CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter discusses the theoretical foundations, conceptual underpinnings, and related
empirical studies relevant to the research entitled “Readiness in Perspective: Evaluating the
Perceived Level of Readiness among Fourth-Year Accountancy Students of DMCCFI for the
CPA Licensure Examination (CPALE).” It presents various theories and literature that
explain the cognitive, emotional, and institutional factors influencing students’ perceived
readiness for the CPALE. The review also includes findings from both local and international
studies that examine readiness, motivation, and performance in licensure examinations.

Bandura’s (1977, 1997) Self-Efficacy Theory provides one of the primary foundations of this
study. It emphasizes that individuals’ beliefs in their capacity to perform a task significantly
influence their motivation, perseverance, and performance. In the context of CPALE
preparation, self-efficacy serves as a determining factor in how students perceive their
competence and readiness to pass the examination. Students with strong self-efficacy are
more likely to employ effective learning strategies, maintain focus, and persist even under
academic pressure. Honicke and Broadbent (2023) supported this concept, stating that self-
efficacy and academic performance are reciprocally related—improved confidence
enhances performance, which in turn reinforces self-belief. Thus, self-efficacy forms a key
psychological element in perceived readiness for the CPALE.

Another important framework is Deci and Ryan’s (1985, 2000) Self-Determination Theory
(SDT), which explains how motivation is influenced by the satisfaction of three basic
psychological needs: autonomy, competence, and relatedness. When these needs are met,
learners demonstrate greater engagement and persistence in their studies. Ryan and Deci
(2020) assert that students who are intrinsically motivated—those who study for self-
improvement and mastery rather than external rewards—are more resilient in facing
challenges. Applied to CPALE preparation, this theory suggests that students who find
purpose and meaning in their studies, supported by a nurturing academic environment, are
more likely to sustain motivation and perceive themselves as ready for the examination.

Flavell’s (1979) concept of Metacognition and Self-Regulated Learning further explains

students’ readiness by emphasizing awareness and control of one’s cognitive processes.
Students who plan, monitor, and evaluate their learning progress tend to perform better
academically. Stanton et al. (2021) found that metacognitive instruction enhances the
effectiveness of learning strategies and improves exam performance. In CPALE preparation,
self-regulated learners who utilize goal setting, progress tracking, and reflective learning
exhibit higher levels of confidence and readiness. Metacognition thus enables students to
optimize their study habits and make informed adjustments throughout their review
period.

The Cognitive Interference Theory developed by Sarason (1984) highlights that test anxiety
disrupts focus and working memory, leading to reduced performance in exams. Abeasi
(2021) revealed that high levels of anxiety are associated with lower perceived readiness
and poorer licensure exam outcomes. Similarly, Zeidner (2014) emphasized that effective
anxiety management strategies, such as mock board simulations and structured review
programs, can significantly improve students’ performance. Therefore, emotional
preparedness and anxiety control must be considered crucial dimensions of readiness for
the CPALE.

Perceived readiness itself is a multidimensional construct that integrates academic

preparedness, review strategies, psychological well-being, and institutional support.
Micabalo and Cruspero (2022) define readiness as the combination of cognitive mastery,
motivation, and access to academic resources that facilitate effective preparation. Academic
preparedness includes proficiency in accounting principles, familiarity with problem-
solving approaches, and performance in mock examinations. Review strategies pertain to
systematic study methods such as attending review classes, practicing with test simulations,
and maintaining disciplined study routines. Emotional and psychological readiness involves
self-confidence, motivation, and stress management, while institutional support includes
access to curriculum-aligned learning materials, mentoring, and peer study programs.
These components collectively shape students’ overall perception of their preparedness for
the CPALE.

Camacho (2024) found that students who performed well in mock board examinations
exhibited greater confidence and higher passing rates in the CPALE, establishing mock
exams as effective predictors of readiness. Villegas (2025) similarly concluded that
developmental activities such as peer tutoring, mock boards, and curriculum alignment
improve both readiness and actual licensure performance. In a related study, Micabalo and
Cruspero (2022) identified financial limitations, lack of comprehensive review materials,
and curriculum gaps as major barriers to students’ readiness. These findings highlight the
need for enhanced institutional programs that can address both academic and financial
challenges.
Aniceto et al. (2024) explored how attitudes toward the CPALE affect preparation and found
that students with positive perceptions and goal-oriented motivation are more likely to
persist and feel ready for the exam. Roda (2025) examined the influence of school culture
and concluded that institutions promoting academic collaboration and discipline produce
students with higher confidence levels. Likewise, Ganas and Russell (2023) demonstrated
that practice-based learning activities, such as accounting simulations and internships,
enhance both competence and perceived readiness. Dela Peña et al. (2022) examined the
alignment of the BS Accountancy curriculum with international standards and found that
gaps, particularly in applied and technology-related subjects, negatively affect students’
perception of readiness.

