Difference Between CPA and CA

Which is better? Which designation will help my career? When deciding your choice of profession in accountancy, you may be in a dilemma to choose between CPA or CA.

The key question that arises is whether the CPA benefits my career path or CA? There is no clear winner because both qualifications will help to grow your technical skills, accountancy skillsAccountancy SkillsAccounting Skills are the set of skills required to present business transactions comprising of financial and non-financial in the books of accounts as per prescribed Standards of Accounting (US GAAP, IFRS, Ind AS) and as a part of legal compliance and analysis of business outcome in an optimum way.read more, and business management skills. Also, CPA and CA holders tend to be equally spread across commercial and public accounting – so each qualification provides maximum flexibility to work across the industry.

Please note we are only comparing CPA membership of AICPA (American Institute of Certified Public Accountants) and CA membership of ICAI (Institute of Chartered Accountants of India). 

I understand that the choice between CPA and CA is a big career decision and hence, to help you make an informed decision, I prepared an infographic that will give you a clear picture of differentiation.

You are free to use this image on you website, templates, etc., Please provide us with an attribution linkHow to Provide Attribution?Article Link to be HyperlinkedFor eg:Source: CPA vs CA (wallstreetmojo.com)

CPA vs CA Infographics

Eligibility Criteria

#1 – CPA

  • If you wish to appear for Certified Public Accountant ExaminationCertified Public Accountant ExaminationA Certified Public Accountant (CPA) is a US state board-issued license to practice the accounting professionread more, you need to clear Bachelors in Commerce (B.Com) with a first-class or you need to have a Bachelor’s in Commerce and also a Post-Graduation Degree.And if you have Indian CA’s designation with B.Com than also you can appear for CPA examinations. Also, checkout Careers after B.com

#2 – CA

  • If you want to appear for Indian CA Examination you need to appear for Common Proficiency Test (CPT) after appearing in Senior Secondary Examination (recognized by the Central Government of India).CPT Examination is held in June & December every year, so the first step you need to do is you need to register for Common Proficiency Test 60 days prior to the test i.e. on or before 1st April & 1st October.

Examination Syllabus

Career Opportunities

  • CPA: CPA designation will open a door of wide varied options. After getting your CPA certification you can work under various accounting fields such as International Accounting, Internal & External AuditingExternal AuditingExternal Audit is defined as the audit of the financial records of the company in which independent auditors perform the task of examining validity of financial records of the company carefully in order to find out if there is any misstatement in the records due to fraud, error or embezzlement and then reporting the same to the stakeholders of the company.read more, Consulting Services, Forensic AccountingForensic AccountingForensic accounting is the investigation of fraud and misrepresentation.read more, Assurance services, Taxation & Financial Planning, etc. With its global recognition, you will find the best place to work anywhere in many countries. See the list of Top Accounting firmsCA: Similarly, CA Designation will also provide you many options in the specialized areas of Accounting such as Auditing, Taxation, Corporate Finance, Corporate Laws. After getting your CA Certification you can either work in the existing top firms of Accountancy or you can start your own independent professional practice.

CPA vs CA – Salary Comparison

  • CPA: The average salary earned by the CPA Professionals (in India) is found to INR 7,68,552 per year.  Most people move on to other jobs if they have more than 10 years’ experience in this field.CA: A Chartered Accountant (in India) earns a salary of INR 6,08,976 per year on an average. Skills that are associated with high pay for this job are Evaluation and Management AuditingManagement AuditingManagement audit refers to an audit of management in which multiple tools examine the management’s performance and progress toward the process of best decision making. Instead of focusing on operational aspects, the emphasis here is on management’s “Quality of Decision-Making.“read more, Budget Management, Financial Analysis, Strategic Accounts, and Financial Advisor. People in this job generally don’t have more than 10 years’ experience. Experience strongly influences income for this job.

