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RA 9298 Lecture Notes - Republic Act 9298 Accountancy Act
of the Philippines
Accountancy (University of San Carlos)
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LECTURE NOTES

Overview of RA 9298 and its IRR
The Republic Act No. 9298, including its implementing
rules and regulations, consists of:

five Articles (Rules);

with 44 Sections;

has three Annexes; and

was enacted into law on May 13, 2004.
Rule I – Title, Declaration of Policy, Objective and
Scope of Practice
Title – the “Philippine Accountancy Act of 2004”
The four sectors in the practice of accountancy shall as
much as possible be equitably represented in the
Board.
The APO shall submit its nominations with complete
documentation to the Commission not later than 60 days
prior to the expiry of the term of an incumbent chairman
or member with adequate documentation to show the
qualification and primary field of professional activity of the
nominee
If the APO fails to submit its own nominee(s), the
Commission in consultation with the Board shall submit to
the President a list of three nominees for each vacant
position.
Declaration of Policy
Qualifications of Members of the PRBOA
The State recognizes the importance of accountants in
nation building and development. Hence, it shall develop
and nurture competent, virtuous, productive and well
rounded professional accountants whose standards of
practice and service shall be excellent, qualitative, world
class and globally competitive through:

inviolable, honest, effective, and credible licensure
examinations; and

regulatory measures, programs and activities that
foster their professional growth and development.
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.
To become a member of the PRBOA, a person must meet
the following qualifications:
1. A natural-born citizen and resident of the Philippines
2. A duly registered CPA with at least 10 years of work
experience in any scope of practice of accountancy
3. Of good moral character and must not have been
convicted of crimes involving moral turpitude
4. Must not have any pecuniary interest, directly or
indirectly, in any institution (SCU) conferring an
academic degree or CPA review schools
5. Must not be a Director or Officer of the APO at the time
of his appointment
Term of Office



Scope of Practice
The practice of Accountancy (or “sector”) include:
a. Practice of Public Accountancy
b. Practice in Commerce and Industry

Only for a CPA for business with paid-up capital of
at least P5.0M and/or annual revenue of at least
P10.0M for functions involving supervision,
preparation of financial statements and
coordination with external audit.

Not result to deprivation of incumbents
c. Practice in Education/Academe

Dean or Chair of Accountancy shall be a CPA
d. Practice in the Government
Rule II – Professional Regulatory Board of
Accountancy (PRBOA or the “Board”)
The PRBOA and its Composition

Composed of a chairman and six members appointed
by the President from a list of three recommendees for
each position and ranked by the Commission (PRC),
from a list of five nominees for each position submitted
by the Accredited Professional Organization (APO).

Elect a vice-chairman from among its members for a
term of one year.

Three years for the chairman and members.
Any vacancy occurring within the term shall be filled up
for the unexpired portion of the term only (and is not
considered a complete term).
No person who has served two successive complete
terms shall be eligible for reappointment until the lapse
of one year.
No person shall serve in the Board for more than 12
years.
Compensation and Allowances of the Board
Comparable to that being received by the Chairman and
members of existing regulatory boards under the
Commission as provided for in the General Appropriations
Act.
Powers and Functions of the Board
The Board acts as a collegial body and shall exercise the
following powers, functions and responsibilities:
a. To prescribe and adopt the rules and regulations
necessary for carrying out the provisions of RA 9298;
b. To supervise the registration, licensure and practice of
accountancy in the Philippines;
c. To administer oaths in connection with the
administration of this Act;
d. To issue, suspend, revoke, or reinstate the Certificate
of Registration for the practice of the accountancy
profession;
e. To adopt an official seal of the Board;
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f.
To prescribe and/or adopt a Code of Ethics for the
practice of accountancy;
g. To monitor the conditions affecting the practice of
accountancy and adopt measures, including
promulgation of accounting and auditing standards,
rules and regulations and best practices;
h. To conduct an oversight into the quality of audits of
financial statements;
i. To investigate violations of this act and the rules and
regulations;
j. To make such investigations to determine whether any
person has violated RA 9298;
k. To issue a cease or desist order to any person,
association, partnership or corporation engaged in
violation of any provision of RA No. 9298;
l. To punish for contempt of the Board, both direct and
indirect, in accordance with the pertinent provisions of
and penalties prescribed by the Rules of Court;
m. To prepare, adopt, issue or amend the syllabi of the
subjects for examinations;
n. To ensure that schools and other educational
institutions comply with the policies, standards and
requirements of the course prescribed by CHED; and
o. To exercise such other powers deemed necessary.
Note that the Board’s decisions are subject to review and
approval of the Commission, except for administrative
cases.
Accounting and Auditing Standard Setting Council
The Commission upon the recommendation of the Board
shall within 90 days from the effectivity of this IRR, create
an accounting standard setting body, the “FRSC”, and an
auditing standard setting body, the “AASC.”
The Chairman and the members of the FRSC and AASC
shall have a term of three years renewable for another
term.
The Commission, upon the recommendation of the Board,
shall within 60 days from the effectivity of this IRR create
an ETC.
The term of office of the chairman and members of ETC is
three years, renewable for another term.
Chairman
Board of Accountancy
APO (PICPA):
Public Practice
Commerce and Industry
Academe/Education (Public & Private)
Government
Total
ETC
1
1
1
1
2
1
7
Administrative Supervisions of the Board, Custodian of its
Records, Secretariat and Support Services
The Board shall be under the administrative supervision of
the Commission.
All records of the Board, including applications for
examination, examination questions , answer sheets, and
other records and documents pertaining to the CPA
licensure examinations, and administrative and other
investigative cases conducted by the Board shall be under
the custody of the Commission.
The Commission shall designate the Secretary of the Board
and shall provide the secretariat and other support
services to implement the provisions of RA No. 9298.
Grounds for Suspension or Removal of Members of the
Board
Any member of any existing accounting and auditing
standard setting council shall not be disqualified from
being appointed.
Chairman (FRSC: Any sector; AASC: Public
Accountancy)
Board of Accountancy
Securities and Exchange Commission
Bangko Sentral ng Pilipinas
Commission on Audit
Bureau of Internal Revenue
A major organization composed of
preparers and users of financial statements
(FINEX)
An association or organization of CPAs in
active public practice of accountancy
APO (PICPA):
Public Practice (AASC: Small, medium & big
prac.)
Commerce and Industry
Academe/Education
Government
Total
Education Technical Council (ETC)
FRSC
AASC
1
1
1
1
1
1
1
1
1
1
1
1
The President, upon the recommendation of the
Commission, after due process, may suspend or remove
any member on the following grounds:

