Here are the four types of audit reports that are given by external
1. Unqualified Opinion
If your company gets this opinion, that’s a good
thing. An unqualified opinion indicates that the information presented in a
company’s financial report is clean. As in a medical patient’s clean bill
of health, an unqualified opinion shows that the audited financial statements
can be presumed to be free from misstatements.
2. Qualified Opinion
An opinion rendered in a qualified audit report is
similar to an unqualified opinion; however, the auditing body cannot express an
unqualified opinion for several reasons. One reason could be that the company
did not present its financial records in accordance with GAAP.
3. Disclaimer Opinion
Auditors give a disclaimer when they are unable to
express a definite opinion. This can be due to the lack of properly maintained
financial records or the absence or insufficient support from the management.
For instance, an auditor may not have had the opportunity to fulfill tasks that
they deem to be crucial to the audit, such as observing operational procedures
or reviewing particular procedures.
4. Adverse Opinion
When auditors issue an adverse opinion, it indicates that there has been a gross misstatement and, possibly, fraud, in the preparation of the company’s financial records. An adverse opinion shows that the company’s records have not been prepared in accordance with GAAP. Financial statements with adverse audit opinions are typically rejected by financial institutions or investors.
As a result of economic, industrial, and technological
developments, different specialized fields in accounting have emerged.
The famous branches or types of accounting include:
financial accounting, managerial accounting, cost accounting, auditing,
taxation, AIS, fiduciary, and forensic accounting.
Financial accounting involves recording and classifying business
transactions, and preparing and presenting financial statements to be used by
internal and external users.
In the preparation of financial statements, strict
compliance with generally accepted accounting principles or GAAP is observed.
Financial accounting is primarily concerned in processing historical data.
Managerial or management accounting focuses on providing
information for use by internal users, the management. This branch deals with
the needs of the management rather than strict compliance with generally accepted
Managerial accounting involves financial analysis, budgeting
and forecasting, cost analysis, evaluation of business decisions, and similar
3. Cost Accounting
Sometimes considered as a subset of management accounting,
cost accounting refers to the recording, presentation, and analysis of
manufacturing costs. Cost accounting is very useful in manufacturing businesses
since they have the most complicated costing process.
Cost accountants also analyze actual and standard costs to
help managers determine future courses of action regarding the company’s
External auditing refers to the examination of financial
statements by an independent party with the purpose of expressing an opinion as
to fairness of presentation and compliance with GAAP. Internal auditing focuses
on evaluating the adequacy of a company’s internal control structure by testing
segregation of duties, policies and procedures, degrees of authorization, and
other controls implemented by management.
5. Tax Accounting
Tax accounting helps clients follow rules set by tax
authorities. It includes tax planning and preparation of tax returns. It also
involves determination of income tax and other taxes, tax advisory services
such as ways to minimize taxes legally, evaluation of the consequences of tax
decisions, and other tax-related matters.
Accounting information systems (AIS) involves the
development, installation, implementation, and monitoring of accounting
procedures and systems used in the accounting process. It includes the
employment of business forms, accounting personnel direction, and software
Fiduciary accounting involves handling of accounts managed
by a person entrusted with the custody and management of property of or for the
benefit of another person. Examples of fiduciary accounting include trust
accounting, receivership, and estate accounting.
Forensic accounting involves court and litigation cases,
fraud investigation, claims and dispute resolution, and other areas that
involve legal matters. This is one of the popular trends in accounting today.
Focusing on a
If you want to focus on a specialization, you may want to
consider obtaining an accounting certification in your chosen field. It will
give you an edge over those who are uncertified. Due to the increasing
population and demand for competitive professionals, you need to step it up a
little to get recognized.
Some of the most famous certifications include the Certified
Public Accountant (CPA), Certified Management Accountant (CMA), Certified
Internal Auditor (CIA), Certified Financial Planner (CFP), and Certified
Information Systems Auditor (CISA).
The Framework’s purpose is to assist the IASB in developing
and revising IFRSs that are based on consistent concepts, to help preparers to
develop consistent accounting policies for areas that are not covered by a
standard or where there is choice of accounting policy, and to assist all
parties to understand and interpret IFRS. [SP1.1]
In the absence of a
Standard or an Interpretation that specifically applies to a transaction,
management must use its judgement in developing and applying an accounting
policy that results in information that is relevant and reliable. In making
that judgement, IAS 8.11 requires management to consider the definitions,
recognition criteria, and measurement concepts for assets, liabilities, income,
and expenses in the Framework. This elevation of the importance of the
Framework was added in the 2003 revisions to IAS 8.
The Framework is not
a Standard and does not override any specific IFRS. [SP1.2]
If the IASB decides to issue a new or revised pronouncement
that is in conflict with the Framework, the IASB must highlight the fact and
explain the reasons for the departure in the basis for conclusions. [SP1.3]
The Framework addresses:
the objective of general purpose financial
qualitative characteristics of useful financial
financial statements and the reporting entity
the elements of financial statements
recognition and derecognition
presentation and disclosure
concepts of capital and capital maintenance
Chapter 1: The
Objective of general purpose financial reporting
The primary users of
general purpose financial reporting are present and potential investors,
lenders and other creditors, who use that information to make decisions about
buying, selling or holding equity or debt instruments, providing or settling
loans or other forms of credit, or exercising rights to vote on, or otherwise
influence, management’s actions that affect the use of the entity’s economic
The primary users need information about the resources of
the entity not only to assess an entity’s prospects for future net cash inflows
but also how effectively and efficiently management has discharged their
responsibilities to use the entity’s existing resources (i.e., stewardship).
The IFRS Framework notes that general purpose financial
reports cannot provide all the information that users may need to make economic
decisions. They will need to consider pertinent information from other sources
as well. [1.6]
The IFRS Framework notes that other parties, including prudential and market regulators, may find
general purpose financial reports useful. However, these are not considered a
primary user and general purpose financial reports are not primarily directed
to regulators or other parties. [1.10]
Information about a
reporting entity’s economic resources, claims, and changes in resources and
Information about the nature and amounts of a reporting
entity’s economic resources and claims assists users to assess that entity’s
financial strengths and weaknesses; to assess liquidity and solvency, and its
need and ability to obtain financing. Information about the claims and payment
requirements assists users to predict how future cash flows will be distributed
among those with a claim on the reporting entity. [1.13]
A reporting entity’s economic resources and claims are
reported in the statement of financial position. [See IAS 1.54-80A]
Changes in economic
resources and claims
Changes in a reporting entity’s economic resources and
claims result from that entity’s performance and from other events or
transactions such as issuing debt or equity instruments. Users need to be able
to distinguish between both of these changes. [1.15]
reflected by accrual accounting
Information about a reporting entity’s financial performance
during a period, representing changes in economic resources and claims other
than those obtained directly from investors and creditors, is useful in
assessing the entity’s past and future ability to generate net cash inflows.
