A.

SUMMARY:

This Audit Results Report contains the findings primarily from the annual financial audits of universities and
state training providers (STPs) that had a 31 December 2015 reporting date.

In 2015, the public tertiary education sector comprised 4 universities and 4 metropolitan and 7 regional STPs.
Total revenue of this sector in 2015 was $3.1 billion (universities $2.5 billion and STPs $585 million),
including Commonwealth and State funding. The universities have combined assets of $5.9 billion while the
STPs have assets valued at $1.3 billion. Further details of the sector’s revenue and expenditure are included
in Appendix 4.

To ensure that the sector produces timely and accurate financial reports, it is important that management keep
proper accounts and records. Key to this is an effective internal control system to alert management to
irregularities in electronic environments and manual procedures, and to help them prevent, detect and
investigate errors and fraud.

The Auditor General Act 2006 (AG Act) requires the Auditor General to annually audit the financial
statements, controls and key performance indicators (KPIs) of universities and STPs. A clear audit opinion
indicates generally satisfactory controls and that the financial statements are complete, accurate, comply with
relevant legislation and applicable accounting standards and fairly represent performance during the year and
the financial position at year end.

This report, along with the Audit Results Report – Annual 2014-15 Financial Audits (Report 24, November
2015), finalises the 2015 financial audit cycle.
B. REASONS FOR SELECTION:

Mr. Keyur the founder of Keyur Bataviya & Co encourages fresh graduates and qualified assistants to explore their
full potential with guidance and support from their seniors. The firm supports and encourages their articles and
interns to systematically learn and apply in accounting, taxation, audit, etc areas. The high places of trust and
confidence enjoyed by the firm and also those who worked in it , provides enough of proof of the high excellence
attained by the firm. The firm has deep insights in business processes and therefore it is in unique position to provide
the clients with various constructive ideas and insights leading to improved business efficiencies , better compliance,
good corporate governance and business risk mitigation. The firm also ensures that a very professional healthy
working environment and healthy relationship is being developed i.e a relationship of trust. Therefore the clients
seek their objective suggestions based on the understanding of the business driven by mutual understanding.
Regularly and as a part of audit process ,such business advisory is offered as a part of audit. In cases where follow up
and detailed study are warranted and demanded by the clients ,the firm offers such business advisory as an
assignment.

These business advisory services are offered in the hope that they will lead to a creative exchange of ideas
,one which will result in meaningful actions to enhance the company’s growth and profitability ,or, to benefit
and strengthen the organisation’s , while enhancing the depth and value of the professional relationship
mutually ,for the client and the Firm .

I could earn leadership quality from this firm. The ambience of the firm that the management provide are
very nice and beneficial to develop one’s overall personality and various skills. The founder of the firm,
Keyur Bataviya is a pioneer of the Indian Accountancy and of the Accountancy profession , a dedicated
educationist. I selected this firm because of the following reasons:

To understand the industry practices and principles

For strong theoretical knowledge

To improve research skills

To get knowledge of accountancy, taxation, audit, etc

To understand and interpret numerical and statiscal data.

 C. INTRODUCTION

Keyur Bataviya & Co is a Chartered Accountants Firm established in the year 2017 and it is based out of Navi
Mumbai. The firm offers end to end solutions in a wide spectrum of services, including:

Assurance

Direct Taxation Advisory

Central, State & Local Indirect Tax Management

Internal Audits

Business Tax Planning

Company Law Compliances

Management Reporting

The firm is equipped to cater to the requirements of domestic as well as multinational business establishments,
start-ups, high net –worth individuals, executives and expatriates across varied sectors of industry.

Services Provided

a) assurance services

An annual audit event is more than a control procedure or a statutory obligation.we provide constructive
suggestions for improving business strategies,management information and controls based on our reviews and
examinations which comply with the requsite Standards on Auditing.
Internal auditing is a profession and activity involved in advising organisations regarding how to better achieve
their objectives.The benefits to the client’s management from the internal audit service may include,but not
be limited to the following :

 Sound advice on operations, performance & internal controls

Assessment whether procedures adopted to comply to envisioned policies.

Assesment whether best practices are being implemented or achieved .

The firm provides following Assurance Services:

 Statutory Audit
 Certification
 Tax Audit
 Internal Audit
 Concurrent Audit
 Management Audit
 Compliance Audit
 Operations Audit

b) advisory & consultancy services

Timely strategic financial advice is the Linchpin of all transactions that take place in today’s rapidly evolving
competitive landscape.We understand this and assist in identifying opportunity for,or risks to ,our clients’
interests , which accompany most Financial Advisory(FA)engagements.Every corporate finance deal brings a
specific set of challenges requiring specialist knowledge and experience..

Our integrated approach which involves combining our skills to develop well –rounded solutions based on a
full understanding of our clients’ambitions,business and environment extends a clear commercial
advantage.Our edge lies in our ability to formulate multi-disciplinary teams and to deliver quality results.

The firm provides following Advisory & Consultancy Services:

 Business Advisory
 Transaction Support
 Business Valuation
 Corporate Finance
 Due Diligence
 IFRS Advisory
 Private Equity and IPO Support
 Corporate Restructuring
 Information System and Risk Management

c) accounting and business support services

It is difficult to make sound business decision in today’s global economy without having timely , reliable and
meaningful financial data. We can boost business success by making accounting systems work harder for
management on a daily basis. Quite a larger number of business may not have access to the service of book keeping,
whether it is due to shortage of resources or any other reason. Accounting records and book keeping are vital issues
for all types of businesses to enable its owners, directors or management to be aware of all transactions conducted
by the business and to be able to measure the degree of success of the business as a whole or a particular aspect of
it.

The firm provides the following Accounting & Business Services:

 Accounting Services including Management Accounting

 Review of Accounting Systems and preparation of Accounts /System Manual.
 Back office operations including Payroll/HR
 Transaction Processing
 Standard Operating Processes
 Secretarial Compliances

d) taxation advisory services

We provide business and personal tax advice based on our expertise, commitment and experience. Business
face challenge of turning their newly established operations into profit making operations within a stated
period of time , which is not an easy task. For taking advantage of all possible opportunities business should
certainly include proper tax planning and advice . Tax laws are now complex and therefore its most essential
to ensure that the business with cross border operations undertake adequate tax planning at an early stage. We
help clients create a robust transfer pricing policy to develop and defend the prices to be charged on related
party transactions.

The firm provides the following Tax & Regulatory Services:

 Domestic and International Tax Advisory
 Tax Representation
 Tax Planning
 Tax Returns
 Transfer Pricing
 FEMA/RBI and other Regulation Compliances

Objectives of the firm

Mr. Keyur Bataviya formed Keyur Bataviya & Co after he completed his Chartered Accountants studies with
the objective to serve the society through the knowledge he has gained during the professional course.

Secondly, generating employment and building a goodwill were the other objectives that backed the major
objective of serving society.