Neglect of duty or incompetence;

Violation or tolerance of any violation of this Act and its
IRR or the CPA’s Code of Ethics and the professional
standards of practice for CPAs;

Final judgment of crimes involving moral turpitude;
and

Manipulation or rigging of the CPA’s licensure
examination results, disclosure of secret and
confidential information in the examination questions
prior to the conduct of the said examination or
tampering of grades.
Annual Report
1
2
6
2
2
2
15
1
1
1
15
The Board shall, at the close of each calendar year, submit
an annual report to the President of the Philippines through
the Commission giving a detailed account of its
proceedings and accomplishments during the year and
making recommendations for the adoption of measures
that will upgrade and improve the conditions affecting the
practice of accountancy in the Philippines.
Rule III - Examination, Registration and Licensure
The Certified Public Accountant Examinations
All applicants for registration for the practice of
accountancy shall be required to undergo a licensure
examination to be given by the Board in such places and
dates as the Commission may designate.
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The places/venues and dates of examinations shall be
included in the Schedule of Professional Licensure
Examinations for the year issued by the Commission.
which he/she failed shall be counted as one complete
examination.
Oath
Qualifications of Applicants for Examinations
Any person applying for examination shall establish the
following requisites to the satisfaction of the Board that
he/she:
a. Filipino citizen
b. Of good moral character
c. Holder of the degree of BSA conferred by a school,
college, academy or institute duly recognized and/or
accredited by the CHED or other authorized
government offices
d. Has not been convicted of any criminal offense
involving moral turpitude
All successful candidates in the examination shall be
required to take an oath of profession before any member
of the Board or before any government official authorized
by the Commission or any person authorized by law to
administer oaths upon presentation of proof of his/her
qualification, prior to entering upon the practice of the
profession.
An oath shall also be required for CPAs admitted in the
practice of accountancy without examination under
reciprocity or other international agreements.
Issuance of Certificate of Registration (CoR) and
Professional Identification Card (PIC)
Scope of Examination
The licensure examination for CPAs shall cover the
following subjects:
a. Theory of Accounts
b. Business Law and Taxation
c. Management Services
d. Auditing Theory
e. Auditing Problems
f. Practical Accounting Problems I
g. Practical Accounting Problems II
A CoR shall be issued to examinees who pass the licensure
examination, or are admitted without examination under
reciprocity subject to payment of fees prescribed by the
Commission.
The Board, subject to the approval of the Commission,
may change any of the subjects and their syllabi, and add
new ones, not be more often than every three years.
Rating in the Licensure Examination
A PIC bearing the registration number, date of issuance,
expiry date, duly signed by the chairperson of the
Commission. Provided, that the registrant has paid the
prescribed fee for the annual registration (reissuance or
renewal) for three years.

Roster of Certified Public Accountants


General average of 75%, with no grades lower than
65% in any subject.
If a candidate obtains 75% and above in at least a
majority of subjects, he/she shall receive a conditional
credit for the subjects passed (remaining subjects to
be taken within two years).
If the candidate fails to obtain at least a general
average of 75% and a rating of at least 65% in each of
the subjects reexamined, he/she shall be considered as
failed in the entire examination.
The CoR shall bear the signature of the Chairperson of the
Commission and the Chairman and Members of the Board,
stamped with the official seal of the Commission and of the
Board.
A roster showing the names and place of business of all
registered CPAs shall be prepared and updated by the
Board, and copies thereof shall be made available to any
party as may be deemed necessary.
The preparation of this roster may be delegate to the APO,
and the Board and/or the Commission may adopt the
APO’s report as it may deem fit;
Posting of the roster at the internet shall be deemed
compliance with this requirement.
Report of Ratings
The Board shall submit to the Commission the ratings
obtained by each candidate within ten (10) calendar days
after the examination, unless extended for just cause.
Upon the release of the results of the examination, the
Commission shall send by mailing the rating received by
each examinee at his/her given address using the mailing
envelope submitted during the examination. Provided, that
the report of rating may be distributed to the successful
examinees during their mass oath taking as new registered
CPAs.
Failing Candidates to Take Refresher Course
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 24 units of subjects given in the
licensure examination.
The examination in which the candidate was conditioned
together with the removal examination on the subject in
Indication of CoR, PIC and Professional Tax Receipt
The CPA shall be required to indicate the numbers of
his/her CoR and PIC with its date of issuance and the
duration of validity, including the PTR No. on the
documents he/she signs, uses or issues in connection with
the practice of his/her profession.
Refusal to Issue CoR and PIC
The Board shall not register and issue a CoR and PIC to
any successful examinee (with due process):

convicted by a court of competent jurisdiction of a
criminal offense involving moral turpitude; or

guilty of immoral and dishonorable conduct; or of
unsound mind; or

has falsely sworn or misrepresented himself/herself in
his/her application for examination.
Registration shall not be refused and a name shall not be
removed from the roster of CPAs on conviction for a
political offense or for an offense which shall not disqualify
a person from practicing accountancy.
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Suspension and Revocation of CoR and PIC and
Cancellation of Special Permit
Partnerships may be carried as a general partnership (GP)
or a limited liability partnership (LLP).
The Board shall have the power to suspend or revoke the
practitioner’s CoR and PIC or suspend him/her from the
practice of his/her profession or cancel his/her special
permit for any of the causes or grounds

convicted by a court of competent jurisdiction of a
criminal offense involving moral turpitude; or

guilty of immoral and dishonorable conduct; or of
unsound mind; or

has falsely sworn or misrepresented himself/herself in
his/her application for examination; or

