Retention Policy Zafra ET AL PDF

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CHAPTER IINTRODUCTIONBackground of the StudyAccountancy is one of the most in demand profession in today’s fast pacing and globalized world. Businesses of today, according to a well-known British economist Henderson, David (2004), act as vehicles for economic progress. To keep track if the business ...

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CHAPTER I INTRODUCTION Background of the Study Accountancy is one of the most in demand profession in today’s fast pacing and globalized world. Businesses of today, according to a well-known British economist Henderson, David (2004), act as vehicles for economic progress. To keep track if the business is indeed making a progress, the role of accountants is crucial. They served as the person capable of making financial reports about the entities’ financial position and performance in order for the interested parties make a sound and relevant economic decision. This becomes the very reason why accounting is an important tool for business and also referred to as the language of the latter. However, to hasten expertise in this field of specialization, a student needs to enroll a program that has its various courses preparatory for the profession. One of which is taking the program of Bachelor of Science in Accountancy. The current Bachelor of Science in Accountancy (BSA) curriculum adopts the latest CHED MEMORANDUM ORDER NO. 27 Series of 2017, based on the International Education Standards which focuses on equipping students to meet the competencies required in the workplace of such profession within or outside the Philippines. For some universities in the country, it is a 4 – year course program or an 11-trimester course (3 years plus 2 semesters) that is equivalent to a 5-year course in a semestral setting. The prestigious program prepares students to be disciplined and educated accountants by taking the Certified Public Accountants Licensure Examination (CPALE). 1

In addition, accountancy students are expected to be prepared to become excellent business advisors, who are knowledgeable with business structures and economic concepts and are ethically and technically competent in the field of accounting and auditing. Furthermore, there are four (4) major fields of accountancy that a BSA graduate can pursue as a career, namely: public accounting, private accounting, government accounting and accounting education. There are other accountancy programs that are available in some universities such as the Bachelor of Science in Accounting Information System, Bachelor of Science in Management Accounting, and Bachelor of Science in Forensic Accounting. However, the Bachelor of Science in Accountancy is the only accountancy program that is open for accountancy graduate students to the board examination called the Certified Public Accountant Licensure Examination (CPALE). To be in the accountancy program takes a lot of focus and determination to comply with its requirements and this includes the retention policy (University of the Cordilleras, n.d.). Retention policy refers to the policy that has a standard grade that is needed to be maintained by the BSA students. For the past years, the Accountancy program in Palawan State University had implemented a retaining grade of 2.25 (83-85) in all major subjects. According to the study conducted by Chua, Peterwille (2018), a faculty member of the Accountancy Department Faculty, there was always a retention policy in the past but it was not strictly implemented during the late 1990s which subsequently resulted to the university’s lower passing rate over the national passing percentage. He also mentioned that the lowest point of the

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Accountancy program in the board examinations happened on the early 2000 wherein the university at times had no passers in the licensure examination. This retention policy has now been changed into a grade of 2.00 (86-88) for the academic year 2019-2020 in order to meet the goal of the Accountancy Department which is to increase passing rate in the CPA board examination. Thus, the objectives of this study are to know (1) the existing and previous retention policies implemented by the school’s Accountancy department; (2) the reasons of the department why there is a need for changing the retention policy; (3) the issues being faced by the student’s in the program; (4) the accountancy department’s ways of addressing the issues in the performance of the students; and the assessment on the ways that have been done to address the issues.

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Statement of the Problem This study aimed to determine the perspective of the Accountancy department faculty with regards to the change in retention policy of the Bachelor of Science in Accountancy program in Palawan State University. 1. What are the retention policies of Bachelor of Science in Accountancy? a) Previous Policy b) Existing Policy 2. What are the reasons why there is a need for a change in retention policy from the previous policy to the existing policy effective first semester of the school year 2019-2020? 3. What are the issues that the students are facing in the program: a) on previous retention policy? b) on existing policy? 4. How does the Accountancy department address issues in the performance of the students? 5. What are assessments done on the actions taken by the department in addressing the issues?

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Significance of the Study This study is significant to the following: a) BSA students. Knowing well the retention policy will lead to a vast strive for their academic performance. This study will clear out the reason behind the implementation of the retention policy and it could be a motivation to the BSA student to educate their selves well for them to be able to be retained in the program. b) Accountancy Department Faculty. This research is significant to the Accountancy Department Faculty that can be served as their assessing tool if the said retention policy is effective to the academic performance of the BSA student or it just a makeweight to the burden of the students. In addition, it could help them to evaluate if their measures towards the issue facing by the BSA student are effective. c) School. This research is important to Palawan State University that can be served as their basis in formulating a more effective programs and policies towards the academic performance of the students, in which they can produce competent BSA student who can pass the CPALE. d) Future researchers. Such study can be their basis in conducting their own studies, and at the same time encourage future researchers to involve themselves into a deeper study on localities and schools.

