The CPA Journey: What to Expect Before, During, and After Certification

The CPA Journey, what to Expect before, during, and after certification, involves hard preparation, fulfilment of eligibility criteria, passing the CPA exam, and career exploration. The American Institute of Certified Public Accountants (AICPA) offers the Certified Public Accountant credential, one of the most respected professional certifications in accounting and finance. The US CPA is recognised internationally, so having this qualification makes a professional even more attractive on the international market. This guide comprehensively covers CPA eligibility, admission into CPA, CPA fees, the CPA syllabus, the CPA exam, exam preparation, and jobs after CPA.

CPA Eligibility

Before starting this CPA journey, one needs to be sure they qualify for the same. The CPA license is issued in the United States, and each state has slightly different criteria. However, there are general eligibility guidelines applicable to all of them.

Candidates must have a certain educational qualification to sit for the US CPA exam. They must have 120-150 credit hours of college education, equivalent to a bachelor’s degree in accounting, finance, or business. Many Indian candidates may need a postgraduate degree like an M.Com, MBA, or CA qualification to meet the credit hour requirement. Since CPA is a certification in the United States, requirements set by the particular state board shall be considered before selection.

In addition to education, most states in the United States also require 1-2 years of work experience under a licensed CPA. It has to be in accounting, auditing, taxation, or finance. Some states will also require an ethics exam and the CPA exam passed. Since eligibility rules vary by state, candidates are encouraged to consult the requirements for their chosen state board to see if they qualify to sit for the US CPA exam and obtain a CPA license.

CPA Admission

There are several procedures followed in CPA admission, from verifying documents to choosing a state board. Below is the step-by-step procedure for CPA registration:

1. Check Eligibility: Check if you qualify according to the CPA exam criteria regarding educational and work experience. If required, take additional courses to earn the needed credit hours. Most Indian candidates require an M.Com, MBA, or CA qualification to meet the 150-hour rule. Checking eligibility early will save the delay in the application process.
2. Choose a State Board: Each state in the United States of America has different requirements for CPAs. Choose the right one as this will depend on your academics and work experience background. Some states have more flexible requirements, making them automatically good for international candidates. Research well on the state board before applying.
3. Apply for the CPA Exam: Submit your transcripts and application fee to the chosen state board. The application fee varies from state to state in the range of ₹8,000 to ₹12,000. Once the application is accepted, you get an Authorization to Test (ATT), which authorises you to proceed with further steps.
4. Get Your Notice to Schedule (NTS): Once your ATT is approved, you receive a Notice to Schedule (NTS). With this document, you can now book your slots for the exams. The NTS is generally valid for 6 months, depending on your state, so schedule your exams within that timeframe. If it expires, you have to reapply and pay additional fees.
5. Schedule the Exam: Register with Prometric Testing Centers to schedule your exam date and location. The US CPA exam is administered all year round on various testing windows. International students might have an extra fee for testing outside of the U.S.
6. Prepare for the Exam: Choose a CPA review course that fits your learning style and budget. Set up a systematic study plan with adequate time allocation for each section. Most students use Becker, Wiley, Surgent, or Gleim to increase their exam chances.
7. Take the Exam and Pass All Sections: The CPA exam consists of four sections. Candidates are expected to pass all within 18 months. The passing score is 75 or higher on a 0-99 scale. Passing all the sections within time ensures smooth progress toward earning your CPA license.

CPA Fees

The CPA course fee includes everything one needs to prepare as a candidate and complete the exam procedure. Indian candidates must budget for exam fees, application fees, study books and materials, and international test charges. In particular, preparing oneself for those extra costs facilitates more effective finance management.

Fees for the CPA exam are non-negotiable, and they will cover the sitting cost for all four sections. For Indian students, it would cost between ₹16,000 and ₹20,000 per section; thus, the total comes out to be ₹64,000 to ₹80,000. The application fees would also range between ₹8,000 to ₹12,000 based on the state boards of the U.S., and the study material or review course cost varies from ₹50,000 to ₹1,50,000 depending upon the provider of the course.