With a vision to start, his practice he employed staffs and started to work towards his goal. The firm earned
valuable clients and he started employing more staff to cope up with increasing work.

The firm strive to help the clients strengthen their operational efficiency and increase their profits. The
objectives of the firm can be summarized as follows:

To be perceived as growth engine for transforming CA firms from local to global.

To become a renowned ,preferred, and reliable repository of Indian CA firms which will be referred by each
level of service buyer while identifying ,comparing,& selecting CA firm.

To strive always to improve the quality of services driven by the larger need ,internal and external ,to improve
the quality of life and standard of living for society as a whole.

To respect timelines given by the government and committed to the clients.

To provide platform to channelize with other CA firms,industry,articled trainess &jobseekers.

To place the interest of the individuals and that of client’s ahead of that of the firm whenever the need arises
to differentiate between these interests .

To uphold high standards of honesty and integrity that make an individual and collective actions of those who
work for the firm tuned to truth.
 Firm’s Vision
 Become Preferred consultants
 Deliver quality solutions to the clients
 Respect timelines given by government & committed to the client.
 Worked as an audit assistant in the assignment of internal audit of real estate firm
 The firm is in existence since 2013.

Work Distribution

a) Income tax department

Income tax department works for computation of a person’s direct tax liability. A team of five employee’s
works in income tax department, which includes two seniors and three juniors. This department prepare
income tax return, assesses tax liability and files income tax return based on the computation.

b) Indirect tax department

Indirect tax department works for GST computation as well as VAT and other indirect taxes that were
applicable before GST enforcement. A team of five employees works in indirect tax department, which include
of a senior and four juniors.

c) Accounting department
Accounting department consists of eight people -A head, two seniors, and five juniors or semi qualified
accountant are part of the accounting team. The team members update data using the software Tally Erp 9.The
accounting team does accounting work regularly. This department performs indirect tax and direct tax
accounting work. In indirect tax, clients purchase voucher, sales voucher, bank passbook and other relevant
data is entered. In direct tax, client’s bank passbook, relevant data entry for the year is passed. Accounting
department maintains the books of accounts of the clients for further reference.

d) Audit department
There are three types of audit conducted by the firm viz. income tax, VAT/GST, Company Audit. Separate
teams are formed as and when required, this is so because all these audits are seasonal. The articles staff of the
firm do audit. The purpose of auditing is to satisfy the users of financial statements that the accounts presented
to them are drawn up on correct accounting principles and that they represent a true and fair view of the state
of affairs of the organisation.

All the work is divided into teams, so that work can be done smoothly.

SWOT ANALYSIS
a) Strengths,Skilled staff
The firm has employees who are well versed with the accounting and taxation policies; hence, the output is
up to the mark.

b) Loyal Customers
The firm is managing accounting, auditing and taxation profiles of some clients for many years.

c) Experienced staff
The firm has around five to six employees who have years of experience in the field of accounting, auditing
and taxation.

d) Divided work
As mentioned above, the work is distributed into departments and hence making it easy to identify the work
assigned and completed. This allows smooth running of the organisation.

e) Weakness,Technological advancements
As the complexity of compliance to laws is increasing, it is difficult to keep up with the technological
advancements.

f) Updating knowledge
Every year new amendments are amended in tax laws as per changing market scenario and hence updating the
knowledge is must.

g) Overloaded work
When filing dates are nearby the work is more but as time of filing is over the workload decreases.

h) Opportunities
Grow indirect tax practice,Indirect tax regime is very vast. This field is updating knowledge regularly as GST
is still in the developing stage.

i) Grow to improve quality of audit

Expanding the created goodwill by providing quality service and timely service and expanding the firm.

j) Expand to new markets

The clients of firm are restricted to certain areas only. Therefore, by expanding the business arena the firm can
operate in other areas as well.

k) Threats,Data security challenges

A major threat to the firm is data security as the data is saved on the server and if any virus or pirated data
enters the server than all the data will be damaged.
l) Lack of trained people
The theoretical aspect and practical aspect is different and hence when a fresher is employed he/she is to be
trained first and then work can be allotted according to his/her knowledge.

m) Increasing complexity in tax laws

Various tax laws are updated and creating difficulty in compliance.

D. AUDITING

meaning of auditing

The word audit is derived from the Latin word audire which means to hear. It is an important tool of
management. It is concerned with making an analytical and critical analysis of the books of accounts, checking
and verification of evidence in support of entries appearing in the books of accounts, and ascertaining the
authenticity of the financial statements. It is also concerned with the examination of accounting data to
determine the extent of an audit examination is too made on the basis of evidential document such as invoice,
money receipts and other records by the authorized representative of the client. Auditor has used to send for
the accountants and hear whatever they had to say in connection with the accounts. The auditor has to look
into the facts behind figures and he must certify their accuracy. Auditing is to ascertain the balance sheet and
profit and loss account that they show a true and fair view of the financial state of affairs of a concern. The
Institute of Charted Accountants of India has issued a number of statements of standard auditing practices and
accounting standards for guidance of Auditor of India.

definition of auditing

According toDICKSEE,An audit may be said to be such an examination of the books,accounts and vouchers
of a business, as will enable the auditor to satisfy himself that the balance sheet is properly drawn up, so as to
exhibit a true and fair value of the state of the affairs of the business, whether the profit and loss account gives
a true and fair value of the profit and loss for the financial year. According to the best of his information and
explanations given to him and as shown by the books, and if not, in what respect he is not satisfy.
 origin of auditing

Auditing has its origin in the necessity in the development of some system to put a check on the persons whose
duties were to record receipts and disbursements of money on the behalf of owners. In the ancient days auditing
was confined to public accounts only. With the development of trade and commerce, the need for recording
transactions was felt by businessman. This had necessitated the development of some system of check upon
the persons who recorded such transactions on the behalf of businessman.The audit in its present shape is the
result of large-scale production inconsequence of Industrial Revolution during the 18th Century. With the
development of banking facilities, communication and transport means, the concept of corporate management
has taken birth. It necessitated the investors to know whether their investment is safe or not. Shareholders need
an independent person having expert knowledge of accounts to report on the working of the company and
truthfulness of the profit or loss and financial position disclosed by the management.

Audit
An audit is an evaluation or examination of something by a person or group of people.
They can be made to a person, to a company, to buildings, to systems, to documents and many other things
that are used by people.

Types of audit:

 Compliance audit
 Construction audit
 Financial audit
 Information systems audit
 Investigative audit
 Operational audit
 Tax audit

 Compliance audit.
This is an examination of the policies and procedures of an entity or department, to see if it is in
compliance with internal or regulatory standards. This audit is most commonly used in regulated
industries or educational institutions.

