ASSESSMENT ON THE PERFORMANCE OF CABEIHM GRADUATES

IN THE CPA LICENSURE EXAMINATIONS FROM OCTOBER 2003

TO OCTOBER 2008: A TOOL FOR IMPROVING INSTRUCTION
Jenifer M. Perez, MBA
Ma. Conception P. Manalo, MBA
Illuminado Jose Ochoa
1

Faculty Members, CABEIHM

ABSTRACT

The study analyzed the performance of CABEIHM graduates in the

CPA Licensure Examinations given by the Professional Regulation
Commission (PRC) from October 2003 to October 2008. Two hundred two BS
Accountancy graduates of CABEIHM who took the CPA examinations in the
aforementioned period were the subject of the study. There were graduates
who participated in the study more than once because they took the CPA
examinations in two or more different periods.
The ratings obtained in the seven subject areas of the CPA board
exam, namely, Theory of Accounts, Business Law and Taxation,
Management Services,
Auditing Theory , Auditing
Problems,
Practical Accounting Problems I, and Practical Accounting
Problems II were the bases in analyzing the performance of the BS
Accountancy examinees of BSU CABEIHM. School performance was also
measured based on the ratio of number of passers and number of examinees
from CABEIHM as compared with the national passing percentage in a given
period.
Significant findings of the study follow. From October 2003 to
October 2008, mean performances in the areas of Theory of Accounts,
Business Law and Taxation, Auditing Theory, Auditing Problems and
Practical Accounting Problems II showed fluctuating trend. On the other
hand, Management Services showed an upward trend with a slight decrease
in October 2007 and Practical Accounting Problems I showed a steady trend.
Results also revealed that there was significant difference in the
school performance of Batangas State University and the national passing
percentage from October 2003 to October 2008. Furthermore, the mean
performance of CABEIHM graduates was highest in Practical Accounting
Problems I and lowest in Auditing Theory. It was also revealed that there was
a significant difference in the mean performance in Practical Accounting
Problems I and Management Services.
Introduction
CPA Board Examination
has been regarded as one of the
licensure examinations with a low
passing percentage, as indicated
by an average of 18.40 percent
from 1997 to 2001, according to
the statistical data released by the
Philippine Regulatory Commission
(PRC). Due to this scenario, the
Commission on Higher Education
(CHED) has taken steps to uplift

the Accountancy Program. Its main

objective is to improve the
accountancy education in the
country and in turn increase the
percentage of passers in the CPA
Board Examination.
The
Batangas
State
University (BSU) first offered the
course Bachelor of Science in
Accountancy in 1999. Based on
the results of the CPA Board
Examination, in the past six years

43

BSU passing percentage had been

consistently above the national
passing percentage. This is a
positive indication; however, in
order to maintain and improve this
performance, there must be a
continuous
improvement
in
accounting education.
As the department engages
in training and educating future
CPAs, part of the College of
Accountancy,
Business,
Economics
and
International
Hospitality
Managements
(CABEIHM) responsibility is to
prepare its students for the CPA
Licensure Examination.
This
study could help the department in
determining the performance of the
CABEIHM students in the CPA
Licensure
Examination
which
could be a basis for improving
instruction.
Objectives of the Study
To
analyze
the
performance
of
the
BS
Accountancy
graduates
of
CABEIHM in the CPA Licensure
Examinations given by the PRC
from October 2003 to October
2008.
1. To find out the performance
of the CABEIHM graduates in the
CPA Licensure Examinations in
the following areas:
1.1. Theory of Accounts
1.2. Business Law and
Taxation
1.3. Management Services
1.4. Auditing Theory
1.5 Auditing Problems
1.6
Practical Accounting
Problems I, and
1.7
Practical Accounting
Problems II
2. To determine the area in
which graduates performed best in
the said examinations

3.
To
compare
the
performance
of
CABEIHM
graduates to the national passing
percentage from October 2003 to
October 2008
Methodology
Research design.
The
descriptive method of research
was used. Specifically, the type of
descriptive method used was
documentary analysis because the
study
involved
gathering
information by examining records
and documents (Sevilla, et.al.,
1992).
Subject of the study.
Two hundred two BS Accountancy
graduates of CABEIHM who took
the CPA exams from October 2003
to October 2008 were the subject
of the study.
There were
graduates who became subject
more than once because they took
the CPA Licensure Examination in
two or more different periods.
Data
gathering
instrument.
Documents and
records from PRC were the
sources of the secondary data
needed to assess the performance
of the CABEIHM BS Accountancy
graduates in the CPA Licensure
Examinations from October 2003
to October 2008.
Data
gathering
procedure. A letter of request to
make available the results of the
CPA Licensure Examinations from
October 2003 to October 2008 for
the BS Accountancy graduates of
Batangas University was sent to
the
Officer-in-Charge
of
Educational Statistics Task Force,
the department at PRC handling
results of examinations.
After
permission was granted, the
researchers obtained all the
needed data for the study.
However, some of the data were
incomplete (i.e. in 2003 one of the
passers is not included). Other

