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QUIZ 2- RA 9298, Code of Ethics

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RA 9298 and IRR

CJ ALLAUIGAN

1. It involves a study or appraisal by the Board or its duly authorized representatives, of the quality audit of financial
statements through an evaluation of the quality control measures instituted by the CPA firm to ascertain compliance with
ethical and technical standards of public practice.
a. Quality Review
b. Compliance Review
c. Compliance Audit
d. External Audit
2. The BOA may, after the expiration of ___ years from the date of revocation of a certificate of registration, reinstate the
validity of a revoked certificate of registration.
a. 2
b. 3
c. 4
d. 5
3. The sector that is most presented in the AASC is the:
a. Government
b.
Academe

c. Public Practice

d. Commerce and Industry

4. This standard setting body shall have a chairman who had been or presently a senior accounting practitioner in any of the
scope of accounting practice.
a. PICPA
b. ACPAPP
c. FRSC
d. AASC
5. Which is the least function of the BOA?
a. To prepare, adopt, issue or amend syllabi at the subject for examinations in consultation with the academe.
b. To supervise the Commission
c. To investigate violations of RA 9298
d. To prepare questions for the CPA licensure examination which shall strictly within the scope of the syllabi of the
subjects for examination.
6. Which of the following organization has been recognized by the commission on October 2, 1975 per Accreditation No. 15,
as Accredited Professional Examination?
a. ACPAE
b. ACPAPP
c. PICPA
d. BOA
7. CPAs, firms and partneships of CPAs engaged in the practice of public accountancy, including partners and staff members
thereof, shall register with the BOA and the PRC, such registration to be renewed every
a. Three years on or before December 31
b. Two years on or before December 31
c. Three years on or before September 30
d. Two years on or before September 30
8. The names under which a CPA practices the profession must:
a. Indicate any specialization
b. Contain more than three name
c. Include one fictitious name
d. Not misleading as to form of organization
9. No person shall serve the Professional Regulatory Board of Accountancy for more than:
a. 3 years
b. 6 years
c. 9 years
d. 12 years
10. Which of the following functions to promulgate auditing standards?
a. AASC
b. ACPAPP
c. FRSC

d. ACPAE

11. According to Section 9(A) of the IRR , the Commission upon the recommendation of the Board, shall create auditing
standard setting body to be known as the
a. Auditing and Assurance Standards Council
b. Auditing Standard Council
c. Auditing Standard and Practices Council
d. Auditing Standard Board
12. I. The policies, resolution, rules and regulations, issued or promulgated by the Board shall be subject to review and
approval of the Commission.
II. The Boards decisions, resolutions or orders rendered in administrative cases shall be subject to approval only if on
appeal.
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
13. The AASC shall be composed of eighteen (18) members with a Chairman and 17 representatives. How many
representatives will come from Accredited National Professional Organization in public practice?
a. 8
b. 6
c. 9
d. 7
14. The ETC shall be composed of seven (7) members with a Chairman and 6 representatives. How many representatives will
come from Accredited National Professional Organization?
a. 5
b. 6
c. 8
c. 9