unprofessional or unethical conduct, malpractice,
violation of any of the provisions of RA No. 9298 , and
its IRR, the CPA’s Code of Ethics and professional
standards of practice for CPAs.
The SEC shall not register any corporation organized for
the practice of public accountancy.
Suspension/revocation of the CoR and PIC shall not
prejudice prosecution for criminal liabilities and meted the
penalties under the Revised Penal Code.
Commerce
and industry
Academe/
Education
Government
Reinstatement, Reissuance and Replacement of Revoked
or Lost Certificates
Meaningful Experience
Significant involvement in general
accounting, budgeting, tax administration,
internal auditing, liaison with external
auditors, representing his/her employer
before gov’t agencies on tax and matters
related to accounting or any other related
functions; or
teaching for at least three trimesters or
two semesters accounting related
subjects. The accumulated teaching
experience on these subjects shall not be
less than three school years; or
significant involvement in general
accounting, budgeting, tax administration,
internal auditing, liaison with the
Commission on Audit or any other related
functions
At least one year as audit assistant and
at least two years as auditor in charge of
audit engagement covering full audit
functions of significant clients.
The Board may, after the expiration of two years from the
date of revocation of a CoR and upon application, and
after being convinced of applicant’s remorse and
rehabilitation, reinstate the validity of a revoked certificate
of registration and may exempt the applicant from taking
another examination.
Public practice
A new CoR to replace lost, destroyed, or mutilated
Certificate may be issued, subject to the rules promulgated
by the Board and the Commission, upon payment of the
required fees.
Rule IV – Practice of Accountancy
Confidential and privileged and remain the property of
such CPA in the absence of a written agreement between
the CPA and the client, to the contrary unless such
documents are required to be produced through subpoena
issued by any court, tribunal, or government regulatory or
administrative body in accordance with Philippine laws.
Prohibition in the Practice of Accountancy
Accredited Professional Organization
No person shall practice accountancy in this country, or
use the title “Certified Public Accountant”, or use the
abbreviated title “CPA” or display or use any title, sign,
card, advertisement, or other device to indicate such
person practices or offers to practice accountancy, or is a
certified public accountant, unless such person shall have
received from the Board a CoR and be issued a PIC or a
valid temporary/special permit duly issued to him/her by
the Board and the Commission.


Vested Rights: CPAs Registered When this Law is Passed
All CPAs registered at the time this law takes effect shall
automatically be registered under the provisions hereof,
subject however, to the provisions herein set forth as to
future requirements.
Certificates of Registration held by such persons in good
standing shall have the same force and effect as though
issued after the passage of this Act.
Limitation of the Practice of Public Accountancy
Single practitioners and partners of partnership organized
for the practice of public accountancy shall be registered
CPAs in the Philippines;
Certificate of Accreditation shall be issued to CPAs in public
practice after a minimum of three years meaningful
experience;
Ownership of Working Papers


Known as the PICPA
Registered with the SEC as a non-profit corporation
and recognized by the Board and the Commission.
Recognized by the Commission as the APO on
10/2/1975 per Acc. No. 15. Certificate of Accreditation
(CoA) once every three years.
With 15 national directors apportioned according to
sectors in the four geographic areas (eg. NCR, Luzon,
Visayas and Mindanao) based on the ratio of latest
available number of members in good standing from
those areas;
The PICPA’s CoA shall be cancelled or suspended by the
Commission upon recommendation by the Board after due
process if:

It has ceased to possess any of the qualifications for
accreditation.

It no longer serves the best interest of the CPAs.

It did not achieve its plan to enlist into active
membership within three years, majority of the CPAs
in the practice of accountancy.

It has committed acts inimical to its members and to
the profession.

It has not renewed its CoA after a lapse of an
unreasonable period.

It has not submitted the required audited FSs.
Accreditation to Practice Public Accountancy
Within 90 days from effective date of IRR, Individual CPAs,
firms and partnerships of CPAs engaged in the practice of
public accountancy, including the partners and staff
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members thereof, shall register with the Commission and
the Board.
The Board, upon approval by the PRC, shall create a
Council within thirty (30) days from the effectivity of this
resolution.
The registration shall be valid for a period of three years
and may be renewed every three years on or before
September 30 on the year of expiry. The registration of
applicants approved during any month of the year shall
expire on December 31 on the third year following its
approval.
PRC CPE Council
Chairman (from BOA)
1st Member (President or Officer of PICPA)
2nd Member (Academician)
Total
Name of the Individual CPA, Firm or Partnership
Common Sources of CPE Credit Units
Type
Individual CPA
Seminar/Convention:
Participant
Resource speaker
Panelist/reactor
Facilitator/moderator
Master’s Degree
Firms
Partnerships
Basis
BOA and PRC
Registered Name
DTI Registered
Name
SEC Registered
Name
Example
“Juan de la Cruz,
CPA”
“Juan de la Cruz
and Associates”
“Cruz, Isidro,
Martin, and
Company"
Doctoral Degree
Not allowed firm names include:

fictitious name;

indicates specialization; or

is misleading as to the type of organization
(proprietorship or partnership).
Inventions
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
years after becoming a sole proprietor.
Quality Review Committee




QRC Composition
Chairman
Board of Accountancy
APO (PICPA):
Public Practice
Commerce and Industry
Academe/Education
Government
Total
1
1
2
1
1
1
7
1 CU per hour
5 CU per hour
3 CU per hour
2 CU per hour
1 CU per academic unit;
additional 30 CU upon
completion
2 CU per academic unit;
additional 45 CU upon
completion
10-30 CU per invention
Note: refer to Annex C of IRR of RA 9298 for the complete
list of sources of CPE credit units.
Exemption from CPE Requirement
a.
b.
Conducts quality review on applicants for registration
to practice public accountancy
Appointed by the Commission upon the
recommendation of the Board in coordination with the
APO
A term of three years renewable for another term
Recommends to the Board the revocation of the
Certificate of Registration and the professional
identification card
1
1
1
3
Permanent Exemption

Upon reaching the age of 65 years old.
Temporary Exemption

Working or practicing his/her profession or
furthering his/her studies abroad shall be
temporarily exempted 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.
Sanctions applicable to CPAs
Unless otherwise exempted, registered CPAs in the
practice of accountancy who have not completed the CPE
requirements provided herein shall not be allowed to
renew their professional licenses.
Those who failed to renew their professional licenses for a
period of five continuous years from initial registration, or
from last renewal date shall be declared delinquent and
shall, after due notice, through the website and publication
in the newsletters of PICPA or any newspaper of general
circulation, be dropped from the roster of CPAs.
Continuing Professional Education (CPE) Program
Seal and Use of Seal
Continuing professional education (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 professional’s technical skills and competence.
All registered CPAs shall obtain and use a seal of a design
prescribed by the Board bearing the registrant’s name,
registration number and title.
The total CPE credit units for registered accounting
professionals shall be 60 credit units for three years,
provided that a minimum of 15 credit units shall be earned
in each year.
Any excess credit units in one year may be carried over to
the succeeding years within the three-year period. Excess
credit units earned shall not be carried over to the next
three-year period except credit units earned for doctoral
and master’s degrees.
The auditor’s reports shall be stamped with said seal,
indicating therein his/her current Professional Tax Receipt
(PTR) number, date/place of payment when filed with
government authorities or when used professionally.
Circular in form with a smaller circle within and in the
upper portion of the space between the circles shall be
engraved the name of the individual CPA, firm or
partnership as the case maybe, the lower portion thereof
shall be engraved the CPA Registration Number of the
individual CPA, proprietor of the firm and the signing
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partner of the partnership and in the middle of the
smaller circle shall be engraved the letters “CPA”.
Affixing the CPA’s seal and signature is an indication of
compliance by the CPA of the requisite accounting and
auditing standards and rules.
Foreign Reciprocity
Subjects or citizens of foreign countries may be allowed to
practice Accountancy in the Philippines in accordance with
the provisions of existing laws, international treaty
obligations including mutual recognition agreements
entered into by the Philippine government with other
countries.
Provided, he files an application and by submitting the
necessary documents provided for in this sections.
Coverage of Temporary/Special Permits
May be issued by the Board subject to the approval of the
Commission to the following persons:

