A Comprehensive Guide for Aspiring Accountants

A CPA is an international certification in accounting and finance. It attests to experience in taxation, auditing, financial reporting, and business regulations. A four-part exam, educational requirements, and experience are prerequisites for becoming a US CPA. After completing the exam, completing the education requirements, and getting work experience, the door to careers in public accounting, corporate finance, and consulting is opened. The demand for CPAs is very high worldwide, from India to the US, Canada, and Australia. This guide covers the US CPA exam, fees, eligibility, salary, and career growth.

What is CPA?

A CPA, or Certified Public Accountant, is an international accounting certification accredited by the American Institute of Certified Public Accountants. It is one of the most prestigious credentials for accounting and finance professionals, validating knowledge in auditing, taxation, financial analysis, and regulatory compliance.

A US CPA is achieved after clearing a rigorous four-part exam and fulfilling the education and experience requirements. The professional degree of a CPA opens many career doors in public accounting, corporate finance, and international business. This certification is in high demand and holds a strong reputation in India, Canada, Australia, the UAE, and Singapore.

CPA Fees

The fees for the CPA course are composed of several costs that candidates must budget ahead of time. Indian students must budget for fees regarding exams, application charges, study materials, and international testing expenses. These fees are necessary to complete the exam process and attain official recognition as a professionally qualified CPA.

1. Exam Fees: The CPA exam includes four sections, each with a fee. Indian students must pay between ₹16,000 and ₹20,000 for one section. This means the total cost for all four sections is approximately ₹64,000 to ₹80,000. These fees are mandatory and cover the cost of appearing for the exam.
2. Application Fees: Students must apply through a U.S. state board to take the CPA exam. Application fees typically range between ₹8,000 to ₹12,000. The exact fee depends on the state board you choose.
3. Course Material Costs: US CPA preparation requires high-quality study materials or review courses. These courses generally cost between ₹50,000 to ₹1,50,000.
4. International Testing Fees: Indian students who take the CPA exam at an international test centre must pay an additional fee. This fee is between ₹80,000 and ₹1,20,000. It is required for exams taken outside the U.S., such as at centres in the UAE.
5. Evaluation Fees: Indian students must evaluate their academic credentials according to U.S. standards. The evaluation process costs between ₹8,000 and ₹24,000. It is a one-time payment and is mandatory to verify that your degree aligns with the eligibility criteria set by U.S. state boards.
6. Licensing Fees: You must apply for a US CPA license after clearing the CPA exam. Licensing fees are between ₹4,000 and ₹40,000. This fee will ensure that you are officially recognized as a CPA and will be able to practice professionally.

CPA Course Duration

The CPA course duration is usually completed within 18-24 months for most candidates. Individual preparation and exam schedules determine this. Candidates can prepare for the four sections using a structured approach, covering auditing, financial accounting, business concepts, and regulation.

• Preparation Time: On average, candidates take 18-24 months or 3-4 years to prepare for and complete all four CPA exam sections.
• Exam Structure: The CPA exam has four sections:
  1. Auditing and Attestation (AUD)
  2. Business Environment and Concepts (BEC)
  3. Financial Accounting and Reporting (FAR)
  4. Regulation (REG)

CPA Eligibility

To qualify for the CPA exam, Indian students need to meet specific CPA eligibility criteria. The primary academic requirement is a Bachelor’s degree in commerce or accounting. Students must also accumulate 120-150 credit hours in accounting or related subjects, as evaluated by U.S. education standards. For Indian students, CA qualification usually meets this credit requirement so that they become eligible to sit for the exam.

Academic qualifications are apart, and U.S. states demand professional experience. Normally, this is achieved under the supervision of a licensed CPA. This would guarantee that, upon completion, education and experience have been fulfilled with the requisite skills and know-how to proceed with a CPA career.

CPA Syllabus

The CPA Syllabus deals with accounting, auditing, and taxation. It tests the candidate’s expertise through four important sections covering much-needed topics such as ethics, corporate governance, financial reporting, and federal taxation.

1. Auditing and Attestation (AUD): Ethics, professional responsibilities, and general principles. Risk assessment and planning. Performing audit procedures. Reporting.
2. Business Environment and Concepts (BEC): Corporate governance. Economic concepts and analysis. Financial management. IT and operations management.
3. Financial Accounting and Reporting (FAR): U.S. GAAP framework. Financial statement presentation. Accounting for governmental and not-for-profit entities. Measurement, recognition, and disclosure of business transactions.
4. Regulation (REG): Federal taxation. Business law. Ethics and professional responsibilities.

CPA Exam Pattern

CPA is computer-based, four-part, and 16 hours long. This test will ascertain knowledge and competencies, eventually leading to the title of Certified Public Accountant. The test centres are scattered globally; however, the format remains the same for all candidates.

It’s in English, with MCQs, task-based simulations, and written communication tasks. They must score at least 75 out of a range of 0–99. They must finish all four parts within 18 months to obtain the CPA license.

