i

IMPACT OF CONTINUING PROFESSIONAL DEVELOPMENT OF CERTIFIED PUBLIC

ACCOUNTANTS ON PERSONAL AND PROFESSIONAL COMPETENCIES

A Thesis Presented to the Faculty Of

College of Business Administration and Accountancy
Baliuag University
Baliwag, Bulacan

In Partial Fulfillment of the Requirements in the Subject Management Consultancy

For the Degree of Bachelor of Science in Accountancy

By:
Angeles, Diana P.
Butuhan, Clarisse Ann V.
Calderon, Joy Angelica M.
De Jesus, Mary Grace A.
Dela Cruz, Shayne S.
Erespe, Larra Ellaine C.
Macapagal, Filipinas C.
Merced, Madeleine C.
Milasky, Trisha Angela G.
Salvador, Reicee Ann P.
San Miguel, Jedah T.
Sayco, Pamela Angelica D.
April 2019
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APPROVAL SHEET

This Thesis hereto entitled: Impact of Continuing Professional Development of Certified Public

Accountants Personal and Professional Competencies, prepared and submitted by the

proponents, in partial fulfillment of the requirements in the subject Management Consultancy for

the degree of BACHELOR OF SCIENCE IN ACCOUNTANCY has been examined and is

recommended for acceptance and approval for ORAL EXAMINATION.

MR. LUISITO V. CORREA, CPA, MBA, CISA

Adviser

Approved by the Committee on Oral Examination conducted on

Chair

Member
Accepted in partial fulfillment of the requirements for the degree of BACHELOR OF SCIENCE
IN ACCOUNTANCY

MRS. WILHELMINA L. NEIS, CPA

Dean
CBAA
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ACKNOWLEDGEMENT

The researchers wish to acknowledge, with profound gratitude and deepest appreciation, the

following people who will help us to make this research possible:

Mr. Luisito Correa, for his unselfish guidance and timely suggestion while we are

proposing this study. He entertained all the ideas of the researchers with great enthusiasm.

Engr. Francis Gotomanga, for his statistical services that made it possible for the

researchers to discuss and answer the hypothetical questions of this study leading to its

completion.

The parents and guardians of the researchers, for giving them financial and emotional

support while doing this research.

And above all, “The Almighty God”, for His guidance and for sustaining the researchers

throughout the process.

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DEDICATION

The researchers dedicate this study to our Almighty God, the source of our wisdom,

knowledge and strength. He is the reason for their motivation and the inspiration towards

attaining their objectives.

The researchers also dedicate this work to their parents and friends who stood by to ease

their burden throughout the phase of this study and for the help and support during the most

challenging times.

To their professors who guided them from the beginning to the end of this study. Lastly,

to their respective respondents, the Certified Public Accountants in different firms in Bulacan,

for sharing time and information that is necessary to finish this study.
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ABSTRACT

The purpose of this descriptive-quantitative study is to determine the impact of

Continuing Professional Development (CPD) to personal and professional competencies of

independent Certified Public Accountants (CPAs) in the public practice. This study will be

composed of diverse variables to serve as building components that will enable the researchers to

meet its purpose. In order to fully comprehend the implications of completing and complying

with the CPD requirements in the CPA profession that is a timely and relevant concern of CPAs

in the present time, this study is focused on the effect of CPD attendance which has a high

degree of influence to the following factors: benefits of attending CPD programs, personal

competence, personal skills enhancement, professional ethics and values, and professional

competence. The chosen respondents of this research are the CPAs from different accounting

firms in Bulacan. A total of __ CPAs working in different accounting firms around Bulacan were

selected as participants of the study using stratified random sampling. Respondents were 100

CPAs fairly distributed as to age, sex, sector connected, year working and credit unit earned. The

study covered the year 2018. The paper employed descriptive-quantitative design and used a

validated, self-construct questionnaire as instrument.

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TABLE OF CONTENTS

TITLE PAGE …………………………………………………………….…….… i

APPROVAL SHEET ……..……………………………………………………… ii

ACKNOWLEDGMENT ………..………………………………………..……… iii

DEDICATION …………………………..……………………………….……… iv

ABSTRACT ………………..…..…..……………………………….…………… v

TABLE OF CONTENTS ………………………..……………………….……… vi

CHAPTER

I. INTRODUCTION

The Problem and its Background……………………..……………..… 1

Significance of the Study …………………………………………..… 4

Review of Related Literature ……………………………..……..…… 6

Theoretical Framework……………………………………………….. 22

Conceptual Framework………………………………………………... 24

Statement of the Problem……………………………………………… 26

Hypothesis of the Problem…………………………………………….. 27

Definition of Variables………………………………………………… 28

Scope and Delimitation …………………………………..……...…… 29

II. RESEARCH METHODOLOGY

Research Design...……………………………………………..………

Participants and Sampling Procedure……………………………..……

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Instrument ………………………………………………..…………….

Data Gathering Procedure ………………………………………….....

Data Analysis and Statistical Treatment of Data...……...…………….

