CA vs CPA: Which is Better, Salary in India and Abroad

When it comes to choosing a career in accounting, two prestigious qualifications come into view, namely, Chartered Accountant and Certified Public Accountant (CA vs CPA). While both these credentials open the door to exciting opportunities and good remunerations, they address the demands of different professional landscapes. 

In this blog, we will look at the comparative analysis of CA and CPA for key differences, career prospects, and salary potential both in India and abroad. Whether this is a career starter in accounting or adding one or more of these certifications to existing qualifications, understanding these differences will help you choose which one fits best with your career aspirations and goals.

This article aims to understand CPA vs CA a little closer in terms of eligibility, fees, course duration, recognition, opportunities, and exam levels to help all aspirants make a better and more informed choice.

What is the CA Examination?

The exam for CA certification is conducted by the Institute of Chartered Accountants of India, the national professional accounting body of India, to issue a certification about who is eligible to be a professional auditor in India.

Examinations for the CA certificate are conducted by the Institute of Chartered Accountants of India (ICAI), the national professional accounting body of India. The ICAI is a body responsible for determining who will be deemed a professional auditor in India. Referred to as the ICAI exam, this licensing process involves a candidate successfully passing three levels of exams: Foundation, Intermediate, and Final Course. As such, individuals would be qualified as Chartered Accountants once they clear these levels; thus, they are permitted to practice as professional auditors or accountants in India.

What are the Eligibility Criteria for CA Examination?

All CA aspirants need to fulfill specific eligibility criteria at each level. A brief of the same is summarized in the table below:

Eligibility for Foundation Course: 

• Should have appeared for the 10+2 or equivalent examination.
• Registered for foundation course or converted from CPT to Foundation course before set timelines.

Criteria for exemption from Foundation Course:

• Graduates or Post Graduates in Commerce (min 55% of total marks) or non-commerce (min 60% of total marks)
• Individuals who have passed the Intermediate Examination of the Institute of Cost Accountants of India or the Institute of Company Secretary of India

Intermediate Level: 

• Must be registered for the Intermediate Examination as per the syllabus under paragraph 2 or 2A of Schedule B, or under Professional Education (Course-II), Professional Competence Course, or Intermediate (IPC).
• Must be registered for the Intermediate Course after clearing the Foundation Course or equivalent exam and be eligible as per exemptions stated under the Foundation Course.

Final Level:

• Should have passed the Intermediate Examination or Professional Education Examination-II/PCE/IPCE/Intermediate (IPC) Examination.
• Should have completed the Advanced Integrated Course on Information Technology and Soft Skills (Advanced ICITSS) successfully.
• Should have a valid registration number on the date of application to the exam (registration to the Final Course is valid for five years).

Should fulfil one of the below requirements:

• Completed prescribed 3 years or 3.5 years, as the case may be, of articled training as on the date of filling the exam application form.
• Must be in service as of the 1st of the month in which the examination is scheduled and serving the last 6 or 12 months of the articled training based on the type of candidature.

What is the Fee Structure for CA Examination?

The examination fee for different levels and regions is summarized in the table below:

Difference between CA vs CPA:

CPA vs CA – Opportunities for Careers

CPA

• The career scope comprises professional employment in public accounting, corporate finance, tax advisory, and consulting services.
• Various designations that one can note are Audit Manager, Tax Advisor, Forensic Accountant, and Financial Analyst.
• CPA certification is regarded in the U.S. immensely; it opens ways to enter multinational firms and specific accounting fields.
• Global recognitions open more vistas in several countries, especially in accounting firms and finance departments.

CA

• Career opportunities include auditing and assurance, taxation advisory, financial advisory, and management accounting.
• Some of the designations commonly found are Audit Manager, Tax Consultant, Financial Manager, and Corporate Strategist.
• CA has good standing in India, New Zealand, and Australia, due to which many career opportunities can be availed.

CPA vs CA – Study Material

CPA

• Some of the study materials available for the CPA course are an official CPA review course, textbook, and practice exams from institutions like Zell Education. 
• The materials range over all areas of the sections that come for the exam: Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation.
• Preparation is usually done through online courses, study guides, and interactive software.
• Focus on doing an in-depth study of U.S. accounting standards, tax laws, and business regulations.

CA

• Study material includes textbooks, ICAI study modules, and past examination papers.
• Preparation involves comprehensive reading of topics related to accounting taxation, law, and financial management
• Coaching classes and revision workshops are also sought after by CA aspirants
• Indian accounting standards, tax laws, and statutory requirements are the focal points. 

CPA vs CA – Exams and Passing Criteria

CPA Exam 

Exam Sections

There are four sections namely,  Auditing and Attestation, Business Environment and Concepts, Financial Accounting and Reporting, and Regulation.

Exam Format 

Each of the above shall include multiple-choice questions, task-based simulations, and written communication tasks. The CPA exam duration is 4 hours per section.

Pass Rates and Scoring 

The passing score is 75 or higher; the average pass rate for each section varies around 50-60%.

CA Exam 

Exam Mode

Pen-and-paper mode for Foundation, Intermediate, and Final Courses.

Exam Pattern

Foundation-4 papers, Intermediate-8 papers, Final-8 papers; descriptive and problem-solving questions.

Passing Criteria

At least 40% in each paper and 50% aggregate in each group in the Intermediate and Final levels.

CPA vs CA – License Eligibility

CPA – License Eligibility

Pass the CPA Exam

One needs to pass all four sections of the CPA exam.

Experience Requirements

Generally, 1-2 years of professional experience under a licensed CPA. 

State Requirements

Completion of certain coursework; passing a state-specific ethics examination, if required.

CA – License Eligibility

Practical Training

Need to complete 3 years of articled training or practical experience under a qualified CA.

Register with the CA Institute

The student needs to get him/ her registered with the Institute of Chartered Accountants of India, popularly known as ICAI, along with following all the norms concerning training and examination.

Final Examination

To get the license, a candidate has to qualify for all three levels of examinations in CA, which are Foundation, Intermediate, and Final.

Conclusion

CA or CPA, which course to choose depends upon your career goals and geographical preferences. While both courses promise a prestigious career, each has different regional focuses and expertise. As mentioned earlier, CA is a highly valued career option in India while CPA offers enormous opportunities in the U.S. and other countries. Therefore, weigh your career goals, location, and interest in accounting practices to choose either of the above qualifications.

FAQ’s on CA vs CPA

In what ways does the CPA exam differ from the CA exam?

The CPA examination comprises four sections of MCQs and simulations, while CA has three levels with a wider range of subjects and descriptive questions. CPA is taken as a computer-based examination, while CA is taken as a pen-and-paper-based examination.

CPA or CA, which is better?

Which one would be more valued between CPAs and CAs would depend on location and career goals. For instance, CPAs are mostly preferred in the U.S., while CAs have a high value in Commonwealth countries.

Is it CPA or CA who earns more?

The general perception is that CPAs have a high level of pay in the United States because of their high demand for specialization. CAs are also well paid in India, taking into consideration their experiences.

Is it harder to be a CPA or a CA? 

Both are tough; the CPA exams are notorious for their tricky format and diverse content, while in CA, there is extensive preparation across levels. It’s all relative since difficulties vary from person to person.

Anant Bengani, brings expertise as a Chartered Accountant and a leading figure in finance and accounting education. He’s dedicated to empowering learners with the finest financial knowledge and skills.