RA 9298 Midterms

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. The following statements relate to some of the provisions of RA 9298. Which is correct?
a. Audit working papers are generally the property of the company whose financial statements
were audited.
b. After three (3) years, subject to certain conditions, the Board of Accountancy may order the
reinstatement of a CPA whose certificate of registration has been revoked.
c. The penal provision (Sec. 36) of RA 9298 applies only to the violation of any of the
provisions of RA 9298 because its IRR are unenforceable.
d. It shall be the primary duty of the PRC and the BOA to effectively enforce the provisions of
RA 9298.
____ 2. Listed below are names of four CPA firms and pertinent facts relative to each firm. Unless otherwise stated, the
individuals named are CPAs and partners, and there are no other partners. Which is a violation of the IRR of RA
9298?
a. Tin, Ton, and Tan, CPAs (Tin died about five years ago; Ton and Tan are continuing the
firm.)
b. Poe and Que, CPAs (The name of Cua, a third partner, is omitted from the partnership
name.)
c. Tom and Jerry, CPAs (Tome died about three years ago; Jerry is continuing the firm as a
sole proprietor.)
d. Ellas and Co., CPAs (The firm has ten other partners who are all CPAs)
____ 3. Section 34 of the IRR provides that a foreign CPA shall not be allowed to practice accountancy in the
Philippines unless he/she can prove, in the manner provided by the rules of court that, by specific provision of
law, the country of which he/she is a citizen, subject or national admits Filipino citizens to the practice of the
same profession without restriction. Which of the following statements concerning foreign reciprocity is
incorrect?
a. A foreign CPA who desires to practice accountancy in the Philippines shall present/submit a
letter or any document signed and under official seal by the appropriate official of his/her
country/state requesting the Chairman of the PRC to allow him/her to practice accountancy
in the Philippines.
b. By express provision of the law of a foreign CPA’s country/state, Filipino CPAs are allowed
to practice accountancy in his/her country/state on terms of strict and absolute equality with
the citizens or subjects of the said country or state.
c. A foreign CPA should submit an authentic or authenticated copy of the law on reciprocity of
his/her country/state officially translated in the English language.
d. If the letter/document and the copy of the law submitted by a foreign CPA are satisfactory to
the BOA, he/she shall be allowed to practice accountancy in the Philippines but has to apply
for accreditation to do so.
____ 4. The Education Technical Council (ETC) shall be composed of
a. 15 members c. 17 members
b. 7 members d. 6 members
____ 5. The members of the Professional Regulatory Board of Accountancy shall be appointed by the
a. PICPA c. President of the Philippines
b. PRC d. ACPAPP
____ 6. The PICPA was recognized by the PRC as the APO on
a. October 1, 1974 c. October 3, 1976
b. October 2, 1975 d. October 4, 1977
____ 7. Which of the following is are grounds for suspension or removal of members of BOA?
I. Neglect of duty or incompetence.
II. Violation or tolerance of any violation of the CPA’s Code of Ethics.
III. Final judgment of crimes involving moral turpitude.
IV. Rigging of the certified public accountant’s licensure examination results.
a. I, II, III and IV c. III and IV
b. I, II and III d. I, III and IV
____ 8. Which of the following statements concerning ownership of working papers is incorrect?
a. All working papers made by a CPA and his/her staff in the course of an examination remain
the property of such CPA in the absence of a written agreement between the CPA and the
client to the contrary.
b. Working papers include schedules and memoranda prepared and submitted by the client
submitted by the client of the CPA.
c. Working papers include the reports submitted by a CPA to his/her client.
d. Working papers shall be treated confidential and privileged unless such documents are
required to be produced through subpoena issued by any court, tribunal, or government
regulatory or administrative body.
____ 9. The death or disability of an individual CPA and/or the dissolution and liquidation of a firm or partnership of
CPAs shall be reported to the BOA not later than _______ days from the date of such death, dissolution, or
liquidation.
a. 15 b. 30 c. 60 d. 90
____ 10. The following statements relate to the practice of public accountancy. Which statement is incorrect?
a. Single practitioners and partners of partnerships organized for the practice of public
accountancy shall be registered CPAs in the Philippines.
b. From the effectivity of RA 9298, a Certificate of Accreditation shall be issued to CPAs in
public practice only upon showing, in accordance with rules and regulations promulgated
by the Board and approved by the PRC, that such registrant has acquired a minimum of two
(2) years meaningful experience in any of the areas of public practice including taxation.
c. A partnership engaged in the practice of public accountancy may be carried on in the form
of a general partnership (GP) or a limited liability partnership (LLP) organized in
accordance with Philippine laws.
d. The Securities and Exchange Commission shall not register any corporation organized for
the practice of public accountancy.
