A detailed comparison between CPA US, CPA Canada and CPA Australia | FY 2023 |Uplift Professionals
Generally, when we use the term CPA we think of CPA US Course. This is because the CPA US is most widely accepted and in great demand thanks to US Companies all over the world. However, most countries have their own accounting qualifications like Canada has CPA Canada, Australia has CPA Australia and so on.
A Certified Practicing Accountant (CPA) is a finance, accounting and business professional with a specific qualification. Being a CPA is a mark of high professional competence. It indicates a soundness in depth, breadth and quality of accountancy knowledge. CPAs are highly respected by employers and members. It provides members with an internationally recognized qualification as well as the opportunity to complete specialist training and continuing professional development (CPD).
1. CPA Australia
To use the CPA designation in Australia, a member must:
A. Complete a degree or a postgraduate award recognized by CPA Australia
B. Complete the CPA Program, including three years of professional experience in finance, accounting or business undertake CPD activities each year
C. Comply to a strict code of conduct set by CPA Australia.
D. To offer public accounting services, CPAs must also complete CPA Australia’s Public Practice Program and hold a Public Practice Certificate in accordance with the CPA Australia’s By-Laws.
CPA Australia is a two-part journey having a foundation program, followed by the CPA program as mentioned below:
1.1 The Foundation Program:
1. The focus of the Foundation Program is to – Impart the basics and covers 6 major areas (which are further divided into courses) including Economics, Accounting, Business Law, Finance, Financial Accounting & Reporting, and Management Accounting.
2. Depending on whether you have a graduate degree in accounting & finance, overseas graduates will have to appear for a few courses of study within this.
3. The foundation exams cover the knowledge required to become an Associate member of CPA Australia.
4. They can be taken in any order, at your choice of exam location and time.
1.2 CPA Program:
1. Upon successful completion of the Foundation Program, the main CPA Program starts.
2. The CPA Program consists of 4 compulsory subjects + 2 electives + An experience component.
3. The CPA Program, like any CA/CPA program, is extensive.
4. And similar to most such programs, the experience component (article-ship) is of a mandatory 36 months duration.
5. Subsequent to the successful completion of CPA Program requirements, you become a CPA.
6. Depending on the courses you are required to undertake in the Foundation Program, the total program stretches from anywhere between 3-4.5 years.
1.3 Switch over from CPA Australia to CPA US Course and Vice versa
CPA Australia has a Mutual Recognition Agreement (MRA) with the International Qualifications Appraisal Board (IQAB) representing AICPA and NASBA. Under this MRA, a CPA Australia member may be eligible for the CPA US credential if they are a citizen of Australia or New Zealand, or a holder of a Visa granting legal residency in Australia or New Zealand. They must also be a member in good standing of CPA Australia and meet additional criteria for prior education, relevant CPA Program examinations, practical experience and continuing professional development.
Members of CPA Australia seeking to obtain the US CPA credential via this agreement can visit the NASBA website for specific eligibility requirements. The following steps demonstrate the pathway to CPA membership for holders of a US CPA credential, under the conditions of the current MRA.
Step 1: Determine your eligibility
You may be eligible to apply for CPA Australia membership if you:
a. are a current member of good standing with a State Board and not under any investigation for professional conduct infringements
b. did not obtain the US CPA credential under a mutual recognition agreement, reciprocal membership agreement, or other similar agreements which the IQAB may have/had at any time
c. have successfully completed the Uniform CPA Examinations
d. hold a baccalaureate or higher degree
e. have satisfied the experience requirement of the relevant State Board.
Step 2: Apply
a. Complete online application and submit it with the required documentation, including your application and membership fee.
b. In your application, nominate AICPA or NASBA as the professional body with whom you studied and hold membership.
Step 3: Verification and outcome of your application
Your application will take approximately 10 to 15 working days to verify. They will send you an email informing you of your assessment outcome.
1.4 Agreement gives US CPAs path to Australia, New Zealand audit rights
Qualified CPA US’s are eligible to obtain a credential that is a pathway for obtaining audit rights in Australia and New Zealand under a mutual recognition agreement (MRA) that has been renewed.
The AICPA and the National Association of State Boards of Accountancy (NASBA) renewed their MRA with the Chartered Accountants of Australia and New Zealand (CA ANZ). The AICPA and NASBA had signed an MRA with CPA Australia in July 2018, so qualified CPA US’s have two paths to licensure in Australia and New Zealand.