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Scope and Delimitation of the Study This study was delimited in terms of problem, population, locale and time frame. Problem. This study aimed to know the previous and existing retention policy of the Accountancy program; the reasons why there is a need for change in retention; the issues faced by the students on previous and existing retention policy; Accountancy Department’s ways to address the issues; and assessment on these ways through the said department’s perspective. Population. This research covered a total sample population of five (5) faculty members in the Accountancy Department who are responsible in addressing the issue on changing the retention policy of the Accountancy program of Palawan State University. Locale. The study was conducted at the College of Business and Accountancy of Palawan State University located in Tiniguiban Heights, Puerto Princesa City, Palawan. Time Frame. This study was started on August 27, 2019 and was completed in December 2019.

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CHAPTER II REVIEW OF RELATED LITERATURES AND STUDIES This section contains studies and literatures on the retention policy in higher education course programs especially in the Accountancy program. These materials were gathered from books, online sources, thesis and dissertations, and other unpublished materials that provided the researchers with an exhaustive review of the topic and the essential background knowledge to pursue this study. Local Related Literature The retention policy is a set of guidelines by the department of a course program usually for major subjects in order for students to comply with such requirements and thrive to stay and to maintain one’s self in the program. Such policy is intended for the discipline, hard work and determination training for students with the help of the much availability of professors and facilities that will reflect the improved high standards and betterment of a university. In the Accountancy program, the retention policy is highlighted as the basis for an accountancy student to be deserving in the program. Such grade standard policy is considered to be an encouragement and to take such program into a serious matter in order to be well-prepared for the CPALE. In connection, according to a local related literature (n.d.), the implementation of a retention policy in a university contributes to the increase number of board passers that students are forced to study in order to comply with the standardized grades and pass the major accounting subjects. In the University of the East, the retention policy for accounting subjects is 7

set for a 2.5 grade, the literature source given stated that the higher grades is the better which encourages the students not only to pass but also to have a better grades. In addition from the official website of Lyceum University of the Philippines, other universities in the Philippines such as the University of the Philippines (UP) and Ateneo de Manila University (ADMU) are using the retention policy as a method to raise the University’s academic standards and deemed essential to the Grade Point Average of their students (GPA) in each universities. In the same source, the retention policy is defined as a set of guidelines in which a certain school follows a minimum grade for accountancy students in order for them to advance to the next level where students require a lot of focus and determination to deserve in the Accountancy program. It is emphasized then that the implementation of the retention policies gives a great impact by producing top-notchers and high percentage of students passing the CPA board examination. Foreign Related Literature On a foreign literature source, according to Bowman (2010), grade retention is widely practiced although it does not typically increase the performance of a student. Supported arguments including for retaining a child are immaturity, an extra year of schooling will produce successful academic outcomes is considered a belief, and failure to meet criteria for promotion. Some people against in the retention policy emphasized that it is not beneficial to students' academic progress, too much financial cost and cost to children's self-esteem, and there is a high possibility of a student to drop out of school.

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In addition, students are said to be threatened with the retention policy by not meeting the required academic standards as teachers and administrators are pressured to implement (Anderson, Whipple & Jimerson, n.d.). It was emphasized that there is an unclear understanding if such threat is effective in motivation students to work harder. However, in terms of its impact to the students’ mental health, such pressure may be increasing their stress levels regarding their academic achievement. Furthermore, it also stated that the retention policy indicates lower self-esteem and lower rates of school attendance of. Students who have experienced this and considers dropping out of school without a diploma face considerable difficulty finding and maintaining employment for self-sufficiency and experience higher rates of mental health problems, chemical abuse and criminal activities than those who have graduated. According then to Owings and Magliaro (n.d.), an historical overview of the retention rate in the early 1900’s is much far from today’s high rating standards. It was also mentioned that retention harms learners and it is more likely to results students to drop out from school, belong to an underprivileged background, be male and African American, and are accompanied with less educated parents. While in a portion stated in a literature review of Stapleton and Robles (2009), it was implied that teachers should have extensive training on interventions necessary for students who are at-risk for grade retention, and administrators should handle each retention situation with deep consideration. On the other hand, counselors should become more focused on assisting students with emotional needs where students can use them as an outlet to vent out their feelings and thoughts and they leave the administrative matters on the school academic performance. 9

Local Related Studies On the other hand, a local study focused on the performance of BSA graduates in the CPALE that serves as a basis of enhancement. Perez (2015) stated in his study that the CPALE results in the country is the preferred and best way in measuring the students’ performance taking up the said professional field. This serves as a basis of enhancement of how improved the programs are and will show the reflection of the teaching-learning process of the accountancy department which the school’s competency and effectives as an institution of learning is derived from the results and performance of the Accountancy students. As stated by Perez (2015, as cited in Basaen et al., 2005), achieving the passing rate examination of the CPALE is considered the key factor of the kind of students and quality of instruction that faculty provides. As also mentioned in the said study, the Commission on Higher Education (CMO-03-s2007) gave caution and warned universities that offers Bachelor of Science in Accountancy with poor performance of their BSA graduates in ten CPA Board examinations within a period of five years could lead to the gradual phase-out and would lead to an eventual closure of the said accountancy program in the university. Universities with the said program are in need to have a close and strict monitor in the overall passing performance of their BSA graduates and that the overall rating should not fall below the national passing rating. This would be considered as a danger signal for an accountancy school to begin sharpening its accountancy program. Worst, four-zero-rate might bring the program to an embarrassing closure.

