Accountancy Law 1.

Known as Accountancy Act of 2004, the Republic Act number is: a) 9294 b) 9296 c) 9298 d) 9297 Answer: Letter C - Republic Act 9298 otherwise known as Accountancy Act of 2004 2. The objectives of the Revised Accountancy Law are the following, except: 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. d) Integration of accountancy profession. Answer: D SEC. 3. Objectives. This Act shall provide for and govern: The standardization and regulation of accounting education; The examination for registration of certified public accountants; and The supervision, control, and regulation of the practice of accountancy in the Philippines. 3. A member of the Board shall, at the time of his/her appointment, possess the following qualifications (choose incorrect statement): a) Must be a natural-born citizen and a resident of the Philippines. b) Must be a duly registered Certified Public Accountant with at least more than ten (10) years of work experience in the practice of accountancy. c) Must be of good moral character and must not have been convicted of crimes involving moral turpitude. d) Must not have any pecuniary interest, directly or indirectly, in any school, college, university or institution conferring an academic degree necessary for admission to the practice of accountancy or where review classes in preparation for the licensure examination are being offered or conducted, nor shall he/she be a member of the faculty or administration thereof at the time of his/her appointment to the Board. Answer: Letter B A member of the Board shall, at the time of his/her appointment, possess the following qualifications: A, C & D Must be a duly registered Certified Public Accountant with at least ten (10) years of work experience in the practice of accountancy.

4. Shall constitute in a person involved in decision making requiring professional knowledge in the science of accounting, or when such employment or position requires that the holder thereof must be a certified public accountant. a) Practice of public accountancy b) Practice in commerce and industry c) Practice in education/academe d) Practice in government Answer: Letter B (See Section 4 Scope of the accounting practice) 5. Which of the following is the least function of the Board of Accountancy? a) Determination of the minimum requirements leading to the admission of candidate to the CPA examinations. b) Preparation of the contents of the CPA licensure examination and rating of the examinations papers. c) Regulation of the practice of accountancy d) Supervision over the accredited professional organization of CPAs. Answer: Letter D (not included in the scope function, see Section 9 Powers and Functions of the Board) 6. A CPA certificate is evidence of a) Recognition of independence. b) Basic competence at the time the certificate is granted. c) Culmination of the educational process. d) Membership in the PICPA Answer: Letter B CPA Certificate of Registration a certificate under seal bearing a registration number, issued to an individual, by the Commission, upon recommendation by the Board, signifying that the individual has complied with all the legal and procedural requirements for such issuance including, in appropriate cases, having successfully passed the CPA licensure examination. 7. Any person applying for examination shall establish the following requisites to the satisfaction of the Board, except: a) Is a Filipino citizen. b) Is of good moral character; c) Is the holder of the degree of Bachelor of Science in Accountancy conferred by a school, college, academy or institute duly recognized and/or accredited by the CHED or other authorized government offices.

d) National Bureau of Investigation (NBI) Clearance. Answer: Letter D Any person applying for examination shall establish the following requisites to the satisfaction of the Board: A, B, & C Has not been convicted of any criminal offense involving moral turpitude. 8. Who shall approved to revise or exclude any of subject and their syllabi, and add new ones as the need arises? a) Board of Accountancy b) Professional Regulatory Commission c) Board of Accountancy & Professional Regulatory Commission d) Board of Accountancy & Academe Committee of Board. Answer: Letter B The board, subject to approval of the Commission, may revise or exclude nay of the subject and their syllabi, and add new ones as the need arises. 9. Under Section 20 of RA 9298, the Certificate of Registration shall bear the signature of the following, except: a) The chairperson of Professional Regulation Commission b) The Chairman of the Board of Accountancy c) The members of the Board of Accountancy d) The person named in the certificate of registration Answer: Letter D (see Section 20 Issuance of Certificate of registration and Professional Identification Card) 10. A Professional Identification card shall be issued to individual after complying the requirement of RA 9298, shall be likewise be issued to every registrant renewable every: a) Two years b) Three years c) Four years d) Every year or any year at the option of the registrant. Answer: Letter B Section 20 - A professional identification card bearing the registration number, date of issuance, expiry date, duly signed by the Chairperson of the Commission, shall likewise be issued to every registrant renewable every three (3) years.