III. RESULT AND DISCUSSION

IV. SUMMARY, CONCLUSIONS AND RECMMENDATION

REFERENCES

CURRICULUM VITAE
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CHAPTER I

INTRODUCTION

This study aims to determine the effect of Continuing Professional Development of CPAs

practicing their profession in different accounting firms around Bulacan to their personal and

professional competencies. The paper is divided into three chapters. Chapter I presents the

background of CPD, theoretical and conceptual framework to be used, statement of the problem,

hypotheses formulated, and its scope and limitations of the study. Chapters II and III are discussed

later in the study.

The Problem and its Background

With the demands of the ever-changing environment, the Board of Accountancy (BOA)

has instituted programs to align the accountancy profession. These programs include the

accreditation of Certified Public Accountants in academe, in commerce and industry, and in public

practice; and its impact on Philippine accountancy services; the revision of the curriculum in

Accountancy education; and the reconfiguration of the country’s CPA licensure

examinations. CPD plays an important part in enabling professional accountants to develop and

maintain professional competence that is relevant to their role.

The Association of Southeast Asian Nations Mutual Recognition Arrangement (ASEAN

MRA) for Accounting Services, made it necessary for professional accountants to keep and

maintain competitiveness vis-à-vis their Southeast Asian counterparts, in view of the ASEAN

Economic integration. Such competitiveness is achieved through the “continued acquisition and
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updating of knowledge, the honing of skills, and lifelong learning” (Board of Accountancy (BOA),

2016, p.2).

Professional accountants face increased expectations to display professional competence.

These pressures apply to professional accountants in all sectors. Continuing development and

maintenance of professional competence and lifelong learning are critical if the professional

accountant is to meet public expectations. Continuous learning is integral to CPD as professional

accountants need actively to pursue the education, training, knowledge, and skills which they need

to anticipate and adapt to changes in processes, technology, professional standards, regulatory

requirements, employer demands, and other areas. Because the accountancy profession operates

in an environment of change, it may be appropriate for IFAC member bodies to periodically review

their CPD policies and the application of this IES.

Undertaking CPD does not, by itself, guarantee that all professional accountants will

develop and maintain professional competence, necessary to provide high-quality professional

service at all times. Professional competence is the ability to perform a role to a defined standard.

Professional competence goes beyond knowledge of principles, standards, concepts, facts, and

procedures; it is the integration and application of (a) technical competence, (b) professional skills,

and (c) professional values, ethics, and attitudes. However, CPD plays an important part in

enabling professional accountants to develop and maintain professional competence that is

relevant to their role. Therefore, despite some inherent limitations, CPD is an important element

in maintaining public confidence and trust.

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Among the initiatives undertaken by the BOA, the most talked about seems to be the

increase in Continuing Professional Development (CPD) requirements from 60 units in 2016 to

120 units by 2019 for a three-year period for all CPAs in Public Practice, Academe, Commerce

and Industry and Government, and to change the Thematic Area to Competence Areas which shall

be categorized into Technical Competence, Professional Skills and Values, Ethics and

Attitudes. Republic Act 10912 or the “Continuing Professional Development Act of 2016”

requires professions registered with the Professional Regulation Commission (PRC) to comply

with prescribed CPD units as a prerequisite to license renewal. This study is anchored on the idea

that CPD is essential to all CPAs in order to enrich and refine the professional knowledge, skills

and ethics earned by the time of qualification.

The objective for implementing CPD requirements is to “promote and upgrade the practice

of professions in the country… [to] continuously improve the competence of professionals in

accordance with international standards of practice…” (Section 2 of RA 10912). While the

purpose is noble, many CPAs, especially individual practitioners, teachers and ordinary

employees, challenge the practicality and reasonableness of the extensive CPD requirements

imposed on CPAs. They contend that although the trainings are sometimes useful, they are too

tedious and often impractical, costly, redundant and time-consuming. Accessibility for those in the

rural areas (logistical and otherwise) is another issue. Despite the availability of alternatives for

earning CPD credits, many still do not have the means to avail themselves of these options. There

is the problem on the lack of reliable Internet access, the lack of resources to pursue higher learning

and the lack time and skill to do research work.

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In today’s environment, professionals must be relevant and competent to thrive in a global

and integrated playing field. However, regulators must also consider the plight of professionals

who have limited resources to comply with these requirements. While learning is a lifelong

process, a balance has to be achieved so that all stakeholders will emerge winners in the goal of

uplifting the welfare of the general public. (Alejandrino, A., 2018)

Despite the mandate and campaign to disseminate the CPD requirements, several CPAs

still find it hard to comply. The Board of Accountancy (BOA) has encountered a large number of

CPAs who are applying for practice accreditation but failed to meet the required number of units

for CPD. As a result, their practice is derailed and/or discontinued. (Mendoza, 2013)

Significance of the Study

In keeping with the times, the Board of Accountancy (BOA) has instituted programs to

align the accountancy profession with the demands of the ever-changing environment. This study

aimed to benefit the CPAs in public practice in maintaing and enhancing their personal and

professional competencies. Therefore, despite some inherent limitations, CPD is an important

element in maintaining public confidence and trust. Determining the impact of Continuing

Professional Development for Certified Public Accountants would benefit the accounting firms

and employers, CPD Providers, Accreditors and Regulators, the public and CPA Practitioners.