 Construction audit.
This is an analysis of the costs incurred for a specific construction project. Activities may include an
analysis of the contracts granted to contractors, prices paid, overhead costs allowed for reimbursement,
change orders, and the timeliness of completion. The intent is to ensure that the costs incurred for a
project were reasonable.
 Financial audit.
This is an analysis of the fairness of the information contained within an entity's financial statements.
It is conducted by a CA firm, which is independent of the entity under review. This is the most
commonly conducted type of audit.

 Information systems audit.

This involves a review of the controls over software development, data processing, and access to
computer systems. The intent is to spot any issues that could impair the ability of IT systems to provide
accurate information to users, as well as to ensure that unauthorized parties do not have access to the
data.

 Investigative audit.
This is an investigation of a specific area or individual when there is a suspicion of inappropriate or
fraudulent activity. The intent is to locate and remedy control breaches, as well as to collect evidence
in case charges are to be brought against someone.

 Operational audit.
This is a detailed analysis of the goals, planning processes, procedures, and results of the operations
of a business. The audit may be conducted internally or by an external entity. The intended result is an
evaluation of operations, likely with recommendations for improvement.

 Tax audit.
This is an analysis of the tax returns submitted by an individual or business entity, to see if the tax
information and any resulting income tax payment is valid. These audits are usually targeted at returns
that result in excessively low tax payments, to see if an additional assessment can be made.

a) internal Audit

Internal audit is a dynamic profession involved in helping organisations achieve their objectives. It is
concerned with evaluating and improving the effectiveness of risk management, control and governance
processes in an organisation. To do this, internal auditors work with management to systematically review
systems and operations. These reviews (audits) are aimed at identifying how well risks are managed including
whether the right processes are in place, and whether agreed procedures are being adhered to. Audits can also
identify areas where efficiencies or innovations might be made. Internal audits are organised under an ongoing
program of review and advisory activity this is based on the strategic needs of an organisation.
Our area of audit was Income from sale of flats. The process and relevant documents from allotting the flat to
giving the possession of the same were checked.

The buyer is given the allotment letter after receiving the down payment amount. The cheque, cash or IMPS
received was vouched by checking the same in the Tally records and Recepits given to the client. Following
points were kept in mind while doing the same.

b) Vouching

The act of examining vouchers is referred to as vouching. It is the practice followed in an audit, with the
objective of establishing the authenticity of the transactions recorded in the primary books of account. It
essentially consists of verifying a transaction recorded in the books of account with the relevant documentary
evidence and the authority on the basis of which the entry has been made; also confirming that the amount
mentioned in the voucher has been posted to an appropriate account which would disclose the nature of the
transaction on its inclusion in the final statements of account. On these considerations, the essential points to
be borne in mind while examining a voucher are:
(i)that the date of the voucher falls within the accounting period;
(ii)that the voucher is made out in the client’s name;
(iii)that the voucher is duly authorised;
(iv) that the voucher comprised all the relevant documents which could be expected to have been received or
brought into existence on the transactions having been entered into, i.e., the voucher is complete in all respects;
and
(v) that the account in which the amount of the voucher is adjusted is the one that would clearly disclose the
character of the receipts or payments posted thereto on its inclusion in the final accounts.

After the examination is over, each voucher should be either impressed with a rubber stamp or initialled so
that it may not be presented again in support of another entry.

A formal agreement is made for the sale of flat. The date of sale agreement, name of the buyers, carpet area,
usable area, consideration amount, Parking space, additional charges, sign of buyer, seller and witnesses
among other clauses in the agreement were checked.The payment of stamp duty and registration charges was
cross checked with Index II of the agreement. Payment challan of stamp duty & registration and receipt of the
same were scrutinized.

For sale consideration above Rs 50 lacs, TDS @ 1% on flat cost (not including taxes) needs to be deducted by
the buyer from 1st June 2013. Proper deduction by the buyer and availability of Form 26QB & Form 16B was
ensured. Here again the name of the deductor and deductee, sale consideration, time of payment of TDS,
amount of TDS, financial year and assessment year of deducting and paying the tax was examined.
For registration after 1 April 2010 flat 1% on the sale consideration VAT was payable. Entries for levying and
paying the same was checked.

Tally Ledger for all the years were scrutinised so as to verify that service tax, VAT and GST was recorded.

Calculation of amount of late fee or interest charged to the buyer for paying the dues late was checked so as
to ensure that these were arrived at on a reasonable basis and no adhoc charges were collected. Actual receipt
of the same was vouched.

Excess payment if collected from the buyer was returned to the customer and acknowledgment for the same
was taken from him. Test checked the same.

Possession letter given at the time of final possession was checked to ensure no further liability of either party
exists.

KYC Documents maintained were checked in conjunction with the agreement.

For the clients who had taken loan for buying the flat, loan sanction letter were maintained.
Demand letter issued to the bank for getting disbursements of loan amount were checked.

ADVANTAGES OF AUDITING

Auditing is considered to be the place of substantive testing and the need to be verified. It is considerable to
follow the set of rules. It mentions maximum of the costs so that people can have prior intimation about the
auditing. Here are some of the advantages of audit program or benefits of auditing.

a) Access to the capital market:

Public has to remain under the security exchanges and the requirements given under it. Once the auditing is
done the accounts that are audited are easily accepted by the Government such as Central banks, public
authorities. This carries greater authority standards for the account to be authorized.

b) Lower capital cost:

This has reduced information that is associated with the financial statements that has lower interest rates and
return on their investments. Sometimes this activity provides facilitated settlements and claims of a partner.
By performing the process of auditing frauds and errors can be rectified on time.

c) Operational improvements:
An independent auditor can be controlled and achieved operating efficiency within the client’s organization.
It has influence with the staffs along with the members of the client’s organization.
d) Ownership:
If a public company deals with the audition, they can try to reassure the stakeholders about the accounts that
are maintained properly.

e) Amalgamating members of the company:

The nature of each organization will be to define the goals. This amalgamation helps in uniting people to work
together as a team. This combination or unity can be found during the process of auditing.

f) Assessing the tax:

It is the process of calculating one’s property. The person who calculates is called as assessor. This information
will be recorded in local government regarding the taxes and support. It has a specialization in the preview
logics that are specifically modified for the sake of insurance.

g) Proof can be presented:

During the audit one may collect the details from the person so as to ensure that every property has a legal
proof. It helps in evaluation on further discussions. It helps in increasing the goodwill that might keep track of
the collected data.

h) Settlement of claims:
Settlement of claims demands the enhancement and better atmosphere that are sequenced within the
organization. For accessing and to influence moral values one has to restrain themselves from performing
fraudulent activities.

i) Settlement of disputes:
The disputes between the management can be settled easily that are handled within the past accounts. This
requires independent information that is enhanced with the accurate assessment of the traders. It has more
constructive way of improving the efficiency of business within the management.

j) Reports:
It produces the report of the truth and fairness of the reported audit. It involves financial statements that are
more compatible when a person goes through the documents and reports of the audit.

k) Maintaining reputation of the organization:

At the course of completion of an external audition, the reputation of the company is enhanced in the
meanwhile ensuring the growth of the organization. It reviews the multitude of the regulations since, it
maintains the reputation in the community.
l) Ethical behavior:
Auditing can be repeated to gain the business and its overall strategies. It devotes to the dealings in the world.
This analysis and exceptions are the most ethical behavior of a company. This information about accounting
and records are qualified under the procedures of the firm.

m) Analytical procedures:
It can neither help in prioritizing the changes and allocating them with the resources are recorded in the work
papers of audits. It also involves control environment and appointment of analytical procedures of the system.

