The demand for accounting professionals, particularly Cost and Management Accountants, is on the rise. There is no supply gap as such, but just that such professionals are absorbed by companies on completion of the course is sufficient to prove the demand, said PVS Jagan Mohan Rao, President, South Asian Federation of Accountants (SAFA).
According to Rao, there are around 70,000 qualified CMAs in the country of which less than one per cent were engaged in private practice and the rest are employed across different industry sectors.
With mergers and consolidation, implementation of IBC (Insolvency and Bankruptcy Code) and NCLT (National Company Law Tribunal), the demand for qualified CMAs has surged. Demand apart, he underscored the huge expectation gap between professional accountants and stakeholders.
Briefing reporters on SAFA’s role, he said, “the current membership (of SAFA) represents ten professional accountancy bodies in Bangladesh, India, Nepal, Pakistan, Sri Lanka and Afghanistan, supporting the growth initiatives and development of the profession in respective nations. There are various accounting issues”.
“As many as 132 countries are members of the International Federation of Accountants and there are issues relating to international auditing standard, international standard on education and so on. Professional accountants are expected to perform their task as per the standard prescribed and the disclosure norms have become very critical,” he explained, before acknowledging professional scepticism. “A CMA’s reputation is crucial; educating directors is therefore the responsibility of such professionals,” he told BusinessLine on the sidelines of the discussion.
Responding to a query he said “the lacunae in ethical disclosures is a major reason for financial scams,” adding “every professional has huge responsibility on compliance and CMAs are no exception.”