This study will contribute to the accounting firms and employer as it will help them use

this information as they encourage their CPAs to engage with the CPD program and be active

participants of it in different generations of accounting profession. Through this, CPAs can be well
 7

equipped with relevant knowledge, values, ethics and competencies essential for personal

effectiveness and advancement. They will be able to assess themselves about the benefits and

advantages of completing and attending seminars.

This CPD professional training providers, accreditors and regulators may also use the

results of this study to ensure that they continually improve the implementation and programming

of CPD programs, activities, provide relevant trainings, meaningful, enriching and responsive CPD

experience to upgrade the skills of practicing CPAs.

The public will also gain benefit from this study by assessing the competency of the CPAs

in public practice in Bulacan. Their capabilities and how CPD requirement bring quality

accounting services and competent accountants in catering their particular service to the public.

Lastly, it will help the professionals, particularly the CPA Practitioners, gain a deeper

understanding with regards to the impact of CPD to their personal and professional competencies.

They will be able to assess themselves about the benefits and advantages of completing and

attending seminars.It also seeks to determine the types of CPD activities which the CPAs have

attended and their primary providers. To improve the competence and capabilities of the individual

Filipino CPA and upgrade the accountancy profession.

Overall, this study is expecting that the results will contribute a lot, not only to CPAs in

any field, but also their respective employers and accounting firms, and the CPD Providers and

Accreditors. The findings of this study will provide important information of the impact of CPD

among CPAs. This research will also serve as a rich literature for future studies.
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Review of Related Literature

These are the literature and studies that are related to our thesis

Continuing Professional Development. According to CPD Law (R.A. 10912),

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.

IFAC member bodies shall require professional accountants to develop and maintain

capabilities, to perform competently within their professional environments. Require all

professional accountants to undertake CPD. Establish a preferred approach to measure output-

based, input-based, or combination approaches. Facilitate access, monitor, and enforce CPD

Require CPD activities that are relevant, measurable, and verifiable. (IES 7)

Mendoza (2013) stated that the requirement for CPD is suitably provided in the Philippine

Accountancy Law of 2004 which mandates certified public accountants (CPAs) in public

accountancy to undergo an accreditation process. One of the primary requirements for such

accreditation is the units or credits earned from CPD. This poses a serious consideration because

of the public interest in the practice of public accountancy.

The Philippine Institute of Certified Public Accountants (PICPA), the accredited

professional accountancy organization by the Philippines Professional Regulation Commission

(PRC) and IFAC member bodies implementing an “input-based approach” (IES 7) shall require
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each professional accountant to complete at least 120 hours or equivalent learning units in each

rolling three-year period, of which 60 hours or equivalent learning units shall be verifiable;

complete at least 20 hours or equivalent learning units each year; and measure learning activities

to meet the above requirements.

CPD credits can be earned in various ways. It can be gained through any or a combination

of the following: professional track (being a resource speaker, participant or facilitator in face-to-

face or online trainings conducted by accredited CPD providers); academic track (earning a

postgraduate degree, being a professorial chair or researcher); self-directed trainings (participating

in trainings organized by nonaccredited CPD providers, writing articles or technical papers); and

by undergoing other activities as approved by the CPD council, BOA and PRC. (Alejandrino,

2018)

Continuing Professional Development or CPD is an important activity and also a condition

of membership in many professions, including accounting. Professional accountants have a

responsibility to the public, and to professional accountants themselves, to ensure that they

continue to develop and maintain the competence demanded by their professional roles and by the

clients who use their services (Paisey, Paisey and Tarbert 2007). Furthermore, professional

accountants must ensure that they keep up to date with any matters related to their profession

(Guthrie, 2004). Keeping up to date has become paramount for professional accountants since

accounting knowledge continues to develop and change rapidly (Berg 2007).

People expect what is ‘best’ rather than what is ‘right’ for a situation and for that level;

professional competence should be combined with improvisation and general oversight. That is
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why, all over the world the concept of CPD is emerging and developing as a dynamic educational

process to improve and upgrade one’s professional performance. As a part of the ‘global resident’

we should be familiar to cope with and should be trying to contribute in these progress and

development. (Khan, 2012)

Mendoza (2013) also added despite the mandate and campaign to disseminate the CPD

requirements, several CPAs still find it hard to comply. The Board of Accountancy (BOA) has

encountered many CPAs who are applying for practice accreditation but failed to meet the required

number of units for CPD. As a result, their practice is derailed and/or discontinued. Continuing

Professional Development (CPD) however, does not provide absolute assurance that all members

will provide high quality professional service all the time nor will every person who participates

in CPD programs and activities obtain its full benefits because of variances in personal and

professional efficacy and motivation along with the individual’s commitment and capacity to learn

(IES 7, 2006).

Taylor and Francis (2012) also argued that current policies, regulations and practices in

continuing professional development are frequently based on unexamined assumptions and

discounted functions of the complexities and contingent nature of actual practice. Nonetheless,

despite its inherent limits and constraints, CPD requirement, with its objectives and mechanisms,

is but imperative to maintaining public reliance and confidence to the professional’s credibility

and work quality.

According to the study conducted by Yap and Canceran (2017), CPD programs enhance

knowledge, strengthen technical skills and revalidate innate competencies of professionals.