DISADVANTAGES OF AUDITING
The main risk in audit program is towards the assurance services that derives wrong conclusions. Assurances
are to be provided within the related certification. Here are some of the limitations of an audit.

a) Extra cost:
Testing involves extra cost to the organization which is considered as a burden. It involves the disruptions of
multiple cases. The auditor has to concentrate more even though there are disruptions. Before audit begins the
auditor must get the attention of all the staff members of the organization.

b) Evidences:
Evidences that are identified are more pervasive than conclusive. The strength of submission of audited
accounts makes major changes in the accounts of distribution of profits.

c) Unsuitable changes:
The rules and regulations of business may vary from time to time. It remains unstable when the program
begins. It is obvious that the company’s policies may not change periodically whereas the rules and regulations
may.

d) Chances of fraud:
Since the information delivered after audit procedure is credential then there becomes more chances of getting
the situations where an individual will be forced to commit crime. It harasses the auditors to commit crime
after the audit gets over.

e) Small concerns:
Small scale industries may usually proceed with transactions that are usually completed within the shorter
period of time. Thus, auditing is not too important.

f) Problems in remedial measures:

Here the problem is created in remedial measures that are enhanced within the detailed interface of the data of
remedial measures. These remedial measures are not included in the audit program.
 Functions of Auditing

 Important functions of auditing can be summed up as follows:

 Reviewing systems and procedures of business.
 Examining documentary evidence to establish the accuracy of recorded transactions.
 Reviewing the system of accounting and Internal Controls.
 To verify the valuation and existence of assets.
 To examine the mathematical accuracy of accounting statements.
 To see whether the statutory requirements have been complied with.
 Reporting as to what extent, accounts exhibit true and fairness.
 To make recommendations for improvement in Internal Control and Accounting System.
 To verify the distinction between capital and revenue items.

OBJECTIVES OF AUDITING

The main objectives of auditing are discussed as follow;-

a) PRIMARY OBJECTIVES

The Primary objectives of auditing are as below;-

1. FAIRNESS OF STATEMENTS: The purpose of auditing is to determine the fairness of statements.

The financial statements can show true and fair view after auditing. Due to limitations of financial
statements it is not possible to provide cent percent accuracy, So an attempt is made to show the fair view
of financial statements.
2. PRESCRIBED LAWS: The purpose of the audit is to check that prescribed laws have been followed in
the preparation of financial statements. There are various laws that govern the working of many businesses.
The auditor can indicate whether the prescribed laws were followed in the preparation of final accounts.
3. ACCOUNTING POLICIES: The purpose of auditing is to examine the accounting policies. There is need
to follow the accounting policies for preparing accounting records. The effective accounting systemcan
provide better results. The auditor can express an opinion on the accounting policies in the best interest of
business.
4. INDEPENDENT OPINION: The purpose of the audit is to express an independent opinion. The auditor
must be honest in his work. Management and other persons must not influence him There must be high ethical
standard for independent reporting.

b) SECONDARY OBJECTIVES

The Secondary objectives of auditing are as below;-

5. DETECTION OF ERRORS: The purpose of auditing is to detect the errors. The auditor can use ways and
means to find out errors in the accounting records. It is the duty of management to avoid errors. The
independent audit work is helpful for discovery and correction of errors.
6. DETECTION OF FRAUDS: The purpose of auditing is to detect frauds. The management is responsible
for the detection of frauds. The various types of fraud may be detected by an audit. The management can take
steps to correct the wrong effects of frauds for the benefit of owners.
7. PREVENTION OF ERRORS: The purpose of auditing to errors. The errors can be prevented through
effective internal check- The mistake can occur due to heavy load work or carelessness on the part of
employees. There should be no extra burden of work on each employee. The senior person should checkthe
work of a junior person.
8. PREVENTION OF FRAUDS: The purpose of auditing is to Prevent frauds. In accounting, it includes
manipulation or alteration of records and misappropriation of assets, an omission of the effects of the
transaction from records or documents, recording of the transaction without substance and misapplication
of accounting policies. The effective internal check is a useful tool to prevent frauds.

E. RELATION OF ACCOUNTING AND AUDITING

Both accounting and auditing are closely related with each other as auditing reviews the financial statements
which are nothing but a result of the overall accounting process. It naturally calls on the part of the auditor to
have a thorough and sound knowledge of GAAP before he can review the financial statements.In fact, auditing
as a discipline is also closely related with various other disciplines as there is lot of linkages in the work which
is done by an auditor in his day-to-day activities.To begin with, it may be noted that the discipline of auditing
itself is a logical construct and everything done in auditing must be bound by the rules of logic. The knowledge
of language is also considered essential in the field of auditing as the auditor shall be required to communicate,
both in writing as well as orally, in day-to-day work .
 For example
, if the business has really earned a profit but because of wrong accounting, the annual accounts show a loss,
the proprietor may take the decision to sell the business ata loss. Thus from the point of view of the
management itself, authenticity of financial statements is essential. It is more essential for those who have
invested their money inthe business but cannot take part in its management,
 for example
, shareholders in a company, such persons certainly need an assurance that the annual statements of accounts
sent to them are fully reliable. It is auditing which ensures that the accounting statements are authentic. In
today’s economic environment, information and accountability have assumed a larger role than ever before.
As a result, the independent audit of an entity’s
The principal aspects to be covered in an audit concerning final statements of accounts are as follows:-
 An examination of the system of accounting and integral controls to ascertain whether it is
appropriate for the business and helps in properly recording all transactions.
 Reviewing the systems and procedures to find out whether they are adequate and
comprehensive.
 Check the arithmetical accuracy of books of accounts by the verification of postings,balances
etc.
 Examine the documentary evidence to establish the accuracy, authenticity and validity of
transactions recorded.
 Verifying that a proper distinction is made between capital and revenue items.
 Verification of the title, existence and valuation of assets appearing in the balancesheet.
 Examination that the statutory requirements are complied with.
 Verifications of the liabilities stated in the balance sheet.
 Comparison of balance sheet and profit and loss account and other statements with underlying
records in order to see that they are in accordance there with.
 Checking the results shown by the balance sheet and profit and loss account to see whether the
results shown are true and fair.
 Reporting to the proper person as to what extent, accounts reveal a true and fair view of the
state of affairs and of the profit and loss account of the organization.

