US CPA Eligibility in India - Step-by-Step Guide

CPA stands for Certified Public Accountant. A title synonymous with qualified accountants in many countries like the USA, Asia, and Europe, CPA is generally deemed equal to the qualifications of Chartered Accountants. It is among the most established and well-known qualifications in the field of accounting. Apart from being globally recognised, candidates with a CPA certification get the flexibility of working in private and public accounting sectors. To gain CPA eligibility, individuals must complete certification courses administered and conducted by the American Institute of Certified Public Accountants (AICPA).

The CPA certification opens the way for countless opportunities worldwide, including India. These include positions of the top-level auditors in MNCs and the Big 4s, including firms like KPMG, Deloitte, Accenture, Amazon, and Wipro, among many others. This is especially beneficial as these firms are generally looking for individuals with CPA eligibility to be their partners when becoming a US SEC (Securities and Exchange Commission) registrant. 

Furthermore, candidates with CPA certification can also work with US MNC subsidiaries operating in India. In this position, the work is mainly concerned with the checks of compliance and regulations through financial reports and documents in relation to the US GAAP (Generally Accepted Accounting Principles). Read on to learn more about CPA eligibility, related courses, exams, etc.

Key Takeaways

• US CPA  in India

• CPA Course Structure

• US CPA Eligibility Criteria

CPA Course Structure

The CPA course aims to provide the students with a thorough education in finance or accounting through separate modules for the three main and one optional CPA paper. The main courses include Financial Accounting & Reporting (FAR), Regulation (REG), Auditing & Attestation (AUD), and for the 4rth subject, students can choose any one among Business Analysis and Reporting (BAR), Information System and Controls (ICS), and Tax Compliance and Planning (TCP).

Through this course, the students are taught the required skills that will help them rise in various field roles, including, but not limited to, professional accountants working in business, finance, public accounting, and various other diverse sectors. 

Financial Accounting & Reporting (FAR)

The Financial Accounting & Reporting course helps individuals develop the required skills to prepare and analyse financial statements, maintain compliance with accounting standards, and report financial information.

Auditing and Assurance (AUD)

The Auditing and Assurance section of the course teaches students how to conduct independent financial statement audits, offer reviews, compilations, and other assurance services, and assess compliance and accuracy.

Regulation (REG)

The Regulation section of the course covers topics like Business law, ethics, and federal tax procedures, including federal taxation of property transactions 1, federal taxation of individuals and entities, and professional responsibilities.

Business Analysis and Reporting (BAR)

The Business Analysis and Reporting portion covers data analysis, focusing on financial analysis, technical accounting, state and local government accounting, risk management, and reporting requirements.

Information Systems and Controls (ICS)

The module concerned with Information Systems and Controls emphasises data governance, internal control testing, business process assurance or advisory services, information system security and IT.

Tax Compliance and Planning (TCP)

This course module deals with issues related to personal financial planning, tax compliance of the entity or the individual and overall planning on the entity level. Through it, the candidates’ knowledge about identifying taxable and nontaxable transactions, tax implications of liquidations and business formations, multi-jurisdictional taxation and the analysis of tax alternatives for wealth maximisation are enhanced.

The CPA course includes 300 training hours, divided into four semesters. Each semester, the candidates are offered 60 hours of training, blended training support, AICPA study materials, NSA CPA videos, and access to the online test bank.

US CPA Eligibility Criteria

A candidate appearing for the CPA USA exam must complete 150 college credit hours. This CPA eligibility has a prerequisite of a bachelor’s degree in any given discipline. As the B.Com stream in India is generally considered to be the most suitable with respect to the field of work, the specifications for the exam and licence eligibility under this particular stream include three prominent cases. 

• The first case of CPA eligibility includes three years of BCom with 30 credits each year with an additional 90 credits. 
• The second case of CPA eligibility includes BCom along with MCom or MBA, with 90 credits in BCom and 60 in MBA or MCom, giving an ultimate 150 credits.
• The third case of CPA eligibility includes BCom along with CA or CS, with 90 credits in BCom and 60 Credits in CA or CS, leading to 150 total credits. 

Furthermore, accounting or related work experience of at least one to two years is preferred. Also, the fulfilment of additional requirements concerning regulation and licensing is required. These requirements are set by the Board of Accountancy of the particular jurisdiction under which the operation is being conducted. Once obtained, the CPA licence must be maintained through an examination known as the CPE, the Continuous Professional Education exam. 

CPA Exam Structure

Once they have the CPA eligibility, candidates can start planning their strategies for appearing for the CPA exam. Knowing the breakdown and weightage of the papers comes in handy here. The CPA Exam consists of four sections. 

FAR: The FAR, that is, Paper 1, includes Financial Accounting and Reporting. The main areas of study within this include Liabilities, NEP Accounting & Governmental Accounting, Conceptual Framework & Financial Reporting, Disclosure, Assets & Related Topics, Investments, Income Taxes and a Statement of Cash flows. This exam is 50% through MCQs, 35% through SIM and 15% through essay writing. A minimum of 75% percentile is required to clear this paper.

AUD: The AUD, that is, Paper 2, mainly includes working on Auditing & Attestation through Risk, Engagement Quality, Acceptance Planning & Control, Integrated Audits, Compliance & Government Audits, and Attestation Engagement. 

REG: The REG, that is, Paper 3, includes various taxing arenas of work mainly concerned with Regulation, including Property Taxation, Individual Federal Taxation, Entity Taxation, Business Law, Federal Tax Procedures, and Professional Responsibilities. The REG is divided into MCQs and TBS. A score of 75 is the requisite for qualification.

Discipline Section: The fourth paper is optional, with candidates choosing from three options. These include BAR, that is, Business Analysis and Reporting; ICS, that is, Information Systems and Controls; and TCP, that is, Tax Compliance and Planning. This way, the total breakdown of the exam for students is manifested into three layouts: 

• AUD + FAR + REG + BAR
• AUD + FAR + REG + ICS
• AUD + FAR + REG + TCP

The exam is mainly conducted through a combination of MCQs, that is Multiple Choice Questions and simulated tasks, helping candidates in the practical application of their accounting knowledge.

Conclusion

So, this was your step-by-step guide when it comes to CPA eligibility in India. An individual is eligible for the US CPA after having cleared the Uniform CPA exam. Varying as per the state conducting it, the exam needs the examinee to have a bachelor’s degree in accounting, finance, or a related field as an essential requirement. Further, you need to have 150 credits on the Uniform CPA exam to clear it. After this, having experience working in accounting, finance, or licensing for a minimum of one or two years helps in CPA eligibility.

While it can be a daunting enough task to pursue a career in finance, accounting and licensing, many institutes and organisations worldwide can help make the process easier for you. NorthStar Academy is one of the leading entities in India. Under the leadership of M Irfat, students have been guided at each step and given the specific skills and knowledge that make them well-equipped to sit in the qualifying examinations and clear them with flying colours, along with practical know-how to place them among the best of the best in the industry.