Perceptions of Accounting Graduates on the Decreasing Passing Rate of Accountancy

Graduates in the Certified Public Accountants Licensure Examination at Bulacan State

University

Jonathan M. Bausing

Gladys B. Gajudo

Ma. Elena I. Guanlao

Alaine Chloe B. Macarasig

Gian Bianca F. Vergara

CHAPTER 1

THE PROBLEM AND ITS SETTING

Introduction

The performance of the students in the Accountancy program is best perceived in the results of
their Certified Public Accountants Licensure Examination. Since all the hard work, time and
effort that they have invested in studying Accounting is geared towards the board examination
we can come up with the factors which contributes or affects the decreasing passing rate of the
students.

This study aims to identify the perception of the Accountancy students of Bulacan State
University regarding the decreasing passing rate of its graduates in the Certified Public
Accountants Licensure Examination for the past 5 years in terms of national passing rate and
Bulacan State University passing rate, and in terms of curriculum and program of studies,
instruction, admission and retention, and other external factors such as the level of student’s
academic performance, aspirations, study habits and attitudes towards accounting.

The study uses frequency counts and weighted means as statistical tools. We have retrieved the
official results of the Certified Public Accountants Licensure Examination from the Professional
Regulation Commission, from which we made a lists of comparison between the lists of students
given by the school with that of the lists provided by the Philippine Professional Regulation
Commission to evaluate the student’s individual board exam rating according to the date of
examinations. Frequency of first takers and, frequency of non-passers and board exam mean
rating based on date of examinations and year of graduation is provided to evaluate and show the
accuracy of the ratings.

Statement of the Problem

The study aims to identify perceptions of Accountancy graduates on the decreasing passing rate of
Accountancy graduates in the Certified Public Accountants Licensure Examination at Bulacan State
University.

Specifically, it seeks to answer the following questions:

1. What is the passing rate of Accountancy graduates for the past 4 years in terms of:

1.1 National Passing Rate

1.2 Bulacan State University Passing Rate

2. What are the external factors that contribute to the decreasing performance of the Certified Public
Accountants Licensure Examination candidates?
3. What among the factors contributed to the decreasing passing rate of the students?
4. What is the respondent’s perception in the decreasing passing rate of Bulacan State University in
Certified Public Accountants Licensure Examination in terms of:

4.1 Curriculum and program of studies

4.2 Instruction
4.3 Admission and Retention

Significance of the Study

This study will determine the external drivers that affects the performance of the Certified Public
Accountants Examination takers, which will greatly contribute to the enhancement of the program’s
current passing rate.

The outcomes of the study will help encourage the professors, instructors, or teachers and faculty to
improve their ways of teaching, and the students to learn a new and efficient method of learning. It will
also help build their confidence and competence towards taking the examination.

Scope and Limitation

This study is limited to Bulacan State University’s graduate of Accountancy who took the Certified
Public Accountants Licensure Examination from year October 2015 to May 2019 and 4 Accounting
instructor who have handled the takers from the said years.
Definition of Terms and Variables
 CHAPTER 2

THE REVIEW OF RELATED LITERATURE

Valencia, (2012) revealed, “There is no shortcut to passing the CPA exam.” The Certified Public
Accountant Licensure Examination (CPALE) is indeed one of the most difficult board examination in the
Philippines because of its decreasing passing rate every single year. The highest national passing rate to
record was in 2010 with the rate 48.36%. However, the preceding years was not that favorable. Up to the
latest data in May 2019 the national passing was a devastating 16.46% according to the Professional
Regulation Commission (PRC).

One of the most common mistake an Accountancy student makes are their mindset of being serious in
studying only at the time they are already enrolled in a formal review school. As a result, this mindset is
more likely to lead to failure.

Having been enrolled in a review school will just help students to refresh their knowledge they have
acquired during their college undergraduate days. But reaping the benefits of being enrolled in a review
school depends upon the student. A student who was serious in passing the board exam since the very
beginning will more likely to benefit from the services of the review school. In the contrary, a student
who did not take his or her undergrad preparation seriously will not profit from the review school
compared to the students who are well studied during their college days. The reason why it is called a
“review school” is because the instructors will just help the CPA candidates to refresh their knowledge
and assist them from the understanding of the new concepts that has not been taught in college. The
instructors in the review school will not spoon-feed each and every student anymore. Moreover,
reviewing is different from learning new concepts. That is why many students who does not take their
undergrad preparation seriously will more likely be lost in the instruction in the review school because the
way of teaching is fast phasing, because in the instructors’ minds, they are thinking that the candidates
already know what are they talking about. (Valencia, 2012, p.2-3)

Feeding the subconscious mind with all positivity, blocking out fear, doubt and anxiety, having a solid
desire and belief to one’s self of passing the examination will boost the chances of a CPA candidate to
pass. If there’s a will, there is a way. (Valencia, 2012, p.50)

Valencia (2012) emphasized the importance of having a good foundation in English, Logic and a simple
Math in passing the CPA exam because they are the main tools of understanding the principles, problems,
determining the requirements and approaches applicable in answering accounting examinations.

