FULL-BLOWN RESEARCH PROPOSAL

I. BASIC INFORMATION

1. Project/Project Title: Factors that Affect the Performance of

Accounting Graduates of Eastern Samar

State University (ESSU) – Borongan Campus

in the CPA Licensure Examination

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II. TECHNICAL DESCRIPTION

1. Introduction

a. Nature and Significance/Justification of the Study

One of the difficult examinations administered by the Professional

Regulation Commission (PRC) is the Certified Public Accountant (CPA) Licensure

Examination. According to Dr. John S. Bala (2008), the Vice Chairman of the Board

of Accountancy as cited by Ballado-Tan (2014), that of all the professional

examination administered by Professional Regulation Commission (PRC), CPA

Licensure Examination marked one of the professions with the lowest passing

percentage for every examination period.

The licensure examination is a proof of one’s assessment of educational

standard of the graduates and even the quality of education that the university

undertakes. According to PRC, a licensure examination qualification allows people to

develop into a certified professional with personal integrity and moral values to

become globally competitive.

Passing the licensure examination for CPA is not an easy. It entails

determination, perseverance, dedication and hard work. You must try to live with it

and overcome it. Performance during the licensure examination is one of the

indicators of the quality of education the university partakes to their graduates. The

Accountancy program of the university has been in an erratic condition in licensure

examination. It has a fluctuating passing percentage over examination period. It is

sometimes above the national passing percentage but more often below the national

passing percentage. It is by this study that the researcher would like to determine the

factors that can affect the performance of the graduates in the licensure examination.

The demand for accountants in the business environment is increasing. It

is highly regarded by the university that it can contribute caliber graduates that are

globally competitive with other graduates of different universities. It is a merit of the

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university to determine the factors that can affect the performance in the CPA

licensure examination for the reason that it can assess the effectiveness of its

policies on faculty development, provision for facilities, and other administrative

support affecting the accountancy program which can also be helpful in future policy-

making decisions of the administrators.

The faculty of the accountancy department can use the results of this

study by incorporating them in their teaching methods or strategies and in the

formulation of the admission and retention policies in their goal of improving the

performance of its graduates in the CPA licensure examination.

The results of the study can also be used by accountancy students in

planning for taking the licensure exam through proper management of the factors

cited in this study which are within their control considering their effect in passing the

CPA licensure exam.

Moreover, the objective of the study is to determine what factors affect the

performance of the accountancy graduates of Eastern Samar State University in the

CPA Licensure examination.

b. Research Questions/Objective of the Study

The study will specifically answer the following questions:

1. What are the perceived factors that correlate with the performance of

accountancy graduates in the CPA licensure examination in terms of:

a. personal related factor

i. academic performance

ii. academic competence

iii. study habit and study strategies

iv. attitude towards accounting

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 b. environmental factor

i. instruction

ii. school facilities and resources

iii. review classes

iv. test competence

2. What is the respondents’ performance in the CPA Licensure Exam?

3. Which of the perceived factors can affect the performance in the CPA

licensure examination?

c. Definition of Terms

The following terms are defined operationally in the study:

Environmental factors – it refers to external factors that may cause to

affect the performance in the licensure examination

Personal related factors – it refers to the preference of the graduates

which they think might affect their performance in the licensure examination

2. Review of Literature

Ballado – Tan in her study draws to a very large measure from Heider’s

attribution theory which was later refined and advanced by Orvis, Cummingham and

Kelly together with Deci. According to the attribution theory, as cited by Mateo

(1998), occurrence of events is attributed to two factors- personal forces and

environmental forces. Central to Heider’s theory is the assertion that man perceives

events of critical importance for the interpretation of human work; such causes could

be traced to factors located within the person and those that are drawn from the

environment of the person. In the context of this assessment, it can mean that the

accountancy graduates’ performance in the CPA licensure examination is interplay of

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certain attributes inherent in the person and the forces of the environment which he

or she is a part of – the institution which provided his training.

