8 differences between CFA and CPA Programs

Define CFA

CFA is known as “Chartered Financial Analyst” Program is a professional certification offered by internationally recognized CFA Institute from USA, formerly known as the Association for Investment Management and Research (AIMR) for the investment and financial professionals.

CFAis a globally respected certification and is widely considered to be the gold standard in the field of investment analysis.It is a graduate level investment credential established in the year 1962 and awarded by CFA Institute, which is the largest global association of investment professionals.Presently there are more than 123,000 CFA charter holders working in 145 nations globally.

In that respect are three stages of exams with areas covering, such every bit-

  • Accounting
  • Economics
  • Ethics
  • Money Management
  • Security Analysis

The CFA level one test is conducted twice per year in the month of June and December.
The main areas such as-

  • Ethical and Professional Standards
  • Quantitative Methods, Economics
  • Financial Reporting &Analysis
  • Corporate Finance
  • Equity Investments
  • Fixed Income
  • Derivatives
  • Alternative Investments
  • Portfolio Management
  • Wealth Planning

The level 2 exam is only conducted once per year in the month of June.

The tier 3 exam is also only conducted one time per year in the month of June. It concentrates on effective wealth planning and portfolio management by involving the candidate to learn and know all the concepts and analytical methods in the entire syllabus.

To become a CFA charter holder, a candidate should ask one of the following educational requirements.He or she should have four years of professional work experience with a bachelor’s degree or should be appearing in the final year of the bachelor’s degree or combining of both professional work experience and education totaling should be about four years. Of the candidates those are undergraduate qualification, the bachelor’s degree shouldget completed before registering for the Level II exam. In addition to this educational requirement, the candidate should have an international passport, with completing the assessment in English, should require the professional conduct admission criteria, and should live in a country from where the candidate is participating.

Define CPA

CPA program is a certification of expertise in the area of accounting.Only those CPA professionals can supply an opinion to the public regarding publicly distributed financial statements.CPA is also known as a Certified Public Accountant is a professional certification offered by the American Institute of Certified Public Accountants in order to maintain industry wide professional standards.

The CPA’s basic function is to help business’s needs.CPA program includes such as-

  • Tax preparation
  • Financial statements
  • Financial planning
  • Forensic accounting
  • Internal auditing
  • Income tax

CPA, is an accounting professional who has passed the Uniform CPA examination and has also gained additional state certification and experience requirements. To become a CPA, the candidate shouldfulfil the following criteria such as-

  • Complete a college degree inaccountingsector
  • Should pass the Uniform CPA Examination
  • Should have a certain amount of professional work experience in accounting at least fortwoyears

The CPA exam is prepared and sorted out by the American Institute of Certified Public Accountants.The CPA examination has four sections such as-

  • Auditing and attestation
  • • Financial accounting and reporting
  • • Regulation
  • • Business environment and concepts

CPA examination also involves sections such as-

  • Writing skills exercise
  • Multiple choice questions
  • Case studies

CPA certified professionals are asked to fill in a minimum number of continuing professional training (CPE) courses in order to keep the CPA designation.CPA program eligibilityrequirementsvary from one to anotherstate,butrequiredsuccessful to complete the four partCPAexamination.

CPA professionals are well respected strategic business advisors and decision makers. They work as consultants on many situations that including taxes and accounting. A CPAprofessional is a trusted financial advisor who helps individuals, businesses, and other entities to plan and reach their financial goals to gain success.

Now 5 differences between CFA and CPA programs

There are certain differences between financial professionals and Accountants with their designations. Accountants and Financial personals are both important members of the financial area, but sometimes the distinctions between the functional area performed by both the professionals are indefinite this makes the difference and distinguishes a CPA from a CFA.

Sl. No CFA CPA
1 Stands for Charted Financial Analyst Stands for Certified Public Accountant
2 Administered by CFA Institute Administered by American Institute of Certified Public Accountants
3 Professionals should maintain strict codes of conduct and high standards of ethics and integrity. Professionals should meet state’s requirements for membership into the institute’s ranks.
4 Professionals are likely to receive and analyze reports produced by a CPA or other accountant. Professionals involved in tax reporting and filing
5 Professionals recommend to their clients on how to invest on securities on the basis of public companies annual report that are prepared by CPA professionals. Professionals helps clients and companies in terms of minimizing taxes and maximizing profitability
6 A professional analyzes the growth and profitability of companies and their creditworthiness and the amount of debt they carry. Professional’s advices on different forms of business companies and the benefits and advantages of each in different situations.
7 Professionals are qualified to perform personal financial planning and wealth management. Professionals are trained to advise clients who have been audited or require audited reports.
8 If a client has a large sum of money and wish to invest, then he should hire a CFA pers If a client needs help preparing their taxes, then he should hire a CPA personal.
Industry recognition is good. Industry recognition is very excellent. Industry recognition is moderate.

Conclusion

As per the above table, both the programs have its own distinct level of functions which is very important to maintain the financial areas of any individual person or a company for their business growth. Hope this article may help and understand to know the various differences between CFA and CPA programs in the area of finance. To know more about CFA and CPA programs and get registered logon to our website URLs.

For CFA Program – URL: http://edudelphi.com/ae/cfa-course-dubai/

For CPA Program – URL: http://edudelphi.com/ae/cpa-course-dubai/

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