hi,
the ICWA institute has entered into an agreement with CMA (USA) that, both would be recognized at par.
to this effect, the CMA is giving its certificates to the ICWA guys......
chk it out.....
Friday, August 28, 2009
Tuesday, February 24, 2009
It's a measure of efficiency & governance
By Kunal Banerjee, President, ICWAI*
The governance structure has to expand its horizon to include a system that ensures optimal utilisation of resources while meeting societal expectations. There has to be a shift from compliance- or rule-based governance to a performance management framework withenterprise governance in mind.
In the context of evaluating the economic competitiveness, the significance of cost management in enterprises cannot be underestimated. CII had studied the cost management practices in different companies, both in the manufacturing and services sector.
The study evolved the concept of maturity levels of companies in cost management. It also suggested the mechanism of certification of cost management practices in companies so as to make them more efficiency driven and competition conscious.
It is true that in a market economy, government control is unwarranted. However, market forces do not eliminate the need to regulate the prices, profits and quality of various products and services to modify the economic behaviour of individuals and firms. Regulatory apparatus needs to foster efficiency and investment by eliminating outdated restrictions and promoting sustainable growth.
Regulators are required to frame right regulations in the interest of the industry as a whole and also in the interest of the consumers and other stakeholders. Cost audit, supported by cost accounting standards, can provide relevant and credible cost and revenue data to the regulators to support their decisions.
Cost audit mechanism under the Companies Act, which is a measure of efficiency and performance and Corporate Social Responsibility can serve as an important tool for effective enterprise governance. Clause 49 of Sebi guidelines on Listing Agreements speaks about performance monitoring.
It is required to be amended to focus and to conform to the cost audit structure so that companies report on the efficiency performance in greater detail enabling the stakeholders to make better evaluation. Cost audit provisions can also help an enterprise to achieve management maturity.
An appropriate cost management system is required in all business units to remain competitive and the government should ensure through a legal framework that such a cost management system is in-built in the governance structure of every company. The ministry of corporate affairs constituted an Expert Group to review the existing mechanism of statutory cost accounting records and cost audit.
The group, in its report submitted in December, 2008, has recommended a radical shift of cost accounting records and cost audit from being compliance- or rule-based governance to performance management framework with focus on three key objectives viz. enterprise governance, competitiveness and strengthening the regulatory mechanism.
These recommendations acquire great significance in the current context of governance failure. Cost audit methodology as structured originally under Section 233B and the existing Cost Audit Report Rules, is proposed to be realigned with the cost management perspectives.
The Group has redefined the cost audit objectives focussing on the efficiency review aspect making the entire mechanism a value-adding exercise without losing the legalbackup and the mandatory force it gives for compliance and has aligned the same with cost management and better enterprise governance.
(*
Sunday, February 22, 2009
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