Sabas (2001) cited Siegel and Jane’s study that a physically comfortable

and stimulating environment most likely would serve to enhance performance or

emergence of positive responses which are manifested by high organismic activation

bringing about or high level of performance.

Another factors that can contribute to the success of the examinees are

(1) time lapse; (2) personal study plan; (3) self confidence; (4) study habits; (5)

school facility; (6) group study; (7) faculty; (8) environment; (9) language; (10) age;

and (11) gender. These factors have a significant effect on the performance in the

board exam. (Baun, S., Carreon, N. Dizon, J. et.al)

Brahmasrene and Whitten (2001) surveyed candidates in the state of

Indiana to examine the factors that may affect the probability of passing the CPA

exam. Using a logit model they test the probability of passing the exam in relation to

variables such as undergraduate grade point average (GPA), credit hours, high

school GPA, high school class size, age, high school rank, educational level, type of

preparation for the CPA exam, nature of work experience, gender and race. The

result of the study showed that both models indicate that the factors that significantly

influence the probability of passing the exam are undergraduate GPA, age, private

accounting experience and gender. Males seem to be more successful than women

in passing the exam. The authors suggest that a possible explanation is the format of

the exam but further research is recommended in this regard. Older candidates

perform better, specifically those participating in live CPA reviews. Participating in a

review course, regardless of the type, seems to be better than having no review

course at all, although live reviews seem to be better than other types. Having private

sector experience seems to help in achieving a successful outcome in the exam.

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 Titard and Russell (1989) examined relatively recent success rates for

both first-time candidates and repeat candidates on a national basis (prior to the

computerized version of the exam), and consider some factors that might explain the

reasons for success. The data examined was provided by NASBA for the four

examinations conducted during 1985 and 1986. The study examines passing rates

by subject matter for first-time and repeat candidates. The factors considered are

grade-point average (GPA), advanced degree, public accounting experience and

supplementary study such as a CPA review course. The authors find that a

candidate’s GPA and having advanced degrees seems to improve the passing rates

on all four parts of the CPA exam. The years of experience in public accounting

improve the pass rate on the parts formerly known as Auditing and Practice but do

not improve the pass rate on the remaining two parts known as Law and Theory. In

addition, the results obtained suggest that supplementary study such as CPA review

course had a positive effect on the exam’s pass rate.

In contrast, Ashbaugh and Thompson (1993) studied the factors

associated with passing the four parts of the CPA exam on the first attempt but using

other variables. They collect data from 234 candidates for the years 1989 and 1990

from a medium-size Midwestern university. The authors use discriminant analysis to

compare two groups: those passing the exam at the first attempt and those who have

not. They use four independent variables: high school class size, high school class

rank, combined ACT score and grade in a CPA review course taught at the

university. The results show that the factors that significantly contributed to the

success or failure on the exam were high school class size, high school class rank

and grade in the CPA review course. The larger the high school attended by the

candidate and the higher he or she ranked in the class, the higher the probability of

passing and achieving outstanding performance. Regarding the CPA review course,

those students who earned an A or a B in the course and have the above

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characteristics have a higher probability of passing the exam. The authors suggest

that input variables have a strong influence on a candidate’s performance in the CPA

exam.

Ballado-Tan concluded in her study entitled, “Performance in the

Accountancy Licensure Examination of the University of Eastern Philippines: A Look

at Curriculum and Instruction,” that provision on instruction are found out to have a

significant relationship to performance in the CPA licensure examination. Inasmuch

as the respondents found it to be present, there are some defects in the area of

instruction. There is a need therefore to implement the learning assistance program

of the university to cater the slow learners through coaching, peer teaching and

remedial classes. This denotes that extensive implementations of provisions related

to instruction such as proper observance on provisions related to syllabus,

instruction-enriching activities, evaluation of student achievement, and others, should

be done to improve the performance of UEP in the CPA licensure examination.

