Effectiveness of the Retention Policy in CPALE

performance of BSA graduates in Laguna State

Polytechnic University – Los Baños Campus

Researchers: Sherry Ann D. Sarmiento

Asnea Naik Macatangcop
Year & Section: BSA-IVA

Supervisor: Prof. Danilo Estrada

Date of Submission: 10-26-21
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CHAPTER I
INTRODUCTION
Professions is the typical basis of individuals in addressing to the services rendered of the

particular institutions and the same time to economics activities. It is highly encouraged to at least

complete a minimum degree that serve as one of the most important qualification in which they

can probably gain confidence and be trusted persons in dealing with the demand of the society.

Especially to an in-demand job now a days.

Accountancy is one of the most in demand professions in todays’ globalized world.

According to British economist Henderson David (2004), Business of today, act as vehicles for

economic progress. To keep track if the business is ended making progress, the role of

accountants is crucial. They served as the person capable of making financial reports about

entities’ financial position and performance in order for the interested parties make a sound and

relevant decision. This will be an essential reason why accounting referred as the language of the

business and it serve as an important tool for the latter. However, to hasten expertise in this field of

specialization, the student needs to enroll a program that preparatory for the profession. One of

which is taking the program of Bachelor of Science in Accountancy.

However, the Bachelor of Science in Accountancy is the only accountancy program that is

open for accountancy’s students to the board examination called the Certified Public Accountants

Licensure Examinations (CPALE). To be in accountancy program takes a lot of focus and

determination to comply with its requirements and this include the retention policy (University of

Cordilleras n.d.). Retention policy refers to the policy that has a standard grade that has needed to

be maintain by the BSA students. For the past year, the Accountancy program in Laguna State

Polytechnic University had implemented a retaining GWA of 2.00 (87-89) and have no 3.00 (75-77)
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in all subjects. Due to implemented retention policy, the program become very challenging. But at

the same time the accountancy students are highly motivated to comply with the standards, where

in their need to spend more time in studying courses with comprehension and making sure that

every information stated in the printed materials like books are well known. Having excellent

grades consistently indicates that the accountancy students are confident to pass CPALE because

it assumed that anyone cannot have good records, if they are not personally the one who work

hard for it. Furthermore, the professor can never give a perfect’s scores to the one who does not

have a perfect answer. Also, they are the individuals who encourage aspiring accountants to study

hard seriously.

The retention policy has existed already during year 1990’s but it is not strictly implemented

which it’s results to universities lower passing rates over the national percentage (Chua Peterwillie

2018). He also mentioned that the lowest point of Accountancy program in the board examinations

happened in early 2000 where in university at that time has no passers in the licensure

examinations. In addition, the Laguna State Polytechnic University is one of the University that

experiencing difficulties in maintaining a higher percentage of passing rate in CPALE. Although

there is implemented retention policy in the said school.

Background of the Study

The current Bachelor of Science in Accountancy (BSA) curriculum adopts the latest CHED

MEMORANDUM ORDER NO. 27 Series of 2017, based on International Education Standards

which focuses on equipping students to meet the competences required in the workplace of such

profession within or outside the Philippines. For Universities in the country, it is a 4-year course

program or 11-trimester course (3 years plus 2 semester) that is equivalent to 5 years course in

semestral setting. The prestigious program prepared the students to be disciplined and educated
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accountants by taking CERTIFIED PUBLIC ACCOUNTANTS LICENSURED EXAMINATIONS

(CPALE).

Certified Public Accountants Licensure Examination is considered as one of the prestigious

Licensure Examination nation-wide. According to the percentage result of CPA Board Exams last

October-2019. Its only 2,075 or equivalent to 14.32% passer out of 14,492 individuals who took the

exam. Also, May of the same year is 1,699 or equivalent to 16.46% out of 10,319. Compared to

the year 2016, For May 2,967 examinees passed or equivalent to 42.84% out of 6,925. In October

of the same year 5,249 examinees passed or 36.48% out of 14,390. The continuous declining

rates is very alarming because it might have a negative connotation to each and everyone,

especially to the college and universities that they cannot produce a higher number of individuals

who can comply with accounting standards. Even though they make a highly appreciated effort.

