Core Areas of a
Interlinked with Computers
30 Shikha Gupta NRO 0302325
38 Ashish Bisht NRO 0315206
48 Juhi Kapoor NRO 0300927
47 Ajay Gupta NRO 0318658
45 Sahil Kapahi NRO 0310879
39 Vikas Kumar NRO 0315859
49 Ankit Kaushal NRO 0322082
50 Ishneet Singh NRO 0336036
We would like to express our gratitude
towards Mr. Ashwini Bansal and
Vikas Sir for their continuous support
and guidance that ensured the optimal
efforts in not only completion of the
project but also in broadening our
horizons about computers.
Core Areas of CA – An Introduction
How does Computer assists CA’s?
Usage of Internet in CA Profession
Core Areas of a Chartered Accountant
Taxation(depositing a part of our income to
government authorities) is a critical part of your role
as Chartered Accountant and relevant to all
aspects of life – both business and personal. All
business decisions have tax implications.
This includes the writing up of accounts and the
preparation of financial statements. It
encompasses a wide area ranging from simple
Book keeping to complex financial analysis.
Auditing refers to independent examination of
data, statement, operations and records
(financial information) of any entity whether
profit making or not, irrespective of its size and
legal structure with a view to express an
opinion thereon through the audit report.
Financial services are the economic services
provided by the finance industry, which
encompasses a broad range of organizations
that manage money. These include
banking, insurance, housing finance, stock
broking and investment services.
Usage of Computers in Accountancy
Because of the minute by minute change in finances, accurate record
keeping is critical. Computerizing a business general ledger, payroll, and
other accounting tasks increases office efficiency. With a computer, you
can request and receive an in house balance sheet, an income
statement, or other accounting reports at a moment notice. While keeping
your checkbook on a computer may not be practical, computers are great
for handling complex home financial records. You can get statements on
net worth and year tax deductible expenses within minutes.
2. General ledger
3. Inventory Control
4. Point of sale/Time and billing
5. Account Receivable/Payable
O Expedite the accounting function.
O Eases recording in Journal, posting in ledger with the help of
Special Purpose Modules like Account or Account Receivable.
O Automatically prepares Balance Sheet/Profit and Loss A/C and
O Unskilled workers can easily perform day to day data entry
Advantages of using computer in Accounting
Disadvantages of using computer in Accounting
• Loss of data due to hardware/software damage.
• Inaccurate data due to clerical errors/mistakes in
• Fraud and embezzlement can be done by loitering data.
• Total security is unachievable and some failure must be
Tally.ERP : Accounting Package
Preparation of Balance Sheet, Profit &
Loss Statement, Cash Flow
Statement, Bank Reconciliation
Statement and calculation of
ratios, variance etc.
Statutory & Taxation: Excise, Value
Added Tax, Service Tax, Tax
deducted/collected at source, Fringe
benefits tax, Payroll etc.
Inventory features : General,
Storage & Classification,
Order Processing, Invoicing,
Purchase/ Sales Management
.Accounting features: General, Outstanding
Management, Cost/Profit Centres
Management, Invoicing and Budgets/
Scenario Management etc.
Example: Generating Balance Sheet through Tally
Prevents duplication of work as by data entry into vouchers automatically Balance
Sheet, Profit and Loss Account etc. are generated.
Tally.ERP 9 provides remote capabilities to
its users to access data from anywhere.
Using Tally.NET features, the user can
create remote users (ids), authorize &
authenticate them to access company
remotely. Currently, the remote connectivity
allows the user to view/display the required
information on his system instantly.
The process for remote access is as
Enter the remote user ID at the remote login
location to access company data from
Requirements for Remote Connectivity:
1. At the Customer’s Location:
2. At the Remote Location:
Tally.ERP : Accounting Package
1. Customer can allow / disallow access to the Company Data for
remote users at any point of time.
2. Data resides on the Customer’s Computer only.
3. Encrypted Data is transferred between two computers on
4. The customer can assign Security controls to remote users
depending upon what access to be given.
Data Security in Tally
Disadvantages of Tally
1. Requires technical competence.
2. Graphical User Interface – unconformable to
Usage of Computers in Auditing
.The auditor can check voluminous data in lesser
time. Exhaustive examination is possible by using
computerized advanced techniques.
