No. 125 Brgy.

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

AT.06.03 – 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.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

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
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%.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

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

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.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

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 FRSC 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 FRSC 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
FRSC?
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 FRSC, but not in
AASC?
a. VI only
b. V only
c. V and VI

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JABELLAR/AIBAY/AJABINAL/RBERCASIO/JMAGLINAO/ASARMIENTO
 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. Statement 1: PRBOA Resolution 2020-22 removes the representative for

Government sector in the AASC composition.
Statement 2: PRBOA Resolution 2020-22 includes a representative from the
Insurance Commission, as well as two (2) representatives from small and
medium-sized practitioners into the AASC composition.
a. True, True
b. True, False
c. False, True
d. False, False

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.

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 No. 125 Brgy. San Sebastian
Lipa City, Batangas, Philippines
Mobile : 0927 283 8234
Telephone : (043) 723 8412
Gmail : icarecpareview@gmail.com

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.
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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