Everything an Indian CA needs to know to pursue CPA Canada

There are many qualified CA professionals with learning enthusiasm and exploratory spirit who plan to pursue the foreign dream after completing CA India.

CPA is a common but internationally used term, and a person holding it is equal to an Indian CA. CPAs can be found in the United States, Canada, and Australia.

This article will teach you everything you need to know about CPA Canada.

So, let's understand all that is important about CPA Canada and the opportunities associated with it. 

CPA Canada and why you should pursue it?

If you are a CA in India and want to work and live in Canada, then you have the option of enrolling in the Canadian CPA program. It is a prestigious and well-respected designation that prepares you for a career in accounting in Canada. It also has high pass rates and more convenient modules.

Like the United States, Canada is divided into provinces, each with its own accounting body. On the other hand, Canada has combined its accounting qualifications (CA, CMA, and CGA) into a single CPA Designation.

Here's how you can pursue a CA articleship at PWC.

While CPA Canada is the national organization that works to unify the Canadian accounting profession, provincial and territorial CPA bodies work to regulate the profession.

The candidate's educational degrees determine the path to becoming a CPA.

As a result, CPA Canada collaborates with regional accounting bodies across Canada to award the CPA credential. Similarly, NASBA and the AICPA collaborate with individual boards of accountancy in the United States. 

Format of CPA Canada

As you might already know, an Indian CA has an easy route to becoming a CPA Canada. This is one of the strongest reasons why people recommend getting CA first and then going for CPA Canada. 

Well, the process of getting CPA Canada directly is quite long as its format is a bit complex, which is why it is given below in points. Understanding the direct process might help you better understand CPA Canada, and how you can pursue its route as an Indian CA.

There are four steps in all. After registering, you can study while working full-time. If you are fortunate and work hard enough, you will be able to complete your CPA in a duration of 4.5 years. (This includes a practical experience requirement of approximately 30 months.)

To become a Canadian CPA, you must first pass the following exams:

• Core 1 and 2 are made up of six courses.
• Electives 1 and 2: These are two exams.
• Capstones 1 and 2 are educational modules.
• CFE (Common Final Examination): It is a three-day exam period.

There is also a requirement to complete 30 months of approved practical training. The course typically takes 3-4.5 years to complete, similar to the Indian CA course.

Well, for a professional CA, it is not a hard nut to crack to understand this format, but nevertheless, there is no harm in understanding it while comparing it with our CA program. At least to understand what is equivalent to what? 

Also, it is important to understand that an Indian CA does not need to follow the entire course of CPA Canada. So, here is the comparison. 

To begin, candidates for the Canadian CPA must have a bachelor's degree in a related field. Alternatively, they can obtain an education through preparatory courses. Then they enter the "CPA Certification Program" of the Canadian CPA, gain experience, and participate in a capstone project. 

They must also pass the Common Final Examination (CFE). The CFE or the Canadian Common Final Examination is passed by approximately 77 percent of first-time candidates, according to Canada CPA. 

How can an Indian CA get a CPA degree?

Now you know a great deal about CPA Canada. Also, you have compared the format of the CPA with that of the CA program. 

Now if you're a CA, and you'd like to become a CPA in Canada, then, thanks to a Memorandum of Understanding (MOU) between ICAI India and CPA Canada, your path to becoming a CPA Canada is made much easier. Let us learn more about this MOU. 

What is the MOU between ICAI and CPA Canada? 

The Institute of Chartered Accountants of India (ICAI) and the Chartered Professional Accountants of Canada (CPA Canada) has signed a Memorandum of Understanding to facilitate mutual recognition of each other's qualifications and admitting members in good standing by prescribing a bridging mechanism between the two institutes.

The MoU applies to members in good standing who have obtained membership in the ICAI or one of the Canadian Provincial CPA bodies by meeting the ICAI or Canadian Provincial CPA bodies' education, experience, and practical experience requirements.

ICAI and CPA Canada share common and strong interests in the advancement of the accounting profession, particularly in the maintenance and reinforcement of professional and educational benchmarks in all sectors and the internationalization of the profession.

Under the terms of the MoU, ICAI members in good standing with the necessary experience are eligible for exemption from CPA Canada's practical training requirements, as well as from appearing in CPA Professional Education Program (CPA PEP), Capstone 1 and Capstone 2 modules, and can obtain the CPA qualification by passing CPA Canada's final examination, namely the three-day Common Final Examination (CFE).

Relief for Indians' CAs for getting CPA Canada 

It is already well explained, but here is something more to tell you about the things related to CPA Canada. Basically, CAs are exempted from the first two levels as per the MOU. 

The first two levels are 

• Core 1 and 2 

• Capstone 1 and 2

But to apply for the CPA-CFE or common final exam, the CPA capstones 1 and 2 are given as option papers. They also serve as an entrance test for sitting in on CPA-CFE.

Remember, to qualify for the exemption, the CPA office usually conducts a qualification assessment at the time of registration. The majority of students take this test because there is no harm in doing so. Because CPA-CFE is a difficult exam, sitting for it directly may be risky, and capstones 1 and 2 provide them with time and opportunities to revise the material that will prepare them for CPA-CFE.

Salary of CPA Canada 

Of course, you should consider the average CPA salary in Canada as well as the availability of CPA jobs in Canada before pursuing the CPA Canada certificate.

The average CPA in Canada earns approximately $81,622 per year (Canadian dollars).

In a nutshell, CPT is a prestigious degree. It is equivalent to the Indian CA. Some people aspire to be one after completing their Indian CA. This exam consists of four modules. Each module concludes with an examination. Most importantly, in order to advance to the next module, CPA candidates must pass each module examination. 

Finally, the Common Final Examination is a three-day test that concludes the entire process.

The path for an Indian CA to obtain CPT has been greatly simplified as a result of an MOU between ICAI and CPT Canada.

CPT holders are paid well. If they completed CA prior to CPT, their chances of getting better opportunities may increase.

This news piece is brought to you in association with jobaaj.com