In today’s global business landscape, businesses have expanded into every sector, including education, banking, agriculture, and more. As they strive for success and competitiveness, the need for professional accountants who can serve as financial advisors and manage monetary funds has become paramount.
To meet this demand, certified accounting professionals have been in high demand. If you aspire to a lucrative career in Commerce and Accountancy and want to be recognized globally, pursuing a Certified Public Accountant (CPA) course is the first step towards realizing your dreams. In this blog, we will provide you with insights into the CPA course and exam, covering all the essential details.
The full form of CPA is Certified Public Accountant, which signifies the highest level of competency in Accountancy. The CPA Exam is conducted by the American Institute of Certified Public Accountants (AICPA). In India, the Chartered Accountant designation is considered equivalent to CPA.
To become a Certified Public Accountant, students must pass all the CPA exams. The CPA course can be completed within 18 months. The CPA Exam comprises multiple-choice questions, task-based simulations, and written communication sections.
The CPA course fees can be categorized into application fees, exam fees, registration fees, ethics fees, licensing fees, etc. The total CPA course fee in India is approximately INR 2,18,000. The CPA Exam is conducted at eight Prometric test locations in India, including Bangalore, Hyderabad, Ahmedabad, Mumbai, Kolkata, New Delhi, Chennai, and Trivandrum.
Upon completion of the CPA certification, students can expect to earn an initial salary of around INR 6-7 LPA (lakh per annum), which can increase to INR 15-20 LPA with experience. Certified public accountants (CPAs) typically handle accounting, tax, reporting, and audit processes for governments, businesses, or private clients. The specific responsibilities may vary depending on their employment and area of specialization.
By pursuing the CPA course and obtaining the certification, individuals can open up various career opportunities in the field of accountancy, both domestically and internationally. The CPA designation provides a strong foundation and recognition in the accounting profession, making it a valuable credential for aspiring accounting professionals.
CPA Course Details
| Course Name | Certified Public Accountant |
| Course Level | Certificate Course |
| Duration | 18 Months |
| Admission Process | Entrance Examination |
| Top Entrance Exam | CPA Exam |
| Eligibility | Graduation or equivalent degree |
| Average Course Fees | $ 140.00 for application |
| Salary Offered | INR 7 – 9 Lakhs Per Annum |
Why Study CPA?
- A CPA certification opens the door to a variety of career opportunities in accounting. Some major areas of accounting are Audit Services, Forensic Accounting, International Accounting, Internal and External Audits, Tax and Financial Planning, Consulting Services, and Forensic Accounting.
- Chartered accountants are the most sought-after professionals in the GCC countries and other parts of the world. CPAs consistently find the best jobs anywhere in the world and earn at least 30-40% higher salaries than other accounting professionals.
- CPA is the highest level of competence in accounting worldwide. A globally recognized CPA can always find the best place to work anywhere in the world.
- Improved employment prospects: This improves the candidate’s cognitive skills in the eyes of clients and employers, increasing their chances of promotion and success at a professional level.
CPA Admission Process
- Registration for the CPA is open all year round and they can register for the exam at any time.
- Candidates taking exams at an international testing center are required to pay the exam administration fee prior to scheduling an appointment with Prometric.
- To do this, log into the NASBA CPA Candidate Account Portal and select International Management. International administrative procedures for the Indian region are now available.
CPA Eligibility
Each state has its own requirements for taking the CPA exam, although some common requirements are as follows:
- The students must have graduated or a comparable degree
- A CPA license requires 150 semester hours of college coursework.
- 1–2 years experience working for any CPA
Indian Students should have one of the following qualifications:
- They should be members of either ICAI, ICMAI, or ICSI. They can hold an MBA or M.Com degree in addition to belonging to one of these organizations.