Such information may also indicate the extent to which general economic events
have changed the entity’s ability to generate future cash inflows. [1.18-1.19]
The changes in an entity’s economic resources and claims are
presented in the statement of comprehensive income. [See IAS 1.81-105]
reflected by past cash flows
Information about a reporting entity’s cash flows during the
reporting period also assists users to assess the entity’s ability to generate
future net cash inflows and to assess management’s stewardship of the entity’s
economic resources. This information indicates how the entity obtains and
spends cash, including information about its borrowing and repayment of debt,
cash dividends to shareholders, etc. [1.20]
The changes in the entity’s cash flows are presented in the
statement of cash flows. [See IAS 7]
Changes in economic
resources and claims not resulting from financial performance
Information about changes in an entity’s economic resources
and claims resulting from events and transactions other than financial
performance, such as the issue of equity instruments or distributions of cash
or other assets to shareholders is necessary to complete the picture of the
total change in the entity’s economic resources and claims. [1.21]
The changes in an entity’s economic resources and claims not
resulting from financial performance is presented in the statement of changes
in equity. [See IAS 1.106-110]
Information about use
of the entity’s economic resources
Information about the use of the entity’s economic resources
also indicates how efficiently and effectively the reporting entity’s
management has used these resources in its stewardship of those resources. Such
information is also useful for predicting how efficiently and effectively
management will use the entity’s economic resources in future periods and,
hence, what the prospects for future net cash inflows are. [1.22]
Qualitative characteristics of useful financial information
The qualitative characteristics of useful financial
reporting identify the types of information are likely to be most useful to
users in making decisions about the reporting entity on the basis of
information in its financial report. The qualitative characteristics apply
equally to financial information in general purpose financial reports as well
as to financial information provided in other ways. [2.1, 2.3]
Financial information is useful when it is relevant and
represents faithfully what it purports to represent. The usefulness of
financial information is enhanced if it is comparable, verifiable, timely and
Relevance and faithful representation are the fundamental
qualitative characteristics of useful financial information. [2.5]
Relevant financial information is capable of making a
difference in the decisions made by users. Financial information is capable of
making a difference in decisions if it has predictive value, confirmatory
value, or both. The predictive value and confirmatory value of financial
information are interrelated. [2.6-2.10]
Materiality is an
entity-specific aspect of relevance based on the nature or magnitude (or both)
of the items to which the information relates in the context of an individual
entity’s financial report. [2.11]
General purpose financial reports represent economic
phenomena in words and numbers. To be useful, financial information must not
only be relevant, it must also represent faithfully the phenomena it purports
to represent. Faithful representation means representation of the substance of
an economic phenomenon instead of representation of its legal form only. [2.12]
A faithful representation seeks to maximise the underlying
characteristics of completeness, neutrality and freedom from error. [2.13]
A neutral depiction is supported by the exercise of
prudence. Prudence is the exercise of caution when making judgements under
conditions of uncertainty. [2.16]
Applying the fundamental qualitative characteristics
Information must be both relevant and faithfully represented
if it is to be useful. [2.20]
Comparability, verifiability, timeliness and
understandability are qualitative characteristics that enhance the usefulness
of information that is relevant and faithfully represented. [2.23]
Information about a reporting entity is more useful if it
can be compared with a similar information about other entities and with
similar information about the same entity for another period or another date.
Comparability enables users to identify and understand similarities in, and
differences among, items. [2.24-2.25]
Verifiability helps to assure users that information
represents faithfully the economic phenomena it purports to represent.
Verifiability means that different knowledgeable and independent observers
could reach consensus, although not necessarily complete agreement, that a
particular depiction is a faithful representation. [2.30]
Timeliness means that information is available to
decision-makers in time to be capable of influencing their decisions. [2.33]
Classifying, characterising and presenting information
clearly and concisely makes it understandable. While some phenomena are
inherently complex and cannot be made easy to understand, to exclude such
information would make financial reports incomplete and potentially misleading.
Financial reports are prepared for users who have a reasonable knowledge of
business and economic activities and who review and analyse the information
with diligence. [2.34-2.36]
enhancing qualitative characteristics
Enhancing qualitative characteristics should be maximised to
the extent necessary. However, enhancing qualitative characteristics (either
individually or collectively) cannot render information useful if that
information is irrelevant or not represented faithfully. [2.37]
The cost constraint
on useful financial reporting
Cost is a pervasive constraint on the information that can
be provided by general purpose financial reporting. Reporting such information
imposes costs and those costs should be justified by the benefits of reporting
that information. The IASB assesses costs and benefits in relation to financial
reporting generally, and not solely in relation to individual reporting
entities. The IASB will consider whether different sizes of entities and other
factors justify different reporting requirements in certain situations. [2.39,
Chapter 3: Financial
statements and the reporting entity
Objective and scope
of financial statements
The objective of financial statements is to provide
information about an entity’s assets, liabilities, equity, income and expenses
that is useful to financial statements users in assessing the prospects for
future net cash inflows to the entity and in assessing management’s stewardship
of the entity’s resources. [3.2]
This information is provided in the statement of financial
position and the statement(s) of financial performance as well as in other
statements and notes. [3.3]
Financial statements are prepared for a specified period of
time and provide comparative information and under certain circumstances
forward-looking information. [3.4-3.6]
in financial statements and going concern assumption
Financial statements provide information about transactions
and other events viewed from the perspective of the reporting entity as a whole
and are normally prepared on the assumption that the reporting entity is a
going concern and will continue in operation for the foreseeable future.
