ASSIGNMENT FOR PHILIPPINE ACCOUNTANCY ACT OF

2004/IMPLEMENTING
RULES & REGULATIONS (IRR)

MULTIPLE CHOICE QUESTIONS. Write all your answers on a 1/2 crosswise yellow
paper. Use CAPITAL LETTERS only using ball pen. No erasures in any form. Two
points each. (55 items)

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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).

7. 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

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 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.
8. 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 mu st n ot be a di rector or officer of the APO at the time of his/her
appointment.
9. 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.
10. 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
B. Peer review
C. Appraisal
D. Quality control
11. 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.
12. The Board of Accountancy shall elect a vice-chairman from among its members for a term
of
A. Two (2) years
B. One (1) year
C. Three (3) years
D. Five (5) years
13. The PRC upon the recommendation of the Board of Accountancy (BOA) shall create
a council to assist the BOA in carrying out its powers and functions and in attaining
its objective of continuously upgrading the accountancy education in the Philippines to
make the Filipino CPA globally competitive. This council is to be known as the
A. CPAs in Education Council
B. Council of CPAs in Education
C. Education Technical Council
D. CPAs in the Academe Council
14. Which of the following is not a qualification of an applicant for the CPA licensure
examination?
A. He/she is a Filipino citizen.
B. He/she is of good moral character.
C. He/she is at least 21 years of age.
D. He/she is a holder of the degree of Bachelor of Science in Accountancy.
15. To pass the CPA licensure examination, a candidate must obtain a
A. General average of sixty-five percent (65%), with no grades lower than seventy-five
percent (75%) in any given subject.
B. General average of seventy-five percent (75%), with no grades lower than sixty-five
percent (65%) in any given subject.
C. General average of seventy-five percent (75%).
D. General average of sixty-five percent (65%).
16. A candidate who obtains the rating of seventy-five percent (75%) and above in at least a
majority of the subjects shall receive a conditional credit for the subjects passed. He/she

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 shall take an examination in the remaining subjects within
A. Two (2) years from the preceding examination.
B. Three (3) years from the preceding examination.
C. One (1) year from the preceding examination.
D. Five (5) years from the preceding examination.
17. The Board of Accountancy shall submit to the PRC the ratings obtained by each candidate
within _____ days after the examination, unless extended for just cause.
a. 10 c. 2
b. 5 d. 3
18. 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.
19. Which of the following statements concerning the issuance of Certificates of
Registration and Professional Identification Cards to successful examinees is correct?
A. The Certificate of Registration issued to successful examinees is renewable every three
(3) years.
B. The Professional Identification Card issued to successful examinees shall remain in full
force and effect until withdrawn, suspended or revoked in accordance with RA 9298.
C. The BOA shall not register and issue a Certificate of Registration and Professional
Identification Card to any successful examinee of unsound mind.
D. The BOA may, after the expiration of three (3) years from the date of revocation of
a Certificate of Registration, reinstate the validity of a revoked Certificate of
Registration.

20. The following statements relate to the practice of public accountancy. Which statement
is incorrect?
A. Single practitioners and partners of partnerships organized for the practice of public
accountancy shall be registered CPAs in the Philippines.
B. From the effectivity of RA 9298, 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 registrant
has acquired a minimum of two (2) years meaningful experience in any of the
areas of public practice including taxation.
C. A partnership engaged in the practice of public accountancy may be carried on in the
form of a general partnership (GP) or a limited liability partnership (LLP) organized
in accordance with Philippine laws.
D. The Securities and Exchange Commission shall not register any corporation organized
for the practice of public accountancy.
21. Which of the following statements concerning ownership of working papers is incorrect?
A. All working papers made by a CPA and his/her staff in the course of an examination
remain the property of such CPA in the absence of a written agreement between the
CPA and the client to the contrary.
B. Working papers include schedules and memoranda prepared and submitted by the
client of the CPA.
C. Working papers include reports submitted by a CPA to his/her client.
D. Working papers shall be treated confidential and privileged unless such documents are
required to be produced through subpoena issued by any court, tribunal,
or government regulatory or administrative body.
22. The following statements relate to the use of seal by registered CPAs. Which is incorrect?
A. A registered CPA shall obtain and use a seal of a design that will suit his/her taste.
B. The seal should be of a design prescribed by the Board bearing the CPA's name,
registration number, and title.
C. The auditor's reports shall be stamped with the CPA's seal, indicating therein his/her
current Professional Tax Receipt (PTR) number, date/place of payment when filed with
government authorities or when used professionally.
D. The seal of a CPA shall be circular in form.
23. A special/temporary permit may be issued by the Board of Accountancy (BOA) to
the following persons, except
A. A foreign CPA called for consultation or for a specific purpose which, in the judgment
of the BOA, is essential for the development of the country regardless of whether

