Revised Minimum Curricular Requirement for the Bachelor of Science in Accountancy (BSA)

August 8, 2001

CHED MEMORANDUM ORDER NO. 026-01

 

In accordance with the pertinent provisions of Republic Act (RA) No. 7722, otherwise known as the "Higher Education Act of 1994," the following Minimum Curricular Requirements for the Bachelor of Science in Accountancy (BSA) are hereby adopted and promulgated by the Commission.

This CMO shall remain in force and effect until otherwise revoked.

Pasig City, Philippines, August 8, 2001.

(SGD.) ESTER ALBANO-GARCIAChairpersonCommission on Higher Education

 

CHED MEMORANDUM ORDER (CMO) NO. 26

BACHELOR OF SCIENCE IN ACCOUNTANCY

Minimum Curricular Requirement

Introduction

Standards for professional education in accounting are the desirable minimum criteria of quality in a program that purports to prepare graduates for professional careers in accounting and related fields. The purpose of these standards is to establish a level of quality which, when substantially satisfied, would justify the accounting profession's recognition of a program.

These standards are concerned with professional-level accounting education, rather than with vocational-type technical training. This distinction is important because within the broad field of accountancy, various kinds of accounting tasks require varying levels of competence and skills. The persons performing these tasks may be called accountants or auditors, but not all have professional status. The legally recognized professionals in the field of accounting are those who are registered with the Professional Regulation Commission (PRC) and the Board of Accountancy (BOA) as Certified Public Accountants (CPAs).

Professional Identity

1. Need for identity. — The program for professional education in accounting should have its own separate identity. A profession is, by definition, separately identifiable. Among other things, it has a specified common body of knowledge, its own ethical code, and a recognizable social significance. Professional identity is an important motivating factor in assuring the success of an educational program for accountancy. It is needed as a focal point for career identification, the efforts of the faculty, and the recognition and support of the accounting profession and the public.

2. Organizational structure. — The accounting program may be offered in a separate School of Accountancy or in a Department of Accountancy in the Colleges or Schools of Business.

Mission Statement and Objectives

1. Mission statement. — The mission of professional accounting education is to prepare students for careers in accounting and to make them ready to deal effectively with the problems they will face as professional accountants and responsible citizens. TaISDA

2. Primary objectives. — Professional accounting education should provide a means for students to acquire (a) the knowledge, proficiency, and intellectual abilities to provide services of the minimum scope and quality which the public needs and has a right to expect from an entry level professional accountant; and (b) the capacity to grow and develop into a fully qualified professional accountant able to function in a global economy.

2.1 The professional accounting program should be broadly conceived. A person does not become a professional simply by acquiring technical skills. A person aspiring to become a professional accountant needs to have a broad education in which the study of accounting is integrated with the study of the liberal arts and general business.

2.2 As in any program, the accounting program cannot by itself complete a person's education and produce at the end of the course someone who can claim to be a professional accountant. Rather, upon completion of the accounting program, the graduate should have the foundation for building additional knowledge, and with maturity and experience, for acquiring qualities that enhance professional competence, particularly:

a. The ability to work effectively, think analytically and objectively, and exercise self-discipline;

b. The ability to communicate ideas orally and in writing;

c. An awareness of personal responsibility and need for continuing professional education;

d. An appreciation of the professional accountant's high standards of integrity and objectivity; and

e. An awareness of personal responsibility to society as a professional accountant and a responsible citizen.

3. Subsidiary objectives. — Preparing students for the CPA licensure examinations and for employment are subsidiary objectives which should judiciously blend with the primary objectives of preparing students for professional accounting careers. Thus, the accounting graduate should be qualified to take and pass the CPA licensure examinations, and to obtain employment as an entry-level professional accountant. With proper orientation and supervision, he should be able to cope with the problems he will face upon employment.

Administration

1. Administrator. — The accounting program should be administered by a full-time dean/chairman/director, as the case may be, with appropriate qualifications.

a. Holder of a CPA certificate issued by the PRC;

b. Teaching experience of at least five (5) years in the tertiary level, and preferably, two (2) years of administrative experience; and

c. Holder of at least a master's degree in business, accountancy, business education, or educational management;

d.  Teaching experience of at least five (5) years in the tertiary level, and preferably, two (2) years of administrative experience.

