Is a US CPA Equivalent to an Indian CA?

TABLE OF CONTENTS

• CPA and CA—The Difference
  Areas of Expertise
  Time Requirement for a CPA and a CA
• Should You Become a CPA or a CA?
• Is a US CPA Equivalent to a CA in India?
  Certified Public Accountant in the USA
  The Benefits of Having a CPA License in the USA
  Chartered Accountant in India
  The Benefits of a CA License
• FAQs
• Conclusion

CPA and CA—The Difference

A CPA or Certified Public Accountant and a CA or Chartered Accountant are credentials you can earn through defined study and passing an examination. The credential of a CPA is solely issued in the United States, while a CA credential is administered and globally recognized.

CPAs are professionals who passed the CPA exam administered by the American Institute of Certified Public Accountants (AICPA) and fulfilled all of the education and work requirements related to taking the exam. Certified Public Accountants are authorized to provide public accounting services, such as taxation, auditing, and advisory services.

CAs are professionals who passed the Chartered Accountant exam and the education required in their respective countries. The ICAI or the Institute of Chartered Accountants of India is one great example. A CA or CPA license is fantastic and could provide several opportunities to work in the accounting field, boosting your career and keeping you ahead of the competition. Moreover, chartered accountants are trained to provide various financial services, including taxation, auditing, financial reporting, and advisory services.

Areas of Expertise

Certified Public Accountants are skilled in several areas. The following are some of the expertise they provide.

• Audit and Assurance. CPAs perform financial statement audits to ensure integrity, accuracy, and compliance with accounting regulations and principles.
• Financial Advisory. Certified Public Accountants offer advisory services, such as risk management, financial planning, and business valuation.
• Taxation. Provide tax preparation, planning, and consulting services, helping companies navigate complex tax laws.
• Forensic Accounting. A CPA could also specialize in forensic accounting, analyzing financial records, investigating financial fraud, and providing litigation support.

Chartered Accountants possess expertise and skills in various areas as well.

• Auditing. CAs do independent audits of financial statements. This is done not just to assess their accuracy but to comply with relevant regulations as well.
• Financial Reporting. CAs prepare and analyze financial statements to ensure compliance with regulatory requirements and accounting standards.
• Taxation. They provide tax planning and preparation, as well as advisory services to businesses and individuals.
• Advisory Services. A chartered accountant offers business and financial advice to clients, helping them to make a well-informed business decision.

Time Requirement for a CPA and a CA

Becoming a CPA or CA takes time. CPA aspirants must complete 150 undergraduate credit hours. Some states may also require them to work for several hours under the direct supervision of a certified public accountant. Then, you have 30 months to sit for the exam and pass it. Becoming a CPA could take you from eight to ten years. Five years you have to spend on undergraduate work, a couple of years on the job, and 30 months to pass the exam.

The accounting qualifications to become a Chartered Accountant depend on the country you plan to practice in, your education level, and your professional experience. ICAS has four options:

• Direct entry route requires training for 5 years with an ICAS-approved employer.
• The professional entry route for experienced professionals is for those who are established with a university degree or five years of relevant work experience.
• The graduate entry is for university graduates and requires three years of training with an ICAS-approved employer.

Should You Become a CPA or a CA?

You might opt to become a Certified Public Accountant and not a Chartered Accountant if:

• You plan to work in the United States. The CPA designation is specifically designed for accounting practices in the US, including federal tax laws and US GAAP.
• Your goal is flexibility in different accounting roles. CPAs can work in different roles and fields, including tax preparation, auditing, and financial analysis within the US framework.
• You want to specialize in US Taxation. Certified Public Accountants have specialized expertise in federal income tax in the United States, which makes them the go-to professionals for anything tax-related.
• You value recognition in the United States market. A CPA is highly recognized and respected across the US, providing you with a powerful professional distinction.
• You want more opportunities in US Public Accounting. You need to have a CPA license to be able to practice as a public accountant in the US as well as for signing audit reports.

