Certified Public Accountant

What is a Certified Public Accountant?

CPA stands for Certified Public Accountant. The profession of a certified public accountant is considered to be of the highest standards in the field of accountancy across the world. With India becoming a regional and a global hotspot, becoming a certified public accountant has become quite popular in India. Indian firms and companies that have their offices in the United States also require CPA professionals who are well aware of US economic laws and are well versed with the country’s financial and auditing standards.

Over the past couple of decades there are a number of multinational companies that have opened their regional headquarters and offices in India. These companies often look for professionals who have a good knowledge of the US GAAP and GAAS. There is a need for professionals who have knowledge of the US CPAs as a number of Indian companies want to get themselves listed in the various stock exchanges across the US. Hence, as a listing requirement it is important for them to have a person on board who is well-versed in the US economic laws.

Certified Public Accountants Eligibility

The certified public accountant is one of the most desirable as well as the highest paying jobs out there. The process to become a CPA is sure very lengthy but it is totally worth it. Some of the important points for CPA eligibility are mentioned below:

• Must have completed 10+2 with commerce with mathematics, economics and accounts as core subjects

• Must have completed a bachelor's degree in accountancy

India and other countries

Since CPA is recognised globally there are certain sets of rules that must be followed globally in order to be eligible to sit for the CPA exam. The United States of America considers a degree that is a minimum of four years long. Whereas, in India, most of the graduation degree courses in the field of commerce or accounting are as long as three years. Therefore, one needs to complete his or her bachelor’s and master’s in order to become a CPA.

However, it is not necessary that the master should also be in an accounting degree only but it is always better to do so. It not only adds up to the knowledge required to be a CPA but also keeps the focus straight. After completing the above-mentioned criteria, a CPA aspirant should be able to find a state that they can qualify. Once a State Board is chosen, the next step is to send their Indian transcripts and mark sheets to the foreign credential evaluation agency.

Whether the evaluation is required depends on where a CPA aspirant gets the education, and not on their nationality. For example, if they are an Indian international student who graduated from a US university, no evaluation is needed. On the other hand, if they are a US citizen studying abroad for a year, then they will need to submit an evaluation report for that year.

The evaluators will normally send the report directly to the state board. For the portion of education one may have obtained in the US, they need to arrange the transcript to be sent directly from their school to the state board.

Once all of the above-mentioned criteria are met the individual can go for the CPA exam.

Certified Public Accountants (CPA) Admissions

Certified Public Accountant is not a degree course to take admission in a college or university. But, in order to be eligible to give a CPA exam one needs to obtain a degree which is a minimum of four-years. So there is no such thing as a CPA course.

There is a 150 credit hour rule which we will explain on how to meet the 150 hour requirement.

• The other option is to pursue an undergraduate accounting degree (90 hours) and afterwards go for a masters in accounting (60 hours). Once a person has completed these two, he or she will also get 150 credit hours.

• Students also have the option of combining a bachelors degree (90 hours) with a master’s degree or MBA with specialisation in accounting (60 hours) which will help get the 150 credit hours.

• Students can also opt for an integrated five year accountancy programme which will help them to get a masters degree in accounting and the required 150 credit hours.

Here are some of the courses an individual can take admission in to become a CPA.

(a) Students can pursue B. Com + M. Com as an integrated course, the duration for which is five years. Once the student has completed the five year programme, he or she can start the application process of becoming a CPA.

(b) If an individual has B. Com + non-accounting master’s (for example. MBA), then they may need to take additional accounting courses to fulfill the minimum accounting requirements.

To determine if this is necessary, get a credential evaluation report which will tell the number of credits obtained.

(c) If a student has done B.Com + CA, then he or she will be required to gain some experience in the field of accountancy.

(d) A CPA aspirant could also go for a four-year degree or equivalent (for example. B. com + one year of master’s), one can make up for the remaining 30 credit hours with non-degree courses.

Some of the above-mentioned options in order to become a CPA will take extra time, money and effort but it is doable.

Certified Public Accountants Exams

Applying for the CPA Exam

Once an individual is done with the 150 credit hour rule, they should be able to find a state where they can qualify the CPA exam.

Once a State Board is chosen, the next step is to send the Indian transcripts and mark sheets to the foreign credential evaluation agency. Whether the evaluation is required depends on where a CPA aspirant gets the education and not their nationality.

For example, if an individual is an Indian international student graduated from a US university, no evaluation is needed. On the other hand, if they are a US citizen studying abroad for a year, then they surely need to submit an evaluation report for that year.

