1. Statutory Authority and Legal Basis
The Certified Public Accountant Licensure Examination (CPALE) operates under the statutory authority of Republic Act No. 9298, known as "The Philippine Accountancy Act of 2004". The Professional Regulatory Board of Accountancy (BOA), working under the administrative supervision of the Professional Regulation Commission (PRC), formulates examination policies, updates course syllabi, and administers the licensure exams semi-annually.
In 2015, the Board issued BOA Resolution No. 275, series of 2015, which reformed the examination curriculum from seven subjects to six consolidated subjects. This statutory schedule took effect in the October 2016 board examinations and remains the current examination framework.
2. Official Subject Schedule and Weights
Under BOA Resolution No. 275 s. 2015, all six examination subjects carry equal weighting of one-sixth (16.6667%) each in the general weighted average computation:
| Board Subject Name | Acronym | Statutory Weight | Subject Scope and Coverage |
|---|---|---|---|
| Financial Accounting and Reporting | FAR | 16.67% (1/6) | PFRS/PAS standards, asset/liability valuation, equity accounting, financial statement preparation. |
| Advanced Financial Accounting & Reporting | AFAR | 16.67% (1/6) | Partnership accounting, business combinations, consolidated statements, cost accounting, NPO/government accounting. |
| Auditing | AUD | 16.67% (1/6) | Philippine Standards on Auditing (PSA), risk assessment, internal controls, audit evidence, audit reports. |
| Management Advisory Services | MAS | 16.67% (1/6) | Financial management, cost-volume-profit analysis, budgeting, standard costing, working capital management. |
| Taxation | TAX | 16.67% (1/6) | NIRC as amended (TRAIN & CREATE Acts), income tax, transfer taxes, VAT, percentage taxes, local taxation. |
| Regulatory Framework for Business Transactions | RFBT | 16.67% (1/6) | Obligations and contracts, sales, corporation code, negotiable instruments, banking laws, data privacy. |
3. Statutory Passing Standards and Conditioned Logic
Section 16 of Republic Act No. 9298 sets the three mandatory requirements for passing the CPALE:
- General Weighted Average (GWA) Requirement: The examinee must achieve a general weighted average of at least 75.00% across all six subjects.
- Subject Disqualification Floor: The examinee must not obtain a rating below 65.00% in any individual subject. A score of 64.99% or lower in any single subject causes immediate failure of the entire examination, regardless of the overall average.
- Majority Passing Requirement: The examinee must obtain a passing rating of 75.00% or higher in at least a majority (at least 4 out of 6) of the subjects.
Conditional Status (Conditioned Pass) Rules
If an examinee achieves a GWA of 75.00% or higher and passes at least four subjects (with 75.00%+), but receives a rating between 65.00% and 74.99% in one or two subjects, the examinee receives Conditioned Status.
Under Section 16 of RA 9298, the conditioned candidate:
- Receives conditional credit for the four or five subjects passed.
- Must take a removal examination only in the failed/conditioned subjects within two (2) years from the date of the examination.
- Must obtain a rating of at least 75.00% in each reexamined subject during the removal exam.
- If the candidate fails to score 75.00% in the removal examination within two years, the candidate fails the entire examination and must retake all six subjects in a future sitting.
4. Retake Policies and the 24-Unit Refresher Course Rule
Section 18 of RA 9298 enforces a strict educational refresher rule:
Any examinee who fails two (2) complete CPA licensure examinations cannot take another examination until submitting official proof of completion of a refresher course comprising at least twenty-four (24) academic units in accredited accounting subjects from a recognized higher education institution.
5. Step-by-Step Mathematical Calculation Examples
Example A: Conditioned Candidate
A candidate receives the following scores: FAR: 83.00%, AFAR: 79.00%, AUD: 77.00%, MAS: 86.00%, TAX: 71.00%, RFBT: 68.00%.
- Sum of ratings: 83.00 + 79.00 + 77.00 + 86.00 + 71.00 + 68.00 = 464.00.
- General Weighted Average: 464.00 / 6 = 77.33% (Exceeds the 75.00% passing baseline).
- Subject floor inspection: Lowest rating is 68.00% (RFBT), which exceeds the 65.00% disqualification floor.
- Majority pass inspection: Candidate passed 4 subjects (FAR, AFAR, AUD, MAS) with 75.00%+. Candidate scored between 65.00% and 74.99% in 2 subjects (TAX, RFBT).
- Final Outcome: CONDITIONED. The candidate must retake TAX and RFBT within 2 years and obtain at least 75.00% on each retake.
Example B: Failing Candidate Due to Majority Rule
A candidate receives: FAR: 80.00%, AFAR: 80.00%, AUD: 80.00%, MAS: 70.00%, TAX: 70.00%, RFBT: 70.00%.
- Sum of ratings: 80 + 80 + 80 + 70 + 70 + 70 = 450.00.
- General Weighted Average: 450.00 / 6 = 75.00%.
- Subject floor inspection: All subjects are 70.00% (above the 65.00% floor).
- Majority pass inspection: The candidate passed only 3 subjects with 75.00%+. A majority requires at least 4 passed subjects.
- Final Outcome: FAILED. Candidate must retake all 6 subjects because the majority passing rule was not satisfied.
6. Common Calculation Errors Among CPALE Examinees
- Assuming a 75.00% average guarantees a pass: If any subject falls below 65.00%, or if fewer than 4 subjects reach 75.00%, the candidate fails regardless of a high overall average.
- Confusing the 65% floor with the 75% subject passing mark: A score between 65.00% and 74.99% is not a passed subject; it is a conditioned score that requires retaking.
- Overlooking the 2-year removal deadline: Conditioned credits expire after exactly two years, requiring a full six-subject retake if not cleared.
7. October 2026 Examination Calendar & Online Filing Deadline
The second semester 2026 CPALE is scheduled for October 24, 25, and 26, 2026 across testing centers in NCR, Baguio, Cagayan de Oro, Cebu, Davao, Iloilo, Koronadal, Legazpi, Lucena, Pagadian, Pampanga, Rosales, Tacloban, Tuguegarao, and Zamboanga.
The deadline for filing new applicant and repeater examination applications via the PRC LERIS online appointment portal is September 9, 2026. Prospective examinees must complete online registration and document submission prior to the deadline. Read our complete CPALE October 2026 Filing Deadline & Passing Rules Guide for document requirements and fees.