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 there are Filipino CPAs who are qualified for such consultation or specific purposes.
B. A foreign CPA engaged as professor, lecturer or critic in fields essential to accountancy
education in the Philippines and his/her engagement is confined to teaching only.
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 the
advancement of accountancy in the Philippines.
D. A foreign CPA called for consultation or for a specific purpose which, in the judgment
of the BOA, is essential for the development of the country and that there is no Filipino
CPA qualified for such consultation or specific purposes.
24. Any person who shall violate any of the provisions of the Accountancy Act or any of its
implementing rules and regulations promulgated by the Board of Accountancy subject to
the approval of the PRC, shall, upon conviction, be punished by
A. A fine of not more than P50,000.
B. Imprisonment for a period not exceeding two years.
C. A fine of not less than P50,000 or by imprisonment for a period not exceeding two
years or both.
D. Lethal injection,
25. Which of the following is the accredited national professional organization of CPAs(APO)?
A. PICPA
B. ASC
C. AASB
D. FRSC
26. Which of the following statements concerning the use of firm or partnership name
is incorrect?
A. In the case of an individual CPA, he/she shall do business under his/her registered
name with the BOA and the PRC and as printed in his/her CPA certificate (for example,
Juan Puruntong, CPA).
B. In the case of a firm, it shall do business under its duly registered and authorized firm
name appearing in the registration documents issued by the Department of Trade and
Industry (DTI) and other government offices and such firm name shall include the
real name of the sole proprietor as printed in his/her CPA certificate (for example,
Arnulfo Gumamela and Associates).
C. In the case of a registered partnership, it shall do business under its name
as indicated in its current Articles of Partnership and Certificate of Registration issued
by the Securities and Exchange Commission (SEC) (for example, Tanya, Sam, and
Jervi, CPAs).
D. A CPA shall practice only under an individual, firm, or partnership name in accordance
with Philippine laws and shall not include any fictitious name but may
indicate specialization.
27. 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
28. The death or disability of an individual CPA and/or the dissolution and liquidation of a
firm or partnership of CPAs shall be reported to the BOA not later than _ days from
the date of such death, dissolution or liquidation.
A. 15
B. 30
C. 60
D. 90
29. As defined in Annex "C" of the IRR, this refers to the inculcation, assimilation
and acquisition of knowledge, skills, proficiency and ethical and moral values, after the
initial registration of a professional that raise and enhance the professional's technical
skills and competence.

A. Professional Development.
B. Continuing Professional Education.
C. Continuing Professional Development.
D. Professional Growth and Development.
30. The PRC CPE Council shall assist the BOA in implementing its CPE program. Which of the
following statements is incorrect concerning the Council's composition?