Continuing professional development activities maintains professional standards and is a way to

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combat professional obsolescence. It also develops a feeling of confidence and revalidates

proficient expertise. Moreover, CPD leads to job advancement and professional competence.

Campbell et.al, (2010) cited that competency-based CPD is helpful in addressing the

limitations of current approached to CPA by virtue of its orientation around competencies that

enhance performance. CPD plays an important part in enabling professional accountants to

develop and maintain professional competence that is relevant to their role. Therefore, despite

some inherent limitations, CPD is an important element in maintaining public confidence and trust.

Based on the studies conducted by Mendoza (2013) and Tan (2016). Mendoza (2013) the

enabling factors in the pursuit of CPD among CPAs are taken in different angles. First, the

practicing CPAs undertake CPD as a matter of requirement. Second, they believe that CPD is a

personal initiative of the professional. Third, they are convinced that CPD is beneficial to them.

Tan (2016), the contribution of CPD to career advancement of CPAs can be predicted by the credit

units earned. As CPD programs, activities and sources were determined to have influence on

professional development, CPAs should capitalize on increased best practice participation and

meaningful engagements with CPD to bring about significant benefits and improvement on career

mobility and financial income and to some extent to the development of professional networks and

enhancement of personal competencies. CPD makes a credible springboard to greater

opportunities, successful career and quality life for accounting professionals.

Exploring the link between CPD and attitude of professionals, Rothwell and Herbert (2007)

suggested that attitude to CPD is associated with learning and job commitment than age, education

and experience. The professional accountants have an important place in global business setup;
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taking their technical skills into consideration, accountants need to play a versatile role in the

global economy.

Professional organizations and CPE providers must be genuinely concerned about the

people they train and develop. More than just handing information to people, they must engage in

true-to-goodness education which calls for drawing out the best in people -- “educing” what is

latent in them, and transforming what is potential into something actual. Moreover, the training

and development policies and activities that they pursue must reflect the demands of both the local

and global markets. Doing so, they help Filipino professionals “to meet international competition”

(Udani, 2002)

It was found out on the study of Tan (2016) that there was no significant difference of the

contribution of CPD between the male and female group. The statistical variance showed that sex

has no impact over the level of CPD contribution.

Benefits of Attending CPD Program. In today’s climate and with the existence of a

mandatory CPD scheme, learning can be of most benefit to accountants throughout their careers.

It does so by considering patterns of learning in the accountancy profession and the roles of

continuing professional development (CPD) and lifelong learning, looking at how the learning

experiences of accountants can be used to benefit each other. (Lindsay, 2013)

Lee, Reed, and Poulos (2010) concluded that most participants in their study were

motivated to attend CPD activities because they believe that these activities will provide them new

knowledge. Furthermore, Allinson (2010) also argues that CPD is also implemented to the mutual

benefits of the individual professional, employers, the profession, and society as a whole.
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According to Khan (2012), CPD will maximize staff potential by linking learning to actions

and theory to practice. This leads to better staff morale and a motivated workforce helps give a

positive image or brand to organizations. This is a good tool to help employees focus their

achievements throughout the year. With CPD we will be able to identify our gap in knowledge and

experience. CPD makes our working life more interesting and can significantly increase our job

satisfaction and prevent ‘burn out’.

Through CPD, you’re able to see how far you’ve come, reflect on what you’ve learned and

plug up any gaps in your knowledge or experience. You’ll also be building a portfolio of skills that

you can show to employers or clients. Change is occurring faster than ever, strong CPD credentials

attract equal attention today. Learning about multiple aspects of your career is not only beneficial

for your future, but for your morale and confidence too. Engaging in CPD ensures that your

qualifications never become outdated. You can continually upskill yourself and update your

existing skills, no matter your age, occupation, or educational level. (Oxbridge Academy, 2017)

Companies benefit from the updated skills or knowledge of their employee as well as in

keeping a reputation that their employees have active licenses. This also ensures the continuous

growth and advancement of their very own fields. (Sunio, 2018)

Based on the study conducted by Mendoza (2013), the benefits gained from CPD have not

been directly affecting the CPAs in public accountancy practice. While they can derive different

forms of benefits, these are not the primary enablers of their engagement or participation in CPD.

As CPD programs, activities and sources were determined to have influence on

professional development, CPAs should capitalize on increased best practice participation and

meaningful engagements with CPD to bring about significant benefits and improvement on career
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mobility and financial income and to some extent to the development of professional networks and

enhancement of personal competencies. (Tan, 2015)

Rothwell and Herbert (2007) suggested that the most popular CPD activities were those

related to more immediate or short-term knowledge which is by definition associated with ‘surface’

learning. It was also noted that respondents ranked online discussion the lowest. Marshall, Punys,

and Skyes (2008) asserted that the most popular method for CPD delivery is a mixture of paper,

e-learning and internet-based materials. This could fall under self-directed learning and is easiest

to complete.

