Chapter-1.doc

CHAPTER 1 THE PROBLEM AND ITS BACKGROUND

INTRODUCTION The quality of education of an educational institution is often determined by the graduates it generates. In like manner, the quality of graduates generated by an institution is measured by their performance in board examinations. This performance based on the percentage of passing in the licensure examination serves as a parameter that reckons the quality of education they acquired in a particular school (Ballado- Tan, 2014). One of the hardest licensure examinations in the Philippines is the Certified Public Accountant Licensure Examination (CPALE) prescribed by the Professional Regulation Commission (PRC) and given by the Board of Accountancy (BOA). The accounting profession was the first among the professions to achieve full computerization of the CPA licensure examinations, paving the way for the current record two-day release of examination results. As the global professional environment unfolds, with the onset of the 21st century, accountancy continues its trailblazing efforts. It is the first among the Philippine professions to be included under the World Trade Organization’s (WTO) policy of liberalization of services. This means that Philippine accountants will be freely competing with in the global playing field against accountants from other parts of the world and will

be able to hold their own (Board of Accountancy). Over the years, however, Philippine higher education has been undermined by the rapid increase of universities and colleges, many of questionable quality, and the inability of authorities to enforce even the basic standards. Poor-quality schools, many of them state-run or business-oriented, are in fact dragging down the national passing rates in board exams, barely producing graduates with minimum competence. Experts blame the excess of colleges and universities — partly due to state sanction and also because of the prospects of quick profits in a sector considered immune from economic downturn — for the waning state of the country’s higher education system (Santos, 2014).

BACKGROUND OF THE STUDY Based on the May 2017 Certified Public Accountant Examination performance of schools released by the PRC, there are 443 schools accredited by the Commission on Higher Education (CHED) to offer the Accountancy program, one of which is Emilio Aguinaldo College (EAC) – Manila. PRC announced last May 29, 2017 that 3,389 out of 9,645 passed the May 2017 Certified Public Accountant Licensure Examination, corresponding to a 35.14% national passing rate. EAC – Manila’s passing rate for this said licensure examination was 11.54%, a result of the 3 out of 26 examinees passing the board exam, significantly lower than the national passing rate. The average passing rate of EAC – Manila for the last seven CPA Licensure Examination was 8.63% based on data gathered from PRC, apparently very low for the CHED requirement in maintaining an Accountancy Program for a certain institution. This result shows that not all graduates of the college were prepared for the examination. One of the goals of this study was to derive findings that will serve as basis on fields that needs improvement to better the passing rate of EAC graduates to the CPA Licensure Examination.

THEORETICAL FRAMEWORK TEACHING METHODS

SCHOOL ENVIRONMENT

STUDENT ATTITUDE

CURRICULUM DESIGN

HIGH CPALE PASSING RATE

Many factors play into the decline of the passing rate of higher educational institutions, Emilio Aguinaldo College – Manila is no exception. Teaching Methods Substantial research on the effectiveness of teaching methods indicates that the quality of teaching is often reflected by the achievements of the students. According to Ayeni (2014), teaching is a process that involves bringing about desirable changes in learners so as to achieve specific outcomes. Schools offering the Accountancy program, including EAC, desire a high passing rate as a specific outcome from their students, thereby making teaching methods a factor that affects the performance of their graduates in the licensure examination. In light of the fact that learning is a process that involves investigating, formulating, reasoning and using appropriate strategies to solve problems, teachers should realise that it becomes more effective if the students are tasked to perform rather than just asked to remember some information. According to the study on Teaching Methods and Students’ Academic Performance by Elvis Munyaradzi Ganyaupfu (2015), teachers should create an atmosphere conducive to learning

in order to enhance the development of students’ learning experiences. Moreover, teachers should also increase their knowledge of various instructional strategies in order to keep students engaged and motivated throughout the learning process. School Environment The school environment, which includes the classroom, school location, school facility, school climate and technology, etc, is a variable that affects students’ academic performance (Department of Educational Foundations and Management, Ambrose Alli University, 2016). Hence the school environment remains an important area that should be looked into and well managed to enhance the graduate’s performance in the licensure examination. Student Attitude Attitude is the belief that one has towards people and surroundings. In case of education, students’ positive attitude may influence their academic achievement (Das, Mishra, Halder, 2014). Attitudes are seen as more or less positive and encompass emotions, beliefs, values and behaviour and hence affect individual way of thinking, acting and behaving which has a lot of implications to teaching and learning (Mensah et al, 2014). Research studies support the fact that students’ success depends upon the learners’ attitude towards the subject as this determines their ability, willingness to learn, choice of action and response to challenges. It determines the level of engagement, interest, personal effort without which one can hardly perform (Garden & Smith,

2015). Negative dispositions induce tendencies of fear, anxiety and stress where one resorts to other non-productive practices. Consequently, the student exhibit low motivation, decreased level of participation, boredom and behaviour problems including class or lesson avoidance .This is in fact evident when the teacher is doing his best presentation in class, but the student may seem to be alienated and aloof (Furinghetti and Perkhonen, 2015). Curriculum Design In education, curriculum is the totality of student experiences that occur in the educational process. The curriculum for BS Accountancy Program is designed to support aspiring professional accountants to develop the appropriate entry-level technical competence, professional skills, values, ethics and attitudes to successfully complete their studies, pass their professional licensure examination and the practical experience period. It is composed of a minimum of 173 units, including the required General Education, or GE curriculum, and covers all major areas required by the profession such as: 1. Accounting, finance and related knowledge; 2. Organizational and business knowledge; 3. Information technology, knowledge and competencies

According to CHED there are certain implications that should be kept in mind, before implementing the minimum curricular standards. These are: 1. Schools of Accountancy are encouraged to undergo accreditation preferably within five (5) years after recognition.