Honicke and Broadbent (2023) reaffirmed that self-efficacy is a significant predictor of

performance, validating its inclusion in the assessment of readiness. Abeasi (2021) and
Zeidner (2014) both confirmed that high test anxiety undermines perceived readiness and
actual performance. Stanton et al. (2021) found that explicit training in metacognitive
strategies improved time management and reduced anxiety. Similarly, Ryan and Deci
(2020) demonstrated that intrinsic motivation fosters persistence and satisfaction during
exam preparation. These findings reinforce the multidimensional nature of readiness,
where psychological, emotional, and cognitive factors interact to shape outcomes.

In a study on nursing licensure exams, Innab et al. (2024) confirmed that structured review
programs significantly improved both self-efficacy and passing rates, suggesting that
institutional review mechanisms play a crucial role in readiness. Poorman et al. (1991) also
emphasized the impact of nonacademic variables, such as test anxiety and confidence, on
licensure performance. Amanonce et al. (2020), in their study of teacher licensure exams,
found that attendance in review sessions and high pre-board scores were strong predictors
of passing rates. These findings parallel those of the CPALE context, confirming that
cognitive, affective, and institutional factors jointly determine licensure outcomes. Roda and
Villegas (2025) synthesized institutional findings and recommended comprehensive
developmental programs integrating both academic and psychological support to enhance
readiness.

Overall, the reviewed literature demonstrates that perceived readiness for the CPALE is not
merely dependent on knowledge acquisition but also on psychological and institutional
elements. Academic preparedness forms the foundation of readiness, while emotional
resilience, motivation, and institutional resources enhance it. However, most existing
studies focus on graduates or review center enrollees, leaving a research gap in
understanding the readiness of fourth-year accountancy students before formal review
participation. This study aims to fill that gap by assessing the perceived readiness of
DMCCFI fourth-year accountancy students, thereby identifying areas of strength and
improvement in their preparation for the CPALE.

In summary, the theories and studies discussed establish that readiness is a multifaceted
concept shaped by cognitive mastery, self-efficacy, motivation, anxiety control, and
institutional support. Bandura’s Self-Efficacy Theory explains how belief in one’s
capabilities drives performance; Ryan and Deci’s Self-Determination Theory highlights
intrinsic motivation; Flavell’s Metacognition Theory underscores self-regulated learning;
and Sarason’s Cognitive Interference Theory addresses the impact of anxiety on
performance. Together, these frameworks provide a comprehensive lens for evaluating how
academic, psychological, and environmental factors influence students’ perceptions of
readiness. The literature emphasizes the importance of developing not only intellectual
competence but also emotional stability and institutional interventions to ensure success in
the CPALE.

Camacho, Y. P. (2024). Mock board examination results as predictors in the Licensure

Examination for Certified Public Accountants. Journal of Global Education Research.

Villegas, A. (2025). Performance in the CPA Licensure Examination and the impact of
developmental activities. Zenodo / ResearchGate.

Micabalo, K. G., & Cruspero, C. (2022). Factors affecting accountancy graduates’ readiness
for the CPALE. IJRCMS.

Aniceto, M. J. A., et al. (2024). Influence of the CPALE on accounting students’ attitudes.
International Journal of Multidisciplinary Research.

Roda, F. (2025). The influence of school culture on readiness for the CPALE. Journal of
Institutional Practices.

Innab, A., et al. (2024). The impact of comprehensive licensure review (nursing).
ScienceDirect.
Bandura, A.; Honicke & Broadbent (2023). Self-efficacy and academic performance.

Ryan, R. M. & Deci, E. L. (2000). Self-Determination Theory: Basic psychological needs and
motivation.

Stanton, J. D., et al. (2021). Fostering metacognition to support student learning and
assessment.

Abeasi, D. A. (2021). Analysis of licensure examination anxiety and its correlates.