15. I. The ETC shall render a report of its findings and recommendations on the foregoing activities to the Commission.
II. The Commission shall review such report and if found to be meritorious, it shall forward the same to the Board which
shall make proper representation with the CHED for its appropriate consideration.
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
16. The following are the grounds for suspension or removal of members of the Board except:
a. Pending case involving moral turpitude.
b. Neglect of duty or incompetence
c. Manipulation or rigging of the certified public accountants licensure examination results.
d. Violation of or tolerance of Certified Public Accountants Code of Ethics.
17. Which is not permitted by RA 9298 to practice public accountancy?
a. A CPA in individual capacity
b. A corporation, whose stockholders are all CPAs
c. A sole proprietorship
d. A general partnership
18. A certificate of accreditation shall be issued to CPAs in public practice only upon showing, in accordance with rules and
regulations promulgated by the BOA and approved by the PRC, that such registration has a acquired a:
a. Minimum of 3 years meaningful experience in any of the areas of practice of accountancy including taxation.
b. Minimum of 3 years meaningful experience in any of the areas of practice of accountancy
c. Minimum of 3 years meaningful experience in any of the areas of public practice including taxation.
d. Minimum of 3 years meaningful experience in any of the areas of public practice excluding taxation.
19. The meaningful experience in public accountancy as required by RA 9298 shall include:
a. At least one year as audit assistant and at least one year as auditor in charge.
b. At least two years as audit assistant and at least one year as auditor in charge.
c. At least two years as audit assistant and at least two years as auditor in charge.
d. At least one year as audit assistant and at least two years as auditor in charge.
20. Which of the following is not a function of the BOA?
a. To supervise the registration, licensure and practice of accountancy in the Philippines.
b. To adopt an official seal of the Commission.
c. To prescribe and/or adopt a code of ethics for the practice of accountancy.
d. To issue, suspend, revoke, or reinstate the certificate of registration for the practice of the accountancy profession.
21. Which of the following does not have a representation in the Financial Reporting Standards Council (FRSC)?
a. Board of Investments
b. Board of Accountancy
c. Philippine Institute of CPAs
d. Bureau of Internal Revenue
22. The Chairman and the members of the FRSC and AASC shall have a term of
a. 1 year
b. 2 years
c. 3 years

c. 4 years

23. The Board of Accountancy shall elect a vice-chairman from among its members for a term of
a. 1 year
b. 2 years
c. 3 years
c. 4 years
24. The PICPA shall renew its certificate of accreditation once every:
a. 3 years
b. 4 years
c. 5 years

c. 6 years

25. Which of the following has the power to conduct an oversight into the quality of audits of financial statements through the
review of the quality control measures instituted by auditors?
a. BIR
b. SEC
c. BOA
d. Insurance Commission
26. A practice that shall constitute in a person involved in decision making requiring professional knowledge in the science of
accounting, as well as the accounting aspects of finance and taxation.
a. Public Accountancy
b. Commerce and Industry
c. Education/Academe d. Government
27. A practice that shall constitute in a person where civil service eligibility as a certified public accountant is a prerequisite.
a. Public Accountancy
b. Commerce and Industry
c. Education/Academe d. Government
28. A practice that shall constitute in a person when such employment or position requires that the holder thereof must be a
certified public accountant.
a. a. Public Accountancy b. Commerce and Industry
c. Education/Academe d. Government
29. Which of the following is not a requisite in the Qualification of Members of the Professional Regulatory Board of
Accountancy
a. Good moral character
b. Natural-born citizen of the Philippines
c. Must be a duly registered CPA with at least 12 years of work experience in any scope of practice of accountancy