CPA Exam
| Quarter | Core Score Dates | Core Score Reports | Disciplines Dates | Disciplines Score Reports |
|---|---|---|---|---|
| Q1 | Jan 10, 2024 – Mar 26, 2024 | May 14, 2024 -June 4, 2024 | Jan 10, 2024 – Feb 6, 2024 | Mar 26, 2024 – April 16, 2024 |
| Q2 | Apr 1, 2024 – June 25, 2024 | Aug 1, 2024 | April 20, 2024 – May 19, 2024 | June 20, 2024 |
| Q3 | Jul 1, 2024 – Sep 25, 2024 | Nov 1, 2024 | July 1, 2024 – 31, 2024 | Sep 3, 2024 |
| Q4 | Oct 1, 2024 – Dec 26, 2024 | Early Feb 2025 | Oct 1, 2024 – 31, 2024 | Dec 3, 2024 |
CPA Exam Structure
The CPA exam is divided into three parts known as testlets: multiple-choice questions (MCQ), task-based simulations, and written communication. In recent years, task-based simulations have gained significance in the exam structure. The MCQ section carries equal weightage in simulations, except for the Business Environment and Concepts (BEC) section. MCQs account for 50% of the total points, while simulations make up the remaining 50%.
The American Institute of Certified Public Accountants (AICPA) further allocates grade weights to different topics and sections within each testlet. This ensures that the exam covers a comprehensive range of accounting knowledge and skills. By including task-based simulations, the CPA exam evaluates candidates on their ability to apply theoretical concepts to real-world scenarios. This format reflects the practical nature of the profession and ensures that CPAs possess the necessary skills to excel in their roles.
| Section | AUD | BEC | FAR | REG |
|---|---|---|---|---|
| Multiple-Choice Questions (MCQs) | 50% | 50% | 50% | 50% |
| Task-Based Simulations (TBSs) | 50% | 35% | 50% | 50% |
| Written Communication Tasks | n/a | 15% | n/a | n/a |
CPA Syllabus
| Paper | Subjects |
|---|---|
| Paper I: Financial Accounting & Reporting (FAR) | Conceptual Framework, Standard Setting and Financial Reporting (25-35%) |
| Select Financial Statement Accounts (30-40%) | |
| Select Transactions (20%-30%) | |
| Select Transactions (20%-30%) | |
| Paper-2: Auditing & Attestation (AUD) | Ethics, Professional Responsibilities and General Principles (15-25%) |
| Assessing Risk and Developing a Planned Response (20-30%) | |
| Performing Further Procedures and Obtaining Evidence (30-40%) | |
| Forming Conclusions & Reporting (15-25%) | |
| Paper-3: Regulation (REG) | Ethics, Professional Responsibilities and Federal Tax Procedures (10-20%) |
| Business Law (10-20%) | |
| Federal Taxation of Property Transactions (12-22%) | |
| Federal Taxation of Individuals (15-25%) | |
| Federal Taxation of Entities (28-38%) | |
| Paper-4: Business Environment & Concepts (BEC) | Corporate Governance (17-27%) |
| Economic Concepts and Analysis (17-27%) | |
| Financial Management (11-21%) | |
| Information Technology (15-25%) | |
| Operations Management (15-25%) |
CPA Duration
To obtain the CPA certification, candidates are required to complete the four-paper assessment within an 18-month timeframe. The CPA exam consists of four sections, each lasting four hours, designed to evaluate the candidate’s skills and knowledge in various areas.
During the open testing period, candidates have the flexibility to choose the order in which they complete the sections. They can take multiple exams in the same window, but it is not permissible to retake a section that has already been attempted in the current exam window. If a candidate fails a section, they must wait until the next exam window opens to retake that particular section.
This structure ensures that candidates have ample time to prepare for each section while maintaining a balanced and comprehensive assessment of their accounting capabilities. It is essential for candidates to manage their time effectively and plan their exam strategy accordingly to successfully complete all sections within the designated timeframe.
CPA Exemptions
- Candidates for the CA/CMA Finalist who received a final examination score of 50 or higher are eligible for paper-by-paper exemption. Because they will be regarded as passing CPA Exams, certified CA/CMA members are completely excluded from this training.
