Two of the statements are true.
d. All statements are false.

28. The Implementing Rules and Regulations (IRR) of RA 9298 creates the Quality Review Committee
or the QRC. Which of the following best defines the main purpose of this committee?
a. To conduct an oversight into the quality of audit of financial statements through a review
of the quality control measures instituted by Individual CPAs, Firms or Partnerships in
order to ensure compliance with accounting and auditing standards and practices,
pursuant to RA 9298.
b. To further assist the Board in the attainment of the objective of continuously upgrading
the accountancy education in the Philippines to make the Filipino CPAs globally
competitive.
c. To accept, evaluate and approve applications for accreditation of CPE providers and their
respective programs and activities.
d. To investigate violations and non-compliance with the requirements of RA 9298.

29. Under foreign reciprocity, special/temporary permit may be issued by the Board, subject to the
approval of the Commission and payment of the fees the latter has been prescribed and charged
thereof to the following persons, except
a. A foreign CPA called for consultation or for a specific purpose which, in the judgment of
the Board, is essential for the development of the country.
b. A foreign CPA engaged as a professor, lecturer or critic in fields essential to accountancy
education in the Philippines.
c. A foreign CPA who is an internationally recognized expert or with specialization in any
branch of accountancy and his/her service is essential for advancement of accountancy
in the Philippines.

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JABELLAR/AJABINAL
JMAGLINAO/RBERCASIO/ASARMIENTO/JGERONIMO
 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

d. A foreign CPA who is handling a multi-national client with branches/subsidiaries within the
Philippines.

30. Statement 1: According to PRBOA Resolution 2022-53, an individual partner who resigns from the
accredited partnership/firm and who opted to be accredited as a sole practitioner shall be required
to surrender his/her original copy of his Certificate of Accreditation as Individual Partner for
cancellation and fill out the prescribed Application Form (Annex A) and submit all the documentary
requirements listed therein and pay the accreditation fee of One Thousand Five Hundred Pesos
(P1,500.00).
Statement 2: In calculating the allowable validity period of accreditation of approved applications,
wherein the applicant has a PIC validity period of three (3) years or more, the accreditation validity
period shall only have a maximum validity period of three (3) years until the birth month of the
applicant.
Statement 3: Applications for the renewal of accreditation for practitioners filing for renewal more
than three (3) years after the date of expiry shall be deemed as initial applicants and Section 12
of PRBOA Resolution 2022-53 shall be applied in the computation of the accreditation validity
period.
a. All statements are true.
b. Only one statement is true.
c. Two of the statements are true.
d. All statements are false.

*End of Handout*

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JABELLAR/AJABINAL
JMAGLINAO/RBERCASIO/ASARMIENTO/JGERONIMO