2. Curriculum development is a dynamic and continuing process. Accounting education should not only keep pace with current realities but should anticipate changes that may take place in business and the accounting profession. 3. Curriculum content should be carefully selected so that the available time and resources are effectively utilized and only the appropriate and pertinent subject areas are included.

CONCEPTUAL FRAMEWORK The framework of this research is shown in the following paradigm, using the Input-Process-Output (IPO) System; Input Demographic Profile of the respondents: Age Gender

Process Collection of through a questionnaire

the data research

Analysis of the data gathered from the research questionnaire

Year Graduated 2)

Factors affecting the passing rate of Accountancy Students of Emilio Aguinaldo College in the CPA Licensure Examination Teaching Methods

Frequency Percentage Likert Scale Weighted Mean Chi Square’

Environment

Output Determined

the

demographic profile of the respondents. Determine

the

factors

affecting the CPA passing rate of EAC-M for the last five years. Determine conclusions and recommendations on how to

improve

the

performance of graduates of

EAC

to

the

CPA

Licensure Examination.

Student Attitude Curriculum Design

Figure 1 Conceptual Paradigm

STATEMENT OF THE PROBLEM This study intends to identify and examine which of the relevant factors affect the passing rate of Emilio Aguinaldo College Accountancy graduates passing rate to the CPA Licensure Examination. Specifically, this will provide clear answers to the following questions: 1. What are the demographic profiles of the accountancy graduates who took up the CPA Licensure Examination for the last seven licensure examinations? a. Gender b. Age c. Year Graduated 2. What are the factors affecting the passing rate of Accountancy Students of Emilio Aguinaldo College in the CPA Licensure Examination? a. Teaching Methods b. Environment c. Student Attitude d. Curriculum Design 3. Is there a significant relationship between the underlying factors and the passing rate of Emilio Aguinaldo College graduates passing rate to the CPA Licensure Examination? SCOPE AND LIMITATIONS OF THE STUDY The study would only assess the students who graduated with the degree of Bachelor of Science in Accountancy. Researchers prefer to choose those graduates. This study would only test the effects of the underlying factors on the passing rate of Emilio Aguinaldo College graduates to the CPALE. All other quantifiers, such as gender and age will be considered insignificant in this study. Also, this study would only be focusing on the Emilio Aguinaldo College –

Bachelor of Science in Accountancy population since the researchers would like to focus on the analysis of implication of low passing rates for the accountancy program in the Philippines as applied in Emilio Aguinaldo College – Manila; this no comparison with other universities with BSA programs would be established. In the performance of statistical study, this research would employ the population of EAC-BSA students who have undergone the last seven CPA Licensure Exam from May 2014 – May 2017. This selection is used since the best people to test as how the program has affected their well-being are those who have been through the whole program. This way, the information that will be gathered from them quantifies majority of the experiences throughout their stay under the accountancy program. With that, the proponents of this study will be reasonably assured that the pieces of information from data response gathering are true, accurate and reliable. SIGNIFICANCE OF THE STUDY For accounting students who used up the entire five years of giving their best to master the art of accounting, graduation is not the ending line for them. Undergoing a thorough review after graduation to pass the CPA board examination would require them determination in achieving the three letter title, CPA. The results of this research and its analysis would be able to improve the understanding of the accountancy program and its implication to the students. Specifically, the research would be help to the following:

Graduates and Students of Accountancy - The results of this study can provide information to give a clear picture on the current situation of the passing rate of Emilio Aguinaldo College to further motivate future graduates and licensure

examination

takers

to

assess

themselves

and

conduct

self

improvements necessary to ensure a higher chance of passing the licensure examination. Emilio Aguinaldo College and the Administration - This research could be of aid in determining the effects of the teaching approaches they apply on the curriculum to the students to determine their effectiveness and appropriateness, and it would also be of use to future evaluations of the program. Educators – This research could help educators to seek out additional ways of providing knowledge to students after determining and considering the various level of students understanding. Future researchers – the result of the study will serve as reference for further studies. DEFINITION OF TERMS Board of Accountancy (BOA) – the body authorized by law to promulgate rules and regulations affecting the practice of the accountancy profession in the Philippines. Certified

Public Accountant

Licensure

Examination

(CPALE)

–

an

examination given to students who finished the accountancy program and wanted to become a Certified Public Accountant.

Commission of Higher Education (CHED) -- is attached to the Office of the President for administrative purposes. It covers both public and private higher education institutions as well as degree-granting programs in all post-secondary educational institutions in the country. Curriculum – the subjects comprising a course of study in a school or college. Professional Regulatory Commission (PRC) -- a Philippine government agency mandated to regulate and supervise the practice of the professionals, the highly skilled manpower of the country. School Environment -- is broadly characterized by its facilities, classrooms, school-based health supports, and disciplinary policies and practices. It sets the stage for the external factors that affect students. Teaching Method – comprises the principles and methods used by teachers to enable student learning.