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  • Category: Miscellaneous

    Why are CMA's not eligible for tax audit?

    CMA, known as Cost and Management accountants , are not treated at par with CA, better known as chartered accountants. While there lies a fine line of difference between their syllabuses, yet CA is given more prominence. While the base of CA is taxation and accountancy, and that of CMA being costing, yet the syllabus of taxation and accountancy is almost same in both the professional courses. Despite this, CA's can be appointed as a cost auditor, cost auditor is basically a professional who checks the costing books according to specified norms. Whereas a CMA is still not eligible for being a tax audit. Why CMA's are not given the same importance in working field as a CA gets? When ever a student decides to pursue CMA, the first suggestion received is to try out CA. Most students believe CMA to be the last option, that if they fail CA attempts or they do not know what to do in career , they still are sure they will pass CMA, which in turn is not so true to crack. In the society many people do not know about the CMA course and tend to believe that to be like CA, because of lack of knowledge or lack of importance CMA has received all these years. When a CMA learns the same norms of taxation that a CA learns, why is CMA profession disregarded in so many circumstances?
    Who's at fault? Has the students failed to maintain the course's integrity ?
    What are your views?
  • #729871
    Good question raised by auditor. Even if I take my example then I saw that when I asked career counsellor then she told that CA is the best option in commerce you can pursue with and ni advisory never given about CMA, and every time CA have upper edge than that of a CA. I sometimes felt that this is all about little bit dissimilarity in their curriculum and working style, which makes CA as one of the best profession. Further passing percentage of CA student is too less. With more demand and less supply CA s are given importance always

  • #729873
    CMAs can do a cost audit. These days all manufacturing companies have to get a cost audit also done. They see the cost of the product. How a product is rated at a particular cost. What is the value addition in the product and how much cost is increased will be audited by these cost auditors. In a cost audit, the following will be audited.
    1. The verification of cost records and accounts.
    2. A check on the adherence to the prescribed cost accounting procedures
    3. the continuing relevance of such procedures
    This is entirely different from finance auditing. No CA can do this. The only candidate who is qualified in Cost and works auditing only can do this, These ICWA qualified auditor can do this auditing. The companies have to appoint a cost auditor on yearly basis and they have to get the audit done.

    always confident

  • #729887
    They may appear to be cousins but there are definitely some differences and then accordingly the qualified people are supposed to be working in their own terrains. The CA program is primarily meant for dealings in the areas of accounting, taxation, law, audit, and finance. Here audit is one of the important and prime element in the CA course and the students get aligned to this important parameter accordingly.
    On the other hand the CMA course deals with cost accountancy, cost management, corporate finance, economics, performance management, internal controls, decision analysis, financial reporting, strategic planning, and organisational management. Here the elements are biased to costing side where cost optimisation is the main concern and the students will be learning everything from that perspective. Audit comes in picture when funds are utilised and payments released and job completion certificates are also issued. Audit is to look back for mistakes, violations and unnecessary expenses.

    Knowledge is power.

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