CPA Licensure Examination (CPALE)
The CPA Licensure Examination is administered by the Professional Regulation Commission (PRC) to license Certified Public Accountants in the Philippines. One of the most challenging professional board exams with approximately 20,000 takers per year.
Exam Schedule (2025)
- May 25, 26, 27, 2025
- October 24, 25, 26, 2025
Exam Statistics
- 20,000+ takers per exam
- 33-34% passing rate
- 75% general average required
- No subject below 65%
Exam Format: 6 subjects over 3 days
Day 1: Management Advisory Services (AM), Auditing (PM)
Day 2: Taxation (AM), Regulatory Framework (PM)
Day 3: Financial Accounting and Reporting (AM), Advanced FAR (PM)
Fresh Questions Every Time
Our questions are constantly updated and randomized. No two quiz sessions are the same, ensuring a unique learning experience each time you practice. This helps you prepare more effectively by exposing you to varied question formats.
Financial Accounting and Reporting (FAR)
30% theory, 70% problems
Conceptual framework, financial statements, cash, receivables, inventory, PPE, intangibles
Topics Covered (8)
- Conceptual Framework of Financial Reporting
- Cash and Cash Equivalents
- Receivables
- Inventory
- Property, Plant, and Equipment
- Intangible Assets
- Current and Non-current Liabilities
- Equity Transactions
Advanced Financial Accounting and Reporting (AFAR)
30% theory, 70% problems
Business combinations, consolidated statements, foreign currency, partnerships, branches
Topics Covered (8)
- Business Combinations and Consolidated Statements
- Investment in Associates and Joint Ventures
- Foreign Currency Transactions
- Partnership Formation and Operations
- Partnership Dissolution and Liquidation
- Branch and Agency Accounting
- Corporate Liquidation and Reorganization
- Government Accounting
Auditing Theory and Practice
50% theory, 50% problems
Audit standards, audit process, internal control, evidence, sampling, reporting
Topics Covered (8)
- Generally Accepted Auditing Standards
- Audit Planning and Risk Assessment
- Internal Control and Control Risk
- Audit Evidence and Documentation
- Audit Sampling
- Audit of Specific Accounts
- Audit Reports and Opinions
- Special Audit Engagements
Taxation
30% theory, 70% problems
Income tax, VAT, percentage tax, withholding tax, estate tax, donor's tax, documentary stamp tax
Topics Covered (8)
- Income Taxation - Individual
- Income Taxation - Corporation
- Value-Added Tax (VAT)
- Percentage Tax
- Withholding Taxes
- Estate Tax
- Donor's Tax
- Documentary Stamp Tax
Management Advisory Services (MAS)
30% theory, 70% problems
Cost accounting, budgeting, variance analysis, decision-making, capital budgeting
Topics Covered (8)
- Cost Concepts and Cost Behavior
- Job Order and Process Costing
- Activity-Based Costing
- Cost-Volume-Profit Analysis
- Budgeting and Standard Costing
- Variance Analysis
- Relevant Costing for Decision-Making
- Capital Budgeting
Regulatory Framework for Business Transactions
70% theory, 30% problems
Corporation law, partnership law, negotiable instruments, banking laws, business regulations
Topics Covered (8)
- Corporation Code
- Partnership Law
- Negotiable Instruments Law
- Banking Laws and Regulations
- Securities Regulation Code
- Intellectual Property Code
- Labor Laws and Social Legislation
- Other Business Regulations
Study Tips for CPA Board Exam
💡 Study Strategies
- • Master FAR and AFAR - these are foundational subjects
- • Practice problem-solving daily (70% of most subjects)
- • Understand PFRS/PAS standards and updates
- • Focus on high-weight topics in each subject
- • Join review centers or study groups for support
🎯 Exam Day Tips
- • 3-day exam: pace yourself and rest well each night
- • Bring calculator (non-programmable)
- • Target 75% overall, no subject below 65%
- • Time management: allocate time per question
- • Review latest tax rates and regulations
Subject Weight and Time Allocation
| Subject | Theory/Problem Ratio | Exam Time | Recommended Study Hours/Week |
|---|---|---|---|
| Financial Accounting (FAR) | 30% Theory, 70% Problems | 4 hours (AM) | 12-15 hours |
| Advanced FAR (AFAR) | 30% Theory, 70% Problems | 4 hours (PM) | 12-15 hours |
| Auditing Theory | 50% Theory, 50% Problems | 4 hours (PM) | 8-10 hours |
| Taxation | 30% Theory, 70% Problems | 4 hours (AM) | 10-12 hours |
| Management Advisory (MAS) | 30% Theory, 70% Problems | 4 hours (AM) | 10-12 hours |
| Regulatory Framework (RFBT) | 70% Theory, 30% Problems | 4 hours (PM) | 6-8 hours |
| TOTAL | 6 Subjects | 24 hours (3 days) | 58-72 hours/week |
Note: Allocate more study time to FAR and AFAR as they are the most difficult and serve as foundations for other subjects.
