Institute of Cost Accountants of India

Under the Cost and Works Accountants Act, 1959, members of the Institute of Cost Accountants of India (ICMAI) are authorized to perform cost accounting and cost audit engagements. ICMAI supports quality in these services through the issuance of Cost Accounting Standards, Cost Audit and Assurance Standards, guidance notes, and continuing professional development activities.

ICMAI does not have direct responsibility for the statutory financial statement audit quality assurance system in India. Statutory financial statement audits are conducted by members of the Institute of Chartered Accountants of India and are subject to quality assurance arrangements administered by that institute and oversight by the National Financial Reporting Authority. Where ICMAI members perform statutory financial statement audits, they must also be members of the Institute of Chartered Accountants of India and are therefore subject to its quality assurance framework.

Within its mandate, ICMAI has established mechanisms to promote quality in cost accounting and cost audit services. The Quality Review Board, established under the Cost and Works Accountants Act, 1959, evaluates services provided by ICMAI members, while ICMAI’s Peer Review Board reviews systems, procedures, and practices of practicing members and has issued updated peer review reporting formats, key learnings, and frequently asked questions to support implementation.

ICMAI continues to support members through technical guidance, professional standards, and training activities. Accordingly, ICMAI continues to demonstrate sustained fulfillment of SMO 1 requirements within the scope of its mandate.

ICMAI is encouraged to continue strengthening its peer review and quality review mechanisms for cost audit and related services, monitor jurisdiction-level developments in quality management standards, and continue coordinating with relevant regulators and the Institute of Chartered Accountants of India on audit quality developments affecting members who also perform statutory financial statement audits.

Current Status: Sustain

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

ICMAI operates a structured professional education program leading to qualification as a Cost and Management Accountant. The current CMA Syllabus 2022 is supported by study materials, model question papers, practice tests, and practical training requirements intended to develop technical knowledge, practical skills, and professional competence. ICMAI also maintains continuing professional education requirements for members, including updated CPE Guidelines 2024 and related programs to support ongoing professional development.

ICMAI continues to review and update its education and training framework, including through syllabus revisions, practical training requirements, professional development programs, and member guidance. While these activities support alignment with SMO 2, full incorporation of all requirements of the latest International Education Standards has not been demonstrated across ICMAI’s initial and continuing professional development framework.

ICMAI is encouraged to conduct and document a comprehensive mapping of its syllabus, practical training, assessment, and continuing professional education requirements against the latest International Education Standards, and to use the results to address any remaining gaps in its education and professional development framework.

Current Status: Review & Improve

The Institute of Cost Accountants of India (ICMAI) does not have direct responsibility for the adoption of auditing standards for statutory financial statement audits in India. Auditing standards are developed by the Institute of Chartered Accountants of India and are prescribed by the relevant authorities for application in the jurisdiction.

Within the scope of its mandate, ICMAI supports the development and implementation of auditing and assurance standards through its participation in the national standard-setting process. ICMAI is represented on the Auditing and Assurance Standards Board of the Institute of Chartered Accountants of India, contributing to the development of Standards on Auditing that are aligned with International Standards on Auditing issued by the International Auditing and Assurance Standards Board.

ICMAI has also established a Cost Audit and Assurance Standards Board, which develops Cost Audit and Assurance Standards, Assignment Standards, Standards on Related Services, and implementation guidance applicable to cost audit and related assurance engagements performed by its members. The Board also issues guidance notes and frequently asked questions to assist members in applying professional standards.

ICMAI disseminates technical updates and supports implementation through professional guidance, publications, training programs, and continuing professional development activities. While India’s Standards on Auditing are assessed as Partially Adopted at the jurisdiction level, ICMAI continues to support the implementation of auditing and assurance standards within the scope of its mandate and to use its best endeavors where it does not have direct authority. Accordingly, ICMAI is assessed as Sustain for SMO 3.

ICMAI is encouraged to continue monitoring developments in the jurisdiction-level adoption of International Standards on Auditing, including remaining convergence gaps, and to continue supporting members through guidance and training on cost audit, assurance, and related services standards.

Current Status: Sustain

Under the Cost and Works Accountants Act, 1959, the Institute of Cost Accountants of India (ICMAI) has direct responsibility for establishing ethical requirements for its members.

ICMAI issued a revised Code of Ethics for members, effective June 1, 2025, including independence standards for audit and review engagements and for assurance engagements other than audit and review engagements. The Code was developed by ICMAI’s Cost Auditing and Assurance Standards Board and approved by the Council of the Institute following public exposure. It is based on the 2024 Handbook of the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, with modifications to reflect national legal and regulatory requirements.