The performance of Laguna State Polytechnic University in the year 2019 is 1 passer or

equivalent to 4.76% out of 21 examinees for the month of May and for the month of October the

board passer is 3 or equivalent to 7.14% out of 42 individuals. In addition, the previous passing

rate for the following years are 2014 is 0% out of 3, 2015 is 23.08% out of 13, and 2016 for the

month of May is 57.14% out of 7 and for the month of October is 22.22% out of 18. For 2017 is 0%

out of 6 and 4.65% out of 43 for the month of May and October respectively. Lastly for 2018 is

18.52% out of 27 and 0% out of 26 examinees of respective months. It shows that the overall

performance is lower than probably expected outcome.

The researcher aims to find out what is currently happening to the retention policy

implemented? What is the direct bearing of the retention policy to the performance of BSA

graduates who took (CPALE).? It’s focus primarily on the grades of accountancy graduates in
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Laguna State Polytechnic University- Los Baños Campus. Aiming to know the effectiveness of the

Retention Policy to their performance in taking CPALE. This research study serves as the medium

of information to the Universities especially LSPU-LB on what is probably the efficient way to adopt

certain changes or improvements to the said policy.

Theoretical Framework

The model of student departure by Vincent Tinto is one of the main theory of the Retention

Policy. Tinto developed his "interactionalist theory", according to which a student was most likely to

stay the course when there was a match between their own academic goals and motivation, and

the academic and social characteristics of an organization. The variables mentioned to the above

theory is somewhat related to the variables of this study and which are the retention policy

implemented and motivation in taking board exams.

Then grades seems likely everything in academia and which portray and motivate students

to study hard and perform well with their course. But according to Thompson, (2021) The debate

about whether grades help or hinder student learning is as old as the U.S grading system, way

back late 1800s. Most teachers don't think grades are the useful tool and that is because they feel

it discourage learning.

According to Santiago, Maricar (2014) retention policy is very important to all accountancy

students in becoming a Certified Public Accountant. Because having this policy will help you in

preparation for your battle in the real world and even in the preparation for the upcoming board

examination especially to those graduating students. The performance of accountancy graduates

in Licensure Examination is the key performance indicators in quality assurance to their respective
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job. Given the CPA board exam is one of the most difficult government Licensure examinations in

the Philippines according to the previous vice chairman of the Board of Accountancy, (Bala, 2008).

INDEPENDENT
Conceptual Framework
VARIABLE
1. Demographic Profile
a. Sex
b. Number of exams
taken
DEPENDENT
c. GWA
VARIABLE
2. Retention Policy
Effect of Retention Policy
a. Grading system to the CPALE performance
b. Number of disqualifying
grades
c. Retention Status
3. Motivation
4. CPALE performance

Factors affected due to implementation of the retention policy are the demographic profile of

Accountancy graduate and which describe of their sex, number of exams taken that stand for how

many times they took board exams and general weighted average is their grades in the said

exams. The second one is the retention policy and which consists of grading system, number of

disqualifying grades and the retention policy implemented. Then the remaining two are motivation

and their cpale performance. The researchers aiming to provide useful information in measuring
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the effects of the retention policy to the CPALE performance of BSA Graduates through the use of

data gathered.

Statement of the Problem

The purpose of this study is to evaluate the CPALE performance of Accountancy graduates in

relation to retention policy. Specifically, the study aims to answers the following.

1. What are the demographics profile of the respondents in terms of the following:

1.) Sex

A. Female

B. Male

2.) Number of exams taken

A. First taker

B. Repeater

3.) GWA (specify)

2. What are the retention criteria implemented during their compliance of academic requirements?

1.) Grading-system

A. Zero based

B. Base 50

2.) Numbers of disqualifying grades

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A. below one the target grades

B. More than one the target grades

3.) Retention Status

A. outright disqualification

B. With probation

4. Does the retention policy increase the motivation to take the Board exam as perceived by the

students?

A. Never

B. Unlikely

C. Likely

D. Most likely

5. Does the retention policy has a direct bearing to the CPALE performance as perceive by the

students?

A. Never

B. Unlikely

C. Likely

D. Most likely

6. Is there is a significant correlation between demographic profile and;

A. Motivation of students B. Effect of Retention Policy

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Hypotheses

There is no significant correlation between the demographic profile and the motivation of the

students as a result of the CPALE performance.

There is no significant correlation between the demographic profile and to the effects for CPALE

performance.

Scope and Limitations of the Study

This study focused only to the BSA Graduates in Laguna State Polytechnic University- Los

Banos Campus who took Certified Public Accountant Licensure Examination. Also, limited to the

accountancy graduates of batch 2019-2020 and which they are under the retention policy of the

program.

