The CPA exam and the CA exam are two of the most prestigious exams Commerce students prepare for. And many of them are confused about which one to choose. So, here’s a detailed CPA vs. CA article for you – based on expert insights – to help you choose between CPA and CA based on your personal career goals, interests, and financial conditions.

CPA vs. CA: A Quick Overview

CPA (Certified Public Accountant):

• Conducted By: The CPA exam is administered by the American Institute of Certified Public Accountants (AICPA) in the US, focusing on the US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
• Designation: A Certified Public Accountant is considered an expert in accounting, auditing, taxation, and financial reporting.
• Career Implications: Cracking the CPA exam successfully opens doors to diverse careers in public accounting firms, corporations, consulting, and beyond. It has a very high earning potential and increases your chances of getting global job opportunities.

CA (Chartered Accountant):

• Conducted By: An Indian thing, the CA exam is conducted by the Institute of Chartered Accountants of India (ICAI) and it focuses on Indian Accounting Standards (AS).
• Designation: A Chartered Accountant is considered a master of financial management, taxation, and corporate law within India.
• Career Implications: Once you clear all three levels of the CA exam successfully, it provides access to prestigious roles in public accounting firms, corporate finance, and government positions. Traditionally, CAs have been making good money in India.

Factors to Consider While Choosing Between CPA and CA

Both these designations offer lucrative salary packages and a promising future. Some of the most important things that you might want to consider while choosing between CPA and CA are:

• Difficulty level of the exam,
• Cost you will incur (in terms of time and money),
• Earning potential after clearing the exam, and
• Whether you want to work in India or abroad.

Difficulty Level of the CPA vs. CA Exam

Here’s a statistic that might change your perception about CA and CPA exams forever. 40-50% of Indian candidates who appear for the CPA exam clear it, whereas only 10-15% of candidates appearing for the CA exams are able to clear all three levels. Hence, we can say that the CA exam is more competitive than the CPA exam.

That said, we need to consider what one needs to study for both of these exams and what their exam formats are.

The CPA Exam

Moderately difficult, the CPA exam offers you a broader global perspective. The exam is divided into four sections:

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

Each section is four hours long. You can take them together or one by one. The exam is offered 4 times per year at global testing centres. In the exam, candidates have to solve multiple choice questions, simulations, and written communication tasks.

Read more: Take The CPA Exam For A Breakthrough In Your Career

The CA Exam

Highly challenging, CA offers you the in-depth expertise of Indian Accounting Standards (AS), tax, and corporate law. It has three levels:

• Common Proficiency Test (CPT), 
• Intermediate Course (IPCC)/Integrated Professional Competence (IPC), and 
• The Final Exam. 

Graduates can straightaway sit for the Intermediate Exam. In the CA exam, candidates have to solve multiple-choice questions and answer descriptive questions at each level. In the Intermediate Syllabus, there are 6 Papers covering 9 subjects and approximately 95 Chapters. The 6 papers are divided into 2 groups of 3 papers each – Group 1 & Group 2.

Group 1 covers:

• Advanced Accounting List
• Corporate and Other Laws List
• Taxation List

Group 2 covers:

• Cost & Management Accounting List
• Auditing and Ethics List
• Financial Management and Strategic Management List

Direct-entry candidates (graduates who sit for Intermediate Exam directly) have to appear for both the groups.

The exam is held twice every year – primarily in India; though there are a few international examination centres too.

Cost You Will Incur on CPA vs. CA Exams

The CPA Exam

To take the CPA exam, you need a Bachelor’s degree and 1 year of relevant work experience. 

The breakup of CPA Exam Fees is as follows:

• The CPA Exam Fee is $1000 or about INR 83,000.
• The International Testing Fee is $1500 or about 1,25,000.
• Evaluation Cost is $225 or about INR 18,700.

So, the overall CPA exam cost is $2725 or INR 2,26,700 without the training fee.

The study materials cost an additional INR 10,000-30,000. You may also opt for review courses that may cost you around INR 70,000 to 2 lakhs.

