RESEARCH PAPER No.

___ 2017 – 2018

IMPACT OF FACTORS, BARRIERS AND DRIVERS AFFECTING CERTIFIED

PUBLIC ACCOUNTANCTS IN PARTICIPTING CONTINUING PROFESSIONAL
DEVELOPMENT PROGRAMS

Galang, Jannah Grace M., Guab, Mary Angelica B., Terrado, Reina Maica B., Velasco, Gian
Mauriz V.

ACCOUNTING RESEARCH

We envision Saint Louis University as an

excellent, missionary, and transformative
educational institution zealous in the
formation of human resources who are imbued
with the Christian spirit and who are
competent, creative, and socially involved.

SCHOOL OF ACCOUNTANCY AND BUSINESS MANAGEMENT

SAINT LOUIS UNIVERSITY

PHILIPPINES
I. INTRODUCTION
Continuing Professional Development (CPD) refers to the inculcation of advanced knowledge,

skills and ethical values in a post-licensure specialization or in an inter-or multidisciplinary field

of study, for assimilation into professional practice, self-directed research and/or lifelong learning.

According to the Section 10 of the Implementing Rules and Regulations (IRR) of RA No.

10912, known as the “Continuing Professional Development (CPD) Act of 2016”, registered and

licensed professionals shall complete the required units every three (3) years of compliance period

specified in the Professional Regulatory Law or as provided by the Professional Regulatory Board

(PRB) and the Commission through a Resolution that may be issued. As for accounting profession,

there are 120 units to be accomplished.

The International Accounting Education Standards Board (IAESB) places a strong

emphasis on individual professionals taking responsibility for their Continuing Professional

Development (CPD). On the other hand, the roles performed by professional accountants have

evolved out of practical necessity to ‘best’ suit the diverse needs of business in global economy.

This diversity has meant that professional accountants are seen in highly specialised roles requiring

diverse skill sets. In order to enhance the contribution of the accountant as a knowledge

professional for business, it follows that CPD that leverages off an individual’s experience should

be designed to meet the needs of professionals across the different specialised roles within the

profession.

In New Zealand and Australia, accounting academics believe that assessing CPD needs is

a personal responsibility and is integral to being an academic. CPD was undertaken to maintain

professional competency and credibility of qualifications, with outcomes being new technical

accounting knowledge and teaching skills (Mary Zajkowsk et al. 2007)

 In the United States of America, all states have adapted mandatory CPD for accountants.

Accountants perceived the mandatory CPD program in North Carolina to be effective. While there

may be disagreement about what makes a program effective, if the participants do not view the

program as being effective, they are less likely active to participate in the program (Susan B.

Wessels, 2007).

In the Asia Pacific region, while increasing globalisation has led to more unified standard

of professionalism, the perceptions of these standards are not uniform across the region. While

there is some consensus that the ongoing development of accounting as part of globalisation,

significant differences were identified in perceptions towards CPD offerings between professional

accountants in develop economies, compared with the emerging economies. Differences in

perceptions of CPD offerings were most prevalent in relation to satisfaction with requirements,

experience, quality and the appropriateness of CPD (Paul De Lange et al. 2015).

In Indonesia, before CPD was mandatory for IFAC member bodies in 2006, the Indonesian

government through the Ministry of Finance (MoF) Regulation No. 43/KMK.017/1997 mandated

that public accountants must undertake CPD in accordance with the provisions of the Indonesian

Institute of Accountants (IIA). Nonetheless, CPD seemed to have little influence in improving the

practice of public accountants in Indonesia. In spite of the importance of CPD for the public

accounting profession in Indonesia, the CPD schema to support and justify CPD offerings, design,

planning, implementation, monitoring and current offerings is unclear. Furthermore, there is no

information available about public accountants’ need assessment prior to undertake CPD, whereas

CPD should recognise the special attributes and needs of professionals and the determination of

learning need is the crucial phase (Queeney et al., 1990; Burton & Rezaee, 1994; Knowles, et al.,

2005)
 From the limited number of surveys of their own members carried out by associations, there

appears to be a wide variation in the level of participation in CPD programmes across professional

bodies. Very little research had been done to identify the barriers which might be preventing

professionals from becoming fully involved, and drivers which could motivate them to participate.

(Professor Andy Friedman and Dr Mary Phillips, 2001)

Another barrier affecting CPD participation is that professionals are not homogenous. A

range of factors - such as differences in career stage, preferred learning style, individual ambition

- affect the likelihood of taking part in CPD.

