Roadmap to CPA USA in India.
What is CPA USA
As per Wikipedia \"Certified Public Accountant (CPA) is the title of qualified accountants in numerous countries in the English-speaking world. In the United States, the CPA USA is a license to provide accounting services to the public. It is awarded by each of the 50 states for practice in that state. Additionally, almost every state (49 out of 50) has passed mobility laws to allow CPA\'s from other states to practice in their state. In simple words, it’s the US equivalent of the Indian CA qualification of ICAI( Institute of Chartered Accountants of India)
The exam is administered by the American Institute of Certified Public Accountants (AICPA) and is considered to be the top accounting credential in the world.
CPA USA eligibility for Indian CA, Bcoms, MBA/ :
AICPA, the governing body of the US CPA qualification, mandates having a total of 120 credit points in order to appear for the CPA exam. The CPA USA eligibility of Indian students is as follows:
The eligibility for CPA certification requires 120 credits. Every year of university education in India is equivalent to 30-semester credits of US education. ·
Using 1 year = 30 credits,
- B.Com = 3 years x 30 credits = 90 credits
- Exception: If B.Com is cleared in 1st division from a NAAC ‘A’ university, you are entitled to 30 additional credits, thereby increasing the credits to 120, however now many state boards in the US are not following this rule.
- Assuming you have only 90 credits (as per your graduation) then, you can pursue either M.Com or MBA from distance for attaining the balance credit points but you can still sit for the CPA exam
- However, a professional qualification like CA/CS/CWA is counted as 2 years of university education, thus adding 60 credits more to your existing 90 credit
B.Com+ M.com/ MBA= 90/120 credits + 60 credits = 150/180 credits
· B.Com+ CA/CS/CWA = 90/120 credits + 60 credits = 150/180 credits.
CPA USA Duration:
9-12 months with exams conducted every month.
Time limit to pass CPA course:
18 months from the date of receipt of score of first exam.
CPA USA Exam/ CPA USA syllabus:
4 Sections (FAR, REG, BEC, AUD), No Levels like other accountancy profession, Single Level only.
50% Objective, 50% Simulation (Essay), Computerized exam with Open book system/ Authoritative literature in Simulations.
License/ Certificate of Practice:
Work experience in Accounting firm or finance - 1 Year only.
CPA USA fees structure/ CPA USA fees:
The overall cost of CPA USA in India including exam fees ranges from 3.75- 4 lakhs INR as the CPA exam in India are currently not held and one need to go to Dubai or US to write the exam thus adding the accommodation and travelling cost.
The CPA course tests more than financial reporting (IFRS) and U.S GAAP knowledge. It also tests your knowledge of general business practices and covers subjects including total quality management, economics and contract law. When you pass the CPA course you’re demonstrating that you have a firm grasp of the business world to everyone that you work with. You will also be able to have technical conversations with your peers in finance, operations, sales & marketing and general administration because you have the business acumen of a CPA
CPA\'s can look to specialize in various areas due to their in-depth knowledge on US GAAP and FASB pronouncements, due to their in-depth knowledge they are able to move beyond their routine journal entries, reconciliation jobs etc to perform in-depth analysis of financial statements and can provide advisory services, Auditing services(Assurance), IT services (Especially in functional consultant profiles like SAP FICO and Oracle Fusion), Taxation related matters ( decision making ), Forensic accounting, Compliance related matters like Environment audit etc.
Who can help to reach it ?
Institutes like Simandhar education, Wiley, Gleim, Edu pristine etc are assisting the students to complete the certification and currently, Simandhar education is providing the students with live classes partnering up with Becker professional education USA( Becker is the pioneer in CPA holding 95% pass percentage ). Simandhar Education provides CPA USA training in Hyderabad, Bangalore, Mumbai, Delhi, Gurgaon etc via both online and offline classes. CPA institute in Hyderabad, Bangalore and Mumbai who are providing live classes are very limited. CPA in Hyderabad, Bangalore, Gurgaon and Mumbai are considered to be the most active participants for CPA course and licensing.
CPA job opportunities in India / CPA USA salary in India:
Big 4s (Deloitte, EY, PWC and KPMG) are always looking for CPA candidates for their global delivery services and sponsor too for CPA course, the salary of fresher CPA in India is currently 7.5- 8.5 lakhs per annum.
Indian MNC\'s with US SEC-Registrants have a requirement for both external and internal reporting ( Tata steel, Wells Fargo, ICICI, HDFC, Tata Motors, Virtusa, Qualcomm, Synchrony financial, Capgemini, Accenture, Infosys etc ).
CPA USA have to reverse MOUs with Canada (Canadian CPA), Australia (Australia CPA), UK (AICPA- CIMA=CGMA) thus enabling CPAs to be recognized all over the world. CPA USA for Indian CA is also equally advantageous as due to non-MOU between two powerful bodies the job opportunities are also more for CPA in India due to the US GAAP and US tax knowledge. CPA USA and ACCA have no MOU and thus there is no exemption nor any credits can be availed by passing ACCA exam to pursue CPA. CPA USA and CIMA also have an MOU whereby CGMA qualification can be obtained, the process needs to be checked specifically by contacting both the professional bodies.