The exam offers you more flexibility as B.Com students can start preparing for it along with their college studies – and create a study routine that allows them to prepare B.Com courses and CPA topics simultaneously.

Do not forget that continuous learning is an important aspect of CPA membership because the accounting and finance industry is constantly changing. If you do not use Continuing Professional Development (CPD) to stay up-to-date with business trends and improve your skills, you risk losing the CPA membership.

The CA Exam

With a B.Com degree in hand, you can straightaway sit for the Intermediate exam. After 10+2, students have to sit for the CPT exam first. To become a CA, one has to clear the Final level of the exam and do 3 years of CA Articleship (internship). 

The total exam fees for all levels of the CA exam is around INR 72,000 and the study materials cost roughly 20,000-30,000 INR per level. 

The breakup of CA Exam Fees is as follows (for Direct Entry candidates):

• Intermediate Exam (Both Groups): INR 18,200
  • Registration Fee for Both Intermediate Groups: INR 15,000
  • Student Activities Fee: INR 2,000
  • Registration Fee as an Articled Assistant: INR 1,000
  • Additional Fee for Direct-Entry Route Candidates: Rs 200

• Practical Training Fee for Intermediate Exam: INR 13,500
  • Integrated Course Information Technology (ICIT) Fee: INR 6,500
  • Soft Skills: INR 7,000

• Articleship for 3 Years: INR 2,000

• Practical Training Fee for Finals Exam: INR 14,500
  • Integrated Course Information Technology (ICIT) Fee: INR 7,000
  • Soft Skills: INR 7,500

• Articleship for 3 Years: INR 2,000

• Fees for CA Final Exam: INR 22,000

The CA exam preparation requires intense dedication. Hence, we advise B.Com students to take it up after they graduate as they will have to complete the demanding 3-year Articleship to become a Chartered Accountant successfully.

Earning Potential of CPA vs. CA Exams

The CPA Exam

As mentioned above, a Certified Public Accountant can make a career in public accounting, corporate finance, consulting, government, and internal audit – both in India and globally. In India, a CPA typically earns between INR 40 lakhs to 1+ crore. Abroad, they can earn even more.

The CA Exam

As we all know, CAs command prestigious positions in public accounting, corporate finance, investment banking, industry, and government primarily within India. The designation holds some recognition in the Middle East. A CA can also make anywhere between 40 lakhs to 1.5+ crores.

CPA vs. CA = International vs. Indian Opportunities

The allure of both CPA and CA is undeniable. But here lies the key difference between the two.

The CPA Exam

The CPA opens doors to international exposure, lucrative positions in multinational firms or MNCs, and the flexibility to work anywhere in the world. 

Besides the US, some of the other countries that hire CPAs include:

North America

• Canada: Canada has its own Chartered Professional Accountant (CPA) designation, but US CPAs can often work there after completing a bridging program and meeting specific experience requirements.
• Mexico: US CPAs are increasingly sought after in Mexico due to growing international business ties and the demand for internationally qualified accountants.

Europe:

• Ireland: Ireland recognizes the US CPA designation and offers a simplified process for US CPAs to obtain the Chartered Accountants Ireland (CAI) qualification.
• United Kingdom: While the UK has its own Chartered Accountant (ACA) designation, US CPAs can work in certain accounting roles and may be able to pursue further qualifications to become UK Chartered Accountants.
• Netherlands: The Netherlands recognizes the US CPA designation and allows US CPAs to register as registered accountants in the country.

Asia:

• India: Although India has its own CA designation, US CPAs can work in India in certain capacities – particularly for multinational companies or in consulting roles.
• Hong Kong: Hong Kong recognizes the US CPA designation and allows US CPAs to work in public accounting without additional qualifications.
• Singapore: Singapore recognizes the US CPA designation and allows US CPAs to work in public accounting with some additional requirements.

Middle East:

• United Arab Emirates (UAE): The UAE recognizes the US CPA designation and allows US CPAs to work in public accounting or for multinational companies.
• Qatar: Similarly, Qatar also allows US CPAs to work in public accounting or for MNCs.