Earning the remaining 60 percent of the required CPD, through CPD providers, is considered a

financially burdensome process for CPAs. While I recognize the potential opportunity for cost

issues to diminish with quality online CPD providers, this will take time before contents are made

available and for prices to become competitive. (Filbert Tsai, 2017)

Statement of the Problem

“Impact of Factors; Barriers and Drivers, Affecting Certified Public Accountants (CPAs) in
Participating Continuing Professional Development (CPD) Programs”

Significance of the Study

This study will help Certified Public Accountant to get an indication of the range of issues

that were seen as influential and important with regards to CPD by some professionals.

Newly passers of the CPA board examination may factor-in information gathered from this

study so as to make them aware of the impacts regarding CPD requirements.

Students of both undergraduate and graduate schools will find it beneficial in undertaking

similar and related studies.

 Other regulatory bodies who are responsible for the implementation of the CPD

requirements may also benefit from this study. Regulatory bodies under the said study may gather

information on how they are going to implement programs and requirements that will help those

practicing the profession improve their skills and at the same time friendly to the social, economic,

and employment aspect on the life of the accountants.

Objectives
The objectives of this study are the following:

General Objectives:

The primary objective of this study is to determine the characteristics of the Certified public

accountants (CPAs) in terms of their age, gender, accounting sector, monthly income, and length

of experience.

The study will determine the extent to which the barriers and drivers affect Certified Public

Accountants (CPAs) in all sectors in participating Continuing Professional Development (CPD)

programs.

Specific Objectives:

Specifically, this study aims to know the following:

1. The profile of the respondents in terms of their:

a. Age

b. Gender

c. Accounting Sector

d. Monthly income

e. Length of experience
 2. The extent to which barriers affect the participants (CPAs) from attending CPD programs.

2a.The significant difference in the extent to which barriers affect the participants from

attending CPD programs when the respondents are grouped according to their profile.

3. To what extent accountants’ motivation in undertaking CPD affects their participation.

3a.The significant difference in the extent to which accountants’ motivation in undertaking

CPD affects their participation when the respondents are grouped according to their profile.

Hypotheses
Specifically, the study will be guided by the following hypothesis:
A.
1. That there is no significant difference in the extent to which barriers affect the
participants from attending CPD programs in terms of age.
2. That there is no significant difference in the extent to which barriers affect the
participants from attending CPD programs in terms of gender
3. That there is no significant difference in the extent to which barriers affect the
participants from attending CPD programs in terms of sector
4. That there is no significant difference in the extent to which barriers affect the
participants from attending CPD programs in terms of monthly income
5. That there is no significant difference in the extent to which barriers affect the
participants from attending CPD programs in terms of length of experience.
B.
1. That there is no significant difference in the extent to which accountants’ motivation in
undertaking CPD affects their participation in terms of age.
2. That there is no significant difference in the extent to which accountants’ motivation in
undertaking CPD affects their participation in terms of gender.
3. That there is no significant difference in the extent to which accountants’ motivation in
undertaking CPD affects their participation in terms of sector.
4. That there is no significant difference in the extent to which accountants’ motivation in
undertaking CPD affects their participation in terms of monthly income.
5. That there is no significant difference in the extent to which accountants’ motivation in
undertaking CPD affects their participation in terms of length of experience.
Assumptions
1. Respondents have adequate knowledge of the new continuing professional
development law.
 2. Baguio City being a highly urbanized city caters to a number of professionals such as
accountants.
3. The barriers and drivers of the CPAs vary in their age, gender, sector, monthly
income and length of experience.

Definition of Terms

Barriers – are real or imagined hindrances between a person and the success that that person wants
to achieve. These include the life experiences, emotions, attitudes and behavior that hinders the
ability of a person to communicate.

BOA – an agency that establishes the educational requirements and the eligibility of candidates
desiring to sit for the Uniform CPA Exam. Each board of accountancy also controls the licensing
of certified public accountants (CPAs) within its jurisdiction.

Drivers – motivating factors including achievement, advancement, autonomy, personal growth,

recognition, responsibility, and the work itself.

Certified Public Accountant – is a person who holds a valid certificate of registration and a valid

Professional Identification Card issued by the Professional Regulatory Commission (PRC) upon

the recommendation by Board of Accountancy (BOA) to those who have satisfactorily complied

with all the legal and procedural requirements for such issuance, including in appropriate cases,

having passed the CPA licensure examination.

Continuing Professional Development- to the inculcation of advanced knowledge, skills and

ethical values in a post-licensure specialization or in an inter -or multidisciplinary field of study,

for assimilation into professional practice, self-directed research and/or lifelong learning.

Practice in Commerce and Industry - shall constitute in a person involved in decision making

requiring professional knowledge in the science of accounting, or when such employment or

position requires that the holder thereof must be a certified public accountant.
Practice in Education/Academe - shall constitute in a person in an educational institution which

involve teaching of accounting, auditing, management advisory services, fiancé, business law,

taxation and other technically related subject: Provided, That members of the Integrated Bar of the

Philippines may be allowed to teach business law and taxation subjects.

