As a student of accounting, the term CPA is likely familiar to you. Your professors and fellow students may have discussed how obtaining a CPA license can lead to a wider range of career opportunities. The benefits of becoming a CPA are numerous, including a higher earning potential and the potential for travel. If you're considering this career path, here is all the information you need to know.
What is a CPA Course?
The CPA (Certified Public Accountant) course is a professional certification program in the field of accounting and finance, specifically in the United States. It is considered the highest level of achievement in this field and is recognized globally. Being a CPA demonstrates a high level of expertise and professionalism in the accounting and finance fields, making it a valuable credential for career advancement.
Eligibility for the CPA Exam
The American Institute of Certified Public Accountants (AICPA) conducts the CPA exam. However, the CPA license is considered the highest professional degree in accounting or finance in the United States. This fact changes the eligibility for Indian students to pursue the CPA exam, as a bachelor's degree in India is equivalent to 90 credits, while in the US it is equivalent to 120 credits, which is the required number of credits for appearing in the CPA exam. Thus, an Indian student needs to bridge the gap between the number of credits required to appear for the CPA exam. Each state board has different qualification requirements that an aspirant needs to meet in order to take the CPA exam in the US.
Passing Requirements
In order to pass the CPA exam, candidates must earn a minimum score of 75 on each section of the exam. The scoring process is based on a weighted system that takes into account the difficulty level of each question, with harder questions being worth more points.
Preparing for the CPA exam can be a challenging and time-consuming process, but it can ultimately lead to career growth and advancement in the accounting and finance industries. By understanding the course details, examination format, and passing requirements for the CPA exam, candidates can set themselves up for success in their pursuit of becoming a Certified Public Accountant.
CPA Exam Syllabus and Subjects
The CPA (Certified Public Accountant) exam consists of four sections, and it is important to brush up on the basic concepts related to accounting or finance to perform well on the exam. The four sections of the CPA exam are:
- Financial Accounting and Reporting (FAR) (90 questions)
- Auditing and Attestation (AUD) (90 questions)
- Business Environment and Concepts (BEC) (72 questions)
- Regulation (REG) (72 questions)
Each section covers different concepts, so it is important to prepare well for each one to perform well on the exam.
How can one get an exemption in CPA?
To qualify for an exemption in the Certified Public Accountant (CPA) exam, you must meet the following requirements set by the state board of accountancy where you plan to obtain your license:
- Education: Most states require that candidates hold a bachelor's degree from an accredited college or university. Some states may have additional education requirements such as specific coursework or a certain number of semester hours.
- Work Experience: Many states require candidates to have a certain amount of professional experience in the field of accounting. The number of years and type of experience required can vary by state.
- Ethics Exam: Candidates are generally required to pass an ethics exam, which is intended to ensure that they possess the integrity and moral character necessary to perform the duties of a CPA.
- Professional Designations: Individuals holding certain professional designations, such as Chartered Accountant (CA) or Certified Management Accountant (CMA), may also be eligible for exemptions from the CPA exam.
It is important to thoroughly research and understand the specific rules and regulations of the state board of accountancy where you plan to become licensed. This can be done by visiting the website of the board or contacting them directly for more information.
Conclusion
Becoming a Certified Public Accountant (CPA) involves completing a rigorous certification process that requires education, experience, and passing a comprehensive exam. The course details for the CPA exam include different courses, examination format and schedule, and passing requirements.
Some of the benefits of pursuing a CPA include increased job opportunities, higher salary potential, and professional growth and development. The CPA credential is highly respected in the accounting and finance industries, and can provide a competitive edge in the job market.
In conclusion, we recommend that candidates who are interested in pursuing a CPA credential should carefully consider their options when it comes to CPA courses, and choose a course that is best suited to their needs and circumstances. By achieving CPA certification, candidates can open up new career opportunities, enhance their professional standing, and take their accounting and finance careers to the next level.