Generally audit software have embedded sampling
routines. Thus, it is easy for the auditor to choose
appropriate sample as per stated criteria.
Various internal controls embedded within the
system can be checked whereas manual audit
procedures are not effective for this.
Performing analytical review procedures through
audit software can easily trace unusual
fluctuations and hard copy can be generated for
auditor’s ready reference.
• Data analysis software
• Network security evaluation software/
• OS and DBMS security evaluation
• Software and code testing tools
Audit Software Software used by auditor to read data on client’s files, to provide information about the
audit and/or to re-perform procedures carried out by the client’s programs.
Core Image Comparison Software used by the auditor to compare the executable version of a program with a
secure master copy.
Database Analysers Software used by auditor to examine the rights associated with terminals and the ability
of users to access information on a database.
Embedded Code Software used by the auditor to examine transactions passing through system by placing
his own program in the suite of programs used for processing.
Mapping Software used by auditor to list unused program instructions.
On-line testing Techniques whereby the auditor arranges or manipulates data either real or fictitious, in
order to see that a specific program or screen edit test is doing its work.
Log Analysers Software used by the auditor to read and analyze records of machine activity.
An examination by auditor of source code of a particular program with a view
to following logic of the program so as to satisfy himself that it will perform
according to his understanding.
Software used by auditor to examine dates of changes made to executable
library and the use of utilities to amend programs.
Tracing Software used by the auditor to identify which instructions were used in
program and in what order.
Test data-Live/Dead :
Fictitious data applied against the client’s programs either whilst they are
running or in an entirely separate operation. The results of processing the
fictitious data are compared with the expected results based on auditors
understanding of programs involved.
Snapshots Software used by the auditor to take a ‘picture’ of a file of data or a
transaction passing through the system at a particular point in time.
Examination of Audit Trail
• Identity of the would be user of system
• Authentication information supplied.
• Resources requested.
• Action privileges
• Terminal identifier.
• Start and finish time.
• Number of sign-on attempts.
The following data
associated with an event
can be kept:
The data allows
management or auditors
to re-create the time
series of events that
occurs when a user
attempts to gain access
to and employ system
Periodically the audit trail
should be analyzed to
detect any control
weaknesses of the
analysis can be
Services purpose of
operations audit trail.
E.g. Recording start and
finish times and the
facilitates analysis of
resources usage within
forms basis for detecting
E.g. Intrusion detection
system monitors amount
of processor time
consumed by user to
detect unusual deviations
from amount of processor
time requested in the
Audit by simulation of errors, fraud
Fraud could be in the form of fictitious vendors, altered or duplicate invoices, purchases
kickbacks, fixed bids, inflated prices, duplicate payment, excess purchase quantities, payroll
Transactional Analysis Data Analysis Techniques
Organizations have traditionally sought to prevent and detect fraud by implementing
appropriate internal controls. Internal audit tests validate these controls during regular audit
processes. It does not however, usually have direct responsibility for ensuring that fraud does
not occur. Even when frauds do come to light, many detection methods occur after the fraud
has taken place. The problem is that the longer the period the fraud remains undetected, the
larger the financial loss is likely to be and smaller the chance of recovering the losses from
Includes continuous monitoring basis and
comprehensive series of tests designed to detect
indicators of a wide range of fraud.
• Indicators of potential fraud-taking into account both
the most common fraud schemes which relate
specifically to unique risks of particular organization.
• Analyze transactions within a given area and test
them against parameters that highlight indicators of
• Calculation of statistical
parameters such as
averages, standard deviations.
• Finding patterns and
associations among groups of
• Digital analysis using Benford’s
• Duplicate and gap testing.
Analyzing the data with IDEA
Mechanical Accuracy : Totaling the file
performed by field statistics function to prove
accuracy of calculations. By adding a
calculated field using Field Manipulation option
or by an exception test of miscalculations.
Analytical Review: Preparation of figures for
an analytical review using file stratification
function, Chart Data to obtain figures for
comparison with last year.
Completeness: The Gap detection options
(Numeric, Character, Date) can be used to test
for completeness. E.g.: Bin card no's for
inventory, dispatch note no's for sales.