____ 11. 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
____ 12. The following statements relate to CPE credit units. Which is incorrect?
a. The total CPE credit units for registered accounting professionals shall be sixty (60) credit
units for three (3) years, provided that a minimum of fifteen (15) credit units shall be earned
in each year.
b. Any excess credit units in one year may be carried over the succeeding years within the
three-year period.
c. Excess credit units earned may be carried over to the next three-year period including credit
units earned for doctoral and master’s degrees.
d. One credit hour of CPE program, activity or source shall be equivalent to one (1) credit unit.
____ 13. Section 36 (Penal Provision) of RA 9298 states that any person who shall violate any of the provisions of the
Philippine Accountancy Act or any of its implementing rules and regulations shall, upon conviction, be
punished by
a. A fine of not less than P50,000.
b. Imprisonment for a period not exceeding two (2) years.
c. A fine of not less than P50,000 or by imprisonment for a period not exceeding two (2) years.
d. A fine of not less than P50,000 or by imprisonment for a period not exceeding two (2) years,
or both.
____ 14. Its function is to conduct a quality review on applicants for registration to practice public accountancy and
render a report which shall be attached to the application for registration.
a. Board of Quality Reviewers c. Quality Review Committee
b. Quality Review Board d. Quality Review Circle
____ 15. Tanya, Sam, and Jervi, CPAs, a newly formed partnership, applied for registration with the Commission and the
Board which was approved on June 30, 2009. The partnership should apply for renewal of its registration on or
before
a. September 30, 2011 c. December 31, 2011
b. September 30, 2012 d. June 30, 2012
____ 16. The following statements relate to the exemption from CPE requirements. Which is false?
 a. A registered professional shall be permanently exempted from CPE requirements upon
reaching the age of 60 years old.
b. A registered professional shall be permanently exempted from CPE requirements upon
reaching the age of 65 years old.
c. A registered professional who is working or practicing his/her profession abroad shall be
temporarily exempted from compliance with CPE requirements during the period of his/her
stay abroad provided that he/she has been out of the country for at least two years
immediately prior to the date of renewal.
d. A registered professional who is furthering his/her studies abroad shall be temporarily
exempted from compliance with CPE requirements during the period of his/her stay abroad
provided that he/she has been out of the country for at least two years immediately prior to
the date of renewal.
____ 17. Which of the following statements concerning the issuance of of Certificates of Registration and Professional
Identification Cards to successful examinees is correct?
a. The Certificate of Registration issued to successful examinees is renewable every three (3)
years.
b. The Professional Identification Card issued to successful examinees shall remain in full
force and effect until withdrawn, suspended, or revoked in accordance with RA 9298.
c. The BOA shall not register and issue a Certificate of Registration and Professional
Identification Card to any successful examinee of unsound mind.
d. The BOA may, after the expiration of three (3) years from the date of revocation of a
Certification of Registration, reinstate the validity of a revoked Certificate of Registration.
____ 18. Who has the power to suspend or remove any member of the Board of Accountancy?
a. The Chairman of the PRC c. The President of the Philippines
b. The Chairman of the AASC d. The President of USPF-JPIA
____ 19. Which of the following is not an objective of the Philippine Accountancy Act of 2004?
a. The standardization and regulation of accounting education.
b. The examination for registration of certified public accountants.
c. The supervision, control, and regulation of the practice of accountancy in the Philippines.
d. The development and improvement of accounting standards that will be generally accepted
in the Philippines.
____ 20. The BOA shall not refuse the registration of any person who successfully passed the CPA examinations if
a. Convicted by a court of competent jurisdiction of a criminal offense involving moral
turpitude
b. Convicted for a political offense.
c. Guilty of immoral and dishonorable conduct
d. None of the above.
____ 21. The following documents shall be submitted by applicants for the CPA Licensure Examination, except
a. Certificate of Live Birth in National Statistics Office (NSO) security paper.
b. Marriage contract in NSO security paper for married (male or female) applicants.
c. Marriage contract in NSO security paper for married female applicants.
d. TOR with indication therein of date of graduation and Special Order number unless it is not
required.
____ 22. Which of the following is not one of the grounds for proceedings against a CPA?
a. Gross negligence or incompetence in the practice of his profession.
b. Engaging in public practice while being employed in a private enterprise.
c. Insanity.
d. Immoral or dishonorable conduct.