d. Has not been convicted of any criminal offense involving moral turpitude
30. An organization engaged in the practice of public accountancy, consisting of a sole proprietor, either alone or with one or
more staff member/s.
a. Firm
b. Partnership
c. Individual CPA
d. Commssion
31. The following are the powers and functions of the Board except:
a. To administer oaths in connection with the administration of RA 9298
b. To supervise the registration, licensure and practice of accountancy in the Philippines
c. To prescribe and/or adopt a Code of Ethics for the practice of accountancy
d. To evaluate periodically the performance of educational institutions.
32. All certified public accountants shall show the following, except
I.
CPA Registration number
II.
Professional tax receipt
III.
Place and date of payment of PTR
IV.
Signature of the CPA
a. I and IV only
b. III only
c. II only
d. None of the above
33. PICPA shall have ___ national directors, unless there is a valid reason to have additional representation in four geographic
areas.
a. 10
b. 15
c. 20
d. 25
34. 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
a. Not less than 1 year after the death
b. Not more than 3 years after becoming a sole proprietor
c. Not more than 2 years after becoming a sole proprietor
d. Not less than 2 years after becoming a sole proprietor.
35. Which of the followings statements is correct?
a. An individual CPA, Firms and Partnerships duly registered to engage in the practice of public accountancy may
voluntarily withdraw their registration by filing with the Commission for a petition stating the reasons thereon.
b. The petition shall indicate the reason for the voluntary withdrawal and shall be in writing.
c. At the expense of the petitioner, the board shall publish or cause the publication of the request for withdrawal of
registration twice in a newspaper of general circulation in the principal place of business of the petitioner.
d. Upon receipt of the Board of the notice of the withdrawal of registration, the petitioner may or may not cease to
engage in the practice of public accountancy.
36. The Board shall require as a condition to registration or renewal thereof for the Individual CPA, Firms, Or Partnerships of
CPAs to undergo quality review to be performed by
a. Quality Review Council
b. Quality Review Committee
c. The Board itself
d. By the Board and the Commission
37. Any person who violates any of the provision of RA 9298 shall upon conviction be punished by a fine
a. Not less than P50,000
b. Imprisonment for a period not exceeding two years.
c. Not less than P50,000 and or imprisonment for a period not exceeding two years.
d. Not more than P50,000 and or imprisonment for a period not exceeding two years.
38. The new CPD credit requirements for CPAs to be completed every three years
a. 30 units
b. 60 units
c. 120 units
d. 240 units
39. I. The Continuing Professional Education Council for Accountancy was replace by Continuing Professional Development
Council for Accountancy.
II. Based on BOA Resolution No. 59, s. 2012, the 60 CPD credits shall be earned from the five thematic areas (Enabling
Laws, Rules and Regulations, Standards Applicable to Professional Practice, Environment of the Practice and
Development of the Person as a Professional)
III. Based on the latest BOA resolution, 120 CPD credits shall be earned from the Competence Areas categorized into
Technical Competence, Professional Skills and Professional Values, Ethics and Attitudes.

a.
b.
c.
d.

I is true
I and II are true
I ,II and III are true statements.
I, II and III are false statements.

40. Which is incorrect about the board exam rating for CPAs?
a. To be qualified as having passed the CPA licensure examination, a candidate must obtain a general average of seventy
five percent (75%), with no grades lower than sixty five percent (65%) in any given subject.
b. In the event a candidate obtains the rating of seventy five (75%) and above in at least a majority of the subjects as
provided in RA 9298, the candidate shall receive a conditional credit for the subjects passed, provided the candidate
shall take the examination in the remaining subjects within a year from the preceding examination
c. If the candidate fails to obtain at least a general average of seventy five (75%) and a rating of at least sixty five (65%)
in each of the subjects, the candidate shall be considered failed in the entire examination.
d. None of the above.
Code of Ethics
41. Which is not true about the Code of Ethics?
a. The Code of Ethics for Professional Accountants in the Philippines was adopted from the Code of Ethics
developed by the International Federation of Accountants (IFAC)
b. The first part of the Code of Ethics is generally applied to all accounts while the next two parts applies to
Accountants in Public Practice.
c. IFAC Board has established the International Ethics Standards Board for Accountants (IESBA) to develop and
issue, under its own authority, high quality ethical standards and other pronouncements for professional
accountants for use around the world.
d. a. The Code of Ethics for Professional Accountants in the Philippines into three parts.
42. According to the Code, threats fall into one or more of the following categories except,
I.
Self -interest threat
II.
Self -review threat
III.
Advocacy threat
IV.
Familiarity threat
V.
Intimidation threat
a. I only
b. III only
c. IV and III only
d. None of the above
43. Safeguards are actions or other measures that may eliminate threats or reduce them to an acceptable level.
Safeguards such as Educational, training and experience requirements for entry into the profession and continuing
professional development requirements fall into which category of safeguard?
a. Safeguards in the work environment.
b. Safeguards created by the profession, legislation or regulation
c. Safeguards created by the CPAs
d. Safeguard specific to an engagement
44. I. The principle of integrity imposes an obligation on all professional accountants not to compromise their professional or
business judgment because of bias, conflict of interest or the undue influence of others.
II. Integrityimplies fair dealing and truthfulness.
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
45. I. Diligence encompasses the responsibility to act in accordance with the requirements of an assignment, carefully,
thoroughly and on a timely basis.
II. A professional accountant should take steps to ensure that those working under the professional accountants authority
in a professional capacity have appropriate training and supervision.
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
46. A threat which which may occur when a previous judgment needs to be re-evaluated by the professional accountant
responsible for that judgment.
a. Self-interest
b. Self-review
c. Advocacy
d. Familiarity
47. A threat which may occur when, because of a close relationship, a professional accountant becomes too sympathetic to the
interests of others.
a. Intimidation
b. Self-review
c. Self-interest
d. Familiarity
48. A threat which may occur when a professional accountant may be deterred from acting objectively by threats, actual or
perceived.
a. Intimidation
b. Familiarity
c. Advocacy
d. Self-interest
49. A threat which may occur when a professional accountant promotes a position or opinion to the point that subsequent
objectivity may be compromised.
a. Intimidation
b. Familiarity
c. Advocacy
d. Self-interest