ICMAI supports implementation through professional guidance, member communications, continuing professional development programs, and incorporation of ethics-related requirements into its education and training framework. The Code is also linked to ICMAI’s investigative and disciplinary framework under the Act.

While the jurisdiction-level ethical requirements are assessed as Partially Adopted because the 2025 IESBA Handbook has not yet been incorporated, ICMAI has taken recent action to update and implement a comprehensive ethical framework within the scope of its mandate.

ICMAI is encouraged to maintain a formal process to monitor and incorporate new and revised pronouncements issued by the International Ethics Standards Board for Accountants, including timely consideration of the 2025 Handbook and future revisions.

Current Status: Sustain

The Institute of Cost Accountants of India (ICMAI) does not have direct responsibility for the adoption of public sector accounting standards in India. Public sector accounting standards are developed through the Government Accounting Standards Advisory Board (GASAB), established by the Comptroller and Auditor General of India with the support of the Government of India.

Within the scope of its mandate, ICMAI supports the development and implementation of public sector accounting standards through participation in national public sector standard-setting and related consultative activities. GASAB’s standard-setting framework includes representation from the accountancy profession, and ICMAI has contributed technical input to public sector financial reporting developments, including initiatives related to the transition from cash-basis to accrual-basis accounting and natural resource accounting.

ICMAI also supports its members by incorporating public sector accounting, government accounting, and related financial reporting topics into its education materials, professional publications, and continuing professional development activities.

While IPSAS are assessed as Not Adopted at the jurisdiction level, ICMAI continues to use its best endeavors to support public sector accounting developments within the scope of its mandate. Accordingly, ICMAI is assessed as Sustain for SMO 5.

ICMAI is encouraged to continue supporting GASAB and relevant public authorities in advancing accrual-based public sector financial reporting and to further raise member awareness of International Public Sector Accounting Standards and related public sector reporting developments.

Current Status: Sustain

Under the Cost and Works Accountants Act, 1959, the Institute of Cost Accountants of India (ICMAI) has direct responsibility for establishing and operating an investigative and disciplinary system for Cost and Management Accountants.

ICMAI’s framework includes the Director (Discipline), Board of Discipline, and Disciplinary Committee, which are responsible for receiving complaints and information, conducting investigations, determining cases of professional or other misconduct, and imposing disciplinary actions where appropriate. Sanctions may include reprimands, monetary penalties, suspension, or removal from membership. Members may appeal disciplinary decisions to the Appellate Authority established under the Act.

ICMAI supports the effectiveness of its investigative and disciplinary system by publishing disciplinary procedures and orders, communicating ethical and professional requirements to members, and supporting awareness through continuing professional development programs and professional guidance. The system is also linked to ICMAI’s Code of Ethics and professional standards.

Accordingly, ICMAI maintains an established and operational investigative and disciplinary system supported by a statutory framework and aligned with SMO 6 requirements.

ICMAI is encouraged to continue publishing information on disciplinary procedures and outcomes, monitoring the effectiveness and timeliness of case handling, and using disciplinary findings to inform member education, guidance, and continuing professional development activities.

Current Status: Sustain

The Institute of Cost Accountants of India (ICMAI) does not have direct responsibility for the adoption of corporate financial reporting standards in India. Accounting standards are prescribed by the Ministry of Corporate Affairs through the national regulatory framework.

Within the scope of its mandate, ICMAI supports implementation of financial reporting standards, including Indian Accounting Standards (Ind AS), through its education framework, continuing professional education programs, technical publications, and professional development activities. ICMAI also provides members with access to resources on international financial reporting and connected financial reporting developments.

ICMAI has established the Cost Accounting Standards Board, which issues Cost Accounting Standards, Generally Accepted Cost Accounting Principles, guidance notes, frequently asked questions, and application guidance to support consistent application of cost accounting requirements by members.

While IFRS Accounting Standards are assessed as Partially Adopted at the jurisdiction level, ICMAI continues to use its best endeavors to support implementation of financial reporting standards and related cost accounting standards within the scope of its mandate.

ICMAI is encouraged to continue monitoring developments in IFRS Accounting Standards, Ind AS, and sustainability-related corporate reporting, and to further support members through targeted guidance and training on new and revised reporting requirements.

Current Status: Sustain