TL;DR: To pass the CPALE you need a general average of 75 percent with no grade lower than 65 percent in any subject. Conditional credit is widely misdescribed online: under Section 16 of RA 9298 it requires 75 percent or above in at least a majority of the subjects — four of six — not merely a 75 percent average. And retaking is not unlimited: Section 18 disqualifies anyone who fails two complete CPA board examinations until they complete at least 24 units of subjects given in the licensure examination.
Introduction
The Certified Public Accountant Licensure Examination is administered by the Professional Regulation Commission through the Board of Accountancy, and it is the only route to a CPA licence in the Philippines. It runs over three consecutive days across six subjects, which makes stamina part of the test rather than an incidental feature of it.
Most CPALE guides online get two rules wrong, and both matter enormously to how you plan a retake. This guide states them from the statute itself.
The Rules That Govern the Exam
The Philippine Accountancy Act of 2004 (Republic Act No. 9298) is the governing law. Three of its sections decide almost everything about your attempt.
| Rule | What RA 9298 requires | Section |
|---|---|---|
| Pass | General average of 75%, no grade lower than 65% in any subject | 16 |
| Conditional credit | Rating of 75% or above in at least a majority of subjects — four of six | 16 |
| Removal of conditions | Sit the remaining subjects within two years; then 75% general average and at least 65% in each subject re-examined | 16 |
| Retake after two complete failures | Complete at least 24 units of subjects given in the licensure examination first | 18 |
Passing — Section 16
A candidate must obtain a general average of 75 percent, with no grade lower than 65 percent in any given subject. Both conditions apply at once. A 78 percent average with one subject at 62 percent is a failure, not a pass.
Conditional credit — Section 16
This is the rule most often misstated. The statute grants conditional credit to a candidate who obtains a rating of 75 percent and above in at least a majority of the subjects. With six subjects, a majority is four. Passing four subjects at 75 percent or better earns you credit for those four.
You then sit the remaining subjects within two years of the preceding examination. On that re-examination you must obtain a general average of at least 75 percent and at least 65 percent in each subject re-examined — otherwise you are considered to have failed the entire examination and the credits go with it.
Note what this is not: it is not triggered by scraping a 75 percent general average while failing one or two subjects. Plenty of published guides describe it that way. They are describing something the law does not say.
The 24-unit rule — Section 18
Any candidate who fails two complete CPA board examinations is disqualified from taking another set unless they submit evidence to the Board that they enrolled in and completed at least 24 units of subjects given in the licensure examination. This is a real gate, not a formality, and it is the strongest argument for treating your second attempt as your last unplanned one.
The Six Subjects
The Board sets the subject clustering and item allocation and publishes a Program of Examination for each administration. Take the day-by-day allocation and the item counts from that document rather than from any secondary source, because the Board may re-cluster subjects. The six current subjects are:
Financial Accounting and Reporting (FAR)
Philippine Financial Reporting Standards and Philippine Accounting Standards, financial statement preparation, and the conceptual framework. Recurring high-yield areas include investment property, financial instruments, revenue recognition and leases.
Advanced Financial Accounting and Reporting (AFAR)
Partnership accounting, corporate liquidation, joint arrangements, business combinations, consolidated financial statements, government accounting and construction contracts.
Management Advisory Services (MAS)
Cost accounting, budgeting, cost-volume-profit analysis, capital budgeting, performance evaluation and management decision-making. The most analytical subject.
Auditing (AUD)
Philippine Standards on Auditing, audit planning, risk assessment, internal controls, audit evidence, audit reports and professional ethics — the full engagement cycle.
Taxation (TAX)
The National Internal Revenue Code as amended, income taxation, business taxes, estate and donor's tax, documentary stamp tax, local government taxation and tax remedies.
Regulatory Framework for Business Transactions (RFBT)
Obligations and contracts under the Civil Code, partnerships and corporations under the Revised Corporation Code, negotiable instruments, sales and other commercial law. Effectively a business law paper.
Schedule and Filing
PRC publishes the dates for every licensure examination in a single resolution covering the calendar year, released the preceding November. The CPALE appears there twice. Filing runs through the Licensure Examination and Registration Information System (LERIS), and slots at popular testing centres close early, so file as soon as the window opens rather than as the deadline approaches.
Examination fees are set by PRC and revised periodically. Take the current amount from LERIS at the point of filing; any figure quoted elsewhere is a snapshot of a past cycle. Cross-check dates against our board exam schedule for 2026.
Documentary Requirements
- PSA birth certificate
- Transcript of Records with Special Order number
- BS Accountancy diploma
- Certificate of Good Moral Character
- PSA marriage certificate, if your surname changed
- PRC application through LERIS
- Passport-sized photographs meeting PRC specifications
- Valid government-issued ID
- Payment of the current examination fee
How to Review for It
Start early and treat it as a full workload
The CPALE compresses four years of accounting education into six papers over three days. A review period measured in months rather than weeks is the norm, and the constraint is usually consistency rather than raw hours.
Weight your time by where you actually lose marks
Diagnose before you allocate. A retaker who conditioned on TAX and AFAR should not be splitting time evenly across six subjects. Past scores are the most useful data you have.
Do not underestimate RFBT
It is a law paper written for accountants, and accounting graduates are frequently weaker on statutory material than on computation. Read the actual provisions of the Civil Code, the Revised Corporation Code and the Negotiable Instruments Law rather than relying on summaries.
Master the standards, not just the entries
The exam increasingly tests conceptual understanding of PFRS and PAS. Knowing why a standard exists survives a reworded question; a memorised journal entry does not.
Simulate the three-day grind
Take full-length timed papers on a schedule. Endurance across three consecutive days is a distinct skill from subject knowledge, and it is trainable.
Decide on a review centre deliberately
Review centres provide structure, updated materials and pacing. They are not required to pass and they are a real cost. Compare programmes and current fees directly with each centre — see our guides to CPA review centers, the CPAR vs ReSA comparison, and how to pass the CPA board exam.
After Passing
Oath-taking and registration. Attend the PRC oath-taking and register for your licence to receive your Professional Identification Card.
Accreditation with the Board of Accountancy. Signing audit reports and practising public accountancy require BOA accreditation, which carries its own meaningful-experience requirement under RA 9298 and the Board's rules.
Career tracks. Public practice, private industry, government service and academe. CPA holders hold Civil Service Professional eligibility, which matters for government roles. Academic posts generally require a master's degree alongside the licence.
Continuing Professional Development. CPD units are required for renewal, in areas set by the Board. Earn them through PRC-accredited providers.
Sources
- Republic Act No. 9298, Philippine Accountancy Act of 2004, Sections 15, 16 and 18 — lawphil.net
- Professional Regulation Commission, schedule of licensure examinations and LERIS — prc.gov.ph
- PRC, Schedule of Licensure Examinations for the Year 2026 — prc.gov.ph
Your CPA Journey Starts Here
Compare accounting programmes and CPA review centres on SchoolFinderPH, and read our breakdown of accounting schools by CPALE performance before you choose where to review.
