With a lot of stakes resting on an accountant’s shoulder, as a Certified Management Accountant, it is imperative to understand legalities and regulations related to various financial and accounting practices. The paper of the CMA Foundation Fundamentals of Laws and Ethics aims to test the student’s ability to acquire adequate knowledge of the basic concepts of laws and understand the difference between right and wrong practices to become an ethical professional. The paper covers in detail allied regulatory compliances and requirements.
If you are beginning to prepare for CMA Foundation laws & ethics, here you will find tips, tricks, and resources to help you crack this paper.
Here’s what you will read next:
- CMA Foundation Fundamentals of Laws & Ethics Syllabus
- How to study CMA Foundation Fundamentals of Laws and Ethics
- How to score well in CMA Foundation Fundamentals of Laws and Ethics
- Online resources to prepare for CMA Foundation Fundamentals of Laws and Ethics
CMA Foundation Fundamentals of Laws & Ethics Syllabus
Here are the contents of the syllabus for CMA Foundation laws and ethics along with the weightage of each topic:
Section A: Fundamentals of Commercial Laws
Indian Contract Act, 1872
Sale of Goods Act, 1930
Negotiable Instruments Act, 1881
Section B: Fundamentals of Ethics
Fundamentals of Ethics
Suggested marks distribution for examination:
Total of 100 marks (3 hours)
Short questions & Practical Problems
Objective questions (60 marks) 1 marks each question
How to study CMA Foundation Fundamentals of Laws and Ethics: 10 Handy Tips
- Maximum weightage for this exam is assigned to two topics- ‘Indian Contract Act’ and ‘Fundamental of ethics’, with a combined weightage of a whopping 70%. Hence, these two have to be your major focus areas with maximum time from your study preparation allocated for these topics
- Understand all legal terminologies thoroughly and be prepared for trick questions. ICMAI often twists these terminologies while framing the questions.
- Laws and ethics are not just about mugging up legal jargon but more about learning the reason behind every regulation or ‘best practice’. Understanding the reasoning behind every law will help you become a better accountant.
- Try reading loudly while preparing. It helps with subjects like law.
- Go through the study material provided by ICMAI and pick up keywords expected for each answer. These keywords can help you gain a clear edge while writing the exam.
- Create a dedicated notebook for jotting down relevant key points of laws and sections for quick revision.
- Ethics is comparatively easier than law. Your common sense will come to rescue here. If you prepare well, scoring high should not be a problem for this section.
- Study the questions given in the study material thoroughly. Questions asked in the exam follow the same pattern.
- Go through online lectures which can help boost your performance without stressing you out.
- Keep attempting mock papers once you have finished a considerable amount of syllabus.
How to score well in CMA Foundation Fundamentals of Laws and Ethics
- Once you get the question paper, go through all the questions. Allot time to questions based on the marks they carry. Keep some time for revision.
- Attempt multiple choice questions first.
- Do not misquote any laws or sections. Mention the section only if you are confident about it.
- Underline important line and section numbers.
- Write concise, well-supported answers using legal keywords.
- Try to attempt all questions as there is no negative marking.
- Try to give examples of relevant cases wherever possible.
- Avoid using short forms and abbreviations.
- Don’t write paragraph chunks without underlining or without dividing it into sub-points. Add headings/subheadings wherever relevant to earn some brownie points.
Online resources to prepare for CMA Foundation Fundamentals of Laws and Ethics
- Syllabus and Study Notes:http://icmai.in/upload/Students/Syllabus2016/Foundation/Paper-3.pdf
- Mock Test Papers- Questions
- Mock Test Papers- Answers
- Postal Test Papers:
- Guidelines for Students:
- Question Paper December 2018:
- Important Due Date:
You can watch a few lectures on CMA Foundation and see if you would want to consider subscribing to our video series for a better shot at clearing the CMA examination.