50. A threat which may occur as a result of the financial or other interests of a professional accountant or of an immediate or
close family* member.
a. Intimidation
b. Familiarity
c. Advocacy
d. Self-interest
51. A distinct sub-group, whether organized on geographical or practice lines.
a. Firm
b. Related Entity
c. Office

d. Network Firm

52. The following should conform to the technical and professional standards except:
a. BOA
b. SEC
c. Relevant Legislation

d. FRSC

53. I. Relationships should be avoided which allow prejudice, bias or influences of others to override objectivity.
II. Professional accountants have an obligation to ensure that personnel engaged on Professional services adhere to the
principle of objectivity.
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
54. I. Professional accountants should not portray themselves as having expertise or experience they do not possess.
II. Professional competence may be divided into two separate phases: attainment and maintenance.
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
55. An entity in respect of which a firm conducts an audit engagement.
a. Audit Client
b. Related Entity
c. Assurance Client

d. Network Firm

56. The avoidance of facts and circumstances that are so significant a reasonable and informed third party, having knowledge
of all relevant information, including any safeguards applied, would reasonably conclude a firm's or a member of the
assurance teams integrity, objectivity or professional skepticism had been compromised.
a. Independence of Mind
b. Independence of Appearance
c. Independence of Act
d. Independence of Kind
57. An entity under common control, ownership or management with the firm or any entity that a reasonable and informed
third party having knowledge of all relevant information would reasonably conclude as being part of the firm nationally or
internationally.
a. Audit Client
b. Related Entity
c. Listed Entity
d. Network Firm
58. An entity whose shares, stock or debt are quoted or listed on a recognized stock exchange, or are marketed under the
regulations of a recognized stock exchange or other equivalent body.
a. Audit Client
b. Related Entity
c. Listed Entity
d. Network Firm
59. A professional accountant shall not knowingly be associated with reports, returns, communications or other information
where the professional accountant believes that the information, which is a wrong statement
a. contains a materially false or misleading statement due to fraud or error unless the auditor modifies his report
b. contains a materially false or misleading statement unless the client agrees to correct the material misstatements
c. contains statements or information furnished recklessly unless client agrees to modify the audit report
d. omits or obscures information required to be included where such omission or obscurity would be misleading unless
the auditor modifies the report
60. Professional competence and due care is important to
a. attract more clients
b. ensure that clients or employers receive competent professional service
c. keep confidential information at all times
d. be aware of the necessary relevant technical, professional and business developments.
61. The following examples are firm wide safeguards in the work environment except
a. Policies and procedures to implement and monitor quality control of engagements.
b. Disclosing to those charged with governance of the client the nature of services provided and extent of fees charged.
c. A disciplinary mechanism to promote compliance with policies and procedures.
d. Policies and procedures that will enable the identification of interests or relationships between the firm or members
of engagement teams and clients.
62. I. The engagement period starts when the audit team begins to perform audit services.
II. The engagement period ends when the audit report is issued.
III. When the engagement is of a recurring nature, it ends at the earlier of the notification by either party that the
professional relationship has terminated or the issuance of the final audit report.
a. All of the above statements are true.
b. All of the above statements are false.
c. Only two of the above statements are true.
d. Only two of the above statements are false.
63. When the auditor is holding financial interest in the client, the existence and significance of any threat created shall be
evaluated on

