POYTECHNIC UNIVERSITY OF THE PHILIPPINES - TAGUIG CAMPUS

1) The Code of Ethics for Professional Accountants in the Philippines is based on the International Code of Ethics for Professional
Accountants developed by
a) International Auditing and Assurance Standard Board (IAASB)
b) International Federation of Accountants (IFAC)
c) International Accounting Standards Board (IASB)
d) AICPA Auditing Standards Board (ASB)
2) The Code of Ethics is mandatory for all CPAs ("professional accountants" as used in the Code) and is applicable to professional services
performed in the Philippines on or after
a) January 1, 2004
c) July 1 , 2005
b) December 31, 2005
d) January 1, 2005
3) Which of the following statements best explains why the accountancy profession has found it essential to promulgate ethical standards
and to establish means for ensuring their observance?
a) A professional accountant's primary responsibility is to satisfy the needs of an individual client or employer
b) A distinguishing mark of a profession is acceptance of its responsibility to the public
c) Strict implementation and enforcement of ethical requirements is the best way to prevent unscrupulous acts
d) Ethical standards that emphasize excellence in performance over material rewards establish a reputation for competence and character
4) The Code recognizes that the objectives of the accountancy profession are to work to the highest standards of professionalism, to attain
the highest levels of performance, and generally to meet the public interest requirements. These objectives require four basic needs to be
met -- namely, credibility, professionalism, quality of services, and
a) Integrity
b) Objectivity

c) Professional competence and due care

d) Confidence

5) In order to achieve the objectives of the accountancy profession, professional accountants have to observe a number or prerequisites or
fundamental principles. Which of the following fundamental principles requires professional accountant to be straightforward and honest
in rendering professional services?
a) Confidentiality
b) Objectivity

c) Integrity
d) Professional competence and due care

6) Which part of the Code applies to employed professional accountants - that is, those employed in industry, commerce, the public sector
or education?
a) Part A
c) Part C
b) Part B
d) Part D
7) The following statements relate to the professional accountant's obligation to respect the confidentiality of information about a client's or
an employer's affair acquired in the course of professional services. Which is false?
a) The duty of confidentiality continues even after the end of the relationship between the professional accountant and the client or
employer.
b) Confidentiality should always be observed by a professional accountant unless specific authority has been given to disclose
information or there is legal or professional duty to disclose
c) When authorization to disclose confidential information is given by the client or the employer, third parties' interest that might be
affected need not be considered.
d) A professional accountant may disclose confidential information to protect his/her professional interest in legal proceedings
8) A professional accountant who undertakes or assist in the preparation of a tax return has the responsibility to
a) Advise the client or the employer that the responsibility for the context of the return rests primarily with the client or employer
b) Verify the data to be used in preparing the return
c) Take a position of independent neutrality
d) Hold out to a client or an employer the assurance that the tax return is beyond challenge

