Many of us know that CPA US has rewarding benefits like higher lifetime earnings and faster career advancement. The fact is this is not everyone’s cup of tea. The opposite side of those benefits is the tough cost to earn the CPA certificate. It is often difficult and time consuming to become a CPA. One must make a realistic compromise with other important areas of daily life by making a lot of sacrifices during the CPA exam process.
Hence, CPA exam preparation is meant for serious aspirants who are serious and hard working too.CPA is a professional course and many working people take up this course along with their full-time jobs. Managing both job and this extensive professional course can be daunting if the schedule is not planned accordingly. One needs to first formulate a strategy on how to prepare for the CPA exam without affecting the personal and professional life. A disciplined approach towards studies is required to pass the CPA exam.
Listing the 10 crucial areas of studying CPA that can be challenging.
Inadequate preparation.
There are four sections on the exam – Auditing and Attestation, Financial Accounting and Reporting, Regulation and Business Environment and Concepts– and each of these requires a good deal of preparation, usually up to about 450 total. Going into the exam without adequate preparation, especially if there have been new topics announced for the exam, is a critical mistake in exam preparation and can lead to disappointment. So, don’t go for the exam driven by any false confidence.
Too much dependent on the theory
The CPA exams demand more solution-making ability than the theoretical knowledge. Not knowing the solution, only the theory. Giving too much focus on the theoretical part than solutions make a gap in the preparation and are a great mistake to tackle the US CPA exam.
Writing Skill
The CPA Exam is about accounting and requires writing skills to prove your ability to effectively communicate. So, good grammatical skill and sentence-making ability is a part of the CPA US exam. This must be kept in mind during the preparation for the exam.
Computational errors
Knowing how to do a situational problem and getting the right answer are two different things on the CPA exam. Even with the best theoretical knowledge, the wrong numbers entered in the calculation will yield the wrong answer. Accuracy is a key component of the exam. Be sure to work carefully to avoid mistakes that can cause lost points.
Comprehension and Interpretation
The supporting text of a question, whether multiple choice or situational, needs to be read carefully to make sure that you understand what the test writer is looking for. Failure to understand what the test writer is looking for can lead to incorrect answers and a failure of the exam even though your calculation(s) make be correct
The inability to understand the perspective of the test writers can lead to incorrect answers and disqualifying exam even if the calculations may be correct
Failure to handle the computational tools
One of the biggest mistakes of CPA test takers is a lack of familiarity with those tools, causing a loss of time, reduction in momentum, and computational errors.
Insufficient Practice of MCQs
This is one of the shortfall areas in the CPA US exam preparation. Focusing much more on the adequate practice of MCQs and frequent mock tests evaluation is highly required to pass the CPA US exam.
Inadequate Practice of Simulations
Giving less priority to simulations than MCQs is another big mistake. Since CPA Exam simulations take much longer to solve than MCQs, one must keep this in mind during the CPA exam preparation. It is advisable to spend time trying to solve the simulations more during practicing problems. Furthermore, it is better to try to solve the simulations before viewing the answers.
Allocating more time to Books/videos than Practice
CPA review videos/books teach the important concepts and everything, but multiple-choice questions (MCQs) and task-based simulations (TBSs) take those concepts and put them into the language of the CPA exam–which is ultimately what matters to crack the CPA US exam.
Selecting the Sub-optimum CPA Review Course
This is another area of mistake in opting for a review course which not fit with the candidate’s intent, learning ability, and mindset. A suitable review course with seasoned CPA mentors can prevent many errors to occur and better preparation for the CPA US exam. For example, The Uplift Pro-Gleim CPA package suits most of the candidates who want to pass the US CPA exam on the first attempt.
Summary
Unlike any other accounting exam, the US CPA exam requires correct planning, constant motivation, and guidance from experts. In this era of a competitive world, preparing for such exams is taking a mental or emotional toll on students. Moreover, the lack of dedicated articles related to the subject and discussion groups making things critical.