. The professional accountants have an important place in global business setup; taking

their technical skills into consideration, accountants need to play a versatile role in the global

economy. In order to maintain the professional contribution of accountants, CPD is the key to

enhance one’s value in a business organization (Lange, Jackling and Basiousdiset, 2013)

Personal Competencies. Mendoza (2013) stated that the overall objective of any learning

activity is the development of competence. The International Federation of Accountants (IFAC)

defines competence as the ability to perform the tasks and roles expected of a professional

accountant, both newly qualified and experienced, to the standards expected by employers and the

general public. Thus, competence is being able to perform a work role to a defined standard with

reference to real working environments. This definition emphasizes the ability of individual

members to perform to standards expected of professional accountants and pre-supposes an

appropriate level of knowledge, skills, professional values and attitudes. The definition allows for

assessments to be made at work or by equivalent means, such as workplace simulations. It is

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expected to raise and enhance the professional’s technical skills and competence required and

expected by the stakeholders and the profession (IES 7, 2011; Metz and Tharenou, 2001)

Based on the study of Tan (2015), the overall level of contribution of CPD to career

advancement was held negligible although CPD showed strongest impact on improvement of

financial income and weakest on enhancement of personal competencies. As CPD programs,

activities and sources were determined to have influence on professional development, CPAs

should capitalize on increased best practice participation and meaningful engagements with CPD

to bring about significant benefits and improvement on career mobility and financial income and

to some extent to the development of professional networks and enhancement of personal

competencies.

Competence needs to be related to performance because the use of skills, knowledge and

attitudes in professional action expresses the possession of competence. Competence can also be

developed, although the extent to and costs at which this can be done is different for competence

domains and personal general abilities and talents. The development of numeracy skills in persons

who have no affinity with numbers is time-consuming and expensive, and organizations which have

to hire workers for jobs with high levels of numeracy skills tend to select on these skills rather than

try to develop these. (Mulder, 2011)

Competencies are essential for carrying out personal and professional activities

successfully. A mixture of knowledge, skill, attitudes, and personal characteristics guides the

professional behavior. Information, skill, and attitudes as per demand of profession are called

competencies (Schaaf et al., 2003)

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Competence is developmental and with the increasing complexity of economic and social

relationships, the accountant will be called upon more and more as a management consultant, as a

controller, or even as a middle or top manager. (Epstein and Hndert, 2002) And in these roles, he

has to be liberally educated man, conservant with such disciplines as the behavioral sciences, the

mathematical sciences, the physical sciences and economic sciences (Villegas, 2004).

Competence is traditionally viewed as the attainment of a static set of attributes rather than

a dynamic process in which physicians continuously use their practice experiences to "progress in

competence" toward the attainment of expertise. A competency-based continuing professional

development (CPD) model is premised on a set of learning competencies that include the ability

to (a) use practice information to identify learning priorities and to develop and monitor CPD

plans; (b) access information sources for innovations in development and new evidence that may

potentially be integrated into practice; (c) establish a personal knowledge management system to

store and retrieve evidence and to select and manage learning projects; (d) construct questions,

search for evidence, and record and track conclusions for practice; and (e) use tools and processes

to measure competence and performance and develop action plans to enhance practice. (Campbell,

et.al, 2010).

The concept of competence is probably as old as humankind. Homo sapiens have always

been desiring to master skills and to find ways to solve practical, professional and scientific

challenges. Certain individuals always received the prerogative to perform certain activities which

had a highly symbolic meaning. (Mulder, 2014)

Mulder (2014) also added that the concept of competence was used in the context of

learning and performance from the outset, and that competence and professional and practice-
 15

based learning are intrinsically related to one another. Competence profiles have helped to

improve professional and practice-based learning in terms of learner assessment, selection,

education, training and development.

Based on the result of study of Tan (2016), the statistical mean average was 1.33 interpreted

as negligible. The result showed that CPD bears no significant impact to personal competencies

that could lead to intrinsic transformation of the accountant (Tames, 2012). Needless to say, the

insignificant statistical value for personal competencies shows that the concentration and

programming of CPD is to develop chiefly professional capacities and not personal qualities.

Personal Skills Enhancement. Yucel and Solak (2012) stated that CPAs with higher self-

esteem have higher work performance perception. They might be able to perform better in a job if

they were filled with skills and knowledge needed in the ever-changing standards and environment

of their profession. Professional identity is important because it will directly influence behaviors

and self-concepts of accountants (Empson, 2004 as cited by Ross, 2016), thus affecting their

performance in a job.

A minority regarded CPD primarily as a way of broadening their skills and knowledge base

in order to maintain their position in a competitive marketplace. (Friedman & Phillips, 2004)

In a globalised business and employment world and with advances in technology, the issue

of employability skills has become increasingly important over the years. Interpersonal skills are

very important for accountants. The literature indicates that this is the skill with the greatest gap

as identified by graduates, employers and academics. (Tan, Lin & Laswad, 2017).

Professional accountants of the future will need to develop and demonstrate the ability to

combine their technical knowledge, skills and abilities with interpersonal behaviours and qualities.
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The practice of accounting and the competencies professional accountants require are also being

reshaped by trends in digital technologies and their impact on business. (Brand, 2016)

Based on the study of Kgpola (2015) the one particular skill that is mentioned as a must

for graduates is communication skills because in every aspect of their job they need to able to

communicate whether verbal (making presentations, consultations with clients) or written (writing

reports, business letters).

