Certified Public Accountant (CPA)

A designation for qualified accountants who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA.

The role of a CPA has evolved from traditional accounting into a multi-dimensional area of expertise. New disciplines are emerging every day as corporations, universities, government agencies, and not-for-profit groups worldwide recognize the powerful impact a CPA can make in their organization.

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Benefits of CPA

CPAs are vital part of any strong business or organization. In all three major areas of the accounting industry (Public, Private and Governmental) the CPA skill set is valued and respected as the pinnacle of professional achievement, and can equate to job promotions, travel opportunities, and personal growth.

a.Prestige, Respect and Reputation – CPAs are well respected and greatly admired by their peers, clients, and social circles. Through their experience and knowledge, their virtues, ethics, character, technical and academic proficiency are tested. You could say that CPA stands for “Commitment, Professionalism, and Achievement”. In today’s society, these qualities are valued assets in any business and this makes CPA a highly sought career among professions and a trusted voice in business and financial consulting.

b. Job Satisfaction and variety of work – In today’s financial environment accounting is an intensely vibrant field full of opportunities for travel, excitement, and job satisfaction. As the global economy becomes an increasing reality, the United States is preparing to embrace International Financial Reporting Standards. This will require a new brand of globetrotting CPA to enter the marketplace, prepared to be multilingual, multicultural, and aware of international business practices.
As a whole, CPA’s are multifaceted professionals capable of performing a variety of highly specialized job functions. Nearly every financial circumstance in every business environment can benefit from the services of a CPA.

c. Career Security – There is a shortage of experienced accounting professionals, which puts those with CPA designation even more in demand. What’s more, this trend shows no signs of slowing down. Students and young professionals that earn their CPA are guaranteed to find and secure a lucrative position of their choice. The advent of United States IFRS adoption is creating a demand for any CPA with international expertise. In a time when financial institutions are claiming bankruptcy, national economy is in recession and even home ownership seems like a distant dream, a little job stability goes a long way. Other industries are worrying about tomorrow. But, as a CPA, tomorrow could be the day you write your own ticket to financial security.

d. Personal Growth – The skills you acquire in your training to become a CPA will give you confidence in yourself and your newfound abilities. The money and prestige you gain will allow you to have the finer things in life. The CPA earns his/her stripes by enduring a rigorous course of study and training, capped off with one of the most notoriously difficult professional exams in the world: The Uniform Certified Public Accountants Examination. Once a candidate passes the exam, it’s time to get licensed, which requires jumping through some more hoops. Even better, once you’ve attained licensure, you’ve earned the privilege of working long hours doing tough, complicated, and sometimes tedious work.

e. Financial satisfaction – On average, a new college graduate with CPA certification earns as much as 10% more than a non-certified accountant in the same position. This result is based on an average, and may vary regionally. The news is even better for experienced CPAs. Salaries between $80K – $110K are common in public accounting, and these figures are likely to increase yearly, according to recent surveys.

How to Become A CPA for International Students

1. Fulfill The Education Requirements

The requirements to become a CPA are determined by the Board of Accountancy in each of the 50 states and 5 jurisdictions. Each board issues rules that are slightly different, so please refer to the CPA Exam Requirements by State for details.
(i) Minimum Degree Most states and jurisdiction requires at least a Bachelor degree (Exceptions: Delaware requires only an Associate degree). Many but not all states require 150 semester credit hours – equivalent to a Master’s Degree – as a prerequisite for the exam.

(ii) Accounting and Business Courses All states require a varying degree of accounting and business courses. There are states that require 21 semester courses of general accounting classes while a few states strictly require an accounting concentration. A number of states ask for specific classes in business laws, auditing and/or ethics.

(iii) Other Requirements Some states only allow US citizens or local residents to sit for their exams others have minimum age requirement (typically 18-21) to sit for the exam. The 150 required semester hours can be achieved by taking accounting and business courses. If choosing to take it online, please make sure that the specific state you choose allows online courses. If your degree is earned outside of the US, chances are that your university is not accredited. However, state boards still accept non-US transcript if it is evaluated by a foreign credential evaluation company.