Under the renewal, qualified CPA US’s may obtain the CA ANZ credential if the holders meet eligibility requirements detailed in the appendices of the MRA. CA ANZ credential holders who are citizens or legal residents in Australia or New Zealand are eligible to obtain the CPA US credential if the holders meet the eligibility requirements described in the MRA’s appendices.
2. The Canadian CPA Designation
To become a Canadian CPA, students must meet the academic prerequisites, complete the CPA Professional Education Program (PEP), pass the Common Final Exam (CFE), and obtain 30 months of qualifying practical work experience. This is the case for a majority of students but there are a few exceptions. For example, internationally trained accountants can challenge the CFE and transfer their credentials to the Canadian CPA without having to go through the entire program. This is covered under CPA Canada’s Memoranda of Understanding (MOU).
The four requirements to becoming a Canadian CPA (prerequisites, PEP, CFE, and work experience) are part of the CPA certification program. The educational component, called PEP, consist of six, 8-week modules. I find the first two modules (Core 1 and 2) to be the most challenging because of the breadth of topics tested. Fortunately, each module is taken separately, except in the fast-track modules where two modules can be taken simultaneously.
The first four modules (the Cores and Electives) have exams made up of cases and objective-format questions (MCQs). Students entering PEP from university find the cases challenging because of their integrative nature and ambiguous requirements. Case-based exams are only part of the Canadian CPA pathway, which is perhaps why the Canadian CPA is called one of the world’s most rigorous programs. The CFE is offered once or twice per year and has an average 75% pass rate. The CFE is marked based on displaying competencies and average performance.
3. The CPA US Course Credentials
To become a CPA US, students must fulfil educational requirements, pass four 4-hour exams, complete an ethics exam (if required by state), and obtain required work experience (if required by state). These four requirements (education, exams, ethics, experience) are known as “the four Es.”
Note: While the Canadian CPA program has six modules and a CFE, the CPA US course has only four section exams:
· Auditing and Attestation (AUD)
· Business Environment and Concepts (BEC)
· Financial Accounting and Reporting (FAR)
· Regulation (REG)
Candidates take the four sections during four testing windows throughout the year. To pass, candidates must score a minimum of 75 out of 100 on each part. The four exams, which are called the Uniform CPA Exam, have an average 53% pass rate, much lower than the Canadian exam pass rates.
Unlike the Canadian CPA exams, the US CPA exams are made up of multiple-choice questions (MCQs), task-based simulations (TBS) and small written communications (WCs). There are no lengthy cases, no integrative required, and no final, multi-day exams to tackle. While the Canadian CPA program takes 24-30 months to complete, the US CPA exams have a strict 18-month deadline to complete. Let’s summarize the two options.
US CPA Exam 2021 – New Updates In 2020, the US CPA exam in India had few changes; the most prominent change was the introduction of the CARES Act to the REG section effective in Q4 2020. In 2021, the US CPA Exam will undergo additional changes, mainly to the AUD & BEC sections, with minor revisions to the remaining two sections – FAR & REG….continue reading
4. Choosing the right program: Canadian vs. the CPA US Course
If you are interested in working as an accountant in the U.S., it’s best to pursue the CPA US course credential. You will learn U.S. GAAP and prepare yourself for an American career. It’s also quicker and more cost effective.
If you are interested in working and staying in Canada, you should pursue the Canadian CPA program. It’s a prestigious and highly respected designation that prepares you for an accounting career in Canada. It also has higher pass rates and facilitated modules. You have three attempts at the module exams and the CFE, so, if you are unsuccessful three times, you may consider attempting the CPA US course.
Despite the lower pass rates, the US CPA exams are somewhat easier due to the objective format of the questions and extended exam windows. Once you obtain your CPA US course credentials, you can either keep it or transfer to the Canadian CPA, but the process is complicated for CPA US’s who are, or have been, Canadian residents.
Practical benefits of US CPA course – Becoming a CPA US in India is an aspiration for many finance professionals and accountants. Most CPAs agree that becoming a US CPA completely transformed their career. Please follow the link for further reading.
4. Switch Over from CPA US course to the Canadian CPA designation
Transferring your credentials to the Canadian CPA has many advantages. Many employers in Canada look for the Canadian CPA designation. For example, for Canadian positions that require financial reporting and tax analysis, Canadian CPAs have the upper hand in the selection process.
