Institute of Cost Accountants of India

Under the Cost and Works Accountants Act, 1959, members of ICMAI are authorized to perform cost accounting and cost audit engagements. ICMAI supports the implementation of applicable professional and technical standards through the issuance of Cost Accounting Standards, professional guidance, and continuing professional development activities.

ICMAI does not have direct responsibility for the statutory audit quality assurance system in India. Statutory financial statement audits are conducted by members of ICAI and are subject to quality assurance arrangements administered by ICAI and overseen by the National Financial Reporting Authority. Where ICMAI members perform statutory audits, they must also be members of ICAI and are therefore subject to ICAI’s quality assurance framework.

Within its mandate, ICMAI has established mechanisms to promote quality in cost accounting and cost audit services, including a Quality Review Board constituted under the Act and a Peer Review Board to review the work of practicing members. These mechanisms are intended to support compliance with professional standards and enhance the quality of services provided by members.

ICMAI further supports quality assurance through the issuance of standards and guidance, as well as training and professional development activities for its members. Overall, ICMAI supports the implementation of quality assurance requirements within the scope of its mandate, consistent with the requirements of SMO 1.

Current Status: Sustain

Under the Cost and Works Accountants Act, 1959, ICMAI is responsible for establishing initial professional development and continuing professional development requirements for Cost and Management Accountants in India.

ICMAI operates a professional education program leading to qualification as a Cost and Management Accountant. The institute’s Board of Studies is responsible for developing and periodically reviewing the curriculum, monitoring developments in international standards, and incorporating relevant updates into the education and training framework. The Board includes representatives from academia, regulators, and the profession.

ICMAI reports that revisions to its curriculum and syllabus consider developments in the International Education Standards and other international pronouncements. The institute also supports ongoing professional development through training programs, professional publications, and continuing professional development activities.

While ICMAI has incorporated elements of the IES into its education and training framework, it is not demonstrated that all requirements of the IES in effect as of the time of the assessment have been fully incorporated. ICMAI continues to review and enhance its education and training framework in alignment with international standards.

ICMAI is encouraged to continue its efforts to achieve full alignment with the latest International Education Standards across its IPD and CPD frameworks.

Current Status: Review & Improve

ICMAI does not have direct responsibility for the adoption of auditing standards for statutory financial statement audits in India. Auditing standards are developed by ICAI and notified by the relevant authorities for application in the jurisdiction.

Within the scope of its mandate, ICMAI supports the development and implementation of auditing standards through its participation in the national standard-setting process. The institute is represented on ICAI’s Auditing and Assurance Standards Board, contributing to the development of Standards on Auditing that are aligned with the International Standards on Auditing issued by the IAASB.

ICMAI has also established a Cost Audit and Assurance Standards Board, which develops standards applicable to cost audit and related assurance engagements performed by its members, supporting consistency and quality in these services.

To support implementation, ICMAI disseminates updates on auditing and assurance standards through professional publications, training programs, and continuing professional development activities. The institute also incorporates relevant developments into its education and professional development framework.

Overall, ICMAI actively supports the development and implementation of auditing standards within the scope of its mandate, consistent with the requirements of SMO 3.

Current Status: Sustain

Under the Cost and Works Accountants Act, 1959, ICMAI is responsible for establishing ethical requirements for its members who are Cost and Management Accountants. The institute has issued a Code of Ethics that is based on the 2024 International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the IESBA, with modifications to reflect national laws and regulatory requirements.

ICMAI supports the implementation of ethical requirements through the dissemination of updates on developments issued by the IESBA, as well as through continuing professional development programs, training activities, and educational resources for members. Ethics-related topics are also incorporated into the institute’s education and training programs, including the use of case studies to enhance understanding of ethical issues in professional practice.

ICMAI monitors developments issued by the IESBA and periodically reviews its ethical framework to maintain alignment with evolving international standards.

Overall, ICMAI maintains an established and comprehensive system to support the adoption, implementation, and ongoing application of ethical requirements, consistent with the requirements of SMO 4.

Current Status: Sustain

ICMAI does not have direct responsibility for the adoption of public sector accounting standards in India, which is the responsibility of the Government through the Comptroller and Auditor General of India and the Government Accounting Standards Advisory Board.

Within the scope of its mandate, ICMAI supports the development and implementation of public sector accounting standards through its participation in the national standard-setting process, including representation on GASAB. Through this engagement, the institute contributes technical expertise and promotes the advancement of public sector financial reporting, including the transition toward accrual-based accounting frameworks.

ICMAI also supports its members by raising awareness of developments in public sector accounting and incorporating relevant topics into its education and professional development activities.

Overall, ICMAI demonstrates an active and ongoing role in supporting the development and implementation of public sector accounting standards within the scope of its mandate, consistent with the requirements of SMO 5.

Current Status: Sustain

Under the Cost and Works Accountants Act, 1959, ICMAI is responsible for establishing and operating an investigative and disciplinary (I&D) system for Cost and Management Accountants.

ICMAI’s I&D framework includes the Director (Discipline), Board of Discipline, and Disciplinary Committee, which are responsible for reviewing complaints, conducting investigations, and imposing disciplinary actions where appropriate. Sanctions may include reprimands, fines, suspension, or removal from membership.

ICMAI supports the effectiveness of its I&D system through ongoing awareness initiatives, including continuing professional development programs, professional guidance, and communication of ethical and professional requirements to members.

Overall, ICMAI maintains an established and operational I&D system supported by a statutory framework, consistent with the requirements of SMO 6.

Current Status: Sustain

ICMAI does not have direct responsibility for the adoption of accounting standards in India, which are prescribed by the relevant authorities through the national regulatory framework.

Within the scope of its mandate, ICMAI supports the implementation of accounting standards, including Indian Accounting Standards (Ind AS), through the incorporation of financial reporting topics into its initial professional development and continuing professional development programs. The institute also provides training programs, technical publications, and professional courses, including certificate programs on IFRS and financial reporting standards, to enhance members’ understanding of international developments.

ICMAI monitors pronouncements issued by the International Accounting Standards Board and disseminates updates to its members through professional guidance, training activities, and educational resources.

In addition, ICMAI has established the Cost Accounting Standards Board, which issues Cost Accounting Standards applicable to cost accounting and cost audit engagements performed by its members, supporting consistency and quality in these areas.

Overall, ICMAI actively supports the implementation and application of financial reporting standards within the scope of its mandate, consistent with the requirements of SMO 7.

Current Status: Sustain