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Certified Management Accountant (CMA)/Certified in Financial Management (CFM)

THE EXAMINATION tered accountant designation would receive Professional
The CIA examination is offered twice a year, once in May Recognition Credit by the Board of Regents.
and once in November. The exam has four parts: The exam is nondisclosed. Individuals taking the
exam sign a statement indicating that they will not dis-
Part I: Internal audit process
close questions and answers subsequent to taking the
Auditing exam. The IIA considers disclosure of the exam questions
Professionalism by a person who took the examination to be a violation of
the code of ethics.
Fraud
The passing score for the exam is 75 percent. In 1996
Part II: Internal audit skills there were 4,646 candidates. The average pass rate by
Problem solving and evaluating audit evidence exam part is 45 percent. (Gaylord and Reid, 1997).
Data gathering, documentation, and reporting
EXPERIENCE REQUIREMENT
Sampling and mathematics
In order to become a CIA, there is an experience require-
Part III: Management control and technology
ment of twenty-four months of internal auditing or its
Management control equivalent. Representative equivalent experience can
Operations management include quality assurance, internal control assessment, or
external auditing. A master’s degree can be substituted for
Information technology
one year of experience. The Board of Regents determines
Part IV: Audit environment the acceptability of equivalent work experience.
Financial accounting More information is available from the Institute of
Internal Auditors at 247 Maitland Ave., Altamonte
Finance
Springs, Florida 32701-4201, (407)937-1100, or
Managerial accounting http://www.theiia.org.
Regulatory environment
SEE ALSO Auditing
Each part of the exam consists of eighty multiple-
choice questions. To complete the examination success- BIBLIOGRAPHY
fully, a candidate must be familiar with the Institute of Gaylord, Gloria L., and Ried, Glenda E. (2006). Careers in
Internal Auditors’ Standards for the Professional Practice of Accounting (4th ed.). New York: McGraw Hill.
Internal Auditing and the institute’s Code of Ethics. It is not Pickett, K.H. Spencer (2004). The Internal Auditor at Work: a
necessary to be a member of the IIA in order to take the Practical Guide to Everyday Challenges. Hoboken, N.J.: John
examination. However, a one-year free membership is Wiley & Sons.
offered to any nonmember who passes the CIA examina-
tion.
Charles H. Calhoun
The Board of Regents, which administers the CIA
exam, recognizes the accomplishments of other profes-
sional certifications. Therefore, individuals who already
have a certification are eligible to receive credit for part of CERTIFIED
the exam. Part IV of the exam was designed to offer a Pro- MANAGEMENT
fessional Recognition Credit. Candidates who wish to
apply for the Professional Recognition Credit need to sub- ACCOUNTANT
mit a registration form with a copy of the certificate or let- (CMA)/CERTIFIED IN
ter from the sponsoring organization noting that the FINANCIAL
person has completed the exam requirements. The spon-
soring organization may be contacted to verify the infor- MANAGEMENT (CFM)
mation supplied by the candidate. The certified management accountant (CMA) and the
For example, in the United States an individual who certified in financial management (CFM) programs are
is a certified public accountant, certified management designed to recognize the unique qualifications and
accountant, certified information systems auditor, or cer- expertise of those professionals engaged in management
tified bank auditor is eligible to receive Professional accounting and financial management. These certifica-
Recognition Credit for Part IV of the CIA examination. tions provide distinction in today’s economic climate and
In Australia, Canada, and the United Kingdom, the char- afford the opportunity to certify expertise in the business

104 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION