05 July 2014
In the present scenario, Cost Accountants are in great demand in private enterprises, government sector, banking & finance sector, developmental agencies, education, training & research sector as well as in service and public utility sector. Because of their quality training, they can hold top management position in public and private sectors’ enterprises like Chairman cum Managing Directors, Managing Director, Finance Director, Financial Controller, Chief Financial Officer (CFO), Cost Controller, Marketing Manager and Chief Internal Auditor etc. Those managing their own businesses have found themselves a Manager and an Accountant to control and flourish their businesses. There is no doubt that a Cost Accountant can attain the highest ladder of professional career. There is a sustained demand for qualified, trained and experienced cost accountants in India and abroad in different industries and Government Departments. Many members of the Institute are also engaged in providing professional and cost consultancy services and in teaching cost and management accountancy in Universities and Colleges. Cost accountancy edges over financial accounting. Cost accounting promotes study and adoption of scientific methods to secure maximum efficiency in industrial, commercial and other spheres, as compared to financial accounting. Financial accounting mainly draws conclusions on the basis of post facto data long after the operations are put through and expenditure were incurred enabling score keeping or at best statistical analysis. Therefore, role of cost accountants go beyond a financial accountant and they help the management in regulating production operations and processes of production. The members of the Institute are the driving force in the team of management while in employment, and as Cost Auditors, Advisors and Consultants in practice. There are several areas of practice available for Cost Accountants, a list of which is given below:
Independent practice There is vast scope for practice by a Cost Accountant for which he has to obtain Practice Certificate from the Institute. Details in this regard are available in the “Membership Section” of the Institute website: http://www.icmai.in A Cost Accountant may set up the practice at his own as Proprietor or set up a new partnership firm with like-minded Cost Accountants in practice or may be admitted as new partner in the existing firm of Cost Accountants in practice. His clientele include private and public companies, large, medium and small scale undertakings, partnership and proprietary concerns, industrial, commercial and service undertakings etc. Suggested guidelines for minimum fee may be seen from the Institute website at: http://icmai.in/upload/carr-car/Cost_Audit_Fee_of_ICWAI.pdf There are several areas of practice available for Cost Accountants, which are as follows:
Fields for Practice
The Fields for Practising Cost Accountants are divided into two parts: a) Audit areas and b) Certification and Consultancy areas. These areas are further bifurcated under Central and State Governments. Summarized position in respect of Fields for Practising Cost Accountants is as follows: a) Audit areas: Cost Audit – Corporate Sector Compliance Audit of Reserve Bank of India (India's Central Bank) for the purpose of Lending under Consortium Arrangement / Multiple Banking Arrangements Cost Audit – Co-operative sector VAT Audit under various State Value Added Tax/ Rules Internal Audit of Companies including SEBI and NSDL Stock Audit for Banks Central Excise Audit Concurrent Audit
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