1.1 The dean/chairman/director, as the case may be, of the accounting program shall have the following functions:

a. Administer the accounting program;

b. Influence the selection, retention, compensation, and promotion of faculty;

c. Support and monitor the professional development of faculty members;

d. Establish academic standards for admission, retention, advancement, and graduation of students;

e. Develop, submit, and administer, within prescribed guidelines, the budget of the accounting program;

f. Continuously assess and evaluate the accounting program vis-a-vis the performance of graduates; and

g. Promote linkages and networking with other schools, professional organizations, and business and industry.

Faculty

1. Qualifications. — The faculty should possess the educational qualifications, professional experience, classroom teaching ability, computer literacy, scholarly productivity, and other attributes essential for the successful conduct of a professional accounting program.

Twenty-five percent (25%) of the subjects in the accounting program should be taught by faculty members with appropriate master's degrees or any equivalent.

1.1 All faculty teaching accounting and managerial finance courses should be CPAs. They should also comply with the CHED-prescribed requirements. Further, it is also desirable that they have an appropriate master's degree and relevant professional experience. A faculty member without a master's degree shall be provided a period not exceeding five (5) years from the start of his/her teaching career, within which to earn a master's degree.

1.2 All faculty handling Board-related subjects should be duly licensed professionals.

2. Adequacy of staff. — The number of faculty with appropriate qualifications should be adequate to meet the requirements of the professional accounting program.

2.1 A full-time faculty member is one whose total working day is devoted to the school, who has no other remunerative employment elsewhere during regular working hours, who is paid on a regular monthly basis or its equivalent, and who has the requisite academic qualifications.

2.2 A full-load faculty member is one whose major remunerative employment is teaching, who carries a regular teaching load in the school and who has no teaching assignments in other schools. Full-load faculty should preferably be paid on a monthly basis or its equivalent.

3. Teaching loads. — The primary consideration in assigning teaching loads should be the faculty member's capability to adequately fulfill his academic, administrative, and professional responsibilities.

3.1 Faculty should not be assigned to teach more than three or occasionally, four different courses in any one term. Neither should there be too much variety in the courses assigned in any one year.

3.2 De-loading from regular teaching may be allowed for administrative, research, or professional assignments without reduction in compensation.

4. Ranking and evaluation. — A system of ranking and evaluating faculty members should be instituted and implemented.

4.1 The faculty should be assigned academic ranks in accordance with suitable ranking criteria. The usually recognized ranks of collegiate faculty members are: instructors, assistant professors, associate professors, and professors.

4.2 As a general rule, a new member of the faculty begins as an instructor and is subsequently promoted, if deserving. A new faculty member may immediately be appointed to any of the higher ranks if warranted by his/her qualifications.

4.3 Faculty competence and performance should be periodically evaluated using appropriate evaluation instruments to promote the professional growth of individual faculty and provide a basis for advancement and salary adjustments.

4.4 The probationary employment for full-time faculty who are academically qualified should be for a period of not more than three (3) years. Faculty members who have successfully passed this probationary period should be made permanent.

4.5 After due process, faculty members who do not meet minimum standards of competence and performance, or who are found guilty of unprofessional conduct or of violating school regulations should be separated from service.

5. Faculty development. — There should be a formal development program to encourage and help faculty members keep up with new knowledge and techniques in their field, improve their teaching skills and course materials, and continue their professional growth.

5.1 The faculty development program should include provisions for, among others:

a. Adequate and qualified supervision of faculty;

b. Scholarships, sabbatical leaves, and research grants;

c. Financial support for active membership in professional organizations, and attendance at continuing professional education (CPE) programs such as seminars, workshops, and conferences;

d. In-service training courses; TADIHE

e. Periodic faculty meeting; and

f. Participation in faculty committees.

 In the end, the faculty should possess the educational qualifications, professional experience, classroom teaching ability, scholarly productivity, and other attributes essential for the successful conduct of the accounting program.

