What does it take to be a Certified Public Accountant (CPA)?
Being a CPA requires more than just the four to five years stay in college to study
accounting, the countless number of quizzes, exams and retention requirements, and
the months of review for the board exam.
Yearly, thousands of hopefuls take the CPA board exam, yet only 30 percent to 40
percent pass the exam and qualify to get the certification. Through such tough
regulatory measures, those who pass are expected to be competent enough to uphold
the values of integrity, objectivity, professional competence and due care,
confidentiality, and professional behavior. Such professionals are expected to provide
excellent, qualitative service to the country through their knowledge in services, such
as audit, taxation and advisory, among others.
Republic Act No 9298, otherwise known as the “Philippine Accountancy Act of
2004”, is the law that regulates the practice of the accounting profession in the
Philippines. Accordingly, the law recognizes the invaluable contributions of
accountants in nation building and development.
ACCOUNTING IN THE PHILIPPINES
The Philippine public accounting practices originated in the 1700s, but it was on March
17, 1923, when the accounting profession was formally recognized by the Philippine
government. Such formalization served as an initial move toward the growing
accountancy profession in the country, and was written through Republic Act (RA)
3105. Through such Act, the Board of Accountancy was created and vested with the
authority to issue certificates to qualified applicants. Such certificate serves as a
tangible proof of passing the rigorous process of being a CPA, which includes passing
the CPA board exam, among others; it is a symbol of years of hard work and
perseverance, and finally, a fruit of one’s labor.
From only having 43 registered accountants in 1923, the number of Certified Public
Accountants has increased to hundreds of thousands. With the world’s growing need
to understanding the language of business comes the increasing demand, as well, for
accountants who are expected to know and give sense of the figures in the financial
statements. The Philippine law on accountancy recognizes the importance of
accountants in nation-building and its development. The revisions in the accountancy
law prove how the accounting profession continues to develop and move forward, and
more revisions are expected in the future.
Did you know?
Vicente Fabella was the first Certified Accountant in the Philippines. He had a
Philosophy Degree from the University of the Philippines before migrating to the
United States and taking the CPA Licensure Examination in 1915. Fabella was
recognized as the first Filipino CPA and made valuable contributions to the CPA Law of
the Philippines. His office became the cornerstone of ACT 3105, known as the
Philippine CPA Law, in 1920. The formal establishment of the accounting profession in
the Philippines is due to the first Filipino Certified Accountant, Vicente Fabella.
ABOUT PICPA
The Philippine Institute of Certified Accountants or PICPA is the accredited professional
organization (APO) of CPAs by the Professional Regulation Commission (PRC) and has
been awarded five times as PRC most outstanding APO from among other professional
organizations. PICPA was founded in November 1929 by a group of illustrious pioneers
in the accounting profession: Enrique Caguiat, Santiago de la Cruz, Francisco Dalupan,
Jaime Hernandez, Felipe Ollada, Ramon del Rosario, Antonio Sanchez, Jose Torres,
Artemio Tulio, Clemente Uson and Jesus Zulueta. W. W. Larkin, holder of CPA
Certificate No. 1, was its first president.
The group set forth the following objectives:
To promote and maintain high professional and ethical standards among
accountants;
To advance the science of accounting;
To develop and improve accountancy education;
To encourage cordial relations among accountants, and
To protect the Certificate of Certified Public Accountant granted by the Republic
of the Philippines.
Over the years, PICPA has been sustaining its accreditation with PRC. The
accreditation started on October 2, 1973, when PICPA was awarded Certificate of
Accreditation No. 6, by then PRC Chairman Eric Nubla, after having complied with the
requirements for accreditation under Presidential Decree No. 223. This distinction,
which recognized the Institute as the bonafide professional organization of CPAs,
likewise gave PICPA the responsibility of setting into motion a scheme for the
integration of all CPAs in the country.
FACTS ABOUT ACCOUNTING
1. The word “accounting” originated from Old French “acont” meaning account,
reckoning or terminal payment.
2. The word accountant in the English language is derived from the Old French
word “compter”.
3. The first recorded name in history belonged to an accountant.
4. Bubble gum was invented by an accountant.
5. Before there was a standard numbering system, accountants kept track of
animal and grain with clay tokens.
