CMA presentation 9 26 06

CMA
Certification
What it Can
Mean for You


Institute of Management Accountants
(IMA)
Vision –
The world’s leading association for
management accounting and finance
professionals


Building Your Career
• CMA Certification Program
• Professional Development Opportunities
• Networking & Leadership Opportunities
• Local Chapter Meetings
• Virtual Communities
• IMA Ethics Center and Ethics Helpline


Management Accountants – Who are
we?
•
•
•
•
•
•

Chief Accounting Officer/DaimlerChrysler
Chairman, a Hong Kong Bank
KPMG consulting partner
VP, Operational Excellence, Merck
Third in command at the FBI
VP, Investor Relations, Johnson & Johnson

Source: The Diverse Roles of Professional Accountants in Business,
IFAC, New York, November 2004, Available at www.ifac.org .


Management Accountants – What do
we do?
• Act as trusted business advisors
• Support business management and
strategic development
• Provide accurate information for better
decisions
• Act as conscience of last resort
• Work “hands on” to add value in
organizations
• Plan for the long-term
Source: The Diverse Roles of Professional Accountants in Business,
IFAC, New York, November 2004, Available at www.ifac.org.


IMA & the Profession
• Empower professionals inside
organizations who create economic

value
• Foster unique role as the ones
responsible for “building quality in”
• Outside audit works best when the
“inside” job is done correctly
• Ethical and responsible corporate
governance must come from the
“inside”


CMA – CPA Comparison
CMA:
• Preparer/User of
accounting
information
• Concept based
• “Inside” corporate
professionals
• Higher quality, lower
costs
• Forward-looking
• Player

CPA:
• Auditor of accounting
information
• Rule based
• Public practice
licensure
• Attesting to the

accuracy of financial
records
• Historical
• Referee


CMA Certification

The appropriate

“gold standard”

for accountants working
inside organizations


A CMA Professional Has…
• Demonstrated ability to work across the breadth
and depth of the entire accounting process within
organizations
• Proficiency in decision-making, planning, and
control functions
• Agreed to maintain professional competence
through annual continuing professional education
• Committed to a code of ethics


How Does CMA Certification Benefit
You?
• Opportunity to assess and demonstrate

capabilities and expand knowledge base
• Distinguishes you from your peers and
increases credibility and productivity
• Recognition of achievement
• Expanded career options and greater
earning potential
–

CMAs earn 27% more than professionals without
certification (IMA’s 18th Annual Salary Survey, June 2007)


Certification Benefits to the Company
• Identify motivated professionals for
hiring, recognition, and advancement
• Higher level of service and increased
credibility among clients
• Achieve and maintain a high level of
knowledge, competence, and
business
understanding


Objective Validation of CMA Program
• CMA continues to be relevant to the on-thejob responsibilities of management
accountants (IMA Job Analysis Study, 2006)
• Compared to U.S. CPA, CFA, CMA in Canada,
CMA in U.K, and ACCA in U.K.
• Multi-national corporations are incorporating
the CMA certification as part of their

professional development programs for
employees
• CMA program is “valid, reliable, rigorous,
and fair”


2006 Job Analysis Study
• Periodic validation of content relevance as
practice changes over time
• Survey determines current job tasks and
skills required to perform these tasks
• Compare skills required to exam content
• CMA continues to be relevant to practice
• Minor changes to content likely
implemented in 2008


Profile of a CMA Candidate
• 70% have a Bachelors Degree
• 29% have a Masters Degree
• 1% have a PhD
• 6% are CPA’s
• Average age: 34


Statistics
• More than 29,000 CMAs issued to date
• Pass rates for the four parts of the exam
range between 50% to 60%
• 50% of exams taken outside U.S.

CMAs – Who are we?
• CFO, Foundations Behavioral Health
• CFO/Treasurer, First Savings Bank
• Director of Finance & Accounting,
Marriott International
• Director of Technical Accounting &
Reporting, Microsoft
• Finance Manager, Habitat for Humanity
• Financial Controller, Johnson & Johnson
• Vice President of Finance, Southeast
Corporate Federal Credit Union


Making Certification Work
• Commitment by senior management to
continuing professional development
• Support for review programs
• Company support for CMA exam process
• Tangible recognition for successful
completion


CMA Exam Overview
These exams may be taken in any order
but must
all be passed before registering for Part 4

• Part 1: Business Analysis

- 3 hours, 110 multiple choice questions
• Part 2: Management Accounting and
Reporting
- 4 hours, 140 multiple choice questions

• Part 3: Strategic Management

- 3 hours, 110 multiple choice questions


Certification Exam Contents
Part 1: Business Analysis


Certification Exam Contents
Part 2: Management Accounting &
Reporting


Certification Exam Contents
Part 3: Strategic Management


Certification Exam Contents
Part 4 – Business Applications
• Must complete Parts 1, 2, and 3 first
• 3 hours, 4-7 essays/problems
• All content from Parts 1, 2, and 3
included
• Plus: Ethics, Organization

Management, Organization
Communication, and Behavioral Issues
• Computer-based but no immediate
scoring


Becoming a CMA
• Member of IMA
• Apply for admission into certification
program
• Register for certification exam
• Fulfill educational credentials
• Pass the certification exam
• Satisfy the experience requirement
• Comply with the IMA Statement of Ethical
Professional Practice
• View IMA’s Webinar, “Navigating through
the CMA Program” at
www.imanet.org/certification_started.asp


Fees
•
•
•
•

IMA Dues $195 per year
$140 registration fee per exam part in U.S.
$175 per part overseas

$125 entrance fee
- College students exempt from this fee
• $70 per part for college students
• Dues $39 per year for college students


Education Requirement
• Bachelors degree
• Certification equivalent to CMA
or
• Score in top 50th percentile on GMAT or GRE