The demands of professional accountants in developing economies are not being met in

terms of overall satisfaction with their CPD experiences. Accountants should be encouraged to

embrace the ethos of developing an accounting profession consistent with increasing globalisation

and notions of the sociology of the professions that is they must have expertise in certain

technologies. (De Lange, P., Jackling, B. & Suwardy, T., 2015)

As a professional, we have a responsibility to keep our skills and knowledge up to date.

The credibility of our profession is based on the willingness of each professional to embrace new

skills, knowledge and experience. Such skills include management, education and training,

information technology, audit, communication, team building and others. As a profession we all

need to be self-confident enough to embrace a culture of continuing education and development,

peer review, appraisal, and revalidation. Therefore, CPD should go beyond the acquisition of

knowledge and aim to impact on performance. (Khan, 2012)

Based on the findings of the study conducted by (Kgpola, 2015) indicated the importance

of skills, other that technical skills, with regard to accountants. It was evident that the various

skills were, to some extent, included in the curriculum of universities and that these skills were

further developed during the traineeship and operational word. The skills needed from
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accountants in management positions differ from those at operational level. In the changing

business environment continuous professional development is seen as a means for upholding

competence and knowledge. Accountants aspiring to progress into management positions would

therefore need to especially focus on developing the following skills, where the biggest gaps

were identified:

• Intellectual skills– Accountants would need to develop analytical thinking, decision-

making and problem-solving skills. As managers they would often be involved in strategic

matters and solving business challenges. These skills can perhaps best be developed in situations

where problems must be solved and it can benefit the accountant to work in teams in order to

learn from peers;

• Technical skills– The technical skills which the accountants would need to focus on, are

broader technical skills than the financial accounting, tax and auditing they were exposed to

during their studies and operational work. Broader post graduate qualifications on economic and

business skills, financial management, governance, mathematical and statistical methods, risk

management and strategy are recommended. As a manager the person need to have a broader

view of society and the economic environment as he/she would be involved in the more strategic

decisions in the business.

• Personal skills – The needed personal skills link to those identified under intellectual

and technical skills. Short learning programs on change management, benchmarking, ethics,

marketing, self-management and innovation would be beneficial. It is evident that development

in self-management and people skills is essential;

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• Business skills– Linking to the personal skills, skills in mentoring, interacting with

diverse people, leading, attentive listening and reading and human resource management (that

includes motivating, negotiating and communication) are important. These skills are often

neglected as accountants are often seen as more task focused than people focused.

Professional Ethics and Values. Ethics as defined by the Center for the study of ethics

in profession (2017), ethics refers to a set of rules that describes acceptable conduct in society.

Ethics serve as a guide to moral daily living and helps us judge whether our behavior can be

justified. It also defined by them that ethics refers to society’s sense of the right way of living our

daily lives. It does this by establishing rules, principles, and values on which we can base our

conduct. The concepts most directly associated with ethics are truth, honesty, fairness, and

equity.

For the purposes of the study of Bealman (2013), ethical decision-making preparedness

was defined as adequate combination of accounting ethics education, accounting technical skills

education, applicable learning activities, and suitable instructional methodologies to assist the

CPA in identifying potential ethical dilemmas, alternative solutions, and reaching the action

perceived.

According to Jaijairam (2017), ethics in accounting is mainly known as applied ethics,

which strongly emphasizes human and business ethics, judgments, moral values, and their

application in accountancy. Generally, the major ethical drivers of accounting are an appropriate

practice and a good standard of professionalism.as right versus acceptable.

The ethical responsibility within the business world is not holistic, but lies under the

particular context of ethical behavior. A majority of the corporations in the world have instituted
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ethical issues in the accounting processes, which increases the potential for conflict of interest.

Breach of ethical rules within the corporate finance practice, through financial misstatements,

usually damages an organization’s reputation, customer satisfaction levels, and the trust of

investors on the company. (Micewski and Troy, 2006)

According to Johannes Brinkman (2002), ethics is the discipline that exhibits the matters

related to evil and good, wrong and right, and vice and virtue. Therefore, ethics are used to

examine moral principles, human behavior, and their efforts to distinguish between good and

bad. The development of ethical codes within organizations can secure the fidelity of business

transactions and financial processes, which in turn, affect employee performance, relationship,

and credibility of the company.

Unethical behaviors not only degrade the reputation and credibility of an individual, but

the company as well, increasing the likelihood of criminal activities that could result in the

decrease in profit levels (Sims, 2003).

Being ‘professional’ was a status conferred by recognized bodies which also required

commitment to codes of conduct or codes of ethics, which in turn influence professional

behaviors and commonly professional development activity. There is acknowledgement in the

literature that the concept of professionalism is related to a concern for ethics (Macfarlane,

2001), and also having a shared set of values (Nixon, Marks, Rowland, & Walker, 2001).

Greenwalt (2001) reported accounting ethics as central to CPAs, individuals, and entities

which rely on their services, in an era where CPAs must be groomed and coached on ethical

decision-making preparedness prior to managing financial results and reporting. According to

Ashe and Nealy (2010), “no other single issue is of greater concern to accountants in industry
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and public accounting than ethics” (p. 4). Also suggested by Ashe and Nealy (2010), a civilized

society is built on a foundation of ethical decision-making and behavior, where ethics should

support all accounting functions and actions; however, accounting fraud and scandals resulted in

a public, investor, and corporate loss of trust in CPAs.