The reporting entity
A reporting entity
is an entity that is required, or chooses, to prepare financial statements. It
can be a single entity or a portion of an entity or can comprise more than one
entity. A reporting entity is not necessarily a legal entity. [3.10]
Determining the appropriate boundary of a reporting entity
is driven by the information needs of the primary users of the reporting
entity’s financial statements. [3.13-3.14]
unconsolidated financial statements
Generally, consolidated financial statements are more likely
to provide useful information to users of financial statements than
unconsolidated financial statements. [3.18]
Chapter 4: The
Framework: the remaining text
Chapter 4 contains the remaining text of the Framework
approved in 1989. As the project to revise the Framework progresses, relevant
paragraphs in Chapter 4 will be deleted and replaced by new Chapters in the
IFRS Framework. Until it is replaced, a paragraph in Chapter 4 has the same
level of authority within IFRSs as those in Chapters 1-3.
The IFRS Framework states that the going concern assumption
is an underlying assumption. Thus, the financial statements presume that an
entity will continue in operation indefinitely or, if that presumption is not
valid, disclosure and a different basis of reporting are required. [F 4.1]
The elements of
Financial statements portray the financial effects of
transactions and other events by grouping them into broad classes according to
their economic characteristics. These broad classes are termed the elements of
The elements directly
related to financial position (balance sheet) are: [F 4.4]
The elements directly
related to performance (income statement) are: [F 4.25]
The cash flow statement reflects both income statement
elements and some changes in balance sheet elements.
Definitions of the
elements relating to financial position
An asset is a resource controlled by the entity as a result of past events and
from which future economic benefits are expected to flow to the entity. [F
A liability is a present obligation of the entity arising from past events, the
settlement of which is expected to result in an outflow from the entity of
resources embodying economic benefits. [F 4.4(b)]
Equity is the residual interest in the assets of the entity after deducting all
its liabilities. [F 4.4(c)]
Definitions of the
elements relating to performance
Income is increases in economic benefits during the accounting period in the
form of inflows or enhancements of assets or decreases of liabilities that
result in increases in equity, other than those relating to contributions from
equity participants. [F 4.25(a)]
Expenses are decreases in economic benefits during the accounting period in the
form of outflows or depletions of assets or incurrences of liabilities that
result in decreases in equity, other than those relating to distributions to
equity participants. [F 4.25(b)]
The definition of income encompasses both revenue and gains.
Revenue arises in the course of the ordinary activities of an entity and is
referred to by a variety of different names including sales, fees, interest,
dividends, royalties and rent. Gains represent other items that meet the
definition of income and may, or may not, arise in the course of the ordinary
activities of an entity. Gains represent increases in economic benefits and as
such are no different in nature from revenue. Hence, they are not regarded as
constituting a separate element in the IFRS Framework. [F 4.29 and F 4.30]
The definition of expenses encompasses losses as well as
those expenses that arise in the course of the ordinary activities of the
entity. Expenses that arise in the course of the ordinary activities of the
entity include, for example, cost of sales, wages and depreciation. They
usually take the form of an outflow or depletion of assets such as cash and
cash equivalents, inventory, property, plant and equipment. Losses represent
other items that meet the definition of expenses and may, or may not, arise in
the course of the ordinary activities of the entity. Losses represent decreases
in economic benefits and as such they are no different in nature from other expenses.
Hence, they are not regarded as a separate element in this Framework. [F 4.33
and F 4.34]
Recognition of the elements
of financial statements
Recognition is the process of incorporating in the balance
sheet or income statement an item that meets the definition of an element and
satisfies the following criteria for recognition: [F 4.37 and F 4.38]
It is probable that any future economic benefit associated
with the item will flow to or from the entity; and The item’s cost or value can
be measured with reliability.
Based on these
is recognised in the balance sheet when it is probable that the future economic
benefits will flow to the entity and the asset has a cost or value that can be
measured reliably. [F 4.44]
liability is recognised in the balance sheet when it is probable that an
outflow of resources embodying economic benefits will result from the settlement
of a present obligation and the amount at which the settlement will take place
can be measured reliably. [F 4.46]
is recognised in the income statement when an increase in future economic
benefits related to an increase in an asset or a decrease of a liability has
arisen that can be measured reliably. This means, in effect, that recognition
of income occurs simultaneously with the recognition of increases in assets or
decreases in liabilities (for example, the net increase in assets arising on a
sale of goods or services or the decrease in liabilities arising from the
waiver of a debt payable). [F 4.47]
are recognised when a decrease in future economic benefits related to a
decrease in an asset or an increase of a liability has arisen that can be
measured reliably. This means, in effect, that recognition of expenses occurs
simultaneously with the recognition of an increase in liabilities or a decrease
in assets (for example, the accrual of employee entitlements or the
depreciation of equipment). [F 4.49]
Measurement of the elements
of financial statements
Measurement involves assigning monetary amounts at which the
elements of the financial statements are to be recognised and reported. [F
The IFRS Framework acknowledges that a variety of
measurement bases are used today to different degrees and in varying
combinations in financial statements, including: [F 4.55]
Net realisable (settlement) value
Present value (discounted)
is the measurement basis most commonly used today, but it is usually combined
with other measurement bases. [F. 4.56] The IFRS Framework does not include
concepts or principles for selecting which measurement basis should be used for
particular elements of financial statements or in particular circumstances.
Individual standards and interpretations do provide this guidance, however.
(A Story of a Simple Woman Who Dream Big for God’s Greater Glory)
“This is a very long post, but as you read it, it will be going to be
“I am a child of God, and He has sent me here, has given me an earthly home
with parents kind and dear.” – The first song I have learned to sing and still
my favorite song up to now.
I was born with a disability (cleft palate and unilateral cleft lip) which
is a kind of birth defect that affects the nose, the lip, the teeth, the eyes,
the speaking voice, the hearing, the breathing, the eating and my facial
appearance. 1 out of 700 born babies have this kind of birth defect which
there’s an underdevelopment of tissues during pregnancy. Ever since the first
day I came into the world I was already in a state of difficulty. Despite of
that, God indeed blessed me with a very loving and caring family. I was the
last child of my parents which means I am the youngest among the 3 siblings and
also I am the only daughter. When I was 2 years old I undergone a surgery to
repair my unilateral cleft lip that helps a lot in terms of my breathing,
eating and to close the gap of my lip.
Okay. Fast forward. I grew up a very shy person. I started to go to school
at the age of 5 years old in the Day Care Center in our barangay. At 6 years
old I enrolled to St. Isidore School (Elementary to Secondary)
I graduated as 5thhonor in secondary that’s why I received a 25% scholarship
from the Christ the King College. Even before I received that scholarship, I
already made up my mind to study in Christ the King and also I already decided
what course or degree to take in college.