____ 23. 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
a. Quality review c. Appraisal
b. Peer review d. Quality control
____ 24. Which of the following is not a qualification of a member of the Board of Accountancy?
a. He/she must be of good moral character and must not have been convicted of crimes
involving moral turpitude.
 b. He/she must be a duly registered CPA with at least ten (10) years of work experience in the
practice of public accounting.
c. He/she must be a natural-born citizen and a resident of the Philippines.
d. He/she must not be a director or officer of the APO at the time of his/her appointment,
____ 25. Section 4 of the Implementing Rules and Regulations of RA 9298 provides that 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 should be occupied by a duly registered CPA. It provides further that
a. The business or company where such position exists has a paid-up capital of at least
P5,000,000 and/or annual revenue of at least P10,000,000.
b. The business or company where such position exists has a paid-up capital of at least
P10,000,000 and/or annual revenue of at least P5,000,000.
c. The section applies to all incumbents to the position.
d. The section applies only to persons to be employed after the effectivity of the Code of Ethics
for Professional Accountants in the Philippines.
____ 26. Which statement is correct regarding CPE requirements for renewal of professional license?
a. The total CPE credit units required for CPAs shall be sixty (60) units for three (3) years,
provided that a minimum of twenty (20) credit units shall be earned in each year.
b. A registered professional shall be permanently exempted from CPE requirements upon
reaching the age of 60 years old.
c. A registered professional who is working abroad shall be temporarily exempted from
compliance with CPE requirement during his/her stay abroad, provided that he/she is has
been out of the country for at least one year immediately prior to the date of renewal.
d. Those who failed to renew professional licenses for a period of five (5) continuous years
from initial registration, or from last renewal shall be declared delinquent.
____ 27. A CPA is in public accounting practice when he/she
a. Represents his/her employer before the government agencies on tax and other matters
related to accounting.
b. Represents his/her clients before government agencies on tax and other matters related to
accounting.
c. Teaches accounting, auditing, management advisory services, accounting aspect of finance,
business law, taxation, and other technically related subjects.
d. Holds, or is appointed to, in an accounting professional group in government or in a
government-owned and/or controlled corporation where decision making requires
professional knowledge in the science of accounting.
____ 28. The PRC upon the recommendation of the Board shall create a council to assist the BOA in carrying out its
power and functions and in attaining its objective of continuously upgrading the accountancy education in the
Philippines to make the Filipino CPA globally competitive. This council is to be known as the
a. CPAs in Education Council c. Education Technical Council
b. Council of CPAs in Education d. CPA in the Academe Council
____ 29. Which of the following statements concerning a CPA’s disclosure of confidential client information ia
ordinarily correct?
a. Disclosure may be made to any party on consent of the client.
b. Disclosure should not be made even if such disclosure will protect the CPA’s professional
interests in legal proceedings.
c. Disclosure should be made only if there is a legal or professional duty to make the
disclosure.
d. Disclosure may be made to any government agency without subpoena.
____ 30. A meaningful experience shall be considered as satisfactory compliance with the requirements of Section 28 of
RA 9298 if it is earned in (Choose the incorrect one)
a. Commerce and industry and shall include significant involvement in general accounting,
budgeting, tax administration, internal auditing, liaison with external auditors, representing
his/her employer before government agencies on tax and matters related to accounting or
any other related functions.
b. Academe/education and shall include teaching for at least three (3) trimesters or two (2)
semesters subjects in either financial accounting, business law and tax, auditing problems,
auditing theory, financial management and management services.
c. Government and shall include significant involvement in general accounting, budgeting, tax
 administration, internal auditing, liaison with the Commission on Audit or any other related
functions.
d. Public practice and shall include at least two years as audit assistant and at least one year as
auditor in charge of audit engagement covering full audit functions of significant clients.
RA 9298 Midterms
Answer Section

MULTIPLE CHOICE

1. ANS: D PTS: 1
2. ANS: C PTS: 1
3. ANS: A PTS: 1
4. ANS: B PTS: 1
5. ANS: C PTS: 1
6. ANS: B PTS: 1
7. ANS: A PTS: 1
8. ANS: C PTS: 1
9. ANS: B PTS: 1
10. ANS: B PTS: 1
11. ANS: B PTS: 1
12. ANS: C PTS: 1
13. ANS: D PTS: 1
14. ANS: C PTS: 1
15. ANS: A PTS: 1
16. ANS: A PTS: 1
17. ANS: C PTS: 1
18. ANS: C PTS: 1
19. ANS: D PTS: 1
20. ANS: B PTS: 1
21. ANS: B PTS: 1
22. ANS: B PTS: 1
23. ANS: A PTS: 1
24. ANS: B PTS: 1
25. ANS: A PTS: 1
26. ANS: D PTS: 1
27. ANS: B PTS: 1
28. ANS: C PTS: 1
29. ANS: A PTS: 1
30. ANS: D PTS: 1