Institute of Certified Management Accountants of Sri Lanka

Only members of the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) are authorized to conduct statutory audits in Sri Lanka. Accordingly, CMA Sri Lanka does not have responsibility for establishing or operating a quality assurance (QA) review system. Responsibility for QA reviews rests with CA Sri Lanka and the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB).

Within the scope of its mandate, CMA Sri Lanka supports the implementation of quality management standards through its professional development and knowledge dissemination activities. The institute provides technical resources and learning opportunities to enhance members’ understanding of audit quality and related requirements.

CMA Sri Lanka also engages with relevant stakeholders, including CA Sri Lanka, to support awareness of quality assurance developments and practices. Members of CMA Sri Lanka who are also members of CA Sri Lanka and perform audits are subject to the quality management and QA requirements established by CA Sri Lanka.

Through these ongoing activities, CMA Sri Lanka maintains appropriate processes, within the scope of its mandate, to support the objectives of SMO 1.

Current Status: Sustain

The Institute of Certified Management Accountants of Sri Lanka (CMA Sri Lanka) is responsible for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for its students and members. The institute administers a structured professional qualification program that includes formal education, practical experience, and assessment components.

CMA Sri Lanka maintains processes to review and update its education and training programs to align with international best practices and the International Education Standards (IES). The institute periodically revises its syllabus and learning outcomes to reflect developments in the profession and evolving competency requirements.

To support continuing professional development, CMA Sri Lanka has established mandatory CPD requirements and monitoring mechanisms, including systems to track compliance and enforce sanctions for non-compliance. The institute provides a range of learning opportunities, including seminars, training programs, and digital learning platforms, to support members in maintaining professional competence.

CMA Sri Lanka also engages with stakeholders, including training providers and international organizations, to enhance the quality and relevance of its education programs. The institute promotes awareness of developments in international education standards and participates in the international standard-setting process through engagement with exposure drafts.

Through these established processes and ongoing activities, CMA Sri Lanka maintains an education and training system aligned with the objectives of the International Education Standards.

Current Status: Sustain

Under the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) is responsible for establishing auditing standards in Sri Lanka, and only its members are authorized to conduct statutory audits.

CMA Sri Lanka does not have responsibility for setting auditing standards or conducting audit quality reviews. However, many of its members are employed in audit firms and are involved in audit and assurance engagements under the supervision of Chartered Accountants.

Within the scope of its mandate, CMA Sri Lanka has established ongoing processes to support the implementation of auditing standards. This includes providing access to relevant technical materials and incorporating auditing concepts into its education and training programs. The institute also delivers continuing professional development (CPD) opportunities and other learning activities to enhance members’ understanding and application of auditing standards and practices.

CMA Sri Lanka promotes awareness of developments in auditing standards through dissemination of updates and encourages engagement with pronouncements and exposure drafts issued by international standard-setting bodies.

Through these established and ongoing activities, CMA Sri Lanka demonstrates sustained commitment to supporting the implementation of auditing standards for members working in audit-related roles.

Current Status: Sustain

The Institute of Certified Management Accountants of Sri Lanka (CMA Sri Lanka) is responsible for establishing ethical requirements for its members and has adopted a Code of Ethics applicable to its membership.

CMA Sri Lanka incorporates ethical principles into its initial professional development (IPD) program and requires members to comply with ethical requirements as part of their professional obligations. The institute supports continuing professional development (CPD) in ethics through seminars, training programs, and technical materials designed to enhance members’ understanding and application of ethical standards.

CMA Sri Lanka promotes awareness of ethical requirements through publications, guidance materials, and communication channels, and has established mechanisms to support members in addressing ethical matters, including advisory support on ethical dilemmas.

Available information indicates that CMA Sri Lanka’s Code of Ethics is based on an earlier version of the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants and does not reflect the latest version of the Code in effect as of the time of the assessment.

Given CMA Sri Lanka’s responsibility for establishing ethical requirements, alignment with the latest IESBA Code remains incomplete. Accordingly, CMA Sri Lanka is assessed as being at the Execute stage with respect to SMO 4.

CMA Sri Lanka is encouraged to continue its efforts to update and align its Code of Ethics with the latest version of the International Code of Ethics for Professional Accountants, and to establish a clear process for the timely adoption and implementation of future revisions issued by the IESBA.

Current Status: Execute

The Institute of Certified Management Accountants of Sri Lanka (CMA Sri Lanka) does not have responsibility for the adoption or setting of public sector accounting standards in Sri Lanka. These responsibilities are undertaken by the Ministry of Finance, in collaboration with the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka).

Within the scope of its mandate, CMA Sri Lanka supports the implementation of public sector accounting standards through its education and professional development activities. The institute incorporates public sector accounting concepts into its qualification program and provides learning opportunities for members employed in the public sector.

CMA Sri Lanka promotes awareness of developments in public sector accounting by disseminating technical materials, publications, and updates to its members. The institute also facilitates access to relevant standards and guidance and supports capacity building through seminars and training initiatives, including collaboration with relevant stakeholders.

CMA Sri Lanka further contributes to the development of public sector accounting practices by engaging with international standard-setting processes and encouraging awareness of IPSAS developments.

Given the nature of its mandate, CMA Sri Lanka maintains appropriate processes to support the implementation of public sector accounting standards for its members.

Current Status: Sustain

The Institute of Certified Management Accountants of Sri Lanka (CMA Sri Lanka) is responsible for establishing and operating an investigative and disciplinary (I&D) system for its members.

CMA Sri Lanka has established formal procedures for the investigation of misconduct and the enforcement of disciplinary actions. The system includes defined processes for receiving and assessing complaints, conducting investigations, and imposing sanctions, as well as mechanisms for appeals through a Disciplinary Appeal Board.

The institute applies both complaints-based and information-based approaches to identifying potential misconduct and promotes transparency by making information on its disciplinary processes publicly available. CMA Sri Lanka also communicates disciplinary requirements and outcomes to its members to support awareness and compliance.

Through these established processes and ongoing activities, CMA Sri Lanka maintains an operational I&D system aligned with the objectives of SMO 6.

Current Status: Sustain

The Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) is responsible for establishing corporate financial reporting standards in Sri Lanka, including Sri Lanka Financial Reporting Standards (SLFRS), which are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board.

CMA Sri Lanka does not have responsibility for setting accounting standards. Within the scope of its mandate, the institute supports the implementation of financial reporting standards through its education, professional development, and technical activities.

CMA Sri Lanka has established internal governance mechanisms, including a technical committee, to oversee matters related to financial reporting and to support engagement with standard-setting developments. The institute contributes to the standard-setting process by reviewing and providing input on exposure drafts issued by relevant bodies.

To support implementation, CMA Sri Lanka provides access to financial reporting standards and related technical materials, disseminates updates and guidance to members, and incorporates financial reporting topics into its initial professional development (IPD) and continuing professional development (CPD) programs. The institute also delivers seminars and training initiatives to enhance members’ understanding and application of financial reporting standards, including for small and medium-sized entities.

Through these ongoing activities, CMA Sri Lanka maintains appropriate processes to support the implementation of financial reporting standards within the scope of its mandate.

Current Status: Sustain