1.

Which of the following statements concerning a CPA’s disclosure of confidential client information is
ordinarily correct? Disclosure may be made to any party on consent of the client.

2. It is an organization engaged in the practice of public accountancy, consisting of a sole proprietor , either
alone or with one or more staff member(s): Firm

3. The integrated national professional organization of Certified Public Accountants accredited by the Board
and the Commission per PRC Accreditation No. 15 dated October 2, 1975. PICPA
4. Which of the following statements concerning the practice of accountancy in commerce and industry is
incorrect? A CPA is in the practice of accountancy in commerce and industry when he/she renders
professional services as a Certified Public Accountant to more than one client on a fee basis.
5. A person who holds a valid Certificate of Registration and a valid Professional Identification Card issued
by the Commission upon recommendation by the Board to those who have satisfactorily complied with all
the legal and procedural requirements for such issuance, including in appropriate cases, having passed the
CPA licensure examination CPA
6. This is the area of practice of accountancy namely public accountancy, commerce and industry,
academe/education and government. Sector
7. 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
Quality assurance review
8. The following statements relate to CPE credit units. Which is incorrect? Excess credit units earned may
be carried over to the next three-year period including credit units earned for doctoral and master’s
degrees.
9. Which statement is correct regarding the term of office of the chairman and the members of the Board of
Accountancy (BOA)? No person who has served two (2) successive complete terms shall be eligible for
reappointment until the lapse of 1 year
10. The Professional Regulatory Board of Accountancy shall be composed of a chairman and six (6) members
to be appointed by the <LIST A> from a list of three (3) recommendees for each position and ranked by
the <LIST B>, from a list of five (5) nominees for each position submitted by <LIST C>. (LIST
A)President of the Philippines; (LIST B)Commission; (LISTC)PICPA
11. Which of the following statements about the composition of the Board of Accountancy is incorrect? The
Board shall elect a chairman from among its members to serve for a term of one year.
12. Which statement is incorrect regarding the term of office of the chairman and the members of the Board of
Accountancy (BOA)? A member of BOA may continuously serve office for more than nine years.
13. Which of the following is not one of the basic duties and responsibilities of the BOA? To designate the
dates, places and venues of the CPA licensure examinations

14. The following statements relate to some of the provisions of RA 9298. Which is correct? It shall be the
primary duty of the PRC and the BOA to effectively enforce the provisions of RA 9298.
15. 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. 10
16. The following statements relate to the submission of nominations to the Board of Accountancy. Which is
correct? 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.
17. 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 fine of not less than P50,000 or by imprisonment for a period not
exceeding two years or both.

18. Which of the following statements is/are correct? Both statements are correct
Statement 1: It shall be the primary duty of the Commission and the Board to effectively enforce
the provisions of RA 9298 and its Implementing Rules and Regulations.
Statement 2: Any person may bring before the Commission, Board, or the aforementioned officers
of the law, cases of illegal practice or violations of RA 9298 and its Implementing Rules and
Regulations.
19. 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 fine of not more than P50,000
20. According to the Philippine Accountancy Act of 2004 (RA 9298), any person who shall violate RA 9298 or
any of its implementing rules and regulations as promulgated by the Professional Regulatory Board of
Accountancy subject to the approval of the PRC, shall upon conviction, be punished by: Not less than fifty
thousand (P50,000), or by imprisonment for a period not exceeding two (2) years, or both

21. Offer of gifts or undue hospitality from a client may create threats to objectivity. In evaluating the
significance of threat created by such offer, the professional accountant should consider the: (1)YES;
(2)YES; (3)YES

(1)Nature of the offer

(2)Value of the offer

(3)Intent behind the offer

22. When a professional accountant is entrusted with the custody of money or other assets belonging to others, the
professional accountant should not use such assets for purposes other than those for which they are intended

23. Which statement is incorrect regarding clients’ monies? Fees due from a client may be drawn from clients’
monies without the need of notifying the client.

24. When a professional accountant learns of a material error or omission in a tax return of a prior year, or of the
failure to file a required tax return, the professional accountant has a responsibility to do the following, except
Immediately inform the revenue authorities.

25. Which of the following is incorrect regarding the professional accountants’ tax practice? A professional
accountant may hold out to a client or an employer the assurance that the tax return prepared and the tax
advice offered are beyond challenge.

26. A professional accountant may be associated with a tax return that Uses of estimates if such use is generally
acceptable or if it is impractical under the circumstances to obtain exact data.

27. A number of factors influence the sample size for a substantive test of details of an account balance. All other
factors being equal, which of the following would lead to a larger sample size? Smaller measure of tolerable
misstatement
28. The entire set of data about which the auditor wishes to draw conclusions is called Population.

29. How would increases in tolerable misstatement and assessed level of control risk affect the sample size in a
substantive test of details?

30. Which of the following combinations results in a decrease in sample size in a sample for attributes?

31. According to PSA 220, who should take responsibility for the overall quality on each audit
engagement? engagement partner assigned to the engagement
32. Acceptance and continuance of client relationships and specific audit engagements include
considering all of the following, except: Whether the internal control of the client is adequate enough
to detect and prevent material misstatements in the financial statements.
33. It is the process designed to provide an objective evaluation, before the auditor’s report is issued, of
the significant judgments the engagement team made and the conclusions they reached in formulating the
auditor’s report: Engagement quality control review
34. An audit involves ascertaining the degree of correspondence between assertions and established
criteria. In the case of financial statement audit, which of the following is not a valid criterion? Philippine
Standards on Auditing.

35. According to Philippine Standard on Auditing, the procedures employed in doing compilation are: Not designed
to enable the accountant to express any form of assurance

36. The auditor’s judgment concerning the overall fairness of presentation of financial position, results of
operations, and changes in cash flow is applied within the framework of: generally accepted accounting
principles.
37. The objective of the consistency standard is to provide assurance that The comparability of financial
statements between periods in not materially affected by changes in accounting principles without
disclosure
38. The auditor’s judgment concerning the overall fairness of presentation of financial position, results of
operations, and changes in cash flow is applied within the framework of: generally accepted accounting
principles.
39. The objective of the consistency standard is to provide assurance that The comparability of financial
statements between periods in not materially affected by changes in accounting principles without
disclosure
40. Which one of the following is not one of the three General Standards? Proper planning and
supervision.
41. The General Standards stress the importance of: personal qualities the auditor should possess.
42. The generally accepted auditing standard that requires “Adequate technical training and proficiency”
is normally interpreted as requiring the auditor to have: formal education in auditing and accounting.

43. Which one of the following is not a Field Work Standard? Due professional care.
44. Which of the following statements most accurately captures the intent of the standards of field work?
Field work standards are primarily directed at the auditor’s planning, understanding of internal
control, and evidence accumulation.