What is the full form of CPT?

Introduction

Common Proficiency Test (CPT) is an entry-level examination for students who wanted to pursue a career in Chartered Accountancy (CA) in India.

The exam was conducted by the Institute of Chartered Accountants of India (ICAI) and was held twice a year, usually in June and December. The CPT exam aimed to test the basic knowledge and understanding of four subjects, namely Accounting, Mercantile Laws, General Economics, and Quantitative Aptitude.

Eligibility Criteria for CPT

The eligibility criteria for the Common Proficiency Test (CPT), which was an entry-level examination for Chartered Accountancy (CA) in India, was as follows −

• Educational Qualification − The candidate must have passed the class 10th examination or an equivalent examination from a recognized board.

• Registration − The candidate must have registered with the Institute of Chartered Accountants of India (ICAI) for the CPT course.

• Age − There was no age limit to appear for the CPT exam.

• Completion of Orientation and ITT − The candidate must have completed the Orientation Course and Information Technology Training (ITT) before appearing for the CPT exam.

It is important to note that the CPT exam has been replaced by the CA Foundation Course as per the revised scheme of education and training for CA students, which came into effect from July 2017. The eligibility criteria for the CA Foundation Course is that the candidate must have completed their class 12th or equivalent examination from a recognized board.

Syllabus and Exam Pattern of CPT

The syllabus of the Common Proficiency Test (CPT), which was an entry-level examination for Chartered Accountancy (CA) in India, covered four subjects −

• Accounting − The accounting section covered topics such as Accounting Principles, Accounting for Special Transactions, Preparation of Final Accounts, Partnership Accounts, and Company Accounts.

• Mercantile Laws − The mercantile laws section covered topics such as the Indian Contract Act, 1872, the Sale of Goods Act, 1930, and the Partnership Act, 1932.

• General Economics − The general economics section covered topics such as Micro Economics, Macro Economics, Indian Economic Development, and Economic Reforms in India.

• Quantitative Aptitude − The quantitative aptitude section covered topics such as Ratio and Proportion, Indices, Logarithms, Equations, Inequalities, Simple and Compound Interest, Permutations and Combinations, Sequence and Series, and Probability.

The exam pattern of the Common Proficiency Test (CPT), which was an entry-level examination for Chartered Accountancy (CA) in India, was as follows −

• Mode of Exam − The exam was conducted in offline mode (pen and paper-based).

• Number of Papers − The exam consisted of two sessions, and each session had two subjects.

• Type of Questions − The exam was an objective type test, comprising 200 multiple-choice questions.

• Marking Scheme − Each correct answer carried one mark, and there was no negative marking for incorrect answers.

• Duration of Exam − The duration of the exam was four hours, with a break of 15 minutes between the two sessions.

• Pass Percentage − To qualify for the exam, a candidate had to score a minimum of 30% marks in each section and 50% marks in aggregate.

It is important to note that the CPT exam has been replaced by the CA Foundation Course as per the revised scheme of education and training for CA students, which came into effect from July 2017.

The CA Foundation course comprises four papers, and the duration of each paper is three hours. The exam pattern for each paper of the CA Foundation course is similar to the CPT exam, i.e., an objective type test with no negative marking.

Career Opportunities for CPT Qualifiers

Some of the career opportunities for CPT qualifiers are as follows −

• Chartered Accountancy (CA) − The most obvious career option for CPT qualifiers is to pursue Chartered Accountancy (CA) as a profession. After clearing the CPT exam, candidates had to clear the next two levels, i.e., Integrated Professional Competence Course (IPCC) and Final Course, to become a qualified CA.

• Company Secretary (CS) − CPT qualifiers who are interested in corporate laws and governance can pursue Company Secretary (CS) as a career option.

• Cost and Management Accountant (CMA)− CPT qualifiers can also pursue Cost and Management Accountancy (CMA) as a career option.

• Jobs in Finance and Accounting − CPT qualifiers can also apply for jobs in finance and accounting in various sectors such as banking, insurance, stock market, and other financial institutions.

• Jobs in Government Sector − CPT qualifiers can also apply for various government jobs that require a degree in commerce or accountancy.

Conclusion

Thus, CPT was a national level exam conducted for students interested in pursuing various government jobs and was one amongst the toughest exams in India. Presently, it has been replaced by the CA Foundation Course.

FAQs

What is the Common Proficiency Test?

Ans: The Common Proficiency Test (CPT) was an entry-level examination for students who wanted to pursue a career in Chartered Accountancy (CA) in India. The CPT exam aimed to test the basic knowledge and understanding of four subjects, namely Accounting, Mercantile Laws, General Economics, and Quantitative Aptitude.

Why is CPT replaced with CA Foundation Course?

Ans: The CPT was replaced by the CA Foundation course in 2017 by the ICAI in order to align the CA curriculum with the latest global trends and to make it more relevant and contemporary. The CA Foundation course is designed to provide a strong foundation to candidates by testing their understanding of fundamental concepts in various subjects such as Accounting, Economics, Business Laws, and Mathematics.

What are the major differences between CPT and CA?

Ans: The major difference between CPT and CA courses in India is that CPT was an entry- level examination while CA is a professional course. CPT was a basic-level test designed to test the basic knowledge of candidates in four subjects - Accounting, Mercantile Law, Economics, and Quantitative Aptitude. On the other hand, CA is a professional course that consists of three levels - Foundation, Intermediate, and Final.