The provision of statutory cost audit by Cost & Management Accountants (CMAs) in the present Companies Act, now covering 44 industries, provides an independent review of costs and cost management efficacies of corporates.
This issue was discussed during a meeting of the general members of Eastern India Regional Council (EIRC) on November 1 at Kolkata where a strongly worded resolution was adopted in support of retaining the exclusive right of CMAs to do cost audit. Interestingly, soon after this resolution was highlighted by the media, Kunal Banerjee, ICWAI president who is also an ICAI member (a former practicing CA), slapped show case notices on EIRC vice president and treasurer asking why disciplinary action should not be taken against them for airing their views – which he found to be in “bad taste” and which had “damaged the cause of the Institute to a great extent” – to the media. This show cause notice has come as a surprise to many members who wonder if the ‘cause of the institution’ could be helped by abolishing CMAs’ right to do cost audit, and if the ICWAI president was more inclined to serve the interests of chartered accountants, even if it is at the cost of CMAs. In the ICWAI Council, four out of five government nominees are chartered accountants.....Continue
This issue was discussed during a meeting of the general members of Eastern India Regional Council (EIRC) on November 1 at Kolkata where a strongly worded resolution was adopted in support of retaining the exclusive right of CMAs to do cost audit. Interestingly, soon after this resolution was highlighted by the media, Kunal Banerjee, ICWAI president who is also an ICAI member (a former practicing CA), slapped show case notices on EIRC vice president and treasurer asking why disciplinary action should not be taken against them for airing their views – which he found to be in “bad taste” and which had “damaged the cause of the Institute to a great extent” – to the media. This show cause notice has come as a surprise to many members who wonder if the ‘cause of the institution’ could be helped by abolishing CMAs’ right to do cost audit, and if the ICWAI president was more inclined to serve the interests of chartered accountants, even if it is at the cost of CMAs. In the ICWAI Council, four out of five government nominees are chartered accountants.....Continue
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