What Are The Requirements for US CPA Exam

The US Certified Public Accountant (CPA) certificate is among the most coveted certifications for an individual aspiring to make a career in the field of accounting and finance. It opens up a world of opportunities, as a CPA can find job openings of their choice in any part of the world. A CPA in India is held in high esteem and trust as they are regarded as holders of public interest. To pass the CPA exam and obtain the uniform CPA credential, accounting professionals must meet the experience requirements and successfully complete the ethics exam administered by the National Association of State Boards of Accountancy (NASBA) and their respective state boards of accountancy. And, if you are looking to settle and work in the US, the CPA credential becomes all the more important. This is because it is the country’s sole licensing qualification in accounting and auditing. 

Cracking the US CPA exam requirements may appear tough initially, but with diligence, perseverance, and the correct methodology, you can come out successful, giving a kickstart to a wonderful career ahead. So, let’s begin by understanding why the CPA credential is in such high demand and, subsequently, the CPA exam requirements. The American Institute of Certified Public Accountants (AICPA) conducts the exam for the US CPA.

Key Takeaways

• Requirements for US CPA Exam

• Certified Public Accountant

• Process of Becoming A CPA

Five Reasons To Pursue Certified Public Accountant (CPA)

Data from the US Department of Labour shows employment growth in auditing and accounting is anticipated to be 6% from 2018 to 2028. The reasons for this impressive CPA Demand growth include:

• Earning Potential: The earning potential of a CPA job is significantly higher than that of other employment opportunities. For instance, experienced US CPAs in higher management can earn six-digit figures annually.
• Career Opportunities: A CPA’s job is in high demand, and the field is broad. As you gain experience, you can hold various positions, such as staff accountant or financial analyst.
• Stability: Besides being financially stable, accounting careers remain secure even during economic downturns. These are the times when their accounting skills are needed the most.
• Flexibility: CPA candidates can work in different industries or departments, as their skills are essential in every sector, which gives them a massive window of opportunity regarding career choice.
• Prestige and Respect: A CPA career commands tremendous respect given the growing importance of strong and ethical financial management in organisations, private and public.

The Process of Becoming A CPA

To become a licensed CPA from India, aspirants must meet the CPA eligibility criteria laid down by the national CPA organisation and pass the uniform CPA exam by fulfilling exam requirements that vary by state. This includes passing all four sections of the CPA exam and meeting the licensure requirements. For US CPA eligibility criteria in India, candidates need to understand the CPA exam structure and ensure they are eligible to take the exam.

The initial steps to become a US CPA in India include the following:

• You need a Bachelor's degree from a recognised college. You should meet the minimum aggregate in accounting and finance or a related field for a foundational understanding. Hence, you can pursue a BBA, B.Com, or MBA course with accounting and finance as major topics.
• You must be a member of any one of the following: The Institute of Chartered Accountants of India (ICAI), Institute of Cost Accountants of India (ICMAI), or Institute of Company Secretaries of India (ICSI).
• For US CPA eligibility, you must complete the exam syllabus in 18 months and pass four papers with 75% aggregate marks.
• For further CPA exam eligibility, you must meet the 120 credit hours (a Bachelor's degree + 30 extra credits from a Master's degree) and 150 credit hours for the CPA course semester.

Thus, the basic CPA exam requirements are pretty achievable. Completing the exam syllabus takes about 12-18 months, and tests are held every month. The course is short, and despite being touted as challenging, you can complete it efficiently with the right mindset and correct guidance. The result is a significant value addition and weightage to your resume.

Syllabus For US CPA Exam and the Exam Details

To pass a US CPA exam, you must pass all four sections of the US CPA exam listed below by scoring at least 75% on each section: 

• Auditing and Attestation (AUD)
• Financial Accounting and Reporting (FAR)
• Regulation (REG)
• The Discipline Section

Each section evaluates your knowledge and skills in various accounting areas. The computer-based exam (CBE) consists of multiple-choice questions, task-based simulations, and written communication tasks. 

Auditing and Attestation (AUD): This section deals with Statements of Auditing Standards (SAS).