This is quite evident in the case of working professionals who manage their CPA study preparation with a hectic work schedule. Almost every US CPA exam candidate can say that they’ve experienced a lack of clarity and guidance during their studying at least a few times if not many. In this perspective, avoiding the above-mentioned mistakes seems to help the students to effectively prepare for the CPA US exam.
The area of taxation accounting demands a skilled professional to deal with whether for an individual or a business. When we consider such professionals, two coveted international credentials often come to our mind- a Certified Public Accountant or an Enrolled Agent (EA). Obviously, we will want to know which of them will serve the purpose and what are areas they are specialized for rather than the differences between the two irrespective of either engaging them or choosing either or both for career development. Let us discuss the differences between a CPA and an EA here.
It is to be noted that both Enrolled Agents (EA) and Certified Public Accountants (CPA) are licensed professionals who can effectively handle the tax issues of an individual or a business. The primary difference between the two lies in the fact that the license of an EA is authorized by the federal government, i.e., the Internal Revenue Service (IRS) while the CPA license is issued by any of the 55 U.S. states.
This means a CPA has restricted authority to the state level whereas an EA can work across the country. A CPA license is a two-way process where one must clear the CPA exam conducted by AICPA first and then apply for the license separately. On the contrary, an EA license is a single-step process by which one can get an EA license by clearing the exam only.
For a job aspirant, it often creates a dilemma of which path to take in the domain of accountancy. The roles of EAs are centered around a specific niche i.e., taxation but holding greater authority since they represent their clients before the IRS. On the other hand, CPAs’ range of services are much wider rather than taxation and expanded to public accountants, tax accountants, personal finance managers, business consultants, auditors, etc.
What is a CPA?
A licensed CPA is used to carry the following roles :
Accountants
Financial Advisor
Tax specialists
Financial Planner
Individual and Business Consultants
Chief Financial Officer
Auditor
Controller
It means apart from preparing and filing tax returns, a CPA can do auditing and is able to give wealth-related financial advice. For earning a CPA credential, one must clear the four parts of the CPA exam administered by AIPCA where 18 months’ time will be given to pass the sections in an exam cycle. CPAs are governed by the individual US states each of which has different eligibility criteria regarding age, experience, educational qualifications, etc.
What is an Enrolled Agent (EA)?
An enrolled agent (EA) is an IRS-authorized tax professional. EA is considered highly coveted as it is the highest credential awarded by the IRS.
EAs are especially skilled in taxation in its most complicated form. They can represent their client before the IRS regarding tax disputes/discrepancies, appeals, etc.
Being a federal license holder, EAs can represent any taxpayers from any part of the country to any IRS office without restriction. To earn an EA license, one must pass the three parts of the Special Enrollment Examination (SEE) exam. After clearing one part, the candidate can take the other parts at convenience. The score stays valid for two years. Former IRS employees with the required skill and expertise can get the EA license directly without any exam.
Ethical commitment is a must for an EA. To maintain the standard, completion of 72 hours of continuing education courses is mandatory after each 3 years for a licensed EA.
Briefly:
CPA Vs.EA-Licensing
CPA: Professional bodies of different US states give the license.
EA: Federal Government, IRS.
CPA Vs.EA-Examination:
CPA: One must clear a 4-part CPA exam.
EA: One must clear the 3-part SEE exam.
CPA Vs.EA-Exam Sections:
CPA:
Auditing and Attestation (AUD)
Business Environment and Concepts (BEC)
Financial Accounting and Reporting (FAR)
Regulation (REG).
EA:
Individual
Business
Representation, Practices, and Procedures.
CPA Vs.EA-Exam Features:
CPA: Passing of all 4 parts is required within 18 months. A minimum of 75 marks is required to pass each part of the exam.
EA: The score of each test section is valid for 2 years which has been extended to 3 years due to covid. The passing score for each section is scaled to 105.
CPA Vs.EA-Cost:
CPA: 180-250$ per exam.
EA: 203$ per exam part.
CPA Vs.EA-Expected Salary:
CPA: Around 66000$ a year with 1 yr experience.
EA: 40000-65000$ per annum as per experiences.
Which Path to take?
