Every profession have its core competency. What is our core
competency? In my opinion, our core competency is Cost Accounting which at its
advance stage leads to Managerial
Cost Accounting – Cost Accounting for internal reporting for use by management.
Cost records mandated under rules are minimum requirement which can
serve as a foundation for building Total
& Strategic Cost Management structure for internal use. But somehow
a bogue is created that cost records & cost audit will give confidential
data to Government and the result is opposition to cost records and cost audit.
Unfortunately CMA fraternity& ICAI – CMA are not fully
succeeded to counter the opposition and convince the stake holders about
benefit to overall economy under competition. In addition to this CMA
fraternity with a few exceptions have not developed competency levels beyond
routine cost records & cost audit. This has given further boost to the
opposition to cost audit. This has also resulted in situation where it seems
even in our core competency areas,CMAs & ICAI –CMA are being driven out by
sister professionals.
What lesson the CMA fraternity should learn from this?
First requirement is to build competency beyond cost records
& cost audit without discarding cost records & cost audit as useless.
Senior CMAs have to guide & assist ICAI-CMA to dovetail
the mandated cost records with the operational needs of the manufacturing &
service industries. The task is not easy & a challenging one. But ICAI-CMA
should take lead in this matter.
Another aspect of the situation is CMAs in practice.
Majority of CMAs & CMA firms have expertise in Cost Audit. CMAs having
expertise in ABC,Total Cost Management, Strategic Cost Management, etc. are
having “Solo Practice” or are attached to “BIG-4” & so their contribution
is counted under BIG-4 name. Why can’t be their “Make in India” by Indian Firms
in Financial & Consultancy services by Indian Firms? Why we can’t convince
GOI & Industry Associations that “We Can Make It”?