Why US CPA?

GUIDANCE FOR ACQUIRING CPA USA

OVERVIEW AND BENEFITS

  1. US CPA enables accountants to run practice in USA, helps in securing high salary and top management roles, is the most respected qualification is Middle East & Far East, also enables accountants to become CA with top international CA bodies under the Mutual Recognition Agreement (MRA), and several other benefits.
  2. US CPA qualification also opens the door for professional accountants to provide outsourcing services to USA businesses and practices. One of the reasons for Indian Accountants to gain access to US outsourcing work is the fact that a large number of Indian accountants possess this qualification or employ the staff holding this qualification.
  3. Pakistani nationals are eligible to sit in CPA Exam in Dubai or Abu Dhabi, they can visit on visit visa and take their exam. Candidates can now also go to KSA, Bahrain and Kuwait, Lebanon, UK, Germany and Nepal to sit for the exam.

 

  1. AVAILABLE ROUTES
  2. Graduates
  • Graduates are better placed and they can be evaluated by any states for the exam.
  1. Professional
  • Professionals like CAs without a degree are also eligible to take the exam in few states like Montana and Washington.
  • Professional qualified may not be required to undergo practical experience if they have got sufficient professional experience under the supervision of CPAs or Chartered Accountants from bodies having MRAs.
  • Members of MRAs bodies such as Scottish/Irish CA only need to give 1exam under MRA called IQEX (Regulation paper) to become US CPA.
  • After becoming US CPA one can give CIMA, Strategic Case Study Exam to become Chartered Global Management Accountant (CGMA)

 

  1. THE PROCESS TO GAIN CPA DESIGNATION

 

  1. Pre-requisite education
  • Eligibility education requirements may differ between different states. For example, certain states do not accept professional qualification and only accept university degree as pre-requisite qualification to attempt CPA exams.
  • Degree of 150 credit hours, within which 24 accounting and 24 business credits. Now, most of the states have started offering option of 120 credit hours with one year’s additional work experience requirement.
  • Few states allow 120 or less credit hours to take the exam such as (Alaska, Guam, New Hampshire, Montana)

Link: https://way2uscpa.com.pk/process-to-become-uscpa/

  1. Uniform Exam Papers

The exams consist of 3 core papers and one optional paper. Exams throughout all the states are common and conducted by AICPA through Prometric Testing Centers detailed as follows:

  • Auditing and Attestation: (4 hours) (78 MCQs 50%, 7 Tasks Based Questions 5%)
  • Financial Accounting and Reporting (FAR): (4 hours) (50 MCQs 50%, 7 Task Based Questions 50%)
  • Regulation (REG): (4 hours) (72 MCQs 50%, 8 Task Based Questions 50%)
    • US Federal Tax
    • US Business Law
    • US Business Ethics
  • Optional Paper: (4 hours) 50- 82 MCQs 50%, 6-7 Task Based Questions 50%). One paper to choose from Business Analysis and Reporting, Tax Compliance & Planning and Information Systems & Controls.
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  • Passing Score is 75%
  • Candidates have to complete all the papers in 30 Months’ time from the date of passing the first paper, otherwise the pass of first paper will lapse and so on.
  1. Experience
  • Some states require 1 year and some require 2 years of experience but most of them require 1 year of experience. The candidates choosing option of 120 credit hours education requirement have to gain one year’s additional experience.
  • The nature of practical experience requirement varies in different states, some examples are:
    • Under a US CPA
    • Only to be verified by a US CPA
    • Under any professional accountant
    • With an accounting practice or a firm
    • With any businesses
    • With Government departments
    • With academia

 

  1. ROLE OF DIFFERENT US BODIES

There are four bodies with whom candidates have to deal through the process of becoming CPA:

  • AICPA: Responsible for the development of papers and scoring of examination.
  • State Boards: Has the authority to register and allow the candidates to attempt the uniform exam conducted by AICPA.
  • National Association of State Boards of Accountancy (NASBA): Helps the state boards, coordinate their activities and maintains the national candidate database. It provides a forum for regulators and practitioners to address issues relevant to the profession. It also provides the services of evaluation of foreign education credentials of candidate for most of the states as well as evaluation of practical experience of candidates for some state.
  • Prometric: Responsible for the delivery of the exam to approved test centers, scheduling candidate test appointments, test administration, and return of results to the AICPA for scoring.