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 A. The PRC CPE Council shall be composed of a chairperson and two (2) members.
B. The chairperson shall be chosen from among the members of the BOA by the PRC.
C. The first member shall be the president or, in his/her absence or incapacity,
any officer chosen by the Board of Directors of PICPA.
D. The second member shall be the president or, in his/her absence or incapacity, any
officer of the organization of deans or department heads of schools, colleges
or universities offering the degree requiring licensure examination.
31. The following statements relate to CPE credit units. Which is incorrect?
A. The total CPE credit units for registered accounting professionals shall be sixty (60)
credit units for three (3) years, provided that a minimum of fifteen (15) credit
units shall be earned in each year.
B. Any excess credit units in one year may be carried over to the succeeding years within
the three-year period,
C. Excess credit units earned may be carried over to the next three-year period including
credit units earned for doctoral and master's degrees.
D. One credit hour of CPE program, activity or source shall be equivalent to one (1) credit
unit.
32. The following statements relate to the exemption from CPE requirements. Which is false?
A. A registered professional shall be permanently exempted from CPE requirements upon
reaching the age of 60 years old.
B. A registered professional shall be permanently exempted from CPE requirements upon
reaching the age of 65 years old.
C. A registered professional who is working or practicing his/her profession abroad shall
be temporarily exempted from comp lance with CPE requirements during the period
of his/her stay abroad provided that he/she has been out of the country for at least
two years immediately prior to the date of renewal.
D. A registered professional who is furthering his/her studies abroad shall be temporarily
exempted from compliance with CPE requirements during the period of his/her
stay abroad provided that he/she has been out of the country for at least two
years immediately prior to the date of renewal.
33. Which of the following statements concerning a CPA's disclosure of confidential
client information is ordinarily correct?
A. Disclosure may be made to any party on consent of the client.
B. Disclosure sh ould not be made even if such disclosu re will protect the
CPA's professional interests in legal proceedings.
C. Disclosure should be made only if there is a legal or professional duty to make the
disclosure.
D. Disclosure may be made to any government agency without subpoena.
34. 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 Implementing Rules and Regulations of RA 9298?
A. Tin, Ton and Tan, CPAs (Tin died about five years ago; Ton and Tan are continuing
the firm.)
B. Pol and Bon, CPAs (The name of Cua, a third partner, is omitted from the partnership
name.)
C. Joni and Jona, CPAs (Joni died about three years ago; Iona is continuing the firm as
a sole proprietor.)
D. Elias and Co., CPAs (The firm has ten other partners who are all CPAs).
35. The following statements relate to some of the provisions of RA 9298. Which is correct?
A. Audit working papers are generally the property of the company whose
financial statements were audited.
B. After three (3) years, subject to certain conditions, the Board of Accountancy
may order the reinstatement of a CPA whose certificate of registration has been
revoked.
C. The penal provision (Sec. 36) of RA 9298 applies only to the violation of any of the
provisions of RA 9298 because its Implementing Rules and Regulations are
unenforceable.
D. It shall be the primary duty of the PRC and the BOA to effectively enforce
the provisions of RA 9298.
36. Practice of Public Accountancy shall constitute in a person:
A. When he or she is involved in teaching of accounting, auditing, management advisory
services, accounting aspect of finance, business law, taxation and other technically
related subjects.

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 B. When involved in decision making requiring professional knowledge in the science of
accounting, as well as the accounting aspects of finance and taxation.
C. When he/she represents his/her employer before government agencies on tax and
other matters relating to accounting.
D. When a person is skilled in knowledge, science and practice of accounting and as a
qualified person to render professional services as a CPA
37. In pursuing a CPA firm’s quality objectives, a CPA firm should adopt policies and
procedures to enable it to identify and evaluate circumstances and relationships that
create threats to independence, and to take appropriate action to eliminate those threats
or reduce them to an acceptable level by applying safeguards, or, if considered
appropriate, to withdraw from the engagement. Which of the quality control elements
would this be most likely to satisfy?
A. Ethical requirements
B. Human resources
C. Leadership responsibilities for quality within the firm
D. Monitoring
38. 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 the registration of
AB and Co., CPAs was approved on August 30, 2021, it shall file for renewal on or before
A. August 30, 2023
B. September 30, 2023
C. December 31, 2023
D. December 31, 2024
39. A CPA shall not practice under a firm name that includes or indicates the following except;
A. Fictitious name
B. Misleading as to the type of the organization
C. Name(s) of past partner(s) in the firm name of successor partnership
D. Specialization
40. Individual CPAs, Firms or Partnerships of CPAs, including partners and staff members
thereof shall register with the BOA and the PRC. If Emong and Bobads, CPAs renewed its
accreditation on August 30, 2021, it shall file for renewal on or before
A. August 30, 2024
B. September 30, 2024
C. September 30, 2023
D. December 31, 2023
41. A and C, CPAS, organized a partnership for the practice of public accounting. Which of the
following is the best name of the firm?
A. A and C, CPAs
B. A and C, Members, PICPA
C. A and C, Auditors and Tax Consultants
D. A and C, Inc.
42. Under the IRR of RA 9298, if a partner in a two-member partnership dies, the surviving
partner may continue 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. Indefinitely.
C. For a period of time not to exceed two years.
D. Until the partnership payout to the deceased partner’s estate is terminated.
43. Rico Penamante, CPA has released a 1,200 page book on Auditing Problems. Technically,
his work falls under authorship” for the purpose of CPE credits. Credit earned by Mr.
Penamante must be claimed:
A. Within six months from the date of publication
B. Within one year from the date of publication
C. Within six days from the date of publication
D. Within three years from the date of publication
44. Which statement is incorrect regarding CPE requirements for renewal of professional
license?
A registered professional shall be permanently exempted from CPE requirements upon
reaching the age of 65 years old.
B. Those who failed to renew professional licenses for a period of five (5) continuous years
from the initial registration, or of from the last renewal shall be declared delinquent.
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.