Moreover, in terms of school’s physical resources and facilities, teaching

and learning process is affected of library collection and holdings, classrooms which

are free from distraction and other facilities like consistent standby power in case of

brown-out, sufficient classrooms and accessible fire and safety devices. These

provisions although, found to have no significant effect on performance, still need to

be improved and maintained to facilitate an effective teaching and learning process.

Performance in the licensure examination can be attributable to academic

performance, students’ aspirations, attitudes and study habits. The students of the

program have high hopes of becoming successful in the future. This could be

implicated that the Accountancy program is viewed as a stepping stone for them to

achieve the desires that they want to attain. Hence, despite the difficulty posed by the

accounting subjects, they still have favorable attitude towards it. The favorable

attitude can also be attributed to the approach they employed in studying their

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subjects. The achievement of the CPA license is generally dependent on persistence

in working towards that goal, specifically through studying hard while in college,

coupled with positive attitude and behavior towards accounting. The positive attitude

towards accounting paired with effective study habits might lead to higher academic

performance and therefore higher chance of passing the board exam. To be able to

graduate in the program and later on pass the board examination, there is a need for

the prospective freshmen to have a passion for the field they are entering into

because no matter how effective the other factors would be, at the end of the day,

what will make them really successful is their love for the field that will make them

conquer all adversities that they may face.

In the contrary, Garcia in his study entitled, “Academic Performance as

Determinant to Pass the Licensure Examination for Teachers,” concluded that the

correlation coefficient between examinee’s academic performance and licensure

examination rating is very high in the Field of Specialization subjects, weak positive

correlation in the Professional Education subjects. However, correlation in examinees

academic and Licensure Examination for Teachers rating in general is moderately

significant. Academic performance (grade average) of examinees gives no

assurance (not a determinant) on passing PRC (LET) examination.

Mendezabal (2013) allude to the result of her study that the participants do

not have favorable study habits and attitudes. Among the noted unfavorable study

habits were inefficient time management, lack of planning and concentration in their

studies, poor skills in reading, ineffective test taking techniques, and failure to inform

their teachers of their difficulties with school work and ask for their help. The

participants also demonstrated unfavorable attitudes toward teachers’ classroom

behavior and methods. It was further revealed that their performance in licensure

examinations was quite low. Significant relationship between study habits and

attitudes and performance in licensure examination were clearly shown in this study.

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Further analysis revealed that study habits (work methods and time management) of

the participants were correlated with their success in licensure examination while

study attitudes (i.e. attitudes toward teachers and educational acceptance) were not

significantly related to success in licensure examination. This connotes that students

who have favorable study habits will likely pass the licensure examination.

Perez-Pido (2014) noted that interpersonal, stress management, accounting

and finance knowledge, communication skills, and review school performance

positively and significantly correlated with CPA licensure examination performance

while length of time since college graduation negatively yet significantly correlated

with the performance in the aforementioned licensure examination. And among

these six variables, review school performance proved to have the strongest

correlation with the performance in the CPA licensure examination.

An article regarding DLSU’s performance and expectations of board exam,

Dean Dr. Maria Andrea L. Santiago believes that the review classes in the University

offered at the last term for accountancy majors are a beneficial factor that affects a

student’s performance in the board exams.

Brillante (2000) also added that the respondents' academic achievement

however influenced their performance in the CPA licensure exams. The review

center they attended to prepare them for the CPA exams did not however influence

their performance.

3. Theoretical/Conceptual Framework

The literature adopts the Attribution Theory as cited by Mateo. It predicts that

there are two factors that associate the performance of a human being; the personal

factors and the environmental factors. In this study, personal factors include

academic performance, study habit and study strategies and attitude toward

accounting. Meanwhile, environmental factors include instruction, school facilities

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and resources, review classes and test competencies. The diagram below shows the

independent and dependent variable of the study. The independent variables are the

personal and environmental factors while dependent variable is the factors that affect

the performance of the graduates in the CPA licensure examination.