A foreign CPA called for consultation or for a specific
purpose essential for the development of the country.
His/her practice shall be limited only for the particular
work that he/she is being engaged and there is no
Filipino CPA qualified;

A foreign CPA engaged as professor, lecturer or critic
in fields essential to accountancy education and is
confined to teaching only; and

A foreign CPA who is an internationally recognized
expert or with specialization in any branch of
accountancy and his/her service is essential for the
advancement of accountancy.
Enforcement of RA No. 9298 and its IRR
Primary duty of the Commission and the Board to
effectively enforce RA No. 9298 and its IRR.
All duly constituted law enforcement agencies and officers
of the government or any political subdivisions shall render
assistance in enforcing the provisions of RA No. 9298 and
this IRR and to prosecute any person in violation.
The Secretary of Justice or his duly designated
representative shall act as legal adviser to the Commission
and the Board and shall render legal assistance as may be
necessary in carrying out the provisions of RA No. 9298
and this IRR.
Funding Provision
The chairperson of the Commission shall immediately
include in the Commission’s programs the implementation
of RA No. 9298 and this IRR the funding of which shall be
included in the annual General Appropriations Act.
Provided, That the amount necessary to carry out the
initial implementation of RA No. 9298 shall be charged
against the current year’s appropriation of the
Commission. Thereafter, sums as maybe necessary for the
continued implementation of RA No. 9298 shall be included
in the succeeding General Appropriations Act (GAA).
Transitory Provision
The incumbent chairman and members of the Board shall
continue to serve in their respective positions without the
need of new appointments, not be disqualified for
appointment.
All graduates with a Bachelor’s Degree, major in
Accounting shall be allowed to take the CPA Licensure
Examination within two (2) years from the effectivity of RA
No. 9298 (or until May, 2006).
Rule V – Penal and Final Provisions
Penal Provision
Any person who shall violate any of the provisions of RA
No. 9298 or this IRR as promulgated by the Board subject
to the approval of the Commission, shall, upon conviction,
be punished by:

a fine of not less than P50,000.00 or

by imprisonment for a period not exceeding two years
or

both.
Separability Clause
If any clause, provision, paragraph or part of RA No. 9298
and this Implementing Rules and Regulations shall be
declared unconstitutional or invalid, such judgment shall
not affect, invalidate or impair any other part hereof, but
shall be merely confined to the clause, provision,
paragraph or part directly involved in the controversy in
which such judgment has been rendered.
Implementing Rules and Regulations
Repealing Clause
Within ninety (90) days after the effectivity of RA No.
9298, the Board, subject to the approval of the
Commission and in coordination with the APO, shall adopt
and promulgate such rules and regulations to carry out the
provisions of RA No. 9298 and which shall be effective
fifteen (15) days following their publication in the Official
Gazette or in any major daily newspaper of general
circulation.
Interpretation of RA No. 9298 and its IRR
Nothing in the RA No. 9298 and this Implementing Rules
and Regulations shall be construed to effect or prevent the
practice of any other legally recognized profession.
Any rule and regulation or resolution or part/s thereof
inconsistent with the provisions of this Implementing Rules
and Regulations are hereby repealed or modified
accordingly.
Effectivity
RA 9298 shall take effect after fifteen (15) days following
its publication in the Official Gazette or in any major daily
newspaper of general circulation.
IRR was promulgated in September 2004 (within 90 days
from the effective date of RA 9298) and took effect after
fifteen (15) days following its publication in the Official
Gazette or in any major daily newspaper of general
circulation.
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EXCEL PROFESSIONAL SERVICES, INC.
MULTIPLE CHOICE
SECTIONS APPLICABLE TO ALL CPAs
1. Republic Act No. 9298 is also known as
a. Accountancy Law of 2004
b. Accreditation of Accounting Teachers
c. Philippine Accountancy Act of 2005
d. Philippine Accountancy Act of 2004
2. Under Section 2 of RA 9298, the State recognizes the
importance of accountants in nation building and
development. Hence, it shall develop and nurture
competent, virtuous, productive and well rounded
professional accountants whose standards of practice
and service shall be excellent, qualitative, world class
and globally competitive through
I. Inviolable, honest, effective and credible licensure
examinations
II. Regulatory measures, programs and activities that
foster their professional growth and development
a. I only
c. I and II
b. II only
d. Neither I nor II
3. The objectives of the Philippine Accountancy Act of 2004
are the following, except:
a. Standardization and regulation of accounting
education.
b. Integration of accountancy profession
c. Examination for registration of certified public
accountants.
d. Supervision, control and regulation of the practice of
accountancy.
4. The following statements relate to the Board of
Accountancy and its composition. Which statement is
incorrect?
a. The Board consists of a Chairman and six members
b. The Chairman and members are appointed by PRC
upon recommendation of APO
c. The Board shall elect a vice-chairman from among
its members.
d. The four(4) sectors in the practice of accountancy
shall as much as possible be equitably represented
in the Board
5. The APO shall submit its nominations with complete
documentation to the Commission not later than
_____ prior to the expiry of the term of an incumbent
chairman or member.
a. 30 days
c. 90 days
b. 60 days
d. 120 days
6. Which of the following is incorrect regarding the
qualifications
of
members
of
the
Board
of
Accountancy?
a. Must be a natural-born citizen and resident of the
Philippines
b. Must be a duly registered Certified Public
Accountant with at least fifteen (15) years of work
experience in any scope of 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 where
review classes in preparation for the licensure
examination are being offered or conducted
Page 7 of 13
7. Which of the following statements is incorrect
according to Section 7 of the Philippine Accountancy
Act of 2004 (RA 9298)?
a. The Chairman and the members of the Professional
Regulatory Board of Accountancy (PRBOA) shall
hold office for a term of three (3) years.
b. No person who has served two(2) successive terms
shall be eligible for reappointment until the lapse
of one (1) year.
c. Any vacancy occurring within the term of a
member shall be filled up for the unexpired portion
of the term only.
d. Appointment to fill up an unexpired term is
considered as a complete term.
8. No person shall serve the Professional Regulatory
Board of Accountancy for more than
a. 3 years
c. 9 years
b. 6 years
d. 12 years
9. The following are the powers, functions and
responsibilities of the Board of Accountancy (also
known as the Board)
a. To prescribe and/or adopt a Code of Ethics for the
practice of accountancy
b. To prescribe and adopt the rules and regulations
necessary for carrying out the provisions of RA
9298
c. To prepare, adopt, issue or amend the syllabi of
the subjects for examinations in consultation with
the academe, determine and prepare questions for
the licensure examination which shall strictly be
within the scope of the syllabi of the subjects for
examinations as well as administer, correct and
release the results of the licensure examinations
d. All of the above
10. The Board shall exercise the following
functions and responsibilities:
a.
To supervise the registration,
licensure and practice of
accountancy
Yes
To issue, suspend, revoke, or
reinstate the certificate of
registration for the
practice of accountancy
Yes
To monitor the conditions
affecting the practice of
accountancy
Yes
To conduct an oversight
into the quality of audits of
financial statements
Yes
To ensure that all HEIs
including review centers
comply with the requirements
of CHED or other authorized
government offices
Yes
specific powers,
b.
c.
d.
Yes
Yes
Yes
No
Yes
Yes
Yes
No
Yes
No
Yes
No
Yes
No
Yes
11. The following were created to assist the BOA in
carrying out its powers and functions, except
a. Auditing and Assurance Standards Council
b. Financial Reporting Standards Council
c. Education Technical Council
d. Accredited National Professional Organization of
CPAs
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12. The creation of FRSC and AASC is intended to assist
the BOA in carrying out its function to
a. To monitor the conditions affecting the practice of
accountancy and adopt such measures, rules and
regulations and best practices as may be deemed
proper for the enhancement and maintenance of
high professional, ethical, accounting and auditing
standards.
b. To supervise the registration, licensure and
practice of accountancy in the Philippines.
c. To prescribe and adopt the rules and regulations
necessary for carrying out the provisions of RA
9298.
d. To prepare, adopt, issue or amend the syllabi of
the subjects for examinations.
13. Applications for examination, examination questions,
answer sheets, and other records and documents
pertaining to the CPA licensure examinations shall be
under the custody of the
a. PRC
c. PICPA
b. BOA
d. National Library
14. Which of the following is not a ground for suspension
or removal of members of BOA?
a. Neglect of duty or incompetence
b. Intolerance of any violation of RA 9298
c. Final judgment of crimes, involving moral turpitude
d. Rigging of the certified public accountant’s
licensure examination results
15. Which of the following is not a requisite in applying for
the CPA licensure examinations?
a. Natural-born citizen of the Philippines.
b. Good moral character.
c. Holder of the degree of Bachelor of Science in
Accountancy.
d. Has not been convicted of any criminal offense
involving moral turpitude.
16. The Board, subject to the approval of the Commission,
may revise or exclude any of the subjects and their
syllabi, and add new ones as the need arises. Provided
that the change shall not be more often than every
a. 2 years
c. 4 years
b. 3 years
d. 5 years
17. The following statements relate to CPA examination
ratings. Which statement is incorrect?
a. To pass the examination, candidates should obtain
a general weighted average of 75% and above,
with no rating in any subject less than 65%.
b. Candidates who obtain a rating of 75% and above
in at least four subjects shall receive a conditional
credit for the subjects passed.
c. Conditioned candidates shall take an examination
in the remaining subject(s) within three years from
the preceding examination.
d. Candidates who fail in two (2) complete CPA
examinations may be allowed to take examinations
a third time provided he or she will comply with
Sec. 18 of RA 9298.
18. Any candidate who fails in two (2) complete Certified
Public Accountant 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 ____ of subject given in the licensure