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9) According to Subsection 5.8 (Tax Practice) of the Code, when professional accountant learns of a material error or omission in a tax
return of a prior year (with which the professional accountant may or may not have been associated), or of the failure to file a required tax
return, the professional accountant has a responsibility to
a) Inform the Bureau of Internal Revenue
b) Correct the error
c) Advise the client or employer of the error or omission
d) end the professional relationships with the client or employer
10) Which of the following provisions should be applied when professional accountant perform services in a country other than the home
country and differences on specific matters exist between ethical requirements of the two countries?
a) When the ethical requirements of the country in which the services are being performed are less strict than the Code of Ethics for
Professional Accountants in the Philippines, then the Code of Professional ethics of the Philippines are to be applied.
b) When the ethical requirements of the country in which the services are being performed are stricter the Code of Ethics for
Professional Accountants in the Philippines, then the ethical requirements if the country where services are being performed are to
c) When the ethical requirements of the home country in which the services are mandatory for services performed outside the country
and are stricter than that set out in A and B above, then the ethical requirements of the home country should be applied.
d) All of the above provisions should be applied
11) Subsection 8.1 (Independence) of the code states, it is in the public interest and, therefore, required by the code, that members of
assurance teams, firms and, when applicable, network firms be independent of assurance clients. Independence in the Code requires
a) Independence of mind only
b) Independence in appearance only
c) Either independence of mind or independence in appearance
d) Both independence of mind or independence in appearance
12) According to the Code, the state of mind that permits the provision of an opinion without being affected by influences that compromise
professional judgment, allowing an individual to act with integrity, and existence objectivity and professional skepticism is
a) Independence of mind
c) Integrity
b) Independence in appearance
d) Objectivity
13) ____________ is the avoidance of facts and circumstances that are so significant that a reasonable and informed third party, having
knowledge of all relevant information, including safeguards applied, would reasonably conclude a firm, or a member of the assurance
team's integrity, objectivity or professional skepticism had been compromised.
a) Independence of mind
c) Independence in appearance
Independence
in
fact
b)
d) exercise of due care and diligence
14) To ensure that independence of mind and independence in appearance are not compromised, members of the assurance teams, firms,
and net work firms should
I. Identify threats to independence evaluate the significance of identified threats to independence evaluate the significance of
identified threats to independence
II. Evaluate the significance of identified threats to independence
III. If the threats are other than clearly insignificant, identify and apply safeguards to eliminate the threats or reduce them to an
acceptable level.
a) I only
b) I and II only

c) I and III only

d) I. II and III

15) Which of the following independence requirements for assurance engagements is incorrect?
a) For an audit engagement, the members of the assurance team, the firm, and network firms are required to be independent of the client
b) For a non-audit assurance engagement, when the report is not expressly restricted for use by identified users, the members of the
assurance team, the firm, and network firms are required to be independent of the client
c) For a non-audit assurance engagement, when the report is not expressly restricted for use by identified users, the members of the
assurance team and the firm are required to be independent of the client
d) For a non-audit assurance engagement, when the report is expressly restricted for use by identified users, the members of the
assurance team are required to be independent of the client and the firm should not have a material direct or indirect financial
interest in the client.

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16) An interest in an equity or other security, debenture, loan or other debt instrument of an entity, including rights and obligations to acquire
such an interest and derivatives directly related to such interest is a/an
a) Financial interest
c) Indirect financial interest
b) Direct financial interest
d) Conflict of interest
17) A direct financial interest is a financial interest
a) Owned directly by and under the control of an individual or entity
b) Beneficially owned through a collective investment vehicle, estate, trust or other intermediary over which the individual or entity has
no control
c) Either A and B
d) Neither A and B
18) This threat to independence occurs when a firm or a member of the assurance team could benefit from a financial interest in an
assurance client.
a) Intimidation threat
c) Self-review threat
b) Self-interest threat
d) Advocacy threat
19) Which of the following circumstance may create a self-interest threat?
a) A member of the assurance team being, or having recently been, a director or officer of the assurance client
b) A direct financial interest or material indirect financial interest in an assurance client
c) Dealing in, or being a promoter of, or other securities in an assurance client
d) A member of those assurance team having an immediate family member or close family member who is a director or officer of the
assurance client
20) The following are examples of circumstances that may create a self-review threat, except
a) A member of the assurance team being, or having recently been, an employee of the assurance client in a position to exert direct
and significant influence over the subject matter of the assurance engagement
b) Performing services for an assurance client that directly affect the subject matter of the assurance engagement
c) Acceptance of gifts or hospitality, unless the value is clearly insignificant form the assurance client,
its directors, officers or employees
d) Preparation of original data used to generate financial statements or preparation of other records that the subject matter of the
assurance engagement
21) Which of the following statements concerning threats to independence is incorrect?
a) A former partner of the firm being a director, officer of the assurance client or an employee in a position to exert direct and
significant influence over the subject matter of the assurance engagement may create a familiarity threat
b) Threat of replacement over a disagreement with the application with the application of an accounting principle may create an
intimidation threat
c) A loan or guarantee to or from an assurance client or any of its directors or officers may create a self-interest threat
d) Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties may create a selfreview threat
22) According to the Code, appropriate safeguards should be identified and applied to eliminate the threats to independence or reduce them
to an acceptable level. Safeguards fall into any of the following broad categories, except
a) Safeguards determined by identified users of the assurance report
b) Safeguards created by the profession, legislation or regulation
c) Safeguards within the assurance client
d) Safeguards within the firm's own systems and procedures
23) Safeguards created by profession, legislation or regulation include the following, except
a) Educational, training, and experience requirement for entry into the profession
b) When the assurance client's management appoints the firm, persons other than management ratify or
approve the appointment
c) Continuing Professional Education (CPE) requirements

