Everything Graduating Students Need To Know
CONNOTATION OF US CPA?
US CPA is the highest qualification in Accountancy in the world.
It is similar to CA Qualification in India.
It commands both universal recognition and global acceptance.
US CPA provides strong knowledge base of US GAAP and IFRS. In order to become qualified CPA from USA, the candidate has to appear and qualify the Uniform Certified Public Accountant Examination which is set by the American Institute of Certified Public Accountants (AICPA).
Examination is administered by the National Association of State Boards of Accountancy ( NASBA).
CPA EXAMS NOW IN INDIA TOO
AICPA and NASBA have now decided to administer CPA Exams in India too. Hitherto Exams were administered in USA and Dubai only.
8 Prometric Centers have now been set up at:
- New Delhi
- Mumbai
- Kolkata
- Chennai
- Bengaluru
- Ahmedabad
- Trivandrum
- Hyderabad
Students who are long-term citizens of India are permitted to take Tests from: Bhutan, Bangladesh, Myanmar, Maldives Nepal, Sri Lanka and USA.
SCOPE OF US CPA
CPAs are required in diverse fields of Financial and International Accounting:
- Corporate Finance (M&A, IPO, Share & Debt Issues).
- Investment Banking.
- Assurance and Attestation Services.
- Internal Auditing.
- Information Technology (especially as applied to Accounting and Auditing).
- Management Consulting & Management Reporting.
- Financial Planning.
- Tax Preparation and Planning.
- Income Tax.
- Estate Planning Corporate Governance.
NEED FOR CPAs IN INDIA
Demand for CPAs in India has registered considerable growth in recent years.
MNCs and Big 4s in India prefer the knowledge and credibility of US CPAs for US GAAPS and IFRS. MNCs and Big 4s are always on a constant lookout for CPAs for various other compliances relating to US taxation laws. However, Indian CAs have limited geographical recognition although they possess credible knowledge.
PREFERENCE OF INDIAN STUDENTS FOR CPA
Essentially, Indian students prefer to proceed for US CPA for reasons such as:
- For shifting to USA.
- To work on international plane for US Companies or MNCs.
- To earn higher salary and designation in career progression.
A good majority of B.Com. students opt for career path of US CPA.
CPA (US) vs CA (INDIA)
ELIGIBILITY CRITERIA FOR INDIAN STUDENTS
- Members of Institute of Chartered Accountants of India.
- Members of Institute of Cost and Works Accountants of India
- Members of Institute of Company Secretaries in India.
- Master of Commerce
- MBAs
- Most Indian B.Com graduates are eligible for CPA exams.
Minimum Education Requirements for US CPA Exam and Licence are:
CPA Exam – 120 credits
CPA Licence – 150 credits
One year of University Education in India is considered equivalent to 30 Semester Credits of US Education.
Thus, B.Com student after spending 3 years gets 90 Credits (3 years* 30 Credits). If the student passes the examination with First Division, he secures 120 Credits (90+30).
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
CAREER PATHS OPEN TO CPA
- Environmental Accounting
- Forensic Accounting
- International Accounting
- Information Technology
- Academics and Research
- Tax Accounting
AN EDGE FOR US CPAs
US CPAs enjoy a clear-cut edge over other Accountants in the sense that they can:
- Prepare Audited or Review Financial Statements.
- File Report with Securities & Exchange Commission (SEC).
- Represent clients in front of International Revenue Service.
SKILLS REQUIRED BY US CPAs
1. Analytical and Research Skill for Problem -Solving
- Ability for analysis, comparison and interpretation of facts and figures.
- Ability to identify and solve unstructured problems.
- Ability to provide insightful consulting advice.
- Ability to explore innovative solutions.
- Ability to conduct research and organize reports.
2. Personal Skills
Ability to lead, motivate and empower teams to achieve concrete and measurable results in time.
3. Communication and Listening Skill.
4. Tech-Savvy to Understand Emerging Technologies.
- E-commerce, Image Processing and Workflow Technology.
- Familiarity with Spreadsheets, Database and Word Processing.
- Familiarity with Accounting Business and Presentation Software Packages.
5. High Ethical Standards of Honesty and Integrity.
6. Perfect Client Focus to Anticipate and Meet Changing Needs of:
- Clients
- Employees
- Customers
- Marketing
7. Project Management
Ability to:
- meet various deadlines
- assign priorities
- organize tasks and obligations.