Professional Competence. Professional competence is the ability to perform a role to a

defined standard. Professional competence goes beyond knowledge of principles, standards,

concepts, facts and procedures; it is the integration and application of learning outcomes for: (a)

technical competence, (b) professional skills, and (c) professional values, ethics, and attitudes.

Most professional accountancy bodies’ qualification processes encompass three

components: a prescribed program of professional education, some form of work experience and

a formal final examination to determine professional competence. IFAC (2003a) suggest that

purely theoretical and knowledge-based education does not meet the needs of all employers.

Thus, professional bodies are encouraged to find ways to deliver and assess relevant

competences in the most appropriate manner.

Maintaining professional competence allows individuals to continue to learn throughout

their career, to develop their technical skills, and to keep pace with accountancy changes and

innovations. It is important to consider whether professional competence is maintained in a

structured or unstructured way since professional accountants generally have Continuing

Professional Development (CPD) requirements that may need to be verified. (International Bank

for Reconstruction and Development, 2016)

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These participants of CPD perceive competence as an ability to serve the needs of clients

and to ensure that appropriate judgement is made and communicated surrounding predominantly

technical matters. Complete structured and formal CPD, maintain their own learning technical

repositories and engage with their professional firm’s network of expertise. (Murphy, 2016)

In the current social climate, there is an increasing demand for competence among all

groups of professionals. A commonly felt need for every professional is the ability to carry out

his or her duties according to the highest possible standards of character and competence. One

essential way to meet this need for professionals is to engage in continuing learning. (Lalitha,

2005)

Anderson (2000), combines both the emphasis on development of the level of individual

performance and updated knowledge responding to the demand of social change. Continuing

professional development is an on-going process which is led to enhance work satisfaction,

extended work relevant competences, the attainment of professional goals and leads to positive

development at the level of individual knowledge and competence and keeping up to date with

development within their area.

An accountant’s competence is not only embedded in professional qualifications but also

the ability to deliver quality services carefully by considering professional skill and capability.

(Amponsah, Boateng, & Onuoha, 2016)

The link between competence and professional practice however differs by the way in

which competence is defined. Three broad approaches of competence and professional

development are distinguished here: 1. Competence and behaviouristic functionalism, which

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stresses the importance to specifically determine the discrepancies between actual and desired

competence, leading to training of sometimes miniscule skills; an important pitfall of this

approach is fragmentizing learning; 2. Competence as integrated occupationalism, which is

visible in the present qualification frameworks and competence-based education approaches in

which it is stressed that knowledge, skills and attitudes should be integrated in the curriculum,

teaching, learning and testing; 3. Competence as situated professionalism, which indicates that

competence only gets meaning in a certain context; an important pitfall here is holism, when

details of competence are covered under generic expressions of abilities of people, which may be

sufficient in personal development processes, but not for professional certification purposes

(Mulder, 2011). Although these three different approaches have different implications for

professional and practice-based learning, we contend that in all three there are strengths and

weaknesses, and that they can be combined in practice. (Mulder, 2014)

Robinson and Glosiene (2007) describe CPD as, ‘the process by which library and

information specialists maintain a professional competence throughout their careers’ (p. 463),

and as Flatley and Weber (2004) argue, CPD is not required not only in order to improve skills

and knowledge, but also as a component of professionalism that can lead to promotion and

tenure.

Theoretical Framework

Republic Act No. 10912

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“An Act mandating and strengthening the Continuing Professional Development Program

for all regulated professions, creating the Continuing Professional Development Council, and

appropriating funds therefor, and for other related purposes” This Act shall be known as the

Continuing Professional Development Act of 2016, It is hereby declared the policy of the State

to promote and upgrade the practice of professions in the country. Towards this end, the State

shall institute measures that will continuously improve the competence of the professionals in

accordance with the international standards of practice, thereby, ensuring their contribution in

uplifting the general welfare, economic growth and development of the nation.

The CPD Programs in each of the regulated professions aims to enhance and upgrade the

competencies and qualifications of professionals for the practice of their professions, ensure

international alignment of competencies and qualifications of professionals through career

progression mechanisms leading to specialization/sub-specialization, ensure the development of

quality assured mechanisms for the validation, accreditation and recognition of formal, non-

formal and informal learning outcomes, including professional work experiences and prior

learning ensure maintenance of core competencies and development of advanced and new

competencies, in order to respond to national, regional and international labor market needs; and

Recognize and ensure the contributions of professionals in uplifting the general welfare,

economic growth and development of the nation.

Holistic Horizontal Model

In alignment, Holistic horizontal model aimed to meet three dimensions of needs of CPD

attendees at every stage of their career. These dimensions are the organizational, the professional

and the personal dimensions. The first dimension – organizational — refers to needs of CPD
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attendees as corporate members, that is, as part of the corpus of the organization they belong.

The second, the professional dimension, focus on the professional needs related to particular

positions and corresponding roles, duties and responsibilities. The third, the personal dimension,

refers to the spiritual and the mundane needs of CPD attendees as persons/human beings. This

holistic model ensures a balance of activities delivered through dialogue, discussion and

coaching.

