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Aud Theo Quizzer 1
Aud Theo Quizzer 1
17. Which of the following shall be issued to examinees who pass the
CPA Licensure Examination?
a. Certificate of registration and death certificate.
b. Professional Identification card and warrant of arrest.
c. Certificate of registration and professional identification card.
d. Warrant of arrest and death certificate.
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d. A CPA shall practice only under an individual, firm, or partnership
name in accordance with Philippine laws and shall not include
fictitious name but may indicate specialization.
24. Which of the following statements best explains why the CPA
profession has found it essential to establish ethical standards and
means for ensuring their observance?
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a. Vigorous enforcement of an established code of ethics is the best
way to prevent unscrupulous acts.
b. Ethical standards that emphasize excellence in performance over
material rewards establish a reputation for competence and
character.
c. A distinguishing mark of a profession is its acceptance of
responsibility to the public.
d. A requirement for a profession is to establish ethical standards
that stress primarily a responsibility to clients and colleagues.
25. According to Section 240 of the Code of Ethics, fees charged for
assurance engagements should be a fair reflection of the value of the
work involved. In determining professional fees, the following should
be taken into account, except
a. The time necessarily occupied by each person engaged on the work.
b. The outcome or result of a transaction or the result of the work
performed.
c. The skill and knowledge required for the type of work involved.
d. The level of training and experience of the persons necessarily
engaged on the work.
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a. Where possible, structuring the responsibilities of the assurance
team so that the professional does not deal with matters that are
within the responsibility of the immediate family member.
b. Withdrawing from the assurance engagement.
c. Removing the individual from the assurance team.\
d. Discussing the issue with those charged with governance, such as
the audit committee.
33. Who should take responsibility for the overall quality on each
audit engagement?
a. Engagement Quality Control Review
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b. Engagement Partner
c. Engagement Team
d. CPA Firm
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b. Projecting an error rate by comparing the results of a statistical
sample with the actual population characteristics.
c. Computing accounts receivable turnover by dividing credit sales by
the average net receivables.
d. Developing the expected sales based on the sales trend of the prior
5 years.
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c. Selection of tests to meet audit objectives should depend upon the
understanding of internal control.
d. The auditor should resolve any substantial doubt about any of
management’s material financial statement assertions.
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b. A statement that the financial statements and the accuracy and
completeness of information used to compile them are management’s
responsibility.
c. A statement that a compilation engagement is an assurance
engagement.
d. A statement that the accountant does not express an audit opinion
or a review conclusion.
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c. Is necessary in the evaluation of management’s judgments in
applying the entity’s applicable financial reporting framework.
d. Is not used in making decisions about materiality and audit risk.
61. According to Section 7 of the IRR, no person who has served two
successive complete terms as chairman or member of the Board of
Accountancy shall be eligible for reappointment as chairman or member
until the lapse of
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a. 1 year
b. 2 years
c. 3 years
d. 4 years
63. This standard setting body shall have a chairman who had been or
presently a senior accounting practitioner in public accountancy
a. AASC
b. FRSC
c. ACPAE
d. BOA
65. Who has the power to suspend/remove the Vice Chairman of the BOA.
a. Chairman of BOA
b. Chairman of FRSC
c. Chairman of PRC
d. President of the Philippines
66. The Board of Accountancy shall submit to the PRC the ratings
obtained by each candidate within how many calendar days after
examination?
a. 2
b. 6
c. 8
d. 10
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68. All registered CPAs shall obtain and use a seal which shall be
circular in form with a smaller circle within bearing the registrant’s
name, registration number and title. Which of the following is
correct?
a. Engraved in the lower portion of the space between the circles is
the CPA’s name.
b. Engraved in the middle of the smaller circle are the letters CPA
c. Engraved in the middle of the smaller circle are the CPA’s name and
registration number.
d. Engraved in the middle of the smaller circle is the CPA’s name.
70. Listed below are names of four 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 is
a violation of the IRR of RA 9298?
a. Pin, Pon and Pan, CPAs (Pin died about five years ago; Pon and
Pan are continuing the firm)
b. Goe and Gae, CPAs (The name of Gie, a third partner, is omitted
from the partnership name.)
c. Jay and Joy, CPAs (Jay died about three years ago; Joy is
continuing the firm as a sole proprietor.)
d. Lab and Co., CPAs (The firm has ten other partners who are all
CPAs)
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