Is a 47.69% passing rate good or bad?

Wow! I can’t believe I have no posts for the past two months here. Sorry guys, I’ve been been so busy lately. As we all know, this time of the year is the budget and planning season for most of the companies.

First of all, I would like to congratulate all our October 2011 Philippine CPA Exam passers! Cheers guys! I know you are still in cloud 9 up to now and your family and friends are so proud of you. You are the talk of town especially if you are among those topnotchers.

The recent passing rate is 47.69% or close to 50%. For a notorious exam like the CPA exams, this is a big feat. I remember during my time when the passing rate ranges only from 19% to 22% and in one instance, not so long ago (I have to stress this as my “young once” bosses and friends are looking at my blog haha), that the passing rate was only around 12% - 14%! Wow! Times are really changing nowadays.

Some attribute this significant jump in passing rates to the increasing demands for the accounting professionals here and abroad so the licensing authorities are pressured to increase the produce of new CPAs. Recent news is filled with the continued booming of the BPO sectors that demands the skills of professional accountants in their workforce. Investments continue to flow to the country and the region. New businesses are being established. Indeed, by the resiliency demonstrated by this part of the globe, we can say the sun shines at the eastern part of the globe – Asia.

Some observers are posing questions in terms of quality. Does it mean that the recent batch of CPAs are of lesser quality as compared to the other batches?

I’m just a bit concerned about the reverberating effects of this huge number of new CPAs in terms of their employment. I know of certain colleagues who have just recently passed the May 2011 exams (passing rate: 40.50%) who are still struggling to find work. Be it noted that, unlike before, CPAs now cannot just certify and sign financial statements right after passing the board. There are numerous accreditations needed in order for one to practice his or her license. Unless he or she is of an entrepreneur kind, there is no choice left for them but to revert to employment. And finding one good employment or employer is another story. 

What do you think?