Get a Quote
Get a Quote and Find Services to Fit Your Needs 50000+ Satisfied Clients
5000+ Licenses & Registration
15 Branches across India
75 Years + Combined experience
CMA full form is Cost and Management Accountant. It refers to a qualified professional who specializes in cost accounting, strategic financial management and performance evaluation for businesses. In India, Institute of Cost Accountants of India (ICMAI) is primarily responsible for regulating the Cost and Management Accountant (CMA) profession in India.
The ICMAI is basically a statutory body operating under the administrative jurisdiction of the Ministry of Corporate Affairs, Government of India. In this blog post, we shall discuss the roles and responsibilities of CMAs in India and also explain the procedure to become a CMA.
CMA full form in Accounting is Cost and Management Accountant, which refers to an ICMAI-registered professional who is qualified to handle cost accounting, strategic financial management and performance evaluation for organizations.
Just as the Institute of Chartered Accountants of India (ICAI) regulates Chartered Accountants and Institute of Company Secretaries of India (ICSI) regulates Company chatSecretaries, the Institute of Cost Accountants of India (ICMAI) is the regulatory body for Cost and Management Accountants.
The U.S. equivalent of ICMAI-registered Cost and Management Accountant is the Certified Management Accountant (CMA), which is administered by the Institute of Management Accountants (IMA).
A cost and management accountant takes care of the following things:
A CMA plays an important role in financial planning, cost control and strategic decision-making within an organization.
They are responsible for developing cost sheets and maintaining accurate cost records.
In order to identify inefficiencies and eliminate waste, they conduct a well detailed cost analysis.
They also carry out mandatory cost audits u/s 148 of Companies Act, 2013 to ensure compliance with cost accounting standards.
Additionally, they assist organizations with GST compliance, including audits, certification of reconciliation statements (GSTR-9C) and overall direct tax management.
They provide useful insights to help businesses use their resources better, increase their revenue and grow in a sustainable way.
To become a CMA in India, the following procedure needs to be followed:
The candidates must pass 12th grade. After passing, they must enroll in the Foundation Course.
Graduates in any discipline (except those who graduated in Fine Arts) can directly register for the Intermediate Course, skipping the Foundation Course.
Candidates must clear all three stages of the CMA exams namely (i) CMA Foundation, (ii) CMA Intermediate and (iii) CMA Final.
Thereafter, they must complete 15 months of mandatory practical training to gain industry experience.
They must also complete the required coaching and industry-oriented training programs.
After successfully passing the Final examination and completing the training requirements, candidates can apply to become an Associate Member of the Institute (ACMA) of ICMAI. After securing associate membership, they can officially begin their journey as a qualified CMA.
The CMAs must adhere to the principle of professional behaviour. They must ensure compliance with the necessary laws and regulations.
They must behave in a way that is consistent with the profession’s responsibility to act in the public interest in all professional activities and business relationships.
The CMAs must avoid any conduct that they know or should know might discredit the CMA profession.
ICMAI is the primary statutory body for regulating the profession of CMA in India. It is responsible for setting the professional standards for CMAs to ensure they adhere to professionalism as well as high ethical standards. The institute also designs the syllabus and conducts CMA exams at all levels, i.e., Foundation, Intermediate and Final.
Also, it requires practical training so that members gain essential skills in areas like auditing, finance and cost management. The role of ICMAI in the CMA profession’s regulation is truly essential. This institute ensures the development of competent professionals within the cost and management accountancy field.
The ICMAI has laid down the Code of Ethics for CMAs. Below, we’ve outlined some of the key points mentioned in this Code. :-
An individual practising the profession of CMA has the responsibility to act in the public interest.
A cost and management accountant must comply with the principle of integrity. This principle requires them to be straightforward as well as honest in all professional and business dealings.
An individual practising as a CMA must not knowingly be involved with reports, returns, communications or other information that he or she believes:- (i) contains a materially false/misleading statement, (ii) contains statements/information provided carelessly or (iii) leaves out/conceals required information in a way that would be misleading.
The CMA is required to adhere to the principle of objectivity. This principle requires them to provide a professional/business judgment without bias, conflict of interest or undue influence of/undue reliance on individuals/organizations/technology, etc.
A CMA must not take up any professional work if there is any situation/relationship that could unfairly influence their professional judgment regarding that activity.
The CMAs must adhere to the principle of confidentiality. They must respect the confidentiality of the details they acquired as a result of their professional and business relationships.
CMA stands for Cost and Management Accountant. It refers to a qualified professional who is well versed with cost accounting, financial management and performance evaluation for organizations. In India, the CMAs are registered with and regulated by the Institute of Cost Accountants of India (ICMAI), which is a statutory body functioning under the Ministry of Corporate Affairs. The profession of CMA is highly-respected not only in India but also globally.
Also Read: CA Full Form, Roles & Responsibilities
Q1. What is the full form of CMA?
A. The full form of CMA is Cost and Management Accountant in India. In the USA, the full form of CMA is Certified Management Accountant.
Q2. Which statutory body regulates the profession of CMA?
A. The Institute of Cost Accountants of India (ICMAI) is the concerned statutory body for regulating the CMA profession in India. It was established in 1959, and currently functions under the administrative control of the Ministry of Corporate Affairs.
Q3. What does a cost and management accountant do?
A. They help businesses in cost control, preparing budgets, financial/tax planning and improving their operational efficiency. They are also responsible for conducting cost audits.
Q4. ICMAI functions under the administrative supervision of which Indian Ministry?
A. The Institute of Cost Accountants of India functions under the administrative supervision of the Ministry of Corporate Affairs, Government of India.
Q5. How many examination levels does an individual need to clear to become a CMA?
A. To become a CMA, an individual must clear three examination levels, i.e., Foundation, Intermediate and Final. Apart from clearing these levels, they must also undergo the mandatory training prescribed by ICMAI.
Q6. What is the full form of CMA in the USA?
A. In the USA, the full form of CMA is Certified Management Accountant.
Hi, I'm Sachin Chawla. I’m a commerce graduate from Agra University and a Chartered Accountant (2015) with DISA certification. I focus on helping businesses with formation, management, tax and FEMA matters, business licenses and regulatory compliance, IP advisory, risk management and auditing among others. Through my articles, I aim to share my expertise and provide practical guidance in these areas.
Want to know More ?