44

factors relevant to graduates

performance were not included in
this study
Other reference materials
were also used to gather related
literature. The Internet was a major
source
of
other
needed
information. The BSU library was
also visited to obtain relevant data.
Statistical treatment of
data.
One-way analysis of
variance (ANOVA). was used to
determine the differences in the
performance
of
CABEIHM
graduates with regards to subject
areas. Then to determine where
the significant difference in the
performance in the seven subject
areas lies, the Scheffes test was
used. For the difference between
CABEIHM graduates performance
and
the
national
passing
percentage, t-test (population vs.
sample) was used
Findings and Discussion
1. Performance of the CABEIHM
Graduates in the CPA
Licensure Examinations in
the following areas:
1.1. Theory of Accounts
Figure
2
shows
the
average performance of CABEIHM
graduates
every
examination
period in the Theory of Accounts
subjects. This area covers all
accounting theories starting from
Basic Accounting, Partnership and
Corporation, Cost Accounting, up
to Financial Accounting.
The graph shows that the
highest mean of 76.31 was
achieved in October 2007 and the
lowest mean of 69.18 was attained
in May 2004. The composite mean
from October 2003 October 2008
is 72.71. The graph shows a
fluctuating trend from October
2003 until October 2005, but
reflected an improvement of

performance from October 2005

up to its peak, October 2007. The
improvement of the performance
could be attributed to the
intensified
retention
policy
(Qualifying Exams and maintaining
grade) that has been strictly
implemented by the Department.

1.2. Business Law and

Taxation
Figure 3 presents the
average performance of CABEIHM
graduates
every
examination
period in the Business Law and
Taxation subjects, the area which
covers Obligation and Contract,
Law
on
Partnership
and
Corporation, Law on Sales,
Agency and Bailment, Law on
Negotiable Instruments, Income
Taxation and Business and
Transfer Taxation. This is a
combination of theories and
problems.
As given in the graph, the
highest mean of 74.40 was
achieved in May 2008 while the
lowest mean of 69.33 was
obtained in October 2005. The BS
Accountancy
graduates
performance
in the CPA
Licensure Examinations covering
October 2003 October 2008
recorded a composite mean of
72.5. The graph shows a
continuous fluctuation of Business
Law and Taxation result but the
ranges are not far from each other,
In general, October performance is
better than May performance
probably because the October
examinees are fresh graduates

45

and have full time review while

some of the May examinees are
summer graduates, some are
already
working,
and
other
repeaters cannot afford to have
another full time review.

1.3.

Management
Services

The average performance

of CABEIHM graduates every
examination
period
in
the
Management Services subjects is
contained in Figure 4. This area
covers Management Accounting
and Consultancy Services.
It is evident from the graph
that the highest mean of 79.58 was
recorded in May 2007. On the
other hand, the lowest mean of
71.04 was obtained in October
2004. The composite mean from
October 2003-October 2008 is
75.02. This area is usually the
strength of the BS Accountancy
graduates, perhaps because the
subject matters are simpler than
those of
accounting, auditing
theory and problems and business
and taxation subjects.

1.4. Auditing Theory

Figure
5
shows
the
average performance of CABEIHM
graduates
every
examination
period in the Auditing Theory
subject.
This is one of the
toughest CPA Board subjects; this
area is only a 3 to 6 unit load of a
BS Accountancy student. It seems
that the allotted time is insufficient
to tackle all the necessary
discussions and applications of the
Auditing Theory.
The graph reveals that the
highest mean of 73.17 was
achieved in May 2007 while the
lowest mean of 67.55 was attained
by the first batch of examinees in
October 2003.
The composite
mean from October 2003
October 2008 is 70.79. This is the
lowest composite mean among all
CPA
Board
subjects
and
considered to be the thorn of
thorns of the exam.
Some
examinees failed because of this
subject. They have already
attained the passing average but
unfortunately got a grade lower
than 65 on this subject.

