Law Summary
Powers and Functions of the Professional Regulatory Board of Accountancy (PRBOA)
- PRBOA has the authority to prepare, adopt, issue, or amend syllabi in consultation with the academe.
- Responsible for preparing exam questions aligned with syllabi, administering exams, grading, and releasing results.
Purpose of the CPA Licensure Examination
- To test the minimum professional competence of candidates for registration as CPAs.
- Assesses adequate technical knowledge, practical application skills, and ethical/professional attitudes.
- The competence level tested is that of a CPA at the start of professional practice.
Contents and Uses of the Syllabi
- Syllabi contain detailed technical knowledge, topics, and subtopics for each subject.
- Purposes include ensuring uniform subject coverage, guiding examinee preparation, assisting exam question preparation, and informing educators about necessary subject matter.
Examination Format and Guidelines
- Mandated full computerization of licensure exams with specific operational guidelines.
- Exam questions focus on current, relevant technical knowledge; trivial or unsettled topics are excluded.
- A balanced mixture of difficulty levels: easy, moderate, and difficult questions.
- Cognitive skill levels tested include comprehension, application, analysis, and problem-solving, beyond mere recall.
Establishment and Management of an Examination Test Bank
- PRBOA establishes computerized test banks using PRC facilities.
- Questions are classified by topic, difficulty, cognitive level, proficiency, and question type.
- Strict rules: no yes/no, true/false, matching-type; multiple-choice questions must have exactly one correct answer without "none of the above" options.
- Randomized extraction of questions to ensure balanced coverage and difficulty.
Guidelines for Question Preparation
- Exams must be comprehensive, covering all syllabus topics without undue emphasis on any single area.
- Questions must be clear, accurate, free of errors, with definitive answers supported by authoritative sources.
- Originality is emphasized; direct copying from review materials is prohibited.
- Questions must reflect Philippine accounting practices and relevant pronouncements from governing bodies like PRBOA, FRSC, AASC, COA, SEC, and PICPA.
- When local standards are lacking, authoritative international standards may be referenced if applicable to Philippine conditions.
- Examination content must account for recent developments but avoid introducing unfamiliar new concepts.
- Syllabi revisions occur automatically in response to new standards, laws, or regulations with a six-month adoption buffer.
Use of Calculators
- Electronic calculators are allowed during exams.
- Programmable calculators are prohibited to maintain exam integrity.
Implementation and Dissemination
- The established syllabi apply starting with the October 2006 CPA Licensure Examination.
- Copies of the resolution are to be distributed to the Commission on Higher Education for dissemination to all academic institutions offering Bachelor of Science in Accountancy programs.