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d) Professional standards and monitoring and disciplinary processes

24) The following are safeguards within the assurance clients, except
a) The assurance client has competent employees to make managerial decisions
b) Policies and procedures that emphasize the assurance client's commitment to fair financial reporting
c) Policies and procedures to implement and monitor quality control of assurance engagements
d) A corporate governance structure, such as an audit committee, that provides appropriate oversight and communications regarding
a firm's services
25) Safeguards within the firm's own systems and procedures may include both firm-wide and engagement-specific safeguards. Which of the
following is an engagement-specific safeguard to eliminate or reduce threats to independence (other than those that are clearly
insignificant), to an acceptable level?
a) Removing an individual from the assurance team, when that individual's financial interest or relationships
create a threat to independence
b) Timely communication of firm's policies and procedures, and any changes thereto, to all partners and professional staff, including
appropriate training and education n thereon.
c) A disciplinary mechanism to promote compliance with firm policies and procedures
d) Policies and procedures to empower staff to communicate to senior levels within the firm any issue of independence and objectivity
that concerns them
26) Subsection 8.44 (Engagement Period) of the Code states, in part, that the members of the assurance client during the period of the
assurance engagement. Which of the following statements is false?
a) The engagement period starts when the assurance team begins to perform assurance services and ends when the assurance
report issued, except when the engagement is for a recurring audit
b) If the assurance engagement is expected to recur, the engagement period ends with the notification by either party that the
professional relationship has terminated or the issuance of the final assurance report, whichever is later
c) In the case of an audit engagement, the engagement period does not include the period covered by the financial statements
reported on by the firm
d) When an entity becomes an audit client during or after the period covered by the financial statements that the firm will report on, the
firm should consider whether any financial or business relationships or previous services may create threats to independence
27) If a member of the assurance team, or his/her immediate family member, has a direct financial interest, or a material indirect financial
interest, in the assurance client, the self-interest threat created would be so significant. Which of the following safeguards would least
likely eliminate the threat or reduce it to an acceptable level?
a) Remove the member of the assurance team from the assurance engagement
b) Discuss the matter with those charged with governance, such as the audit committee
c) Dispose of the direct financial interest prior to the individual becoming a member of the assurance team
d) Dispose of the indirect financial interest in total or dispose of a sufficient amount of it so that the remaining interest is no longer
material prior to the individual becoming a member of the assurance team
28) A self-interest threat is created if a firm, or a network firm, has a direct financial interest in an audit client of the firm. Which of the
following safeguards should be applied to reduce the threat to an acceptable level?
a) Discussing the matter with those charged with governance, such as the audit committee
b) Involving an additional professional accountant to review the work done, or otherwise advise as necessary
c) Dispose of a sufficient of the direct financial interest so that the remaining interest is no longer material
d) No safeguard could reduce the threat to an acceptable level
29) A self-interest threat is created if a firm, or a network firm, has a material indirect financial interest in an audit client of the firm. The only
action appropriate to permit the firm to perform the engagement would be for the firm, or network firm, to
a) Dispose of the indirect interest in total
b) Dispose of a sufficient amount of the indirect, financial interest so that the remaining interest is no longer material
c) Either A or B
d) Neither A or B
30) A self-interest threat is created if a firm, or a network of a firm, has a material financial interest in an entity that has a controlling interest in
an audit client. Which of the following actions would most likely permit the firm to perform the engagement?

