A Prelude
Embarking on the journey to become a United States Certified Public Accountant (US CPA) is a path brimming with opportunities, challenges, and transformative potential.
In a world where financial expertise is not just valued but vital, earning the title of a US CPA is akin to gaining a key to a treasure trove of professional possibilities.
Imagine standing at the pinnacle of your career, armed with a designation that speaks volumes about your expertise, dedication, and commitment.
‘The road to success is dotted with many tempting parking spaces.’ As we embark on this journey together, remember that each step towards CPA certification is a stride towards unparalleled success and recognition in the world of accounting and finance.”
(John D. Rockfeller)
Connotation of US CPA
We explore everything Graduating Students Need To Know
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.
To become qualified CPA from USA, the candidate has to appear and qualify the Uniform Certified Public Accountant Examination 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.
8 Parametric Centres 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.
“The CPA designation isn’t just a certificate; it’s a reflection of an accountant who’s met the highest standards of expertise and ethics.”
Scope of US CPA
CPAs are required in diverse fields of Financial and International Accounting. Their operations encompass these areas:
- Corporate Finance (M&A, IPO, Share & Debt Issues)
- Investment Banking
- Assurance and Attestation Services
- Internal Auditing
- Information Technology
- 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 the 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.
Indian CAs possess credible knowledge in these areas. However, they are constrained by limited geographical recognition
Preference of Indian Students for US 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.
Eligibility Criteria For Indian Students
Members of:
- Institute of Chartered Accountants of India.
- Institute of Cost and Works Accountants of India.
- 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
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.
“In the world of accounting, being a US CPA is less about numbers and more about the value you bring to them.”
Skill Sets Required by US CPAs
1. Analytical and Research Skill for Problem -Solving
Involving ability to:
- analyse, make comparison and interpretation of facts and figures
- identify and solve unstructured problems
- provide insightful consulting advice
- explore innovative solution
- conduct research and organize report
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.
5. Image processing and workflow technology.
6. Familiarity with spreadsheets, database and word processing.
7. Familiarity with accounting business and software packages.
8. High ethical standards of honesty and Integrity.
Perfect client focus to anticipate and meet changing needs of:
- Clients
- Employees
- Customers
- Marketing
10. Project Management Ability to:
- meet various deadlines
- assign priorities
- organize tasks and obligations
11. Broad Business Perspective
12. Keen business sense
13. Awareness of current events – both local and international
These skills are required to add value to the organization by making appropriate recommendations based on an understanding of company operations, policies and practices.
“The journey to becoming a CPA is rigorous, but every step is a leap towards becoming a leader in finance.”
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
Essentials of 4 Es and their Significance
The Licensed Accountants Act in the public interest. The Accounting Industry has, therefore created a professional standard to ensure that only qualified individuals receive 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 multiple 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
CPA Exam Structure is divided into 4 Sections:
- Auditing and Attestation (AUD)
- Financial Accounting and Reporting (FAR)
- Business Environment and Concepts (BEC)
- (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
Test lets Table
“Excellence in accounting isn’t just about balancing books; it’s about balancing ambition with unparalleled expertise, something every US CPA embodies.”
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
- Written Communication Skill
- Multiple Choice Question
Based on the sample case study, the candidates are required to demonstrate their accounting skills.
- 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 testlets with six task-based simulations (40%)
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-requisites for success in US CPA Exams are:
- Excellent time management skill.
- Tremendous project management skill.
- Professional insight into Accounting.
- Adequate use of knowledge and experience acquired.
Summoning these ingredients for the task on hand will definitely stand US CPA in good stead more than enough to thrive on its concomitant benefits for entire life span..
CRAFTING CPA EXAM STRATEGY: TIPS, TRICKS AND TACTICS
1. 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.
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.
- Auditory Learners
Listen to Podcasts or audiobook that explain complex ideas and aid retention.
View taped lectures.
- Hand-on Learners
Perform activities that illustrate concepts.
Attend traditional preparation classes.
Demonstrations.
“Becoming a US CPA doesn’t just open doors; it breaks down barriers and sets the stage for a career without limits.”
Advantages 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. Indispensability 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.
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.
Why Students Fail to Succeed in CPEXAMS:
Main Reasons
- 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.
In Retrospect
As we draw the curtains on our comprehensive guide to becoming a US CPA, it is crucial to reflect on the journey.. From the rigorous exam preparations to understanding the vast landscape of opportunities that await, the path to becoming a US CPA is as rewarding as it is challenging.
Remember, the US CPA is not just a certification. It is a testament to your perseverance, expertise, and professional excellence.
As Albert Einstein once said, ‘In the middle of difficulty lies opportunity.’ The challenges you face on this journey are stepping stones to a fulfilling career that can open doors globally.
Embrace the journey, for at its end lies a world of possibilities, ready for you to conquer as a Certified Public Accountant.
Choice of Right Online Coaching Institute – A Rationale
Such choice is a vital importance as it can make or break career prospectus of aspirants for the Course.
Factors to consider in this context are:
- Accreditation
- Faculty Experience
- Study Resources
- Student Support
Moreover, students should always look for:
- Flexibility
- AccessibilityAnytime
- Anywhere Convenience
- Varied Resources
Chanakya Edu-culture stands the above test of scrutiny in ample measure. It succeeds in delivery of benefits in collaboration with its franchise partner Navkar Institute, Ahmedabad established in 1997.
