The Philippine Accountancy Act of 2004

A CPA is in public accounting practice when he/she

• Represents his/her employer before government agencies on tax and other matters related to accounting.

• Represents his/her clients before government agencies on tax and other matters related to accounting.

• Teaches accounting, auditing, management advisory services, accounting aspect of finance, business law, taxation, and other technically related subjects.

• Holds, or is appointed with to, a position in an accounting professional group in government or in a government-owned and/or controlled corporation where decision making requires professional knowledge in the science of accounting.

Which of the following statements concerning the practice of accountancy in commerce and industry is incorrect?

• A CPA is in practice of accountancy in commerce and industry when he/she is involved in decision making requiring professional knowledge in the science of accounting, as well as the accounting aspects of financial and taxation.

• A CPA is in the practice of accountancy in commerce and industry when he/she represents his/her employer before government agencies on tax and other matters related to accounting.

• A CPA is in the practice of accountancy in commerce and industry when such employment or position requires that the holder thereof must be a Certified Public Accountant.

• A CPA is in the practice of accountancy in commerce and industry when he/she renders professional services as a Certified Public Accountant to more than one client on a fee basis.

The following statements relate to the submission of nominations to the Board of Accountancy. Which is correct?

• The Accredited National Professional Organization of CPAs (APO) shall submit its nominations to the President of the Philippines not later than sixty (60) days prior to the expiry of the term of an incumbent chairman or member.

• The APO shall submit its nominations to the PRC not later than thirty (30) days prior to the expiry of the term of an incumbent chairman or member.

• If the APO fails to submit its own nominee(s) to the PRC within the required period, the PRC in consultation with the Board of Accountancy shall submit to the President of the Philippines a list of five (5) nominees for each position.

• There should be adequate documentation to show the qualifications and primary field of professional activity of each nominee.

The Board of Accountancy shall elect a vice-chairman from among its members for a term of

• Two (2) years

• One (1) year

• Three (3) years

• Five (5) years

The Commission upon the recommendation of the Board, shall create an auditing standard setting body to be known as the

• Auditing and Assurance Standards Council (AASC)

• Auditing Standards and Practices Council (ASPC)

• Auditing Standards Board

• Auditing Standards Council

To pass the CPA licensure examination, a candidate must obtain a

• General average of seventy-five percent (75%), with no grades lower than sixty percent (60%) in any given subject.

• General average of seventy-five percent (75%), with no grades lower than sixty percent (60%) in any given subject.

• General average of seventy-five percent (75%).

• General average of sixty-five percent (65%).

A candidate received a conditional credit for the subject to passed. He/she shall take an examination in the remaining subjects within

• Two (2) years from the preceding examination.

• Three (3) years from the preceding examination.

• One (1) year from the preceding examination.

• vFive (5) years from the preceding examination.

The following statements relate to the use of seal by registered CPAs. Which is incorrect?

• A registered CPA shall obtain and use a seal of a design that will suit his/her taste.

• The seal should be of a design prescribed by the Board bearing the CPA’s name, registration number, and title.

• The auditor’s reports shall be stamped with the CPA’s seal, indicating therein his/her current Professional Tax Receipt (PTR) number, date/place of payment when filed with government authorities or when used professionally.

• the seal of a CPA shall be circular in form.

Tan, Sam, and Jer, CPAs, a newly formed partnership, applied for registration with the Commission and the Board which was approved on June 20, 2013. The partnership should apply for renewal of its registration on or before

• September 30, 2015

• September 30, 2016

• December 31, 2015

• June 30, 2016

Which of the following statements concerning the use of firm or partnership name is incorrect?

• In the case of an individual CPA, he/she shall do business under his/her registered name with BOA and the PRC and as printed in his/her CPA certificate (for example, Juan Puruntong, CPA).

• In the case of of a firm, it shall do business under its duly registered and authorized firm name appearing in the registration documents issued by the Department of Trade and Industry (DTI) and other government offices and such firm name shall include real name of the sole proprietor as printed in his/her CPA certificate (for example, Arnulfo Gumamela and Associates).

• In the case of a registered partnership, it shall do business under its name as indicated in its current Articles of Partnership and Certificate of Registration issued by the Securities and Exchange Commission (SEC) (for example, Tan, Sam, and Jer, CPAs).

• A CPA shall practice only under an individual, firm, or partnership name in accordance with Philippine laws and shall not include any fictitious name but may indicate specialization.