The evaluators will normally send the report directly to the state board. For the portion of education one may have obtained in the US, they need to arrange the transcript to be sent directly from their school to the state board.

Taking the CPA Exam

Getting the NTS: Once the individual’s application is approved, the state board will email/send out a Notice To Schedule(NTS) that allows the CPA aspirant to schedule their exam at a chosen Prometric center.

Selecting a Testing Center: An individual can register in one state and physically take the exam in another. Indian citizens and permanent residents who are in the Middle-East can write the CPA examination. However, it is important that they are aware of the restrictions regarding CPA examinations that are outside US jurisdiction.

Eligible international candidates can take the Exam at Prometric testing centers in Bahrain, Brazil, England, Germany, India, Ireland, Japan, Kuwait, Lebanon, Scotland and the United Arab Emirates (UAE). If you are a citizen or resident of India, Bhutan, Bangladesh, Myanmar, Maldives, Nepal, Sri Lanka, or the U.S., you can take the Exam in India.

Note: The early phase testing will only take place in the months of June and September of the current year.

Certified Public Accountants (CPA) Specializations

Since CPA is not a degree course but an accountancy post there are certain sets of experiences required. One can specialise in any field they wish to, they just need to comply with the 150-hour credit rule.

Experience Requirement

This is an important consideration for picking the right state before an individual can apply for the exam. This is often another bottleneck for Indian and other international candidates. A majority of the state boards take into consideration the work experience which can be properly verified.

(a) Relevance: A number of states allow the candidates who have general accounting experience, but a few states only recognise public accounting. This means in order to give the CPA exam one has to do auditing or related work in a CPA firm. This means that corporate, non-profit organisations and non-US government agencies cannot be counted, or are discounted.

(b) Proper verification: For most states, the experience must be verified by an actively licensed US CPA during the time an individual work(ed) for him/her. Some states allow “CPA equivalent”, which usually means a Canadian CA or Australian CA, but for the exact definition may vary for different boards

Certified Public Accountant Course

CPA is not a course but a professional designation therefore there are no CPA courses. But, in order to be eligible to become a CPA one must have completed the 150-hour credit rule. This can only be done if the individual obtains a minimum of four-year-long course ideally in the field of accountancy.

A CPA aspirant can complete their degree firstly in a bachelor’s course and then they can go for a master’s degree

CPA Syllabus

The certified public accountant is a 16 hour examination which is divided into four parts. These sections are designed to test the skills and knowledge that are required to become a successful CPA. The computer-based test is conducted at designated test centers in various countries and is the same for candidates from all the countries. The medium of the test is English. The questions paper consists of MCQs, simulation and written ability. Passing marks in 75 on 0-99 scale.

Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR) and Regulation (REG) are the four sections of the CPA examination.

The candidate has to complete the four-part assessment in 18 months to be eligible for a Certified Public Accountant license.

CPA Salary

The median salary for a CPA in India ₹ 8–10lakh per year. There are a lot of factors that affect the salary figures for example, which firm the individual is working for, how well he/she performed in the CPA exam and many more. For an entry-level CPA the average salary is around Rs six to eight lakhs per year. For a CPA who has experience of about four years the average salary is around eight to ten lakhs per year. For an experienced CPA who has more than eight years of experience, the salary can be anything above 12 lakhs per year and could go up to Rs. 20 lakhs per year or maybe even more.

The salary of a Certified Public Accountant depends on a number of factors such as the experience of the person, nature of the firm, and work location. As an individual gains experience in the market, the salary gradually increases. After a few years, the individual can start working on his own and be an independently working CPA.

Scope of CPA

As a CPA candidate, an individual will get the credibility to go international which means one can go and work in any part of the world. Due to wide global recognition, CPAs are hired by a number of top financial firms both in Indian and abroad. This field is a lucrative one and CPA are some of the highest-paid professionals around the world.

Being a CPA, an individual has a bigger ocean to swim in and unlocked doors to the international market There is a wide array of opportunities that openS up to an individual, once they become one of the qualified CPAs. In fact, due to the lack of CPAs in the Indian Market, most companies including and especially Big 4s hire graduates and CAs and sponsor them for CPA. So there is no dearth of work opportunities in India when it comes to auditing, taxation, financial planning and analysis and other work profiles.

Careers Opportunities after CPA

There are a number of job opportunities for those who have qualified to become a certified public accountant. There are a number of multinational companies that require a CPA, hence there is no dearth of job opportunities.