- CA/CMA Intermediate students are excluded from AFAE and BRLC topics.
- Business laws and tax laws Candidates who meet the criteria for CS are exempt from exams.
- The first four exams are automatically waived for qualified Chartered Tax Practitioners, leaving them with only the final four exams to take and pass.
- Other requirements are not excused.
- ACCA Advanced diploma holders or affiliates/members must complete special exams on Indian Taxation Laws, Business Laws, and Indian GAAP before being eligible for this CPA/ CTPr Award.
CPA Course Fees
CPA course has different types of Fees like Application Fee, Examination Fee, Registration Fee, Ethics Fee, CPA Licensing Fee etc. Each of the fees ae mentioned below:
CPA Application Fee
Depending upon the state, the application fee is around $50-$200 (approx. Rs. 3,600 to Rs. 14,500)
CPA Examination Fee
Approx. $193.45 for each section (approx. Rs. 14,100)
CPA Registration Fee
Depending upon the state, one can either apply for one section at a time or can club all the sections and pay a registration fee. The Notice to schedule is valid for 6 months.
- When a candidate takes one section at a time- $63 (approx. Rs. 4,600)
- If they take two sections at a time- $81 (approx. Rs. 5,900)
- Three sections at a time- $99 (approx. Rs. 7,200)
- Four sections at a time- $177 (approx. Rs. 12,900)
CPA Ethics Fees
After completing the Uniform CPA exam, certain states require candidates to pass an ethics exam to obtain their CPA license. The ethics exam typically incurs fees ranging from $150 to $200 (approximately Rs. 10,900 to Rs. 14,500). This additional examination focuses on professional ethics and ensures that candidates possess the necessary ethical framework to uphold the standards of the accounting profession. Clearing the ethics exam is a crucial step towards obtaining the CPA license and demonstrates a commitment to ethical conduct in the practice of accounting.
CPA Licensing Fees
Once eligible, candidates must pay an annual fee to obtain a CPA license, which typically ranges from approximately $50 to $500, depending on the state. This fee is required to maintain the active status of the CPA license and covers administrative costs associated with regulatory oversight and professional development programs. By paying the annual fee, CPAs demonstrate their commitment to upholding the standards and ethical responsibilities of the accounting profession.
It is important for licensed CPAs to stay informed about the specific requirements and fee structures set by their respective state boards to ensure compliance and the continued practice of accounting.
Continuing Professional Education (CPE) for CPA Exam
To ensure that accountants stay updated with industry standards and the latest information, many states require them to complete 40 hours of continuing professional education (CPE) per year. The cost of obtaining these CPE credits can vary and range from approximately $800 to $5000 per year.
This investment covers the expenses associated with attending workshops, seminars, webinars, and other educational activities that help accountants enhance their knowledge and skills. By participating in ongoing education, accountants demonstrate their commitment to professional development and staying current in their field, ultimately providing high-quality services to their clients or employers.
Difference Between CA & CPA Course
Chartered Accountants (CAs) are highly skilled professionals who play a crucial role in various aspects of the accounting field. Their expertise and adherence to professional standards make them in high demand. Companies rely on CAs to possess extensive knowledge of financial laws and regulations and effectively manage financial matters while ensuring compliance and minimizing legal risks.
The CA course, offered by accredited Chartered Accountancy bodies worldwide, provides students with comprehensive knowledge in areas such as Financial Management, Auditing, Fiscal Laws, Regulations, Strategic Financial Management, and Ethics.
On the other hand, Certified Public Accountants (CPAs) are recognized and accredited financial advisors in English-speaking countries. CPAs can pursue rewarding careers in Public Accounting and Industry Accounting, both of which involve assisting organizations in achieving their financial objectives. These roles require expertise in financial management, tax compliance, auditing, and other essential accounting functions. CPAs provide valuable insights and guidance to businesses, contributing to their financial success and sustainability.