If you have the inclination, determination, and the required academic and professional qualifications with the intent to become a seasoned auditor in public accounting along with the tax matter, go for the CPA but keep in mind it is costlier.
On the other hand, if you want to work as a tax professional in a specific domain EA should be your cup of choice. Mind it, to be an EA, there is no set academic qualification. The exam is quite easier than CPA and is economical and affordable too.
However, since the REG part of CPA is covered in EA, one can also go for a dual qualification simultaneously by availing some offers like what Uplift Pro is providing where a free EA course is offered with official CPA admission.
The CPA credential is considered the coveted highest order of professional accounting skill globally. To make it more future relevant, the National Association of State Boards of Accountancy (NASBA) and the American Institute of Certified Public Accountants (AICPA) has jointly initiated a make over process on the exam and licensing pattern involving CPA exam and licensing procedures with effect from January 2024.
It is basically targeted towards inducting upskilled greater knowledge of emerging technologies. Since this effort is going to make a big leap from the existing pattern it is very much likely to be designated as an evolution in the CPA curriculum. It is of utmost importance to know this transition policy for a CPA aspirant who is going to start the CPA journey on or after January 1, 2024.
In the advent of the technological boom, the accounting profession also has to cope with the emerging technologies. Keeping this in mind, both NASBA and AICPA are restructuring the CPA exam and licensing procedures known as the CPA evolution. However, the 18-month duration remains unchanged.
The new forthcoming CPA licensure and CPA Exam pattern is being considered as an amalgamation of 3 core and one discipline subject. The core subjects involve accounting, auditing, and tax that are mandatory for all candidates. Apart from the core, each candidate has to select a Discipline section for depiction of greater skills and knowledge. Furthermore, competence in knowledge and skills of technology will be tested throughout all sections. In any case, irrespective of the discipline chosen, there will be no obstacle to get a full CPA license. It has to be kept in mind that whichever the discipline chosen for the exam, it has no impact on the practicing right of a CPA.
The Transition
2024 CPA Exam Evolution: Core-Plus-Discipline Model in Detail
The new CPA exam and licensure system demand CPA candidates to have greater skill in the core subjects which have integrated questions from technology. Additionally, in depth knowledge is required in any of the following primary disciplines:
· Business Analysis and Reporting (BAR) – part of the Accounting core;
· Information Systems and Controls (ISC) – part of the Auditing core,
· Tax Compliance and Planning (TCP) – part of the Tax core.
It is mandatory for a CPA candidate to pass all three core sections and one discipline section on the CPA Exam. Candidates selecting one particular discipline will not be able to sit for another. It is noteworthy that the discipline passed has nothing to do with the type of license granted and obviously results in one CPA license irrespective of the discipline chosen.
(Source: NASBA)
The Boards of Accountancy have nodded this transition policy as at present, since it serves the candidates better. The transition policy states that candidates having credit for AUD, FAR or REG on the current CPA Exam will not need to take the corresponding new core section of AUD, FAR or REG on the 2024 CPA Exam. Candidates who have credit for BEC on the current CPA Exam will not need to take any of the three discipline sections.
In case, a candidate loses credit for AUD, FAR or REG after December 31, 2023, they then must take the corresponding new Core section of AUD, FAR or REG. A candidate who loses credit for BEC after December 31, 2023, must select one of the three Discipline sections to be tested. It is to be noted that none of the sections of the current CPA Exam will be available for testing after December 31, 2023. There is a tough shedding from the present CPA Exam sections to the proposed 2024 CPA Exam sections on the January 2024 float.
Transition Policy for Each Section
(Source:NASBA)
CPA Exam CORE Overview
It is presumed that CPA candidates who are going to write the 2024 CPA exam upon successful completion of a foundational scholastic program targeting a strong business and accounting-based curriculum. This will help a candidate to acquire the skills they require to practice in the present business scenario and be able to meet public demands.