Personal Related Factors

 Academic performance
 Academic competence
 Study habit and study
strategies
 Attitude towards
accounting
Factors that affect the
Performance in the
CPALE
Environmental Factors

 Instruction
 School facilities and
resources
 Review classes
 Test competence

4. Methodology

Research Method

The study will use the correlation method of research. It is the aimed of this

study to determine the factors that affect the performance in the licensure

examination and the performance in the licensure examination from October 2014 to

October 2016.

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Research Respondents

The respondents of the study are the accountancy graduates of Eastern

Samar State University – Borongan Campus who took the CPA Licensure

Examination from October 2014 to October 2016.

Sampling Method

There are one hundred fifteen (115) accountancy graduates who took the

licensure examination for the period covered. To determine the number of sample

size, the Research Advisors will be used. Based on the Research Advisors table, the

sample size will be eighty (80) respondents.

Research Instrument

A self-made survey questionnaire will be administered by the researchers.

This questionnaire is to be validated and tested for reliability. A test-retest will be

administered to some accountancy graduates or to graduates with board examination

courses to assess the reliability of the instrument. If there are any irregularities of the

instruments, it will be immediately corrected by the researchers.

The questionnaire has two parts. The first part is the profile of the

respondents. The respondents will have to put a check the box for their responses.

The second part of the questionnaire is the factors that affect the performance

of the respondents in the CPA Licensure Examination. It is a Likert-scale type

questionnaire with responses as to (5) Strongly Agree, (4) Agree, (3) Neutral, (4)

Disagree and (1) Strongly Disagree.

Data Gathering Procedure

The questionnaire will be administered by the researchers personally by mail,

social networks and through cellular phones since some of the respondents are not

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within the vicinity of the research locale. In addition, the data on the performance of

the graduates in the CPA licensure examination will be obtained from list of

examinees issued by the Professional Regulation Commission (PRC).

Data Analysis

The study will be use mean to determine the profile of the respondents and to

identify the factors affecting the performance in the licensure exam. On the other

hand, logistic regression analysis will be use to determine the correlation between

the factors affecting the performance in the licensure exam and the performance in

the licensure exam itself.

III. ATTACHMENTS

Bibliography

Bala, J. (2008). “The Naked Truth About the CPA Board Examination”. Graduate
Research Journal University of the East.

Ballado – Tan, Jade (2014). Academic Performance, Aspirations, Attitudes and Study
Habits as Determinants of the Performance in Licensure Examination of
Accountancy Graduates. International Journal of Education and Research Vol.
2 No. 12 p. 61

Baun, Sushmita Marie G., Carreon, Norestel C., Dizon, Janessa R., et. al. The
Factors Affecting the Result of the CPA Board Examinations of Holy Angel
University Students for the Academic Years 2009-2014”.
https://prezi.com/d_aii3ocyrxe/the-factors-affecting-the-result-of-the-cpa-
board-examinati/

Brahmasrene, T. & Whitten, D. (2001). Assessing Success on the Uniform CPA

Exam: a logit approach. Journal of Education for business, 77, 45-50.

Brillante, S. T. (2000). Personal and Academic Related Characteristics of

Accountancy Graduates of the CSC and their Performance in the CPA
Licensure Examination for 1994 – 1998. 0000000866.RTF

Cardona, R.J., Castro-Gonzalez, K.C. and Rios-Figueroa, C.B. (2015). An

Examination of Factors Affecting the Passing Rates of the CPA Examination.
http://www.google.com/rogelio_cardona_informe_final.pdf

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Garcia, G. C. Academic Performance as Determinant to Pass the Licensure
Examination for Teachers. International Peer Reviewed Journal JPAIR
Institutional Research.
http://philair.ph/publication/index.php/irj/article/view/258

Mateo, R. M. (1998). “Determinants of Performance of College Faculty in Teacher

Educational
Institution in Region I.” Doctoral Dissertation, Mariano Marcos State
University, Laoag City.

