1.

This refers to a study, appraisal or review by an independent QAR Office (QARO) of the quality
of audit of financial statements and the adoption of best practices through a review of the
quality control measures instituted by CPA Practitioners to ascertain compliance with prescribed
professional, ethical and technical standards of public practice.
a. Quality Assurance Review (QAR)
b. Continuing Professional Development (CPD)
c. Quality Inspection Review (QIR)
d. Quality Inspection Monitoring (QIM)

Enforcing the Registration and Accreditation Requirement for All Partners and CPA Staff Members of
Firms in Public Practice (PRBOA Res. No. 295-2015)

2. The following statements relate to PRBOA Resolution No. 295-2015. Which is incorrect?
a. All partners and CPA staff members of firms in public practice must be registered and
accredited with PRBOA.
b. All staff members of firms, including non-CPA, engaged in public practice must be
registered and accredited with PRBOA.
c. Registration and accreditation must be renewed every three (3) years.
d. Failure to comply with the registration and accreditation requirements results in
automatic revocation of accreditation granted by PRBOA and PRC.

ASEAN Mutual Recognition Arrangement (MRA)

3. Which of the following is not one of the objectives of ASEAN Mutual Recognition Arrangement
(MRA) for Accountancy Services that will provide guidelines on how to become ASEAN
Chartered Professional Accountants (ACPAs)?
a. To facilitate mobility of accountants within ASEAN and enhance exchange of information
or networking
b. To promotes adoption of best practices on standards and qualifications
c. To provide opportunities for capacity building and training
d. None of the above

Bangko Sental ng Pilipinas (BSP)

4. The primary objective of this government agency is to maintain price stability conducive to a
balanced and sustainable economic growth. It also aims to promote and preserve monetary
stability and the convertability of the peso.
a. Securities and Exchange Commission (SEC)
b. Bureau of Internal Revenue (BIR)
c. Insurance Commission
d. Bangko Sentral ng Pilipinas

5. Which of the following is not a function of the Bangko Sentral ng Pilipinas (BSP)?
a. Recommend measures to improve the efficiency and the effectiveness of government
operations.
b. Supervise banks and exercise regulatory powers over non-bank institutions performing
quasi-bank functions.
c. Determine the exchange rate policy of the Philippines.
d. Extend discounts, loans, and receivables to banking institutions for liquidity purposes.

6. The powers and functions of the BSP shall be exercised by the

a. BSP Governor c. Board of Regents
b. Board of Directors d. Monetary Board

7. The BSP Monetary Board is composed of seven (7) members appointed by the President of
the Philippines for a term of
a. 3 years c. 5 years
b. 4 years d. 6 years

8. The seven (7) members of the Monetary Board of BSP does not include
a. The BSP Governor
b. A member of the cabinet to be designated by the President of the Philippines
c. The Bureau of Internal Revenue (BIR)
Commissioner
d. Five (5) members from the private sector
9. In its Circular No. 660, Series of 2009, the BSP requires that only external auditors accredited
by the BSP shall be engaged by banks for regular audit or special engagements. Which of the
following is not an accreditation requirement for external auditors?
a. No external auditor may be engaged by a bank if he/she had or was committed to acquire
any direct or material indirect financial interest in the bank, or if his/her independence is
considered impaired under the circumstances specified in the Code of Professional Ethics for
 CPAs.
b. The external auditor and the members of the audit team do not have/shall not have
outstanding loans or any credit accommodations (including credit card obligations) with any
bank to be audited/being audited at the time of signing the engagement and during the
engagement.
c. The external auditor should a have at least five (5) years track record in conducting external
audit.
d. The external auditor and members of the audit team adhere to the highest standards of
professional conduct, including integrity and objectivity.

10. Which of the following cases that may be discovered by a BSP accredited external auditor during
his/her audit fieldwork must be reported to the BSP, except?
a. Any material finding discovered during the period of audit involving fraud or dishonesty
(except cases that were resolved during the audit period).
b. Any material finding discovered during the period of audit involving fraud or dishonesty,
including cases that were resolved during the audit period.
c. Adjustments or potential losses, the aggregate of which amounts to at least 1% of the
capital funds of the bank.
d. Any finding to the effect that the total bank assets, on a going concern basis, are no longer
adequate to cover the total claims of creditors.