During my childhood years, I have found joy in numbers, and I just can’t
explain during that time, why. When my grandma asked me about what course I
want to take in college, I remembered, I answered this way “La, gusto
nakokanangpangbusiness, mag-ihapbitawugkwarta, ingonako classmate “Business
Management” daw nanga course.”
But, unexpectedly, during my secondary years, my eldest brother took a
“Bachelor of Science in Accountancy” course, when I first heard that course, I
asked myself what course is that? Because that’s none of the courses I have
known… But because my kuya took that course, it made a way for me to know that
course. In 2014, my eldest brother and I graduated, me in highschool and kuya
in college. We are both scholars, kuya was sponsored by my tito who is a CPA,
while me, a scholar in St. Isidore School.
1st day in college, I was so nervous because I got to meet new people and
new challenges. The “introduce yourself” thing made me even more nervous
because I need to talk to more than 60 students that time, I’m not sure if they
will understand what will I say but I have to stand and say it by heart. After
I introduced myself and shared my expectations of this course, my 1st
accounting instructor had a follow up question that made me more shy, he asked
if am I an honor student, and I answered yes sir, 5th. I don’t know why our
instructor asked me about that, I even try to avoid saying about my
achievements in school because I just want to be an ordinary student, no
expectations from others at all.
Fast forward. During the end of 1stsem in 1st year, the cutting of grades
has started. I was nervous when my classmates told me that our final grades are
out, and we will get our grades from our dean that time, as I entered into his
office, our dean smiled at me that made me wonder why. He congratulated me and
I find out that I got a 1.1 (94) grade in Accounting 1. To be honest, I really
don’t know how to express my happiness that time, all I know, is that I am so
excited to share this blessing to my parents and call my mama. My mama texted
me this line “Nak, proud kayo mi saimoha, we love youyan”, that was the first
time I receive a message from mama saying that she is so proud of me and I
really save it in my phone to serve as my inspiration/motivation to keep me
Before the 2ndsem has started, almost half our class was not able to
continue in the program, (some were advice to shift, some shift courses on
their own free will, and some stop due to financial problems).
At the end of 2ndsem and during summer classes, we received our grades in
2ndsem, I got a 2.1 (84) grade in one of my minor subject, I was afraid that
time because in order to maintain my scholarship, I need to maintain my average
atleast 90% and no grade lower than 2.0 (85) in any subject. So, I immediately
proceed to the office of my instructor on that minor subject to inquire about
my grade and hoping she will give supporting details that will correspond to
the grade I got. (Cause, I am willing to accept whatever I deserve whether high
or low grade as long as it is just.) But, unfortunately, my grade on that minor
subject has become final and irrevocable, and I need to accept it. But, as a
consequence my 25% scholarship (which was a big help) need to stop up to my 1st
year only, and we need to shoulder the whole tuition fees and miscellaneous
expenses from 2nd year up to 4th year. But, thankfully, before 2ndsem finish,
my PEF loan has been approved.
PEF (Perpetual Education Fund) is a church program to help members pursue
their dreams in education through self-reliance. It is a non-interesting
bearing loan (an exception to substance over form principle), that will
shoulder the whole tuition fees, school expenses, books and etc. for 4 years.
And all we have to do, as a PEF applicant, is to pay 250.00 every month as an
installment payment to our outstanding loan balance, and when we are prompt in
paying, our payment is subject to additional 25% discount of our monthly
payment, and if we have good grades, our loan is subject to 5% discount of our
total outstanding balance, and if we graduate in our course and got employed
subject up to 30% discount.
Heavenly Father is indeed very good all the time, when a door closes,
windows will open. He gave more than what was lost from me (from 25% to 100%).
My college life is “BAHAY-SKWELAHAN-SIMBAHAN” routine and I don’t consider it
without having freedom, instead it is the other way around. I have learned that
true freedom is not doing all the things we want, but it is doing the right things
because true freedom comes from the consequences of our decisions.
Aside from attending classes and studying lessons in college, I am attending
classes and studying lessons in Sunday School classes and Institute of Religion
wherein we are studying the scriptures, doctrines and principles of the gospel
of Jesus Christ.
I was exposed of so much challenges in terms of studies, finances, time, and
etc. in my life, but God strengthen me in my weaknesses as I draw closer to Him
each time. No matter how hard I am experiencing, I always have the passion to
help and assist someone in need, not because I am knowledgeable, but because I
just want to help as much as I can with God’s grace. To see someone’s burden
has been lighten, is already my great reward.
I also experienced being “OP(Out of Place) a couple of times already, in
school and church but not in our family, because in our family I always feel
the acceptance, the love, the care and support from them and that’s why,
everything that I have and will have will always be dedicated to them and to
I am just an ordinary woman, that’s what I think of myself. But I dream big
(heavenly treasures) for God’s greater glory.
Finally, in the year 2018, all the hardwork and dedication have all paid
off. I graduated in Bachelor of Science in Accountancy and in Institute of
Religion, I’ve started it both in the same year, and I finish it both with the
same year. Heavenly Father is so amazing, and I love it. <3
After graduation in college, I continued my advance review by reading again
the textbooks in 6 board exam subjects. Actually, I started to re-read and make
summary notes since I was still on 3rd year level, I started from FAR
(Financial Accounting and Reporting).
During last sem of our 4 years in this course, I reviewed AFAR (Advanced
Financial Accounting and Reporting). I remember, the last sem was the busiest
sem for us due to overloaded projects, researches, assignments, requirements
and activities but I never neglect in my priorities to study this particular
coverage of board exam subject.
March 22, 2018, the day after our graduation ceremony. I starqbted to open
my textbook in Auditing Theory by Cabrera (the thickest book I’ve read) During
my vacation days on March to April, I am studying this book and making summary
on my own. Though it’s hard because at the same time, I am helping in taking
care of my nephew and doing household chores but because I set and act on my
priorities, it was made possible. After Auditing Theory, it was followed by
Applied Audting by Cabrera also. It took me a month to finish studying and
making summary notes of it.
By the last week of April, I started the MAS (Management Advisory Services).
Before the formal review classes has started, I have finish to study MAS, thank
Thee to God.
Ever since, I was in college I save up money from my 1,000 monthly allowance
for my review expenses. Actually, the money we fully paid to the review center
I enrolled was from my savings.
