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b. Dec. 31, 2008 d. Aug. 30, 2007

10. 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, 2005, it shall file for renewal on or before

a. September 30, 2007 c. December 31, 2007

b. September 30, 2008 d. August 30, 2008

11. The CPA Registration Number shall be engraved in what part of the CPAs 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.

12. Affixing the CPAs seal and signature is an indication of CPAs

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.

13. 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

14. 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 finea. not less fifty thousand pesos (P50,000), or by imprisonment for a period not exceeding three (3) years, or both

b. not less one hundred thousand pesos (P100,000), or by imprisonment for a period not exceeding two (2) years, or both

c. not less fifty thousand pesos (P50,000), or by imprisonment for a period not exceeding two (2) years, or both

d. not less one hundred fifty thousand pesos (P150,000), or by imprisonment for a period not exceeding three (3) years, or both

15. 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 15d. 30 45

16. 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

Revised Code of Ethics

PART B: PROFESSIONAL ACCOUNTANTS IN PUBLIC PRACTICE

Section 200Introduction

1. Independence and other general principles are potentially affected by

I. Self-interest threat IV. Familiarity threatII. Intimidation threat V. Advocacy Threat

III. Self-review threat

a. I, II, III, IV and V c. I, II and III

b. I, II, III and IV d. I only

2. Occurs as a result of the financial and other interests of a professional accountant or of an immediate or close family member

a. Self- interest threat c. Advocacy threat

b. Self-review threat d. Familiarity threat

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3. Examples of circumstances that may create self-interest threat include

a. Contingent fees relating to assurance engagements

b. A financial interest in a client or jointly holding a financial interest with a client

c. A loan to or from an assurance client or any of its directors or officers

d. All of the above.

4. Which of the following least likely create self-interest threat

a. Undue dependence on total fees from a client.

b. Concern about the possibility of losing the engagement.

c. Having a close business relationship with a client.

d. Being pressured to reduce inappropriately the extent of work performed in order to reduce the fees

5. Occurs when a professional judgment needs to be re-evaluated by the professional accountant responsible for that judgment

a. Self-interest threat c. Advocacy threat

b. Self-review threat d. Familiarity threat

6. Examples of circumstances that may create self-review threat least likely include

a. Having prepared the original data used to generate records that are the subject matter of the engagement

b. A member of the assurance team being, or having recently been, an employee of the assurance client in a position to exert direct and

significant influence over the subject matter of the assurance engagement.

c. Performing services for an assurance client that directly affect the subject matter of the assurance engagement.d. Potential employment with a client.

7. Examples of circumstances that may create self-review threat least likely include

a. A member of the assurance team being or having recently been a director of officer of that client.

b. The discovery of significant error during a re-evaluation of the work of the professional accountant in public practice.

c. Reporting on the operation of financial systems after being involved in their design or implementation.

d. Accepting gifts or preferential treatment from a client, unless the value is clearly insignificant.

8. Occurs when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised

a. Self-interest threat c. Advocacy threat

b. Self-review threat d. Familiarity threat

9. Occurs when, by virtue of a close relationship, a professional accountant becomes too sympathetic to the clients interest s.

a. Self-interest threat c. Advocacy threat

b. Self-review threat d. Familiarity threat

10. Examples of circumstances that may create familiarity threat least likely include

a. A member of the assurance team giving an immediate family member or close family member who is a director or officer of the

assurance client.

b. A member of the assurance team having an immediate family member or close family member who, as an employee of the

assurance client, is in a position to exert direct and significant influence over the subject matter of the assurance engagement.

c. A former partner of the firm being a director, officer of the assurance client or an employee in a position to exert direct and

significant influence over the subject matter of the assurance engagement.

d. Promoting shares in a listed entity when that entity is a financial statement audit client

11. Intimidation threat

a. is not a threat to independence

b. Occurs when a member of the assurance tem may be deterred from acting objectively and exercising professional skepticism by

threats, actual or perceived

c. Occurs when, by virtue of a close relationship with an assurance client, its directors, officers or employees, a firm or a member of

the assurance team becomes to sympathetic to the client s interests.

d. Occurs when a firm, or a member of the assurance team, promotes, or ma y be perceived to promote, an assurance clients position

or opinion to the point that objectivity may, or may be perceived to be, compromised.

12. Which of the following is not likely a threat to independence?

a. Acting as an advocate on behalf of an assurance client in litigation or in resolving disputes with third parties.

b. Long association of a senior member of the assurance team with the assurance client.c. Threat of replacement over a disagreement with the application of an accounting principle.

d. Owning immaterial indirect financial interest in an audit client.

13. Safeguards created by the profession, legislation or regulation, include the following, except

a. Educational, training and experience requirements for entry into the profession

b. Continuing education requirements

c. Legislation governing the independence requirements of the firm.

d. Policies and procedures that emphasize the assurance clients commitment to fair financial reporting

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