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 D. The total CPE credit unit required for CPAs shall be sixty (60) units for (3) years,
provided that a minimum of fifteen (15) units shall be earned in each year.
45. Inventions (of national significance) made by a CPA will earn him/her
A. 20- 40 CU
B. 10- 30 CU
C. 10 CU
D. 10- 20 CU
46. A CPA who authored a 110-page book in Auditing Theory will earn him/her
A. 40 CU
B. 20 CU
C. 10 CU
D. 30 CU
47. Under the provision of the RA 9298, a partner surviving the death or withdrawal of all
partners may continue to practice under the partnership name
A. For one year after becoming a sole practitioner
B. For two years after becoming a sole practitioner
C. For five years after becoming a sole practitioner
D. For three years after becoming a sole practitioner
48. How many credit units per hour is (are) earned by a CPA who serves as a resource speaker
at a CPE seminar?
A. 2 CU per hour
B. 3 CU per hour
C. 5 CU per hour
D. 1 CU per hour
49. How many credit units per year are earned by a CPA who serves as a chairperson of the
BSA program?
A. 20 CU
B. 5 CU
C. 10 CU
D. 30 CU
50. The Continuing Professional Education (CPE) program mentioned in the IRR shall have
the following objectives, except:
A. To attain and maintain the highest standards and quality in the practice of the
profession.
B. To raise and maintain the professional capability for delivering professional services.
C. To promote the general welfare of the public.
D. To provide and ensure the continuous education of the accountancy students with the
latest trends in the profession bought about by modernization and scientific and
technological advancement.
51. S1: A meaningful experience shall be considered as satisfactory compliance with the
requirements of Section 28 if it is earned in academe/education and shall include teaching
for at least three (3) trimesters or two (2) semesters subject in either financial
accounting, business law and tax, auditing problems, auditing theory, financial
management and management services. Provided the accumulated teaching experience
on these subjects shall not be less than three (3) school years.
S2: A meaningful experience shall be considered as satisfactory compliance with the
requirements of Section 28 if it is earned in Public Practice and shall include at least one
year as audit assistant and at least two years as auditor in charge of the audit
engagement covering full audit functions of significant clients.
A. True, True
B. False, False
C. True, False
D. False, False
52. When a CPA represents his/her employer before government agencies on tax matters
related to accounting, the CPA is engaged in what sector?
A. Practice in government
B. Practice in commerce and industry
C. Practice in public accountancy
D. Practice in academe
53. Who is not permitted by law to practice accountancy?
A. A partnership of CPAs, with some non- CPA staff
B. A partnership of CPAs
C. A solo practitioner
D. A corporation whose stockholders are all CPAs

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54. A CPA must earn at least 60 credit units for 3 years, with a minimum of 15 credit units
earned per year. Excess credit units shall not be carried over to the next three- year period
except:
A. Credit units earned for doctoral or masteral degrees.
B. Credit units earned for authoring an article of national significance.
C. Credit units earned for servicing as a professorial chair.
D. Credit units earned for an invention of significance of the profession.
55. Which statement is correct regarding the pronouncements of AASC?
a. PSAs issued by AASC are not the only authoritative source of auditing standards
members of the accountancy profession in the Philippines
b. PAPS will have the same authority as the PSAs
c. The exposure period allowed for each draft of PSA and PAPS to be considered by the
organizations and persons to whom it is sent for comment is generally 60 days.
d. Each final standard, interpretation and statement shall be submitted to the PRC
through the BOA for approval after which the pronouncements become operative 6
months from the publication in the official gazette.

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