MULTIPLE CHOICE

1. 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
b) PICPA
c) BOA
d) National library
 MULTIPLE CHOICE
2. Which of the following is responsible for establishing
auditing standards that will become generally
accepted in the Philippines?
a) Securities and Exchange Commissions
b) Financial Reporting Standards Council
c) Professional Regulations Commission
d) Auditing and Assurance Standards Council
 MULTIPLE CHOICE
3. An auditor in the current business and accounting
landscape must
a) Have adequate technological training and
knowledge to understand controls
b) Hire third parties to understand the technological
aspects of controls
c) Perform as much control testing around the
computerized systems as possible
d) Perform a paperless audit
 MULTIPLE CHOICE
4. If firm personnel providing such assistance make management
decisions, the self-review threat created could not be reduced to
an acceptable level by any safeguards. Examples of such
managerial decisions include the following, except
a) Determining or changing journal entries, or the
classification of accounts or transactions or other
accounting records without obtaining the approval of the
audit clients
b) Authorizing or approving transactions
c) Preparing source documents or originating data or making
changes to such documents or data
d) Assisting an audit client in resolving account reconciliation
problems
 MULTIPLE CHOICE
5. The provision of accounting and bookkeeping services to audit
clients in emergency or other unusual situations, when it is
impractical for the audit client to make other arrangements,
would not be considered to pose an unacceptable treat to
independence provided
a) The firm does not assume any managerial role or make any
managerial decisions
b) The audit client accepts responsibility for the results of the
work
c) Personnel providing the services are not members of the
assurance team
d) All of the above
 MULTIPLE CHOICE
6. The members of the Professional Regulatory
Board of Accountancy shall be appointed by the
a) Philippine Institute of CPAs (PICPA)
b) Professional Regulation Commission (PRC)
c) President of the Philippines
d) Association of CPAs in Public Practice
 MULTIPLE CHOICE
7. Republic Act 9298 is also known as
a) Accountancy law of 2004
b) Accreditation of Accountants in Public Practice
c) Philippine Accountancy Act of 2005
d) Philippine Accountancy Act of 2004
 MULTIPLE CHOICE
8. 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
 MULTIPLE CHOICE
9. The following statements relate to CPA exam ratings. Which
statement is incorrect?
a) To pass the exam, candidates should obtain a general
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 4 subjects shall receive a conditional credit for the
subjects passed
c) Conditioned candidates shall take an exam in the remaining
subject(s) within 3 years from the preceding exam
d) Candidates who fail in two complete CPA exams may be
allowed to take exams a 3rd time provided he/she complies
with Sec. 18 of RA 9298
 MULTIPLE CHOICE
10. The following documents shall be submitted by
applicants for the CPA licensure examination,
except
a) NBI clearance
b) Birth certificate in National Statistics (NSO)
security paper
c) Transcript of records and college diploma
d) Marriage contract in NSO security paper for
married male applicants
 TRUE or FALSE
11.Inspecting correspondence with the relevant
licensing or regulatory authorities is a procedure
to identify instances of noncompliance with laws
and regulations
 TRUE or FALSE
12.All working papers made by a CPA and his/her
staff in the course of an examination remain the
property of such CPA in the absence of a written
agreement between the CPA and the client to the
contrary
 TRUE or FALSE
13.Working papers shall be treated confidential and
privileged unless such documents are required to
be produced through subpoena issued by any
court, tribunal, or government regulatory or
administrative body
 TRUE or FALSE
14.Professional scepticism is an attitude that
includes questioning contradictory audit evidence
obtained
 TRUE or FALSE
15.A belief that management and those charged with
governance are honest and have integrity
relieves the auditor of the need to maintain
professional scepticism
 MULTIPLE CHOICE
1. 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
b) PICPA
c) BOA
d) National library

A
 MULTIPLE CHOICE
2. Which of the following is responsible for establishing
auditing standards that will become generally
accepted in the Philippines?
a) Securities and Exchange Commissions
b) Financial Reporting Standards Council
c) Professional Regulations Commission
d) Auditing and Assurance Standards Council

D
 MULTIPLE CHOICE
3. An auditor in the current business and accounting
landscape must
a) Have adequate technological training and
knowledge to understand controls
b) Hire third parties to understand the technological
aspects of controls
c) Perform as much control testing around the
computerized systems as possible
d) Perform a paperless audit

A
 MULTIPLE CHOICE
4. If firm personnel providing such assistance make management
decisions, the self-review threat created could not be reduced to
an acceptable level by any safeguards. Examples of such
managerial decisions include the following, except
a) Determining or changing journal entries, or the
classification of accounts or transactions or other
accounting records without obtaining the approval of the
audit clients
b) Authorizing or approving transactions
c) Preparing source documents or originating data or making
changes to such documents or data
d) Assisting an audit client in resolving account reconciliation
problems
D
 MULTIPLE CHOICE
5. The provision of accounting and bookkeeping services to audit
clients in emergency or other unusual situations, when it is
impractical for the audit client to make other arrangements,
would not be considered to pose an unacceptable treat to
independence provided
a) The firm does not assume any managerial role or make any
managerial decisions
b) The audit client accepts responsibility for the results of the
work
c) Personnel providing the services are not members of the
assurance team
d) All of the above
D
 MULTIPLE CHOICE
6. The members of the Professional Regulatory
Board of Accountancy shall be appointed by the
a) Philippine Institute of CPAs (PICPA)
b) Professional Regulation Commission (PRC)
c) President of the Philippines
d) Association of CPAs in Public Practice

C
 MULTIPLE CHOICE
7. Republic Act 9298 is also known as
a) Accountancy law of 2004
b) Accreditation of Accountants in Public Practice
c) Philippine Accountancy Act of 2005
d) Philippine Accountancy Act of 2004

D
 MULTIPLE CHOICE
8. 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
A
 MULTIPLE CHOICE
9. The following statements relate to CPA exam ratings. Which
statement is incorrect?
a) To pass the exam, candidates should obtain a general
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 4 subjects shall receive a conditional credit for the
subjects passed
c) Conditioned candidates shall take an exam in the remaining
subject(s) within 3 years from the preceding exam
d) Candidates who fail in two complete CPA exams may be
allowed to take exams a 3rd time provided he/she complies
with Sec. 18 of RA 9298

C
 MULTIPLE CHOICE
10. The following documents shall be submitted by
applicants for the CPA licensure examination,
except
a) NBI clearance
b) Birth certificate in National Statistics (NSO)
security paper
c) Transcript of records and college diploma
d) Marriage contract in NSO security paper for
married male applicants
D
 TRUE or FALSE
11.Inspecting correspondence with the relevant
licensing or regulatory authorities is a procedure
to identify instances of noncompliance with laws
and regulations

True
 TRUE or FALSE
12.All working papers made by a CPA and his/her
staff in the course of an examination remain the
property of such CPA in the absence of a written
agreement between the CPA and the client to the
contrary

True
 TRUE or FALSE
13.Working papers shall be treated confidential and
privileged unless such documents are required to
be produced through subpoena issued by any
court, tribunal, or government regulatory or
administrative body

True
 TRUE or FALSE
14.Professional skepticism is an attitude that
includes questioning contradictory audit evidence
obtained

True
 TRUE or FALSE
15.A belief that management and those charged with
governance are honest and have integrity
relieves the auditor of the need to maintain
professional skepticism

False