The Difference Between CA, CPA and NIA

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The Difference Between CA, CPA and NIA

• Becoming a Qualified Accountant

February 2009
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3 Professional Accounting Bodies

• In Australia, there are three (3) professional
  accountancy bodies
• CPA Australia (formed in 1952)
• The Institute of Chartered Accountants in
  Australia (formed in 1928) and
• The National Institute of Accountants (formed in
  1923).

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3 Professional Accounting Bodies

• CPA Australia has in excess of 117,000 members.
  There are 3 levels of membership Associate
  (ASA), CPA and Fellow (FCPA).
• The ICAA has in excess of 46,000 members. There
  are 2 levels of membership CA and Fellow (FCA).

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3 Professional Accounting Bodies

• The NIA has in excess of 20,000 members and has 4
  levels of membership
• Associate (ANIA) - Degree in accounting
• Member (MNIA) - Degree in accounting plus 3 years
  relevant work experience
• Professional National Accountant (PNA) - Degree
  in accounting plus NIA Program (Core) plus
  mentored experience program and
• Fellow Professional National Accountant (FPNA) -
  PNA plus 10 years experience.

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Becoming a CPA

• To become a CPA
• 1. You need an undergraduate accountancy degree
  accredited by CPA Australia.
• 2. You need to have successfully completed the
  CPA Program (6 modules).
• 3. You must have completed 3 years supervised or
  mentored experience in finance, accounting or
  business.

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The CPA Program

• There are 3 compulsory modules
• Reporting Professional Practice
• Corporate Governance Accountability and
• Business Strategy and Leadership.
• 3 electives must be chosen from the following
  list

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The CPA Program

• Assurance Services and Auditing
• Contemporary Issues in Financial Accounting
• Financial Reporting and Disclosure
• Insolvency and Reconstruction
• Knowledge Management
• International Business
• Personal Financial Planning and Superannuation
• Strategic Management Accounting
• Taxation or
• Financial Risk Management (Treasury).

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The CPA Program

• The mode of study is distanced education.
  Candidates are sent a folder containing
  materials, additional readings, CD-ROMs and
  sample multiple-choice questions.
• There are no classes. However, there are optional
  CPA workshops that candidates can pay to attend
  for selected modules.

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The CPA Program

• Each module takes approximately 12 weeks from
  when candidates receive their folder in the mail
  to the date of the exam (10-12 hours per week
  study expected).
• Each module runs twice a year (Semester 1 and
  Semester 2).

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The CPA Program

• All of the CPA exams are multiple-choice.
  However, the first two modules contain a small
  written question.
• To receive a passing grade, candidates need to to
  get more than 65 out of 100 (not 50).

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The CPA Program

• On average, between 70 to 80 of candidates pass
  each module.
• The cost per module is 740 (GST-free).
• Tax-deductible if you are working at the time (do
  not take off the first 250).

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The CPA Program

• It is possible to do the CPA Program on a
  full-time basis. In other words, you do not have
  to be working at the same time.
• However, to become a CPA, you still need to have
  3 years full-time work experience mentored by a
  CPA.

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The CPA Program

• All Associate members who wish to advance to CPA
  status must complete the practical experience
  Mentor Program.
• Basically, this means that as part of the CPA
  Program), candidates must be mentored by an
  approved mentor.

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Becoming a CA

• To become a CA
• 1. You need an undergraduate accountancy degree
  accredited by the ICAA.
• 2. You need to have successfully completed the
  CA Program (now referred to as the the
  GradDipCA Program (5 modules.)
• 3. You must have completed 3 years supervised
  work experience under a chartered accountant.

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The GradDipCA Program

• There are 5 compulsory modules
• Taxation
• Audit Assurance
• Management Accounting Analysis
• Financial Accounting Reporting and
• Ethics and Business Applications (similar to a
  Capstone module).

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The GradDipCA Program

• The mode of study is distanced education. Each
  module takes approximately 12 weeks from when
  candidates receive their Candidate Learning Pack
  (CLP) in the mail to the date of the exam.

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The GradDipCA Program

• The CLP contains notes, exercises and
  comprehensive activities for students to
  complete. The CLP typically consists of 4
  modules.
• Focus Sessions (ie. workshops) are held every two
  weeks for each of the four modules within the
  CLP. Each focus session spans 3 hours.

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The GradDipCA Program

• Students are expected to have read each module
  and completed each of the exercises and
  activities prior to coming to class.
• Each module runs twice a year (Semester 1 and
  Semester 2).

