CPA vs CA

Difference Between CPA and CA

CPA stands for Certified Public Accountant and these exams are conducted by American Institute of Certified Public Accountant (AICPA) and this course takes a minimum of 7 months and a maximum of 1 year to complete whereas CA stands for Chartered Accountant and these exams are conducted by Institute of Chartered Accountants of India (ICAI) and this course takes an average of 4 to 5 years to complete.

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 Skills Accounting 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.

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Source: CPA vs CA (wallstreetmojo.com)

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CPA vs CA Infographics

Eligibility Criteria

#1 – CPA

If you wish to appear for Certified Public Accountant Examination, 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 1^st April & 1^st October.

Examination Syllabus

CPA	CA
Exam I: Financial Accounting & Reporting (FAR CPA Exam) 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 Exam) 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 Management Accounting 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 Exam) 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 Exam) Duration: 4 hours Question Pattern: 3 multiple choice testlets (85% weightage) & 3 written simulations (15% weightage).

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 Auditing External 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 Accounting Forensic accounting employs a mix of accounting, auditing, and investigative acumen by recording accounting documents, preparing reports, and performing financial analysis for use in legal proceedings. Thus, it provides an accounting analysis from a litigation perspective.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 firms
CA: 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 Auditing Management 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 Company A 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 Examination A Certified Public Accountant (CPA) is a US state board-issued license to practice the accounting professionread more.

So which one are you taking?

Comments

Raj says

Sir, m bcom from correspondance than i did m.s.in accounting from icfai university. Pls let me know m i eligible for cpa

Reply
- Dheeraj Vaidya says
  
  Hi Raj, it is best to ask the CPA Institute. You can contact them here
  
  Reply
ABI says

Thank you so much sir it has enlightened me a lot .

Reply
- Dheeraj Vaidya says
  
  thanks Abi! :-)
  
  Reply
rakesh says

hello sir
I had completed my CA-IPCC exams..am I elogible for doing CPA.
I also completed my bcom

Reply
- Dheeraj says
  
  Hi Rakesh,
  
  I think if you are CA+B.com, you can give this exam readily. However, if you have not yet completed CA fully, then you will also require a minimum of one year experience in Finance and accounting to appear for CPA exam.
  
  thanks,
  Dheeraj
  
  Reply
harinder says

hi
i am a b.com( prof) graduate in 2014 now i am planning for cpa . is there any problem to have gap of two year?

Reply
- Dheeraj says
  
  Hi Harinder,
  
  I don’t think there is any problem if you give the exam after a gap of two years.
  
  All the best,
  Dheeraj
  
  Reply
rohith says

hi sir,
your article is amazing,but i am unable to clear my ca exams for past 3 years.besides i completed my b.com and doing a job in MNC.now i am interested to take take cpa and after finishing that can i work in india or also i can practise in indian firms.

Reply
- Dheeraj says
  
  hi Rohith,
  
  if you wish to work for MNC firms with office in India, then CPA can help you alot.
  
  Thanks,
  Dheeraj
  
  Reply
Suresh Kumar says

Thank you very much Dheeraj Sir for such a informative guidance on CA vs CPA. Will you please guide me on route to banking career via ICICI PO training by Manipal academy Bangalore. Is this route of training worthy as a career option or should I try Bank PO exams route for banking career?
Thanks again …..

Reply
- Dheeraj says
  
  Hi Suresh,
  
  I haven’t heard of ICICI PO training much. Given their brand name, it should be a good place to start. Please do your due diligence before you take the same.
  
  Best of Luck,
  Dheeraj
  
  Reply
chinmay says

if i do both ca and cpa will i get any benefit in job,salary?

Reply
- Dheeraj says
  
  Hi Chinmay,
  
  I have seen that many CAs working for MNCs opt for CPA. Maybe this is due to international opportunities presented to them in the process. Additionally, higher roles in Finance (CFO etc) may require you to have globally recognized accounting certification.
  
  Thanks,
  Dheeraj
  
  Reply
Rehaman says

Can we study cpa living in India? Are the subjects in CA and CPA are same? Are there any multi national companies in India who are hiring CA A’S?

Reply
- Dheeraj says
  
  Hi Rehaman,
  
  You can definitely study for CPA exam in India. however, you can take the exam in Dubai. Please checkout https://www.aicpa.org/PRESS/PRESSRELEASES/2014/Pages/Citizens-of-India-Now-Able-to-Sit-for-US-CPA-Exam-in-Middle-East.aspx
  
  CA and CPA differ with respect to the accounting norms. CA covers Indian GAAP, while CPA mostly covers IFRS and US GAAP. There are many multinational companies that hire CPAs and likewise Big accounting firms in India with global operations also hire CPAs.
  
  Thanks,
  Dheeraj
  
  Reply
Mohammad sameer says

Thanks for your articles, they are great to read and understand. :)
but i have a doubt in this..
-Is cpa possible from india?
-Cpa institutes in india?
-Where should i write the exam?

