Factors Affecting Students’ Chances of Passing the Cpa Board Exams

CHAPTER I

RESEARCH PROBLEM

This chapter begins the research problem and provides background information concerning the topic. It also comprises the statement of the broad and exact research questions, the null and alternative hypothesis, significance of the study and the scope and limitation.

1. BACKGROUND OF THE STUDY

Becoming a Certified Public Accountant (CPA) is not an easy task. One of the requirements is to finish a degree of Bachelor of Science in Accountancy and pass the CPA board exam. Passing the examination is not easy as counting numbers in your hands. It requires a great determination, passion and hard work. As many critiques would say, the CPA licensure examination is one of the most difficult board examinations in the entire history of the Philippine career professionalism. The Philippine Accountancy Law (RA 9298, Section 16), clearly states that to be qualified as having passed the licensure examination for accountants, a candidate must obtain a general average of seventy-five percent (75%), with no grades lower than sixty-five percent (65%) in any given subject. In the event a candidate obtains the rating of seventy-five percent (75%) and above in at least a majority of subjects as provided, he/she shall receive a conditional credit for subject passed; provided, that a candidate shall take an examination in the remaining subjects within two years from the preceding examination.

The Commission on Higher Education (CMO-03-S2007) warned that schools offering Bachelor of Science in Accountancy that have poor performance of their graduates in ten CPA Board examinations within a period of five years could lead to the gradual phase-out and eventual closure of the school‘s accountancy program. In a recent study, one of the factors that affect the chance of the performance of the students in passing the CPA Board Exam is the quality and standard of education of particular school provides. It is an indicator of the kind of educational training and learning that were provided by the school.         

National Polytechnic College of Science and Technology, Inc. (NPCST) is one of those non-stock, non-profit educational entities offering Bachelor of Science in Accountancy (BSA) course. The need to find out what factors affecting the chances of students to pass the CPA Board Exam is the objectives of this research. Lot of factors affect the decision of students to take the board examination. The result of licensure examinations would be a test of the quality of faculty service delivery and what the students has received. Performance of students in the Bachelor of Science in Accountancy is best tested with the actual results in the Philippine CPA Licensure Examination. A closer look at sampled members of NFJPIA-NPCST Chapter students’ performance would create a basis of enhancement on how to improve a program’s current passing rate and would serve as reflection of how effective the teaching-learning process is.

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1.2 STATEMENT OF THE PROBLEM

This research study focuses on factors affecting students’ chances of passing the CPA Board Exams.

Specifically, the study attempt to answer the following questions:

1. Why respondents find difficulty in the following CPA Board Exam subjects:

a. Auditing Problems

b. Advance Financial Accounting and Reporting

c. Financial Accounting and Reporting

1. Income Taxation and Business Taxes
2. Management Accounting

2. To what extent respondents are interested in taking accountancy and to pass CPA Board Exam?

3. Why respondents’ lose interest in reviewing to have passed the CPA Board Exam?

4. How study habits affect respondents’ chances of passing the CPA Board Exam?

5. How other factors like absence of emotional and lack of mental preparedness affects respondents’ chance to become CPAs?

1.3 HYPOTHESIS

The hypothesis tested in this study is:

1. There is no significant relationship between the factors affecting the chances in passing CPA board exams and sampled members of  NFJPIA in terms of:

1. Difficulty of  CPA board exams subjects
2. Interest in accounting
3. Lose of interest in taking and passing CPA board exam
4. Study habits in preparation for the examination
5. Emotional and mental preparedness

Likewise, listed down are the alternative hypotheses:

1. There is a significant relationship between factors affecting the chances of passing the CPA Board Exam and sampled members of NFJPIA.

1.4 SIGNIFICANCE OF THE STUDY

This research work will be beneficial to the following groups:

1. Accounting Students

This study will be beneficial to accounting students to help them evaluate and know more about the factors that may influence their chances in passing the board exam. Giving them insights that could possibly affect their decision in taking the licensure examination.

1. Alumni
        Definitely, this will be useful to the alumni who took the board exam but failed. This tends them to know about the factors that can be prevented to help them increase the chances to pass the board exam.
2. NPCST and other Colleges or Universities

For sure this research will provide them into having knowledge how they can help the students about the factors affecting the chances to pass the CPA Board Exam.

1. Parents

It will give parents the awareness and idea about the factors that could affect students’ performance chances in passing the board exam. This enables them to know more about the emphasis of students’ persistence to work toward their goals, study habits and passion in accounting.

1. Future Researchers

This study might as well be beneficial to future researcher who will carry out further research and serves as a guide in the study they will make in the near future.

1.5 SCOPE AND LIMITATIONS

Performance of students in the Bachelor of Science in Accountancy Program is best tested with the actual results in the Philippine CPA Licensure Examination. Thus, .researcher would like to know about the factors that affect the chances of the student to pass the licensure examination but because of want of time the researchers limit their research work in National Polytechnic College of Science and Technology (NPCST).