Summary by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
Professional
Exams Main Page | IMA Main Page
The purpose of this paper is to briefly describe the new CMA Exam, and to explain the ICMA board's underlying logic for the changes. According to Brausch and Whitney, the CMA Exam will change to a two part format in May 2010 and emphasize the critical skills related to financial planning, analysis, control, and decision support. The board took a "Greenfield" approach, after extensive input from controller interviews and focus groups, and recommendations from a committee charged with reviewing the exam. The new CMA certification program includes two four-hour exams each consisting of 100 multiple choice questions and two 30-minute essay questions. An outline of the two exams appears below:
Part 1 covers Financial Planning, Performance & Control:
Planning, budgeting, and forecasting
Performance management
Cost management
Internal controls
Professional ethics
Part 2 covers Financial Decision making:
Financial statement analysis
Corporate finance
Decision analysis and risk management
Investment decisions
Professional ethics
All topics in both sections will be tested up to level "C", i.e., a candidate's ability to synthesize information, evaluate a situation, and make recommendations. Levels "A" (knowledge and comprehension), and "B" (application and analysis) are also tested. The increased emphasis on "C" level knowledge is a change from the previous four part exam. An underlying assumption of the new program is that candidates have a certain level of accounting and business knowledge related to economics and statistics, and a strong foundation in financial accounting, budgeting, forecasting, performance measurement, and financial statement analysis.
The following topics have been either added, or given increased emphasis in the new program:
Pro forma income,
Financial statement projections,
Cash flow projections,
Off-balance sheet financing,
Fair value accounting,
International financial reporting standards (IFRS),
Mergers and acquisitions,
COSO internal control framework,
Enterprise risk management (ERM), and
Professional ethics.
Topics such as economics, information technology, marketing, and organizational behavior are no longer included on the exams. The new CMA maintains the rigor of the previous program, but focuses more on the critical marketable skills related to financial planning, analysis, control, and decision support.
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Related summaries:
Krippel, G. L. and S. Mitchell. 2011. What's your CMA worth? We show you how to estimate the lifetime value of the certification. Strategic Finance (November): 41-47. (Note).
Krippel, G. L. and S. Mitchell. 2017. The CMA advantage: An update. How much more could you earn throughout your career if you became a CMA right now? Strategic Finance (September): 38-45. (Summary).
Martin, J. R. Not dated. IMA salary calculators 2010-2015. Management And Accounting Web. (Summary).
Schiffel, L., K. A. Smith and D. L. Schroeder. 2011. IMA 2010 salary survey: How's that recovery workin' for you? Strategic Finance (June): 26-46. (Summary).
VanZante, N. R. 2010. IMA's professional certification program has changed. Management Accounting Quarterly (Summer): 48-51. (Summary).