You may also opt for a CA License if:

• You plan to work on an international level. A CA is globally recognized and respected. This can provide an opportunity for you to work in other countries with different accounting standards.
• You’re focused on a specialization in International Accounting Standards. Chartered accountants are experts in IFRS or International Financial Reporting Standards, which make them invaluable in globally-operating companies.
• You want opportunities in specific countries. In countries such as India, UK, Australia, and Canada, a CA credential is highly valued and often is a requirement for senior accounting roles.
• You seek roles in global organizations. Numerous multinational organizations prefer to hire CAs because of their extensive training in international accounting standards and practices.

Is a US CPA Equivalent to a CA in India?

When it comes to cross-border accounting designations, yes, a Certified Public Accountant in the United States is equivalent to a Chartered Accountant in India. Both certifications are recognized and respected worldwide. Let’s check out the distinctions between a US CPA and a CA granted in India as well as other countries.

Certified Public Accountant in the USA

A CPA license is awarded to people who have completed a specified education and experience criteria. To earn a CPA license, every jurisdiction has slightly different criteria but usually includes the four benchmarks below.

• Pass the four-part Certified Public Accountant within 30 months.
• At least have 1-2 years of documented and qualified job experience, depending on the jurisdiction.
• In some states, CPA candidates should pass an ethics exam before they can proceed to have a license.

The Benefits of Having a CPA License in the USA

The US CPA License has many benefits, particularly for those who want to work for organizations in the United States.
1. CPAs alone can sign an audit report on behalf of an accounting firm in various states. In some states, only certified public accountants are allowed to provide compilation services.
2. Certified Public Accountants have extensive knowledge and thorough understanding of the US GAAP or Generally Accepted Accounting Principles and federal income taxation in the US. They are also familiar with the different accounting documentation used by publicly traded organizations in the US.
3. The majority of big firms want their senior financial executives to be CPAs to demonstrate their skills and knowledge in the field.

Chartered Accountant in India

A Chartered Accountant is a professional certified by the ICAI or the Institute of Chartered Accountants of India. Chartered accountants excel in auditing accounts, advising clients on taxes, and providing financial data. Furthermore, CAs are well-versed in International Financial Reporting Standards as well as other international accounting norms.

The Benefits of a CA License
CAs enjoy several benefits in the accounting realm.

1. Indian Chartered Accountants excel in problem analysis and solving, which makes them invaluable for business organizations.
2. High Demand. A CA is vital in the financial and accounting field because it plays a critical role in fund management as well as other related activities. There is a high demand for chartered accountants in business organizations big and small.
3. Diverse Career Opportunities. Chartered Accountants can choose from different career paths, such as accounting, auditing, consultancy, and more.

FAQs

Q. In which US state should I apply for a US CPA if I’m an Indian?

Ans. Candidates from India can apply for a US CPA license in any of the five states, namely, Alaska, Washington, Montana, Pennsylvania, and Guam

Q. Is doing US CPA in India worth it?

Ans. Since there is a high demand for a US CPA and it’s also among the top-paying jobs in the industry, certainly doing a US CPA in India is worth it. It provides multi-dimensional opportunities.

Q. Which countries can I work in after becoming a licensed US CPA?

Ans. You can work in the United States, Canada, New Zealand, Australia, South Africa, India, and more.

Q. Which exam is more challenging?

Ans. Both exams are rigorous. However, the level of difficulty can differ, depending on your study preferences and background. The CPA exam has four sections while the CA exam has several levels and extensive training.

Q. Can a Certified Public Accountant work internationally like a Chartered Accountant?

Ans. Yes, a CPA can work on an international level, particularly in countries that recognize the CPA license. However, when it comes to wider international recognition, a Chartered Accountant is a good option.

CONCLUSION

The demand for US CPAs in India is rising because of the increasing presence of global firms, which necessitates compliance with US GAAP or IFRS. Moreover, accounting professionals are expected to be thoroughly versed in different standards. If you want to pursue a CPA or a CA degree, you can check out a comprehensive accounting curriculum that equips you with the skills and knowledge to excel.