Conceptual Framework

The Conceptual framework explains graphically or in narrative form, the main things to

be studied—the variables—and the presumed relationships among them. The independent

variable is the CPD attendance which is needed for the growth and development of professionals

while the dependent variables are the following factors that may be affected due to CPD

attendance.

The next figure to be shown is the four hypotheses to be tested. Each of the hypothesis

will determine the existing relationship between the CPD attendance and the four dependent

factors namely Benefits, Professional Competence, Professional Ethics and Values and Personal

Skills Enhancement.
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Figure 1: Conceptual Framework

Professional
Benefits
Competence

Ho -1 Ho -2

CPD
Attendance

Ho -4 Ho -3

Personal Skills Professional

Enhancement Ethics and Values
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The Ho -1 will determine if there is an existing strong significant relationship between CPD

attendance and benefits. On the other hand, Ho -2 will be able to prove if there is also an existing

strong significant relationship between CPD attendance and Professional Competence. The

existence of the strong significant relationship between the CPD attendance with regards to

Professional Ethics and Values in Ho -3. Lastly, the Ho -4 will help us know if there is an existing

strong significant relationship between CPD attendance and Personal Skills Enhancement

Statement of the Problem

The overarching goals of the CPD is the promotion of general welfare and interest of the

public in the course of delivering professional services through the inculcation of advanced

knowledge, skills and ethical values (PRC,2013 p.2). The CPD is made a mandatory requirement

in the renewal of the PICs of all registered and licensed professionals under the regulation of the

PRC (Republic Act 10912, p.8).

This study aims to investigate the impact of the Continuing Professional Development for

CPAs in public practice employed in Bulacan on professional and personal competencies.

Therefore, this study sought to answer the following questions:

1. How may the respondents be assessed in terms of:

1.1 Benefits from CPD attendance received

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1.2 Professional competence acquired

1.3 Professional ethics awareness

1.4 Personal skills gained

1.5 Personal competence attained?

2. What is the effect of Continuing Professional Development for CPAs in public practice

on the following factors:

2.1 Benefits

2.2 Professional Competence

2.3 Professional Ethics and Values

2.4 Personal Skills Enhancement

2.5 Personal Competence?

Hypothesis of the Study

The following hypotheses were tested in this study to know the impact of the Continuing

Professional Development for CPAs in public practice employed in Bulacan on professional

growth and personal competencies:

H0-1: There is no significant relationship between the CPD for CPAs in public practice and the

benefits of CPD attendance.

H0-2: There is no significant relationship between the CPD for CPAs in public practice and

professional competence.
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H0-3: There is no significant relationship between the CPD for CPAs in public practice and

professional ethics and values.

H0-4: There is no significant relationship between the CPD for CPAs in public practice and

personal skills enhancement.

Definition of Variables

Continuing Professional Development (CPD) - it refers to the inculcation of advanced

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

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

research and/or lifelong learning.

CPD Compliance – this term, as used in study, refers to the efforts undertaken by the CPA to

meet the required number of units for the continuing professional development through

attendance to seminars, trainings, and other activities provided by CPD-accredited agencies, in

order to renew their license.

CPD program – it refers to a set of learning activities accredited by the CPD Council such as

seminars, workshops, technical lectures or subject matter meetings, non-degree training lectures

and scientific meetings, modules, tours and visits, which equip the professionals with advances

knowledge, skills and values in specialized or in an inter- or multidisciplinary field of study, for

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

CPD Provider – it pertains to a natural or juridical person accredited by the CPD Council to

conduct CPD programs

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Personal Competencies – it is the ability to perform the tasks and roles expected of a

professional accountant, both newly qualified and experienced, to the standards expected by

employers and the general public.

Professional – it refers to a person who is registered and licensed to practice a regulated

profession in the Philippines and who holds a valid Certificate of Registration and Professional

Identification Card (PIC) from the Professional Regulation Commission.

Professional Ethics - Professionally accepted standards of personal and business behavior, values

and guiding principles. Codes of professional ethics are often established by professional

organizations to help guide members in performing their job functions according to sound and

consistent ethical principles.

Professional Growth – it is the process of improving and increasing capabilities of staff through

access to education and training opportunities in the workplace, through outside organization, or

through watching others perform the job.

Personal Skill Enhancement - provides the opportunity and knowledge for a client to develop

and strengthen the necessary skills to gain, maintain, and advance in a chosen area

Professional Value - it can be defined as those things that are important to or valued by someone

Scope and Delimitation

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The main objective of this study is to ascertain the impact of CPD of CPAs to personal

competencies and professional growth. It aims to know the significance of having a CPD on their

profession in relationship to: benefits of CPD attendance, professional and personal competence,

professional ethics and values and personal skills enhancement. This research is limited to the

study of CPAs in public practice currently employed and registered only in Bulacan.

The instrument that has been used and applied in conducting this research includes the

use ofLikert Scale. The items are composed of chosen and limited statements that will measure

the corresponding variables by responding if they strongly disagree, disagree, agree and strongly

agree.

Lastly, this study does not incorporate the evaluation of performance of the firms where

the respondents are associated with but rather focused only on the individual performance of the

CPAs themselves.
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