F. The Real Estate (Regulation and Development) Act, 2016

Introduction

it is an Act of the Parliament of India which seeks to protect home-buyers as well as help boost investments
in the real estate industry. The Act establishes Real Estate Regulatory Authority (RERA) in each state for
regulation of the real estate sector and also acts as an adjudicating body for speedy dispute redressal. The bill
was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The Act came
into force on 1 May 2016 with 59 of 92 sections notified.[1] Remaining provisions came into force on 1 May
2017.[2] The Central and state governments are liable to notify the Rules under the Act within a statutory period
of six months.

History
Real Estate Regulatory Authority (RERA) Bill was introduced by the UPA 2 government in 2013.[4] In
December 2015, the Union Cabinet of India had approved 20 major amendments to the bill based on the
recommendations of a Rajya Sabha committee that examined the bill.[5] The Bill had been referred to a
selection committee, which had given its report in July 2015.[6] However, Congress, Left and AIADMK had
expressed their reservations on the report through dissent notes.[6] The bill got approval of the Rajya Sabha on
10 March 2016 and by the Lok Sabha on 15 March 2016.[7][8]

Registration[edit]

The Real Estate Act makes it mandatory for all commercial and residential real estate projects where the land
is over 500 square metres, or eight apartments, to register with the Real Estate Regulatory Authority (RERA)
for launching a project, in order to provide greater transparency in project-marketing and execution. For
ongoing projects which have not received completion certificate on the date of commencement of the Act, will
have to seek registration within 3 months. Application for registration must be either approved or rejected
within a period of 30 days from the date of application by the RERA. On successful registration, the promoter
of the project will be provided with a registration number, a login id, and password for the applicants to fill up
essential details on the website of the RERA. For failure to register, a penalty of up to 10 percent of the project
cost or three years' imprisonment may be imposed.[7] Real estate agents who facilitate selling or purchase of
properties must take prior registration. Such agents will be issued a single registration number for each State
or Union Territory, which must be quoted by the agent in every sale facilitated by him.

Protection of buyers[edit]

The Act prohibits unaccounted money from being pumped into the sector and as of now 70 per cent of the
money has to be deposited in bank accounts through cheques is now compulsory.[9] A major benefit for
consumers included in the Act is that builders will have to quote prices based on carpet area not super built-
up area, while carpet area has been clearly defined in the Act to include usable spaces like kitchen and toilets.[7]

Real Estate Regulatory Authority and Appellate Tribunal[edit]

It will help to establish state-level Real Estate Regulatory Authorities (RERAs) to regulate transactions
related to both residential and commercial projects and ensure their timely completion and
handover.[9] Appellate Tribunals will now be required to adjudicate cases in 60 days as against the earlier
provision of 90 days and Regulatory Authorities to dispose of complaints in 60 days while no time-frame was
indicated in earlier Bill...[9]

Rules

The Act under S.84[10] contemplates that within 6 months of the RERA Act being enforced, State Governments
shall make rules for carrying out the provisions of the Act. The said Rules are to be notified by some of the
State Government.
As late as 31 October 2016, Central Government, released the Real Estate (Regulation and Development)
(General) Rules,[11] 2016, vide Notification by the Ministry of Housing & Urban Poverty
Alleviation(HUPA).[12] The Rules so issued by the Central Government are applicable to the five Union
Territories without Legislature viz., Andaman & Nicobar Islands, Dadra & Nagar Haveli, Daman & Diu,
Lakshadweep, and Chandigarh. The Rules have been issued after the prior release of Draft for comments.[13]

As of 1 September 2018, Arunachal Pradesh, Mizoram, Meghalaya, Sikkim and Nagaland have not notified
the Rules. In the case of five north-eastern states, the RERA Act is facing certain constitutional challenges as
the land in those states are community owned. West Bengal notified a similar law called the West Bengal
Housing Industry Regulatory Act, 2017, which came into effect from 1 June 2018. [14] However, as of
November 2018, many of the states have not implemented the law in its true letter and spirit and failed to
notify a Permanent Regulator, Appellate Authority or a website. A chart showing the implementation status
by different states as of November 2018 can be seen here [2].
 G. AUDITOR

MEANING

The person conducting audit is known as the Auditor; he makes a report to the person appointing
him after due examination of the accounting records and the accounting statement in the form of an opinion
on the financial statements. The opinion that he is called upon to express is whether the financial statement
reflect a true and fair view. Auditing, especially of companies and for public purposes has become the preserve
of persons having recognized professional training and qualification. In India, under the authority of the
Companies Act, 1956, only Chartered Accountants are professionally qualified for the audit of the accounts
of companies... Chartered Accountants are in a position to undertake auditing of almost any accounting aspect,
unlike cost accountants whose sphere has been restricted to audit of the cost accounting records and statements.
It is C.A. or a firm whose all partners are Chartered Accountants who act as auditors in India.

TYPES OF AUDITIOR

a) External auditior
External auditors are the persons who practice the profession of accountancy having qualified
in the professional examination and are external vis-à-vis the organizational which they audit
the accounts.

b) Internal auditior
The Internal auditors, on the other hand, may also be professionally qualified and are internal
vis-à-vis the organization in which they are appointed to perform specific work.

POWERS OF AUDITORS
The rights of the company auditor can not be limited or abridged in any way. Any resolution
limiting the powers of the auditor or any such provision in articles of association will be void.
Following are powers/rights of auditors:-

Access to books and vouchers

Every auditor of company shall have a right to access at all times to the books and accounts
and vouchers, whether kept at head office of company or elsewhere. Auditor is not required to
wait for the closing of accounts for conducting the audit. The words all times means only the
normal business hours. All types of documents, agreements, correspondences, financial books,
statistical books, memorandum books, etc are covered.

a) Right to obtain information and explanations

Auditor may require the officers of the company to provide such information as he may think
necessary for the permanence of his duties. It will be obligatory for the officers of the company
to furnish without delay the relevant information to the auditors.

b) Right to visit branch offices and access to branch accounts

Where accounts of any branch office are audited by another person, the company auditor:-

Shall be entitled to visit the branch office, if he deems it necessary to do so for the performance
of his duties as auditor

Shall have a right to access at all times to books and accounts and vouchers of the
companyRight to attend General Meeting

All the notices and other communications relating to any general meeting also be forwarded
to the auditors of a company along with shareholders/members. Auditors shall be entitled to
attend any general meeting and to be heard at any general meeting which he attends on any
part of the business which concerns him as auditor.

c) Auditor’s lien

Auditor’s lien on his client’s books and records is unconditional. Auditor can exercise lien on
books and documents subject to following conditions:-

Documents retained must belong to client

Such documents must be in possession of auditor on client’s authority

On such documents, some work must have been done

The fees for work performed must be outstanding.

d) Right to receive remuneration

Remuneration of the auditor of a company may be fixed by the authority which appoints him.
Therefore, Board of Directors will fix remuneration in case of first auditors or auditors
appointed to fill up casual vacancy. If he is appointed at the annual general meeting his
remuneration will be fixed by the company at the general meeting.

