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The dispute between CA and CMA audit mandates is a high-stakes legal and professional fight within India's financial sector. It primarily revolves around the exclusive right to perform audits of companies. The Institute of Chartered Accountants of India (ICAI) upholds its longstanding statutory mon
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The dispute centres on the exclusive right to perform financial audits of companies in India. ICAI claims this right under the Companies Act, 2013, while ICMAI argues its members are also authorised.
The ICAI maintains that the specialised and rigorous training of Chartered Accountants makes them uniquely qualified for statutory tax audits, which they argue has historically and legally been their exclusive domain.
The ICMAI contends that its Cost and Management Accountant (CMA) members have comprehensive education and their legally mandated 'cost audit' function requires extensive verification of financial records, making them qualified for financial audits.
Traditionally, the Ministry of Corporate Affairs (MCA) has supported the exclusive right of CAs for financial audits. A 2018 MCA circular reinforced this, stating CMAs were not authorised for financial audits under the Companies Act, 2013.
The Madras High Court issued an interim stay order, temporarily suspending the 2018 MCA circular. This means the MCA cannot enforce the circular while the case is being heard, allowing CMAs to perform financial audits during this period.
As of 2025, Chartered Accountants are authorised for tax and statutory audits, while Cost Accountants are authorised only for cost audits. The new law, likely effective from April 1, 2026, is expected to maintain CA exclusivity unless legislative changes occur.
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