Australia and New Zealand:

• Australia: Australia has its own CPA designation, but US CPAs can work in certain accounting roles and may be able to pursue further qualifications to become Australian CPAs.
• New Zealand: New Zealand recognizes the US CPA designation and allows US CPAs to work in public accounting with some additional requirements.

While the CPA designation holds weight internationally, there are still certain countries where it might not provide an immediate advantage in the job market. Countries where CPA doesn’t hold much ground (as they have their own respective accounting qualifications) include Germany, China, Japan, and France.

The CA Exam

The CA, on the other hand, promises deep-rooted mastery of India’s financial regulations and can lead to potential partnerships with established local firms. It can fast-track your career to leadership roles within India’s economic ecosystem.

Countries like the UAE, Qatar, and Oman have a significant demand for Indian CAs with relevant experience. Singapore also recognizes the Indian CA qualification for public accounting work albeit with some additional requirements.

Countries like Kenya, Tanzania, and Uganda have growing economies and Indian CAs with relevant experience are considered potentially valuable candidates there. 

Our neighbouring countries like Nepal and Bangladesh share some cultural and economic similarities with us and hence, CAs from India can find reasonably good job opportunities there.

Can I pursue both the CPA and CA exams?

As we have discussed, the CPA exam and the CA exam can both be challenging in their own right but if you can pursue them both, they can open up some unique opportunities for you.

With both under your belt, you will have ultimate global mobility. You can find a wide range of career opportunities worldwide, especially in MNCs that have a presence both in the US and in India. Knowing both GAAP and Indian Accounting Standards mean that you will be well-versed in different financial systems and fully qualified to work as a consultant for international businesses.

Big 4 Accounting Firms (Deloitte, PriceWaterCoopers, Ernst & Young, and KPMG) often work with multinational clients and value professionals with cross-border accounting knowledge. Being a CA and a CPA at the same time, you will be uniquely positioned to handle financials for cross-border mergers and acquisitions with due diligence.

CPA vs. CA Comparison Table

Feature	CPA	CA
Organisation	American Institute of Certified Public Accountants (AICPA)	Institute of Chartered Accountants of India (ICAI)
Focus	US Generally Accepted Accounting Principles (GAAP) & International Financial Reporting Standards (IFRS)	Indian Accounting Standards (AS), tax, & corporate law
Designation	Certified Public Accountant	Chartered Accountant
Career Opportunities	Public accounting, corporate finance, consulting, government (global)	Public accounting, corporate finance, investment banking, industry, government (primarily India)
Difficulty Level	Moderately difficult	Highly challenging
Exam Format	Multiple choice, simulations, written communication	Descriptive papers
Number of Levels	4	3 (CPT, IPCC/IPC, Final)
Pass Rates	40-50%	10-15%
Eligibility	Bachelor’s degree & 1 year of relevant work experience	B.Com degree (Direct Entry for Intermediate Exam)
Cost (INR)	Exam: 2,26,700 + Materials: 10,000-30,000 + Review Courses: 70,000-2 lakhs	Exam: 72,000 + Materials: 20,000-30,000 per level + Articleship: 2,000
Time Commitment	Flexible; can start during B.Com	Demanding; requires 3-year articleship after Intermediate Exam
Earning Potential (INR)	40 lakhs – 1+ crore (both India & abroad)	40 lakhs – 1.5+ crore (primarily India)
International Recognition	Strong but limited in some countries	Moderate (primarily Middle East & some Asian countries)
Suitability for Ambitious Careers	Excellent for global mobility and specialised roles	Ideal for deep mastery of Indian financial regulations and leadership roles within India

Conclusion

While choosing between  CPA and CA exams, always align your decision with your career aspirations and circumstances. While the CPA exam offers a broader global perspective with high earning potential and international opportunities, the CA exam delves deeply into Indian financial standards and promises prestigious roles within the country. 

Understanding the nuances, difficulty levels, costs involved, and potential career trajectories outlined in this comprehensive guide will empower you to make an informed decision that resonates with your individual goals and ambitions.