A CPA candidate should also identify their personal weakness and find ways to correct and fix those
weak points. However, having a CPA candidate identify his or her weakness is useless if he or she will
not do something to correct it (Valencia, 2012, p.73).

Valencia (2012) warned that mastering some areas and leaving other areas understudied could be very
dangerous. All of the CPA examination subjects should be studied equally and no topic should be left out.
This is another reason why there are many students who fails the exam—not putting equal extra efforts to
all of the board exam subjects. The reason why a candidate should put equal attention to all of the subject
is that; in able to pass, the examinee should have a score at least 75% to all of the subjects. Which means
that, even a CPA candidate scored 99% on all of the subject and 60% on one subject, it will result to a
mark of failure.

The CPA exam preparation has two stages: Stage 1 consists of building a solid academic foundation
during college years. Stage 2 is the examinee’s formal review program. (Valencia, 2012, p.80)

Another factor that contributes to the decreasing passing rate in the CPA board exam is not all students
are not good at managing their time during the exam. A CPA candidate should develop expertise in
solving problems under a pressured situation, of course with 100% accuracy. Speed and accuracy is
another key in passing the CPA examination. However, speed and accuracy can only be practiced and
applied if the student is familiar about the problem and the concept. Therefore, the examinee should really
focus on mastering the principles in order to pass the difficult examination. (Valencia, 2012, p.81)

Valencia (2012) also realistically stated that having all the CPA reviewer books and notes, attending a
prestigious accounting schools and review centers do not guarantee an aspiring CPA in passing the
examinations. No one can really help an examinee pass the examination except himself/herself.

Another factor affecting the decreasing passing rate of the examination results are distraction. Valencia
(2012) stated that there are two types of distraction: internal distraction and external distraction. Internal
distractions are present to the person’s mind. Few examples of internal distractions are doubts, fears,
anxiety, personal problems, indecision, unrealistic goals, daydreams and forgetfulness. On the other hand,
external distractions are undesirable study area, cellphones, social media, too much chitchats with co-
reviewees.

Another problem arising from the behavior of the CPA reviewee is that sometimes they are physically
present, but are absent spiritually and mentally. Obviously, that will lead to failure if that often happens.
(Valencia, 2012, p.92)

Valencia (2012) stressed the importance of time management. He stated that, “if you want to control your
life, you must control your time.” Many CPA reviewees or even BSA students who are still in college are
neglecting this rule. In effect, their academic performance is not that great. But it can still be improved
through time management. He also added that, “Success or failure in the CPA exam depends on how you
use your time.”

There are two factors contribute to success in learning. Generally, these factors are grouped under the
physical, like surroundings or health, etc. and mental factors like concentration, focus, motivation and
interest. The contributing reasons to the decreasing passing rate is surrounded by these factors. Specially,
health. According to Davis (1965), it is more tedious to study than to do physical work because studying
requires absolute concentration. So it is very important for the examinees to take care of their health in
order to pass the examination. It is very dangerous to take the examination with an examinee is not
feeling well because chances of failing is high because when humans are sick, our body commands us to
rest. Hence, instead of the mind focusing on solving problems, our mind will satisfy our body’s first
immediate need: rest.

According to Valencia (2012), the examinee’s desire to excel is very essential to success. Hence, the
examinee needs to have a strong determination coupled with strong self-motivation. It is a fact that once a
student has a clear-cut goal when taking an examination, he will do his best to achieve his goal even
under the most adverse conditions. That is, if his interest and motivation are strong enough. Some
students does not have this much drive and they only take the exam for the sake of passing. Therefore,
their results are undesireable.

Sometimes, one of the contributing factors to distraction are the inability to concentrate. Valencia (2012)
stated that the examinee’s inability to concentrate may be attributed to anxiety,and fear, which may even
be unconscious.

(Valencia, 2012, p.164) emphasized test tactics that not every examinees applies in order to answer the
exam questions efficiently. One of it is, the phrasing of the questions that leads to misinterpretation. For
example, questions with “except”, differences between “most”, “least” or “best” or negative terms like
“not,” “incorrect,” or “inappropriate” not being cautious about these words will result to an incorrect
answer.

Research studies reveal that a person learns more effectively and quickly when the overwhelming
materials are divided into small, manageable tasks. (Valencia, 2012, p.145)