Career Prospects & Scope after CPA Course
If you have a passion for accounting and want to take your skills to new heights, enrolling in a CPA course is an excellent choice. A CPA certification equips you with knowledge comparable to that of a Chartered Accountant (CA), and it also provides additional expertise in areas such as International Financial Reporting Standards (IFRS), Generally Accepted Accounting Principles (GAAP), and Generally Accepted Accounting Standards (GAAS).
In addition to financial planning, advising, and auditing, there are numerous highly sought-after career fields for CPA-certified professionals. Some of these include:
International Accounting
After successfully completing the CPA course and examination, accounting professionals are equipped to handle a wide range of responsibilities in the realm of international business. They are adept at managing international business transactions, navigating complex foreign trade agreements, and addressing global economic and financial issues.
With their comprehensive knowledge of accounting principles and regulations, CPAs play a crucial role in ensuring compliance with international standards and facilitating smooth operations in the global business landscape. Their expertise enables them to provide valuable insights and guidance to organizations engaging in international trade and helps them navigate the complexities of the global marketplace.
Forensic Accounting
CPAs play a crucial role in cases involving economic and monetary crimes such as bribery, money laundering, and fraud. They work closely with organizations, leveraging their expert knowledge in accounting to provide valuable insights and analysis. In legal proceedings, CPAs serve as expert witnesses, presenting their findings and opinions in the court of law.
Their expertise in financial matters and understanding of accounting principles make them highly credible sources of information, helping to uncover and address financial misconduct. CPAs contribute to the pursuit of justice by offering their specialized skills and knowledge to support investigations and legal proceedings in these complex cases.
Information Technology
In the era of Information Technology, certified accounting professionals have diverse career opportunities beyond traditional roles. They can excel as Information Systems Auditors, responsible for evaluating and ensuring the integrity and security of financial systems and data. Additionally, they can contribute as Software Revenue Managers, overseeing financial aspects of software development projects and optimizing revenue streams. These roles are not limited to the private or corporate sector; government agencies also require the expertise of CPAs in managing financial systems and ensuring compliance with regulations.
The intersection of accounting and technology offers exciting avenues for certified accounting professionals to contribute their skills and knowledge in a rapidly evolving digital landscape.
Tax Accounting
Due to the high demand for taxation specialists in both the public and private sectors, pursuing a CPA course is an excellent way to gain comprehensive knowledge in the field of taxation. CPA professionals are well-equipped to work as tax specialists, handling intricate tax matters and providing expert advice. They can also pursue roles as international tax managers, assisting organizations in navigating complex international tax regulations. Additionally, CPA professionals can specialize as sales tax specialists, ensuring compliance with sales tax laws and optimizing tax strategies.
These roles span across various sectors of the economy, offering diverse opportunities for CPA-certified individuals to contribute their expertise in the field of taxation.
Academia
For individuals who have a passion for imparting knowledge, pursuing a career in academia after completing the CPA course can be a fulfilling option. CPA professionals can serve as full-time or part-time faculty members in educational institutes, teaching a range of commercial subjects such as Accounting and Finance, Taxation, Business Ethics, Business Applications, Auditing, and more. By sharing their expertise and experience, CPAs can contribute to shaping the future generation of accounting professionals.
This career path allows CPAs to engage in research, curriculum development, and mentorship, while also staying connected to the latest advancements in the accounting field. Academia offers a platform for CPAs to inspire and educate aspiring professionals, making a significant impact on the accounting community.
CPA Salary
The salary range for entry-level CPAs with less than 1 year of experience is approximately ₹6-8 lakhs. As CPAs gain more experience, their earning potential increases. CPAs with 1-4 years of experience can expect to earn around ₹8-12 lakhs. With 5-9 years of experience, CPAs can earn ₹1,001,009 or more. It’s important to note that salary figures can vary depending on factors such as the industry, location, and size of the organization, as well as individual qualifications and skills. CPAs who specialize in high-demand areas such as tax or audit may also command higher salaries.
Why Pursue a CPA Course?
The ones who still have their minds lingering upon the confusion of whether to pursue a CPA course or not, we have some valid and convincing reasons as to why should you definitely go for a CPA course.