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A self-interest threat is created if a firm, or a network of a firm, has a material financial interest in an entity that has a controlling interest in
an audit client. Which of the following actions would most likely permit the firm to perform the engagement?
a) Discussing the matter with those charged with governance, such as the audit committee
b) Involving an additional professional accountant who did not take part in the assurance engagement to review the work done by the
assurance team
c) No safeguards need be applied because the threat is clearly insignificant
d) Either dispose the financial interest in total or dispose of s sufficient amount of it so that the remaining
interest is no longer material
31) Which of the following statements concerning "Loans and Guarantees" is Correct?
a) A loan form, or a guarantee thereof by, an assurance client that is a bank or a similar institution, to the firm would not create a
threat to independence provided the loan is made under normal lending procedures, terms and requirements and the loan is
immaterial to both the firm and the assurance client
b) A loan form, or a guarantee thereof by, an assurance client that is a bank or a similar institution, to a member of the assurance
team or his\her immediate family would not create a threat to independence provided the loan is the loan is immaterial to both the
firm or the member of the assurance team and the assurance client
c) A self-interest threat that is created if the firm, or a member of the assurance team, makes a loan to an assurance client that is not
a bank or similar institution, or guarantees such an assurance client's borrowing
d) A self-interest threat that is created if the firm, or a member of the assurance team, accepts a loan from, or has borrowing
guaranteed by an assurance client that is not a bank or similar institution.
32) Family and personal relationships between a member of the assurance team and a director, an officer or certain employees, depending
on their role, of the assurance client , may create
a) Advocacy or intimidation threats
c) Self-interest, familiarity, or intimidation threats
b) Self-interest or self-review threats
d) Advocacy, familiarity or intimidation threats
33) The spouse of a member of the assurance team is an employee of the audit client in a position to exert direct and significant influence on
the preparation of the audit client's accounting records of financial statements. Which of the following safeguards would most likely reduce
the self-interest, familiarity or intimidation threats created?
a) Remove the individual from the assurance team
b) Involve an additional professional accountant who did not take part in the audit engagement to review the work done by the
member of the assurance team
c) Discuss the matter with those charge with governance, such as the audit committee
d) Exclude the member of the assurance team from any substantive decision-making concerning the audit engagement
34) When an close family member of a member of the assurance team is a director, an officer, or an employee of the assurance client in a
position to exert direct and significant influence over the subject matter of the assurance engagement, self-interest, familiarity or
intimidation threats maybe created. Which of the following factors should be considered in assessing the significance of threats?
a) The position the close family member holds with client
b) The role of the professional accountant on the assurance team
c) Both A and B
d) Neither A or B
35) The father of a member of assurance team is a director of the client entity. The threat to independence caused by this relationship is
assessed to be other than clearly insignificant. Which of the following safeguards would least likely reduce the threat to an acceptable
a) Removing the individual from the assurance team
b) Where possible, structuring of the assurance team so that the professional does not deal with matters that are within the
responsibility of the close family member.
c) Policies and procedures to empower staff to communicate to senior levels within the firm any issue of independence and objectivity
that concerns them
d) When the assurance client's management appoints the firm, persons other than management ratify or approve
the appointment
36) What threat to independence is created when a member of the assurance team participates in the assurance engagement while knowing
(or having reason to believe) that he/she is to (or may) join the assurance client some time in the future?

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a) Self-interest threat
b) Self-review threat

