Is the Philippines producing enough CPAs?
- Enrico Tabag
- 8 hours ago
- 3 min read
THE results of the May 2026 Certified Public Accountant Licensure Examination (CPALE) again raises the question about the future of the accounting profession.
Out of 9,745 examinees, only 3,004 passed, or a passing rate of 30.83 percent. While we congratulate the new certified public accountants (CPAs), the results also mean that nearly seven out of 10 examinees did not make it through one of the country’s most challenging licensure examinations.
As someone who has spent nearly two decades teaching accountancy students while simultaneously practicing the profession and helping build a growing accounting firm, I am inclined to ask: Is the Philippines producing enough CPAs?
The concern is not the low passing rate. Equally important is the number of individuals entering and successfully completing the CPA pipeline.
Historically, the profession has produced larger numbers of new CPAs. In previous decades, annual CPA passers often exceeded 5,000 and, in some periods, even neared or surpassed 7,000.
Today, despite a growing economy, increasing regulatory requirements and expanding demand for accounting professionals, the May 2026 CPALE produced only 3,004 new CPAs. While one examination does not tell the entire story, it highlights a trend that deserves closer attention.
The issue becomes more significant when viewed alongside developments in accounting education.
When I started teaching, the Bachelor of Science in Accountancy (BSA) program was among the most sought-after business degrees in the country. Today, students can choose from several accounting-related programs such as Management Accounting, Accounting Information Systems and Internal Auditing. These programs offer attractive career opportunities and pathways to globally recognized professional certifications without necessarily requiring a CPA license.
This development is beneficial because it provides students with more options and responds to the evolving needs of the business community. However, it has also created alternative career paths that compete directly with the traditional BSA program.
For many students, the choice is understandable. The BSA program remains one of the most demanding undergraduate programs in the country, with strict retention policies, rigorous coursework, comprehensive examinations and ultimately the CPALE itself. Faced with other viable options that may offer rewarding careers with fewer academic and licensure hurdles, many students naturally choose a different route.
The result is a shrinking pool of future CPA candidates.
I have observed that the challenge facing the profession today is no longer how to maintain standards, but how to sustain a healthy pipeline of future CPAs without compromising those standards.
The effects are already becoming evident.
In public practice, accounting firms continue to face challenges in recruiting and retaining talent, particularly in audit and taxation.
In the academe, colleges and universities struggle to attract qualified CPA faculty members since many professionals pursue more lucrative opportunities in industry and multinational companies.
Government agencies, regulatory bodies and shared service centers are likewise competing for the same limited pool of accounting professionals.
Ironically, this is happening at a time when demand for accounting expertise remains strong. Businesses continue to require professionals capable of navigating increasingly complex financial reporting standards, tax regulations, governance requirements, sustainability reporting frameworks and compliance obligations.
Some may argue that artificial intelligence (AI) will reduce the need for accountants. I believe the opposite may occur.
AI will automate routine and repetitive tasks. However, it cannot replace professional judgment, ethical decision-making, critical thinking, business acumen and professional skepticism.
Rather than eliminating accountants, technology is likely to elevate the profession by allowing CPAs to focus on advisory services, risk assessment, tax planning and strategic decision-making.
The greater risk facing the profession is not AI. It is the possibility that we may not be producing enough CPAs to meet future demand.
This discussion also highlights the important role of the Board of Accountancy in safeguarding the integrity of the CPA profession.
The objective of the CPALE should not be to identify only the most exceptional candidates, but to determine whether a candidate possesses the minimum knowledge, technical competence, analytical skills and professional judgment necessary to begin professional practice.
In this regard, examination questions should remain aligned with the prescribed Terms of Specifications and reflect the competencies expected of newly licensed CPAs. The examination process should strive to avoid ambiguous, duplicative or excessively subjective questions, as well as those based on vague or unsettled interpretations of laws, standards or regulations.
Addressing these challenges will require collaboration among educational institutions, the Board of Accountancy, the Professional Regulation Commission, professional organizations, review centers, employers and practitioners.
The challenge before us is not whether to maintain excellence, but how to ensure that excellence remains attainable for those willing to earn it.
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Enrico D. Tabag, CPA, MBA, is the managing partner of EDT & Co., CPAs and an assistant professor at the University of Santo Tomas Alfredo M. Velayo College of Accountancy.
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