CPA - Frequently Asked Questions
CPA (Certified Public Accountant) is a globally-recognized public accounting qualification. AICPA (American Institute of CPAs) certifies CPAs to be trusted financial advisors to help businesses, individuals and other organizations to reach their financial goals. Candidates can earn this certification as a part of Career Growth. CPA comprises 4 exam parts which can be cleared by candidates (most of whom are working professionals) within 12 months. The minimum eligibility criteria for CPA exams are university graduation. In India, CPAs have career opportunities with all of the Big 4 and most MNCs.
What is the Scope of CPA in India?
There are many US firms worldwide, and more and more accountancy related assignments are being out sourced to India . We have many US companies now in India, so the job scope is good. Companies like Deloitte, EY, Amazon, Synchrony, Invesco and so many more frequently hire in India.
Important Read: CPA- Career Alternative for Commerce Students
What Does a CPA do?
Certified Public Accountants work in a wide range of professions. You can find them in banking, financial services, government jobs, and education. However, most CPAs are employed in public accounting or corporate accounting.
What are the eligibility requirements for US CPA?
To be eligible to appear for the US CPA exam one must have 120 credits, each graduation is converted into 30 years of credits thereby adding 90 credits for 3 years, if your NAAC A, the first division you will get 30 additional credits. To apply for the license one must have 150 credits. Although certain other requirements vary by jurisdiction. Each jurisdiction has specific requirements about education, experience, and residency. Refer to your jurisdiction's application materials for additional information.
Important Read: CPA - Eligibility | Exam Pattern | Fees | Jobs
How many papers are there in the CPA?
CPA US is a 4 paper exam.- Online 50% MCQ, 50% SIMS ( Case Law based questions)
- FAR- Financial accounting and reporting-
- AUD – Audit
- BEC- Business environment
- REG- Regulation or US taxation
Exam format: MCQs, simulations, and written communications.
Exam mode: online.
The student will have access to Authoritative literature when he is answering Simulations part in all the 4 papers. Authoritative literature comprises GAAP, IRS, GAAS where a student can use it to answer, but it requires a lot of practice to locate the exact answer as it is too vast to search.
How is the CPA exam scored?
You need a score of 75 or higher to pass the CPA exam. Specifically, you must earn a 75 or higher on each of the four tests that make up the CPA exam.
How many times can you take CPA?
The AICPA does not have a limit on the number of times you may take the CPA Exam. And with a pass rate of ~50%, steep examination requirements, and regularly updating materials, many candidates will find themselves taking one or more sections multiple times on their path to the CPA certification.
I have passed all four sections. Do my credits expire?
If you are appearing for exams in any country other than the US you will have to take the license within 3 years of passing the CPA exam else your credits will lapse. If you appear for the exam in the US you have to apply for a license within 10 years.
What happens if you fail CPA exam?
If you did not pass a section of the CPA Exam, you have to wait until the next testing window to retake that section. There are four testing windows each year. The testing window is the first two months of each quarter and the first 10 days of the third month of each quarter.
Can I do CPA after completing B.Com?
B.Com gives you a total of 90 credits and to qualify for CPA exam you need 120 but there are certain states which allow you to sit for CPA exam even with 90 credits provided you sign an undertaking that you will meet the balance credits within 18 months of appearing for the first paper. Yes, you can do CPA but you need to sign an undertaking and we will help you with a bridge course to meet the balance credits. Additionally, B. Com with NAAC A- First division is also an eligibility criterion.
Are the CPA USA exams in an open book format?
No, the exam is NOT open book. You are not allowed any resources in the testing center while taking the exam.
Who Needs a CPA?
Certified Public Accountants provide a range of services across different types of organizations.
- Public accounting firms: CPAs are involved in the preparation, review, and auditing of their clients' financial statements. Their expert knowledge in the fields of accounting, taxes, and related areas helps them to fulfill this role.
- Large corporations: Big companies need the services of CPAs. In these organizations, CPAs work in accounting, internal auditing, and tax accounting. They play a crucial role in preparing the corporation's financial statements and ensuring that these adhere to the required regulatory norms.
- Small businesses: CPAs can play an important role in small companies as well. They provide financial advice and can help with the firm's accounting records. Many small businesses use CPAs to assist them with their taxes and to represent them before the IRS.
- You can also find CPAs working in government organizations and the educational sector. If you choose to work in public accounting, you could join one of the "Big 4" accounting firms – Deloitte, Price Waterhouse Coopers, Ernst & Young, or KPMG. These firms, as well as their smaller counterparts, provide accounting, auditing, tax, and consulting services. Many CPAs also opt to work in corporations and government entities. Their job could involve managerial or tax accounting, internal auditing, or financial analysis.
Does having a CPA guarantee a job?
No certification really guarantees success. You can get a CPA, but you still have to convince others that you're worth hiring. To differentiate from other CPAs, accountants that start their own firms often have a specialization. Just like a college degree, the CPA license will open doors.
What are the differences between a CFA and CPA?
Although the Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA) qualifications are both related to finance, there are significant differences between the two. A CFA's expertise is focused on the investment industry. Consequently, CFAs work as portfolio managers, investment advisors, and research analysts.
A CPA, on the other hand, is a specialist in accounting and taxes. You can find CPAs working in public accounting and the finance departments of small and large businesses.
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