8. Broad Business Perspective
- Keen business sense
- Awareness of current events – both local and international.
- Add value to the organization by making appropriate recommendations based on an understanding of:
- company operations
- policies
- practices
ATTRIBUTES OF SUCCESSFUL US CPAs
- High calibre of management and leadership profile.
- Competence for public speaking.
- Up-to date knowledge of tax.
- Business expertise.
- System knowledge and capability.
- Communication capability.
SIGNIFICANCE OF 4 Es
The Licensed Accountants Act in the public interest. The Accounting Industry has created a professional standard to ensure that only qualified individuals recieve Licensure.
The four variables that qualify a Licensed Public Accountant are 4 Es
- Education
- Experience
- Examination
- Ethics.
To obtain License after passing US CPA examination, strict compliance with 4 Es is mandatory. Rather, it is non-negotiable.
TESTING WINDOWS
- US CPA Exam is offered in mutiple Testing periods – also called Windows.
- Each window includes first two months of each quarter :
- January 1 – March 10
- April 1 – June 10
- July 1 – September 10
- October 1 – December 10
CPA EXAM STRUCTURE
is divided into 4 Sections:
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Business Environment and Concepts (BEC)
- Regulation (REG)
Essentials
- Objective pattern.
FAR / AUD / REG – 100% Objective
BEC – 85 % Objective - Passing score of 75 on each part (on a scale of 0.99)
- Global Pass Rate > 50%
- 18 months to clear from date of clearing first Exam.
- 4 testing windows.
LEVEL – WISE SKILL TESTING
TESTLETS TABLE
US CPA EXAM FORMAT
All Exams are computerized. Test questions are presented in smaller chunks, called TESTLETS.
A Testlet is composed of:
- TASK-BASED SIMULATION (TBS)
- WRITTEN COMMUNICATION SKILL
- MULTIPLE CHOICE QUESTION
TASK-BASED SIMULATION (TBS)
Based on the sample case study, the candidates are required to demonstrate their accounting skills. For Instance,
- Working in Spreadsheets
- Researching Database
- Creating or Completing Forms
- Professional Standards
- Tax Codes
Scoring is based on accuracy.
WRITTEN COMMUNICATION SKILL
The candidates are required to craft communication in the form of letters or memorandum based on the data provided.
Evaluation Parameters include:
- Proper organization and presentation of ideas.
- Presentation of supporting evidence.
- Communication in business English.
MULTIPLE CHOICE QUESTIONS
MCQs are delivered in an adaptive model. Starting with moderate difficulty to Progressively higher difficulty levels are put to test.
BREAKDOWN OF PAPER-WISE EXAM FORMAT
Auditing and Attestation (AUD)
- Time: 4 hours
- Skills Tested:
- Planning the engagement.
- Internal controls.
- Obtain and document information.
- Review engagement and evaluate information.
- Prepare communications.
- Format: Three multiple-choice testlets (60%) and one simulation testlet with seven task-based simulations (40%).
Business Environment and Concepts (BEC)
- Time: 3 hours
- Skills Tested:
- Business structure.
- Economic concepts.
- Financial management.
- Information technology.
- Planning and measurement.
- Format: Three multiple-choice testlets (85%) and one simulation testlet with three written communication tasks (15%).
Financial Accounting and Reporting (FAR)
- Time: 4 hours
- Skills Tested:
- Concepts and standards for financial statements.
- Typical items in financial statements.
- Specific types of transactions and events.
- Accounting and reporting for governmental entities.
- Accounting and reporting for non-governmental and not-for-profit organizations.
- Format: Three multiple-choice testlets (60%) and one simulation testlet with seven task-based simulations (40%).
Regulation (REG)
- Time: 3 hours
- Skills Tested:
- Ethics and professional responsibility.
- Business law.
- Federal tax procedures and accounting issues.
- Federal taxation of property transactions.
- Federal taxation – individuals.
- Federal taxation – entities.
- Format: Three multiple-choice testlets (60%) and one simulation testlet with six task-based simulations (40%).
REASONS WHY STUDENTS FAIL TO SUCCEED IN CPA EXAMS
- Social media distractions.
- Absence of structured study schedule.
- Failing to maintain calm composure and retain focus on work.
- Procrastination and non- adherence to deadlines set up for studies.
- No regular breaks during studies to break monotony and rejuvenate.