c) Advocacy threat
d) Intimidation threat

37) A member of the assurance team had served as an officer of the assurance client prior to the period covered by the assurance report.
This may create the following threats to independence, except
a) Self-interest threat
c) Advocacy threat
b) Self-review threat
d) Intimidation threat
38) Subsection 8.151 of the Code states that using the same lead engagement partner on an audit over a prolonged period may create a
familiarity threat. It provides further that the familiarity threat created is particularly relevant in the audit of listed companies and
safeguards should be applied in such situations to reduce the threat to an acceptable level. Accordingly, for the audit of listed companies,
the lead engagement partner should be rotated after a pre-defined period, normally not to exceed
a) 2 years
c) 5 years
b) 3 years
d) 7 years
39) Which of the following non-assurance services would generally create self-interest or self-reviews threats are so significant that only
avoidance of the activity or refusal to perform the assurance engagement would reduce the threats to an acceptable level?
a) Having custody of an assurance client's assets
b) Supervising assurance client employees in the performance of their normal recurring activities
c) Preparing source documents or originating data, in electronic or other form, evidencing the occurrence of a transaction (for
example, purchase orders, payroll time records, and customer orders
d) Reporting, in a management role, to those charged with governance
40) The firm, or network firm, may provide an audit client that is not a listed entity with accounting and bookkeeping services, including payroll
services, or routine or mechanical nature, provide any self-review threat created is reduced to an acceptable level. The following are
examples of such services, except
a) Recording transactions for which the audit client has determined or approved the appropriate account classification
b) Determining or changing journal entries or the classifications for the accounts or transactions or other accounting records without
obtaining the approval of the audit client
c) Posting coded transactions to the audit client's general ledger
d) Preparing financial statements based on information in the trial balance
41) Which of the following statements relating to the provision of accounting and bookkeeping services to an audit client that is a listed entity
is incorrect?
a) The provision of accounting and bookkeeping services to an audit client that is listed entity may impair the independence of the firm
or network firm, or at least give the appearance of impairing independence
b) The provision of accounting and bookkeeping services of a routine or mechanical nature to divisions or subsidiaries of listed audit
clients would not be seen as impairing independence with respect to the audit client if certain conditions are met
c) The provision of accounting and bookkeeping services to an audit client is a normal part of the audit process and does not threaten
the firm's independence
d) The provision of accounting and bookkeeping services to audit clients in emergency or other unusual situations, when it is
impractical for the audit client to make other arrangements would not impair the firm's independence if certain conditions are met
42) Subsection 8.171 of the Code states, "A valuation comprises the making of assumptions with regards t future developments, the
application of certain methodologies and techniques, and the combination of both in order to compute a certain values, for an asset, a
liability or for a business as a whole". Which of the following threats may be treated when a firm or a network firm performs valuation for
an audit client that is to be incorporated in the client's financial statements?
a) Advocacy threat
c) self-review threat
b) Familiarity threat
d) Intimidation threat
43) A firm provides valuation services to an audit client. The service involves valuation of matters material to the financial statements and
involves a significant degree of subjectivity. Which of the following safeguards should be applied to eliminate the self-review threat
created, or reduce it to an acceptable level?

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a) Confirming with the audit client their understanding of the underlying assumptions of the valuation and the methodology to be used
and obtaining approval for their use.
b) Obtaining the audit client's acknowledgement of responsibility for the results of the work performed by the firm
c) Making arrangements so that personnel providing such services do not participate in the audit engagement
d) The self-review threat created could not be reduced to an acceptable level by the application of any safeguards
44) The following statements relate to the provision of taxation, internal audit or IT systems services to audit clients. Which is false?
a) Taxation services, including companies, planning, provision of formal taxation opinions, and assistance in the resolution of tax
disputes may create a self-review threat
b) A self-review threat may be created when a firm, or network firm, provides internal audit services to an audit client.
c) The provision of services by a firm or network firm to an audit client that involve the design and implementation of financial
information technology systems that are used to generate information forming part of a client's financial statements may create a
d) The provision of services in connection with the assessment, design, and implementation of internal accounting controls and risk
management controls does not create a threat to independence provided that firm or network firm personnel do not perform
management functions.
45) Litigation support services include the following activities, except
a) Acting as an expert witness
b) Providing assistance to an audit client's internal legal department
c) Calculating estimated damages or amounts that might become receivable or payable as the result of litigation or other legal dispute
d) Assistance with document management and retrieval in relation to a dispute or litigation
46) What threat to independence is created when the litigation support services provided to an audit client include the estimation of the
possible outcome and thereby affects the amounts or disclosures to be reflected in the financial/
a) Self-review threat
c) Familiarity threat
b) Advocacy threat
d) Intimidation threat
47) According to Subsection 8.913 of the Code, legal services encompasses a wide and diversified range of areas including both corporate
and commercial services to clients such as contract support; litigation, mergers, and advice and support; and the provision of assistance
to a client's internal legal department. he provision of the legal services by a firm, or network firm, to an audit client may create
a) Self-interest threat
c) Advocacy and intimidation threats
b) Self-review threat and advocacy threats
d) Familiarity and intimidation threats
48) The following statements relate to the provision of legal services to an audit client. Which is incorrect?
a) The provision of legal services to an audit client involving matters that would not be expected to have a material effect on the
financial statements may create a self-review threat
b) Legal services to support an audit client in the execution of a transaction (e.g. Contract support) may create a self-review threat
c) Acting for an audit client in the resolution of a dispute or litigation in such circumstances when the amounts involved are material in
relation to the financial statements of the audit client would create advocacy an self- review threats so significant no safeguards
d) The appointment of a partner or an employee of the firm or network firm as general counsel for legal affairs to an audit client would
create self-review threat and advocacy threats that are so significant no safeguards could reduce the threats to an acceptable level.
49) The recruitment of senior management for an assurance client, such as those in a position to affect the subject matter of the assurance
engagement, may create the following current or future threats to independence, except
a) Self-review threat
c) Familiarity threat
b) Advocacy threat
d) Intimidation threat
50) The provision of corporate finance services, advise or assistance to an assurance client may create
a) Self-interest threat
c) Advocacy and intimidation threats
b) Self-review threat and intimidation threats
d) Advocacy and intimidation threats
51) When the total fees generated by an assurance client represents a large proportion of a firm's total fees, the dependence on that client or
client group and concern about the possibility of losing the client may create a/an
a) Self-interest threat
c) Familiarity threat
b) Advocacy threat
d) Intimidation threat

