1.The following statements rebate to RA 9298. Which statement is true?

a.After two years, subject to certain conditions, the BOA may order the reinstatement of a CPA whose
certificate of registration has been revoked

b. The professional regulation commission(PRC) has the authority to removed any member of the Board
of Accountancy (BOA) for negligence, incompetence, or other just cause

c. A person shall be considered to be in professional practice of accounting if, as an officer in a private

enterprise, he makes decisions requiring professional accounting knowledge even if his position does
not require that the holder should be CPA

d. Insanity is not a ground for proceeding against a CPA

2. In which of the following circumstances would be a CPA be bound by ethics to refrain from disclosing
any confidential information obtained during the course of a professional engagement?

a. The CPA is issued a summoned enforceable by a court order which order the CPA to present
confidential information

b. A major stockholder of a client company seeks accounting information from a CPA after management
declined to disclose the request information

c. An inquiry by a disciplinary body of government regulators

d. Confidential client information is made available as part of a quality review of the CPA’s practice by a
peer review team authorized by the PICPA

3. Which of the following is not prohibited by the Code of Ethics for Professional Accountants I the
Philippines?

a. Offering employment to a staff member of another CPA without first informing the CPA

b. Advertising and solicitation of clients

c. Payment of commission to obtain a client

d. Receiving a contingent fee on a tax case before the Bureau of Internal Revenue (BIR)

4. The CPA profession deemed it necessary to establish a Code of Ethics and a mechanism to its
enforcement because:

a. The establishment of flexible ethical standards provides protection for CPAs

b. An ethical code that stresses the CPAS’s responsibility to clients and colleague is a prerequisite to
success

c. A requirement of law provides that a CPAs establish a code of ethics

d. Acceptance or responsibility to the public is distinguishing mark of profession

5. Professional experience is an important aspect of the training and proficiency of the junior assistant
just entering upon an auditing career. Professional experience should be obtained:
a. By completing a number of continuing education course each year

b. Through a thorough study of the Philippine Standards on Auditing

c. With supervision and review of work by more experienced supervisor

d. By taking appropriate professional certification exams

6. Independence of an auditor in relation to the enterprises may be impaired in the following cases,
except:

a. connection with the enterprise as a promoter, underwriter, voting, trustee, director, officer or
employee

b. having a loan to or from the enterprise or any officer, director or principal stockholder therefore, with
certain exceptions.

c. Engaged to render management advisory services to enterprise

d. direct or material indirect financial interest in the enterprise

7. To exercise due professional care an auditor should

a. critically review the judgement, exercised by those assisting the audit

b. Examine all available corroborating evidence supporting management’s assertion

c. Attain the proper balance of professional expertise and formal education

d. design the audit to detect all instances of illegal acts.

8. The threat that a professional accountant will advance a client’s position to the point of compromising
his/her objectivity is known as:

a. Familiarity Test

b. Self-interest Threat

c. Self-review threat

d. Advocacy Threat

9. Which of the following is permissible under the code of Ethics?

a. Using engagement related information in a decision to buy an ownership interest in the client’s
organization

b. Not reporting significant observations about illegal activity to the client’s management

c. Disclosing confidential, engagement related information that is potentially damaging to the client’s
organization in response to a court order

d. Accepting an unexpected gift from an employee whom the auditor has praised in a recent
engagement communication.
10. Which of the following statements best describes why the profession of certified public accountants
deemed it essential to promulgate a code of professional conduct and to establish a mechanics, for
enforcing observation of the code?

a. A prerequisite to success is the establishment of an ethical code that primarily defines the
professional responsibility to clients and colleagues

b. A distinguishing mark of a profession is its acceptance of responsibility to the public

c. An essential means of self-protection for the profession is the establishment of flexible ethical
standards by the profession

d. A requirement of most state laws for the profession to establish a code of ethics.

11. Which of the following acts by a CPA would most likely to be a violation of the Code of Ethics?

a. Acting as auditor of non-profit charitable organization with audit client serving as president.

b. Assisting client in preparing a financial forecast

c. Having an immaterial load to the president of an audit client

d. Accepting a fee in tax matters that is contingent upon the result of an administrative proceeding.

12. To raise the standards of the profession, the RA 9298 requires that the CPA profession be integrated
under the rules to be established by:

a. the BOA

b. The PICPA

c. The PRC

d. The ACPAPP

13. The code professional Ethics states in part, that a CPA should maintain a high degree of integrity and
objectivity in all his actuations. Objectivity in said code refers to a CPA’s ability:

a. to maintain an impartial attitude on all matters which come under the CPA’s review

b. To independent distinguish between accounting practices that are acceptable and those that are not

c. To be unyielding in all matters dealing with auditing procedures

d. to independently choose between alternate accounting principles and auditing standards

14. A CPA in public accounting is prohibited from performing which of the following actions?

a. Allow his wife to acquire shared in a corporation’s capital stock which is not an internal audit

b. Be a party to a stratagem which permits a non-CPA to practice accountancy’s

c. Permit the publication of his being the author of a book

d. Act as a stock and transfer agent of a non-audit client

15. All registered CPA shall obtain and use a seal which shall be circular in form with a small er within
bearing the registrant’s name, registration number and title. Which of the following is correct?

a. Engraved in the middle of the smaller circle is the CPA’s name

b. Engraved in the middle of the smaller circle are the CPA’s name and registration number

c. Engraved in the lower portion of the space between the circles is the CPA’s name

d. Engraved in the middles of the smaller circle are the letters “CPA”

16. The BOA shall elect a vice chairman from among its members for a term of

a. Three (3) years

b. One (1) year

c. Two (2) years

d. Five (5) years

17. According to IRR of PD 9298, the COMISSION upon the recommendation of the Board, shall create an
accounting standard setting body to be known as the

a. Accounting Standards Council

b. Accounting Standards Boards

c. Financial Reporting Standards Council

d. Financial Reporting Standard Board

18. Who has the power to suspend or remove any member of the Board of Accountancy?
a. The chairman of the PRC

b. The chairman of the FRSC

c. The President of the Philippines

d. The chairman of AASC

19. The certificate of registration issued to successful examinees

a. is renewable every three years

b. Is renewable every five years

c. Shall bear the signature of the PRS Chairperson and the PRC Commissioners

d. Shall remain in full force and effect until withdrawn, suspended or revoked in accordance with RA
9298

20. The professional Identification Card issued to successful examinees

a. is renewable every three years

b. is renewable every five years

c. Shall remain in full force and effect until withdrawn, suspended or revoked in accordance with PA
9298

d. Shall bear the signature of the PRC chairperson and the Chairman and Member of the Board of
Accountancy

21. The Board of accountancy may reinstate the validity of a revoked certificate of registration after the
expiration of how many years from the date of revocation?

a. 1

b. 3

c. 5

d. 2

22. Professional Accountant refers to an individual who holds a valid certificate of registration and
current Professional Identification Card Issued by the Board of Accountancy and the Professional
Regulation Commission if he/she is in

a. Public practice or public sector only

b. Public practice, industry and commerce, public sector or education

c. Public practice or industry and industry only

d. Public practice and education only

23. The commission on Audit conducts a comprehensive audit that includes

a. Financial, compliance, and performance audit

b. Financial and compliance audit

c. Financial and financial-related units

d. Compliance and performance audit

24. The Code of Ethics for Professional Accountants in the Philippines consists of three parts and that
Part A

a. Applies to professional accountants in public practice

b. Applies to professional accountants in business

c. Provides a conceptual framework for the application of Fundamental Principles and illustrate how the
framework is to be applied in specific situations.

d. Establish the fundamental principles for professional accountants