Reply
- Dheeraj says
  
  Hi Mohammad,
  
  There are lot of advantages of doing CPA in India. you can get hired in big 4 consulting firms with global accounting work and in addition to this many MNCs prefer CPA with knoweldge of US GAAP and IFRS. The only issue is that you cannot take the exams in India. You may checkout more details on this here. https://www.aicpa.org/PRESS/PRESSRELEASES/2014/Pages/Citizens-of-India-Now-Able-to-Sit-for-US-CPA-Exam-in-Middle-East.aspx
  
  Thanks,
  Dheeraj
  
  Reply
Gopal Poddar says

Thank You sir for such a great explanation.
Please help me also providing a detailed note regarding admission procedure and coaching facility India.

Reply
- Dheeraj says
  
  Hi Gopal, Thanks. Honestly, I am not much sure of the best coaching institutes available in India.
  
  thanks,
  Dheeraj
  
  Reply
Anand says

Dear sir,
I have completed my graduation in B.Sc.but for CPA B.Com requires.so what should I Do?
Please advise me.

Reply
- Dheeraj says
  
  Hi Anand,
  
  I am not sure if you can sit for the CPA exam as it requires a minimum level of accounting profiency. However, please write to AICPA to answer your queries regarding the same.
  
  Thanks,
  Dheeraj
  
  Reply
Siddharth Nanda says

Thank you Sir for bringing the comparison between CPA & CA. Sir, I have one question I am confused whether studying Indian GAAP is more beneficial or US GAAP & IFRS?

Reply
- Dheeraj says
  
  Hi Siddharth,
  
  It depends on what you want to do in the future. If you are look at becoming CA, then obviously you should focus on Indian GAAP. Also, IFRS and Indian GAAP have lot of similarities.
  For CPAs, US GAAP & IFRS makes more sense.
  
  Thanks,
  Dheeraj
  
  Reply
William T says

Hello Dheeraj Sir,
Your articles are always amazing… This article on CPA v.s CA is quite interesting. Seriously you impart the knowledge so well in an article its beyond appreciation. Thank you so much Sir for guiding us with your amazing articles…

Reply
- Dheeraj says
  
  Thanks William :-)
  
  Reply
shrikant says

Dear Dhiraj,

Very excellent & knowledgeable info. Keep posting such articles on your site .This will be useful.

Regards,

shrikant

Reply
- Dheeraj says
  
  Thakns Shirkant :-)
  
  Reply
Riddhi Chauhan says

Hello Sir, Thank you for the excellent comparison between CPA v/s CA, your writing style is really good. I just had a question sir that to appear for CPA examination you have to visit USA. Is it true or we can give it from India as well?

Reply
- Dheeraj says
  
  Hi Riddi,
  
  There was a recent update from AICPA on this. I dont think the exam can be given in India. However, you can appear for this in Dubai – do checkout – https://www.aicpa.org/PRESS/PRESSRELEASES/2014/Pages/Citizens-of-India-Now-Able-to-Sit-for-US-CPA-Exam-in-Middle-East.aspx
  
  Thanks,
  Dheeraj
  
  Reply
David R says

Thank you Sir for coming up with such an amazing article. I keep reading your blogs and truly they are very interesting. Seriously your articles are always of great help to learn the financial stuffs at such an ease. Good Job Sir…..

Reply
- Dheeraj says
  
  thank you David!
  
  Reply
Kritika Das says

Awesome article on CPA v/s CA, thank you Sir for coming up with such an enlightening articles. I was confused between choosing CPA or CA designation. But this article has actually helped me to be in a better position and take a wise decision. Thanks once again.

Reply
- Dheeraj says
  
  Thanks Kritika :-)
  
  Reply
Shreyansh Bhattacharya says

The article is very informative. I wanted to know to your opinion if CPA is more difficult to clear than CA?

Reply
- Dheeraj says
  
  Hi Shreyansh, in general CA is considered to be difficult due to low passing percentages.
  Thanks,
  Dheeraj
  
  Reply
Richard damein says

Thank you Sir for helping me to know the difference between CPA and CA, I always love your articles they are really helpful and informative and it helps me to take better decisions. Keep doing the great work!!!!

Reply
- Dheeraj says
  
  Thanks Richard :-)
  
  Reply
Maria K says

Really informative article on CPA v/s CA, thank you Sir for covering the most aspects about CPA v/s CA. I am just confused Sir if I pursued for CPA and after gaining few years of experience outside India, will I be able to fetch a better job in India with my CPA designation?

Reply
- Dheeraj says
  
  Hi Maria,
  
  I don’t foresee that as a problem. You should be able to get an exciting role with your CPA designation i companies that have multi-national presence.
  
  Thanks,
  Dheeraj
  
  Reply
Anushka says

Thanks for the comparison. This has been actually been a dilemma for me in the past few months. Have heard and read a lot of comments and conversations on this debate. But I found this pretty in depth and answered quite a few questions I had in mind. I think I would pursue CA :)

Reply
- Dheeraj says
  
  thanks Anushka!
  
  Reply

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CPA vs CA