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The GradDipCA Program

• The assessment in each module of the CA Program
  consists of
• 4 focus sessions (workshops) of 3 hours - 15
• unit knowledge quizzes (individual) - 10
• individual extension project - 25 and
• final exam (4 written questions) - 50.

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The GradDipCA Program

• The 4 focus sessions of 15 comprise
• 8 technical competence
• 3 teamwork and
• 4 participation.
• Marks are spread evenly over the 4 focus sessions.

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The GradDipCA Program

• Candidates must pass each item of assessment
  (including the final exam).
• On average, between 70 to 80 of candidates pass
  each module.

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The GradDipCA Program

• The cost per module is 1,050 (GST-free).
• Tax-deductible if you are working at the time (do
  not take off the first 250).

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The GradDipCA Program

• It is not possible to do the CA Program
  full-time.
• In other words, you can only complete the CA
  Program whilst working full-time under the
  direction of a chartered accountant.

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The GradDipCA Program

• As part of the CA Program, candidates must meet
  and review their progress with a CA mentor on a
  quarterly basis during the three-year period of
  practical experience.
• Candidates maintain an activity log which
  requires candidates to collect and record
  evidence of their development of competencies.

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Becoming an NIA

• To become a PNA
• 1. You need an undergraduate accountancy degree
  accredited by the NIA.
• 2. You need to have successfully completed the
  NIA Program.
• 3. You must have completed 3 years relevant work
  experience.

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The NIA Program

• The NIA Program is a two-stage program that
  allows members to attain a Graduate Certificate
  in Professional Accounting (Stage 1) and/or a
  Master of Commerce in Professional Accounting
  (Stage 2).

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The NIA Program

• Degree qualified members are only required to
  complete the 4 core subjects of the NIA program
  to obtain the Graduate Certificate in
  Professional Accounting.
• The electives are only required if they wish to
  obtain a Maters of Commerce.

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The NIA Program

• Stage 1 of the NIA Program (Graduate Certificate
  in Professional Accounting) consists of 2
  compulsory modules
• Strategic Management for Professional Accounting
  and
• Business Professional Ethics.

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The NIA Program

• 2 electives must be chosen from the following
• Advanced Financial Accounting
• Issues in Management Accounting
• Law of Commercial Organisations
• International Accounting
• Taxation Law
• Advanced Taxation Law
• Security Analysis Portfolio Management.

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The NIA Program

• Stage 2 of the The NIA program (Master of
  Commerce - Professional Accounting) requires
  candidates to have completed Stage 1 plus the
  following two compulsory modules.
• Issues in Company Financial Reporting and
• Issues in Auditing and Professional Practice.

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The NIA Program

• Candidates must also complete an additional two
  electives from the list provided on page 28.
• The NIA Program is offered three times per year,
  which means that Stage 1 can be completed in as
  little as 8 months and Stage 2 can be completed
  in 1.5 years.

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The NIA Program

• However, members have up to 5 years to complete
  the full program.
• The mode of study is distanced education. Most
  units are assessed by a combination of
  assignments and examinations. Exams are held in
  centres around Australia.

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The NIA Program

• Assignments are electronically submitted and
  marked hard copies are returned.
• The cost per module is 1,300 (GST-free).
• Tax-deductible if you are working at the time (do
  not take off the first 250).

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The NIA Program

• Like the CA and CPA Programs, candidates
  completing the NIA program are required to be
  mentored under a 3-year Mentored Experience
  Program.
• The candidate and mentor meet on a regular basis
  to discuss and resolve issues and to update their
  records.

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QUT Master of Business

• After you have completed either the
  CA or CPA Program and wish to come back
  to QUT and enrol in the BS16 or BS17
  Master of Business (Accounting), you
  will receive up to 72 credit points (ie.
  exemption for 6 Masters units). That
  leaves only 6 units to complete for
  BS16.

1. Completed the CA or CPA Program
2. BS16 or BS17 Master of Business

6 exemptions
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QUT Master of Business

• Alternatively, if you complete the
  BS16 and BS 17 Master of Business
  (Accounting) degree at QUT, and
  subsequently complete the CPA
  Program, CPA Australia will give you
  2 exemptions (electives) as part of
  the CPA Program. Hence, students only
  need to complete 4, not 6, modules.

• Completed BS16 or BS17 Master of Business
  (Accounting)

2. Obtain 2 exemptions in CPA Program
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QUT Master of Business

• The ICAA and the NIA do not give any credit from
  doing the BS16 or BS17 Master of Business
  (Accounting) towards the CA or NIA Programs.

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Further Information

• http//www.cpaaustralia.com.au
• http//www.icaa.org.au
• http//www.nia.org.au

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