Difference Between CIA & CPA

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In other words, a CIA possesses a niche skill limited to the internal audit domain, while a CPA exhibits expertise in various public accounting and financial reportingFinancial ReportingFinancial reporting is a systematic process of recording and representing a company’s financial data. The reports reflect a firm’s financial health and performance in a given period. Management, investors, shareholders, financiers, government, and regulatory agencies rely on financial reports for decision-making.read more activities. CIA is a globally recognized internal audit certification awarded by the Institute of Internal Auditors (IIA). On the other hand, CPA is a U.S.-recognized public accounting license issued at the jurisdiction level.

CIA vs CPA Comparison Table

CIA vs CPA Infographics

What is a CIA?

CIA is the only international certification issued to accountants conducting internal auditsInternal AuditsInternal audit refers to the inspection conducted to assess and enhance the company’s risk management efficacy, evaluate the different internal controls, and ensure that the company adheres to all the regulations. It helps the management and board of directors to identify and rectify the loopholes before the external audit.read more. IIA issues the credential to qualified individuals who pass three parts of the CIA Exam and obtain relevant work experience. 

CIA Exam

The CIA exam is a three-part computerized test to be passed within three years. The exam is conducted throughout the year in Pearson VUE test centers in more than 150 countries worldwide.

The current pass rate for CIA exams is 41% globally. The tests are administered in multiple languages. Moreover, there is no fixed test date. Candidates may choose the most suitable date and time as per their convenience. 

In comparing the difficulty level of CPA vs CIA exams, the CIA exam appears to be easier. It is because the time period required for passing it is more. Also, it has a less comprehensive syllabus, and only MCQ questions are asked in the exam.

CIA Certification Prerequisites

To acquire the CIA certification, you may take any of the following pathways to fulfill the education, exam, and experience requirements:

To take the CIA program and sit for the exam, you must meet any of the above education requirements and submit a character reference form and identification proof. However, after passing the exam, you must verify professional experience before applying for the certificate.

Total Certification Cost

Please note that the certification costs may vary across different countries. However, here lies the standard certification cost structure. 

Career Path

CIAs work in the internal audit departments of different organizations. They analyze the financial records to identify the discrepancies that can be controlled internally. Their job profile involves reviewing and assessing the current business functions and making them apt for the currently emerging challenges.

Moreover, the reports generated after the thorough analysis of the financial procedures make businesses identify the risks beforehand and tackle the same. Therefore, a CIA’s job profile is not just limited to supervising the internal audit processes of a company. Instead, their scope of work extends to ensuring complete risk management.

In addition, they work with the senior leadership to develop methods for preventing fraud and theft against the organization. Here are the different career paths for a CIA:

  • Compliance AuditorInternal Audit DirectorInformation Systems AuditorSenior Internal AuditorLead Internal AuditorAudit ManagerAuditing SpecialistRisk Manager

Salary

Comparing CIA vs CPA salary, it is evident that CIAs earn a bit less due to their micro skill set. However, the CIAs make a decent average pay of $67,779 annually. Moreover, the pay may vary as per their geographic location, employer, seniority level, work experience, etc. 

Continuing Professional Education (CPE)

CIAs must report the required CPE Credit hours annually by December 31 in the Certificate Candidate Management System (CCMS). It is necessary to sustain an active certification. 

Moreover, the requirements vary as per the professional status. CIAs must also complete two CPE hours of ethics that they may include in their total annual CPE requirement.

What is a CPA?

A CPA is a licensed accounting expert who has passed the CPA examCPA ExamA Certified Public Accountant (CPA) is a US state board-issued license to practice the accounting professionread more and satisfied the state board-specific education and experience prerequisites. The American Institute of Certified Public Accountants (AICPA) partners with the National Association of State Boards of Accountancy (NASBA) to conduct the CPA Exam and issue the CPA license. 

Fulfill the below-mentioned requirements to earn the credential:

  • Complete 120-150 semester hours of educationPass the Uniform CPA Exam with at least 75 points in each sectionObtain 1-3 years of relevant work experience Pass the Ethics Exam with a minimum of 90% (if required by the state board)

The requisites mentioned above may change as per your state board of accountancy.

CPA Exam Requirements

The CPA exam is a computer-aided licensure test. CPA exam constitutes four sectionsCPA Exam Constitutes Four SectionsThe Uniform Certified Public Accountant (CPA) Exam comprises four sections, namely, Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR), and Regulation (REG). The unique content, structure, format, and scoring of the CPA exam earn it the title of one of the most challenging professional exams. read more to be passed within the rolling 18-month period. You must score at least 75 points on a scale of 0-99 in each section. 

The Uniform CPA Exam has an average pass rate of 50%. Contrary to the CIA Exam, the licensure test is only available in English. It is administered only at domestic or international Prometric testing centers. 

When you compare the difficulty of CPA vs CIA exam, the CPA exam appears to be more challenging. This is because it has extensive coverage of all aspects of accounting. Moreover, the CIA exam allows you three years to pass it against the CPA exam, which permits only 18 months.  

CPA certification cost varies as per the state you wish to be licensed. Also, the amount for international candidates differs due to additional evaluation services. Furthermore, here is the approximate CPA certification cost structure. 

Job Profile

The CIA vs CPA work profile comparison reveals that the latter performs a broader array of accounting tasks. These tasks include record-keeping, income tax preparation, consulting, and risk management. 

They devise intelligent strategies to bolster the financial growth of a company. In addition, their vast expanse of accounting knowledge and deep financial insight comes in handy for its betterment. 

They can also function as a government auditor or involve in delivering not-for-profit auditing services. Besides, they are also eligible to deliver other services like business valuation, forensic accountingForensic AccountingForensic accounting is the investigation of fraud and misrepresentation.read more, environmental accounting, international accounting, etc.

Let’s view the different job profiles for a CPA:

  • AuditorBusiness AdvisorAccounting ConsultantTax AccountantAccounting Vice PresidentChief Accounting OfficerChief Financial OfficerChief Executive Officer

The average annual base pay of a CPA is $77,800. However, similar to CIAs, the remunerationRemunerationRemuneration refers to overall monetary and non-monetary compensation that employees or independent contractors receive for providing services to an organization or company.read more of CPAs may vary as per the geographical location, position, employer, and work experience.

Note that the salary disparity in CPA vs CIA exists due to differences in their scope of work. CPAs are paid more as they possess expertise in all financial aspects of a business and perform a variety of accounting functionsAccounting FunctionsAccounting functions are financial systems that help in the bookkeeping of financial information in an organization, financial analysis, summary creation, reporting of transactions and act as the backbone for almost any business. Accounting as a system tries to identify, assess and record the transactions of financial nature in a very systematic approach.read more. Conversely, with internal audit as their restricted sphere of operation, CIAs command lower salaries.

CPAs must renew their accounting license every 1-3 years to provide quality professional services. Moreover, the reporting requirements, period, and the associated fees are state-specific. The common requirements are as follows:

  • CPE Reporting Period – 1-3 yearsCPE Reporting Requirements – 40 -120 Credit hours

This has been a guide to CIA vs CPA. Here we discuss the top differences between CIA and CPA along with a comparative table and their eligibility criteria. You may also have a look at the following articles –

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