1.5. Auditing Problems

Figure 6 presents the
average performance of CABEIHM
graduates
every
examination
period in the Auditing Problems
subjects. Examination in this area
involves a caselette format, that is,
a single board question involving
several chain questions. This kind
of examination format started in

46

2000. Examinees became aware

of this type, thus, focused their
attention
on
solving
similar
questions.
The inclusion of
caselette prompted educators and
reviewers
to
revise
their
instructional
materials
to
incorporate such change.
BS
Accountancy students taking this
subject are given adequate
exposures in answering chain
problems and are trained to
analyze and apply concepts on
auditing standards, techniques and
procedures using this kind of
format.
Results show that the
highest mean of 75.64 occurred in
May 2005 and the lowest mean of
67.86 in May 2006.
As can be
noted in Figure 6, there is a
gradual
increase
in
the
performance of examinees in this
subject until it reached its peak in
May 2005. The rising trend in
performance was broken in May
2006, the CPA Board Examination
when
the
BSU
examinees
garnered the lowest mean. The
reason behind this drop in
performance was due to the
revision of the format of the
caselette.
The three to five
questions were increased to about
10 to 12 questions for every item,
making it trickier and a bit more
difficult
for
examinees
to
comprehend.
Then effective
October 2005 there was a change
in the board of examiners.
Certainly, a change in the
composition of the board of
examiners can mean change in
style in the examination items,
concentration
and
type
of
examination.

1.6.
Practical
Problems

Accounting

The average performance

of CABEIHM graduates every
examination period in the Practical
Accounting Problems I subjects is
contained in Figure 7. The graph
shows that the highest mean of
88.11 happened in October 2005.
Conversely, the lowest mean of
71.17 occurred in May and
October 2007. The graph shows a
rather less erratic change as
compared to the other subjects. It
also
discloses
that
the
performance
of
CABEIHM
graduates in this subject does not
vary drastically as compared to
other subjects.
Since Practical
Accounting I is the heart of
accounting for it is concerned with
preparation of financial statement
and
accounting
for
Assets,
Liabilities
and
Stockholders
Equity, examinees are well trained
regarding these topics.
In the
undergraduate
level,
the
discussions in this subject are
thorough, making the candidate
ready and equipped with sufficient
knowledge and skills.
October 2005 proved to be
fruitful because the CABEIHM
examinees garnered the highest
mean.
The
commendable
performance
of
CABEIHM
examines was due to the big
number of examinees during this
period who were repeaters.
Further, this examination involved
short questions with a single
unknown making it easier for

47

examinees
to
answer
accumulate points.

and

1.7. Practical Accounting

Problems II
Figure 8 shows the
average performance of CABEIHM
graduates
every
examination
period in the Practical Accounting
II subjects.
These subjects
involve a variety of concepts
making them more complicated
and complex to apply.
It is evident from the
graph that the highest mean of
77.23 was obtained in October
2007.
It could be said that the
candidates who took the exam in
October
2007
were
better
prepared for the questions in the
licensure examination.
Another
reason may be the period of
examination. Since October is the
second exam of the year, a greater
number
of
candidates
are
repeaters.
This group of
examinees has already been
exposed to the type of questions in
the CPA licensure examinations;
hence they have an edge over the
first timers.

Practical Accounting II subjects,

though procedural in nature, are
more analytical and critical.

2.

Comparison of the
Performance
of
CABEIHM Graduates
and
the
National
Passing Percentage

It can be gleaned from Table

1 that the Batangas State
Universitys performance in terms
of
passing
percentage
is
consistently higher than the
national passing percentage. The
highest passing rate of 64.28
percentage of Batangas State
University was achieved in May
2005 while the lowest passing rate
of 38.89 percent occurred in
October 2005. The most inspiring
result happened in the same year.
The University was awarded thrice
as the Top Three Performing
School (10-25 examinees), in May
2004, October 2004, and May
2008 CPA Board Examinations.
This commendable performance of
BSU examinees in the CPA
Licensure Examination is a
manifestation of the Universitys
continuing
commitment
to
excellent education.

However, October 2008

examination yielded the lowest
mean (73.00) because new
standards and concepts were
introduced in the topics comprising
these subjects, thereby creating a
change in the questions and
applications of the concepts.
Candidates were less prepared for
these changes.
Furthermore,

48

Table 2 shows the

result of one way variance
analysis which shows that
there is a highly significant
difference in the school
performance of Batangas State
University and national passing
percentage, thus the null
hypothesis that there is no
significant difference between
the performance of BSU
examinees and the national
passing percentage is rejected.

3.