On May 22, 2018 – I decided not to use any social media account (Facebook
and Messenger) until the release of the board exam result.
I enrolled to PRTC in Cagayan De Oro. Our review classes started on May 23,
2018, in which our first subject is Auditing Theory which was handled by our
great reviewer late sir Rommel Valdez. Before we finally start on our 1st day
review, sir Rommel Valdez prepared a music video prayer as our opening prayer,
and we are so touched. We don’t expect it, but we are so thankful for it that
gave us more burning desire to pursue our dreams with God on our side.
During review days (5 months) I’ve stayed to my titaDely’s boarding house
(wife of my father’s eldest brother). My stay there was free. I can say that I
was so comfortable to where did I stay, I have my own room, and other
necessaries were accommodated. But one thing is a disadvantage, it is quite far
from my review center. And I need to take 2 rides to go to my review center.
But that disadvantage became a advantage to me, how? because ofit’s location, I
was more motivated to wake up and prepare more early to avoid being late in any
of my review classes.
I need to walk every morning about 1 km in a very busy street to take a ride
in a tricycle going to review center, I choose to walk every morningto save 7
pesos a day. Even if on my review days, I still practice saving money.
I sleep 8pm and wake up 2am (6 hours) of sleep. The first thing I do when I
wake up is to pray, read the scriptures and drink hot dark choco to ease my sleepiness.
I never drink any coffee in my entire review even when I’m still in college
because I am keeping the law on word of wisdom (God’s law on health).
The review was really a test of patience, perseverance and commitment on
your goal. I was always eager to attend review classes (rain/shine) because I
want to learn from our reviewers and do not just depend on my own
understanding. I answered all the MSQ and check my percentage on that
particular topic and keep a track on it. I studied my mistakes and at the same
time not being complacent on those topics I already know. I keep on practicing
each day except Sunday. Sunday is my personal devotion to Heavenly Father and
Fast forward. On my first and final preboard my lowest is Taxation consistently,
that’s why on the last two weeks before the actual board exam, I focus on my
weakest part which is taxation.
Oct. 6, 2018 – the first day of board exam, the subject is FAR and AFAR, I
find AFAR so hard, which later on it was reported that is was composed of some
Oct 7, 2018 – second day, MAS and AUDITING. I find MAS hard particularly in
capital budgeting wherein workback is required to get the answer.
Oct 13, 2018 – the third and last day of board exam, TAXATION and REGULATORY
FRAMEWORK FOR BUSINESS TRANSACTIONS (RFBT). To my surprise, the taxation was
not difficult for me, I find it easy even though I’m not sure to some of my
answers but I’m confident enough to this subject (God indeed heard my prayer and
have seen my effort to cope up this subject). But, this last subject RFBT,
supposed to be the easiest subject among the 6 subjects because it is usually
all composed of theory questions, if there’s a computation, it just very
minimal. This RFBT subject was the most difficult subject I took during the
licensure examination, I felt something different as I was taking this subject.
Many of the topics I have not yet read nor familiar to me.
10 days after the exam, the result is expected to be released. There was a
delay of the result maybe because of a lot of number of examines which total to
14, 355, as I am waiting to the result in PRC website, I feel sleepy so I sleep
at 11pm, while I’m sleeping, I dream something that “I thought I pass, but
later I find out that I did not”. I suddenly woke up at 4am, and I notice
messages in my phone, I read it. The first message I read is this “Mar, si Mark
ranakapasasaatoa” and the second one is “Peronaa daw duhakacondi mar”. Do you
know what I did? I immediately go in the living room, checking the result and
still hoping I can see my name on the list of successful examinees, but I did
not see my name… I did not cry but all the difficulties I’ve been through and
all the sacrifices of all the people who supported me was all in my mind and
heart and it really breaks my heart. My family never showed to me that they get
disappointed instead they encourage me to try again. When I did not saw my name
in the list of passers, I really assume that I will have to take again all 6 subjects
(conservatism principle) but in the morning, as I verify my rating, I saw the
remarks not color red instead it’s color green and it’s “COND” which means I
just need to retake atleast 2 of the subjects given, and that is RFBT which I
got 61%, just a 4% away from the title. Because my average already passed, I
just need to get atleast 65% in RFBT in my retake, all thanks and glory to God.
November 13, 2018 I start to review again in RFBT subject, this time I will
read all the textbooks, answer all the review questions, study all the articles
of the special laws passed, enrolled again in PRTC-CDO for that particular
subject only, and execute my plan efficiently and effectively. I put into my
mind this “I need to master all the concepts and not just only those in the
syllabus, so that whatever happens, I am ready.”
My mama and I travel to CDO once a month. My review classes have 2 days
every month usually (Sunday & Monday). My mama is my constant partner,
going to CDO every month became our bonding time. She even has to absent in her
job on Monday just to be with me, to make sure of my safety.
By the way, before I started my second review, I received a church calling
in Young Women District President as a 2ndcounselor, I did not hesitate about
it and I know this is what the Lord wanted me to do, to serve His children.
Though I am so busy in my board exam preparation, I always make time to magnify
my calling. For me, leadership is not a position, it is a decision to take an
action. Like Accounting, I balance both spiritual and temporal.
After 6 months of review. The May 2019 CPALE is very much approaching.
Before I took the exam, I share my testimony in our church’s sacrament meeting
and also I fast for 24 hours (no eating and drinking). I feel that it is no longer
I, but it is God who is with me, because if I fast, me alone, I can never make
it because I have ulcer condition, but with God, nothing is impossible.
May 12, 2019 – a day before the National Election is my day of exam in RFBT
with a firm hope that it will be my last exam in CPALE. The exams on that day
is TAXATION and RFBT. With my mama, we went in the testing center at 6:30am,
though my exam is scheduled in the afternoon (1:00pm-4:00pm), I still need to
be early and attend the general instructions to fill up necessary documents
before the actual board exam starts.
My room assignment is room #22 (the last room), all examinees of that room
are conditional. To become a conditional, you have a rating of atleast 75% in
the majority subjects given, like in our case, there are 6 subjects given,
soatleast 4 of that subjects are atleast have a rating 75% and those subjects
which is below 75% need to be retaken within 2 years. And for a conditional
examinee to finally pass, he/she needs to have average of atleast 75% and with
no grade lower than 65%.
To be a CONDI it feels like a “do or die situation”, pass this subject, you
will finally pass, but if you fail this, you need to take it all again.”
