What is CPA (Certified Public Accountant)?
A Certified Public Accountant or CPA is a respectable credential that is given to one by the American Institute of Certified Public Accountants (AICPA). One can achieve this credential by successfully passing the Uniform CPA Examination and also by meeting certain educational and experience requirements. All over the world, different countries have certifications equivalent to that of CPA like the CA designation in India. The US CPA is one of the most highly respected credentials in the field of accounting and finance.
What is ACCA (Association of Chartered Certified Accountants)?
The Association of Chartered Certified Accountants or ACCA is a leading global professional accounting body founded in 1904, which offers the Chartered Certified Accountant qualification to learners who want to build a career in finance. Individuals who are Chartered Certified Accountants must be the members of the ACCA and also they must comply with certain additional regulations such as carrying liability insurance, having a practising certificate etc.
Differences between ACCA & US CPA
Application & Qualification:
This is one of the most crucial and vital differences between CPA and ACCA.
CPA USA
To appear for the CPA qualifying exam, the candidate must have any of the following qualifications.
- Member of the “Institute of Costs & Works Accountants in India.”
- Member of the “Institute of Chartered Accountants of India.”
- Member of the “Company Secretaries in India.”
- MBAs.
- Master of Commerce.
- B.com graduates, pursuing Masters.
The basic requirement for a candidate to become eligible for the CPA exam is that one must have 120 or 150 credits and the total must include 30+ in accounting and 24+ in business-related subjects. However, these requirements may vary according to different states. Once you are approved to give the exam, the preparation method depends completely on you. For the CPA exam, the state board would not provide any study material; candidates have to take commercial review courses. That is a decision that would need to be made according to one’s level of comfort. CPA USA can be pursued from various accredited institutions.
ACCA
The entry-level qualification for the ACCA is much lower than that of the CPA as the minimum requirements for the qualification are as follows.
Two A-Levels and three GCSEs (or their equivalent). These need to be in five separate subjects, including English and Maths. You can decide to do ACCA right after 10th, graduation is not really a necessity here. Another notable information is that if you have a bachelor’s degree in the relevant subjects, you can certainly apply for exemption on the part of all the papers at the fundamental level. Apart from this, there would be certain documentations that need to be submitted to write the ACCA exam.
Course Details:
CPA USA
CPA USA consists of four parts/papers which are related to Audit, Business Environment, Financial Reporting and Regulations. As mentioned above previously, CPA USA requires a student to study for at least 150 semester hours which is usually a graduate degree, before entering a CPA program. There are 4 parts of the CPA exam: Financial Accounting & Reporting (FAR), Audit & Attestation (AUD), Regulation (REG) and Business Environment & Concepts (BEC). These papers are tested the same irrespective of the state or institute. Finally, another important particular is that one also needs to pass or get an exemption from an ethics paper.
ACCA
The ACCA consists of three important particulars which are: 4 entry-level papers, 13 ACCA papers and also two outline modules which are based on professional ethics. There are four papers of the FIA or Foundation in Accounts which is an entry-level certificate and three initial papers of the ACCA. Then there are 13 ACCA papers which are further divided into two main groups – nine fundamental 4 professional papers. The candidate has a choice of whether he/she wants to finish off with the FIA or further pursue the ACCA qualification.
Exam Format & Content:
US CPA
The US CPA examination content involves these four parts in detail:
- Auditing & Attestation (AUD)
- Business Environment & Concepts (BEC)
- Financial Accounting & Reporting (FAR)
- Regulation (REG)
To become a CPA, one needs to pass all the four sections within an 18-month testing window. Each part of the Uniform examination is a 4-hour paper that covers different subsets of topics and concepts related to business and finance.
The CPA exam is 100% computerized, and each part of the exam is arranged into test-lets. These testlets consist of several multiple-choice questions followed by many task-based simulations. There are also written communication test-lets in the exam.
One can choose to take four parts, one at a time or two at a time or even all four at once. That can be decided accordingly; you can sit for the exam at any of the Prometric centres and at any time during the first two months of every quarter.
ACCA
ACCA covers the following subjects at the knowledge and professional level:
- Financial Reporting
- Cost and Management Accounting, Financial Management, Performance Management etc
- Auditing
- Taxation
- Law
- Ethics and other relevant theories
As mentioned before there are 13 papers which are divided into Fundamental Level consisting of 9 papers and Professional Level consisting of 4 papers. Candidates can also apply to waive off part or all of the given papers but only at the Fundamental Level. You basically first have to give the four FIA (Foundation in Accounts) papers as an entry-level certificate and then proceed to giving the 13 ACCA papers.
The ACCA exam isn’t computerized although some papers might be computerized but not all. This particular examination is offered about four times in a year.
The ACCA exam is also computerized in India and during the pandemic there is remote proctoring.
Duration & Passing Criteria:
CPA USA
Usually, candidates need to pass the CPA USA examination within 12 to 18 months, but if you are highly committed and passionate about this, you can choose to take all the four parts of the exam in a single go which will indeed be a great achievement. In this case, the CPA course would be completed within 3 to 6 months. The passing criteria for the CPA papers are 75%.
ACCA
Given that the number of papers in the ACCA course are a lot and also the fact that these exams are held only twice a year, candidates usually complete all the papers and become an ACCA member within almost 4 years which is definitely a long time when compared to CPA. The passing criteria for the ACCA papers are 50%.
Job Description:
CPA USA
The job of a CPA is related to finance and accounting service for the public. The designation of a CPA is highly respectable and Internationally recognized all over the globe. A CPA can work for large and small public accounting firms. A Certified Public Accountant is a trusted financial advisor who diligently helps various individuals, businesses and other organizations to reach their financial goals. The CPA license is not required for corporate or private accountants, but it is necessary for public accountants who work either solo or for companies that provide accounting services to others.
CPAs specialize in many areas like:
- Financial Analysis
- Internal Auditing
- Management Accounting
- Information Technology Auditing
- Tax accounting
ACCA
There are multiple career options available for ACCA professionals too. An ACCA can work as a management consultant, financial planner and so on. Their work is related to the inspection of the accounting service of public and private entities. They usually also deal with international accounting standards. They need to have the certification before the inspection. Other than auditing, taxation, etc. ACCA can mark their presence globally across the field of finance, controlling, and financial analysis. ACCA India has no authority for signing, and hence he cannot mark his signature on audit reports. Similarly, he cannot set up his auditing firm as well. However, an ACCA India professional can carry out auditing jobs in the UK.
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