5.2 As part of their professional development, accounting faculty should take it upon themselves to voluntarily pursue the continuing professional education (CPE) requirements of the profession.

5.3 If the school itself offers graduate programs, it should provide its faculty members the opportunity to earn advanced degrees, with tuition fee privileges and other forms of assistance.

5.4 Attendance at in-service training programs on official time shall be encouraged and records of such attendance shall be filed at the office of the dean/chairman/director, as the case may be.

Curriculum Standards

1. Objectives. — The curriculum should reflect the mission and objectives of professional accounting education. As such, it should provide students with the competency to embark upon careers in professional accounting and related fields and the capacity for further growth and development within the accounting profession.

2. Structure. — As a minimum, the curriculum should consist of at least 174 academic units divided into three parts: general education; business education; and education in accountancy.

3. General education. — The New General Education Curriculum as mandated by CHED shall form part of the requirements for accounting education. General education should contribute to the development of cultured persons, stimulated by broad interest in wide areas of human knowledge and activity and inculcated with a high sense of social awareness and civic responsibility. A broad-based general education is critical to life-long learning and provides the foundation on which to build professional and accounting studies. Its purpose is to provide students with:

a. An understanding of the flow of ideas and events in history, the different cultures in today's world, and an international perspective;

b. Basic knowledge of human behavior;

c. A sense of the breadth of ideas, issues, and contrasting economic, political, and social forces in the world;

d. The ability to conduct inquiries, carry out abstract logical thinking, and understand critical thinking;

e. An appreciation of art, literature, and science;

f. An awareness of personal and social values and of the process of scientific inquiry and judgment;

g. Facility in the use of mathematics and statistics to measure and express economic events; and

h. Ability to communicate effectively, orally and in writing.

4. Business education. — The increasing involvement of public accountants in management advisory services and the significant management responsibilities held by internal accountants underscore the importance of business education to the professional accountant. Students should be able to relate accounting to the problems that confront the management of business and public enterprises. They should be equipped with sufficient understanding of the different types of organizations, how organizations function in the practical context of the business environment, the managerial decision-making process, an appreciation of the importance of ethics in business, how international enterprises operate, and the analytical and quantitative tools that may be applied to the solution of business problems.

5. Accountancy Education. — Accountancy education should furnish students with sufficient depth and breadth in the accounting discipline to enable them to recognize the problems they will face as professional accountants and to provide them with the appropriate attitude, knowledge, and skills useful in solving these problems. This is due to the fundamental changes in both the practice of public accounting and the financial management of businesses. The needs of both career paths include strong communication skills, broad knowledge of business operations, knowledge and skills in the use and evaluation of information technology and systems, an understanding of the global business environment, and a capacity for growth and change. The content of accounting and related courses should be relevant to all areas of professional practice - public accounting, commerce and industry, education, and government service.

6. Implementation. — In implementing the curriculum standards, certain important implications should be kept in mind. These are:

6.1 The standards are intended to be flexible rather than restrictive. They provide a general framework within which each institution should design and develop a curriculum in the context of institutional strength, priorities, and commitment.

6.2  Curriculum development is a dynamic and continuing process. Accounting education should not only keep pace with current realities but should anticipate changes that may take place in business and the accounting profession. Provision should be made for periodic re-examination and research to avoid curriculum obsolescence, preferably once every two to three years.

6.3 Curriculum content should be carefully selected so that the available time and resources are effectively utilized and only the appropriate and pertinent subject areas are included.

6.4 Correlation and integration of the different courses of study are essential to an effective educational program as well as to optimal student achievement. ISCHET

6.5 Finally, the qualitative rather than the quantitative factors of education should be emphasized. The excellence of teaching, quality of students, broadening effect of the total curriculum, along with the development of integrity, professional attitudes, and a continuing desire to learn are more important than course labels, unit requirements, or subject groupings.

6.6 General education components of the curriculum are preferably taken in the first two years of the curriculum. Accounting and Board-related subjects, when taken for the first time, shall be offered only during the regular term. No cross enrollment is allowed for accounting and Board-related subjects, except among schools with consortium arrangements.