examination.
a. 12 units
c. 24 units
b. 21 units
d. 60 units
Page 8 of 13
19. The Board shall submit to the Commission the ratings
obtained by each candidate within ____ calendar days
after the examination, unless extended for just cause.
a. 10
c. 20
b. 15
d. 30
20. According to Section 20 of RA 9298, a Professional
Identification Card bearing the registration number,
date of issuance, expiry date, duly signed by the
chairperson of the PRC, shall likewise be issued to
every registrant renewable every
a. One (1) year
c. Three (3) years
b. Two (2) years
d. Five (5) years
21. The BOA shall 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. Having an unsound mind
c. Guilty of immoral and dishonorable conduct
d. All of the above
22. No person shall practice accountancy in the Philippines
or use the abbreviated title “CPA” unless such person
shall received from the Board a Certificate of
Registration and be issued a professional identification
card or a valid temporary/special permit duly issued to
him/her by the Board and the Commission
A person who is not a citizen of the Philippines 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
provisions of law, the country of which he/she is a
citizen, subject or national admits citizens of the
Philippines to the practice of the same profession
without restriction.
a. True, False
c. False, False
b. True, True
d. False, True
23. The Board shall have the power, upon due notice and
hearing, to
suspend or revoke the practitioner’s
certificate of registration and professional identification
card or suspend him/her from the practice of his/her
profession or cancel his/her special permit for any of
the causes or grounds
I. Convicted by a court of competent jurisdiction of a
criminal offense involving moral turpitude
II. Having an unsound mind
III. Guilty of immoral and dishonorable conduct
IV. Unprofessional or unethical conduct, malpractice
V. Violation of any of the provisions of this Act, and
its implementing rules and regulations, the
Certified Public Accountant‘s Code of Ethics and the
technical and professional standards of practice for
certified public accountants.
a. I, II and III only
b. I, II, IV and V only
c. I, II, III and IV only
d. I, II, III, IV and V
24. A CPA whose certificate have been revoked may be
reinstated if he has acted in exemplary manner and
has not committed any illegal, immoral or dishonorable
conduct for a period not less than
a. One year
b. Two years
c. Five years
d. The period depends on the seriousness of his
offense
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25. The Continuing Professional Education (CPE) program
mentioned in the IRR shall have the following
objectives, except:
a. To promote the general welfare of the public
b. To provide and ensure the continuous education of
accountancy students with the latest trends in the
profession brought about by modernization and
scientific and technological advancement
c. To raise and maintain the professionals capability
for delivering professional services
d. To attain and maintain the highest standards and
quality in the practice of the profession
26. Which statement is(are) correct regarding CPE
requirements for renewal of professional license?
I. 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.
II. Any excess credit units in one year may be carried
over to the succeeding years within the three-year
period.
III. Excess credit units earned shall not be carried over
to the next three-year period without exception.
IV. 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 has been out of the country
for at least two years immediately prior to the date
of renewal.
V. A registered professional shall be permanently
exempted from CPE requirements upon reaching
the age of 60 years old.
a. I, II and III only
b. I and IV only
c. I, II and IV only
d. I, II, and V only
27. How many credit units per hour is (are) earned by a
CPA who serves as a resource speaker at a CPE
seminar?
a. 1 CU per hour
b. 5 CU per hour
c. 3 CU per hour
d. 2 CU per hour
28. A CPA must earn at least 60 credit units for 3 years,
with a minimum of 15 credit units earned per year.
Excess credit units shall not be carried over to the next
three-year period except:
a. credit units earned for servicing as a professorial
chair
b. credit units earned for authoring an article of
national significance
c. credit units earned for an invention of significance
of the profession
d. credit units earned for doctoral or masteral
degrees
29. The PRC-CPE Council shall be composed
chairperson and three (3) members.
of
a
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.
a. True, False
b. True, True
c. False, False
d. False. True
Page 9 of 13
30. Special/temporary permit may be issued by the Board
of Accountancy subject to the approval of PRC and
payment of the fees the latter has prescribed and
charged thereof to the following persons
a. A foreign CPA called for consultation or for a
specific purpose which, in the judgment of BOA is
essential for the development of the country
b. A foreign CPA engaged as professor, lecturer or
critic in fields essential to the accountancy
education
in
the
Philippines
and
his/her
engagement is confined to teaching only.
c. A foreign CPA who is an internationally recognized
expert or with specialization in any branch of
accountancy and his/her service is essential for the
advancement of accountancy in the Philippines.
d. All of the above
31. According to the Philippine Accountancy Act of 2004
(RA 9298), any person who shall violate RA 9298 or
any of its implementing rules and regulations as
promulgated by the Board of Accountancy subject to
the approval of the PRC, shall, upon conviction, be
punished by a fine
a. not less than fifty thousand pesos (P50,000), or by
imprisonment for a period not exceeding three (3)
years, or both
b. not less than one hundred thousand pesos
(P100,000), or by imprisonment for a period not
exceeding two (2) years, or both
c. not less than fifty thousand pesos (P50,000), or by
imprisonment for a period not exceeding twoh (2)
years, or both
d. not less than one hundred fifty thousand pesos
(P150,000), or by imprisonment for a period not
exceeding three (3) years, or both
32. Within __(I)___ days after the effectivity of RA 9298,
the Board subject to the approval of PRC and in
coordination with APO, shall adopt and promulgate
such rules and regulations to carry out the provisions
of RA 9298 and which shall take effect __(II)____ days
following its publication in the Official Gazette or in any
major daily newspapers of general circulation?
I
II
a.
90
30
b.
60
15
c.
90
15
d.
30
45
33. The primary duty to enforce the provisions of RA 9298
and its IRR rests with
a. The PRC
c. The PRC and BOA
b. The BOA
d. The AASC
SECTIONS APPLICABLE TO CPAs IN COMMERCE AND
INDUSTRY
34. When involved in decision making requiring professional
knowledge in the science of accounting, as well as the
accounting aspects of finance and taxation or when
he/she represents his/her employer before government
agencies on tax and other matters relating to
accounting
a. Practice in Commerce and Industry
b. Practice in Education
c. Practice in Government
d. Practice of Public Accountancy
35. 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
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related functions shall be occupied only by a duly
registered CPA. Provided
I. That the business or company where the above
position exists has a paid-up capital of at least
P5,000,000 and/or annual revenue of at least
P10,000,000
II. The above provision shall apply only to persons to
be employed after the effectivity of the
Implementing Rules and Regulations of RA 9298
III. The above provision shall not result to deprivation
of the employment of incumbents to the position
a. I, II and III
b. I and II
c. II and III
d. I and III
SECTIONS
APPLICABLE
TO
CPAs
IN
EDUCATION/ACADEME
36. When he or she is involved in teaching of accounting,
auditing, management advisory services, accounting
aspect of finance, business law, taxation and other
technically related subjects.
a. Practice in Commerce and Industry
b. Practice in Education
c. Practice in Government
d. Practice of Public Accountancy
37. A body that is created to assist the BOA in the
attainment of the objective of continuously upgrading
the accountancy education in the Philippines to make
the Filipino CPAs globally competitive
a.
b.
c.
d.
PICPA
Education Technical Council (ETC)
Quality Assurance Review Department (QARD)
Auditing and Assurance Standards Council (AASC)
38. ETC is composed of
a. 6 members including the chairman
b. 7 members including the chairman
c. 10 members including the chairman
d. 15 members including the chairman
SECTION APPLICABLE TO CPAs IN GOVERNMENT
39. When he/she is appointed in an accounting professional
group in government or in a government-owned and/or
