What is US CPA Eligibility Criteria in India?

The Certified Public Accountant course (US CPA) is a professional accounting course governed by the AICPA. AICPA stands for American Institute of Certified Public Accountants which is a US-based accounting body. Now that the US CPA eligibility for exam can be given from anywhere within India, there has been a massive surge in the number of CPA applicants in the past couple of years.

What is US CPA Eligibility Criteria in India?

The US CPA eligibility criteria can differ based on the state in which you are applying. If you are applying for US CPA outside India, you can only apply in one of the five states that do not require applicants to have a social security number. The states in which you can apply to be a US CPA from India are Washington, Pennsylvania, Guam, Alaska and Montana.

The US has a credit-based system for the evaluation of academics and to be eligible for giving the US CPA eligibility for exam and earning the license, there are a set number of credits you need to have in your academics. Based on the Indian academic system, the eligibility criteria for US CPA can be stated as follows:

• Exam – Graduation + 1 year of Post Graduation (120 credits)

• Licence – Graduation + Post Graduation (150 credits)

In addition to these academic qualifications, the candidate also needs to gain 2,000 hours of work experience which is roughly equivalent to 2 years.

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The Course Structure of the US CPA

The US CPA courses consist of 4 papers. Each of these papers can be given on demand in the months of January, February, April, May, July, August, October and November.

• Auditing and Attestation (AUD) 
• Financial Accounting and Reporting (FAR) 
• Regulation (REG) 
• Business Environment and Concepts (BEC)

Educational Requirements

To sit for the US CPA exam, candidates must meet the educational requirements set by the state they are applying to. These requirements follow the credit-based system used in the US education system.

Credit Hour System and Its Implications

In the US, education is measured in credit hours, and each course or class in a degree program carries a certain number of credits. To be eligible to take the US CPA exam, you need to have a minimum of 120 credits from your educational background. For Indian candidates, this translates to having a 3-year undergraduate degree (such as a B.Com) and at least 1 year of postgraduate education (such as M.Com or a specialized diploma).

Recognized Degrees and Certifications

For Indian candidates, the most common recognized qualification for the CPA exam is a combination of a B.Com and M.Com. Candidates with a Bachelor’s degree in accounting or related fields and additional postgraduate education are considered eligible. However, the course credits and academic performance will be reviewed by the state board, and in some cases, additional coursework might be required.

Experience Requirements

Candidates are also required to have work experience in accounting or related fields, which is essential to earn the CPA license post-exam.

Relevant Work Experience

The work experience requirement is generally 2,000 hours of relevant accounting work, which is approximately equivalent to 2 years of full-time employment. This experience can be gained before or after passing the CPA exam, but it must be verified by a licensed CPA.

Verification Process

Once you have gained the required work experience, you need to have it verified by your employer or a licensed CPA. The verification process is essential for ensuring that the candidate’s experience aligns with the requirements set by the state board for CPA licensure.

How to Apply for US CPA

If you are planning to apply for US CPA, you can do so by taking the following steps.

1. Evaluation

The process of evaluation is done to assess whether you are eligible to give the US CPA eligibility for exam. You can get your academic evaluation done through different platforms such as the World Education Services (WES) and NASBA International Evaluation Services (NIES).  During the evaluation, your local academic transcripts, i.e. mark sheets will be assessed and translated in such a way that a U.S. based evaluator can understand them. After evaluation, you can submit your academic transcripts and register for the US CPA exam.

Selecting the Appropriate State Board

Different states in the US have different eligibility requirements for candidates. You need to choose a state board that fits your academic profile and allows foreign candidates to apply without an SSN. Washington, Pennsylvania, Guam, Alaska, and Montana are the states that most Indian candidates apply to.

Credential Evaluation Agencies

To begin the process, candidates must have their educational credentials evaluated by credential evaluation agencies like World Education Services (WES) or NASBA International Evaluation Services (NIES). These agencies assess your transcripts and convert them into a format understood by US evaluators.

2. Registration and payment 

Once your evaluation is complete, you can proceed with your process of registration. During the registration process, You need to pay the registration fees and submit your academic transcripts. After you get your authorization to test, you can lay your exam fees and wait for your NTS (Notice to Schedule). 

Fee Structure Breakdown

The registration fees can vary, but generally, the total costs, including application, evaluation, and examination fees, can amount to approximately INR 3.2 to INR 3.6 lakhs. This includes training costs, exam fees, and additional charges for evaluations.

Authorization to Test (ATT) and Notice to Schedule (NTS)

After registration and payment, candidates will receive an Authorization to Test (ATT) and a Notice to Schedule (NTS), which is required before you can schedule your exam. Once you have the NTS, you are authorized to take the exam in one of the available testing windows.

3. Scheduling and Taking the Exam 

After getting your NTS, you can now schedule the date and time of your exam based on the slot availability. After the exam, once you complete your 2000 hours of work experience, you can apply for the CPA license. 

The process of registration for US CPA can be quite confusing since it involves a lot of technical procedures. At Zell Education, we offer complete registration support for our US CPA students so that all they need to focus on is their preparation for the exams.

Prometric Testing Centers in India

Prometric centers are spread across major cities in India. These centers are authorized to conduct the US CPA exams and offer a secure, professional environment for candidates to take the test.

Exam Day Expectations

On the day of your exam, it is essential to arrive early and carry all necessary documents as required by the exam center. The US CPA exam consists of four parts, and each paper is computer-based. The exam will test you on different topics ranging from financial reporting to regulation.

Post-Exam Requirements

Obtaining the CPA License

Once you pass the CPA exam, there are additional steps to be taken before you can officially receive your CPA license.

Ethics Exam

Some states may require candidates to pass an ethics exam as part of the licensing process. This exam tests your understanding of ethical principles and professional conduct in accounting.

Continuing Professional Education (CPE)

CPAs must maintain their knowledge and skills by engaging in Continuing Professional Education (CPE). Depending on the state board’s requirements, this can involve attending courses, webinars, and seminars related to accounting and finance.

Challenges and Solutions for Indian Candidates

Overcoming Credit Hour Deficiencies

Some candidates may not meet the 120-credit requirement based on their academic background. In such cases, additional coursework can be taken to meet the credit requirement. Many Indian universities and online platforms offer supplementary courses that can help fulfill the credit hour deficit.

Gaining Relevant Experience

Gaining the required 2,000 hours of relevant accounting experience can be challenging for some candidates. However, internships or entry-level jobs in accounting firms or finance departments can help fulfill this requirement.

Navigating State Board Requirements

Different state boards have specific requirements, and it’s important to understand these before applying. Candidates should consult with professionals or institutions that specialize in CPA applications to navigate state-specific requirements effectively.

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FAQs on US CPA Eligibility Criteria in India:

Can I do CPA after Class 12?

No, you need to have 120 credits to be able to appear for the US CPA exams. In India, you can only do so with 3 years of B.Com and at least 1 year of M.Com.

How much is the total cost of US CPA?

The total cost of the US CPA course in India, including the registration fees, evaluation fees, exam fees and training costs, can be anywhere between INR 3.2 to INR 3.6 lakhs

Can I work in Canada after US CPA?

Yes, since CPA Canada and CPA US have an MRA, you are eligible to gain a CPA Canada licence if you are already a US CPA.

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.