CPA Full Form: CPA Meaning and Its Significance

Do you know what is the CPA Full Form? CPA full form stands for Certified Public Accountants. CPA is an abbreviation in the finance category. The CPA certification is a highly valued and adaptable certificate for accountants and represents the highest level of proficiency in the accounting profession internationally. Check out our blog for all the necessary CPA test information.

The American Institute of Certified Public Accountants administers the test (AICPA). Aspirants must pass the Uniform CPA Examination in order to get this widely recognized title. The Chartered Accountant (CA) title is the equivalent of a CPA in India.

Brief History of CPA Full Form

The American Association of Public Accountants (AAPA), founded in 1887 by 31 accountants, established the standards for the accounting profession. The CPA test is administered by this organization, which was renamed the AICPA in 1957. The “Enron Corporation controversy” occurred in 2001, and it was a significant scandal for the sector. Sources claim that the company’s executives misled authorities by displaying fictitious holdings and bad accounting procedures.

As a result, the Sarbanes-Oxley Act was established in 2002, and as a result, accountants are now required to adhere to tight guidelines for their consulting jobs. Following this, the general practises of the accounting sector underwent a significant change, which increased the need for certified accounting professional positions.

Eligibility Criteria for CPA

A person must have the necessary training and experience to become a CPA, preferably with certification from accounting schools that demand the following:

CPA Eligibility Criteria: Each state has its own requirements for taking the CPA test, although some common requirements are as follows-

  • Candidate must have a minimum Bachelor’s or equivalent degree
  • A candidate must take 150 semester hours of college coursework to earn a CPA license.
  • Under any CPA, a candidate should have 1-2 years of experience

Remember that eligibility criteria differ for US states and other countries.

CPA Eligibility Criteria for Indians: A minimum of one of the following requirements should apply to Indian students-

  • They ought to be ICAI, ICMAI, or ICSI members.
  • They can have an MBA or M.Com degree in addition to belonging to one of these organizations.

CPA Exam Sections

The CPA test lasts four hours and is broken down into four sections. These tests are designed to evaluate a candidate’s knowledge and skills.

The time limit for each section of the CPA exam is 4 hours. Classes include:

1. Auditing and Attestation (AUD) – The following subject topics may be covered in this section’s questions:

  1. Drawing conclusions and reporting
  2. Carrying out further procedures and obtaining evidence
  3. Assessing risk and developing a planned response
  4. Professional Responsibility, Ethics and General Principles

2. Business Environment and Concepts (BEC) – Questions from this section may include the following topics:

  1. Corporate governance
  2. Operations Management
  3. Financial management
  4. Economic Concepts and Analysis
  5. Information technology

3. Financial Accounting and Reporting (FAR) – This section include the following questions:

  1. Transactions
  2. Local and State Governments
  3. Financial Statement Accounts
  4. Conceptual Framework, Standard-Setting, and Financial Reporting

4. Regulation (REG) – This part will consist of the following concept-based questions:

  1. Business Law
  2. Entity Federal Taxation
  3. Property Transaction Federal Taxation
  4. Individual Federal Taxation
  5. Ethics, Professional Responsibilities, and Federal Tax Procedures

You are permitted to take as many examinations as you like within the same testing period, but you are not permitted to take the same portion of an exam more than once. If you fail a portion of the exam, you won’t be able to repeat it until the next testing session starts.

CPA exam credits are valid for 18 months

You have 18 months to take and pass all four CPA test portions. Once you pass the first exam portion, a rolling 18-month timeframe will start.

Therefore, you have 18 months to pass the other 3 CPA exam portions after passing the first component of the test. In the event that 18 months pass and you haven’t passed all four CPA test sections, you forfeit credit for any portions that you passed outside of that time frame and must repeat the CPA examinations within 18 months after your previous exams.

CPA Exam Structure

The CPA exam is divided into three test lets: MCQ, task-based, and written communication. Task-based simulations have gained prominence during the last few years. With the exception of BEC, MCQs and simulations are equally weighted. You get 50% of your points from MCQs and the remaining 50% through simulations. The grade weighting for each topic/section on these test lets has likewise been split by the AICPA.

SectionAUDBECFARREG
Multiple-Choice Questions (MCQs)50%50%50%50%
Task-Based Simulations (TBSs)50%35%50%50%
Written Communication TasksN/A15%N/AN/A

CPA Exam Cost

1. Application Fee- Depending on the state, the application fee is approximately $50-$200 (approximately Rs. 4,100 to Rs. 16,400).

2. Examination Fee- Around $193.45 (roughly Rs. 15,862) for each section.

3. Registration Fee- Depending on the state, applicants can register for one component at a time or group all sections together and pay a registration fee to reduce total costs. The Notice to Schedule (NTS) is valid for 6 months, therefore if you sign up for all four portions at once, you must schedule and attend for all four sections within the following 6 months, otherwise, the NTS will expire. The following is a list of CPA exam registration fees:

  • When you only see one part at a time- $63 (around Rs. 5,100)
  • When you take two sections at a time- $81 (approx. Rs. 6,600)
  • When you take three sections at a time- $99 (approx. Rs. 8,100)
  • when you take four sections at a time- $177 (approx. Rs. 14,500)

4. Ethics Fees- After passing the standard CPA test, several states require passing an ethical exam before granting a license. The ethics exam costs between $150 and $200 (Approx. Rs. 12,300 to Rs. 16,400).

5. CPA Licensing Fees- Candidates who pass the standard CPA exam and the ethics exam are eligible for a license, which costs between $50 and $500 per year depending on the state. The licensing fees must be necessary to pay every year in perpetuity in order to keep a CPA license active and practice CPA.

6. Continuing Professional Education (CPE) for CPA Exam- Many states require 40 hours of continuing education each year for public accountants to remain current with industry practices and developments. As a result, the approximate cost for this CPE might be as little as $800 per year and as high as $5000.

The CPA Exam Conducts in India

The CPA exam is conducted in India at Prometric test centres in Ahmedabad, New Delhi, Mumbai, Calcutta, Chennai, Bangalore, Hyderabad, and Trivandrum.

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Other CPA Full Forms

Other related CPA Full Forms list in various categories-

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Frequently Asked Questions- What Is CPA Full Form?

Q.1. What is the Full Form of CPA in Accounts & Finance?

Answer: The CPA Full Form in Accounts & Finance is Certified Public Accountants.

Q.2. What is the CPA Full Form in Google Ads?

Answer: In Google Ads, the full form of CPA is Cost Per Action.

Q.3. In which cities of India CPA exam is conducted?

Answer: In the following cities in India, the CPA exam is conducted- Ahmedabad, New Delhi, Mumbai, Calcutta, Chennai, Bangalore, Hyderabad, and Trivandrum.

Q.4. What is the CPA Full Form in Hindi?

Answer: The Full Form of CPA in Hindi is प्रमाणित लोक लेखाकार (CPA).

Q.5. What is the CPA Full Form in Digital Marketing?

Answer: The CPA in Digital Marketing stands for Cost Per Action.

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CPA Full Form