 

  1. STEPS FOR CA PAKISTAN BECOME A US CPA

STEP -1 Foreign Academic Evaluation:

  • Candidates need to have foreign evaluation done by NASBA (NIES) International evaluation service or others.
  • Evaluation takes about 5-8 weeks
  • Fee is $225 – $350. Currently the NASBA charges $250.
  • Evaluation is done against US Bachelor degree.
  • Candidates generally need 150 credit hour degree equivalence (18-24 accounting credit hours in earlier studies) and (21-24 credit hours in business subjects). In future most of states will be providing the option of 120 credit hours along with one year’s addition work experience.
  • Few states allow registration for candidates with 120 hours equivalency.
  • CA Pakistan is usually evaluated equivalent to 120-126 credit hours by NASBA. This is very suitable for ICAP members without holding any degree.

STEP -2 Apply for Exam with State Board:

  • Candidates select their board at the time of evaluation
  • Apply for registration with selected state board with a fee ranging between $100 – $200.
  • The process takes 3-4 weeks
  • A letter for registration is issued which is valid for 90 days to schedule exams.

STEP -3 Schedule Exam with Prometric:

  • Candidates are required to apply to NASBA within 90 days of receiving the letter for registration after which they issue the notice to schedule exam.
  • NASBA charges candidates the fee for papers and takes 2-4 weeks. It issues a document called notice to schedule exam after which candidates are required to log in and book online.
  • One can select test location and available time, for example, Dubai or Abu Dhabi.
  • Exams for core subjects are held daily on working days, except in each quarter for the last 15-20 days there are no exams.

STEP -4 Applying for CPA License:

  • After passing CPA exams candidates can apply for CPA Licensure (membership)
  • Sometimes candidates have to add more credit hours to get at least 150 credit hours of university education.
  • Additional credit hours are gained in around three years.
  • However, there are two states where adding further credit hours is not required as they issue non-active licensure.
  1. OTHER RELEVANT INFORMATION

 

  1. Fees and Scheduling of Exams:
  • Normal fee to take CPA exam is around $800 – $900 for four exams in USA
  • At international centers, it costs around $510per paper plus Normal fee as above.
  • There is a room for candidates to change their exam schedule.
  • There are only 4 states (out of 55 states and territories) those do not hold exams internationally

 

  1. Exam Centers:
  • Pakistani nationals are eligible to give their US CPA exams directly in USA or by visiting its international testing centers situated in Europe (England, Scotland, Ireland, and Germany) and Middle East (Bahrain, Lebanon, Kuwait, and UAE) and Nepal.

 

  1. How to complete credit hours

The CAs who are interested to make up 150 hours can take university courses offered for this specific purposes in Pakistan. For example, University of Lahore offers:

  • 30 credit hours courses twice a year. The program is MS Accounting & Finance for Professionals dully approved by HEC (Structure of program is attached)
  • Each course carries 3 credits and thesis of 12 credit hours (replaceable with three courses at candidate’s option)
  • A candidate can take maximum 3 courses in a semester of six month period.
  • In third semester candidate will complete a research thesis (or 3 subjects in lieu of thesis)
  • It is not mandatory for candidates to attend classes in person online live classes and webinars are available. All the exams are to be taken in person.
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  • To make education deficiency the candidates may also attend a post-graduate diploma comprising 30 credit hours over the duration of 32 weeks. This diploma is available to local and international candidates through online live classes and remotely proctored exams.

 

  1. WAY FORWARD FOR ICAP

Considering the opportunities in USA, the Institute may provide the following career support to interested members:

  1. Identify service providers who can assist ICAP members in completing the whole process of obtaining CPA designation.
  2. An open request for expression of interest may be circulated in media for such service providers.
  3. Negotiate with local universities to offer courses required for the eligibility of CPA. The preference should be for online courses so that wider range of membership can avail the opportunity.