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MOU With CIMA ICWAI a historic agreement

CIMA has signed an "historic" agreement with the Institute of Cost and Works Accountants of India (ICWAI) on 12-Jan-09.

This agreement will serve to both strengthen the professional accounting links between two of the world’s leading economies and provide highly skilled professional accountants for the global labour market enabling both institutes to work together to enhance recognition of the profession and their professional bodies.

Glynn Lowth, President of CIMA, explained that the agreement will strengthen links between the British and Indian economies, as well as creating highly-skilled accountants.

ICWAI members Accelerated Route to CIMA Membership

Members and passed finalists of the Institute of Cost and Works Accountants of India (ICWAI) who have completed the ICWAI Final Examination are eligible for exemptions from all CIMA's certificate and managerial level exams. There are 11 exemptions in total.

CIMA Professional Gateway Assessment Examination

Candidates must pass the CIMA Professional Gateway Assessment (CPGA) Examination before they are eligible to begin studying for CIMA's strategic level exams.

The examination is three hours long and consists of :

* three compulsory questions worth 25 marks each
* a series of objective test questions worth a total of 25 marks.

A student must score at least 50 marks to pass the examination.

The first sitting of the CPGA Examination will take place on 20 May 2009 at regular CIMA exam centres in India. More details about enrolling for the examination will be available when CIMA exam entry opens on 2 February 2009. Click here for details.

CIMA members Accelerated Route to ICWAI membership

CIMA passed finalist and members will also have a fast track route to ICWAI membership. Details on ICWAI website.

Two years back both the institutes were in loggerhead about CIMA conducting examinations in India. I had posed a question on the Management Accountant Blog "Does CIMA add value to ICWAI member" ? The opinion poll was majority "Yes" whereas I had a different opinion. My opinion is still remains the same.

Does the MOU benefit ICWAI member to gain membership to CIMA ? The answer is Yes.

  • ICWAI passed finalist and members has now most number of exemptions with CIMA as compared to any other accounting body. This was not the case earlier.
  • They will not be required to pay exemption fees for the eleven exempted papers. The student registration fee and annual subscription fee are the same as for all CIMA students.
  • CIMA membership is widely recognised in the world. So one does have to do any explaining about your qualification.
The passed finalist and graduate of ICWAI will have to apply for membership of ICWAI. Then they will be able to gain membership of CIMA under the MOU. So members of ICWAI is going to increase and the institute has to provide improved services to its members.

Looking at MOU between ICWAI - CIMA, CIMA website does not seem have details on how a CIMA member would become member of ICWAI. Their focus is working with business rather than practise accountancy in India.

The entry requirement will prompt ICWAI members to go for CIMA qualification which in long run would increase membership of CIMA. A growing membership will fund CIMA to promote itself and influence the business in the long run through its members.

On November 20, 2008, ICAI signed a MOU with ICAEW, UK and terms of agreements are more favourable to ICAEW, UK. The entry requirement for ICAI members are more stringent and expensive ( £1,990 to start with). ICAEW, UK member has an easier route to become a member of ICAI and start practice in India.

Recent controversy on Satyam has taken ICAI off guard. The statements in the press by ICAI President is very surprising.

According to Hindu Businessline

The ICAI President, Mr Ved Jain, said, “KPMG cannot be an auditor for Satyam as it is not registered with ICAI. It is not subject to the code of conduct prescribed for CAs. They are also not subject to disciplinary proceedings.”

He said ICAI will take up the issue of KPMG with Satyam and also the Government. On Price Waterhouse, he noted that ICAI could issue a notice in the wake of the Satyam fiasco as it was registered with ICAI, but in the case of KPMG, it could not do anything. A KPMG spokesperson said, “We are working with the board of Satyam. The scope of work and terms of reference are being discussed.”

When contacted by Economic Times, a KPMG spokesperson said: “We are working with the new board of Satyam Computers. The scope of work and terms of reference are being discussed with a view to their finalisation . It is our understanding that the scope of work to be finalised is not reserved for chartered accountants registered with the ICAI.”

President should have gathered facts first before making statements in the press. And in any case, the Companies Act is very specific on who can be appointed as an Auditor of the company. Read the comments of Readers of ET.

So you have to watch the space on MOU of ICAI-ICAEW . Whether ICAEW members will pursue ICAI membership for a slice of share in accountancy practise in India.

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You may also like to read

  1. ICWAI promotes IMA, Oman
  2. Accounting Profession in India 22-May-08
  3. The word "Chartered" a hot debate in India 05-Dec-06
  4. Professional Body 28-April-07
  5. Membership of Accounting Body - Value Proposition 20-Mar-08
  6. Profession v/s Professionalism


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