CHAPTER I THE PROBLEM AND ITS BACKGROUND This chapter presents introduction of the study, background of the study,

statement of the problem, significance of the study, scope and delimitations of the study, conceptual framework, hypothesis and definition of terms. 1.1 Introduction Being a professional does not really mean graduating from a well-known university or attaining a high bachelor degree. It is about being dedicated to your professional development both for yourself and to those people who are affected by your work. It is about being trustworthy, reliable and committed. It is the mastering of your work and gaining maturity from your past exposures and experiences.

In the accountancy world, before one becomes a Certified Public Accountant he/she needs to pass the Certified Public Accountant Board Licensure Examination. It is an examination given by the Board of Accountancy, the one in-charge for the promulgation of rules and regulations affecting the practice of Accountancy in the Philippines. The CPA Board Exam is given to test the knowledge of the Accountancy graduates in order to prepare them in a more challenging environment, the corporate world. The CPA Board Exams are given every May and October each year. The CPA Board exam is also very important to every accountant because being a CPA can often mean the difference between getting more respect, pay, and job opportunities than any other accounting certification. Traditionally, CPA exams are tagged as one of the most difficult licensure exams in the country. It has been associated numerous times in the likes of the BAR Exams

and Physician Licensure Exams. Essentially, the main reason why the CPA exam is so hard is to protect public interest. It is also the same reason why CPAs enjoy the many benefits they currently enjoy. The difficulty of the CPA exam helps ensure only the best accountants become CPAs, and as a result increases the quality of the field for others. CPAs are often ranked as one of the most trusted professionals, and this is all thanks to the rigorous training and education theyve been given as well as how difficult it is to become a CPA. According to a survey conducted by the American Institute of Certified Public Accountants (AICPA) last 2011 that when small business owners were asked how often they rely on outside business counsel, half said they rely on their CPA always or often ranking just slightly behind ones spouse or family member. Essentially, most people see CPA not just a professionals but as someone they can trust for advice when they need it. The difficultly of the CPA exam is to protect public interest because it tests candidates not only to ensure they have what it takes to protect the public interest, but that theyre aware of recent changes and laws introduced to fu rther enhance this. 1.2 Background of the Study

University of Batangas is one of the universities in the Philippines which offers Bachelor of Accountancy program. This program prepares the students for a career in accounting and related fields, for them to deal effectively with the problems and responsibility as professional accountants and equip them with capabilities

transportable over national frontiers. It also develops qualities that enhance the professional competence of an accountant possessing high standards of integrity and objectivity. This program provides a foundation of professional knowledge, skills, values, ethics and attitudes that enable students to continue to learn and adapt to changes

throughout their professional lives. In the face of the increasing and fast-paced changes in the world of work, it is essential that Accounting students develop and maintain an attitude to learn, maintain their competence as professional accountants later who possess the ability to work with others in a consultative process and in cross-cultural and cross-border setting. University of Batangas sends its Accountancy graduates to take the prestigious CPA Board Exam yearly. It serves as its basis for evaluation of its performance in producing newly Certified Public Accountants.

With the goal of developing analysis, the researchers were motivated to conduct this particular investigation which examined passing percentages of UB in the CPA Licensure Exam covering the three Academic Years 2009-2010 to 2011-2012. Since the evaluation of the Accountancy Program can be influenced by many factors, it is not possible to take aggregated data and say that any one factor will guarantee success for this research proposal. Nevertheless, it is possible to identify significant differences and to analyze factors that provide at least partial explanations for these differences. One of the factors to be considered is the assessment of the methods of instructions used by the Accountancy professors. There are methods of teaching that are very effective in order to get the attention of the Accountancy students. For the past three years, the Accountancy professors in UB used books as their references and they also used technology in teaching. They also introduced the use of Microsoft Excel and other Accounting computer programs. In these ways, they ensured that their students were not exhausted by just looking on their books. Another factor is the collegiate grade-point average (GPA). According to Titard and Russell (1989), GPA is a significant factor in passing the CPA Board Exam. CPA Exam is basically a textbook exam. Therefore,

students with exceptional GPA have greater chance in attaining success to be CPA. Another factor is a formal course of supplementary study related to success on the CPA exam like good undergrad training and rigorous review before actual exams. UB is guiding its Accountancy graduates to choose a great Review School that will really help them in order to pass the CPA Exam.