Significance of the Study

This study is significant to the following:

To BSA students, to strive harder, and to manage time for studying and use this study to

evaluate, how effective this retention policy in taking the CPALE. To Accountancy Department

Faculty, to serve them as an evaluation of the Retention Policy implemented and may find this

study useful in understanding whether to improve or implement another policy regarding the

retention;. To parents who will know and understand the policy being implemented in the university;

To future researchers who may use this as a reference for further findings;. To community, the

performance of the accountancy students will have impact to Los-Baños community especially if

they pass the Board exam and therefore if any of the representative of the government might be

interested to this certain topic, this research will serve as a medium of information.
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Definition of Terms

Accountancy - The program offered to College and Universities as one of the required

requirements to become accountants. It is 5-year semester program setting or 4 years or 11-

trimester course (3 years plus 2 semester).

Retention Policy – The policy implemented in accountancy program to be able to encourage

students to a lot more time in studying with comprehension. Also, the policy has a minimum grades

requirement to stay in the program.

CPALE – Certified Public Accountancy Licensure Examination is the final assessment of the

performance of the accountancy graduates on how knowledgeable they are regarding the

standards and application of each information in accounting profession.

Professions – The students are successfully earning minimum years required to finish the courses

offered in the program and at the same time already pass the Board Exams.

Performance – It is the students’ perseverance in studying hard during undergrad years and of

course the preparation in taking up CPALE.

Grades – A measure of the quality of the students’ performance. It is the grading system

implemented to BSA program.

Motivation – This refers to the reason why accountancy students pursuing themselves to act

continuously, given how difficult to analyze certain things.

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CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDY
This chapter discuss the review of related literature and studies of the topic about the effects

of Retention Policy to CPALE performance of BSA Graduates.

According to the study conducted by Brimble, Jahmani, O’leary and Osman, D. (2017), there

are three external factors were identified that had impacts to the reducing rates of Accountancy

program in Australia, such as the financial, employment, and other personal matter. But after

gathering information it shows that the reducing rates from accountancy courses in Australia is less

impacted by external factors. The study also mentioned four demographic factors that lead to the

gradual reduction of how effective the accountancy program such as the gender, marital status,

reasons for choosing accountancy, and the years of the study.

The study findings stated that students in Australia appear to be dissatisfied with lecture

scheduling, registration, technological services, and college facilities. In addition, the study showed

the significant differences in attitudes between administrators and students in 4 of the 14 external

comparisons. In the perspective view of administrators, they considered financial issues, poor

attendance and grades, family pressure, and other reasons (motivation, program structures etc.)

are to be main reasons of the students that were forced to leave their accounting studies, yet the

students disagreed in this matter.

The factors mentioned in previous study conducted are partly related to the current variables

of this study which are the demographic profile, retention policy, motivation and CPALE

performance. Then through the use of the said variables the researchers can gather those needed

information to attain the objectives of this study.

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Student’s performance in Bachelor of Science in Accountancy Program is best tested with

the actual results in the CPA Licensure Examination. A closer look at its past performance would

create a basis of enhancement on how to improve the current passing rate of the program and

would serve as reflection of how effective the teaching-learning process is.

For the study conducted by Accountancy professors and scholar, Mr. Chua of Palawan

State University’s (2018). The findings of the study identified the prepared review center and

session of former enrolled individuals and including other factors such as hours of studying and

resting as well as the strategy and techniques were also identified and how many times it took for

the candidate to pass the CPA licensure examination. The data was gathered through electronic

survey automated in google survey and same data was then analyzed through electronic data

analysis software called SPSS Version 19.

The findings in the study showed that more than two-third (2/3) of the successful examinees

are considered first takers and were enrolled in the afternoon session of RESA Review School. In

terms of their studying matters, the subjects preferred to self-review at home that they usually

spend more than 8 hours rest but makes it less different compared to normal hours of sleep. The

study found out that the said successful examinees also understood the concept first before

applying the same in practical application and the preferred review techniques were reading,

making notes and answering practical questions. In addition, a conduct of self-evaluation was done

to assess their preparation and readiness for the CPALE.

In addition, the study signifies that the graduating BSA students assessed themselves as

almost competent or having average knowledge and understanding of the accounting professional

ethics, including integrity, objectivity and independence, professional competence and due care,
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confidentiality and behavior which are the qualities needed to be a professional accountant as well

as they were described to be competent and ready to distinguish what is morally right and wrong in

performing task needed by the profession (2016).