May 12, 2019, 12:00 noon, 1 hour before the exam starts, I’m already in the
room I was assigned waiting for the exam will start. By the way, I never bring
any review materials/handouts during board exam to avoid cramming and just
simply focus on meditating. I already have time to prepare before exams and
that’s enough, during actual board exam, is no more time for me to review to
avoid also consuming brain cells that should be consumed in answering the
When the RFBT exam starts, I started it with a prayer in my heart (closing
my eyes). This is the first thing I do in every exam I will take, to pray, not
leaning on my own capability and understanding only. The exam is composed of
100 items, 98 theories and only 2 computational. By the way, I have a basic
calculator with me to comply with what kind of calculator allowed in exam. I
find the exam, really hard, imagine, at my first attempt in answering the 100
items, I got 54 sure answers, and I am so nervous because I need to get 65
correct answers to pass. I am still lacking 11 items, I prayed to God that He
will help to fill in what is lacking. I try to review the 100 items backward
(#100-#1). And this time, I was more enlightened, from 54 sure answers to 78
sure answers, wow! God is so great. He even fill more than what I need. I
maximize all the given time. I review for the 2nd time all my answers before I
transfer it to the answer sheet. I slowly shade the letter of my answer to make
sure it’s accuracy (slowly but surely). By the way, we are only 4 conditional
examinees in our room in RFBT, and while I’m still transferring slowly my
answers in the answer sheet, my co-examinees one by one they pass. I was not
disturbed; I simply continue focus, knowing I still have enough time until I am
only one remaining. When I was done, I close it with a prayer and at exactly
4pm, I pass.
May 22, 2019 10pm. I read a shared post in my newsfeed stating this way “Sa
loobnglimangaraw,maybiyayangparatingsabuhay mo. Magtiwalakalang, in Jesus name.
Amen” and fortunately, May 27 is the expected date of the release of result
which is 5 days from this day.
May 27, 2019 – finally, the time has come, the most awaited part of every
May 2019 CPALE examinees. I decided to turn off my phone, so that if there will
a result already, me and my family will be the first to see my name in the
passer’s list (really hoping, thatI will make it this time in God’s appointed
At 10pm, the PRC release the result, I was shaking as I scrolling down going
to letter “U”, my mama and my kuya stood beside that time, and finally! We saw
my name in the list. We hug each other of so much happiness. I was teary-eyed
that time, we kneel down and pray as a family, giving all thanks to Heavenly
Father, to His son, Jesus Christ and to the Holy Ghost.
Finally! The time has come, all the sacrifices have paid off and all worth
the wait. It took me 5 years to finally attain this, (4 years in college, 6
months in formal review for 6 subjects and 6 months for 1 subject to retake).
My choices in the past made who I am today, and the choices I will make
starting from the present will determine who I will become in the future.
When I was still a child, I am asking God, why He let me born this way, but
now, I already know the reason and have seen the purpose. Because of my
condition, I can be able to inspire and touch more lives and He uses my life to
give light to all people who face difficulties in life whether physically,
financially, spiritually, socially, and emotionally.
One of my favourite actor said, “It’s not how much you have, it’s what you
do on what you have.” I was born with a disability but it did not disabled me
to fulfil my responsibilities but indeed it is not a disability but just
differently able J.
So, if I made it, you can too make it!
Heavenly Father, has given every one of us agency, and it is our
responsibility to use that agency wisely and righteously to obtain true
happiness that will not last only in this life but also in the life to come.
I testify, that Heavenly Father and Jesus Christ lives, and They love us so
much. Heavenly Father is indeed faithful to His words, if we love Him, we will
keep His commandments, and if we keep His commandments, we shall prosper in the
land. Everything has a reason and a season. I am only God’s instrument to His
children to serve as a light to mankind. All glory and praise belongs only to
Him. This is the story of a simple woman who dream big for God’s greater glory.
In this, I humbly share in the sacred name of Jesus Christ. Amen.
Hiling ko sana, sa lahat na nakabasa nito, if you happen to meet someone who
has a disability like me, wag kaawaaan at husgahan agad, kilalananin niyo po
Oct 2017 FAILED
May 2018 CONDITIONAL
October 2018 PASSED
Since I was elem till college, I never really thought failure being part of
my vocabulary just until I failed the board exam (October 2017). I thought God
was making me just get the taste of it once so I did tried again. But no, I
ddnt made it just yet. But what kept me pushing really was not my competitive spirit
anymore but my faith in God’s perfect timing.
In life God will take almost everything that we have so that when we finally
reach the peak it wasnt because of us anymore, but Him.
“But do not forget this one thing, dear friends: With the Lord a day is
like a thousand years, and a thousand years are like a day. 9 The Lord is not
slow in keeping his promise, as some understand slowness. Instead he is patient
with you, not wanting anyone to perish, but everyone to come to
-2 Peter 3:8-9
My first attempt in the CPA board exams was last October 2017. I reviewed in
ReSA for that batch. Because I graduated Cum Laude in college, nagkaroon ako ng
thinking na “Alam ko na yan. Kaya ko ipasa ang CPA board exams without
attending review classes”. And so, after getting 80% above average in our
first preboard exams that time, mas lalong tumaas ang confidence ko na kaya ko
ngang makapasa sa CPA board exams on my own. After the first preboards hindi na
ako masyadong umattend sa review classes ko. Ang katwiran ko kasi, “alam
ko na yan lahat. Pwede ko naman aralin lahat yan sa boarding house”.
Lumipas ang mga oras hanggang sa narealize ko na papalapit na yung mismong araw
ng actual October 2017 CPA board exams. One week before the actual exams,
nagsimula na ako sa cramming stage ko. I realized a mistake in life. Sinayang
ko ang oras. Yung oras na sana ay iaaral ko naman talaga dapat ay tinulog ko
pala. Nagdaan ang actual October 2017 CPALE. If I am not mistaken, it was on
November 2, 2017 ng lumabas yung results, 10 PM. Wala ang pangalan ko sa list
of passers. Siyempre umiyak ako. I put the blame on God dahil sa pagbagsak ko.