Foreign Credential Evaluation

Some states recognize all agencies that are members of the National Association of Credentials Evaluation Services (NACES), but there are states that only recognizes FACS for example so it is important to check your State Board’s websites for details. The cost of credential evaluation ranges from US$150 – US$200 for the basic services and more if there are additional request. The evaluation process takes 4-6 weeks on a regular season and 6-8 weeks for the peak season.

2. Sit For The Uniform CPA Exam

If you fulfill the above, you are eligible to sit for the Uniform CPA Examination. This computer-based examination is administered by AICPA and is a comprehensive coverage of accounting and related fields, including business, law, and taxation. It consists of 4 parts, and you can take them one at a time and in any sequence. The Uniform CPA Exam is considered one of the toughest professional examinations and the passing rate hovers around 50% every year. Because of this, most CPA candidates opt for courses to maximize their chance of success.

Testing Window

  • January & February
  • April & May
  • July & August
  • October & November

CPA Course Contents

I. Auditing and Attestation

This section covers knowledge of auditing procedures, generally accepted auditing standards, and other standards related to attest engagements, and the skills needed to apply that knowledge.
1. Engagement Acceptance and Understanding the Assignment
2. Understanding the Entity and Its Environment
3. Performing Audit Procedures and Evaluating Evidence
4. Evaluating Audit Findings, Communications, and Reporting
5. Accounting and Review Services Engagements
6. Professional Responsibilitie

II. Business Environment and Concepts

This section covers knowledge of general business environment and business concepts that candidates need to know in order to understand the underlying business reasons for and accounting implications of business transactions, and the skills needed to apply that knowledge.

1. Corporate Governance.
2. Economic Concepts and Analysis.
3. Financial Management.
4. Information Systems and Communications.
5. Strategic Planning.
6. Operations Management.

III. Financial Accounting and Reporting

This section covers knowledge of generally accepted accounting principles for business enterprises, not-for-profit organizations, and governmental entities, and the skills needed to apply that knowledge.
1. Conceptual Framework, Standards, Standard Setting, and Presentation of Financial Statements
2. Financial Statement Accounts: Recognition, Measurement, Valuation, Calculation, Presentation, and Disclosures
3. Specific Transactions, Events and Disclosures: Recognition, Measurement, Valuation, Calculation, Presentation, and Disclosures
4. Governmental Accounting and Reporting
5. Not-for-Profit (Non-governmental) Accounting and Reporting

IV. Regulation (REG)

This section covers knowledge of federal taxation, ethics, professional and legal responsibilities, and business law, and the skills needed to apply that knowledge.
1. Ethics, Professional, and Legal Responsibilities
2. Business law
3. Federal Tax process, Procedures, Accounting, and Planning
4. Federal Taxation of Property Transactions
5. Federal Taxation of Individuals
6. Federal Taxation of Entities

Examination Format

Auditing And
Attestation
(4hours)

∙ 3 Multiple-Choice Question (MCQ) testlets consisting of a total of 90 questions (60%)

∙ 1 Testlet containing 7 short Task-Based Simulations (TBS) with the research
question in a new format (40%)

Financial Accounting & Reporting
(4hours)

∙ 3 Multiple-Choice Question (MCQ) testlets consisting of a total of 90 questions (60%)

∙ 1 Testlet containing 7 short Task-Based Simulations (TBS) with the research
question in a new format (40%)

Regulation
(Law & Tax)
(3hours)

∙ 3 Multiple-Choice Question (MCQ) testlets consisting of 72 questions (60%)

∙ 1 Testlet containing 6 short Task-Based Simulations (TBS) with the research
question in a new format (40%)

Business Environment & Concepts
(3hours)

∙ 3 Multiple-Choice Question (MCQ) testlets containing a total of 72 questions (85%)

∙ 3 Written Communication tasks on BEC topics (15%)

 

Examination Fees

Financial

Business

Auditing

Regulation

NASBA $38.75 $37.32 $39.22 $37.80
AICPA $80.00 $80.00 $80.00 $80.00
Prometric $95.40 $59.63 $107.33 $71.55
Picture Fee $4.00 $4.00 $4.00 $4.00
Subtotal $218.15 $180.95 $230.55 $193.35
International Testing Fees $292.85 $314.90 $292.85 $314.90
State Board Fees Will vary per state
State board fees will vary from each state, examples are:
Connecticut $135 Florida $50 Michigan $100 Washington $90.30