Validity (Exception Testing, Compares and
Duplicates To detect unusual and strange
items. These may be large items or where
relationship between two pieces of data
Cut-off : Year end ledger, inventory files or
transaction files can be tested for cut-off by
testing for items with dates or sequence no’s
above/below year end cutoff. Project Summary
Usage of Computers in Taxation
Taxpayers and professionals are use computers
and internet for filing tax returns . CA’s use
computer software for filing tax return of their
Efficient and effective document management
system or backup or restoration of data.
Preparation of computation of income tax liability,
using iterative techniques for calculating hypo tax ,
tax perquisite etc. and macro’s in ITR forms.
Using TRACES Portal for downloading Form 16,
Form 26 AS, TDS Return (Quarterly), Challans,
Rectification Statement, etc.
A complete software solution for preparation
of filing of new Income Tax-Com-Fringe-
Benefit Tax Returns for companies.
Convenient online tax payment/physical
challan generation. Pan search facility /Facility
for Import Balance sheet & P& L A/C from
Computation of Income Tax (HRA , NRC ,
Rebate u/s89, interest u/s234A , 234B ,
Generation of Tax Audit Report in form 3CD.
Facilitates preparation & filing of new ITRs
1,2,3,4,5,6 and revised returns electronically
as per e-filing scheme of Income Tax
Import of ITR XML prepared from other
software. Report of Return Filed , Return
Pending , List/Detailed of Assesse etc.
Salient features of Web-e-Tax
Types of e-filing
Use digital signature in which
case no paper return is
required to be submitted.
File without digital signature in
which case ITR-V form is to
fed with the department.
File through an e-return
intermediary who wou7ld do
e-filing and also assist the
assesse in filing the ITR-V
The process of electronically filing your income tax return through the internet is known as e-
Select appropriate type of
I Download Return
Preparation Software for
selected Return Form
Fill your return form offline
and generate a XML file.
Register and create
Select the option submit
Browse to select XML file
and click ”Upload” button.
On successful upload
will be displayed. Generate
print out of ITR V form.
Incase the return is not
digitally signed, then the
duly filled IT-V needs to be
submitted to ITR office
within 15 days.
Financial services are the economic services provided by the
finance industry, which encompasses a broad range of
organizations that manage money. These include banking,
insurance, housing finance, stock broking and investment
Financial Services is a essential part of financial system.
Usage of Computers in Financial Services
Takes care of the
growth and ensures
smooth running of
Clients are assisted to
Companies act, FEMA,
Income Tax, Contract
Legal issues and
matters are analyzed
to keep clients away
from legal hassles
valuation of shares of
public and private
companies at the time
of amalgamation and
Advice their clients
about cash credit
limits, term loans &
Varied services provided by CA’s
Companies and firms create their own website subject to overall
guidelines laid down by the council to provide online services
to their clients and ensure that their websites run on a pull
method not push method
1) Financial markets- NSE BSE MCX
NCDEX UCX for commodity
trading and portfolio management.
Practical Insight : Example
1) Excel- data analysis (Slicers,
pivot chart, financial formulas,
loan sheet etc.)
Financial Modelling/Data Analysis
Internet and CA’s
Using TRACES Portal for downloading
Form 16, Form 26 AS, Rectification
Assisting and Resolving extensive queries
on obtaining PAN Application, Status-
checking , Affidavits, No-Objection-
Electronic filing of tax returns , generating
ITR Verification Acknowledgement , digital
signature (clients) and online deposition of
challans etc. through net banking etc.
Using Microsoft Access for effective
Database Development , interlinking it with
mail merge and using it for sending bulk
The impact of Information Technology
(IT) on several aspects of accounting
profession and practice has been
pronounced over the last two
decades. The revolutionary
developments of various IT tools and
techniques have a far reaching impact
on the organizations. The survival and
growth of a dynamic profession such
as chartered accountancy depends to
a large extent, on adoption of new
techniques/methods and equipping
CA’s to face emerging challenges in
the global business environment.
Functionalities of core areas-
Accountancy, Taxation, Audit and
Advisory are expedited through
optimal usage of computer software.