Commonly, cfa investment banking jobs problem people have is how to look for money. Although, when they already have enough money, they develop a new problem of how to use all the money.
In this regard, this is where analysts and financial experts come in handy. Surfing the web, or listening to talk shows, won’t give you sufficient theories on how to manage your money. A CPA is known as a Certified Public Accountant. CPAs are the experts to whom you will turn for your tax concerns. Even if it is not always required for one to employ a CPA just to audit taxes, they are nevertheless the most knowledgeable persons on this subject. To become a CPA, you must first pass the CPA exam. Not only that, this license can also only be given to a person who already has the right education and experience.
On the contrary, a CFA is a Chartered Financial Analyst. Unlike CPAs, they tend to delve more into finance by examining the flow of money, and assessing stocks and the overall market. The road to becoming a CFA is also not that easy. Unlike the CPAs, CFAs are obliged to take and pass three separate exams that are each 6 hours long. These exams are seen to have higher passing rates as the level of examination progresses.
Hence, the third exam almost always displays the highest passing rate overall, based on the trend analysis for the past 5 years in the U. A CFA is focused more on financial aspects, while a CPA is more of an accounting position. A person who wants to become a CFA needs to pass three separate exams, whereas someone who wants to become a CPA needs to pass four parts of CPA exam. The CPA is not 1 exam, but instead 4. Also anyone with a undergrad can take the cfa exam. For example if you have a degree in dance or music, you can take the CFA exam. For the CPA exam on the other hand you need 150 units, 25 units at least in business related course and 25 units in accounting.
It basically takes a masters degree just to take the CPA exam. Ben no need to get defensive. The CPA is for accountants, the CFA is for portfolio managers and analysts. I am sure the CPA is tough to get, no disputing that and, if it helps, yes a dance major can obtain a charter, she just has to cram a week before each of the levels and she will be just fine. I hold both, but don’t do accounting and wouldn’t be caught dead trying to do our tax returns.
I’m also not a portfolio manager. It’s of no interest to me. Saqib: For starters, although there are four parts of the testing regimen to become a CPA, they focus largely on accounting, auditing, and taxes. Yes, there is some coverage of IT, ethics, business law, the regulatory environment, etc. In contrast, the three parts of the CFA exam cover a broad range of topics. It is both broad AND deep.
Of the two sets of tests, the four parts of the CPA are much easier to pass than the three that comprise the CFA testing regimen. That, in turn, is reflected in the numbers: In the United States alone, there are more than 500,000 holders of the CPA credential. In contrast, the number of CFA charterholders worldwide is about 110,000 at this writing. The irony is that the pass rates are higher on the CFA tests than on the accounting tests. It will never admit that, but it’s true. Because CPAs are licensed by state boards of accountancy, AICPA doesn’t disclose the overall pass rate. Some state Boards might, but I’ve never heard of it.