6. Luca Pacioli developed the field of accounting.
7. Income tax was originally introduced as a temporary measure to finance war
against France.
8. The words debit and credit come from the latin words debitum and creditum.
9. Accountants spend approximately 1700 hours hand counting ballots for the
Academy Awards.
10. The FBI employs over 2000 accountants.
What is CPALE?
The CPA board exam or CPA Licensure Exam (CPALE) is known to be one of the
toughest licensure exams out there. It's challenging, yes-but it's not impossible to
pass. If you' re currently studying Accountancy, here are some important things you
should know about the CPA board exam in the Philippines for 2025.
The reason it's a difficult exam is because becoming a CPA is a big deal. It's a
respected profession, and CPAs are needed in many areas, especially business and
finance. In a growing country like the Philippines, CPAs have a big role in keeping
businesses and the economy on track.
If you' re planning to take this path, let's first get familiar with what the CPA Board
Exam is all about.
The CPALE is the official licensure exam for those who have completed a Bachelor of
Science in Accountancy and want to become Certified Public Accountants. In the
Philippines, the Professional Regulation Commission (PRC) sets the exam schedule
each year for qualified graduates who are ready to take the next big step in their
careers and become CPAS.
CPA Board Exam Subject Coverage and Scope:
Management Services
Auditing
Taxation
Regulatory Framework for Business Transactions
Financial Accounting and Reporting
Advanced Financial Accounting and Reporting
WHAT CAN I DO WITH AN ACCOUNTING DEGREE?
Accounting refers to recording and maintaining records of financial transactions for
businesses. Accountants also create reports that summarize and analyze the data to
help assess the financial health of the business and to look for any errors or
discrepancies in the financial records. There are different areas of accounting,
depending on type, focus, and purpose. The most common branches of accounting
are:
1. Financial Accounting - Prepares financial statements for external users.
2. Managerial Accounting - Provides financial data for internal decision-making.
3. Cost Accounting - Tracks and analyzes production costs.
4. Auditing - Examines financial records for accuracy and legal compliance.
5. Tax Accounting - Prepares tax returns and plans strategies to minimize tax liability.
6. Forensic Accounting - Investigates fraud and financial crimes. Used in legal cases
and dispute resolution.
7. Government Accounting - Manages and reports public sector finances.
8. Nonprofit Accounting - Tracks funds for nonprofit organizations.
9. International Accounting - Applies accounting across countries. Uses international
standards like IFRS.
10. Environmental (Sustainability) Accounting - Measures environmental and social
impact.
Study Smart, Not Hard: Accounting Study Tips!
Team up. The first mistake students make, Waldrup noted, is to study alone. "At
Loyola we say that studying should be a team sport," he said. So, find a study
buddy and pair up.
Don't just memorize and cram. Rote memorization is no longer enough. In
school, peruse your material before class so you can be prepared with
questions. Also, keep up with the material throughout the course rather than
cramming right before a session or exam.
Don't underestimate study time. Devote two hours outside of class for every
hour you spend in class, Waldrup advised. If you have a three-hour class, devote
six hours of studying before the next one.
Allow for setbacks. Consider that you could fail one portion of the CPA Exam,
so study sections of the exam that are the most difficult for you first so you can
properly schedule any additional attempts you may need — just in case you trip
up
Seek help. If you are struggling with your studies, request assistance early.
Students often "wait until they are failing to reach out," Bickel noted. "We need
to honestly evaluate our strengths and weaknesses and be willing to ask for
help."
Stay focused. Block out a time and location for coursework, and focus solely
on your studies.
Use Real-Life Examples. Try to connect what you’re learning to real-life
situations. For example, think about how businesses manage money or how
personal finance works. This makes the concepts more relatable and easier to
understand.
Break It Down into Small Chunks. Accounting can feel overwhelming if you
try to study everything at once. Break your study material into smaller,
manageable chunks. Focus on one topic at a time, then move to the next. It’s
easier to remember this way.
"When students have difficulty focusing on their studies, it has a domino effect on the
preparation for the CPA Exam and on obtaining the best positions in the CPA firms,"
said Bobby Waldrup, CPA, Ph.D.
In other words, how you study is all-important if you want to succeed in school, on the
CPA Exam, and at your first job once you've graduated.
