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The news is true. There have been changes to the CPA Board Exam Syllabus and this was
proposed by the Board of Accountancy headed by BoA chairman Joel Tan-Torres last June 20,
2015 and presented during the Accountancy Week Celebration on July 2015.
The Revisions
1. Reduction in the number of subjects from seven (7) to six (6)
2. Merging auditing theory and practice into one (1) subject
3. Merging of accounting theory and practice and distributing the pertinent topics in Theory of
Accounts, Practical Accounting I, Practical Accounting II to Financial Accounting and Reporting
and Advance Accounting
4. Segregating Business Law and Taxation into Taxation and Regulatory Framework for
Business Transactions
5. Renaming Management Services to Management Accounting and Control
The Catch
Since the previous Business Law is now changed to Regulatory Framework for Business
Transactions expect that Law exam will now include laws and regulations issued by relevant
government agencies like the SEC, DTI, etc.
In the Management Accounting and Control subject, an emphasis is given on Control which
means that this too shall be of focus on the subject matter. This topic largely covered in
Accounting Information System during undergrad.
Date of Effectivity
The BOA unanimously recommended to the PRC to implement these changes in the May 2016
CPA Licensure Examination. If you are like me who will take the said exam on that date, there is
nothing to worry about, because according to Orlando Calundans post about the matter in
philcpa.org On the changes in subjects We believe that the changes in subjects doesnt really
significantly impact the nature of items given during the exam. Of course there are always
something new, like amendments to the accounting and auditing standards, amendments and
revision in tax and business laws and regulations that are usually taking place even without
changing the subjects.
What are your thoughts about this changes? Leave in the comment below.
Well, the ones that are really affected are those who will sooner or later take the CPA board exam.
But of course, educators will also have significant role in the process since they are the one that
actually guides the students and reviewees.
On the changes in subjects We believe that the changes in subjects doesnt really significantly
impact the nature of items given during the exam. Of course there are always something new, like
amendments to the accounting and auditing standards, amendments and revision in tax and
business laws and regulations that are usually taking place even without changing the
subjects. Whats catchy here are
The previous Business Law is now changed to Regulatory Framework for Business
Transactions which deals largely not only with obligations and contracts, negotiable
instruments, laws on partnership and corporations, law on sales, but is now expected to
include laws and regulations issued by relevant government agencies like the SEC, DTI,
etc. Schools should put emphasis on these items as it may appear as something new to
the students and reviewees.
There is now added emphasis on Control in the Management Accounting and Control
subject. Although control is included in the various discussions in auditing theories, we feel
that the move to emphasize this area is a very appropriate move, specially that in real
practice, it is one of the most often overlooked or neglected, especially for small business.
This subject is also largely covered in Accounting Information System subjects in the
undergrad.
On the timing of implementation Its about time to make these changes, we believe. These
updated subjects are the ones that really applicable not just in theory but also in practice. In
substance, we believe that there is really no significant impact on the change of subject and the
mere fact that these subject were aligned with the current BSA curriculum is an advantage on the
part of the future examinees.
We are actually expecting even more, since there are emerging practices of accountants today that
are not yet detailedly being taught in the undergrad like the preparation of and attestation of
Sustainability Reports and Integrated Reports. Although those are partially covered in auditing,
there is an emerging need for a more detailed discussion.
Well, we cant really tell unless and until we see the results. Let PRC and BOA make these changes
and well take it from there.