6-Month CPALE Study Plan
Month 1: FAR Foundation
Focus: Conceptual Framework, Cash, Receivables, Inventory, PPE
- • Week 1-2: Theory and basic concepts
- • Week 3-4: Problem-solving practice (50+ problems per topic)
- • Daily: 3-4 hours study, 30+ problems
Month 2: AFAR Foundation
Focus: Business Combinations, Consolidations, Partnerships
- • Week 1-2: Business combinations and consolidation techniques
- • Week 3: Partnership accounting
- • Week 4: Branch and foreign currency transactions
- • Daily: 3-4 hours study, focus on worksheets
Month 3: Auditing and MAS
Focus: Audit standards, processes, and management accounting
- • Week 1-2: Auditing (standards, procedures, internal control)
- • Week 3-4: MAS (cost accounting, budgeting, CVP analysis)
- • Daily: 2-3 hours per subject
Month 4: Taxation and RFBT
Focus: Tax computations and business laws
- • Week 1-2: Taxation (income tax, VAT, other taxes)
- • Week 3-4: RFBT (Corporation Code, Partnership Law, NIL)
- • Daily: Memorize tax rates and law provisions
Month 5: Comprehensive Review
Focus: Integration and problem-solving speed
- • Week 1-2: Review all subjects (theory refresher)
- • Week 3-4: Intensive problem-solving (100+ problems per subject)
- • Daily: Mock exams and timed drills
Month 6: Final Review and Mock Exams
Focus: Speed, accuracy, and exam simulation
- • Week 1-2: Full-length mock exams (simulate 3-day exam)
- • Week 3: Review mistakes and weak topics
- • Week 4: Light review, rest well, mental preparation
- • Focus: Exam strategies and time management
Pro Tip: Adjust this plan based on your strengths and weaknesses. If you're strong in FAR but weak in Taxation, allocate more time to Taxation. Quality of study matters more than quantity.
Key Formulas Quick Reference
📊 Financial Accounting (FAR)
Accounting Equation: Assets = Liabilities + Equity
Net Income: Revenues - Expenses
Inventory (Weighted Average): Total Cost ÷ Total Units
Depreciation (Straight-line): (Cost - Salvage Value) ÷ Useful Life
Book Value: Cost - Accumulated Depreciation
Allowance for Doubtful Accounts: Accounts Receivable × Estimated %
📈 Advanced FAR (AFAR)
Goodwill: Consideration Transferred - Fair Value of Net Assets
Non-controlling Interest: FV of NCI + FV of Identifiable Net Assets
Equity Method: Cost + Share in Net Income - Dividends Received
Partnership Capital: Beginning Capital + Additional Investment + Share in Income - Drawings
Foreign Exchange Gain/Loss: (Ending Rate - Beginning Rate) × Foreign Currency Amount
💸 Taxation
Individual Income Tax (2025): Use graduated rates (0% to 35%)
Corporate Income Tax: Net Taxable Income × 25%
VAT Payable: Output VAT - Input VAT
Output VAT: Sales ÷ 1.12 × 12%
Percentage Tax: Gross Sales/Receipts × 3%
Withholding Tax: Income Payment × Withholding Rate
📋 Management Advisory Services (MAS)
Contribution Margin: Sales - Variable Costs
Contribution Margin Ratio: Contribution Margin ÷ Sales
Break-even Point (Units): Fixed Costs ÷ CM per Unit
Break-even Point (Peso): Fixed Costs ÷ CM Ratio
Material Price Variance: (AP - SP) × AQ
Material Quantity Variance: (AQ - SQ) × SP
NPV: Present Value of Cash Inflows - Initial Investment
Important: Always check for updated tax rates and formulas before the exam. BIR issues revenue regulations that may change tax computations. Review the latest TRAIN Law and CREATE Act provisions.
Exam Day Checklist
📋 What to Bring
Official Receipt (PRC)
Required for entry
Valid ID with Photo
Government-issued ID
Non-programmable Calculator
Scientific calculator allowed
Black Ballpoint Pens (2-3 pcs)
Blue pen as backup
Pencils and Eraser
For computations and shading
Sharpener
Keep pencils sharp
Water and Light Snacks
Stay hydrated and energized
Watch (Non-digital)
For time management
Face Mask
May be required
⏰ Exam Day Timeline
5:00 AM - Wake Up
Eat breakfast, prepare mentally
6:00 AM - Leave Home
Account for traffic
7:00 AM - Arrival
Find room, settle in
8:00 AM - Exam Starts (AM)
4 hours - stay focused
12:00 PM - Lunch Break
Rest, eat light, review notes
2:00 PM - Exam Resumes (PM)
4 hours - maintain focus
6:00 PM - Day Ends
Go home, rest well for next day
Day 1
MAS (AM)
Auditing (PM)
Day 2
Taxation (AM)
RFBT (PM)
Day 3
FAR (AM)
AFAR (PM)
Prohibited Items: Mobile phones, smart watches, books, reviewers, notes, and any electronic devices except non-programmable calculators. Violation may result in disqualification.
Frequently Asked Questions (FAQ)
120 Practice Questions Available!
All 6 CPALE subjects are now complete with 20 terminology-focused practice questions each. Questions cover key concepts, definitions, and fundamentals essential for the CPA board exam. Start practicing now to master accounting fundamentals!