Students taking the US CPA exam from outside the United States will have to pay an international testing fee, ranging from ₹80,000 to ₹1,20,000. The assessment fee to verify educational qualification varies between ₹8,000 and ₹24,000. Once the individual has cleared the CPA examination, the person would require a license from the State to practice. The license cost will vary from ₹4,000 to ₹40,000. These amounts must be paid to obtain official and professional US CPA recognition.

CPA Syllabus

The CPA syllabus tests the candidate’s accounting, auditing, and taxation expertise. It is divided into four key sections covering essential topics: ethics, corporate governance, financial reporting, and federal taxation.

1. Auditing and Attestation (AUD): This section covers ethics, professional responsibilities, and fundamental auditing principles. It focuses on risk assessment, audit planning, and executing audit procedures. Candidates learn to evaluate financial statements, ensure compliance, and issue audit reports based on industry standards.
2. Business Environment and Concepts (BEC): BEC examines corporate governance, economic principles, and financial management. It also includes information technology (IT) and operational management, helping professionals understand how businesses operate efficiently. This section tests a candidate’s ability to analyse business risks and make strategic financial decisions.
3. Financial Accounting and Reporting (FAR): FAR focuses on financial reporting under the U.S. GAAP framework, covering financial statement preparation, recognition, and disclosure of business transactions. It also includes accounting for governmental and non-profit entities, ensuring candidates understand specialised reporting requirements.
4. Regulation (REG): REG covers federal taxation, business law, and professional ethics. It includes topics like tax regulations for individuals and businesses, legal responsibilities, and regulatory compliance. Candidates gain knowledge of tax planning strategies and legal guidelines that impact financial decision-making.

Four major sections of the CPA syllabus test various aspects of accounting, finance, taxation, and auditing. They all consist of MCQs, TBSs, and written communication tasks only in BEC.

CPA Exam

The CPA is computer-based, with four 4-hour sections. Candidates must achieve at least 75 in each of the sections for them to pass.

This test is computer-based, four-part, and 16 hours long. The title of Certified Public Accountant is attained once knowledge and competencies are ascertained. These test centres are located globally but have the same format for each candidate.

Except for the BEC section, MCQs and simulations hold equal weight. In most sections, 50% of marks are for MCQ, and 50% are provided for simulations, whereas in BEC, a part consists of 15% of the marks.

How to Prepare for CPA Exam?

Preparation to pass the CPA exam requires time and strategic studying. Here’s how to study effectively:

1. Choose a CPA Course: Use Plutus Education, Becker, Wiley, or Gleim CPA courses for structured learning. Each course offers video lectures, practice tests, and study materials that will give you an understanding of concepts. The right choice of course ensures more chances of passing the exam in one go.
2. Create a study plan: Set daily and weekly goals for the study to stay on track with your preparation. Divide the syllabus into little portions and follow the timetable strictly. A well-planned schedule helps you complete the course without last-minute stress.
3. Practice MCQs and Simulations: To build confidence and time-management skills, take practice tests fully. MCQs and task-based simulations can enhance problem-solving skills. Proper practice develops one’s ability to make very few mistakes.
4. Focus on weak areas: Practice more on weaker topics to develop your knowledge base. Identify tough sections from the mock tests and practice more. Regularly going through weak areas improves performance overall in the exam.
5. Take Mock Tests: Sit for timed mock tests. This will simulate real exam conditions and help you manage time effectively when sitting for the actual CPA exam. Mock tests also reduce anxiety and increase one’s confidence levels.

Jobs After CPA

A US CPA certification opens doors to high-paying career opportunities worldwide. CPAs work globally in Big 4 firms, multinational corporations, banks, and government organisations.

Conclusion

The CPA Journey on what to expect before, during, and after certification entails commitment, strategic preparation, and financial investment. Candidates must satisfy the eligibility requirements of CPA, apply for the admission process, know the syllabus of CPA, and pass the CPA exam to receive certification. Once certified, they can pursue various lucrative jobs after CPA certification in auditing, taxation, finance, and corporate management. It is a respected credential globally; therefore, this US CPA brings immense growth opportunities.