6.7 Shown below are minimum curricular requirements of the enhanced Bachelor of Science in Accountancy program. Schools may modify or add subjects in accordance with their institutional objectives and thrusts, provided that these minimum curricular requirements are met.

Minimum Curricular Requirement for Bachelor of Science in Accountancy

 

			Units
I.	General Education Components
	1.	Humanities Cluster	21
		Communication Skills, Part I	3
		Communication Skills, Part II	3
		Sining ng Pakikipagtalastasan	3
		Pagbasa/Pagsulat sa Iba't Ibang
		Disiplina	3
		Philippine Literature	3
		Introduction to Philosophy with Logic	3
		Art, Man, and Society	3
	2.	Math/Science Cluster	15
		College Algebra	3
		Mathematics of Investment	3
		Physical Science	3
		Biological Science	3
		Introduction to Information Technology
		with Word Processing, Spreadsheet, and Other
		Applications	3
	3.	Social Sciences Cluster	12
		Philippine History with Politics and
		Governance	3
		Society and Culture with Family
		Planning	3
		General Psychology	3
		Introduction to Microeconomic Theory
		and Policy With Land Reform
		and Taxation	3
	4.	Life and Works of Rizal	3
Sub-total		51
II	Business Education Components
	1.	Advance Economics	3
		Introduction to Macroeconomic Theory
		and Practice	3
	2.	Finance	6
		Introduction to Business, Finance, and
		Philippine Financial System	3
		Financial Management, Part I	3
	3.	Marketing	3
		Fundamentals of Marketing	3
	4.	Elementary Accounting	9
		Fundamentals of Accounting, Part I	6
		Fundamentals of Accounting, Part II	3
	5.	Management	9
		Principles of Management and
		Organization	3
		Production and Operations Management	3
		Business Policy and Strategy	3
	6.	Business Law	12
		Law on Obligations and Contracts	3
		Law on Business Organizations	3
		Law on Negotiable Instruments	3
	7.	Taxation	6
		Philippine Tax System and Income Tax	3
		Business and Transfer Taxes	3
	8.	Information Technology	3
		Fundamentals of Computer Software	3
	9.	Business Math	6
		Business Statistics	3
		Quantitative Techniques in Business	3
Sub-total		54
III.	Accountancy Education	12
	1.	Speech and Oral Communication	3
		Financial Management, Part II	3
		Human Behavior in Organization	3
		Sales, Agency, and Other Commercial
		Laws	3
	2.	Financial Accounting Theory and
		Practice	15
		Financial Accounting Theory and
		Practice, Part I	6
		Financial Accounting Theory and
		Practice, Part II	6
		Financial Accounting Theory and
		Practice, Part III	3
	3.	Cost Determination, Analysis, and
		Control	6
		Cost Accounting and Cost Management	6
	4.	Management Accounting and
		Management Consultancy Services	9
		Management Accounting, Part I	3
		Management Accounting, Part II	3
		Management Consultancy	3
	5.	Advanced Accounting Problems
		(including Accounting for Not-for-Profit
		Organizations and Government Organizations)	9
		Advanced Accounting, Part I	3
		Advanced Accounting, Part II	3
		Advanced Accounting, Part III	3
	6.	Auditing and Assurance Services	9
		Auditing and Assurance Services, Part I	3
		Auditing and Assurance Services, Part II	6
	7.	Information Technology	9
		Systems Analysis and Design	3
		Information Management and Control	3
		Auditing in an IT Environment	3
			___
Sub-total		69
Total		174
IV.	Physical Education	8
V.	R.O.T.C.	6
Grand Total	188
			===

 

The suggested description of each course is in Annex A.

Instructional Standards

1. Class size. — Class size should preferably not exceed forty (40) students. If an exception cannot be avoided for lecture classes in professional accounting or Board-related subjects, the number may be increased to no more than fifty (50) students depending on the size of room and its acoustics.

Admission and Retention Standards

1. General. — The standards of admission to, and retention in the accounting program, should be sufficiently rigorous and demanding to meet the needs of the profession and merit the respect of the public.