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The CPA board examination is composed of seven subjects; Theory of Accounts, Business Law and Taxation, Management Services, Auditing Theory, Auditing Practice, Practical Accounting Problem 1 and Practical Accounting Problem II (RA 9298, section 15). In addition, it is stated in the Philippine Accountancy Law (RA 9298, Section 16), that to be qualified as having passed the licensure examination for accountants, a BSA graduate must obtain a general average of seventy-five LPU-Laguna Journal of Multidisciplinary Research Vol. 4 No.3 September 2015 101 Research and Statistics Center LPU-Laguna percent (75%), with no grades lower than sixtyfive percent (65%) in any given subject. He or she then must obtain the rating of seventy-five percent (75%) and above in at least a majority of subjects as provided, he/she shall receive a conditional credit for the subjects passed; provided that a candidate shall take an examination in the remaining subjects within two years from the preceding examination. The importance of the retention policy is then addressed for such difficulty. The College of Business and Accountancy in 2010 devised a retention policy where in the year 2013 to 2014, a 2.5 retention policy grade must be maintained for all subjects such as accounting, law, taxation, English and mathematics subjects. In connection, a subjected qualifying examination per year level before admittance to the next level is a must policy in order to conduct discipline in the program. A total of three qualifying examinations for the program are done where the examination will simulate actual board methods and standards, and the zero transmutation. The results of the licensure CPA examination would test the effectiveness of this policy. With this policy, the importance of the university’s recognition from independent local and international accreditors are considered an opportunity in order for them to know how well-

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progressed the said program is where a high level of accreditation would result to less casualties in the licensure examinations and higher passing percentage. In connection to another local source by the study of Henry D. Runfino about the Core Competencies for Accountants of BS Accountancy Students of Tarlac State University: Input to Accounting Education, the study concluded that the identified most important source of core competency that was also considered as the main problem subjected are in the field exposure particularly the on-the-job trainings or internship. Reasons such as the time shortage requirement on their on-the-job training and the availability of accounting and auditing services in companies or units are identified. In addition, the exposure and learning or also known as the out-of-class exposure was also deemed limited and problems in classroom discussion; problem solving and theory questions were raised up by the students. Other major problems discovered where the insufficiency of the teaching strategy or technique and lack of discussion on recent topics or subjects necessary to the profession were identified as major problems. As the explained findings in the study, the graduating BSA students assessed and considered themselves as almost competent and having the average knowledge and understanding of accounting and finance and organizational and business knowledge. However, they showed fairly competence or having below average knowledge and understanding of information technology (IT), general knowledge and organizational and business knowledge which include industry or sectoral perspective, risk analysis and management and administrative capability and efficiency. The graduating BSA students assessed

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themselves as almost competent or having average knowledge and to some extent they were ready to use their interpersonal and communication skills in the profession. These include their capability to work in groups and being a team player with diverse personalities and backgrounds and their capability to listen and communicate information effectively at all organizational levels. The students also showed that preferred using their writing skills than oral and they showed below average knowledge. In addition, the study also mentioned that the students were ready to use their intellectual skills professionally that includes skills on analysis, problem solving and strategic or analytical thinking. Overall, the study signifies that the graduating BSA students assessed themselves as almost competent or having average knowledge and understanding of the accounting professional ethics, including integrity, objectivity and independence, professional competence and due care, confidentiality and professional behavior which are the qualities needed to be a professional accountant as well as they were described to be competent and ready to distinguish what is morally right and wrong in performing task needed by the profession (2016). Another study by Palawan State University’s accounting professor and scholar, Mr. Chua’s (2018) study focused on the factors in contributing to the success of Palawan State University’s CPA candidates. In the findings of the study, it has identified the preferred review center and session the former enrolled in. Besides, other factors such as hours of studying and resting and as well as the strategy and techniques were also identified and how many times it took for the candidate to pass the CPA Licensure Examination. The data was gathered through an electronic survey automated in as Google Survey and same data was then analyzed through electronic data analysis software called the SPSS Version 19. 13

The findings in the study showed that more than two-thirds (2/3) of the successful examinees are considered first takers and were enrolled in the afternoon session of RESA Review School. In terms of their studying matters, the subjects preferred to self-review at home that they usually spend more than 8 hours of studying in the evening, having under 8 hours of rest but makes it less different compared to normal hours of sleep.
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