On the other hand, with the CPA US course, you can apply for positions such as senior financial analyst or business analyst and have the same advantage as a Canadian CPA — your work experience will take precedence. If you keep your CPA US course, you can designate the CPA letters after your name once you receive approval from your provincial CPA body. If you decide to transfer, make sure to read CPA Canada’s eligibility and transfer steps. Most Canadians will not be eligible to transfer because, assuming you were a Canadian resident while completing the US CPA exams, you will be required to have:
1. A university degree in the U.S. from having attended in person on a full-time basis,
2.Have at least one year of full-time practical experience in accounting in the U.S.
This means you must physically study or work in the U.S. to transfer your credentials. You cannot use a CPA US as a “shortcut” to attain the Canadian CPA designation.
What is US CPA ? Why and How to become a US CPA – A complete guide on CPA US Course including Eligibility, Details, Duration, Syllabus, Job & Salary, Exam & Pass rate, Structure of US CPA exam, Fees, etc….continue reading ..
5.How to decide which CPA should you go for?
Generally, when we use the term CPA we think of CPA US course. This is because the CPA US course is most widely accepted and in great demand thanks to US Companies all over the world. However, most countries have their own accounting qualifications like Canada has CPA Canada, Australia has CPA Australia and so on.
5.1 When you have to decide which CPA to pursue, Australia or USA? –
1. Understand where you want to work and the DEMAND of the degree in your country.
2. Like the CPA US course is done by a lot of people because US companies are spread all over the globe and thus there is a job opportunity.
3. Anyone intending to move to Australia should consider CPA Australia or anyone considering working in an Australian firm based in India (or anywhere in the world) should consider CPA Australia.
4. Similarly, anyone looking at working in a USA Company should consider CPA USA and the same for CPA from any other country.
5. A course like CPA should ideally be followed by a work stint in the same country so you can understand the application side better.
6. The main reason is that CPA courses are more country-specific unlike other streams of study like MBA or Engineering.
7. If one is studying CPA Australia the course would cover the Accounting Standards applicable in Australia. Not only do Accounting Standards (AS) differ but the difference gets even more as you graduate to Auditing with its country-specific standards and equally if not more so in Taxation.
So, depending on your long-term goals you can choose the right CPA to meet your needs!
6. Which CPA to Pursue? USA or Canada?
If you are interested in working as an accountant in the U.S., it’s best to pursue the CPA US course credential. You will learn U.S. GAAP and prepare yourself for an American career. It’s also quicker and more cost effective.
If you are interested in working and staying in Canada, you should pursue the Canadian CPA program. It’s a prestigious and highly respected designation that prepares you for an accounting career in Canada. It also has higher pass rates and facilitated modules.
US CPA exams are somewhat easier due to the objective format of the questions and extended exam windows. Once you obtain your CPA US course credentials, you can either keep it or transfer to the Canadian CPA, but the process is complicated for CPA US’s who are, or have been, Canadian residents. Transferring your credentials to the Canadian CPA has many advantages. Many employers in Canada look for the Canadian CPA designation. For example, for Canadian positions that require financial reporting and tax analysis, Canadian CPAs have the upper hand in the selection process.
On the other hand, with the CPA US course, you can apply for positions such as senior financial analyst or business analyst and have the same advantage as a Canadian CPA — your work experience will take precedence.
7. Summary
Think about your desired career path, the costs and benefits of cross-border work experience, and the educational requirements of each program before making the decision. If you’re interested in growing in a role that doesn’t require financial reporting nor tax analysis, either of the CPA programs may be sufficient.
If you want to stay and work in Canada, then without a doubt pursue the Canadian CPA designation or go for CPA US course as it has lesser number of papers and then apply for a Canadian CPA license through their mutual reciprocity arrangement or MOU. With over 200,000 members, you will become part of one of the largest accounting organizations in the world, learn in-depth the Canadian accounting frameworks, and become a well-paid professional with an accelerated career growth.
Similarly, if you want to settle in Australia, go for Australian CPA or use It is always best to pursue CPA or equivalent courses in the country of that certification. Again, as mentioned above anyone intending to move to Australia should consider CPA Australia or anyone considering to work in an Australian firm/company based in India (or anywhere in the world) should consider CPA Australia or go for CPA US course and take advantage of the MOU.
As a whole, by going through the above information , it can be stated that for an international candidate CPA US course is more preferable due to its wide acceptance, more job prospects and switch over facilities or MOUs between AICPA and the CPA Australia and CPA Canada bodies.
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