At the end of this research, the researchers will be able to give analysis of passing percentages of University of Batangas in the CPA Licensure Examination as a Basis for evaluation of the Accountancy Program based on the information that they will gather on their respondents. They will also give recommendations for possible areas for improvements of the Accountancy program offered by the university.

1.3 Statement of the Problem

The primary objective of the research proposal is to provide analysis of passing percentages of University of Batangas in the CPA Licensure Examination as a basis for evaluation of the Accountancy program offered by the university. In order to meet the compliance of the study, the researchers consider the following statements of the problem: 1. What are the passing percentages of University of Batangas in the CPA Licensure Examination for the past three years? 2. What are the factors affecting the passing percentages of University of Batangas for the past three years?

3. Did these factors affect the passing percentages of University of Batangas for the past three years? 1.4 Significance of the Study The significance of this research proposal is to provide an analysis regarding the passing percentages of University of Batangas in the CPA Licensure Examination as a basis for evaluation of its Accountancy program. To the Accountancy students.For them to guarantee that the program where they are enrolled will really help them to become future Certified Public Accountants. To the Parents of the Accountancy Students.For them to safe guard their investments on University of Batangas Accountancy program. To University of Batangas Accountancy Professors. For them to know their weaknesses in teaching. They will be able to improve their techniques to further enhance the learning of their students in preparation for the CPA Board Exam. To the University of Batangas School Administrators. For them to evaluate the Accountancy Program offered in UB in terms of CPA passing percentages. To University of Batangas Accountancy Program.Based on the passing percentages in CPA Exam, it will be able to analyze its efficiency and its flaws. It will be able to improve its techniques to achieve higher passing percentages. Being globally competitive is one of the major goals of the university and having Accountancy program is a stepping stone for this goal. This program prepares the students for a career and accounting and related fields, for them to deal effectively with

the problems and responsibility as professional accountants and equip them with capabilities transportable over national frontiers. 1.5 Scope and Delimitations of the Study The research proposal focuses on analysis on the passing percentages of University of Batangas in the CPA Licensure Examination as a basis for evaluation of its Accountancy program. Also, the study is limited to give analysis of the past three years, including Academic Year 2009-2010 to 2011-2012, passing percentages of the university in the CPA Board Exam and will not include all its years which have also passing percentages. 1.6 Conceptual Framework of the Study This study focuses on the analysis regarding the passing percentages of University of Batangas in the CPA Licensure Examination as a basis for evaluation of its Accountancy program. Any data and information found while conducting the research will serve as the basis and foundation of giving analysis to come up with the best results of this study. This study used the Input-Process-Output (IPO) model. As an input, the CPA Board Passers and the Accountancy Professors of University of Batangas from 20092012 will be used by the researchers as their respondents. Also, the students profile will be used to identify their relationship to the passing rates of UB in the CPA Board Examination. To carry out the study, the researchers will conduct a survey among

randomly chosen samples. As a result, the researchers will be able to give an analysis of CPA passing percentages as a basis for evaluation of the Accountancy Program of University of Batangas.

INPUT > Demographic profile of CPA Board Passers and Accountancy Professors for the past three years (2009-2012) > Passing Percentages of UB in CPA Board Exam for the past three years (2009-2010)

PROCESS >Survey with the Accountancy professors of UB and the Board Passers for the past three years >Interview with Dean Dante Calingasan, the current dean of college of Accountancy of University of Batangas

OUTPUT

>Analysis of passing percentages of UB in the CPA licensure examination as a basis for evaluation of the Accountancy Program

Conceptual Model that shows the relationship of the variables

1.7 Definition of Terms The following terms are defined operationally for the better understanding of the study. Accountancy Program.This program prepares the students for a career in accounting and related fields, for them to deal effectively with the problems and responsibility as professional accountants and equip them with capabilities

transportable over national frontiers.

Analysis.It is the process of considering something carefully or using statistical methods in order to understand it or explain it. Board of Accountancy.It is in-chargepromulgation of rules and regulations affecting the practice of Accountancy in the Philippines and responsible in giving CPA Board Examination. Certified Public Accountant. The title one gains if he was able to pass the CPA Board Examination. Certified Public Accountant Licensure Examination. It is an examination given by the Board of Accountancy to the graduates of Accountancy Program to evaluate and assess who will be qualified to be CPAs. It is considered as one of the toughest board examinations in the Philippines same holds through with BAR Exams and Physician Exams. Evaluation. It is the judgment about something, how bad or good they are. General Point Average. The grades received by each student at the end of the program. Passing Percentage. The passing rate that the university gets every year to assess their performance for a certain program.