Business Analysis and Reporting
CPA Candidates who are interested in assurance or advisory services, financial statement analysis and reporting, technical accounting, and financial and operations management should consider the BAR discipline. The content in the BAR discipline includes a data analytics focus and assesses topics like financial risk management and financial planning techniques. BAR could also include more advanced technical accounting and reporting topics, including assessment of revenue recognition and leases, business combinations, derivatives and hedge accounting, as well as employee benefit plan financial statements.
Information Systems and Controls
Technology and business controls is a focus of the ISC discipline. CPA candidates who are interested in assurance or advisory services related to business processes, information systems, information security and governance, and IT audits are encouraged to choose this discipline. Content for this discipline is focused on IT and data governance, internal control testing, and information system security, including network security, software access, and endpoint security.
Tax Compliance and Planning
The focus of the TCP discipline includes taxation topics involving more advanced individual and entity tax compliance. Content focused on personal financial planning and entity planning, inclusions and exclusions to gross income, and gift taxation compliance and planning could also be covered. Coverage of advanced entity tax compliance might include consolidated tax returns, multi jurisdictional tax issues, and transactions between an entity and its owners. The tax treatments of the formation and liquidation of business entities could also be included in entity planning.
Application of 2023 CPA credits to the new Core + Discipline model
It is to be noted that BEC credits will not count towards the core requirement but will go to the discipline requirement. However, one can select which of the three disciplines to apply for BEC credits. The options available are: Business Analysis and Reporting (BAR), Information Systems and Controls (ISC), and Tax Compliance and Planning (TCP). For other sections, the road map is as follows:
• AUD credits will be applied to your core requirement of Auditing and Attestation
• FAR credits will count for the core Financial Accounting and Reporting requirement
• REG credits will transition toward the new requirement for Taxation and Regulation
Additionally, NASBA has clearly stated that despite the transition, “the 18-month rule remains in effect for all exam sections.”
sections (AUD, BEC, FAR, and REG) loosely translate to “new” sections. Furthermore, some old sections (AUD, FAR, and REG) align with the new “core” requirement of the Core + Discipline model, while BEC is more related to the “discipline” requirement.To put it another way, here’s how:
One CPA License
Although there are options to select from three different disciplines in the Core-Plus-Discipline-Model, there will be only one unified CPA license without any reflection of the specified discipline. The exam is supposed to remain in the four-section, 16-hour format. On the other hand, since the new 2024 CPA Exam will consist of three core sections and three discipline sections to opt from, candidates will have to pass all three core sections and one specified discipline section to obtain the CPA license.
The Impact
This CPA evolution will not have any impact on those candidates who passed all four sections of CPA exam before the end of 2023 and there will also be no impact on licensure. However, this transition policy will be going to affect those who are in the middle of their CPA journey. For example, if you pass one, two, or three sections before the end of 2023 and plan to pass the fourth in 2024, then you have to check about how the CPA Evolution will affect you; no exceptions will be given. Mind that, you won’t lose your credits, as long as you’re still inside your 18-month rolling window and you follow the path outlined by NASBA and the AICPA.
When are the 2024 CPA Exam Changes Expected to Launch?
NASBA and the AICPA intend to update the CPA Exam with the new core-plus-discipline model by January 2024. As of right now, students will take the new exam starting on January 1, 2024. The 18-month rule remains in effect for all exam sections.
Preparing for Professional Accounting Exams like the CMA, CPA, CIA in tough times : If you have been preparing for a professional accounting exam like the CPA examination or the CMA US examination at this time, you need to introduce some changes in your lifestyle and thought process so that you can focus properly. Read more…
Summary
Basically, the CPA Evolution initiative means that the CPA Exam will change by January 2024. And since you will need to demonstrate your skills in the core content areas plus a sub-discipline, the CPA Exam could become much more challenging. Technology continues to be increasingly vital to the accounting profession. Therefore, technology will be tested on the 2024 CPA Exam, not as a single discipline but throughout all exam sections.
“The proposed changes by the AICPA and NASBA are new and somewhat still vague at this point. However, like any profession, accounting must continue to evolve and adapt to our changing business and technological advancements. We have no doubt that CPAs will still maintain their critical role in the trustworthiness of our financial reporting and that the new CPA specialty exams will make CPAs even stronger in their subject field of choice. These changes will solidify the CPA’s role in continuing to serve the public interest in the 21st century.”—Gleim Publications, Inc.