CRAFTING CPA EXAM STRATEGY: TIPS, TRICKS AND TACTICS
- Out of 18 months at your disposal, prepare a plan to complete the Course within 12 months, The balance of 6 months may be earmarked for mastering the Curriculum. Also, provide for any unforeseen interruptions.
2. Avoid cramming at any cost. It is necessary to acquire deep understanding of:
- multiple variables.
- problem-solving skills.
3. Break- up study material into weekly compartments. Take up a set of one Chapter and Review Questions per week.
4. Complete all Test Review Work one week prior to the test day.
Schedule Practice Test only in last week prior to Exams.
5. Remember, a section anticipated to be easy secures familiarity with test environment and creates self- confidence.
Similarly, tackling tough Test first removes intimidating influence from the preparation.
6. Avoid Social Media distractions at any cost and vow to concentrate of studies.
7. Schedule break – one day off per week, limiting the study to 3 hours. This will go a long way to rejuvenate and rebound.
8. Take Advantage of Resources like:
- Free Review Tests
- Tutorials
- Online Information and Literature.
TOOLS TO BOLSTER STUDY
- Visual Learners
- ability to highlight important text.
- Flashcards containing mnemonics or formulae.
2. Auditory Learners
- Listen to Podcasts or audiobook that explain complex ideas and aid retention.
- View taped lectures.
3. Hand-on Learners
- Perform activities that illustrate concepts.
- Attend traditional preparation classes.
- Demonstrations.
ADVATAGES OF US CPA QUALIFICATION
1. Prestige and Esteem
US CPAs are reckoned as Black Belt Accountants. They belong to the elite echelon of society.
Rigours of academic and technical training polish their professional skills substantially. Several years of extensive on-the-job training instil in them the virtues of Ethics and Moral character.
2. Career Progression
Coveted US CPA title secured after cracking the exam and obtaining CPA License are helpful in :
- demonstrating professional commitment.
- highlighting credentials for leadership and management positions of higher authority and responsibility.
3. Indispensibility of CPAs
As in case of Indian CAs, US CPAs too enjoy immunity from shocks of economic downturn because of indispensable role they play. Profession is, thus. RECESSION – PROOF
4.Tremendous Job Satisfaction
Being multi-talented professionals, CPAs perform a mix of highly specialized job functions;
- Auditing.
- Business and Management Consulting and Information Technology.
- Financial Planning.
- Tax Advisory Services.
Versatility of job profile creates a high and enriched sense of job satisfaction. In a way, CPAs are uniquely placed to fulfil their social responsibility.
5. Rich Compensation and Perks
CPAs qualification and License bring in their train, rich emoluments for the professional CPAs. They enjoy the potential of earning 10 to 15 percent more than their peers.
STATISTICS DON’T LIE
COURSE CONTENT OF NAVKAR’S WILEY PACKAGE
- Content with 2200 pages of Online study text.
- 6000+MCQ, 300+TBS, 40 +Written communication and 5000+knowledge checks.
- Bite-sized lessons for better understanding.
- Exam Planner.
- Diagnostic Exams.
- Performance Metrics.
- Diagnostic Exams.
- Unlimited Practice Exams.
- Companion Mobile Application.
- Online test bank with 6000 practice questions and 200 TBS.
ADDITIONAL PACKAGE OF NAVKAR INSTITUTE
- Hassle-free registration of CPA from our expert admin staffs.
- Placement support after clearing CPA in INDIA (Preparing Resume and guiding how approach companies).
- Evaluation & Exam Fees Payment Support.
- Selecting the state for giving Exams.
- Accommodation assistance in US & UAE.
- Doubt solving with a focus on individual Candidate.
- Exhaustive study material keeping in mind the course content.
- Efficient Exam System.
- Strong mentorship support by qualified faculties of Navkar.
IN RETROSPECT
Passing US CPA Exam and securing CPA License stand as an accomplishment per se. Factors influencing success rate for the Exams are:
- Familiarity with study material.
- Time span lapsed since earning Degree.
- Nature and scope for application of relevant skills in a day-to-day work.
- Total time devoted to studies.
- Level of concentration power achieved.
Essential pre-requisties for success in US CPA Exams are:
- Excellent time management skill.
- Tremendous project management skill.
- Professional insight into Accounting.
- Adequate use of knowledge and experinece accquired.
Summoning these ingredients for the task on hand will definitely stand you in good stead. Then, you thrive on its concomitant benefits all your life.
Absolutely no regret, whastsoever !!