How Indian Students Can Pursue American CPA?

CA is one of the highest-paying accounting degrees in India and is equally one of the most demanding professions. But, for anyone who wants to pursue a career in accounting internationally, the US Certified Public Accountant (CPA) credential is the best choice for settling in. It is administered by the American Institute of Certified Public Accountants (AICPA). The CPA license is highly regarded internationally, similar to the CA qualification in India. 

This article covers the steps Indian students can take to become US CPAs.

Pursuing CPA From India

CPA exams are conducted online in a limited number of countries. Many Indian students cannot take these exams due to the absence of Prometric centers in India. Instead, Indian candidates can appear for the exams at Prometric centers in the Middle East, including Bahrain, Kuwait, Lebanon, and the United Arab Emirates. This arrangement has been in place since October 2014, making it more convenient for Indian students to pursue the CPA qualification.

Although seeking the CPA course from the US can be more expensive than the Indian CA course, it can be completed in a much shorter time. 

Unlike CA, which takes a minimum of 3 years, the CPA course takes 7-12 months to complete. 

Also, many candidates who have cleared the CPA and CA exams report that the CPA exams are more straightforward.

Eligibility Criteria for US CPA

To pursue the US CPA qualification, aspirants must meet specific educational requirements. 

These requirements are set by the 55 state boards of accountancy in the United States, which are members of the National Association of State Boards of Accountancy (NASBA). 

The general guidelines are:

– You must have a master’s degree in commerce, accounting, or finance.

– You must sit for the CPA exams; aspirants need 120 credits.

– You must obtain a CPA license, and candidates need 150 credits.

– You must have one year of university education in India, which is equivalent to 30 credits in the US.

– In some cases, first-year graduates of NAAC-A-certified Indian universities may also be eligible to take the CPA exams.

US CPA Exam Structure 

The CPA exam is a rigorous test administered by the AICPA. It comprises four sections:

1. Financial Accounting and Reporting (FAR)

2. Auditing and Attestation (AUD)

3. Business Environment and Concepts (BEC)

4. Regulation (REG)

Candidates must pass all four sections within 18 months. This exam is held at over 400 Prometric centers across the US and in select international locations, including the Middle East. 

The CPA exam is known for its high professional standards and is crucial to becoming a licensed CPA.

Each part is designed to check your knowledge about basic principles and how to implement them in the real world.

Each CPA exam consists of multiple-choice questions and simulations, which account for 60 percent and 40 percent, respectively. The candidate who scores 75% is declared as passed.

During the exam, the candidate can take a “test” break after completing either simulations or multiple-choice questions.

Firstly, you must meet the eligibility criteria set by your state boards of accountancy. 

Then, as an Indian student, you can apply for the exam through NASBA (National Association of State Board of Accountancy). 

Applying for the exam involves submission of proof of education, fees, and academic documents, all of which must be an original copy.

Once you submit the required documents, you should prepare extensively for the exam and aim to score above 75%. 

Generally, around 50 percent of candidates pass the exam globally. You can also be among the 50 percent who will Pass, but it doesn’t come free; you must prepare well. 

The CPA exam is an online computer-based exam held at more than 400 Prometric centers in the US. It is conducted twice every quarter, which means it is done four times a year.

Transcript Evaluation 

Submitting transcripts is an essential step in the CPA application process. Candidates must send their original or official transcripts to overseas credential evaluation authorities.

The state board often requires these transcripts. If the transcripts are issued in a language other than English, a word-for-word translation is necessary. 

Providing a course outline or syllabus can accelerate the evaluation process. Some evaluation firms offer online tracking systems or email notifications to update candidates on their progress, providing support and reassurance.

Notice to Schedule (NTS)

The Notice to Schedule (NTS) is a permission granted by NASBA that allows candidates to make an appointment with the exam board once the examination fee is paid. 

After your transcript evaluation, you receive your NTS via email or some other means provided by the exam board. This notification takes 3-6 weeks to receive. However, some states offer faster online application processes.

The NTS lists the sections of the exam the candidate is approved to take and provides instructions for scheduling the exams. 

Each state has an NTS validation period, during which candidates must complete the exams they have paid for. Once the NTS expires, it cannot be used again.

CPA License

Candidates must fulfill additional state-specific requirements after passing the CPA exam to obtain a CPA license. These requirements include:

• 150 credit hours in specific courses from a university or a NASBA-accredited college.
• Passing an ethics exam that tests your knowledge of professional ethics standards.
• Accumulating 2,000 hours of work experience in taxation, auditing, accounting, and management consulting.
• Being at least 18 years old. 

Each state has its own set of standards, so candidates need to check their state’s specific requirements.

 

Continuing Professional Education (CPE)

After obtaining the CPA license, CPAs must be updated and fulfill the Continuing Professional Education (CPE) criteria required to maintain and keep their license current. 

It is full of learning activities that help CPAs stay updated with the latest industrial trends and regulations.

Moreover, you can earn CPE credit in the following ways:

1. Register for university Courses related to business or accounting

2. Join webinars

3. Organize lectures

4. Attend conferences

5. Publish business-related materials.

CPA Coaching in India

In the past, many candidates traveled to the US for CPA coaching because there were no better CPA coaching centers in India. 

Although many well-established Indian coaching centers provide coaching for this course, having US coaching centers in India will be better.

Several US coaching centers needed to open franchises in India. These centers offer coaching for CPA exams, study materials, training, and guidance on fulfilling eligibility criteria and selecting the appropriate state for the exam. 

These centers for CPA coaching in India, such as Becker, Miles CPA Review, Concorde-CPA, EduPristine, and IPFC, play a crucial role in guiding and supporting Indian students in their journey to becoming a US CPA. 

In conclusion, the US CPA qualification offers numerous benefits for Indian students in accounting and finance. 

By understanding the eligibility criteria, exam structure, and study requirements, Indian students can successfully navigate the path to becoming a US CPA. 

With the guidance and support from coaching centers, Indian candidates can confidently prepare for and pass the CPA exams, ultimately achieving their goal of becoming Certified Public Accountants.