ISABELA CPA REVIEW CENTER

THE PHILIPPINE CPA LICENSURE EXAMINATION

PRIMER

2019

ASSET MICHAEL F. TACAC, CPA

REYGIE P. LOPEZ, CPA
ISABELA CPA REVIEW CENTER CPALE PRIMER 2019

I - THE CPA BOARD EXAMINATION

Republic Act No.9298 or the Philippine Accountancy Act of 2004 requires aspiring CPAs
to take a written technical exam to measure their competence and evaluate whether
they’re fit for this career or not.

Passing the CPA board exam is required for anyone who wants to practice accountancy
as a profession.

CPA BOARD EXAM COVERAGE

The general topics included in the CPA Licensure Exam (CPALE) are the following.

PRACTICAL /
SUBJECT MCQ THEORETICAL
COMPETENCE
AU Auditing 70 50% 50%
MS Management Advisory 70 30% 70%
Services
TX Taxation 70 30% 70%
RFBT Regulatory Framework for 100 70% 30%
Business Transactions
FAR Financial Accounting and 70 30% 70%
Reporting
AFAR Advanced Financial 70 30% 70%
Accounting and Reporting

PASSING RATE FOR THE CPA BOARD EXAM

To be a certified public accountant, you must get a general average of 75% plus no
grades lower than 65% in any of the subject areas. If ever you miss the mark on your
second take, you’ll be required to enroll in a refresher course.

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Exam Date No. of Passers Total No. of Examinees Passing Rate

May 2019
October 2018 3,616 14,358 25.18%
May 2018 2,843 9,830 28.92%
October 2017 4,511 14,816 30.45%
May 2017 3,389 9,645 35.14%
October 2016 5,249 14,390 36.48%
May 2016 2,967 6,925 42.84%

REQUIREMENTS

ELIGIBILITY
 A Filipino citizen;
 Has a good reputation and moral character;
 Has no criminal record.
 Has graduated with a degree of Bachelor of Science in Accountancy in a
government-recognized school, institute, college, or university;

APPLICATION
 BS ACCOUNTANCY GRADUATE ONLY
 NSO / PSA Birth Certificate
 NSO / PSA Marriage Contract (for married female applicants)
 Transcript of Records with scanned picture and Remarks "For Board
Examination Purposes"
 Valid NBI Clearance

 After two (2) failures, REFRESHER COURSE, effective October 1976

Conditioned/Removal Examination - to be taken within two (2) years from
the date of examination.

 Payment:
P900.00 - Complete
P450.00 – Conditional
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ISABELA CPA REVIEW CENTER CPALE PRIMER 2019

NEXT EXAMINATION

Dates October 5, 6 & 12

Days Saturday, Sunday & Saturday
Location Manila, Baguio, Cagayan De Oro, Cebu, Davao, Iloilo, Legaspi,
Lucena, Tacloban, Tuguegarao

Application Start May 27, 2019

Application Deadline September 5, 2019
Target Release Date of Results October 21, 2019

EXAM APPLICATION PROCEDURES

1. Prepare all your requirements.

2. Register and set up your LERIS account.
3. Select the CPA Licensure Examination tab.
4. Schedule an appointment with PRC.
5. Choose your preferred payment method and pay for the exam fee.
6. Print your application form.
7. Proceed to the PRC on your appointment date and submit your
requirements.

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ISABELA CPA REVIEW CENTER CPALE PRIMER 2019

II – TOPICS
AUDITING

Auditing Theory

1. Fundamentals of Auditing and Assurance Services

2. The FS Audit - Client Acceptance, Audit Planning, Supervision and
Monitoring
3. Understanding the Entity and its Environment including its Internal
Control and Assessing the Risks of Material Misstatement
4. Audit Objectives, Procedures, Evidences and Documentation
5. Completing the Audit/Post-Audit Responsibilities
6. Reports on Audited Financial Statements
7. Auditing in a Computerized Information Systems (CIS) Environment
8. Other Assurance and Non-Assurance Services
9. Updates on Special Consideration
a. Globalization
b. Digital and Information Technology
c. Governance and Ethics
d. Regulatory Requirements and Considerations
e. Effective Business Communication

Auditing Problem

1. Evidence Accumulation and Evaluation – Substantive Tests of

Transactions and Balances
a. Revenue Receipt Cycle
b. Disbursement Cycle
c. Production Cycle
d. Financing Cycle
e. Investing Cycle
f. Cash Balances

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ISABELA CPA REVIEW CENTER CPALE PRIMER 2019

MANAGEMENT ADVISORY SERVICES

1. Management Accounting
a. Objectives, role and scope of Management Accounting
b. Planning and Control
i. Cost items, concepts and behavior
ii. Cost-Volume-Profit analysis
iii. Standard Costing and Variance analysis
iv. Variable Costing and Absorption Costing
v. Financial Planning and Budgets
vi. Activity-Based Costing and Management
vii. Strategic Cost Management
c. Performance Measurement
i. Responsibility Accounting
ii. Balanced Scorecard
d. Decision Making
i. Quantitative Techniques
ii. Relevant Costing and Differential Analysis

2. Financial Management
a. Objectives and Scope
b. Planning, Control and Decision Making
i. Financial Statement Analysis
ii. Working Capital Finance
iii. Capital Budgeting
iv. Investments, Risks and Rates of Returns
v. Capital Structure and Long-Term Financing Decision