The CPA exam accepts registrations throughout the year, allowing candidates to sit for the examination anytime. Here is the general format for the exam Indian CPA aspirants can expect to take:

CPA Exam Structure

The CPA exam has three sections: written communication, task-based simulations, and MCQs. Task-based simulations greatly contribute to the testing of a candidate’s skills.

Except for the BEC section, MCQs and simulations have equal weightage. For most sections, 50% marks are given for MCQs, and the remaining 50% marks are given for simulations. The BEC section has written communication tasks of 15% of the marks.

CPA Salary in India

The salary of CPAs in India is extremely competitive because the world needs the expertise of such professionals. In entry-level positions, CPAs can expect between ₹6 to ₹10 LPA. Generally, these professionals work as financial analysts, auditors, or tax consultants. Such job profiles are the best for training and developing knowledge in finance and accountancy.

CPAs at higher experience levels earn highly as well. Controller or senior audit positions for a multinational corporation, mid-level CPAs would range between ₹10 to ₹20 LPA. More experience adds up to more dollars; the experience CPAs get could earn anywhere in the bracket of ₹20 to ₹35 LPA. It includes leadership jobs in top companies: CFO, forensic accountant, and strategy consultant; Big Four firms do, too.

What Does a CPA Do?

A CPA performs several financial and accounting tasks important for any business enterprise, governmental agency, or personal individual. Much work varies depending on the business industry and job function.

Accountants play a major role in keeping the books of account and providing an accurate outlook for a company. They undertake audits to authenticate a firm’s financial statement and ensure conformity to accounting regulations like GAAP and international norms. CPAs also help a firm or a person in taxation by preparing the tax return form if it does not violate government laws. Their financial advice allows companies to make the right investment decisions, handle mergers, and increase profits.

Many are specialised in forensic accounting: they detect financial fraud and investigate crimes. They work closely with law enforcement and companies to uncover fraud and protect assets. CPAs manage corporate accounting, overseeing financial reports, budgeting, and risk assessments. They set up proper, tight internal controls that prevent financial mismanagement and keep businesses running smoothly and securely financially.

How to Become a CPA in India?

Become a CPA in India by fulfilling education requirements, passing the CPA exam, gaining experience, and getting a license. The process is challenging but opens up worldwide career opportunities in accounting, auditing, and finance. Follow these steps to obtain a CPA certification.

1. Check Eligibility Requirements: One needs to pass the eligibility requirements set by the AICPA to sit for the CPA examination. For that, one must hold a bachelor’s degree with a major in commerce, accounting, or finance. The CPA exam has 150 hours of credit education. In India, a B.Com (3 years) is insufficient; a candidate needs an additional qualification such as an M.Com, MBA, or CA. Some state boards require work experience to certify CPA licensing, but not before taking the exam.
2. Get Academic Transcripts Evaluated: As a US-based certification, CPA aspirants from India must have their educational qualifications evaluated by a registered evaluation service, NASBA (National Association of State Boards of Accountancy). Obtain credential evaluation from NASBA or other state-specific evaluation services. Furnish original copies of the official transcripts from the university or institution. Obtain the confirmation after verifying that the credit hours satisfy the needs of the chosen US state board.
3. Select a US State Board and Apply for the CPA Exam: The CPA is a state-level certification. Therefore, the candidate must select a US state board for which he meets the eligibility criteria. Check the official website of the state board for specific eligibility criteria and the application process. Apply for the CPA exam through NASBA and pay the fees.
4. Schedule and take the CPA Exam: The CPA exam consists of four sections, namely Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). Schedule your exam at any Prometric Testing Center in India or abroad. Prepare for the CPA exam by using study materials and review courses. Pass all four sections within 18 months to meet the requirements for the exam.
5. Gain Work Experience: Most states prefer Work Experience Work experience in the US. It must be for one to two years under a licensed CPA. Work experience could include accounting, auditing, taxation, or financial management. Some states accept work experience gained in India, while others require it to be completed in the United States.
6. Apply for CPA License: Once you have passed the CPA exam and acquired experience, apply for a CPA license through the selected state board. Some states also require one to pass the Ethics Exam before they grant the permit, after which one gets licensed to use the CPA designation.
7. Maintain Certification as a CPA: If an individual is certified as a CPA, then that state will expect them to have annual completion of Continuing Professional Education, or CPE. The number of hours of CPE varies by state but generally ranges annually from 40 to 80 hours.

Conclusion

Becoming a Certified Public Accountant (CPA) leads to many career opportunities in accounting, auditing, and finance. The path requires meeting educational criteria, passing the CPA exam, and working experience. Plutus Education offers expert assistance in helping the student prepare accordingly and understand what it takes to become a CPA. CPAs receive high wages and work for top global companies, making the certification very worth it. If you want a strong career in accounting, it is a great choice to consider getting a CPA. Learn more at Plutus Education today.