Failing one or two subjects in the CPA Board Exam (CPALE) is not the end of your accounting career. In fact, the Philippine Accountancy Act provides a pathway for examinees who perform well in most subjects but fall short in one or two. This guide explains everything you need to know about becoming a conditional examinee, the removal exam process, and how to successfully complete your CPA licensure.
Understanding the CPA Board Exam Passing Requirements
Before diving into conditional status, let's establish the baseline passing requirements under Republic Act No. 9298 (Philippine Accountancy Act of 2004).
The Two-Pronged Passing Criteria
According to Section 16 of RA 9298, to pass the CPA Licensure Examination, a candidate must:
- General Average Requirement: Obtain a general average of at least 75% across all six subjects
- Minimum Subject Requirement: Have no grade lower than 65% in any individual subject
Both conditions must be met simultaneously. This means even if your general average is 80%, you will not pass if you scored 64% in any single subject.
The Six CPALE Subjects
Per BOA Resolution No. 30, Series of 2022, the CPA Board Exam covers:
Most subjects have 70 multiple-choice questions, except RFBT which has 100 MCQs, totaling 450 questions over three days.
What is a Conditional Examinee?
A conditional examinee (also called "conditional passer") is a CPA board exam taker who did not fully pass the examination but demonstrated sufficient competence in most subjects to receive conditional credit.
Official Criteria for Conditional Status
You become a conditional examinee if you meet either of these scenarios:
Scenario 1: You obtained a general average of 75% or above, with ratings of 75% or above in at least four (4) subjects, but scored below 75% (though not below 65%) in one or two subjects.
Scenario 2: You obtained a general average below 75%, but achieved ratings of 75% or above in at least four (4) subjects.
Key Point: Majority Rule
The law states that a candidate receives conditional credit if they pass "at least a majority of subjects." Since the CPALE has six subjects, you must pass at least four subjects with 75% or higher to qualify for conditional status.
This means a conditional examinee can fail a maximum of two (2) subjects.
Real-World Scenarios: Am I a Conditional Examinee?
Let's look at common scenarios to help you understand whether you qualify:
Scenario A: Conditional Examinee (Qualifies)
Result: Conditional examinee. Passed 5 subjects with 75%+. Must retake Taxation within 2 years.
Scenario B: Conditional Examinee (Qualifies)
Result: Conditional examinee. Passed 4 subjects with 75%+. Must retake Taxation and RFBT within 2 years.
Scenario C: Full Passer
Result: Full passer! Met both criteria: 75%+ average and 75%+ in all subjects.
Scenario D: Failed (Does NOT Qualify for Conditional)
Result: Failed. Only passed 3 subjects (not a majority). Must retake all 6 subjects.
Scenario E: Failed Due to Minimum Grade Violation
Result: This is a complex case. Even though 5 subjects are passed and the average is above 75%, the 62% score in RFBT is below the 65% minimum threshold. The candidate would likely be considered a conditional examinee (having passed 5 subjects with 75%+), but the extremely low grade raises questions. Consult PRC directly for such edge cases.
The Removal Exam: Your Path to Full CPA Licensure
What is a Removal Exam?
The removal exam (also called "conditioned examination") is the board examination taken by conditional examinees to complete their CPA licensure. You only need to take the subject(s) you failed.
The Critical 2-Year Window
Under RA 9298, conditional examinees must complete their removal exam within two (2) years from the date of their original examination.
Example Timeline:
- Original exam date: May 2026
- Deadline for removal exam: May 2028 (any CPALE within this period)
What Happens If You Miss the 2-Year Deadline?
If you fail to take and pass your removal subjects within two years, you are considered to have failed the entire examination. This means:
- You lose credit for all subjects you previously passed
- You must retake all six subjects from scratch
- This counts as one complete examination failure
Removal Exam Passing Requirements
To successfully complete your removal exam, you must:
- Obtain at least 75% in each subject you are retaking
- Maintain a general average of 75% or above (if retaking multiple subjects)
- Score at least 65% in each subject (no score below this threshold)
How Examinations Are Counted
Understanding how the PRC counts examinations is crucial for planning your CPA journey.
The "One Complete Examination" Rule
According to RA 9298, the examination in which you became conditioned, together with the removal examination(s), counts as one complete examination.
Example:
- May 2026: You become a conditional examinee (failed Taxation)
- October 2026: You take the removal exam for Taxation and pass
- This entire sequence counts as ONE complete examination
The Two-Failure Rule
Any candidate who fails in two (2) complete CPA Board Examinations becomes disqualified from taking another examination unless they complete additional requirements.
Required: Enroll in and complete at least 24 units of subjects covered in the licensure examination from a CHED-recognized institution with BOA accreditation for refresher courses.
