RR Academy conducted a CMA success meet for honouring the rank holders. This program was graced by honourable ICMAI president Mr P. Raju Iyer. In the CMA success meet, CMA R.Raju sir guaranteed to solve the technical issues. He said that the students from the previous term raised concerns about admit cards. And this year, students will receive the admit card immediately after sending the application. He also mentioned that the question paper pattern will change. He said that last year’s top CMA salary at campus interview was 22 lakhs, and this year hoping for 30 lakhs. The three times examinations help the students with comfort. President informed about the discussions of the CMA institute with CIMA for renewing the MOU. He said that the discussions are underway for the fee reduction. The fee charged by CIMA is high. He also highlighted that there are many global opportunities. He said national events and global events of ICMAI, are planned to happen in Chennai and Delhi. The CA act, CMA act and ACS act are under discussion with the parliament. So, the changes with the professional courses come in the future.
The ICMAI president also spoke about blockchain, performance management and internal audit. Internal audit, USA is helpful for the cost accountants. There are opportunities for internal audits. He said that the internal audit guidance note by the institute helps understand the internal audit. The industries in which the cost accountants’ ideas differ are the health care sector, telecom industry, cement industry, pharmaceutical industry and education sector. These industries are unique. The speech of the president emphasized valid points about the CMA profession. This blog wants to share noteworthy key points about CMA salary, internal audit guidance and technical guidance.
Mr CMA P Raju Iyer mentioned in his speech cost accountants are paid the high in the industry. He disclosed the fact that cost accountants received 22 lakhs salary the previous year. In India, the average salary of a cost accountant is 5, 61,700 per year. The monthly salary of an average student is 30,430. The monthly salary of a rank holder is 1, 83,333. Rank holders are honoured with a six-time higher salary. The job portal says that the highest salary for a cost accountant in the USA is $85,000 per year. In the UK, the average salary of a cost accountant is $1, 08,137.29. The term industrial accountant refers to the cost accountants in UK portals. The industrial accountant’s salary is comparatively high than the practice accountants. One report from the past years reveals that UK firms experience a shortage of talents in accounting firms. If the US dollars of 85000 converted to Indian money, it shows 65, 35,267.50. The cost of living is different in India and USA. Blindly it is a misrepresentation to compare the foreign country salary and Indian salary. But, the normal accountants are paid $56208. This amount is 43, 20,568.44. The salary of a normal accountant and cost accountant is nearly double in numbers. The demand for cost accountants is high in India and abroad.
Internal audit guidance by ICMAI:
Internal audit standards are the need of the hour. The companies act, 2013 and other laws thrust the role of cost accountants in auditing. The scope of internal audit has widened in Indian companies as overseas stock exchanges check the strong internal audit operations. The following points elucidate the process of internal audit in Companies:
• Internal audit protects the business from waste, fraud, abuse. And also improves operations and utilize the resources properly.
• The internal audit has an impact on finance, operations, risk management, strategic management, compliances, information systems, and costing, environmental and special assignment.
• Internal audit has two categories. They are general and operational principles.
• General principles have eleven divisions.
• The general principles are Objectives, engagement, independence, professional care, expert work, quality assurance, communication, risk management, technology-driven audit, governance, and cost records.
• The operational principles of internal audit are planning, sampling, evaluation, evidence, documentation, reporting and monitoring.
• The principles elaborate on the specific nature and objectives of internal audits. The application of the law is as per the changing auditing process.
• The chief internal auditor must take responsibility and review the audit charter.
• The chief internal auditor monitors the execution phase to know the deviation.
• The reason behind the deviation or non-conformance of the plans should be communicated to the audit committee.
• The model of audit charter consists of the details of the objectives, scope, principles, record accessibility, authority, accountability, quality assurance, and conformance.
• The auditor needs to record the law in a written agreement and get acknowledgement from the management.
• Regarding the objectives and risk element, the view of the auditor was disclosed to the management.
• The chief internal auditor and the management committee members should discuss the internal audit engagement terms.
• If the external audit team involve in the internal audit, they need to value the strategies and objectives of the entity.
• If there is a need for doing work outside the internal audit, the auditor needs to check the safety measures.
• If the skill or knowledge of the auditor lack to understand the auditing process, the auditor needs to decline from the consultation.
Technical guidance by ICMAI:
Block chain help for digital transactions and it emphasizes supply chain management, smart contracts, asset protection, and data management. The following points enumerate the benefits of blockchain technology with future accounting processes:
• By the year 2030, blockchain technology will accelerate $3.1 trillion in businesses. India operates emerging technologies like cryptocurrency and blockchain technology.
• In the year 2019 fin-tech investments have grown double the rate.
• The institute for development and research in banking and technology for blockchain technology is a research company working under RBI. This institute is developing a cloud-based infrastructure for BAAS. BAAS stands for blockchain as a service.
• Blockchain and data analytics technology together help for solving the complex issues with auditing.
• With the help of technology, CMA’s can analyse risk and performance management.
The ICMAI institute is planning certification courses for insurance, investment and banking. National insurance academy, BFSIB and NISM are the certification partners for the course on insurance, banking and investment. Learning the research papers, journals and guidelines published by the ICMAI institute help for the upskilling the knowledge. Make use of the certification courses for the specialised knowledge requirement.