11. 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 Answer: Letter B (see Section 23 Refusal to Issue Certificate of Registration and Professional Identification Card, and Section 24 Suspension and Revocation of Certificate of Registration and Professional Identification Card and Cancellation of Special Permit) 12. The Accountancy Law provides that all working papers made during an audit shall be the property of the auditor. These working papers shall include the following, except: a) Schedule and memoranda made by the CPA and his staff. b) Working papers prepared and submitted by the client. c) Excerpts or copies of documents furnished by the auditor. d) Reports submitted by the CPA to the client. Answer: Letter D (see Section 29 Ownership of Working Papers) 13. The CPE program shall have the following objectives (choose incorrect statement): a) The raise and maintain the professionals capability for delivering professional services. b) To attain and maintain the minimum standard and quality in the practice of his profession. c) To make the professional globally competitive. d) To promote the general welfare of the public Answer: Letter B Section 32 Annex C: The CPE program shall have these objectives: To provide and ensure the continuous education of a registered professional with the latest trends in the profession brought about by modernization and scientific and technological advancements A, C, & D To attain and maintain the highest standard and quality in the practice of his profession. 14. Period when a partner surviving the death or withdrawal of all the other partners in a Partnership may continue to practice under the Partnership name. a) Within two years after becoming sole proprietor. b) Not more than two after becoming sole proprietor.

c) Not more than two years or period of two years whichever come first after becoming sole proprietor. d) BOA or SEC shall determine the reasonable period of change into sole proprietor. Answer: Letter B (see Section 31 Annex B #1C Registration) 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 two (2) years after becoming a sole proprietor. 15. The Quality Review Committee (QRC) shall be composed of: a) 5 members b) 7 members c) 9 members d) 3 members Answer: Letter B (see Section 31 Annex B # 3B Quality Review) The QRC shall be composed of seven (7) members with a chairman, who had been or presently a senior practitioner in public accountancy and six (6) representatives. 16. Which statement is incorrect regarding Continuing Professional Education (CPE) a) CPE refers to the inculcation, assimilation and acquisition of knowledge, skills, proficiency and ethical and moral values, after the initial registration of a professional that raise and enhance the professionals technical skills and competence. b) The total CPE credit units required for CPAs shall be ninety (90) units for three (3) years, provided that a minimum of fifteen (15) credit units shall be earned in each year. c) Any excess credit units in one year may be carried over to the succeeding years within the three-year period. d) CPE credit units shall be granted only to accredited programs and providers. Answer: Letter B Section 32 Annex C # 5: The total CPE credit units required for CPAs shall be sixty (60) units for three (3) years, provided that a minimum of fifteen (15) credit units shall be earned in each year. 17. The following statements relate to the Philippines Accountancy Act of 2004. Which statement is false? a) The Professional Regulation Commission has the authority to remove any member of the Board of Accountancy for negligence, or any other just cause. b) Any candidate who fails in two complete CPA Board Examinations shall be disqualified from taking another set of examinations unless he/she submits