I.
II.
III.
a.
b.
c.
d.

The role of the client holding the financial interest


Whether the financial interest is direct or indirect
The materiality of the financial interest
I or II only
II and III only
sI, II and III
I, II and III shall not have a bearing on the analysis.

64. I. If the loan or guarantee is made under normal lending procedures, terms and conditions, a self-interest threat would be
created that would be so significant that no safeguards could reduce the threat to an acceptable level.
II. If a loan to a firm from an audit client that is a bank or similar institution is made under normal lending procedures,
terms and conditions and it i s material to the audit client or firm receiving the loan, it may be possible to apply
safeguards to reduce the self-interest threat to an acceptable level.
a. Statement I is true
b. Statement I and II are true
c. Statement I and II are false
d. Statement II is true
65. The lending of staff by a firm to an audit client may create a self -review threat. Such assistance may be given, but only
for a short period of time and the firms personnel shall not be involved in
a. Providing non-assurance services that would not be permitted by the Code
b. Providing non-assurance services that would not be permitted
c. Either a or b
d. Neither a or b
66.
67. The following are circumstances where professional accountants are or may be required to disclose confidential
information or when such disclosure may be appropriate except:
a. Disclosure is permitted by law and is authorized by the client or the employer
b. Disclosure is required by accountant involved
c. There is a professional duty or right to disclose, when not prohibited by law
d. Disclosure is required by law
Examples of circumstances that may create threats for a professional accountant in public practice include, but are not limited
to:
68. Undue dependence on total fees from a client.
a. Self-interest
b. Self-review

c. Advocacy

d. Familiarity

e. Intimidation

69. Contingent fees relating to an assurance engagement.


a. Self-interest
b. Self-review
c. Advocacy

d. Familiarity

e. Intimidation

70. Accepting gifts or preferential treatment from a client, unless the value is clearly insignificant.
a. Self-interest
b. Self-review
c. Advocacy
d. Familiarity

e. Intimidation

71. Long association of senior personnel with the assurance client.


a. Self-interest
b. Self-review
c. Advocacy

d. Familiarity

e. Intimidation

72. Being threatened with dismissal or replacement in relation to a client engagement.


a. Self-interest
b. Self-review
c. Advocacy
d. Familiarity

e. Intimidation

73. Having prepared the original data used to generate records that are the subject matter of the engagement.
a. Self-interest
b. Self-review
c. Advocacy
d. Familiarity
e. Intimidation
74. Performing a service for a client that directly affects the subject matter of the assurance engagement.
a. Self-interest
b. Self-review
c. Advocacy
d. Familiarity

e. Intimidation

75. Promoting shares in a listed entity when that entity is a financial statement audit client.
a. Self-interest
b. Self-review
c. Advocacy
d. Familiarity

e. Intimidation

76. Being pressured to reduce inappropriately the extent of work performed in order to reduce fees.
a. Self-interest
b. Self-review
c. Advocacy
d. Familiarity

e. Intimidation

77. Reporting on the operation of financial systems after being involved in their design or implementation.
a. Self-interest
b. Self-review
c. Advocacy
d. Familiarity

e. Intimidation

Write A if both Statements are TRUE.


