Indian Banks’ Association


No C&I/Cir/2015-16/1217

Dated- August 12, 2015

The Chief Executive of All Member Banks

Inclusion of Cost Accountants for Stock Audit and Risk Based Internal Audit

The Institute of Cost Accountants of India (ICAI) regulates the profession of Cost and Management Accountancy (CMA), provides coaching and training facilities, organize professional development programs for the members and undertake research program in the field of CMA.

2. The Institute approached IBA stating that the Companies Act, 2013 mandates equal opportunities to Cost Accountants under various sections and provisions of the Act. These include Cost Audit of the Company under section 148(2), 232(7), 259(1), 275(2). On examinations of these sections, it was noticed that Section 138(1) states that an internal auditor could either be a chartered accountant or cost accountant. Similarly, audit of cost records under Section 148(2) would be undertaken by cost accountant as per standards prescribed by ICWAI. Other assignments are required to be given to persons appearing in approved panels / data bases maintained by relevant authorities and Cost Accountants if they are part of such databases would also qualify for these assignments. The matter was placed before the Managing Committee of the Association on July 31, 2015 for discussion. The Committee, after deliberations, decided that IBA shall write to member banks requesting to consider Cost Accountants / Firms of Cost Accountants for Stock Audit, Risk Based Internal Audit and Other Operations.

Member banks may consider the request of the Institute.

Yours faithfully,

(M K Datar)
Sr. Advisor

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Category : CA, CS, CMA (3938)
Type : News (13996)
Tags : Audit (467) CMA (346) Empanelment (512)

0 responses to “IBA request banks to consider Cost Accountants for Stock Audit & Risk Based Internal Audit”

  1. CMA Anand Pandey(Ranchi) says:

    “KHUDI KO KAR BULAND ITNA KI HAR TAKDIR SE PAHLE KHUDA BANDE SE KHUD PUCHHE KI BATA TERI RAJA KAYA HAI”- Unfortunately we have to request to IBA and IBA writes may consider instead of should consider.Anyway cost accountant needs to unite first then fight for their legitimate right. Remmeber dear collegues- united we are power divided we will lose opportuinity.

  2. CMA Satyabrata says:

    Good start!

    Banks have always been reluctant to acknowledge CMA as a profession, be it recruitment or other legs of Accountancy proffession, they have refused the existence of ICAI(Cost). Hope ‘Achhe din’ will come to the proffession.


    its very necessary for cost competitive environment,
    CMA Ramlakhan Ahirwar

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