controlled corporation, including those performing
proprietary functions, where decision-making requires
professional knowledge in the science of accounting
a. Practice in Commerce and Industry
b. Practice in Education
c. Practice in Government
d. Practice of Public Accountancy
SECTIONS APPLICABLE TO CPAs IN PUBLIC
PRACTICE
40. Practice of Public Accountancy shall constitute in a
person:
a. When involved in decision making requiring
professional knowledge in the science of accounting,
as well as the accounting aspects of finance and
taxation or when he/she represents his/her
employer before government agencies on tax and
other matters relating to accounting.
b. When he/she is appointed in an accounting
professional group in government or in a
government-owned and/or controlled corporation,
including those performing proprietary functions,
where
decision-making
requires
professional
knowledge in the science of accounting
c. When he or she is involved in teaching of
accounting,
auditing,
management
advisory
Page 10 of 13
d.
services, accounting aspect of finance, business law,
taxation and other technically related subjects.
When a person is skilled in the knowledge, science
and practice of accounting and as a qualified person
to render professional services as a CPA
41. Who is not permitted by law to practice public
accountancy?
a. A corporation whose stockholders are all CPAs
b. A partnership of CPAs
c. A solo practitioner
d. A partnership of CPAs, with some non-CPA staff
42. All registered CPAs whose names appear in the roster
of CPAs shall be united and integrated through their
membership in a one and only registered and
accredited national professional organization of
registered and licensed CPAs, which shall be registered
with the SEC as a nonprofit corporation and recognized
by the Board subject to the approval of the
commission.
CPAs, firms and partnerships of CPAs engaged in the
practice of public accountancy, including partners and
staff members thereof, shall register with the
Commission and the Board.
a. True, False
c. False, True
d. True, True
b. False, False
43. A CPA shall not practice under a firm name that
includes or indicates the following except
a. Fictitious name
b. Specialization
c. Misleading as to the type of the organization
d. Name(s) of past partner(s) in the firm name of
successor partnership
44. Under the IRR of RA 9298, if a partner in a twomember partnership dies, the surviving partner may
continue to practice as an individual under the existing
firm title which includes the deceased partner’s name
a. For a period of time not to exceed five years.
b. For a period of time not to exceed two years.
c. Indefinitely.
d. Until the partnership payout to the deceased
partner’s estate is terminated.
45. A meaningful experience shall be considered as
satisfactory compliance with the requirements of
Section 28 if it is earned in 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.
Provided the accumulated
teaching experience on these subjects shall not be less
than three (3) school years.
A meaningful experience shall be considered as
satisfactory compliance with the requirements of
Section 28 if it is earned in Public Practice and shall
include at least one year as audit assistant and at least
two years as auditor in charge of the audit
engagement covering full audit functions of significant
clients.
a. True, False
c. False, False
b. False, True
d. True, True
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46. Individual CPAs, Firms or Partnerships of CPAs,
including partners and staff members thereof shall
register with the BOA and the PRC. If the application
for registration of AB and Co., CPAs was approved on
August 30, 2011, it shall file for renewal on or before
a. September 30, 2013
c. December 31, 2013
b. September 30, 2014
d. August 30, 2014
47. Individual CPAs, Firms or Partnerships of CPAs,
including partners and staff members thereof shall
register with the BOA and the PRC. If the application
for registration of AB and Co., CPAs was approved on
August 30, 2011, the registration will expire on
a. Sept. 30, 2013
c. Dec. 31, 2013
b. Dec. 31, 2014
d. Aug. 30, 2014
48. Individual CPAs, Firms or Partnerships of CPAs,
including partners and staff members thereof shall
register with the BOA and the PRC. If Emong and
Bobads, CPAs renewed its accreditation on August 30,
2011, it shall file for renewal on or before
a. September 30, 2013
c. December 31, 2013
b. September 30, 2014
d. August 30, 2014
49. The “CPA Registration Number” shall be engraved in
what part of the CPA’s seal?
a. Upper portion of the space between the bigger and
smaller circle.
b. Lower portion of the space between the bigger and
smaller circle.
c. Left and right portion of the space between the
bigger and smaller circle and in the middle of the
smaller circle.
d. Middle of the smaller circle.
50. Affixing the CPA’s seal and signature is an indication of
CPA’s
a. Compliance with the requisite accounting and
auditing standards and rules
b. Independence with respect to the entity being
audited.
c. Basic competence at the time of signing the
document.
d. Collection of the audit fees from the client.
- now do the DIY drill -
DO-IT-YOURSELF (DIY) DRILL
1. Which of the following is required for a partnership for
public accountancy practice?
a. At least one of the partners must be a CPA.
b. All partners must be PICPA members.
c. All partners must be CPAs.
d. Firm name must contain names of partners only.
b.
2. The following should be occupied only by a duly
registered CPA, except
a. Any position in any business or company in the
private sector which requires supervising the
recording of financial transactions.
b. Any position in any business or company in the
private sector which requires preparation of
financial statements.
c. Any position in any business or company in the
private sector which requires coordinating with the
internal auditors for the audit of financial
statements.
d. The position of the dean that supervises the BSA
program of an educational institution.
d.
3. The Board of Accountancy is responsible for the
preparation of the contents of the CPA Licensure
Examination.
The Board of Accountancy is responsible
investigating violations of RA 9298
a. False, True
c. True, False
d. False, False
b. True, True
for
4. A member of the Board of Accountancy should not be
connected to any accounting firm.
A member of the Board of Accountancy should not be
connected to any CPA Review school or university
offering courses leading to admission for the CPA
Board Examinations, whether directly or indirectly.
a. False, False
c. True, True
b. False, True
d. True, False
5. The following statements relate to the Board of
Accountancy. Which statement is incorrect?
a. The Board consists of a Chairman and six members
Page 11 of 13
c.
The Chairman and members are appointed by the
President of the Philippines upon recommendation
of PRC
No person shall be appointed a member of the
Board unless he is a natural-born citizen of the
Philippines, a duly registered CPA and has been in
the practice of accountancy for at least ten years
The Professional Regulation Commission may
remove from the Board any member whose
certificate to practice has been removed or
suspended
6. The following statements relate to CPA examinations.
Which of the following is correct?
a. To pass the examination, candidates should obtain
a general weighted average of at least 75%, with
no grade in any subject lower than 60%.
b. A person may be admitted in the practice of
accountancy without examination.
c. Candidates
who
failed
in
two
complete
examinations shall be disqualified from taking
another set of examinations unless he/she enrolled
in and completed at least 21 units of subjects
given in the licensure examinations.
d. Conditioned candidates shall take an examination
in the remaining subjects within three years from
the preceding examination.
7. The following statements relate to CPA examination
ratings. Which statement is correct?
a. To pass the examination, candidates should obtain
a general weighted average of 75% and above,
with no rating in any subject less than 65%.
b. Candidates who obtain a rating of 75% and above
in at least three subjects shall receive a conditional
credit for the subjects passed.
c. Conditioned candidates shall take an examination
in the remaining subject within three years from
the preceding examination.
d. Candidates who fail in four (4) complete CPA
examinations will not be allowed to take
examinations a fifth time.
8. A CPA certificate is evidence of
a. Independence as a professional.
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b.
c.
d.
Basic competence at the time of certification.
Membership in the accredited association.
Completion of continuing professional education
program.
9. Are the following CPAs required to comply with the
requirements on continuing professional education?
a
b
c
d

