[J.P.]

I have the experience to get the designation right now, just need to pay the $150. Does this seem like a worthwhile venture, especially with an exam being needed in the near future, or is it another money grab by the AICPA?

Anyone have this designation or thought about getting it?

BEC - 11/25/08-61, 8/31/09-76*, 2/24/12-76
AUD - 2/21/09-53, 8/31/10-60, 11/30/11-83
REG - 11/30/09-68, 5/31/12-79
FAR - 8/29/11-81

IL Ethics - 93

*Lost to 18-month Rule

[HFinn]

Until the exam requirement actually seems to be within a year or so…I would think it's a waste of $150. I'd get a few tickets to Circus Ole (sp?) instead.

But if you got mo money to spend (which usually means mo problems :P), then I'm sure it's a good investment for the very long haul.

[IndianaCPAGuy]

I've got the CGMA designation after paying $100 to the AICPA. I thought it was going to be free, in fact they were advertising it that way. I believe I was charged because I had not yet become a full AICPA member, and had not yet paid the full fee. I don't know what it's going to do for me, but it doesn't look bad on my resume!

Licensed CPA in Indiana

[Herbieherb]

It cost me 100 too. They sent me the nice wall certificate last week. I think its worth it. I believe it will be valuable in future…

NEW YORK- DONE

[MeaDebitum]

Cirque Du Soleil*

[jeff]

I am now Jeff, CPA, CGMA baby!!!! 🙂

[Mr. Mini]

Those of you who have gotten the CGMA, I am just wondering what kind of international managerial accounting experience you have that makes you feel qualified to call yourself a Chartered Global Management Accountant?

[jenuno01]

LOL @Mini, I was just wondering the exact same thing.

Class of 2012

[jeff]

Don't hate me because I'm a Chartered Global Management Accountant, Mini.

[Mr. Mini]

lol Jeff.

I just want to make sure people understand the ethical dilemma and the fact that you can lose your CPA license for holding yourself out to have expertise in areas in which you have no expertise. It's a slippery slope for sure.

[jeff]

I actually don't think that applies in this situation. It's a designation conferred by an organization – the AICPA no less.

In what situations are you referring to where a Licensed CPA holds themselves out as an expert and they stand to lose their license?

[Mr. Mini]

https://www.aicpa.org/Research/Standards/CodeofConduct/Pages/et_500.aspx#et_501.10

“.11 501-10—False, Misleading, or Deceptive Acts in Promoting or Marketing Professional Services.

A member in business who promotes or markets his or her abilities to provide professional services or makes claims about his or her experience or qualifications in a manner that is false, misleading, or deceptive will be considered to have committed an act discreditable to the profession, in violation of Rule 501 [sec. 501 par. .01]. A false, misleading, or deceptive promotion includes any claim or representation that would be likely to cause a reasonable person to be misled or deceived. This includes any representation about CPA licensure or any other professional certification or accreditation that is not in compliance with the requirements of the relevant licensing authority or designating body.”

I think the key sentence is “A false, misleading, or deceptive promotion includes any claim or representation that would be likely to cause a reasonable person to be misled or deceived.”

Notwithstanding the last sentence, I believe this still applies in this situation. Even though you CGMAs MAY be in compliance with the designating body (AICPA), I believe it still could be considered deceptive to hold yourself to be an expert in global managerial accounting (if you do not have that kind of experience). I also think you could be opening up yourself to client lawsuits and potentially employer lawsuits. I also believe each State Board has a similar provision. When I have a little more time, I see if I can find anything else.

[jeff]

Well – if you take a management accounting or consulting gig – you have to adhere to the professional standards for the engagement…or you can be sued. That's nothing new.

Does passing the CPA Exam and having CPA after your name make you an expert? Nope.

Just holding yourself out as a CPA won't get you sued … gross negligence on an engagement can get you sued.

Same thing with this.

[Just PlainPA]

Jeff,

True, holding yourself out as a CPA won't get you sued, but holding yourself out as a CPA and taking on an engagement where you don't have the necessary skills to effectively execute it not only will get you sued, but your license can be put in jeopardy for misrepresenting your expertise as a CPA; that's an ethical violation.

I think that is the point Mr. Mini is trying to make:

Holding out as a CGMA when you do not have the technical skills necessary to effectively perform the prescribed duties can be an potential ethics violation. So if someone gets the CGMA designation and an employer or client relies on that designation as a basis for hiring them for a job position or engagement, and if the CGMA has no experience in management accounting and they botch up an engagement or put their employer in danger of being sued as a result of their substandard work, not only can the CGMA be sued, but they can also get their CPA license suspended/revoked for misrepresenting their expertise and endangering the public as a result. That is why the AICPA Code of Conduct 501 is in place, to prevent things like this from happening.

A more common example: If your specialty as a CPA is in tax preparation and advisory, don't hold yourself out to be an auditor. Or if you want to venture out into auditing, get some CPE and some training/guidance under a CPA who specializes in auditing would be highly recommended (although the work experience requirement prior to licensing is supposed to mitigate such issues as this from occurring). If you hold yourself out as a auditor and you “wreck” the engagement, the client can not only sue you, but also file a complaint with the accountancy board which could bring several violations (negligence and false/misleading advertising are a few that comes to mind).

In short, Mr. Mini is very much on point with his concern of possible ethical ramifications of these new “CGMAs”. Be careful how you hold out using those letters.

AUD - 79
BEC - ?? 10/1/15 (Tentative)
REG - ?? 11/?/15
FAR - ?? Winter 2016

[Mr. Mini]

Well said.

[jeff]

I'm pretty sure I said the same thing in my earlier posts, but I digress.

[Author]

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