The CPA Evolution will undoubtedly change which content educators teach, how new content is combined with legacy content and the prevalence of digital acumen and technology content across the curriculum. Educators and faculty can begin making changes to curriculum now to prepare for the new exam in 2024. Bite-sized introductions and self-paced projects will be the most beneficial until the final blueprint is released.
The US CPA certification is offered by the American Institute of Certified Public Accountants (AICPA). This is a highly qualified designation and in order to acquire this designation, a candidate needs to fulfill all the predefined educational and experience criteria. The most prominent of all the careers for a CPA include Public Accounting and Industry Accounting.
Both are responsible for assisting the organization reach its financial goals through performing a number of roles and responsibilities like Auditing and Review, Financial Planning and Business Valuation, Tax Preparation, Company Management, Litigation Services and Forensic Accounting Services.
Thus, candidates with a knack of Accounting and Finance can choose for a CPA course which includes education, CPA exam and experience. Candidates who wish to enroll must have basic understanding regarding various aspects of the course. One of the important parameters in the CPA program is to know the fee details of the exam and administrative expenses which an aspirant has to incur in the process. Let us discuss the same. The candidates are advised to stay updated and plan their preparation accordingly.
The CPA Exam fees will be additional around 3000 USD, below is the break up for your reference: In Indian currencies the below fees will be around 2,25,000 approx. which can vary as per the currency conversion rate applicable at the time of payment.
Examination Fees
Auditing and Attestation (AUD)
$226.15
Business Environment and Concepts (BEC)
$226.15
Financial Accounting and Reporting (FAR)
$226.15
Regulation (REG)
$226.15
Application Fee
150 USD – 200 USD varies state to state and is paid towards CPA Application fee whenever you apply for exams.
Evaluation Fee
225 USD – 350 USD is paid to NASBA for Evaluation.
Registration fees
70 USD to 150 USD varies state to state and all first-time applicants are required to pay both an application fee and an examination fee upon submission of the first-time application.
International Testing Fee
1500 USD for 4 CPA papers is paid as International Testing Fees only for students writing exams out of the US CPA Exam costs vary depending on your jurisdiction i.e. the state you have chosen to write your CPA exam.
Varies depending on the number of days of advance notice. If you reschedule your CPA Exam at least 30 days in advance, there is no fee associated with the reschedule. If you reschedule the exam between 5 and 30 days, you’ll have to pay the Prometric Testing Centre a rescheduling fee of $35.
If you reschedule within 5 days of your current exam date, you will need to pay Prometric Testing Centre the full amount for the CPA Exam section you are rescheduling. Finally, you will not be able to reschedule your exam if it is under 24 hours before your exam time; you will need to register again with your State Board of Accountancy.
Fees to Prometric for Rescheduling a CPA Exam Section
Notice
Fees
30+ days
$0.00
6-29 days
$35.00
1-5 days
$83.76
Less than 24 hours
Can’t reschedule, fees forfeited
CPA Exam Retake Fee
Varies between $50 and $200
For all re-examination candidates, instead of paying the application fee, they are required to pay both the reapplication and examination fee when they register to re-take any parts of the CPA Exam. This is sometimes also called the “registration fee.” Some states will offer discounts on CPA Exam retake fees if the candidate is retaking 2 or more exams.
Here is an example of how the state of Missouri breaks down their reapplication fees:
Reapplication Fees in Missouri
4 CPA Exam sections
$124.00
3 CPA Exam sections
$108.00
2 CPA Exam sections
$92.00
1 CPA Exam sections
$71.00
Background check
Some states may require a background check, which you will have to pay for. Find out whether your state board requires this in our guide to CPA Requirements. NASBA looked at background checks from past years and found that costs to the candidate ranged from $1 – $49. This is something you’ll want to confirm directly with your state board.
