A COMPARATIVE STUDY CPA (CA) or CMA(ICWA

A COMPARATIVE STUDY:

Professional Accounting education coverage is wider and richer than an MBA (Finance) education. An MBA (Finance) is an academic degree and is regulated by UGC and AICTE norms. MBA is a mass education system wherein Professional accounting and finance is a specialized skill area. There are professional accounting bodies in all countries especially meant for professional accounting education. Ideally, most countries have two professional accounting bodies, 1. A Management Accountant body and 2. A Chartered Accountant body.  The two Indian accounting bodies are set up by Acts of Parliament. The body of knowledge that are required and taught at both the Management Accountant and Chartered Accountants are essentially the same with the difference that Management Accounting curriculum concerns more of managing the financial performance issues within a company wherein chartered accounting is more of accounting, taxation and auditing. The management accountants manage the accounting, costing, internal control and audit, taxation, budgeting, capital raising, fund management work within the companies and appear as an auditee before the auditors who are chartered accountants. Management Accountants (called cost accountants in India) can also do private practice in the field of statutory ‘Cost Audits’ liker the ‘public audit’ done by the chartered accountants. The above work areas are not covered in the MBA syllabus and that’s why you see MBA(Fin) graduates only opting for careers in banking, insurance and capital markets. The financial market areas are also covered at length in the CPA(CA) and CMA(ICWAI) syllabus and a high proportion of CMA/CPAs work in the financial sectors. Thus, professional accountants are known to be masters of the entire gamut of finance, accounting, taxation, auditing, control, performance management, corporate governance and financial market areas whereas MBA (Fin) only can compete in the areas of financial markets. If an MBA (Fin) wants to work within a company and wants to rise to the Director (Finance) level, he has to learn by experience issues like taxation, audit and compliance, accounting principles, etc. and play the role of management accountant. This is often a difficult proposition and that’s why we find MBA (Fin) are concentrated mostly in the financial services industry. Having accepted that a PA degree is broader than an MBA when discussed in the context of working in the financial field, which one is a better PA? CPA (CA) or CMA(ICWA)? The two accountant groups fight all over the world in establishing themselves over the other group. The truth is that both the CPA and CMA cover invariably the same body of knowledge. The CPAs (CAs) have been given the power of expressing an opinion on the Annual Reports prepared by the professional accountants (CPAs or CMAs) working within the companies. The Auditor CPA is statutorily barred from being in employment when (s) he is in the practice of auditing. If you are looking for a career to work as finance and accounting manager within a company and rise to the position of Director (Finance), then either of the CPA or CMA certifications will be perfect for you. The CPA curriculum is heavy on the audit papers wherein the CMA curriculum is heavier in financial performance management issues.