CMA Intermediate Corporate Accounting and Auditing Classes

CMA Intermediate Paper 10 — Corporate Accounting and Auditing

Corporate Accounting and Auditing is a 100-mark paper that takes Ind AS application to an advanced level and introduces the audit function — particularly Cost Audit, which is the CMA profession's signature statutory function. Students who master Paper 10 are equipped to perform the very audit work that uniquely qualifies CMAs under Section 148 of the Companies Act 2013.

Corporate Accounting (Advanced)

• Ind AS (Advanced Application) — Ind AS 103 (Business Combinations — acquisition method, goodwill, NCI), Ind AS 110 (Consolidated Financial Statements — subsidiary consolidation), Ind AS 28 (Equity method for associates), Ind AS 109 (Financial Instruments — amortised cost, FVOCI, FVTPL classification), Ind AS 115 (Revenue — 5-step model)
• Corporate Restructuring — Accounting for mergers and demergers, scheme of arrangement, treatment of reserves in restructuring
• Buy-back of Shares — Methods (tender offer, open market), accounting entries, Capital Redemption Reserve
• Earnings Per Share — Basic EPS and diluted EPS under Ind AS 33

Auditing

• Audit fundamentals — Types of audit, auditor's independence, audit risk model
• Standards on Auditing — SA 200 series (objectives, ethical requirements), SA 300 (planning), SA 315 (risk assessment), SA 500–580 (evidence), SA 700 series (reporting)
• Internal Audit — Role, independence, internal audit vs statutory audit, CAG and government audit
• Cost Audit — Section 148 of Companies Act 2013, Cost Audit Report Rules 2011, Companies (Cost Records and Audit) Rules 2014, FORM CRA-1 (Cost Records), CRA-3 (Cost Audit Report), CRA-4 (filing with MCA), categories of companies required to maintain cost records
• Secretarial Audit — Overview from a CMA perspective (Form MR-3)

Cost Audit — The CMA's Unique Statutory Role

Cost Audit under Section 148 is exclusively reserved for Cost Accountants (ICMAI members in practice). ICMAI tests the complete Cost Audit framework in Paper 10: which companies must maintain cost records (Companies (Cost Records and Audit) Rules 2014 — regulated and non-regulated sectors, threshold limits), what a cost audit covers (product-wise cost statement, efficiency ratios, capacity utilisation), the CRA form structure, and filing timelines with MCA (within 180 days of financial year end).