CPA Exam Cancellation Fees and Refunds
Unfortunately, CPA Exam fees are not refundable if your Notice to Schedule (NTS) expires or you do not show up for your scheduled exam. There is no cancellation fee if you cancel the exam at least 30 days in advance. If you cancel the exam between 5 and 30 days, you’ll have to pay the Prometric Testing Centre a cancellation fee of $35. However, there are some exceptions to this policy for candidates with extenuating circumstances. Those circumstances include:
Visa rejections
Military deployment
Medical emergencies
Death
To see if you qualify for a partial refund or NTS extension based on hardship, contact the National Association of State Boards of Accountancy (NASBA).
Note: CPA candidates are only eligible for one NTS extension or a partial refund for an NTS for the same hardship.
CPA Ethics Exam Fee
Varies between $150 and $250
Some states require passing an ethics exam and most state boards accept the AICPA’s comprehensive ethics course and exam. This exam can generally be taken before, during or after the CPA Exam and test results are valid for a 2-year period. CPA Ethics Exam Fee can be anywhere from $150 – $250, depending on the state.
CPA Licensing Fee
Varies between $100 and $500
Once you have passed the CPA Exam and taken the ethics exam (if required!), it is time to apply for certification. Your state likely has an online application process. They may require you to submit documentation such as a signed statement from a supervisor or licensed CPA that can attest to your work or additional educational or exam records. You may have to complete an in-person interview with the board. CPA Licensing fee from $100 – $500, depending on the state.
CPE Costs
Varies between $0 and $300
After CPA licensing, most states require CPAs to complete continuing professional education (CPE) credit hours to maintain licensure. Be sure to check with your State Board of Accountancy to find out how many hours are required each year to maintain your credential.
CPA Exam cost: study and preparation
To make your US CPA journey smooth since it involves substantial investment, it is very much crucial to select your study/training partner and the CPA review material. Uplift Professionals, a premier training institute for CPA partnered with Gleim International, the reputed CPA review provider can be a judicial choice to fulfil your CPA dream.
THE SOLUTION
We were the first to create self-study CPA review materials—and we’ve spent the last 45 years perfecting them — all while keeping prices down!
Just a few of the reasons CPA candidates love us:
1. A bank of exam-quality questions and simulations that can’t be beat
2. Detailed answer explanations for powerful learning
3. A practice environment that’s just like the real exam
4. Personalized support and study experience.
The Uplift Professional-Gleim CPA Program has everything you need to pass on your first try!
Now is the time to invest in your future! The CPA designation is one of the most widely recognized certifications in the world — and with good reason! Over the lifetime of their career, CPAs are projected to make $1,000,000 more than non-CPAs. So, treat the CPA Exam costs as an investment in yourself. No matter what your goals are for becoming a CPA, remember that with hard work and dedication, it’s possible to obtain this license.
Summary
Now, after going through this article you are quite familiar with the cost involved to become a CPA US. Considering the income of a CPA, this cost will turn into an investment in your budgeting basket. You must keep in mind that the CPA certification is well worth every penny you spend because it pays for itself with dividends for the duration of your career.
Therefore, you should use this heads-up to develop a budget that accounts for all the CPA costs you may encounter. Because you’re an accountant, I hope you’ll surely be able to adequately prepare your funds once you learn all about the cost of the CPA.
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.
How Effective is CPA US without CA? Must Know Differences -Uplift Professionals
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.”
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.
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)
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
About the top CPA US Course training institute in India, Africa, and Middle East – Uplift Pro
Uplift Pro is one of the top training institutes for the US CPA, US CMA, US CIA, Enrolled Agent US, ACCA UK courses in India, Africa, and Middle East. Our team consists of seasoned professionals and entrepreneurs from IIEST, IITs, London Business School, and ULCA who have decided to provide a strong backup to young ambitious students and professionals to reach their desired career destinations in an organized way.
Uplift Pro, is an authorized partner of Gleim in India, provides you with authentic Gleim materials, updates and Live Online Interactive Classes for CPA US by internationally experienced veteran mentors. All at an Indian Cost.