A separate disclosure of all the amounts paid to the auditor in whatever capacity and whether
as fees or expenses, is required to be made in profit and loss account, classified as follows:-
 (a) As auditor

(b) As advisor or in any other capacity in respect of:

maintained at the branch office.

DUTIES OF AUDITOR

The statutory duties of an auditor cannot be limited in any way either by Articles of Association
or Directors or by members. However, a company may extend them. The following are the
duties that the auditor has to perform:-

 Auditor has to state whether in his opinion and to the best of his information and
according to the explanations given to him, the accounts, give a fair and true view in the
case of the balance sheet, of the state of the company’s affairs as at the end of its
financial year and in the case of the profits and loss account, of the profits and losses for
its financial year. Following guidelines may be laid down in this regard:

 Balance sheet and profit and loss account should be as per requirements of The
Companies Act, 1956

 There should be no window dressing

 All material facts should be properly disclosed

 All usual, exceptional or non recurring items should be disclosed separately

 The financial statements should convey the required information clearly

 Auditor has to state whether he has obtained all the information and explanations which
to the best of his knowledge and belief were necessary for the purpose of his audit.

 He is required to state whether in his opinion, proper books of accounts as required by

law have been kept by the company, so far as appears from his examination of these
books, and proper returns adequate for the purpose of his audit have been received from
branches not visited by him.

 Whether in his opinion the balance sheet and profit and loss account comply with the
accounting standards referred in Section 211 of The Companies Act, 1956.
 Auditor is required to state whether any director is disqualified from being appointed as
director under Section 274

 He will state whether the cess payable under Section 441A of the act has been paid by
the company and if the same remains to be paid, details thereof.

 Whether the company’s balance sheet and profit and loss account dealt with by the
reports are in agreement with the books of accounts and returns.

 He will state whether the report on the account of any branch office audited under
Section 228 by a person other than the company auditor has been forwarded to him and
how he was dealt with the same in preparing auditors report.
 H. GST

return filing

Goods and Service Tax (GST) is applicable in India from 1st July 2017. GST system in India contains three
types of GST – Central GST (CGST), State GST (SGST), Integrated GST (IGST). CGST & SGST is
applicable on intra-state sales (i.e sales within same state) and IGST is applicable on inter-state sales (i.e sales
outside state). Total rate of GST will be same in both the cases.

Persons with aggregate Turnover of more than Rs. 20 lakhs are compulsorily required to register and file
GSTR 3B. GSTR 3B has to be compulsorily filed by every taxpayer by the 20 of the subsequent month. Non
th

filing attracts Rs 25 late fee under both CGST & SGST Act. Late fee of a particular month is payable in the
next month.

GST can be paid by e-payment or NEFT/RTGS or over the counter through authorised banks. However, there
is a limit of Rs. 10,000/- per challan, for over the counter payment through authorized banks. Challan to that
effect has to be generated on the portal which is valid for next 15 days.Total taxes payable under different
heads like basic tax or late fee and different acts like IGST or CGST or SGST have to be filled in it. Once is
amount is credited to the Government’s account the same is reflected in the Cash Ledger of the dealer and
now the return can be successfully filed by off – setting the outstanding liability.

The GST Return can be filed using Digital Signature Certificate or Electronic Verification Code (EVC) sent
through mail or sms. Only after authentication the return gets filed. Filed return and challan can be
downloaded and stored for future reference. A confirmation mail towards filing the return is received.

Once the return is filed it cannot be revised. Changes if any have to adjusted in future returns.

Input Tax Credit

Understood the concept of Input Tax Credit .

Example for understanding Input Tax Credit under GST

Suppose there is a seller Mr A and he sells his goods to Mr B. Here Mr B i.e the buyer will be eligible to claim
the credit on purchases based on the invoices

Step 1: Mr A will upload the details of all tax invoices issued in GSTR 1 quarterly or monthly if the aggregate
turnover of the dealer is more than 1.5 Crore, as applicable

Step 2. The details with respect to sales to Mr B will auto populate/ get reflected in GSTR 2A, the same data
will be pulled when Mr B will file GSTR 2 (i.e details of inward supply).
Step 3: Mr B will then accept the details that the purchase has been made and reported by the seller correctly
and subsequently the tax on purchases will be credited to ‘Electronic Credit Ledger’ of Mr B and he can adjust
it against future output tax liability

Input tax credit means at the time of paying tax on output, you can reduce the tax you have already paid on
inputs and pay the balance amount.

Input Tax Credit can be claimed ony when the dealer is in possession of tax invoice containing the PAN-based
15-digit Goods and Services Taxpayer Identification Number (GSTIN) of him, the said goods/services have
been received, the returns have been filed by the supplier and the tax charged has been paid to the government
by the supplier.

The input tax credit has to be claimed in GSTR 3B on provisional basis.

It is possible to have unclaimed input credit. Due to tax on purchases being higher than tax on sale. In such a
case it is allowed to carry forward the same to next tax period.

If tax on inputs > tax on output –> carry forward input tax

If tax on output > tax on inputs –> pay balance

Excess claimed ITC can be reversed in GSTR 3B.

GSTR 3B does not contain invoice level break up it is given in GSTR 1.

Details to be given in GSTR 3B:

(a) Outward taxable supplies – Do not include supplies which are zero-rated, or have a nil rate of tax or are
exempt from GST. These must be provided separately. Include only those supplies on which GST has been
charged by you.

Value of Taxable Supplies = Value of invoices + value of debit notes – value of credit notes + value of
advances received for which invoices have not been issued in the same month – value of advances adjusted
against invoices

(b) Outward taxable supplies (zero-rated) – here include only those supplies on which GST rate is zero.
Zero-rated supplies are exports or supplies made to SEZ.

(c) Other outward supplies (nil rated, exempt) – include supplies which are exempt from GST or are nil
rated. Nil rated supplies are those for which the GST rate is nil. Or which have been kept exempt from GST.
For e.g. salt, puja samagri, curd, lassi, fresh milk. These goods are exempt from GST.
(d) Inward supplies (liable to reverse charge) – provide details of purchases made by from unregistered
dealers on which reverse charge applies. In such cases, you have to prepare an invoice for yourself and pay
the applicable GST rate of tax.

(e) Non-GST outward supplies – details of any supplies made by you kept wholly out of GST. For eg, alcohol
and petroleum products.

Break up of purchases made has to be given as follows:-

 import of goods,
 import of services,
 inward supplies on reverse charge
 all other ITC – Normally all the ITC to be claimed for all the clients is put under this head.

Filing of GSTR 1
a) Assisted in filing GSTR 1

GST Returns can be either filed directly on the portal or offline utility provided on GST Portal or GST
Softwares available. The only short coming of using GST Offline utility is that it does not show errors( if any)
in the invoices before uploading the same on the portal. So it becomes a tedious process first to import all the
data in the utility then upload the same on the portal. Error file is generated on the portal if error exists. Now
that error file has to be downloaded and read using the utility for removing the errors. This process continues
till the time the data becomes error free.

