Becoming a conditional passer in the CPA Licensure Examination (CPALE) puts you in a unique position. You have demonstrated competence in the majority of accounting subjects, earning credits that remain valid for two years. Now, your entire CPA licensure hinges on one or two subjects. This guide provides the tactical strategies you need to convert your conditional status into a full CPA license.
Understanding Conditional Passer Status
Under Republic Act No. 9298 (Philippine Accountancy Act of 2004) and its Implementing Rules and Regulations, a conditional passer is someone who meets specific criteria:
Key Point: You must have passed a majority of subjects (at least 4 of 6) to qualify. If you failed 3 or more subjects, you must retake all six subjects as a full retaker.
The 2-Year Window Explained
Per Section 16 of RA 9298, your conditional credits are valid for exactly two years from your original examination date.
If you miss the deadline: You lose ALL credits for subjects you passed and must retake all six subjects from scratch.
What Happens If You Fail Removal Twice
Your original exam plus a failed removal exam together count as one complete examination failure under PRC rules. If you then fail a complete retake (all 6 subjects), that is your second complete failure, requiring 24 units of refresher courses from a BOA-accredited institution before your next attempt.
Optimal Timing for Your Removal Exam
Should you take the immediate next exam or wait?
Option 1: Immediate Next Cycle (Recommended)
Taking the removal exam 5-6 months after your original attempt is optimal for most conditional passers.
Best for examinees who:
- Scored 70-74% in failed subject(s)
- Have clear understanding of why they failed
- Can dedicate 2-3 hours daily to study
- Failed due to exam-day factors rather than knowledge gaps
Advantages: Material is fresh, maximum safety net for additional attempts, faster emotional closure.
Option 2: Skip One Cycle (6-12 Month Gap)
Best for examinees who:
- Need to work full-time and cannot study adequately in 5 months
- Are experiencing severe burnout or mental health challenges
- Have significant content gaps requiring fundamental relearning
Timing Comparison
Our recommendation: Unless you have compelling reasons to wait, take the immediate next exam.
Study Hour Recommendations
For One Failed Subject
Total: 250-350 hours over 4 months
For Two Failed Subjects
Total: 400-500 hours over 4-5 months
Critical Strategy: Do not study both subjects in the same day for the first 8 weeks. Alternate days to allow proper encoding.
Subject-Specific Removal Strategies
Financial Accounting and Reporting (FAR)
Why conditional passers fail: Volume of PFRS/PAS standards, complex business combinations, journal entry mechanics under pressure.
Strategy: Prioritize the Conceptual Framework. Master high-yield standards (PFRS 15, 16; PAS 2, 16, 36). Practice 20-30 journal entries daily.
Study Hours: 80-100 hours
Advanced Financial Accounting and Reporting (AFAR)
Why conditional passers fail: Business combinations complexity, government accounting unfamiliarity.
Strategy: Isolate each topic (partnerships, branches, government, construction). Government accounting (PPSAS) is high-yield. Master partnership liquidation procedures.
Study Hours: 75-90 hours
Management Advisory Services (MAS)
Why conditional passers fail: Formula memorization without application understanding, time pressure.
Strategy: Create and drill formula sheets daily. Focus on CVP analysis, budgeting, variance analysis, capital budgeting. Practice under strict time limits (1.5 min/question).
Study Hours: 70-85 hours
Auditing
Why conditional passers fail: PSA standards precision, report modification scenarios.
Strategy: Master the audit process flow. Report modifications are heavily tested. Practice matching assertions to audit procedures.
Study Hours: 70-85 hours
Taxation
Why conditional passers fail: Tax law changes (TRAIN, CREATE, CREATE MORE), computational time pressure.
Strategy: Use 2026-updated materials. Master income taxation first. Transfer taxes (estate, donor's) are commonly tested.
Study Hours: 75-90 hours
Regulatory Framework for Business Transactions (RFBT)
Why conditional passers fail: Broadest coverage (100 questions), memorization load, time management.
Strategy: Prioritize Obligations and Contracts, Revised Corporation Code, Negotiable Instruments Law. Use mnemonics. Practice completing 100 questions in allotted time (1.8 min/question).
Study Hours: 85-100 hours
Common Mistakes Conditional Passers Make
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Overconfidence - Assuming the removal exam will be easy since you "almost passed." You failed this subject for a reason.
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Using the same study method - If your previous approach produced a failing grade, change something: materials, schedule, or techniques.
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Neglecting mock exams - Complete at least 6-8 full subject mock exams under timed conditions.
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Waiting too long - Delaying reduces your safety net and allows knowledge to decay.
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Ignoring exam day factors - If anxiety or poor sleep contributed to failure, address these directly.
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Not seeking help - Consider tutoring, study groups, or additional resources.
Mental Approach for Removal Exams
The psychological dimension of removal exams differs significantly from first attempts. Understanding these differences helps you prepare mentally.
Unique Pressures on Conditional Passers
- The weight of "almost" - You were so close to passing, which can create either motivation or frustration
- Time pressure - The 2-year window creates deadline anxiety
- Social comparison - Batchmates who passed are moving on while you retake
- Financial pressure - Additional exam fees, review materials, and delayed professional income
Reframing Your Situation
Unhelpful mindset: "I failed and now I have to fix my mistake."
Helpful mindset: "I demonstrated competence in most subjects. Now I get to focus all my energy on mastering one or two areas."
Conditional status is not a punishment; it is recognition that you deserve a focused opportunity to complete your licensure. The system is designed to reward examinees who show overall competence while allowing them to strengthen specific weak areas.
Building Confidence
- Track your progress with practice question score logs showing improvement over time
- Celebrate when you master previously difficult topics
- Visualize success - imagine receiving your passing notice and proceeding to oath-taking
- Connect with other conditional passers for shared support and accountability
Success Rates for Conditional Passers
While PRC does not publish separate passing rates for conditional examinees, available data suggests:
Conditional passers who prepare seriously have better-than-average odds. The focused preparation on 1-2 subjects, combined with exam experience, provides genuine advantages. However, odds decline with each attempt, reinforcing the importance of treating your first removal attempt seriously.
16-Week Study Plan Framework
Weeks 1-2 (Diagnostic): Complete diagnostic exam, analyze results by topic, create prioritized weak topic list, gather updated materials.
Weeks 3-8 (Foundation): Focus on weak topics, complete 50-75 practice questions daily, review incorrect answers thoroughly, take mock exam at week 6.
Weeks 9-14 (Intensive): Shift to 75-100 questions daily, weekly timed mock exams, focus on application-level questions.
Weeks 15-16 (Final): Light review, focus on high-yield areas, logistics preparation, sleep hygiene and stress management.
Conclusion: Your CPA License is Within Reach
As a conditional passer, you are closer to your CPA license than most CPALE takers ever get on their first attempt. You have proven competence in four or five out of six subjects. What remains is focused, strategic preparation for one or two subjects.
The common thread among successful conditional passers: they took their removal exam seriously, prepared strategically, and did not repeat the mistakes that led to their initial failure.
Your conditional status is not a setback. It is a focused opportunity. Use it wisely.
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Sources
- Republic Act No. 9298 (Philippine Accountancy Act of 2004)
- RA 9298 Implementing Rules and Regulations
- BOA Resolution No. 30, Series of 2022 - Table of Specifications
- PRC Licensure Examination Requirements
- PRC 2026 Schedule of Examination
- PICPA Philippine Accountancy Act Resources
Last updated: February 2026. Content verified against RA 9298 and current PRC regulations.