• Professional Responsibilities and Ethics
• Planning and Supervision
• Internal Controls
• Corroborative Audit Evidence
• Audit Sampling
• Audit Reports
• Other Auditing and Attestation Topics
  
  Financial Accounting and Reporting (FAR): This part covers the Generally Accepted Accounting Principles, better known as the US GAAP and International Financial Reporting Standards (IFRS).
• Conceptual Framework, Financial Reporting, and Miscellaneous Topics
• Current Assets and Liabilities
• Investments, PP&E, and Intangibles
• Bonds, Leases, and Pensions
• Deferred Taxes, Equity, EPS, and Cash Flows
• Consolidation, Foreign Currency, Partnerships, and NPO
• Governmental Accounting
  
  Regulation of the CPA Exam in India (REG): This section covers all topics under US federal taxation.
• Taxation of Individuals
• Property Transactions and Depreciation
• Taxation of C-Corporations
• Taxation of Other Entities
• Supplementary Taxation Topics
• Statutory Registration and Business Structures
• Business Law

Discipline Section: This section covers three crucial topics, allowing you to choose any one:

1. Business Analysis and Reporting (BAR)
2. Information Systems and Controls (ICS)
3. Tax Compliance and Planning (TCP)

The exam section selection is flexible. You can choose the section you first want to attempt. However, you must attempt all four sections within the stipulated period.

What About The CPA Exam Structure / Pattern?

An essential segment of the CPA exam requirements is the exam pattern, the stipulated time, and the number of questions:

US CPA Exam	Time Taken	Questions
Auditing and Attestation (AUD)	4 hours	78 questions; 7 task-based simulations
Financial Accounting and  Reporting (FAR)	4 hours	50 questions; 7 task-based simulations
Regulation (REG)	4 hours	72 questions; 8 task-based simulations
Optional (Any 1) Business Analysis and Reporting (BAR) Information Systems and Controls (ICS) Tax Compliance and Planning (TCP)	4 hours	50-82 questions (based on the chosen subject); 6-7 task-based simulations (based on the chosen topic)

You must pass all four sections within the stipulated time frame. 

Assessment With Three Types of Questions in CPA Exam

Your knowledge and skills are evaluated through three types of questions, which comprise critical CPA exam requirements:

1. Multiple-Choice Questions (MCQ): You will find these in Testlets 1 and 2 in each exam section.
2. Task-Based Simulations (TBS): These consist of case studies where you work through a problem to ascertain your knowledge and skills. Task-based simulations appear in Testlets 3, 4, and 5 in each exam section.
3. Written Communication Tasks (WCT): You will find them in Testlet 5 of the optional section. Your job is to write a concise and logical response to a written scenario.

Accessing The CPA Exam Blueprints

Once you have completed the course and feel confident in writing the exam, first access the CPA exam blueprints, another critical aspect of the CPA exam requirements. The blueprints contain the knowledge and skills that are expected from an aspirant. You can access the blueprints at aicpa.org/examblueprints.

The blueprints are usually published biannually and cover all content that may be tested in each section. They provide:

• Content organised by area, group, and topic, including score weighting.
• Sample task statements and supporting reference materials.
• Skill levels to test the tasks.
• A number of item types needed to be completed (MCQs, TBSs, WCTs), including score weighting.

US CPA Exam Centres In India

Listed below are the 10 US CPA exam centres in India:
One can take the CPA Exam in these major cities:

• New Delhi (Delhi)
• Mumbai (Maharashtra)
• Chennai (Tamil Nadu)
• Bangalore (Karnataka)
• Ahmedabad (Gujarat)
• Pune (Maharashtra)
• Secunderabad (Telangana)
• Coimbatore (Tamil Nadu)
• Ernakulam (Kerala)
• Kannur (Kerala)

US CPA Certification Validity

Your US CPA exam scores are permanent, which means your US CPA certification validity does not expire. However, if you want to pursue CPA as a career actively, you must acquire a license that has to be renewed annually for a certain sum. Work experience in accounting is not a criterion to earn a CPA certificate. But to earn a CPA license, you must have at least two years of experience in accounting. Further, it is optional for a CPA certificate holder to pursue continuing education. To maintain their licensure, CPA license holders must show at least 40 hours of continuing education credits.

Conclusion

Hence, a Certified Public Accountant is a financial advisor entrusted with assisting individuals and businesses in planning and meeting their financial goals. Meeting CPA exam requirements and obtaining CPA certification is your pass to a highly successful and respectable career. Besides the material comforts it can confer upon you, the CPA certification hauls you up to the upper echelons of society in terms of looking up to you for guidance and support during difficult phases, especially during economic downturns. You can also choose where you want to be to practice your trade. 

Do go through the CPA exam requirements provided above and prepare well. Challenges may come along the way, but remember that the outcome is bright and can significantly transform your life and those near and dear to you. Moreover, you can seek the expert guidance of reputable CPA course training institutions such as NorthStar Academy. You will receive highly experienced guidance from the institute’s mentor, M Irfat Sir, who has ensured numerous aspirants receive their coveted CPA certification. Time is precious; act right away!