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52) What threat to independence may be created when the fees generated by the assurance client represent a large portion of the revenue of
an individual of the firm?
a) Self-interest threat
c) Intimidation threat
b) Self-review threat
d) Advocacy threat
53) What threat to independence may be created if fees due from an assurance client for professional services remain unpaid for a long time,
especially if a significant part is not paid before the issue of the assurance report for the following year?
a) Self-interest threat
c) Intimidation threat
b) Self-review threat
d) Advocacy threat
54) When a firm obtains an assurance engagement at a significantly lower fee level than that charged by the predecessor firm, or quoted by
other firms, the self-interest threat created will not be reduced to an acceptable level unless.
I. The firm is able to demonstrate that appropriate time and qualified staff are assigned to the task.
II. All applicable assurance standards, guidelines, and quality control procedures are being complied with.
a) I only
c) Both I and II
b) II only
d) Neither I nor II
55) These are fees calculated on a predetermined basis relating to the outcome or result of a transaction or the result of the worked performed.
a) Contingent fees
c) Predetermined fees
b) Fixed fees
d) Commissions
56) What threats to independence are created when a contingent fee is charged by a firm in respect of an assurance engagement?
a) Self-review and intimidation threats
c) Familiarity and intimidation threats
b) Self-interest and advocacy threats
d) Self-interest and self-review threats
57) Accepting gifts or hospitality (unless the value is clearly insignificant) may create
a) Self-review and intimidation threats
c) Familiarity and intimidation threats
b) Self-interest and advocacy threats
d) Self-interest and self-review threats
58) Which of the following threats to independence may be created when litigation takes place, or appears likely, between the firm or a
member of the assurance team and the assurance client?
a) Self-review and intimidation threats
c) Familiarity or intimidation threats
b) Self-interest and advocacy threats
d) Self-review or intimidation threats
59) After evaluating the significance of the threat created by an actual or threatened litigation, the following safeguards should be applied to
reduce the threat to an acceptable level, except
a) Disclosing to the audit committee or others charged with governance, the extent and nature of litigation
b) If the litigation involves a member of the assurance team, removing that individual from the assurance team
c) Involving an additional professional accountant in the firm who was not a member of the assurance team to review the work or
otherwise advise as necessary
d) Withdraw from, or refuse to accept, the assurance engagement
60) Which of the following is not a factor to consider in determining the professional fee of a professional accountant in public practice?
a) The skills and knowledge required for the type of professional services involved
b) The result of the assurance work
c) The level of training and experience of the persons necessarily engaged in performing the professional services
d) The time necessary occupied by each person engaged in performing the professional services
61) Which of the following concerning commissions is incorrect/
a) A professional accountant in public practice should not pay a commission to obtain a client nor should a commission be accepted
for referral of a client to a third party.
b) A professional accountant in public practice should not accept a commission for the referral of the products or services of others
c) Payment and receipt of referral fees between professional accountants in public practice when no services are performed by the
referring accountant are not regarded as commissions

