How Effective is CPA US in India without CA? Must Know Differences !! | Uplift Professionals
Professionals often face a dilemma when it comes to selecting their accounting career, particularly in India. There are two prestigious accounting credentials namely US CPA and Indian CA. There is no conflict between the these two courses, but some differences exist.
The pertinent question is whether a CPA without CA is really effective in an Indian context ? It often comes to mind whether one can pursue CPA without CA and do such journeys bring effectiveness? The short answer is Yes – one can do CPA US course in India without completing CA which is also very effective. To address this, let’s see the differences between the two courses.
Difference Between CPA US course and CA
CPA stands for Certified Public Accountant and these exams are conducted by American Institute of Certified Public Accountant (AICPA) and this course takes a minimum of 7 months and a maximum of 1 year to complete.
CA stands for Chartered Accountant. The exams are conducted by Institute of Chartered Accountants of India (ICAI) and this course takes an average of 4 to 5 years to complete.
Most important question is whether CPA US course benefits the career path or CA?
1. There is no clear winner because both qualifications helps to develop technical and accountancy, and business management skills.
2. Both CPA and CA holders tend to be equally spread across commercial and public accounting – so each qualification provides maximum flexibility to work across the industry.
Eligibility Criteria
| CPA US course | CA |
| If you wish to appear for Certified Public Accountant Examination, you need to clear Bachelors in Commerce (B. Com) with a first-class or you need to have a Bachelor’s in Commerce and also a Post-Graduation Degree. If you have Indian CA’s designation with B. Com than also you can appear for CPA examinations. Also, checkout Careers after B.com |
If you want to appear for Indian CA Examination you need to appear for Common Proficiency Test (CPT) after appearing in Senior Secondary Examination (recognized by the Central Government of India. CPT Examination is held in June & December every year. Hence the first step you need to do is you need to register for Common Proficiency Test 60 days |
It is to be noted that CPA US course are concerned with US auditing and GAAP . CA is concerned with corporate legal needs, taxation, and other difficulties. CPAs have a thorough knowledge of GAAP, which is why many global firms located in the United States hire them.
CPAs are recognized as professionals who perform public accounting and financial services by the AICPA. Having a solid clench of accounting concepts, CPAs appear more professional, experienced, and talented in the accounting field.
Benefits of the CPA License
In is this section, let us discuss the benefits in having a CPA credential, especially for professionals who plan to work with US-based companies.
1. Firstly, the CPAs have a deep understanding of US GAAP (Generally Accepted Accounting Principles) and US federal income tax.
2. Secondly, they are comfortable with other accounting documentation used by companies that are publicly traded on US markets.
In many states, only CPAs can sign an audit report on behalf of an accounting firm. Further, some states dictate that only CPAs can provide compilation services.
Many big corporations strongly prefer their senior financial professionals to have a CPA qualification to show their knowledge and expertise in the accounting field. The CPA license is globally recognized.
Moreover, international employers understand that the content of the CPA Exam focuses on United States accounting laws, regulations, and practices.
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 ..
Indian CA
Like CPAs, CAs (or chartered accountants) must pass the CA Exam and meet experience benchmarks that have been established in their country. CAs are experts in the IFRS (International Financial Reporting Standards) and other international accounting standards. T
The role of Indian CAs is very similar to that of CPAs in the United States. However, the main difference is that Indian chartered accountants’ services are limited to India, while the CPA US course credential is recognized around the globe.
Indian CA Eligibility for US CPA Course
Let’s review some common situations for Indian accounting professionals and how they can meet the education requirement for the US CPA.
BCOM Only
The BCOM (or Bachelor of Commerce) is a common degree for Indian professionals wishing to go into the accounting field. The degree is worth about 90 US credit hours, you will need an additional degree or other education hours to get your CPA license. You could consider an MCOM or a related master’s degree in accounting or taxation.
MCOM Only
In case of candidates with master’s degree in an accounting field such as the MCOM (Master of Commerce); they will have no problem in getting qualified for the US CPA exam. The educational level is sufficient to fulfill the general higher education requirements.
BCOM + CA
Professionals having BCOM and the CA credential, however, it is getting a lot tougher to get qualified as a CPA. In the past, some US jurisdictions considered the CA to be worth 40 US education credit hours.
With a 3-year BCOM (equivalent to 90 hours) and a CA (previously equivalent to 40 hours), candidates could reach the 120 hours required to sit for the US CPA exam in most states. Then, they could take a few extra courses to meet the 150-hour requirement to get the CPA license.
Since an overhaul of the standards in 2012, most Boards of Accountancy changed their interpretation of the CA qualification.
Most states view the CA as an “experience qualification” rather than an “academic qualification.”