The firm uses WEBTEL software for GST Compliance work. Details of all the clients for all the tax periods
can be saved and uploaded. It works like a database to store all the data. Errors if any in the invoice e.g. Invoice
number is greater than 16 characters or any special character like “.” is used in the invoice number the same
is shown by the software before uploading the same. All the work from GSTR 3B to GSTR 1 can be done
using a software. It is a user friendly software data can be imported in it directly from accounting software
like Tally. Excel Template can also be generated from the software for importing the data. Large number of
errors can be solved in one go. Large amount of data can be processed at the same time. Once the login details
i.e username and password is saved in the software and a client is created, the software automatically connects
with the portal and all the work can be done through the portal. There is absolutely no need to visit the portal.
But the firm processes only GSTR 1 through the portal, GSTR 3B is filed directly on the portal. The complex
process of filing GSTR 1 which contains following data can be easily done through the software.
 b) Details of GSTR 1

Taxable outward supplies made to persons including the breakup of Business to Business (B2B) who claim
ITC of the same and Business to Consumer (B2C) who cannot claim ITC has to be given.

Details to be given are as follows:

 Invoice Number
 Party GSTIN
 Taxable Value
 Tax Amount ( Break up of IGST, CGST or SGST)
 Total Amount
 Quantity Details (If any)
 Harmonized System of Nomenclature (HSN Code) for business having turnover above 1.5 Crores but
the firm followed the practice for all the clients.
 Debit /Credit notes (if any)

Worked as an accountant on site

The client had not recorded the attendance sheets for 100+ invoices. The same was done in excel for 5000+ records.

VAT Audit

Examined the sales and purchases records for Quarter 1 (Apr to June 2017).
The Tally data was imported to excel and then was checked for any errors and the same were corrected.

C-Forms

Inter-state purchases attracted Central Sales Tax (CST) before introduction of GST. The purchases could be made
at the lower rate of 2% if C Form was issued by the buyer as against the normal rate of tax which could be as high
as 13.5%. Records regarding the sales made at 2% have to be submitted to the VAT Department. There is a special
annexure in the VAT Audit Form for the same.

assisted in making a list of C Forms wherein the following records were included
 Party Name
 Party CST TIN
 State
 C Form number as issued by state of purchasing dealer
  Invoice details on the C Form
These records were again compared with Tally Records and final annexure was made.

Key Observations made:

1. The firm had in place a To-Do list in excel which kept a record of due dates
2. An excel sheet for work status was maintained and updated by all the assistants containing all details
mentioned below
 Name of the client
 Nature of job
 Expected Date of completion
 Worked Completed till date
 If any response from client was pending
 If any response from partners of the firm was pending
 Date if completion and handing over the same for checking
3. The work of all the assistants was checked before final submission
4. The Digital signature certificate (DSCs) were large is number still easy retrieval of the same was
possible as they had sorted it on a logical basis.
5. The firm had 200+ files in the office. They had allotted file number to each file and maintained an
excel sheet of the same. So when a particular file was needed they would search the clients’ name in the files
list and get the file within a minute.
6. For the clients who did not make payments of the fees on time, they used to keep their work ready and
as soon as the payment was made they would process the assignment.
The partners (CA) had very effective communication skills so as to maintain the relationship with their
clients.
7. Each mail received for acknowledged by replying to it. The reply were as simple as Thank You for the
mail where we had demanded the same or the expected date of completion if the mail was for some query or
simply noted.
1. Similarly the clients also acknowledged the mails sent by the firm. If they did not, a call was placed to
discuss the same. This minimised the risk of default and excuses such as the mail was not read by me
earlier.
2. The firm had in place system to record every minute detail. When asked about the same the explained
that all the work which is being processed now will be scrutinised by the Departments after 4 to 5 years.
For keeping a record and easily remembering all the changes made a record has to be maintained.
3. Frequent backups of all the data were taken.
4. Person responsible for the job was also given adequate authority for getting things done through others.
5. There were no conflicts or arguments as such in the firm.
6. All the articles working there extensively used Google for solving day to day problems in their work
 7. Softwares like Tally, Excel, Genius (For Income Tax related work), Webtel were in use.
Care was taken that the primary data on the basis of which jobs were processed was maintained.
8. Excel sheets were found in every folder. Firm allotted separate time for training in excel. Shortcuts
were taught to all the interns.
9. KYC of all the clients were maintained in the folder containing the details such as
-Name of the client
- PAN
- GSTIN
- Date of Birth
- Address
- Mobile Number & Email ID
- Login Details on various sites
This facilitated quick processing.
10. The firm had 200 clients. The names of the clients were also same. But there was absolutely no
confusion due to this.
11. A track of files entering the office and going out of it was also maintained.
This looked like as a time consuming procedure but helped avoiding confusion and conflicts. Name of the
person collecting the file and on which date it was collected or submitted in the office was maintained
in records.

Overall understood how the office functions.

 I. Tally. ERP 9 Accounting Software Tally.

INTODUCTION

ERP 9 is one of the most widely used financial software. Tally.ERP 9 reports can help a business owner make
informed decisions to increase efficiency, reduce costs, and organize business operations. With Tally.ERP 9,
accurate, up-to-date business information is available at your fingertips anytime. It provides a Comprehensive
solution for the accounting and inventory needs of a business. It provides the capability to generate fully
accurate tax returns in a matter of minutes and is also capable of extracting, interpreting and presenting
financial data. Tally.ERP 9 is the world’s fastest and most powerful concurrent Multi-lingual business
Accounting and Inventory Management software. Tally.ERP 9, designed exclusively to meet the needs of
small and medium businesses, is a fully integrated, affordable and highly reliable software. Tally.ERP 9 is
easy to buy, quick to install, and easy to learn and use. Tally.ERP 9 is designed to automate and integrate all
your business operations, such as sales, finance, purchasing, inventory, and manufacturing. With Tally.ERP
9, accurate, up-to-date business information is literally at your fingertips anywhere. The powerful new features
and blazing speed and power of Tally.ERP 9 combined with enhanced MIS, Multilingual, Data
Synchronization and Remote capabilities help you simplify all your business processes easily and cost-
effectively.

Salient Features of Tally.ERP9:-

A leading accounting package: The first version of Tally was released in 1988 and, through continuous
development, is now recognised as one of the leading accounting packages across the world, with over a
quarter million customers. Tally’s market share is more than 90%.

No accounting codes: Unlike other computerised accounting packages which require numeric codes,
Tally.ERP 9 pioneered the ‘no accounting codes’ concept. Tally.ERP 9 users have the freedom to allocate
meaningful names in plain English to their data items in the system.

Complete business solution: Tally.ERP 9 provides a comprehensive solution to the accounting and inventory
needs of a business. The package comprises financial accounting, book-keeping and inventory accounting. It
also has various tools to extract, interpret and present data.

