CA Vs. CPA: What is The Difference?

17 Mar 2023 0 Admin Tax4wealth 1391

Chartered Accountant vs. Certified Public Accountant: What is The Difference?

Chartered accountants (CA) and Certified Public Accountants (CPA) are two professional designations in the field of accounting, but they differ in terms of their scope and recognition.

Chartered Accountant (CA) is a professional accountant designation that is recognized in many countries including the United Kingdom, Canada, Australia, New Zealand, and India. A CA is a member of a professional accounting body and is qualified to provide accounting, auditing, tax, and financial advisory services to clients. To become a CA, one must pass a rigorous exam and fulfill other education and experience requirements set by the professional accounting body.

Certified Public Accountant (CPA) is a professional accounting designation that is recognized in the United States. A CPA is qualified to provide accounting, auditing, tax, and financial advisory services to clients. To become a CPA, one must pass the Uniform CPA Exam and fulfill other education and experience requirements set by the state in which they wish to practice.

While both designations are similar in terms of the services they provide, they differ in terms of their geographic recognition and scope of practice. A CA is recognized in many countries, while a CPA is recognized mainly in the United States. Additionally, a CA may have a wider range of practice areas, including management accounting, while a CPA may be more focused on tax and auditing.

While both designations are similar in terms of the services they provide, they differ in terms of their geographic recognition and scope

In summary, while both CA and CPA are professional designations in the field of accounting, they differ in their geographic recognition and scope of practice.

Also read; Learn About Being a CPA (Certified Public Accountant)

Key Differences Between CPA vs CA:

The key differences between a Certified Public Accountant (CPA) and a Chartered Accountant (CA) are provided and discussed below:

CPA is an abbreviation for Certified Public Accountant, whereas CA is an abbreviation for Chartered Accountant.
CPA is a globally recognized international degree, whereas CA is mostly accepted in India and to a lesser extent in a few Middle Eastern nations.
The American Institute of Certified Public Accountants (AICPA) provides a CPA program, whereas the Institute of Chartered Accountants of India (ICAI) provides a CA program.
A CPA course is much more costly than a CA course.
A person with a CPA degree is entitled to a higher salary than someone with a CA degree.
In comparison to a CA course, a CPA course is not as challenging.
Completing a CA course takes longer than completing a CPA course. The minimum time required for an aspirant to clear CA is around 4 to 5 years, whereas the least time required for an aspirant to complete a CPA course is 7 months, with a maximum duration of one year.
CPA examinations are conducted online, whereas CA exams are conducted offline.
A minimum of three years of articleship with a Chartered Accountant firm is required for a CA aspirant to get his or her CA license, but this is not required for the CPA degree.

Also read; How do I approach CA firms for an articleship?

A CPA test is a one-time online exam, whereas CA examinations are given at four levels: Common Proficiency Test (CPT), Integrated Professional Competence Course (IPCC OR IPCE), three-year articleship with a CA company, and final exam.
A CPA is knowledgeable about International Financial Reporting Standards (IFRS) as well as US Generally Accepted Accounting Principles (GAAP), whereas a CA is knowledgeable about Generally Accepted Accounting Principles (GAAP).

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CPA vs CA Comparison Table:

Let's discuss the key comparison between CPA and CA:

Basis of comparison	CPA	CA
Full form	CPA stands for Certified Public Accountant.	CA stands for "Chartered Accountant."
Recognition	CPA is an international degree that can be used in English-speaking nations such as the United States. Unlike CA, the degree is recognized all around the world.	CA is a degree that is highly respected in India and a few Middle Eastern nations.
Eligibility	This course is open to anybody with a 5-year or higher degree in business and accounting.	After completing his or her class 12 exams, an aspirant can enroll in this program.
Institute	The AICPA (American Institute of Certified Public Accountants) organizes the CPA course.	The ICAI (Institute of Chartered Accountants in India) organizes the CA course.
Job role	A CPA will be required to serve as a strategic business advisor.	A Chartered Accountant will be responsible for the company's finances, auditing, and so on.
Level of expense	A CPA course is more costly than a CA course.	In comparison to CPA, CA is less costly.
Salary	A CPA earns higher pay than a CA.	A CA is likewise given a fair income, although it is far less than that of a CPA.
Duration of the course	A CPA course might take from seven months to a year to finish.	A CA program takes four to five years to complete.
Level of exams	A CPA course consists of only one test.	A CA course has multiple levels (namely three). These levels- Common Proficiency Test (CPT) Integrated Professional Competence Course (IPCC OR IPCE) Article-ship for 3 years Final exam.
Article-ship	Not required.	In CA, an articleship of three years is required. It can be started immediately after passing the IPCC/IPCE test. Even with permission from any of the IPCC/IPCE panels, one can seek for article-ship.
Standards and Principles	CPAs are knowledgeable about IFRS (International Financial Reporting Standards) and US GAAP (Generally Accepted Accounting Principles).	GAAP (Generally Accepted Accounting Principles) is covered by CA.
Licensing	A minimum of one year of experience in finance or accounting is required to get a Certified Public Accountant license.	Each CA firm requires a minimum of three years of articleship before granting a CA license.
Online/ Offline	The CPA conducts an online test.	CA conducts an offline test.
Overall passing percentage	CPA has a 45 percent overall passing rate.	CA has a 5 percent passing rate.

Conclusion:

A candidate with at least five years of accounting and commercial experience may easily register for a CPA course. A candidate who has passed his or her class 12 examinations, on the other hand, is qualified to apply for and enroll in the CA Course. A Certified Public Accountants (CPA) duty is to act as a strategic business counselor, whereas a Chartered Accountant's (CA) responsibility is to manage the company's finances, perform an audit framework, and so on. Before enrolling in any of these programs, students must assess themselves and conduct the necessary research.

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