The CPA Exam (Uniform Certified Public Accountant Examination) is a rigorous standardised test taken by individuals who want to become licensed Certified Public Accountants (CPAs) in the United States. 

A Certified Public Accountant (CPA) is a finance professional who has passed the rigorous CPA exam, typically has a Bachelor’s Degree in Accounting or a related discipline, and one to two years of relevant work experience under the supervision of a licensed CPA.

These finance professionals are well-versed with financial accounting and reporting, auditing, regulations (including tax laws), and business environments and concepts. CPA is a globally recognised certification and if you clear the good exam, you can expect to get hired by:

• Public accounting firms,
• Private companies,
• Government agencies, and
• Non-profit organisations.

One of the biggest benefits of doing CPA is that you can work independently and offer accounting and financial services to a variety of clients.

Who conducts the CPA exam?

The American Institute of Certified Public Accountants (AICPA) conducts the CPA exam in conjunction with the National Association of State Boards of Accountancy (NASBA). NASBA oversees its administration while the AICPA develops and maintains the exam content and scoring standards. 

International candidates can also take the CPA exam at designated testing centres outside the US.

Basics of The CPA Exam

The CPA Exam Format

The CPA exam has four major sections:

• Auditing and Attestation (AUD): Focuses on auditing principles, procedures, and ethics.
• Financial Accounting and Reporting (FAR): Covers financial statements, standards, and reporting for various entities.
• Regulation (REG): Examines tax rules, regulations, and IRS procedures.
• Business Environment and Concepts (BEC): Assesses knowledge of business operations, technology, economics, and corporate governance.

Each of these exam is 4 hours long and combines:

• Traditional multiple-choice questions, 
• Analytical task-based simulations requiring real-world application of knowledge, and 
• Written communication tasks assessing critical thinking and communication skills.

Candidates must score at least 75 marks in each section of the CPA exam to pass it.

What are the benefits of doing CPA?

Becoming a Certified Public Accountant can open doors of many exciting career opportunities with fat pay packets for you – in various fields of finance and accounting. It might be a good fit for SMS Varanasi students who:

• enjoy working with numbers and solving problems,
• have strong analytical and critical thinking skills,
• possess excellent communication and interpersonal skills,
• are detail-oriented and organised, and
• are pursuing a B.Com or B.Com (Hons) degree.

How much can you earn if you do CPA preparation well?

Let’s start with the good news! An entry-level CPA in India earns around 6 lakhs per annum. Experienced CPAs with 5+ years of experience earn significantly more – somewhere in the range of 15-25 lakhs per annum.

SMS Varanasi students should also know that salaries are generally higher in metropolitan cities, like Mumbai, Delhi, Bangalore, Chennai, and Hyderabad, where freshers can get a salary package of up to 13.8 lakhs per annum.

The Big 4 accounting firms (KPMG, Deloitte, PwC, and EY) and multinational companies typically offer higher salaries – in the range of 12.5 lakhs per annum up to 23 lakhs per annum.

Those working in the US may earn even more. In the US, freshers often start in the range of $60,000 to $80,000 per year while those with experience can earn $90,000 to $120,000 or even higher – depending on their specialisation.

Some of the niche CPA specialisations that can attract higher earnings are forensic accounting or tax expertise.

Besides the US, CPAs are also in demand in countries like Canada, Australia, and Singapore. Indian CPAs with a strong understanding of both Indian and US accounting standards and regulations are in high demand in these areas.

Most Practical CPA Preparation Tips for SMS Varanasi Students

The CPA exam can be taken in parts. Hence, B.Com and B.Com (Hons) students of SMS Varanasi are advised to study and test at their own pace to boost their earning potential.

The cost of preparing for and taking the CPA exam can be significant. Here is a glimpse of the exam fees you will have to pay if you want to become a Certified Public Accountant:

• AICPA Exam Fees: $1,000 for all four sections (around INR 83,000) or $250 (around INR 21,000) per section.
• International Testing Fee: $1,486 (around INR 1,25,000) for taking the exam outside the US.
• Application Fee: $100 (around INR 8,300).

You will also have to consider the cost of study materials and courses you opt for. For example, review courses generally range from INR 70,000 to 2,00,000 depending on the provider, format (live/online), and coverage (all sections/individual sections).

The textbooks, study guides, and practice questions for the CPA exam can range from INR 10,000 to 30,000.

Overall, you can say that preparing for the CPA exam and taking it in India can cost you anywhere between INR 3,00,000 to Rs. 5,00,000 or even higher.

Here’s a helpful table summarising the cost breakdown:

Cost Category	Estimated Range (INR)
AICPA Exam Fees	83,000
International Testing Fee	1,25,000
Application Fee	8,300
Review Courses	70,000 – 2,00,000
Study Materials	10,000 – 30,000
Transportation & Accommodation	Variable
Miscellaneous	Variable
Total Cost	3,00,000 – 5,00,000+

Check Out: Future-Proof Your B.Com: Start Studying For The CPA Exam Now

Some of the most popular international CPA preparation course providers are:

• Becker Professional Education: Partnering with EduPristine in India, it offers a popular review course known for its high-quality materials, intensive instruction, and adaptive learning technology.
• Gleim CPA Review: Provides comprehensive study materials in print and online formats – with a focus on multiple-choice questions and simulations.
• Roger CPA Review: This is renowned for its engaging video lectures by Roger Phillip (a popular CPA exam instructor) and a practical learning approach.
• Wiley CPAexcel: It offers self-paced online review courses with adaptive learning technology and personalised study plans.

You may also opt for:

• AICPA’s CPA Review: It’s the official review course developed by the American Institute of Certified Public Accountants.
• Udemy and Coursera: You can find plenty of CPA review courses from different providers on these online platforms.

In the end, we want to say that the CPA Exam can be a gateway to unparalleled career opportunities for SMS Varanasi graduates. It offers you international recognition and boosts your earning potential considerably – both in India and abroad.