Conclusion

Both designations have their own pros and cons, it is not an easy task to opt between CPA & CA as both have a successful career. If you are interested in working abroad or in a multinational companyA Multinational CompanyA multinational company (MNC) is defined as a business entity that operates in its country of origin and also has a branch abroad. The headquarter usually remains in one country, controlling and coordinating all the international branches. read more, then you should opt for a CPA. Alternatively, if you want to start your own audit practice in India, opt for CA. Additionally, the CA exam is less costly as compared to the CPA examinationCPA ExaminationA Certified Public Accountant (CPA) is a US state board-issued license to practice the accounting professionread more.

  • Exam I: Financial Accounting & Reporting (FAR CPA ExamFAR CPA ExamThe Financial Accounting and Reporting (FAR) CPA Exam section tests a candidate’s competency in understanding and applying financial accounting and reporting standards.read more) Duration: 4 hours Question Pattern: 3 multiple-choice tests (60% weightage) & 7 short task-based simulations (40% Weightage)

  • Level I: Common Proficiency Test (CPT)

  • Duration: Session 1 & 2 (each session 2 hours)Session 1: Fundamentals of Accounting (60 marks), Mercantile Laws (40 marks)Session 2: General Economics (50 marks), Quantitative Aptitude (50 marks)

  • Question Pattern: Objective Type Test for each correct answer 1 mark and for wrong answer negative 0.25

  • Exam II: Auditing & Attestation (AUD CPA ExamAUD CPA ExamAuditing and Attestation (AUD) is one of the four Uniform Certified Public Accountant (CPA) Exam sections to be passed for CPA licensure. With a complex exam format, tricky questions, and an exhaustive list of topics to study, you will benefit from some quick tips on the art of preparing for the AUD CPA exam section.read more) Duration: 4 hours Question Pattern: 3 multiple choice testlets (60% weightage) & 7 short task-based simulations (40% Weightage)

  • Level II: Integrated Professional Competence Course

  • Duration: 7 Papers arranged into Two groups (Each Paper of 3 hours)Group I: Advanced Accounting, Law, Ethics & Communication, Cost Accounting, and Financial ManagementAccounting, And Financial ManagementAccounting is the process of recording, maintaining as well as reporting the financial affairs which reflect the true financial state of the entity. Financial management is the management of the finances and investment of different individuals, organizations and other entities.read more, TaxationGroup II: Advanced Accounting, Auditing & assurance, Information Technology & Strategic Management.

  • Question Pattern: Theory & Practical Based

  • Exam III: Regulation (REG CPA ExamREG CPA ExamREG CPA Exam (Regulation) exam section tests a candidate’s competency in applying the concepts of federal taxation, business law, and ethics. It is a four-hour exam with 15 minutes break.

  • read more) Duration: 4 hours Question Pattern: 3 multiple choice testlets (60% weightage) & 7 short task-based simulations (40% Weightage)

  • Level III: CA Final

  • Duration: 8 Papers arranged into Two groups (Each Paper of 3 hours)Group I: Financial Reporting, Strategic Financial Management, Advanced Auditing & Professional Ethics, Corporate & Allied Laws.Group II: Advanced Management Accounting, Information Systems Control & Audit, Direct Tax Laws, Indirect Tax Laws.

  • Question Pattern: Theory & Practical Based

  • Exam IV: Business Environment & Concepts (BEC CPA ExamBEC CPA ExamThe BEC CPA Exam (Business Environment and Concepts) exam section evaluates your understanding of the general business environment and your duties and responsibilities as a CPA towards it. It assesses your ability to recognize and scrutinize situations related to Financial reporting, Financial statement audit and attestation and Tax preparation

  • read more) Duration: 4 hours Question Pattern: 3 multiple choice testlets (85% weightage) & 3 written simulations (15% weightage).

So which one are you taking?

This has been a guide to CPA vs CA. Here we discuss the difference between CPA and CA based on the eligibility criteria, examination syllabus, career opportunities, salary, etc. You may also have a look at the following articles –

  • CPA vs CFA – Which is Better?Surgent CPA ReviewBecker CPA ReviewCFA vs CA