Strengths
and
Weaknesses
of
CABEIHM Graduates
as Indicated by the
Results of the CPA
Licensure
Examinations

The
high
mean
performance
in
Practical
Accounting Problems I in the past
years may be explained by the
following reasons: (1) The students
devoted more time in this subject
during college years because this
is a 15-unit subject in the BSA
curriculum; and (2) Students have
more focus in this subject because
this is taken up in the second year
in college wherein there is lighter
subject load.
Auditing Theory, on the
other hand, obtained low mean
performance. This could be due to
the insufficient academic time
alloted for instruction of this
subject since it was only a 3-unit
subject in the old BSA curriculum.
Also another factor was the
textbook used
which was too
concise to fully explain the topics.
This low performance could also
be
attributed
to
the
poor
comprehension skills of some
students.
Moreover,
students
tended to get bored in the subject
because of its abstract concepts.

The mean performance of

CABEIHM graduates in the CPA
Licensure
Examinations
from
October 2003 to October 2008 is
presented in Figure 9. These data
reveal the candidates strong and
weak areas.
The subject areas with the
highest
and
lowest
mean
performance
are
Practical
Accounting Problems I (75.85)
and Auditing Theory (70.79),
respectively. Based on the mean
performance for the said period,
order of ranking starting with the
highest mean follows: Practical
Accounting
Problems
I,
Management Services, Practical
Accounting Problems II, Theory of
Accounts, Business Law and
Taxation, Auditing Problems and
Auditing Theory.

Using the Scheffes test,

the examinees mean performance
in Practical Accounting Problems I
and Management
Services
subjects differs significantly at .05

49

level. This can be explained by the

difference in the nature of the
subject
matter.
Practical
Accounting Problems I is more of
standard based while Management
Services emphasizes analytical
approach to problem solving. In
addition to this, the former focuses
on problem solving while the latter
is a combination of theories and
application.

Recommendations

Conclusions

2. The retention policy of

CABEIHM should be strictly
enforced to ensure that only
qualified students should be
accepted to the BS Accountancy
(BSA) program of study.

Based on the findings of

the
study,
the
following
conclusions were drawn:
1. The fluctuating trend in
the mean performances in the
areas of Theory of Accounts,
Business Lawa and Taxation,
Auditing
Theory,
Auditing
Problems and Practical Accounting
Problems II reveals an unstable
performance
of
BSU
CPA
examinees in the aforementioned
areas. On the other hand, the
upward trend of Management
Services with a slight decrease in
one examination period and the
steady
trend
of
Practical
Accounting Problems II diclose a
more stable performance of the
examinees in these areas.
2.
There is a significant
difference
in
the
school
performance of Batangas State
University and the national passing
percentage in the CPA Licensure
Examinations from October 2003
to October 2008.
3. Significant difference in
the mean performance lies in the
subjects
Practical
Accounting
Problems I and Management
Services which may be attributed
to the differences in the nature of
the subject matter of these two
subjects.

Based on the foregoing

conclusions,
the
following
recommendations are proposed:
1.
The College should
continue to study the success
indicators and causes of failures of
the graduates in the CPA
Licensure Examinations.

3. The BSA curriculum

should be continuously reviewed
and enriched to make it responsive
and relevant to the needs of
changing times.
4. The University should
strengthen faculty development
through seminars, trainings and
graduate studies in the field of
accounting.
5. Linkages with other
institutions like review schools and
colleges and universities offering
BS Accountancy should be
established in order to enhance
accounting instruction.
6.
Special review
sessions should be conducted for
graduating students focusing on
Auditing Theory and Business Law
and Taxation by inviting guest
lecturers
who
possess
the
expertise in the said fields.
7.
Immersion in
auditing firms or any related
industry should be conducted as
part of the requirements in the
subjects Auditing Theory and
Auditing Problems.
8. Use of accounting
and auditing software as part of

50

instructional materials in
Auditing
subject
should
encouraged.

the
be

Literature Cited:

ELECTRONIC SOURCES:
www.ched.gov.ph
www.picpa.com.ph
www.prboa.com
www.thefreedictionary.com
www.wikipedia.org

Bala, John S., Ph.D. (2006). The

CPA Board Examination
Results:
A
Statistical
Analysis
Bonot, Marietta a., Ed.D. (2001)
Performance
of
the
College
of
Teacher
Education Graduates in the
Licensure Examination for
Teachers
Briones, Flora A. (2003). To Be or
Not to Be a CPA: Answer
Revealed by Performance
in the Licensure Tests
Polytechnic University of
the Philippines Manila
Revised
CPA
Licensure
Examination Syllabi
Rules
and
Regulations
Implementing Republic Act
NO. 9298 (The Philippine
Accountancy Act of 2004)

51