Full Form of CPT – Complete Guide

Candidates from the commerce field who seek to pursue a career in Chartered Accountancy have heard about CPT. It was the entry-level exam for the CA. CPT has four subjects, which were further divided into two sessions. Each session comprises two subjects, plus each subject is worth 100 marks.  It was an objective-type test. CPT was discontinued in 2019 and replaced by the CA Foundation. 

Although CPT was substituted with the CA Foundation, it played a vital role in the CA examination. As this was the preliminary stage of the CA journey, candidates must clear it before proceeding to further exam levels. Minimum 50 per cent marks are required to clear this stage.

This blog provides you with every detail about CPT, its importance, the conducting body, the difference between CPT and CA Foundation, and its eligibility criteria.

Full form of CPT

CPT = Common Proficiency Test. 

CPT was the initial step for pursuing a career in CA. It was conducted by the ICAI (Institute of Chartered Accountants of India).

What was CPT and its importance?

CPT(Common Proficiency Tests) was the first stage of the CA Examinations in India. This initial stage helps students gain basic knowledge of subjects such as General Economics, Fundamentals of Accounting, Mercantile Law, and Quantitative Aptitudes. CPT has four sections consisting of objective-type questions.

Importance: It helps maintain high standards in the profession of a CA. The importance of the CPT is mentioned below:

• Acts like a gateway to the CA profession.
• Developed a solid knowledge of advanced levels of the CA Examination.
• Tests basic knowledge of Mathematics and Commerce.
• Assures that only serious candidates are enrolled in the CA journey.

Conducting body

The ICAI was the conducting body of the Common Proficiency Test(CPT). The ICAI works under the administrative control of the Ministry of Corporate Affairs of India.

The ICAI is responsible for: 

• Conducting the Examination of the CAs(Foundation, Intermediate, and Finals).
• Framing the curriculum of CAs.
• Granting Certifications and Memberships to the CAs.

Executive Functions in CPT: 

The ICAI plays different roles in CPT. The syllabus structure, eligibility criteria, exam pattern, and evaluation process are handled by the ICAI. To maintain the superiority of the future CAs, the ICAI assures that primarily evaluations meet the professional standards. Despite the fact that CPT was terminated in 2017, the historical importance of CPT can not be ignored. CA Foundation replaced CPT as the current test.

Difference between CPT and CA Foundation

Both the CPT and the CA Foundation are the entry-level examinations for the CA Course in India. Nevertheless, CPT was discontinued in 2017 and replaced by the CA Foundation, under the restructured syllabus. The CA Foundation covers both subjective and objective papers, while the CPT covers only objective-type questions.

Below is the detailed comparison of the CPT and the CA Foundation.

Both CPT and CA foundations have different marks and passing criteria.

Sections in CPT:

• Section A: Fundamentals of Accounting 
• Section B: Mercantile Laws
• Section C: General Economics
• Section D: Quantitative Aptitude

Papers in CA Foundation:

• Paper 1: Advanced Accounting (Subjective)
• Paper 2: Business Laws (Subjective)
• Paper 3: Quantitative Aptitude (Objective)
• Paper 4: Business Economics (Objective)

Eligibility Criteria

Before 2017, qualifying for the CPT was important for the CA profession. The eligibility criteria for the CPT are mentioned below:

Academic qualification:

• Students should register after Class 10.
• Passing or appearing in Class 12 was a must to be eligible for CPT.

Registration:

• Students have to register with the ICAI.
• Have to register at least 60 days before the examination.

Minimum Marks Requirements:

• There are no requirements for minimum marks in Class 12.
• At least 30% in each section and aggergate 50% marks overall to pass the CPT.

Age Limit:

• There is no age limit to apply for the CPT.

Subject-Stream Criteria:

• Students with any stream(arts, science, and commerce) are eligible.
• Students with the Commerce stream possessed an advantage owing to the subject familiarity (not mandatory).

As the CA Foundation replaced the CPT, the eligibility criteria are different for both examinations. 

The change only occurred in the academic qualification and registration time period.

Passing Criteria

As there were several changes in the syllabus, the passing criteria for CPT also differ from the CA Foundation. Below is the table providing the details about changes in subjects and passing marks for the CPT and the CA Foundation.

The tables provide you with the detailed passing percentage for each section/paper.

Is it still applicable?

NO, CPT is no longer applicable as it was replaced by the CA Foundation.

• In 2017, the ICAI replaced CPT with the CA Foundation as the screening test.
• These changes were made to update the curriculum of the examinations by expanding the subject coverage and introducing both objective and subjective papers to boost the preparation level of students for the CA journey.

Current Entry stage:

• Students who want to undertake CA can now register for the CA Foundation examination instead of CPT.

The Common Proficiency Test (CPT) served as the first milestone in the journey of the CA profession. It evaluates the analytical skills and conceptual clarity before the next stage, CA Intermediate. As the entry-level stage, it played a vital role and maintained the quality of the evaluation journey of the CAs.

Even after the replacement with the CA Foundation in 2017, the fact can not be denied that it contributed a strong base, which now becomes the must stage for success and future in the finance and accounting field.