Write B if both Statements are FALSE.
Write C if Statement I is TRUE.
Write D if Statement II is TRUE.

78. I. The term information subject matter is used to mean the outcome of the evaluation or measurement of a subject
matter.
II. Assurance engagements may be assertion -based or direct reporting. In either case, they involve three separate parties: a
professional accountant in public practice, a responsible party and intended users.
79. I. Independence from the assurance client is required both during the engagement period and the period covered by the
information subject matter.
II. When the engagement is of a recurring nature, it ends at the later of the notification by the client that the professional
relationship has terminated or the issuance of the final assurance report.
80. I. A self-interest threat may be created if fees due from an assurance client remain unpaid for a long time, especially if a
significant part is not paid before the issue of the assurance report, if any, for the following period.
II. Fees are still regarded as being contingent even if established by a court or other public authority
81. I. A professional accountant in business shall intentionally mislead an employer as to the level of expertise or experience
possessed, and a professional accountant in business shall not fail to seek appropriate expert advice and assistance when
required.
II. A professional accountant in business shall neither manipulate information nor use confidential information for
personal gain.
82. I. Inducements may take various forms, including gifts, hospitality, preferential treatment, and inappropriate appeals to
friendship or loyalty.
II. A professional accountant in business may be in a situation where the professional accountant in business is expected,
or is under other pressure, to offer inducements to influence the judgment or decision-making process of an individual or
organization, or obtain confidential information.
83. I. Generally, advertising and publicity in any medium are acceptable provided It avoids frequent repetition of, and any
undue prominence being given to the name of the firm or professional accountant in public practice.
II. Referring to, using or citing actual or purported testimonials by third parties as part of advertising campaign shall be
allowed for accountants, provided done in good taste.
84. I. Publishing services in billboard (e.g., tarpaulin, streamers, etc.) advertisements is allowed provided it is professionally
dignified ad in good taste.
II. The use of the name of an international accounting firm affiliation/correspondence other than a notation that it is a
member/correspondent firm of that foreign firm shall not be allowed so as to imply that the foreign firm is practicing in
the Philippines.
85. I. No firm or CPA practitioner shall identify the name of a client or items of a clients business in advertising, public
relations or marketing material produced to promote his practice even if that client gives its written consent.
II. All advertisements must have prior review and approval in writing by the Risk Management Partner and Managing
Partner or their equivalents.
86. I. A professional accountant may be listed in a directory.
II. Professional accountants who author books or articles on professional subjects, may state their name and professional
qualifications and give the name of their organization and is allowed to give any information as to the services that firm
provides.
87. I. Appropriate newspapers or magazines may be used to inform the public of the establishment of a new practice, of
changes in the composition of a partnership of professional accountants in public practice, or of any alteration in the
address of a practice.
II. A professional accountant may develop and maintain a website in the Internet in such suitable length and style which
may also include announcements, press releases, publications and such other necessary and factual information like firms
name, partners/principals name and brief description of their educational attainment, brief listing of services, postal
address, telephone, fax and e-mail addresses.
88. I. In publications such as those specifically directed to schools and other places of education to inform students and
graduates of career opportunities in the profession, services offered to the public may be described in a businesslike way.
II. A professional accountant in public practice may publicize on behalf of clients, primarily for staff. However, the
professional accountant in public practice should ensure that the emphasis in the publicity is directed towards the
objectives to be achieved for the client.
89. I. The designation of any services provided by the practice as being specialist nature shall not be permitted in stationeries
and nameplates.
II. A process designed to provide an objective evaluation on the report issued, of the significant judgments the engagement
team made and the conclusions it reached in formulating the report is referred to as Engagement quality control review.
90. I. A listed entity is an entity whose shares, stock or debt are quoted or listed on a recognized stock exchange, or are
marketed under the regulations of a recognized stock exchange or other equivalent body.
II. A parent, child or sibling who is not an immediate family member is understood as Close family.