IMA's professional certification programs: a review of IMA's Certified Management Accountant and Certified Financial Manager programs and an examination of the changes to the CMA exam show the relevance of these certifications to accounting education and professionals

Management Accounting Quarterly, Wntr, 2005 by Neal R. Van Zante

The Institute of Management Accountants (IMA) offered the first Certified Management Accountant (CMA) exam to 410 candidates at 22 U.S. locations on December 6-8, 1972. (1) The exam was a pencil-and-paper test consisting of five separate 3.5-hour parts. In December 1996, IMA added its second professional designation, Certified Financial Manager (CFM). (2)

Recent in-depth studies conducted by IMA resulted in major changes to the CMA exam. In addition to changes in the exam's structure and content, the new, revised CMA exam is designed to test candidates about material that was determined to be most relevant to the career needs of individuals who aspire to become accounting professionals.

Right now, two different CMA examinations are offered. Those who entered the CMA program prior to July 1, 2004, have until December 31, 2007, to complete the "current" CMA exam version. The current version has four three-hour-long parts and consists of objective, multiple-choice questions. The exam is computerized and offered at more than 400 testing centers throughout the world.

The new, revised CMA examination was first offered on July 1, 2004. The content of the CMA exam was reorganized and updated minimally. Over 90% of the "new" CMA exam content remains unchanged from the current version, and the rest has been updated to reflect relevant business practices. While three of the four parts of the new exam version are still presented in the multiple-choice format, the fourth part now consists of business-oriented essays and problems. CMA candidates are required to pass the first three parts before sitting for this new capstone part.

This article reviews the progress of IMA's professional certification programs since the CMA was first offered and focuses on the changes made to the exam's structure and content since its inception as well as the relevance of the CMA exam content to professional accounting careers, as highlighted by several prominent studies. While the bulk of the discussion addresses the CMA exam, the CFM program is also covered. The CFM designation is still relatively new, and only Part 2 of the CFM exam differs from the CMA exam Part 2. Successful completion of the other three parts is required for both designations. No changes to the CFM exam have been announced, and the test still consists of multiple-choice questions only. It is very likely that the exam content and format will be revised in early 2006 following the expected completion of a practice analysis currently under way.

REVIEW OF THE CMA AND CFM PROGRAMS

The CMA program began in 1968 when NAA's Long-Range Planning Committee recommended that a comprehensive examination be developed to test the knowledge required for management accountants. In 1972, the CMA program was officially established, and the Institute of Management Accounting was formed to administer the new program.

As noted, the first CMA examination was offered on December 6-8, 1972, and 63 candidates passed. In June of the following year, 54 individuals received their certificates. Initially the CMA exam was offered once a year, but this changed in 1977 when NAA began offering the test in June and December of each year.

In 1983, NAA adopted a code of professional ethics applicable to all CMAs. Also, the Institute of Management Accounting, which administered the CMA exam, became the Institute of Certified Management Accountants (ICMA). The next change to the CMA program was made in 1989, when membership in NAA became a requirement to participate in the CMA program.

The first major revision in the CMA exam content and structure occurred in June 1991. (This coincided with NAA's name change to IMA.) Instead of having five parts spread across 2.5 days, the test became a two-day, four-part exam. Along with this change, Certified Public Accountants (CPAs) were exempted from taking Part 2 (Financial Accounting and Reporting). The first CFM exam was offered in 1996, and by 1997 both the CFM and CMA examinations were fully computerized and available year-round.

Currently, more than 26,400 CMA certificates and 3,600 CFM certificates have been issued, and there are over 20,000 active CMA candidates and 4,600 active CFM candidates. Both the CMA and CFM programs have earned great acceptance worldwide. Employers who actively support and encourage employee participation in these programs recognize that the CMA and CFM exams test the knowledge and skills that are required for successful professional careers.

EXAM REVISIONS

While relatively minor changes were made in examination content to recognize developments in accounting and business, the basic character of the CMA exam has remained as established in 1972. The exam continues to cover the technical accounting and body of knowledge needed by management accountants to contribute to the success of their organizations, and ethics has been incorporated as an important exam element.

The majority of content requires candidates to demonstrate their analytical, synthesis, and evaluation skills. To this end, the coverage of topics in the exam content specifications involves three skill levels: (A) skills of knowledge and comprehension, (B) skills of application and analysis as well as knowledge and comprehension, and (C) skills of synthesis and evaluation in addition to the first four skills identified in level B. Topics that test level A skills represent slightly more than 10% of exam time, and over half the exam time requires candidates to demonstrate level C skills.