CPAs in Public
Yes
Yes
Yes
Yes
Accountancy

CPAs in Commerce and
Yes
Yes
No
No
Industry

CPAs in
Yes
Yes
Yes
No
Education/Academe

CPAs in Government
Yes
No
Yes
No
10. Which
statement
is
incorrect
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 fifteen (15) credit units shall be
earned in each year.
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 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.
11. Emong, CPA is applying for renewal of his professional
license. He is exempted from the CPE requirements
a. If he is at least 65 years old.
b. If he is working abroad and he has been out of the
country for at least two years immediately prior to
the date of renewal.
c. Either a or b.
d. Under no circumstances.
12. How many credit units per hour is (are) earned by a
CPA who serves as a facilitator at a CPE seminar?
a. 1 CU per hour
b. 5 CU per hour
c. 3 CU per hour
d. 2 CU per hour
13. A person whose CPA certificate has been revoked
a. can no longer be reinstated as a CPA.
b. is automatically reinstated as a CPA by the PRC
after two years if he has acted in an exemplary
manner.
c. may be reinstated as a CPA by the PRC after two
years if he has acted in an exemplary manner
d. may be reinstated as a CPA by the Board of
Accountancy after two years if he has acted in an
exemplary manner.
14. The following statements relate to the Philippine
Accountancy Act of 2004 (RA 9298). Which of the
statement is true?
a. The PRC has no authority to remove any member
of the Board of Accountancy for negligence,
incompetence or other just cause
b. Insanity is not a ground for proceeding against a
CPA
c. An applicant is prohibited from taking the Phil. CPA
Board Exam if he (she) is below 21 years of age
Page 12 of 13
d.
After one year, subject to certain limitations, the
Board of Accountancy may order the reinstatement
of a CPA whose certificate of registration has been
revoked
15. The following statements relate to RA 9298 and its
IRRs. Which statement(s) is (are) true?
I. According to RA 9298 and its IRRS, a Professional
Identification Card bearing the registration
number, date of issuance, expiry date, duly signed
by the chairperson of the PRC, shall likewise be
issued to every registrant renewable every three
years.
II. Practice in Education shall constitute in a person
when he or she is involved in teaching of
accounting,
auditing,
management
advisory
services, accounting aspect of finance, business law,
taxation and other technically related subjects.
a. I only
b. II only
c. I and II
d. Neither I nor II
16. A CPA whose certificate have been revoked may be
reinstated if he has acted in exemplary manner and
has not committed any illegal, immoral or dishonorable
conduct for a period not less than
a. One year
b. Two years
c. Five years
d. The period depends on the seriousness of his
offense
17. Which of the following is not one of the specified
objectives of the Philippine Accountancy Act of 2004?
a. Examination for registration of CPAs
b. Promulgation of auditing and accounting standards
c. Supervision, control and regulation of accounting
practice
d. Standardization and regulation of accounting
education
18. Which statement is(are) correct regarding CPE
requirements for renewal of professional license?
I. 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.
II. A registered professional shall be temporarily
exempted from CPE requirements upon reaching
the age of 65 years old.
III. 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 three years immediately prior
to the date of renewal.
IV. 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.
a. I and II only
b. I and IV only
c. I, II and IV only
d. II and III only
19. The following statements relate to RA 9298 and its
IRRs. Which statement(s) is (are) true?
I. The PRC-CPE Council shall be composed of a
chairperson and three (3) members.
II. Any candidate who fails in two (2) complete
Certified Public Accountant Board Examination shall
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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
subject given in the licensure examination.
III. Within ninety (90) days after the effectivity of RA
9298, the Board subject to the approval of PRC
and in coordination with APO, shall adopt and
promulgate such rules and regulations to carry out
the provisions of RA 9298 and which shall take
effect fifteen (15) days following its publication in
the Official Gazette or in any major daily
newspapers of general circulation.
a. I and II
b. I and III
c. II and III
d. I, II and III
20. Which of the following is not one of the function of the
Board of Accountancy as specifically provided under RA
9298?
a. To determine and prescribe minimum requirements
leading to the admission of candidates to the CPA
examination.
b. To investigate violations of the Accountancy Law
and the rules and regulations promulgated
thereunder.
c. To perform visitorial powers or review professional
work of accounting practitioners in a general or
random basis.
d. After due process, to suspend, revoke, or reissue
certificates of registration for causes provided for
by law by the rules and regulations promulgated
therefore
21. The Accountancy Law provided that a CPA certificate
may be suspended or revoked on grounds except
a. Immoral or dishonorable conduct.
b. Gross negligence or incompetence in the practice of
profession.
c. Refusal to accept an audit engagement with a
government corporation.
d. Conduct discreditable to the accounting profession
a.
b.
c.
d.
A
A
A
A
and
and
and
and
C,
C,
C,
C,
CPAs
Inc.
Auditors and Tax Consultants
Members, PICPA
23. Individual CPAs, Firms or Partnerships of CPAs,
including partners and staff members thereof shall
register with the BOA and the PRC. If the application
for registration of AB and Co., CPAs was approved on
August 30, 2012, the registration will expire on
a. Sept. 30, 2014
c. Dec. 31, 2014
b. Dec. 31, 2015
d. Aug. 30, 2014
24. The letters “CPA” shall be engraved in what part of the
CPA’s seal?
a. Upper portion of the space between the bigger and
smaller circle.
b. Lower portion of the space between the bigger and
smaller circle.
c. Left and right portion of the space between the
bigger and smaller circle and in the middle of the
smaller circle.
d. Middle of the smaller circle.
25. Below are names of four CPA firms and pertinent facts
relating to them.
Unless otherwise indicated, the
individuals named are CPAs and partners, and there
are no other partners. Which firm name and related
facts indicate a violation of RA 9298 and its IRR?
a. Dee, Lim and Sy, CPAs (Dee died about five years
ago; Lim and Sy are continuing the firm).
b. Cruz and Reyes, CPAs (The name of V. Valdes,
CPA, a third partner, is omitted from the firm
name).
c. Gomez and Castro, CPAs (Gomez died about three
years ago; Castro is continuing the firm as a sole
proprietorship).
d. P. Reyes and Co., CPAs (The firm has ten other
partners who are all CPAs).
 - end - 
22. A and C, CPAs, organized a partnership for the practice
of public accounting. Which of the following is the best
name of the firm?
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