Historically, 10% of US CPA candidates passed all four levels first time back when it was pencil/paper. It may be different now that tests are computer based.
A friend did a Master’s thesis study of factors that correlate to passing the CPA exam, and the highest correlation was #hours-studied. None of the other factors considered were highly correlative-- GPA, University, undergrad degree, etc.
So I think this argument boils down to does the CPA or CFA require more hours-- and I think it’s the CFA, because the curriculum is soooo big!
Eventhough, there are some topics that are similar at levels I and II, it is still comparing Apples to Oranges. No one said you cant…but the test results would be inconclusive…
I have cleared my CA this November 2013 from Institute of Chartered Accountants in India when the pass rate was 3.11%. I have never put more effort in my entire life than I have for the CA exams. It involved around 1000 hours of dedicated studying to be masters in 8 subjects. CA maybe more biased towards Accountancy, Audit and Taxes, but IMO it gives a very good persceptive about the finance industry as well.
@Hairymarkowitz- I would partially disagree with you that CAs dont understand BSM, Treynor Black etc. Derivatives, Portfolio Management, Capital Budgeting, Bonds, Corporate Finance is an integral part of the CA exam. Sure not everything that is covered in the CFA exam is also covered by the SFM (Strategic Financial Management Paper). But I can say, with recent personal experience. A CA should have no difficulty with L1 or L2 (I am a L2 candidate). Almost everything that I have studied for CA is applicable for CFA exams. FRA was a walk in the park with superior finanicial skills. Equity, Corporate Finance were also easy as the valuation models are already covered in the SFM paper. Fixed Income- Covered to a great degree for the L1 but not very much for L2 (new learning). Portfolio- 75%+ covered in SFM, Derivatives- 75%ish covered in SFM.
Irrespective of that, I would still say CFA is a nice course gives a clearer picture of the Finance world (more than CA) because clearly CA is meant for (but not limited to) Accounting, Auditing, and Taxation. But CFA is clearly meant for Financial Analysts. Also, I believe a CA is as qualified to whatever a Charterholder can without the degree.
^ I did mention the fact that CA is more relevant for Accounting, Audit and Taxes. Obviously CFA is more geared towards the Financial side. But my limited point is that CA is as good, if not better than CFA. CA gives you the best of many fields - Accounting, Audit, Taxation, but also Finance (through SFM) and Management Accounting.
In any case, please do see the syllabus before commenting. Even though it is not as detailed as LOS, but still. FYI.
What Jason said is very true. This is why there is a lot of value from having both CA and CFA, mostly for PE. there is little overlap (compared with other designations). The accounting taught in the CFA curriculum is a small portion of what you learn in CA school. And its not only re-doing the core courses of a business undergrad like an MBA.
I got a job in New York on the basis of my Indian CA, now will take the CPA exams, from what I have heard from other CA friends, they feel that CPA shouldn’t be any problem.
I have heard rumours from couple of Indian people that one can buy Indian CA papers from grey market (before the exam), and that you can also bribe the ones who are going to check your answer papers.
I wonder how this would make it the most difficult exam? lol,
Your statement has answer to it; rumours… You do get old question papers, that doesnt make it easier. And as to CFA, CPA, CA - I have no clue which is difficult. But CA is definitely not easy as you make it out to be! If it was, passing rates wont be single digit anyway.
I meant the actual CA paper being sold before the exam in the grey market,
And single digit passing rate can be due to many reasons: Exam being tough, lack of seriousness in preparation, lack of concentration, lack of enough practice, lack of right resources, etc etc.
To conclude that Indian CA is difficult because of single digit pass rate would raise many biases that we learnt in CFA, lol
Indian CA is shit.Single digit pass rates does not mean that CA is gr8.ICWAI has lower pass rates than Indian CA…does this mean ICWAI>>>CA???
.My uncle checks CA papers ,actually he does not grades them himself but rather my 19 year old cousin grades the CA final papers.This trend is followed mostly every where.Mistakes in CA papers are a common phenomenon.Some times the same wrong question might appear every alternate years and the students are forced to answer the question the wrong way to get the marks.For example,In one of the questions of CA final ,students were asked to assume Tbill’s Beta as 1(we know that it should be 0).This question kept on appearing every alternate year.
Cheating in Indian CA exams is very common.(I won’t disclose the methods used to cheat but i am sure my fellow Indian CA got the point.)
Most of my friends are Indian CA and they have left their shitty jobs to do CFA.
Bottom line Indian CA is full of corruption.Still if you want to work in India then you should do Indian CA rather than US CFA.
Some one mentioned that they got job in USA on the basis of Indian CA.Even if that is true…Sir you are an outlier.Majority of my friends are not happy with their Indian CA.
We Indians are only proud of Indian CA as it is Indian.