According to Albuquerque (2018) the number of students attending higher education courses in

Brazil is increasing but at the same time the rates of students drop out is increasing too and the Higher

Education Institution (HEI) had implemented the retention policy. The student’s decision to drop or

pursue a program is a problem that needs to be understood from the perspectives of the student. To

understand the factors from the viewpoint of the students in the said policy that will contributes to

the management and improve quality particularly in accountancy program.

In Brazil, most publications on the subject address the phenomenon of evasion.

Investigations are conducted with students who have dropped out or are likely to drop out. From

the methodological point of view, the motivation for this research is to fill the gap of the lack of

approach of the problem from the perspective of student retention, that is, the desire to continue

taking the course at the institution, investigating the perception of students who are attending

Accountancy program.

The researchers conducted this research knowing that the previous studies conducted are

focused on identifying factors and technique on how to survive the journey in Accountancy program

and how to pass the Board exams. While in this study the researchers trying to figure out if the

factors mentioned from previous studies and other possible factors or variables have bearing to the

retention policy implemented in Laguna State Polytechnic University- Los Banos Campus and in

relation to how the variables embedded in the said policy affects the performance of those who

already took the exam.

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CHAPTER III
RESEARCH METHODOLOGY
This chapter discuss the research design, subject of the study, determination of sampling

technique, research instrument, research procedure, and statistical treatment of data.

Research Design

For this study, the researchers will use the quantitative approach to know the effectiveness

of the Retention Policy implemented and in relation to the BSA Graduates' performances during

CPALE. Quantitative research is referred to as the process of collecting as well as analyzing

numerical data. It is generally used to find patterns, averages, predictions, as well as cause-effect

relationships between the variables being studied.

Under the said approach, the researchers choose to use the descriptive and correlational

designs to measure the variables and describe the relationships between them. By using the

mentioned research design the researchers will gather the data through Google form of survey, to

know the respondents perceptions and ideas regarding to the retention policy.
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Subject of the Study

The target population of this study is the total number of accountancy’s students who

graduate at Laguna State Polytechnic University - Los Banos Campus for the year 2019-2020,

under the said retention policy and they already took board exams, even they pass or fail to be a

Certified Public Accountants. They will serve as the main respondents of this study that will provide

a relevant and clear information in which can explain the accountancy’s graduate perceptions

regarding retention policy.

Determination of Sampling Technique

The researchers will select a group of subjects from the BSA graduates who took the

Certified Public Accountant Examination. Each former student has an equal chance of being

included in the sample. Using the simple random sampling, this will give a statistical inference

about a population. It is also considered as a fair way of selecting a sample from a given

population since every member is given equal opportunities of being selected.

Research Instrument

In gathering the data needed to the study, the researchers made survey questioners via

Google form to collect information from the respondents. Furthermore, the researchers also use

the advices of professors and professional and other related research study for gathering additional

information needed to help for making rational and relevant conclusions for the said study.

Research Procedure
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The researchers presented first the proposed research title of the study. Upon the approval

of the research adviser, the researchers proceed in formulating their chapter 1, 2, and 3. Then after

the formulation of the three chapters, the researchers will finally defend the said study and after the

approval of the panelist, they will proceed in writing a letter address to CBMA Dean and

accountancy adviser to ask permission for gathering the personal data of the target respondents.

Upon the approval of CBMA department, the researchers will collect the said data. Then the

researchers will send email or chat the respondents in able to have their permissions and

acceptance in answering the survey questions. The response are directly collected via Google

form. The confidentiality of the response would only be utilized for the purpose of this study. After

the collections of Data, the researchers used it as the basis to provide utmost analysis and

interpretation.

Statistical Treatment of Data

After collecting the data from the survey questioners, the researchers will make an analysis

using the appropriate statistical tool such as:

Descriptive statistical analysis is used to summarize the data collected through numerical

representation.

Sample mean; x̄ = (Σ xi) / n

x̄ = sample average

x = individual values of population

n = count of individual values in sample

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Pearson r correlation is used to measure the statistical correlation between the demographic

profile and motivation of the students, and also the correlation of demographic profile and to the

effect of Retention Policy

r xy = Pearson r correlation coefficient between x and y

n = number of observations

x i = value of x (for ith observation)

y i = value of y (for ith observation)