3. Management Consultancy
a. Management Consultancy Practice by CPAs
b. Project Feasibility Studies

4. Economic Concepts
a. Macroeconomics
b. Microeconomics

5. Updates on Special Consideration

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TAXATION

1. Principles of Taxation
2. Tax Remedies
3. Income Tax
a. Taxpayer and Tax Base
b. Gross Income
c. Deductions from Gross Income
d. Accounting Periods
e. Accounting Methods
f. Tax Return Preparation and Filing and Tax Payments
g. Withholding Taxes
h. Compliance Requirements
4. Transfer Tax
a. Estate Tax
b. Donor’s Tax
5. Value Added Tax and Percentage Tax
a. Value-Added Tax
b. Percentage Tax
6. Excise Tax
7. Documentary Stamp Tax
8. Taxation under the Local Government Code
9. Preferential Taxation
a. Senior Citizens Law
b. Magna Carta for Disabled Persons
c. Special Economic Zone Act
d. Omnibus Investments Code
e. Barangay Micro Business Enterprises Act
f. Double Taxation Agreements
10. Tariff and Customs Code
11. Updates on Special Consideration

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ISABELA CPA REVIEW CENTER CPALE PRIMER 2019

REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS

1. Laws on Business Transactions

a. Obligations
b. Contracts
c. Sales

2. Law on Credit Transactions

a. Pledge, Real Mortgage and Chattel Mortgage

3. Negotiable Instruments and Bouncing Checks Law

a. Negotiable Instruments
b. Bouncing Checks

4. Laws on Business Organization

a. Partnership
b. Corporation
c. Cooperatives

5. Laws on other Business Transactions

a. PDIC Law
b. Secrecy of Bank Deposits and Unclaimed Balances Law
c. AMLA Law
d. Intellectual Property Law
e. Data Privacy Act

6. Updates on Special Consideration

a. Globalization
b. Digital and Information Technology
c. Governance and Ethics
d. Regulatory Requirements and Considerations
e. Effective Business Communication

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ISABELA CPA REVIEW CENTER CPALE PRIMER 2019

FINANCIAL ACCOUNTING AND REPORTING

1. Financial Reporting Framework, Standard-Setting Bodies, Regulation
of the Profession, Conceptual Framework and Accounting Process
a. Development of Financial Reporting Framework
b. Standard-Setting Bodies
c. Regulation of the Accountancy Profession
d. Conceptual Framework
e. Accounting Process

2. Presentation of Financial Statements

3. Assets
a. Financial Assets
i. Cash & Cash Equivalents
ii. Loans and Receivables
iii. Investments in Debt Instruments
iv. Investments in Associates
v. Basic Derivatives
b. Non-Financial Assets
i. Inventories
ii. Property, Plant and Equipment
iii. Investment Property
iv. Intangibles
v. Biological Assets
vi. Non-Current Assets Held For Sale

4. Liabilities
a. Financial Liabilities
b. Non-Financial Liabilities
c. Provisions and Contingencies

5. Equity
a. Share Capital Transactions
b. Dividends
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c. Retained Earnings
d. Other Comprehensive Income
e. Book Value per Share and Earnings per Share

6. Other Topics
a. Share-Based Payments
b. Borrowing Costs
c. Leases
d. Income Tax
e. Employee Benefits
f. Interim Reporting
g. Segment Reporting
h. Cash to Accrual
i. PFRS for Small and Medium-Sized Entities
j. PFRS on Micro Enterprises

7. Special Concerns
a. Globalization
b. Digital and Information Technology
c. Governance and Ethics
d. Effective Business Communication
e. BOA regulatory and compliance requirements and
considerations

ADVANCED FINANCIAL ACCOUNTING AND REPORTING

1. Cost Accounting
a. Cost Accumulation
b. Job Order Costing
c. Process Costing
d. Backflush Costing
e. Service Cost Allocation
f. Activity-Base Costing
g. Joint and By-Products
h. Standard Costing

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2. Partnership Accounting
a. Formation
b. Operations
c. Dissolution/Changes in ownership interest
d. Liquidation

3. Corporate Liquidation
4. Joint Arrangements
5. Revenue Recognition
a. Revenue from Contracts with Customers
b. Long-Term Construction Contracts
c. Franchise Operations (Franchisor)
d. Consignment Sales

6. Home Office, Branch and Agency Transactions

7. Business Combination
8. Separate Financial Statements
9. Consolidated Financial Statements
a. Subsidiary
i. Date of acquisition
ii. Subsequent to date of acquisition
iii. Determination of Net Income
iv. Determination of Retained Earnings
b. SME

10. Foreign Currency Transactions

a. Without hedging activities
b. Hedging activities
c. SME

11. Translation of Foreign Currency Financial Statements

12. Not-for-Profit Organizations
13. Government Accounting – General Fund
14. Other Special Topics
15. Updates on Special Concerns

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ISABELA CPA REVIEW CENTER CPALE PRIMER 2019

References:
 PRC and BOA
 https://www.pinoymoneytalk.com/prcgov/accountancy-board-exam-topics-
syllabus/
 https://blog.edukasyon.ph/college-life/everything-you-need-to-know-about-the-
cpa-board-exam/

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