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d) A professional accountant in public practice may enter into an agreement for the purchase of the whole or part of accounting
practice requiring payments to individuals formerly engaged in the practice or payments to their heirs or estates
62) The following actions should be taken by a professional accountant in public practice entrusted with client's money, except
a) Keep such money separately from personal or firm money
b) When it seems likely that the client's money will remain on client account for a significant period of time, place such money in an
interest-bearing account within a reasonable time, even without the client's concurrence.
c) Use such money only for the purpose for which it is intended
d) At all times, be ready to account for the money to any person entitled to such accounting
63) The communication to the public of facts about a professional accountant which are not designed for the deliberate promotion of that
professional accountant is
a) Advertising
c) Promotion
b) Solicitation
d) Publicity
64) The following statements relate to advertising and solicitation. Which is incorrect?
a) Advertising and solicitation by individual professional accountants in public practice are not permitted in the Philippines
b) Advertising and solicitation by individual professional accountants in public practice are not permitted in the Philippines, subject to
certain limitations.
c) A professional accountants in public practice are not permitted in the Philippines where advertising is prohibited should not
advertise in a newspaper or magazine published in a country where advertising is permitted.
d) Advertising is a communication to the public of information as to services or skills provided by public accountants in public practice
with a view to procuring profession business
65) Publicity by individual professional accountant in public practice is acceptable provided
a) It has its object the notification to the public of matters of fact in a matter that is not false misleading or deceptive.
b) It is in good taste and is professionally dignified
c) It avoids frequent repetition of, and any undue prominence given to the name of the professional accountant in practice
d) All of the above
66) Which of the following forms of publicity is prohibited by the CODE?
a) A professional accountant may be listed in a directory provided neither the directory itself nor the entry could reasonably be
regarded as a promotional advertisement for those listed therein
b) Professional accountants who author books or articles on professional subjects may state their name and professional
qualifications; give the name of their organization; and give any information as to the services that the firm provides
c) Appropriate newspapers or magazines may be used to inform the public of the establishment of a new practice, of changes in the
composition of partnership of professional accountant in public practice, or of any alteration in the address of a practice
d) A professional accountant may develop and maintain a website in the internet that may include announcements, press releases,
and other necessary and factual information but should not contain self-laudatory statements designed to solicit clients
67) The holding media-covered events undertaken only to commemorate a professional accountant's anniversaries in public practice does not
violate the rules on advertising and solicitation provided that such undertaking should be done only every ____ years of celebration
a) 5
c) 20
b) 10
d) 25
68) Under the Code, a professional accountant in public practice currently holding an audit appointment or carrying out accounting, taxation,
consulting or similar professional services for a client is/an
a) Receiving accountant
c) Successor accountant
b) Predecessor accountant
d) Existing accountant
69) As defined in the Code, a professional accountant in public practice to whom the existing accountant or client of the existing accountant
had referred audit, accounting, taxation, consulting or similar appointments, or who is consulted to meet the needs of the client is a/an
a) Receiving accountant
c) Successor accountant
b) Predecessor accountant
d) Existing accountant

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70) Before accepting an appointment involving recurring professional services previously carried out by another professional accountant in
public practice, the proposed professional accountant in public practice should
a) Ascertain if the prospective client has advised the existing accountant of the proposed change and has given permission, preferably
in writing, to discuss the client's affairs full and freely with the proposed professional accountant in public practice
b) Request permission from the prospective client to communicate with the existing accountant

c) On receipt or permission, ask the existing accountant, preferably in writing, to provide the information on any professional reason
which should be known before deciding whether or not to accept the appointment
d) All of the above

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and character

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of the client

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performed.

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