Pero pinagsisihan ko din. Why? God made me realize that time of how complacent
I was during the review period. Naging mayabang ako. Nagtanim ako ng pride sa
puso ko. That time napatunayan ko na totoo ang sinabi sakin ng cell leader ko
sa church namin dati. Read James 4:6. “God opposes the proud, but gives
grace to the humble”. After my moment with God nung gabing umiyak ako
dahil sa unfavorable results, nagpasalamat pa din ako. HUMILITY. Yan ang gusto
saking ituro ni God that time. Gusto ni Lord sa kanya yung Glory, hindi sakin.
Gusto ni Lord siya yung tinataas, hindi ang sarili ko.
Fast Forward. Hindi ako kaagad nakapag-verify ng ratings ko sa PRC, so I
decided na magpunta ng Manila to know the truth. I got 74 as my average pala sa
October 2017 CPALE. That time napaisip ako. Kung nagamit ko lang ng tama ang
oras ko noong nasa Manila ako edi sana nakapasa na pala ako. Medyo mayabang
ulit ako that time. Hindi muna ako nagreview ulit. I decided to work muna kasi
medyo depressed ako that time. Kailangan ko i-divert ang attention ko sa ibang
bagay para gumaling yung sugat na dala ng pagbagsak ko. And so I applied and
was hired sa SM Rosario. I worked there as an Accounting Assistant. CPA ang
manager ko. I learned many lessons in life noong nasa SM ako nagwowork. Lessons
about time. Lessons na hindi ko agad natutunan nung time na nagrereview ako.
Then, nainspire ako sa success story ng manager ko sa SM. She earned her CPA
title after failing once. I was also inspired by my officemates there. Mababait
silang lahat. Sa kanila ko natutunan ang value ng patience. Hindi pala ako fast
learner. Mali pala ang pagkakakilala ko sa sarili ko. That’s why I failed in
the October 2017 CPALE.
Fast Forward. Hindi ko namalayan ang pagbilis ng oras. May 2018 na pala. The
May 2018 CPALE results was released. Gabi yun nilabas ng PRC that time. I
arrived home from work. CPA na pala yung apat kong classmates na kasabayan ko
bumagsak noong October 2017 CPALE. That time I cried again to God. Naging bitter
ako ulit. Not because CPA na yung apat kong classmates. But because I made a
wrong decision pala. Dapat hindi muna pala ako nagwork. Dapat tinuloy ko ang
laban ko. Edi sana pala CPA na ako that time. After that night ay gulong gulo
ang isip ko. I prayed to God. He gave me a sign. And so I decided to resign.
Sorry po Mam Kat and sa officemates ko sa SM Rosario.
I enrolled in CPAR. Batch 84 na that time. Wala akong pakialam kahit late na
ko nag-enroll sa review classes ko. Naaalala ko kasi yung kasabihan na
“kapag gusto maraming paraan”. Dahil nga desperado ako maging CPA
kahit sa sa dulo na lang ng classroom yung available na slots, I still
enrolled. Room 4 Weekends yun. Natatandaan ko pa. This time sure na ako sa
gusto kong mangyari sa buhay ko. Thanks to God. Inuntog niya ako. Alam ko sa
sarili ko na magiging CPA ako. It was written in the stars. And so pinagpatuloy
ko yung laban na sinimulan ko last October 2017. Mas sinipagan ko pa ang
pag-aaral. Tiniis ko lahat ng hirap sa Manila. Ang hirap pala ng buhay sa
Manila. Mahirap ang byahe. Waking up at 4 AM para lang makarating ako sa Manila
ng 8 AM kasi 8 AM start ng classes namin. Pero naisip ko kasi mas mahirap kapag
hindi CPA. Kahit nahihirapan ako that time tinuloy ko ang laban ko. Lumalaban
ako this time para sa pamilya ko. Lumipas ang mga araw. Unfortunately, hindi ko
natapos aralin lahat ng handouts namin. I took the board exam last October 2018
without reading the handouts na related sa new topics sa RFBT. Also, hindi ko
natapos yung Taxation. Making the story short, results day na naman and my name
again was not included on the list.
Siyempre umiyak na naman ako. Kasi mas nasaktan ako this time dahil mas
nag-effort na ako. Mas masakit pa kasi alam ko ang nararamdaman ng mga taong
nasa tabi ko. Nagkaroon ako ng thinking na bakit ganoon? Am I a failure God?
Then I prayed to God. I realized a mistake again.
Read Proverbs 3:5-6. “Trust in the Lord with all your heart and lean not
on your own understanding. In all your ways submit to him, and He will make
your paths straight”. May value na naman pala na gustong ituro si God
sakin. Learn to listen. Mali pala yung attitude na “all knowing”.
Matutong makinig. Hindi palaging ako ang tama. I realized a lot mistakes na
nagawa ko sa 2nd review period ko. Hindi ako nakinig sa parents ko. Puro
decision ko ang laging nasusunod. I was a little selfish pala.
Lumipas ang mga araw after ng October 2018 CPALE results. Siyempre I decided
to draft my resume na. Gustuhin ko mang magreview ulit pero wala na kaming
pera. Unti unti na namang nagthrowback lahat ng maling nagawa ko. I regret
doing such things in the past. Yung pagiging complacent ko, yung pagiging hindi
matalino sa pagmanage ng oras. All of that thoughts running inside my head.
Kinausap ako ni Mama. Meron pala akong Tita sa side ni papa na willing
magsponsor ng tuition ko sa review. This time medyo lumiwanag ang unti unti
kong nagdidilim na mundo. I said to myself, hindi pa tapos ang laban. Isa pa!
One more round pa. Aja!!!! HUA!!!!
Pumunta ako ulit sa Manila para sana magenroll. This time ay refresher na
ako. I don’t care. Nasugatan na ako. Hindi ako papayag na masusugatan ako pero
at the end ay wala naman akong mapapala. The battle must continue. Kaya nga
Dave ang pinangalan sakin ng parents ko eh. It came from the biblical
character, David. That time, the CPA board exams ang goliath sa buhay ko. So
what if I failed twice? Nilagay ko ang sarili ko as the main character sa isang
pelikula. Ang mga bida sa una lang binubugbog. Sa una lang pinahihirapan. Pero
sa bandang huli nasa bida na ang huling halakhak. I prayed to God. This time
iba na prayer ko. I am claiming this time na CPA na ako sa May 2019. Kahit wala
pa sakin yung title na CPA pero nagpapasamalat na ko kasi nagclaim na nga ako.
