In order to give due recognition to the Institute of Cost and Works Accounts of India (ICWAI), an apex body to regulate the profession of cost and management accountancy in India, the Ministry of Corporate Affairs (MCA) is in the process of reviewing the existing cost accounting rules and the cost accounting standards of ICWAI.
"As compared to other professional bodies, ICWAI has got lesser statuary recognition, which needs to be rectified," said Anurag Goel secretary of MCA. ICWAI hasn't been utilised to its full potential because of the notion that cost and management accountancy is internal to the industry/corporate sector, added Goel who was speaking at an ICWAI function in New Delhi.
In order to enhance the country's competitiveness, the ministry had constituted an expert group to restructure the framework of cost accounting records, cost audit mechanism and cost accounting standards.
The group has already submitted its report to the ministry, which would now invite suggestions and comments from all stakeholders, said Goel.
The report has recommended that regulators should move from the compliance oriented framework to a performance management framework with enterprise governance in mind. This shift becomes very important in the context of the Rs 7,000 crore Satyam fraud, said Kunal Banerjee, president of ICWAI. On January 7, founder of Satyam Computer Services, B Ramalinga Raju confessed to fudging the company's accounts and left the fourth largest IT company in the lurch.
"The ministry should get the report examined at the earliest so that the issues of enterprise governance, corporate competitiveness and strengthening the hands of regulatory bodies are addressed to avoid another corporate financial catastrophe," added Banerjee.
Definitely, this should have been done long back but its not late yet..
ICAI should concentrate on Statutory audit whereas ICWAI should do the Cost and Performance Audits say more of Management Accounting. I hope the appropriate Authority takes the right steps before it gets too late. I am sure no one wants to see mare of these Big scams specially when the economic condition is so unstable.
Its NOW or NEVER!
Boost ICWAI, they are very much betters when compared with members ICAI in all respects,always competition will give better atomsphere. Now the Members of ICAI feeling as monarchs. If you give opportunity Members of CWA the users of the Accounting profession will be benefited financially and service wise.
Posted by: mahesh
April 05 , 2009, 22:09 IST
Right said,CWA members have better analytical view towards companys' monetary and expansion policies .They can regulate and control frauds and misappropriation at early stage.Management accounting certainly enhance corporate competitiveness.
ICAI should understand that Statutory Audit is not a divine priilage given to them.ICAI is actually at an abligation to perform the audits and bring out the true and fair nature of India Inc which so unfortunately is not happening.Let ICAI concentrate on Statutory audit and ICWAI should do the Cost and Performance Audits.This will avoid monopoly and will do only good to Indian Industry.
ICWAI has been neglected for all this years.MCA has behaved stepmotherly. ICAI is running & lobbying like a private institution. they haven't spared IIM Graduates , doctors & engineers by acknowledging that their study cost is cheap compare to above and get pay package equal or more than above.
This is a serious issue, we must how long we will allow this so called premier accounting body to misuse its statutory power for putting countries future into stake.We must think to boos the best alternative.
2nd Audit Should be given to ICWAI.As it is the only accounting body in India other than ICAI.
Posted by: raj
May 05 , 2010, 13:34 IST
icwai should get equal recognition of what icai has now in india.Ministry should take immediate action on this so that icwai students get equal value when compared to icai students. let it be a new era for icwai and hope icwai will get equal right as icai regarding public pratice as well as corporate sector both national and international.Name change of icwai will definetly improve the recognition of icwai in india.Goverment should not allow any monopoly.
ICWAI members have good potential. They can contribute lost to India Inc. But, unfortunatly ICAI is dominating the accounting sector. ICAI should understand that they have given a pivotal role to play, they are at the best. Then why they are encroaching to other's pocket. For example they are publishing journal on management accounting, the domain of ICWAI. Similary ICAI is issuing Corporate Affairs Standards, which is a domain of ICSI.
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