Practice in Government - shall constitute in a person who holds, or is appointed to, a position in

an accounting professional group in government or in an government-owned and/or controlled

corporation, including those performing proprietary functions, where decision making requires

professional knowledge in the science of accounting, or where a civil service eligibility as a

certified public accountant is a prerequisite.

Practice of Public Accountancy - shall constitute a person, be it his/her individual capacity, or as

a staff member in an accounting or auditing firm, holding out himself/herself as one skilled in the

knowledge, science and practice of accounting, and as a qualified person to render professional

services as a certified public accountant; or offering or rendering, or both or more than one client

on a fee basis or otherwise, services as such as the audit or verification of financial transaction and

accounting records; or the preparation, signing, or certification for clients of reports of audit,

balance sheet, and other financial, accounting and related schedules, exhibits, statement of reports

which are to be used for publication or for credit purposes, or to be filed with a court or government

agency, or to be used for any other purposes; or to design, installation, and revision of accounting

system; or the preparation of income tax returns when related to accounting procedures; or when

he/she represent clients before government agencies on tax and other matters relating to accounting

or render professional assistance in matters relating to accounting procedures and the recording

and presentation of financial facts or data.

Variables
Independent variables are conditions or characteristics which are presumed cause and influence of

the existence or non-existence or change in certain phenomena. The independent variables of this

study are the characteristics of the Certified Public Accountants (CPAs) which are presumed to

cause or influence the extent of which factors affect the participation in Continuing Professional

Development (CPD) are the respondents’ age, gender, accounting sector, monthly income, and

length of experience.

Dependent variables are condition or characteristics which are influenced by the independent

variables. They are the focus of the investigation: its behaviour or status as influenced by the

independent variables is the concern of the investigators in this study; the researchers will measure

the extent of which factors affect the participation of CPAs in CPD programs in terms of the

barriers and drivers.

Limitation of the Study

This study is designed as a descriptive investigation in the area of the impact of barriers

and drivers affecting the CPAs in participating to the CPD programs.

The study of the impact of barriers and drivers affecting Certified Public Accountants

(CPAs) in all sectors in participating Continuing Professional Development (CPD) programs will

focus on the following aspects: (a) social aspect, (b) economic aspect, (c) relevance of CPD

programs in enhancing the skills of the accountants, and (d) employment aspect.

The issues and concerns of the study will be the extent to which (a) barriers and (b) drivers

affect Certified Public Accountants (CPAs) in participating Continuing Professional Development

(CPD) programs.
 The respondents will be chosen on the basis of the population of CPAs in each sector. They

may either be practicing in commerce and industry, academe, public, and government sector.

These respondents will be profiled in terms of their (a) age, (b) gender, (c) sector, (d) monthly

income, and (e) length of experience.

ASSUMPTIONS
1. Respondents have adequate knowledge of the new continuing professional development
law.
2. Baguio City being a highly urbanized city caters to a number of professionals such as
accountants.
3. The barriers and drivers of the CPAs vary in their age, gender, sector, monthly income and
length of experience.

Research Paradigm

THEORETICAL/CONCEPTUAL FRAMEWORK

Continuing Professional Development (CPD) is defined as the inculcation of advanced

knowledge, skills and ethical values in a post-licensure specialization or in an inter-or

multidisciplinary field of study, for assimilation into professional practice, self-directed research

and/or lifelong learning.

Accreditation has become a buzzword in the accountancy profession. Just before a

Certified Public Accountant (CPA) can renew his/her license to continue practice accounting

profession, he/she has to undergo an accreditation process with the government regulatory agency,

specifically the Board of Accountancy (BOA). One requirement to pass the accreditation process

is the completion of 120 units of Continuing Profession Development (CPD) programs covering

different thematic areas relevant to the professional practice. The providers of these programs

necessarily have to undergo accreditation as provider. At the same time, their program offerings

need to be accredited.
On the other hand, understanding the life situations of every CPAs who will participate in every

CPD programs is also critically important for its success. This understanding can be used as a basis

in formulating and promulgating CPD programs in order to have the program that can fit for all

CPAs.

Figure 1 depicts the proposed flow of the study

Independent Variables
Respondents:
 Age
 Gender
 Accounting Sector
 Monthly income
 Length of Experience

Dependent Variables
Extent to which factors affect the
participation of CPAs in CPD
programs
 Barriers
 Drivers

Expected Output
Better understanding of the
factors affecting Certified Public
Accountants in participating
Continuing Professional Development
(CPD) programs.