Unfortunately, wala ng slots sa CPAR that time. Pero hindi ako nawalan ng
pag-asa. Naalala ko ulit ang sinasabi ng parents at cell leader ko. Kung gusto,
maraming paraan. And I learned na may vacant slots pa sa PRTC-Dasmariñas Cavite
Branch. Syempre dahil kulang ang pera namin that time, humingi ako ng 50%
discount dahil Cum Laude naman ako. Buti na lang napagbigyan ako. This time mas
lalong luminaw sa mga mata ko na para sakin talaga ang CPA title. Imagine?
Kahit mahirap may nagbigay sakin ng ganon opportunity para magreview ulit.
Hindi ko sinayang ang pagkakataon. Late enrollee ako ulit pero pinilit kong
makahabol sa lessons. Thanks to PRTC reviewers kasi hindi naging mahirap sakin
ang pag-catch-up sa mga lessons. Yung mga lessons na para sa akin ay mahirap
dati (for example, Forex) ay unti unting dumali dahil magagaling ang reviewers
namin. Thanks also to God. Hinayaan niyang maintindihan ko ang mga lessons.
Also, this time ay gumawa ako ng schedule sa cellphone ko. Binigyan ako ng
magandang cellphone ni Lord. So why not use it para maging productive? I made a
schedule of one subject per day. This time mas lalong tumindi yung eagerness ko
na magaral. And so I decided to deactivate my social media accounts. Sabi ko sa
sarili ko this is the final battle. After nito ayoko na ulit. There are things
na kailangang bitawan at ilet-go.
Dumaan ang mga araw. Dahil mas mahaba ang review period kapag May ang exams,
I was able to finish our handouts sa Business Law, Taxation, and Advanced
Accounting. Hindi ko natapos yung ibang subjects kasi pinagsabay ko din ang gym
at review. This time hindi lang utak ang ihahanda ko. Kailangan handa din ang
katawan ko sa actual May 2019 CPALE. Mas confident na din ako this time kasi
nakuha ko maging Top 2 at Top 4 sa first and final preboards namin.
Fast forward ulit. Dumaan ang Preweek. Thanks to Mommy Gerlie sa pagsponsor.
Hahaha. Kasi short din budget namin that time. Ayoko makadagdag sa expenses ni
mama dito sa bahay. The first week of the exams passed. Kagaya ng marami ay
nahirapan din ako sa Taxation. Puro DST kasi yung tinanong na hindi ko naman
talaga masyadong inaral. Tapos mantakin mo na masama din pakiramdam ko nung
exam na yun. Hindi kasi ako nakatulog masyado the night before the exams.
Lumipas si Taxation at eto na si RFBT. Okay naman. Natapos ko naman lahat ng
questions by 3 PM. 1 PM kasi start nun. Thanks to Atty Yolly Bacay kasi
maniwala ka sa hindi naririnig ko ang boses niya habang nagsasagot ako.
One week na ulit na preweek for the last 4 subjects na natitira. But
unfortunately, sumama ang pakiramdam ko. I was not able to go to Manila dahil
sa allergy ko. So I decided na yung materials sa CPAR batch 84 ang aralin ko.
Buti na lang organized ako sa gamit from the start. It was one thing na
natutunan ko because of my failures. Dapat organized.
Actual CPALE na ulit. Unang subject, MAS. Medyo okay pa kasi mahilig ako
magsagot ng MCQs namin during my review period in PRTC. Pero yung sunod na
subject ang hindi na okay. That was Auditing. Nakakagigil. Okay naman sa
Auditing Theory. Pero bakit ganon sa Auditing Problems? Bawat problems na
sinasagutan ko ay sinamahan ko na talaga ng dasal. Then Financial Accounting is
next. Okay naman. Nakasundo ko naman. And the last is Advanced Financial
Accounting. Nakasundo ko din kasi yung exact problems na inaral ko ang lumabas
sa actual CPALE.
One week passed at ayun, last May 27 ay results day. Nanginginig ako nang
nagising kaya I decided na magpunta sa gym to relax. Dumating ang gabi. I made
sure na nakakain na ko ng dinner para kapag lumabas ang results, iiyak na lang
I waited until around 10 PM. Then a reviewer from ReSA posted something.
16.43% lang ang passing rate with the Top 1 coming also from ReSA. Syempre wala
akong naramdaman that time. Ewan ko ba. Namanhid yata ako bigla. Sa isip isip
ko, kung sa 30% passing rate last October 2017, at sa 25% passing rate last
October 2018 ay hindi ako kasama, how much more with the 16.43% which was now
the lowest passing rate in the CPALE history in the Philippines for the past 10
years? I decided not to search on my name sa list of passers na tutal para
sakin, it’s impossible na makita ko yung name ko doon. Nagsorry na din ako sa
mama ko kasi hindi ko na siya mabibigyan ng anak na CPA. Ayoko umiyak. I
decided na ipikit na lang ang mata ko at hantaying matulog ang aking diwa. But
what surprising is nung ipinikit ko na ang mga mata ko, unti unti namang
bumilis ang tibok ng puso ko. I don’t know why. Bihira dumadating ang point sa
buhay ko na bumibilis ang tibok ng puso ko. There must be something na hindi ko
pa nagagawa today. May kailangan pa kong gawin bago ako matulog. Then
nagvibrate ang cellphone ko. Out of curiousity, I opened the chat of one of my
classmates nung undergrad. Siyempre hindi pa malinaw sakin ang lahat pero
nakalagay doon “Congrats”. Then another friend of mine sent also a
chat that night. Dito medyo palagay na ako kasi bumibilis tibok ng puso ko
lalo. “Congrats, Dave. CPA ka na”. Ayoko magassume kasi baka masaktan
na naman ako. That’s why I requested a screenshot of the results. Nagsend siya
ng screenshot kaso malabo. Hahahaha. Then I decided na kami na lang ni Mama ang
tumingin sa results.
Finally, this time, may name was included in the list of passers na ❤
Another lesson from God, for the last time. Believe and Trust.
Sorry po kung medyo mahaba. I hope my CPA journey will inspire many CPA
candidates. Wag po tayong matakot lumaban. Mangarap ka, hindi dahil libre.
Mangarap ka dahil meron tayong Diyos na faithful at marunong tumupad sa kanyang
mga pangako. For it is God who planted the dreams inside our hearts. Siya din
ang tutupad nito. In his perfect time ❤
Lawrence Dave Bernal Maglaya Certified Public Accountant by God’s grace May 2019