# Answer Basis Text/Explanation: True or False
# Answer Basis Text/Explanation: True or False
# Answer Basis Text/Explanation: True or False
True or False
# Answer Basis Text/Explanation
1 FALSE Second paragraph, Par. A CPA shall practice only under an individual, firm or
1(c)(ii), Annex “B,” Rules partnership name allowed in accordance with Philippine laws
and Regulations and shall not include any fictitious name, indicates specialization
Implementing RA 9298 or is misleading as to the type of organization (proprietorship or
partnership). A partner surviving the death or withdrawal of all
the other partners in a Partnership may continue to practice under
the Partnership name for a period of not more than two (2) years
after becoming a sole proprietor. XXX
2 FALSE Sec. 3, BOA Resolution no. All CPA’s, regardless of area/sector of practice, shall be required
358 series of 2016 to comply with the one hundred twenty (120) CPD credit units
within a compliance period of three (3) years. XXX
3 FALSE Sec. 28, RA 9298 XXX The Security and Exchange Commission shall not register
any corporation organized for the practice of public accountancy.
4 FALSE Merriam-Webster Dictionary In actual time charges basis, billing is done on the basis of actual
time spent by the staff multiplied by the hourly rates agreed
upon. In retainer fee basis, auditor is paid a fixed pre-determined
fee for all services rendered during a designated period of time
either on a monthly, semi-annual or annual basis
5 TRUE Sec. 10.2a-10.2b, Code of XXX
Ethics (2001) (a) The skill and knowledge required for the type of
professional services involved;
(b) The level of training and experience of the persons
necessarily engaged in performing the professional services;
XXX
6 TRUE Sec. 10.2c-10.2d, Code of XXX
Ethics (2001) (c) The time necessarily occupied by each person engaged in
performing the professional services; and
(d) The degree of responsibility that performing those
services entails.
7 FALSE Sec. 10.3, Code of Ethics Professional fees should normally be computed on the basis of
(2001) appropriate rates per hour or per day for the time of each person
engaged in performing professional services. These rates should
be based on the fundamental premise that the organization and
conduct of the professional accountant in public practice and the
services provided to clients are well planned, controlled and
managed. XXX
8 FALSE Sec. 3, BOA Resolution no. XXX Required minimum units earned from the previous year(s)
358 series of 2016 for license renewal: Zero (0) for 2016 and 2017; Twenty (20)
units earned from the immediately preceding year, and; Twenty
(20) units earned from each of the two immediately preceding
years.
9 FALSE Definitions, Code of Ethics Solicitation - The approach to a potential client for the purpose
(2001) of offering professional services.
10 FALSE Par. 1(a), Annex “B,” Rules XXX The registration shall be valid for a period of three (3)
and Regulations years and may be renewed every three (3) years on or before
Implementing RA 9298 September 30 on the year of expiry upon compliance of the
requirements provided in this revised rules and regulations. XXX
CHAPTER 4
11 FALSE Par. 4, Annex “B,” Rules and The death or disability of an individual CPA and/or the
Regulations Implementing dissolution and liquidation of a Firm or Partnership of CPAs
RA 9298 shall be reported to the board XXX not later than thirty (30) days
from the date of such death, dissolution or liquidation. XXX
12 FALSE Third paragraph, Whereas WHEREAS, any advertising by professional accountants beyond
clause, BOA Resolution no. their name, address, telephone number and membership in
126 series of 2008 professional organizations has been traditionally considered
unethical in the Accounting Profession.
13 TRUE Second paragraph, Par. A24, Effective recruitment processes and procedures help the firm
PSQC 1 select individuals of integrity who have the capacity to develop
the competence and capabilities necessary to perform the firm’s
work and possess the appropriate characteristics to enable them
to perform competently.
14 FALSE Article 1767, Civil Code of By the contract of partnership XXX, with the intention of
the Philippines dividing the profits among themselves.
Two or more persons may also form a partnership for the
exercise of a profession.
15 FALSE Par. 2(a), Annex “C,” Rules The Board, upon approval by PRC, shall create a Council within
and Regulations thirty (30) days from effectivity of this resolution. This shall be
Implementing RA 9298 known as the PRC CPE Council which shall assist the Board in
implementing its CPE program.
16 FALSE Sec. 28, RA 9298 XXX, a certificate of accreditation shall be issued to certified
public accountant in public practice only upon showing, XXX,
that such registrant has acquired a minimum of three (3) years
meaningful experience in any of the areas of public practice
including taxation: XXX
17 FALSE Par. 1(g), Annex “B,” Rules XXX, issue to the applicant the corresponding Certificate of
and Regulations Registration to practice public accountancy. Unless sooner
Implementing RA 9298 revoked, cancelled or withdrawn, said Certificate of Registration
shall be valid for three (3) years XXX, shall be renewable every
three (3) years XXX
18 TRUE Sec. 28, RA 9298 Limitation of the Practice of Public Accountancy. - Single
practitioners and partnerships for the practice of public
accountancy shall be registered certified public accountants in
the Philippines: XXX
19 FALSE First paragraph, Par. 1(c)(ii), XXX In the case of Firms, they shall do business under their
Annex “B,” Rules and respective duly registered and authorized Firm name appearing
Regulations Implementing in the registration documents issued by the Department of Trade
RA 9298 and Industry (DTI) XXX. In the case of registered Partnerships,
they shall do business under their respective Partnership names
as indicated in their current Articles of Partnership and
certificates of registration issued by the Securities and Exchange
Commission (SEC) XXX
20 TRUE Appendix A, BOA 1. Professional Track XXX
Resolution no. 358 series of 2. Academic Track XXX
2016 3. Self-directed (training offered by non-accredited CPD
providers, face-to-face/online) and/or Life-long Learning
4. Such other activities to be recommended by the CPD
Council and approved by the Board of Accountancy and
CHAPTER 4
the Professional Regulation Commission
CHAPTER 4
Multiple Choice Questions