The Institute of Cost Accountants of India (ICMAI) has issued a code of ethics for Cost and Management Accountants (CMAs) which will be effective from 1st June 2025.
The Code of Ethics sets out fundamental principles of ethics for the members of the Institute i.e. Cost and Management Accountants (CMAs), reflecting the profession’s recognition of its public interest responsibility. These principles
establish the standard of behavior expected of a CMA. The fundamental principles are: integrity, objectivity, professional competence and due care, confidentiality, and professional behavior.
The Code provides a conceptual framework that CMAs are to apply in order to identify, evaluate and address threats to compliance with the fundamental principles. The Code sets out requirements and application material on various topics to help CMAs apply the conceptual framework to those topics. In the case of audits, reviews and other assurance engagements, the Code sets out Independence Standards, established by the application of the conceptual framework to threats to independence in relation to these engagements.
The Code requires CMAs to comply with the fundamental principles of ethics. The Code also requires them to apply the conceptual framework to identify, evaluate and address threats to compliance with the fundamental principles. Applying the
conceptual framework requires having an inquiring mind, exercising professional judgment, and using the reasonable and informed third party test. The conceptual framework recognizes that the existence of conditions, policies and procedures established by the profession, legislation, regulation, the firm, or the employing organization might impact the identification of threats. Those conditions, policies and procedures might also be a relevant factor in the CMA’s evaluation of whether a threat is at an acceptable level. When threats are not at an acceptable level, the conceptual framework requires the CMA to address those threats. Applying safeguards is one way that threats might be addressed. Safeguards are actions individually or in combination that the CMA takes that effectively reduce threats to an acceptable level.
