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US CMA | CMA USA Part I Internal Controls subject details

US CMA | CMA USA Part I Internal Controls

US CMA | CMA USA Part I Internal Controls -Before going into that lets know a little bit about CA USA Course syllabus.

Founded in 1887, the AICPA represents the CPA profession nationally regarding rule-making and standard-setting, and serves as an advocate before legislative bodies, public interest groups and other professional organizations. The AICPA develops standards for audits of private companies and other services by CPAs; provides educational guidance materials to its members; develops and grades the Uniform CPA Examination; and monitors and enforces compliance with the profession’s technical and ethical standards.

The AICPA’s founding established accountancy as a profession distinguished by rigorous educational requirements, high professional standards, a strict code of professional ethics, a licensing status and a commitment to serving the public interest.

Internal Controls-Internal Controls covers about 15% of the relative weight of the whole syllabus.

The below topics are to be followed for effective preparation under level C:

Corporate governance; internal control risk; internal control environment, procedures, and standards; responsibility and authority for internal auditing; types of audits; assessing the adequacy of the accounting information system controls; and business continuity planning.

Suggested Reading List for Internal Controls is listed as follows:

Simkin, Mark G., Rose, Jacob M., Norman, Carolyn S., Core Concepts of Accounting Information Systems, 12th edition, John Wiley & Sons, Hoboken, NJ, 2012. Bodnar, George, H., and Hopwood, William S., Accounting Information Systems, 10th edition, Prentice-Hall, Upper Saddle River, NJ, 2010. Sawyer’s Guide for Internal Auditors, 6 th edition, The Institute of Internal Auditors Research Foundation (IIARF), Altamonte Springs, FL, 2012.

US CMA | CMA USA Part I Internal Controls 

The following are the Content Specification Outlines for Internal Controls

1. Governance, risk, and compliance

Governance, Risk and Compliance, or GRC for short, refers to a company’s coordinated strategy for managing the broad issues of corporate governance, enterprise risk management (ERM) and corporate compliance with regard to regulatory requirements.

a. Internal control structure and management philosophy

b. Internal control policies for safeguarding and assurance

c. Internal control risk

d. Corporate governance

e. External audit requirements

2.Internal auditing

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.Internal auditing is a catalyst for improving an organization’s governance, risk management and management controls by providing insight and recommendations based on analyses and assessments of data and business processes. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice. Professionals called internal auditors are employed by organizations to perform the internal auditing activity.

a. Responsibility and authority of the internal audit function

b. Types of audits conducted by internal auditors

3. Systems controls and security measures

Security controls are safeguards or countermeasures to avoid, detect, counteract, or minimize security risks to physical property, information, computer systems, or other assets.

They can be classified by several criteria. For example, according to the time that they act, relative to a security incident:

  • Before the event, preventive controls are intended to prevent an incident from occurring e.g. by locking out unauthorized intruders;
  • During the event, detective controls are intended to identify and characterize an incident in progress e.g. by sounding the intruder alarm and alerting the security guards or police;
  • After the event, corrective controls are intended to limit the extent of any damage caused by the incident e.g. by recovering the organization to normal working status as efficiently as possible.

a. General accounting system controls

b. Application and transaction controls

c. Network controls

d. Backup controls

e. Business continuity planning

US CMA | CMA USA Part I Internal Controls 

CMA EXAM

RATIO DEFINITIONS

Following are some of the useful abbreviations

  • EBIT = Earnings before interest and taxes
  • EBITDA = Earnings before interest, taxes, depreciation and amortization
  • EBT = Earnings before taxes
  • EPS = Earnings per share
  • ROA = Return on assets
  • ROE = Return on equity

US CMA | CMA USA Subject wise Weightage :   Once you have received authorization from ICMA, it is your responsibility to schedule your appointment at a Prometric Testing Center. Log onto www.prometric.com/ICMA to locate a testing center, schedule, confirm, reschedule, or cancel your appointment 24 hours, 7 days a week. Instructions are provided by ICMA at the time your authorization letter is emailed that provides further options for scheduling. ICMA is not responsible if you delay scheduling and there are no longer appointments available within your authorization period. You will be given a confirmation number at the time you schedule an appointment; you should make a note of this number. If you do not schedule an appointment or you don’t appear for a schedule appointment in the selected testing window, you will forfeit your exam fee.

The CMA examination is given in a computer-based format, and is offered at Prometric Testing Centers located throughout the world. An up-to-date listing of all Prometric Testing Centers can be found at Prometric’s website. www.prometric.com/ICMA. Parts 1 and 2 are offered during the following three testing windows. January/February May/June September/October Registrations for Parts 1 and 2 will close on or after the 15th of February, June, and October. Register for the exam: 1. On-line at the online store. 2. Calling 800-638-4427, or (201) 573-9000 with your credit card information.

US CMA | CMA USA Part I Internal Controls 

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