SCOPE, OBJECTIVE AND RULE OF PRACTICE

1. Under Section 2 of RA 9298, the State recognizes the importance of

accountants in nation building and development. Hence, it shall
develop and nurture competent, virtuous, productive and well-
rounded professional accountant whose standards and practice and
service shall be excellent, world class and credible licensure
examinations through I. Inviolable, honest, effective and creditable
licensure examinations II. Regulatory measures, programs, and
activities that foster their professional growth and development.
a. Nether I or II
b. I only
c. I and II
d. II only

2. Which of the following is not represented in the Auditing and

Assurance Standards Council?
a. FINEX
b. Board of Accountancy
c. Bangko Sentral ng Pilipinas
d. Securities and Exchange Commission

3. Which statement is incorrect regarding AASC?

a. The AASC shall be composed of 14 members plus a chairman
b. The chairman should have been or presently a senior
practitioner in public accountancy
c. The chairman and members of the AASC shall have be
appointed by PRC upon the recommendation of BOA
d. The chairman and members of the AASC shall have a non-
renewable term of 3 years

4. The standards of the Auditing and Assurance Standards Council include

Philippine standards on: I. Quality control II. Auditing III. Review
Engagements IV. Assurance Engagements.
a. I, II, IV only;
b. I, II, III, IV;
c. I, II, III only;
d. I, III, IV only.

5. Within (I) days after the effectivity of RA 9298, the Board subject to
the approval of PRC and in coordination with APO, shall adopt and
promulgate such rules and regulations to carry out the provisions of
RA 9298 and which shall take effect (II) days following its publication
in the Official Gazette or in any major daily newspapers of general
 circulation?
I II
a. 90 15
b. 60 15
c. 90 30
d. 30 45

6. Which statement is incorrect regarding the pronouncements of AASC?

a. The PSAs may also have application, as appropriate, to other
related activities of auditors
b. PAPSs have the same authority as the PSAs
c. PSAs need only be applied to material matters
d. PSAs contain basic principles and essential procedures
(identified in bold type black lettering) together with related
guidance in the form of explanatory and other material.

7. The term of office of each members of AASC is

a. 2 years, renewable
b. 4 years, non renewable
c. 3 years, non renewable
d. 3 years, renewable

8. The term of office of each members of AASC is

a. 3 years, renewable
b. 3 years, non-renewable
c. 2 years, renewable
d. 4 years, non-renewable
9. Republic Act 9298 is known as the
A. Revised Accountancy Law.
B. Code of Ethics for Professional Accountants.
C. Philippine Accountancy Act of 2004.
D. Philippine Accountancy Law of 2004.
19. Which of the following is not an objective of the Philippine Accountancy
Act of 2004?
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. The development and improvement of accounting standards that
will be generally accepted in the Philippines.
20. The practice of accountancy includes
A. Practice of Public Accountancy.
B. Practice in Commerce and Industry.
C. Practice in Education/Academe.
D. All of the above.
21. 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 aspect of finance, business law, taxation, and other
technically related subjects.
D. Holds, or is appointed to, 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.
22. Section 4 of the Rules and Regulations Implementing RA 9298 (IRR)
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 position exists has a paid-up

capital of at least P5,000,000 and/or annual revenue of at least
P10,000,000.
B. The business or company where such position exists has a paid-up
capital of at least P10,000,000 and/or annual revenue of at least
P5,000,000.
C. The section, applies to all incumbents to the position.
D. The section applies only to persons to be employed after the
effectivity of the Code of Ethics for Professional Accountants in the
Philippines.

23. The members of the Professional Regulatory Board of Accountancy shall

be appointed by the
A. Philippine Institute of CPAs (PICPA)
B. Professional Regulation Commission (PRC).
C. President of the Philippines.
D. Association of CPAs in Public Practice (ACPAPP).
24. 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 APO shall submit its nominations to the PRC not later than thirty
(30) days prior to the expiry of the term of an incumbent chairman or
member.
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 should be adequate documentation to show the qualifications
 and primary field of professional activity of each nominee.
25. Which of the following is not a qualification of a member of the Board of
Accountancy?
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 CFA 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,
26. The following statements relate to the term of office of the chairman and
members of the Board of Accountancy (BOA). Which is false?
A. The chairman and members of the BOA 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.
C. No person who has served two successive complete terms as
chairman or member shall be eligible for reappointment until the
lapse of two (2) years.
D. Appointment to fill up an unexpired term is not to be considered as a
complete term.
27. The Board of Accountancy has the power to conduct an oversight into the
quality of audits of financial statements through a review of the quality
control measures instituted by auditors in order to ensure compliance
with the accounting and auditing standards and practices. This power of
the BOA is called
A. Quality review
A. Peer review
B. Appraisal
C. Quality control
28. Which of the following is a function of the Board of Accountancy?
A. To prescribe and adopt the rules and regulations necessary for
carrying out the provisions of the Philippine Accountancy Act of
2004.
B. To supervise the regulation, licensure, and practice of accountancy in
the Philippines.
C. To issue, suspend, revoke, or reinstate the certificate of registration
for the practice of the accountancy profession.
D. All of the above.