evidence to the satisfaction of the Board that he/she enrolled in and completed at least twenty-four (24) units of the subjects given in the licensure examination. c) All license certified public accountants shall obtain the use a seal of a design prescribed by the Board bearing the registrants name, registration number and title. d) After two years, subject to certain conditions, the Board of Accountancy may order the reinstatement of a CPA whose certificate of registration has been revoked. Answer: Letter A The Board of Accountancy has the authority to remove any member of the Board of Accountancy for negligence, or any other just cause. (Section 23 & 24) Any candidate who fails in two complete CPA Board Examinations shall be disqualified from taking another set of examinations unless he/she submits evidence to the satisfaction of the Board that he/she enrolled in and completed at least twentyfour (24) units of the subjects given in the licensure examination. (Section 18) All license certified public accountants shall obtain the use a seal of a design prescribed by the Board bearing the registrants name, registration number and title. (Section 33) After two years, subject to certain conditions, the Board of Accountancy may order the reinstatement of a CPA whose certificate of registration has been revoked. (Section 25) 18. A certificate of accreditation shall be issued to shall be issued to certified public accountants in public practice only upon showing, in accordance with rules and regulations promulgated by the Board and approved by the Commission, that such registrant has acquired how many years of meaningful experience in any of the areas of public practice? a) One b) Two c) Three d) Four Answer: Letter C (see Section 31 Accreditation to Practice Public Accountancy) 19. Which of the following is not an objective of requiring registration of individual Certified Public Accountants and Firms or Partnership of CPAs engaged in public accounting practice? a) The required registration will give equal opportunities to CPAs in the practice of their profession. b) It will enable the Board of Accountancy to formulated and implement rules and regulations more effectively for the enhancement and maintenance of high professional, ethical, and technical standards of the accounting profession.

c) To protect the public against fraud, deception, unethical practices and from the consequences of ignorance, incompetence, and incapacity in the practice of public accounting. d) It will help PRC and BOA to identify and imposed corresponding sanctions and penalties on individual CPAs. Answer: Letter A (see Article IV Practice of Accountancy) 20. When a certified public accountant is suspected in violation of RA 9298 otherwise known as Accountancy Law he/she shall be: a) The certificate of registration as CPA will be suspended. b) BOA will be unlisted the violator in the roaster of CPA c) PRC will investigate the matter d) Investigated regarding the matter. Answer: Letter D (see Section 24 Suspension and Revocation of Certificate of registration and professional Identification Card) 21. Upon effectivity of RA 9298 under the rules and regulations to be promulgated by the Board subject to approval of the Commission. All graduates with Bachelor Degree, major in accounting shall be allowed to take the CPA licensure Examination within: a) One year b) Two years c) Three years d) No prescription period because it is a violation of basic right. Answer: Letter B Section 42 Transitory Provision All graduates with Bachelor Degree, major in accounting shall be allowed to take the CPA licensure Examination within two (2) years from the effectivity of this act (RA 9298) under the rules and regulations to be promulgated by the Board subject to approval of the Commission. 22. Any person who shall violate any of the provisions of this Act or any of its implementing rules and regulations as promulgated by the Board subject to the approval of the Commission, shall, upon conviction, be punished by a fine of: a) Not less than fifty thousand pesos (P 50,000.00) or by imprisonment for a period not exceeding two (2) years or both. b) Not less than fifty thousand pesos (P 50,000.00) and by imprisonment for a period not exceeding two (2) years. c) Not more than fifty thousand pesos (P 50,000.00) or by imprisonment for a period not exceeding two (2) years or both.

d) Not more than fifty thousand pesos (P 50,000.00) and by imprisonment for a period not exceeding two (2) years. Answer: Letter A (Section 36 Penal Provision) Any person who shall violate any of the provisions of this Act or any of its implementing rules and regulations as promulgated by the Board subject to the approval of the Commission, shall, upon conviction, be punished by a fine of not less than fifty thousand pesos (P 50,000.00) or by imprisonment for a period not exceeding two (2) years or both. 23. Period when the Republic Act 9298 otherwise known as Accountancy Law of 2004 shall be effective? a) On and after January 1, 2004 b) On January 1, 2004 c) Upon approval stated therein. d) After 15 days following its publication in the Official Gazette or in any daily newspaper of general circulation. Answer: Letter D (Section 44 Effectivity) This Act (RA 9298) shall take effect after fifteen (15) days following its publication in the Official Gazette or in two (2) newspapers of general circulation.