Maximum Examination Attempts (Practical Example)
Here's how the counting works in practice:
- First attempt: Conditional examinee (failed 1 subject)
- Removal exam: Failed the removal = First complete failure
- Second attempt: Fresh exam (all 6 subjects) - Conditional examinee again
- Removal exam: Failed again = Second complete failure
- Refresher course required (24 units) before next attempt
Requirements for Taking the Removal Exam
Documents Needed
When applying for your removal exam, prepare:
- Valid ID - Government-issued identification
- Previous Examination Documents - Certificate of conditional status
- PRC Application Forms - Completed LERIS application
- Payment - Examination fees
Registration Process
- Log in to the PRC Licensure Examination and Registration Information System (LERIS)
- Select the appropriate CPALE schedule (May or October)
- Indicate your conditional examinee status
- Specify the subject(s) for removal
- Upload required documents
- Pay the examination fee
- Submit within the deadline (applications typically open 3-4 months before the exam)
Refresher Course TOR (When Required)
If you have failed two complete examinations, you must submit:
- Transcript of Records (TOR) for the 24-unit refresher course
- The TOR must be from a school accredited by BOA to offer refresher courses
- The refresher certificate is valid for 2 years from date of issue
Strategies for Passing Your Removal Exam
Having failed a subject once, you need a different approach for your second attempt. Here are proven strategies:
1. Diagnose What Went Wrong
Before diving back into studying, honestly assess why you failed:
- Did you run out of time during the exam?
- Were there specific topics you consistently struggled with?
- Was your study method ineffective?
- Did test anxiety affect your performance?
2. Focus on Understanding, Not Memorizing
The CPALE tests application of concepts, not mere recall. Per BOA Resolution No. 30, difficulty levels are:
- Easy (Remembering): 30%
- Moderate (Understanding): 40%
- Difficult (Applying): 30%
This means 70% of questions require understanding or application. Memorizing formulas without understanding when to use them will not work.
3. Master Your Weak Topics First
Review your performance and identify the specific topics where you lost the most points. Dedicate extra time to these areas while maintaining your strengths.
4. Practice Under Exam Conditions
- Time yourself strictly (approximately 2.5 hours for 70 questions, or 1.8 min/question for RFBT's 100 questions)
- Practice in a quiet environment mimicking test center conditions
- Complete full mock exams, not just topic quizzes
- Review every wrong answer to understand your mistakes
5. Use Multiple Study Resources
Don't rely on a single reviewer. Combine:
- Textbooks for foundational understanding
- Review materials for exam-focused content
- Practice questions for application
- AI tutors (like CPA Review PH) for personalized explanations
6. Join a Study Group
Connect with other conditional examinees. Explaining concepts to others reinforces your understanding, and group study provides accountability and moral support.
7. Take Care of Your Physical and Mental Health
- Get 7-8 hours of sleep, especially the week before the exam
- Exercise regularly to manage stress
- Eat nutritious meals to maintain energy
- Take breaks to prevent burnout
8. Don't Wait Until the Last Moment
You have two years, but don't procrastinate. Consider taking the next available exam (typically 5-6 months away) while the material is still fresh. This gives you another attempt if needed.
Frequently Asked Questions
Can I take the removal exam in the next board exam cycle?
Yes. If you become a conditional examinee in May 2026, you can take your removal exam as early as October 2026. Most conditional examinees aim for the immediate next exam cycle.
Do I need to study subjects I already passed?
No. You only take the removal exam for the subject(s) you failed. Your passing grades in other subjects are credited and preserved (within the 2-year window).
What if I fail my removal exam?
If you fail the removal exam, the combination of your original exam plus the removal exam counts as one complete failure. You can then take a fresh examination (all 6 subjects) for your second attempt.
Can I become a conditional examinee twice in a row?
Technically yes. If you fail all six subjects, then become conditional on your second attempt, you can still take removal exams. However, if you fail the removal, that counts as your second failure, triggering the 24-unit refresher requirement.
Is there a limit to how many times I can take the CPA Board Exam?
There is no lifetime limit, but after every two failures, you must complete the 24-unit refresher course requirement before continuing.
What happens if I pass my removal exam?
Congratulations! Once you pass your removal exam and meet all requirements, you will be included in the official list of passers and can proceed with oath-taking and registration to become a licensed CPA.
Are removal exams harder than regular exams?
No. Removal exams use the same question bank, difficulty level, and Table of Specifications as regular exams. The content is identical.
Can I review my exam scores in detail?
PRC provides your percentage score per subject. Detailed item-by-item results are not released due to exam security.
Upcoming CPA Board Exam Schedules
Plan your removal exam using these dates:
2026 CPALE Schedule
- May 2026: May 24, 25, and 26, 2026
- October 2026: October 24, 25, and 26, 2026
Filing deadlines are typically 2-3 months before the exam date. Check the official PRC website for exact deadlines.
The Bottom Line: Conditional Status is a Second Chance
Becoming a conditional examinee is not a failure. It's recognition that you have demonstrated competence in most areas of accountancy and deserve an opportunity to complete your licensure. Many successful CPAs today were once conditional examinees.
The key is to act strategically:
- Understand exactly why you didn't pass
- Create a focused study plan for your weak subject(s)
- Take your removal exam at the earliest opportunity
- Don't let the 2-year window close without action
Remember: The CPA Board Exam is designed to be challenging. The 30-40% national passing rate means the majority of takers do not pass on their first attempt. What separates successful CPAs from others is persistence and continuous improvement.
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Sources
- Republic Act No. 9298 (Philippine Accountancy Act of 2004) - LawPhil
- RA 9298 Implementing Rules and Regulations - PRC
- BOA Resolution No. 30 Series of 2022 - Table of Specifications - PRC
- PRC List of Requirements for Licensure Examinations
- 2026 Schedule of Examination - PRC
- Philippine Accountancy Act - PICPA
- CPA Board Exam Guide - 1taker
Last updated: January 2026. Content verified against RA 9298 and current PRC regulations.