CPA US Examination Syllabus
| CPA US course | CA |
| 1. Exam I: Financial Accounting & Reporting (FAR CPA Exam) 2. Duration: 4 hours 3. Question Pattern: 3 multiple-choice tests (60% weightage) & 7 short task-based simulations (40% Weightage) |
1. Level I: Common Proficiency Test (CPT) 2. Duration: Session 1 & 2 (each session 2 hours)Session 1: Fundamentals of Accounting (60 marks), Mercantile Laws (40 marks)Session 2: General Economics (50 marks), Quantitative Aptitude (50 marks) 3. Question Pattern: Objective Type Test for each correct answer 1 mark and for wrong answer negative 0.25 |
| 1. Exam II: Auditing & Attestation (AUD CPA Exam) 2. Duration: 4 hours 3. Question Pattern: 3 multiple choice test lets (60% weightage) & 7 short task-based simulations (40% Weightage) |
1. Level II: Integrated Professional Competence Course 2. Duration: 7 Papers arranged into Two groups (Each Paper of 3 hours)Group I: Advanced Accounting, Law, Ethics & Communication, Cost Accounting, and Financial Management, Taxation Group II: Advanced Accounting, Auditing & assurance, Information Technology & Strategic Management. 3. Question Pattern: Theory & Practical Based |
| 1. Exam III: Regulation (REG CPA Exam) 2. Duration: 4 hours 3. Question Pattern: 3 multiple choice testlets (60% weightage) & 7 short task-based simulations (40% Weightage) |
1. Level III: CA Final 2. Duration: 8 Papers arranged into Two groups (Each Paper of 3 hours)Group I: Financial Reporting, Strategic Financial Management, Advanced Auditing & Professional Ethics, Corporate & Allied Laws.Group II: Advanced Management Accounting, Information Systems Control & Audit, Direct Tax Laws, Indirect Tax Laws. 3. Question Pattern: Theory & Practical Based |
| 1. Exam IV: Business Environment & Concepts (BEC CPA Exam) 2. Duration: 4 hours 3. Question Pattern: 3 multiple choice testlets (85% weightage) & 3 written simulations (15% weightage). |
Career Opportunities
| CPA US course | CA |
| CPA designation will open a door of wide varied options. After getting your CPA certification you can work under various accounting fields such as International Accounting, Internal & External Auditing, Consulting Services, Forensic Accounting, Assurance services, Taxation & Financial Planning, etc. With its global recognition, you will find the best place to work anywhere in many countries. |
Similarly, CA Designation will also provide you many options in the specialized areas of accounting such as Auditing, Taxation, Corporate Finance, Corporate Laws. After getting your CA Certification you can either work in the existing top firms of Accountancy or you can start your own independent professional practice. |
Salary Comparison
| CPA US course | CA |
| The average salary earned by the CPA Professionals (in India) is found to be INR 7,68,552 per year. Most people move on to other jobs if they have more than 10 years’ experience in this field. |
A Chartered Accountant (in India) earns a salary of INR 6,08,976 per year on an average. Skills that are associated with high pay for this job are Evaluation and Management Auditing, Budget Management, Financial Analysis, Strategic Accounts, and Financial Advisor. People in this job generally don’t have more than 10 years’ experience. Experience strongly. Influences income for this job. |
Demand for US CPA course is Increasing in India
In the past few decades, many multinational companies have increased presence in India. Often, the financial reporting of Indian business needs to be integrated with global accounts (US GAAP or IFRS).
As a result, accounting professionals need to be familiar with multiple standards.
In the past, MNC’s relied on Indian CAs for accounting services. On-the-job trainings ensured that Indian accounts met the US GAAP standards .
However, many Indian CAs received inadequate training and supervision in US standards. Therefore, errors and inconsistency were common in accounting reports . Further, these oversights created issues with the SEC (U.S. Securities and Exchange Commission) and other US regulatory bodies.
CPAs are needed for US GAAP reporting and for general controller roles for US subsidiaries in India. Global Indian companies publicly listed in the US require US CPAs for quarterly and annual financials. They rely on CPAs for conformity with the Sarbanes-Oxley Act and other compliance reporting.
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. Further reading.…
Conclusion
Going back to the essence of the topic, the answer is yes.
CPA without CA is quite effective in terms of career. Both courses have their own pros and cons. It is not an easy task to opt between CPA & CA as both have a successful career.
Candidates planning to work abroad or in a multinational company, should consider CPA US course. Alternatively, if you want to start your own audit practice in India, opt for CA.
CAs have an edge over CPAs in the areas of taxation and corporate laws. Professionals planning to work for a company which is traded on the US market, should consider acquiring the CPA US course.
Considering the longer duration and low pass rate in CA exam, US CPA offers a fruitful and valid option for Indian accounting professionals .
It can be stated that CPA without CA is equally effective in career building potential of accounting professionals. US CPA course can stand alone without the CA as the credential and career scope of the former is global.
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
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