Standards on Cost Accounting issued in Canada-List

Management Accountant-an accountant of the future for Governance-Both Corporate world and the Government.

Role of Management Accountant in Corporate Governance.



Management accountant collects, classifies, generates information that helps management (The Board of Directors)to take vital and strategic decision which was not possible with the help of traditional Financial accounting.
Management Accountants are equipped with the tools that are required to steer an organization out of Bottlenecks.

Corporate Governance is the whole lot of activities carried out by persons who are vested with the power to define and steer the Path of the organization. It is the Stakeholders who have reposed confidence in the Governors(Directors) to take strategic decisions and also oversee the path of the Target they had designed(Mapped).

Factors that are common for Corporate Collapse:
1.Failure to ascertain information, Adequate enough ,Required to take a decision.
2.Failure of introspection and also to questioning the decisions taken.
3.Clear and Consistent Yardstick for measurement.
4.Weak Accounting and Management Accounting systems.-Risk-Return analysis Management Accountants role.
5.Inaccurate Cash-flow projections etc.
Though the list cannot be exhaustive it is clear that the collapse occurs mostly due to internal weakness rather than external causes.
Australian Stock exchange for instance has 10 point prescription for Corporate governance:
1.Recognise and Publish Board charter –Respective roles and responsibilities of the Board and the management.
2.Effective composition of the Board-Knowledge/Understanding/Independence.
3.Promote Ethics and responsibility in decision making.
4.Establish structure to independently certify financial reporting-CFO.Management Accountant Ideally.
5.Timely and balanced reporting of all material matters concerning the company.
6.Respect the rights of the shareholders and facilitate the exercise of the same.
7.Establish Risk oversight and management and internal control.-ERM a tool of Management Accounting.
8.Formally review and encourage board and management effectiveness.
9.Remuneration and responsibility matching.
10.Recognise legal and other obligation to stakeholders.

The Role of Strategic Audit in corporate Governance and management Accountants Role:
Audit of management strategies and initiatives is an important tool in the hand of Management Accountant.Management Accountant with his constant search for improvement in product,processes and income generation is in an ideal position to Review strategies and advice management .Management Accountant as a member of Audit committee can render valuable advice in decision making when alternatives come to the with proper risk-return analysis.Management Accountant has to establish proper systems and control of monitoring Costs and also study external environment that will add value to the business and sustain the business in the long-run.

Maintaining of Cost Records and auditing of the same on annual basis will help the nation in more-ways than one.Strategic Cost Accounting shall involve that part of Management Accounting that enables stakeholder realize optimum in a given situation by analyzing revenues with alternatives available for the product and suggesting a mix of receipts to sales and marketing department.A mix of good internal control(followed by Internal Audit),Financial Audit,Cost Audit, and management audit is a must with each focusing on core aspect of responsiveness to stakeholders.
To sum up management audit in Indian context will try to Unknot the conflicting interest of strategic decision suggest ways and means of Maximising revenue help constantly in providing information required to make strategic decisions.While doing so it will keep in mind the social responsibility,National commitments and environmental aspects in place.
(Compiled text)