There ARE all shapes, sizes, and hair types for yorkies, and yes their ears are supposed to stand very erect so he's fine there
How big were his parents and how old and big is he now? He is a doll and I would say he looks full yorkie to me. He may not have the total look of the yorkie standard, but that doesn't make him any less of a yorkie. I have 3 and they all look different.