- CPA course is internationally recognized and considered to be of the highest qualification when it comes to the field of Finance and Accounting.
- Through the CPA course, the students will be exposed to a number of subjects, helping them build an international perspective in areas of Accountancy like Auditing, Taxation, International Finance, etc.
- Where domestic certification might limit you from getting a job in just one country, pursuing a CPA course makes you a global citizen and increase your chances of receiving career opportunities from global organizations.
- With the coming up of more and more businesses and start-ups, the demand for a CPA is always throughout the year.
- Not to forget, the pay package or remuneration of a CPA is undeniably high.
- Professionals with practical knowledge and expertise in accounting and finance are sought after in India as per international standards.
- A Certified Public Accountant is a financial and accounting professional certified by the American Institute of Certified Public Accountants (AICPA).
- Professional CPA courses are intended for training and further education customary in the industry. Education focuses on career growth and skills development.
- Many can enroll in higher studies to gain additional skills in other areas. This is where CPA courses can help improve your skills and align with industry expectations.
- The US CPA program provides an in-depth understanding of US GAAP, US taxation, and US audits.
See Also:
| How to become a financial manager? | How to become a Chief Financial Officer? |
CPA Jobs
| Job Profiles | Salary |
|---|---|
| Accounting Assistant | INR 3 LPA |
| Accounts Payable Clerk | INR 2.4 LPA to 8 LPA |
| Bookkeeper | INR 13 LPA |
| Management Trainee | INR 1.8 LPA to INR 16.0 LPA |
| Payroll Clerk | INR 3 LPA |
FAQs
What does CPA stand for?
CPA stands for Certified Public Accountant.
Who conducts the CPA Exam?
The CPA Exam is conducted by the American Institute of Certified Public Accountants (AICPA).
Is the Chartered Accountant designation equivalent to CPA?
Yes, in India, the Chartered Accountant designation is considered equivalent to CPA.
How long does it take to complete the CPA course?
The CPA course can be completed within 18 months.
What are the different types of exams in the CPA Exam?
The CPA Exam consists of multiple-choice questions, task-based simulations, and written communication sections.
What are the fees associated with the CPA course?
The fees for the CPA course include application fees, exam fees, registration fees, ethics fees, and licensing fees. The total CPA course fee in India is approximately INR 2,18,000.
Where is the CPA Exam conducted in India?
The CPA Exam is conducted at eight Prometric test locations in India, including Bangalore, Hyderabad, Ahmedabad, Mumbai, Kolkata, New Delhi, Chennai, and Trivandrum.
What is the starting salary for CPA professionals in India?
After completion of the CPA certification, professionals can expect a starting salary of around INR 6-7 LPA (lakh per annum), which can increase to INR 15-20 LPA with experience.
What are the job responsibilities of CPAs?
Certified public accountants (CPAs) typically handle accounting, tax, reporting, and audit processes for governments, businesses, or private clients. Their specific responsibilities may vary based on their employment and area of specialization.
Conclusion
Pursuing a Certified Public Accountant (CPA) course can be a rewarding and lucrative career choice in the field of Commerce and Accountancy. The CPA certification, equivalent to the Chartered Accountant designation in India, signifies the highest level of competency in Accountancy. By passing the CPA exams conducted by the American Institute of Certified Public Accountants (AICPA), individuals can become certified professionals who are recognized globally. The CPA course can be completed within 18 months and includes multiple-choice questions, task-based simulations, and written communication sections.
While the CPA course fees encompass various categories such as application fees, exam fees, registration fees, ethics fees, and licensing fees, the investment is worthwhile considering the potential career growth and opportunities it offers. The CPA Exam is conducted at several test locations in India, providing accessibility to aspiring candidates. Upon obtaining the CPA certification, professionals can expect competitive starting salaries, which tend to increase with experience. CPAs play a crucial role in handling accounting, tax, reporting, and audit processes for governments, businesses, or private clients, depending on their area of specialization.