Mendezabal, M.J.N. (2013). Study Habits and Attitudes: The Road to Academic
Success. Open Science Repository Education, Online (open-access,
e70081928. doi: 10.7392/Edcuation.70081928

Perez-Pido, A. Emotional Intelligence, Core Competencies and Certified Public

Accountant Licensure Examination Performance.
http://www.spaconline.org/home/2014/04/22/1847/

Sabas, Glorietta B. (2001). “Factors Affecting the Performance of SVD Schools in the
Licensure Examination for Teachers.” MA Thesis, Mariano Marcos State
University.

Titard, P., and Russel, K. (1989). Factors affecting CPA examination success.
Accounting Horizons, 3(3). 53-59.

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 Republic of the Philippines
EASTERN SAMAR STATE UNIVERSITY
Borongan City

Dear Respondents:
Good day! Please complete this survey questionnaire as accurately and
frankly as possible by checking (  ) the box corresponding to your response. Your
answer will be used for research proposes in order to determine the factors that
affects the performance in the licensure examination. Your answers to this survey will
be treated with strictest confidentiality.

I. Profile
Name: _______________________________

I. Factors that Affect the Performance in the CPA Licensure Examination

Please check the box that correspond your response to each statement
below.

5 1
4 3 2
Factors Strongly
Agree Neutral Disagree
Strongly
Agree Disagree
A . Academic Competence
1. I am able to manage the
academic course of the
program.
2. I can easily understand
topics/discussion taught.
3. I find the subjects taught
interesting and challenging.
4. I am enjoying the classes
offered in the curriculum.
5. I always do my best to
understand the topics taught.
B. Study Habit and Study
Strategies
1. While I am studying, I prefer
to study in a quiet and
peaceful place alone and
use my spare time studying
the lessons.
2. I plan well in advance for the
best way of handling a study
subject.
3. I review course material with
my classmates while
studying for examinations

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 and practice solving
accounting problems.
4. I test my knowledge before
taking an examination by
means of self-test exam or
asking questions, etc.
5. While studying, I read lots of
books or references and
summarize the course
material in my own words.
D. Attitude toward Accounting
1. I love accounting and I am
determined to become a
CPA.
2. Accounting is difficult but
challenging.
3. I enjoy myself reading,
solving accounting problem.
4. I feel sure of myself in
accounting.
5. I can see much importance
in accounting.
E. Instruction
1. Instructors are enthusiastic
in delivering their
discussion.
2. I learned a lot from my
instructors.
3. Instructors discuss lesson in
a manner that students can
understand easily.
4. Instructors give tips or
pointers in dealing with
accounting issues and
problems.
5. Instructors are approachable
and friendly.
F. School Facilities and
Resources
1. Library holdings are
adequate and accessible.
2. Library holdings for major
subjects are updated.
3. Classrooms, library and
reading rooms are
conducive to learning.
4. There is an available
standardize facilities such as
classrooms, comfort rooms,
library and etc.
5. Classrooms and reading

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 rooms are well-ventilated,
lighted and spacious.
G. Review Classes
1. I attend review classes
every day or as scheduled.
2. I answer the hand-outs
given by the review center.
3. I am focused with my review
classes.
4. I take pre-board examination
during review and passed it.
5. I practice solving accounting
problem with different
resource materials and from
different review centers.
H. Test Competence
1. I can easily manage the
amount of study material
taught for an exam.
2. I do not find it difficult to
prepare for examinations.
3. I can easily cope with
examination tension.
4. I have great difficulty
managing the amount of
study material for
examination.
5. I can manage time to finish
the exam accurately.

II. Performance in the CPA Licensure Examination

1. What is your performance in the CPA licensure exam? ______________

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