2. Admission to College. — Universities and colleges offering an accounting program should adopt a selective admission policy. Applicants for admission should be screened on the basis of their college entrance examinations, high school class standing/grade point average, interviews, and other appropriate means.

Equivalency credits for non-formal courses/work experience should be granted upon admission. Schools may establish maximum allowable equivalency credits and/or validated credits, but these must not exceed seventy-five (75%) per cent of the total units required to meet the prescribed residence requirement for the course.

3. Admission to the Accounting Program. — Admission to the accounting program should be restricted to students who can demonstrate a high probability of success in the study of accounting through satisfactory academic performance, a qualifying examination, an interview, and/or other appropriate means. The school is given the privilege to require standard admission requirements to the program as reflected in its manual of regulations for students.

4. Retention. — Students should be allowed to continue in the accounting program only by maintaining a satisfactory grade level as stated in the school retention policy. To ensure that grades are a fair measure of academic performance, the following measures should be taken:

4.1 Final departmental examinations of sufficient length and complexity should be required in all accounting, managerial finance, Board-related subjects, and preferably, in all business core subjects.

4.2 All examinations should be properly supervised and proctored.

4.3 Grading should be based on a definite and uniform policy specifying the weights for periodic quizzes, formal examinations, recitations, and other factors used in determining final grades.

4.4 The integrity of final grades should be protected.

5. Residence requirement. — As a general rule, no Accounting degree can be conferred upon a student unless he has taken the last curriculum year of the program in the institution which is to confer the degree.

6. Prerequisite subjects. — No student should be permitted to take any subject until he has satisfactorily passed the prerequisite subjects.

A student shall be allowed to carry only the regular semestral load of the school as allowed by CHED.

Research

1. Schools of Accountancy should undertake research and operate with a competent and qualified research staff which may be shared with other units in the College or University. The competence of the research staff may be judged by the scholarly output of their work. TIDHCc

2. Team research may be undertaken by two or more faculty members, with or without the assistance of students who are enrolled in similar or allied disciplines. Faculty members who are assigned to do research work should be deemed to have rendered teaching. Honoraria and other incentives may be provided.

3. The administration should encourage and support research among its students and faculty and promote utilization of research findings for improvement of teaching methodology, education, and accounting practices. Publication of research work should be undertaken in an in-house journal or other academic journals.

Linkage with Other Schools, Business Establishments, and Accounting Practitioners

1. Schools of Accountancy are encouraged to form themselves into a network or to go into a consortium arrangement to be able to share available resources.

2. Schools of Accountancy are also encouraged to establish linkage or networking with business establishments and accounting practitioners to expose their students to the practical applications of business and accountancy knowledge to real-life situations. These may be in the form of field visits by students to business establishments or accounting firms/offices, and informative lectures on current accounting trends and issues by leading practitioners. Likewise, Schools of Accountancy should get business establishments and accounting practitioners involved in curriculum matters since as prospective employees, they are the intended users of the output of the accounting program.

Standards of Performance for Graduates

1. General. — Graduates of the professional accounting school or program should possess the professional attributes and knowledge of an entry-level professional accountant. Such attributes and knowledge are found in a graduate who has acquired:

1.1 The necessary conceptual, philosophical, and theoretical foundations of the profession;

1.2 Knowledge of the basic principles, practices, and methodologies of the profession; and

1.3 The professional and educational skills, attitudes, competencies, values, and behavioral attributes of the professional accountant.

2. CPA licensure examinations. — Graduates of the professional accounting school or program should be capable of passing the CPA licensure examinations.

This standard should not be interpreted as favoring academic programs narrowly designed to coach candidates for such examination.

3. Employment. — Graduates of the professional accounting school or program should be capable of working effectively as entry level professional accountants and should have the capacity for growth to positions of increased responsibility.

The total effectiveness of a school or program should be evaluated in terms of the success of its graduates in obtaining employment and in advancing in their career as professional accountants.

Implementation and Effectivity

1. Effectivity. — These standards shall take effect in School Year 2002-2003 provided that this curriculum shall be fully complied with by the Bachelor of Science in Accountancy graduates as of May 31, 2007.