Integrated/Non-integrated accounting and inventory: With Tally. ERP 9, the user is able to choose to maintain
accounts only. If accounting with inventory is opted for, the user can choose whether it should be integrated
or not.

Flexible and easy to use: Tally.ERP 9 is very flexible. It mimics the human thought process, which means that
Tally.ERP 9 can adapt itself to any business need. Tally.ERP 9 users need not change the way their business
is run to adapt themselves to the package.
Speed: Tally.ERP 9 provides the capability to generate instant and accurate reports, which assist the
management to take timely and correct decisions for the overall productivity and growth of the company.

Power: Tally.ERP 9 allows the user to maintain multiple companies and with unlimited levels of classification
& grouping capabilities. It also allows drill down facility from report level to transaction level.

Flexibility: Tally.ERP 9 provides flexibility to generate instant reports for any given period (month/year) or
at any point of time besides providing the facility to toggle between Accounting & Inventory reports of the
same company or between companies.

Concurrent multilingual capability: Tally. ERP 9 offers you the exclusive capability of maintaining your
accounts in any Indian language, viewing them in another language and printing them in yet another Indian
language.

Real time processing: Immediate posting & updating of books of accounts as soon as the transactions are
entered, thereby facilitating instant statements & Reports. It also facilitates a real-time multi-user environment.

Versatility: Tally.ERP9 is suitable for a range of organisations, from small grocery stores to large corporations
with international locations and operations.

Multi-platform availability: Tally. ERP 9 is available on multiple versions of windows. It runs on a single PC
or on a network. On a network, it supports access via any combination of platforms.

Online Help: The Tally. ERP 9 Online Help (Alt+H) provides instant assistance on basic and advanced features
or any other relevant topics of Tally. ERP 9.

Tally.NET: Tally.Net is an enabling framework which establishes a connection through which the remote user
can access the client’s data without copying / transferring the data.

Remote Access: Tally. ERP 9 provides remote capabilities to access the data from anywhere and anytime.

Control Centre: works as an interface between the user and Tally.ERP 9 installed at different sites and enables
the user to centrally configure and administer Site/User belonging to an account.

Support Centre: allows a user to directly post his support queries on the functional and technical aspects of the
Product.

Auditor’s Edition: Tally.ERP 9 offers a special Auditors’ Edition of Tally.ERP 9, which provides auditing and
compliance capabilities exclusively for Chartered Accountants.
 Functional Features of tally

Basic Accounting Basic Inventory

Complete book-keeping Stock categories
Books, registers and statements of accounts Stock query by stock group, or stock category
General ledgers Multiple go downs
Accounts receivable and accounts payable Stock transfers to go downs and branches
Flexible voucher numbering Multiple stock valuation methods
Flexible classification of account heads Batch-wise/Lot-wise, including expiry date handling
Panoramic view Alternate units of measure and tail units
Drill-down display Tracking through receipt notes/delivery notes/rejections
inwards/rejections outwards
Database reporting Additional costs incurred on purchase
Voucher and cheque printing Movement/Profitability analysis Party-wise/Item-wise/
Stock Group-wise
Columnar reports Customisable sales invoices using price lists with
multiple prices
Bank reconciliation Sales and purchase order processing
Cash flow statement

Advanced Accounting Advanced Inventory

Multiple companies Stock items classified as raw materials, work-in-process,
finished goods
Multi-currency Bill of Material with auto-adjustment of stocks
Multiple financial years Job-working concepts, including sub-contracting
Comparison of data using multi-columnar Additional cost of manufacturing with notional value
reporting and percentage
Memo vouchers CENVAT support
Post-dated vouchers Reorder levels
User-defined voucher types Stock ageing analysis
Sales and purchase extracts Batch related stock reports
Point of Sale (POS)
Daily balances and transaction values/ Excise/ VAT/ Central Sales Tax (CST)/ Tax Collected at
Interest calculations Source (TCS) related Inventory transactions and reports
Percentage-based reporting
Ratio analysis
Value Added Tax (VAT)/ Central Sales Tax
(CST)
Tax Deducted at Source (TDS)
Tax Collected at Source (TCS)
Excise
Payroll
 Role:-

a) Transaction Processing And Accounting Entries:-

 Sales Voucher
 Purchase Voucher
 Receipts Voucher (Entries based on pay-in-slip, Receipt advise received from clients)
 Payments Voucher (Physical bank voucher, cheque issue statements, counter foils)
 Contra (Pay-in-slips and cash withdrawal slips)
 Journal Voucher
 Preparation ofBank Reconciliation Statement
b) Internal Audits:-
 Cash Vouching
 Bank Vouching
 Checking Bank Reconciliation Statement
 Verification Of Fixed Deposit Receipt (F.D.R.)

c) TDS
d) GST Audit

 Sales Voucher:

Before making an accounting entry, the following aspects were reviewed by me:-

 The seller's name and address

 The buyer's name and address

 A description of the item being sold, including serial numbers, identification numbers, make, model,
size, colour, design, any distinguishing marks, features or faults, etc

 Special conditions to the sale (e.g. sold as is, with warranty, etc.)

 The date of transaction

 The amount paid (written in words and in numerals)

 Any agreements regarding due dates for pending payments, late payments and interest rates.

 Make sure the bill of sale is legible.

 Double-check all information and signatures on the bill of sale.

 Make copies of the bill of sale for the buyer and seller.
  Purchase Voucher:-

 Before making an accounting entry, the following aspects were reviewed by me:-

1. Purchase bill must be passed by purchase department or concerned authorities.

2. Total of amount of purchase bill should be correct.
3. Date of purchase bill.
4. Amount must be written both in figures and words.
5. Purchase Voucher must be signed by the authorized person.
6. Original copy of purchase bill.
7. Copy of delivery challan, if any.
8. Copy of transport receipt, if any.
9. Copy of purchase order, if any.
10. Copy of material receipt challan by store department, if any.

 Receipts Voucher:-

 Before making an accounting entry, the following aspects were reviewed by me:-

1. Name, address, and GSTIN of the supplier

2. Serial number
3. Date of its issue
4. Name, address and GSTIN or Unique Identity Number, if registered, of the recipient
5. Description of goods or services
6. Amount of advance taken
7. Rate of tax (central tax, State tax, integrated tax, Union territory tax or cess)
8. Amount of tax charged in respect of taxable goods or services (central tax, State tax, integrated tax,
Union territory tax or cess)
9. Place of supply along with the name of State and its code, in case of a supply in the course of inter-
State supply.
10. Whether the tax is payable on reverse charge basis
11. Signature of the supplier or his authorised representative.
12. Entries based on pay-in-slip
13. Receipt advise received from clients.
  Payments Voucher:-

In a small business organizations where the cash and bank payment transactions are very limited, single type
of payment voucher is sufficient for all type of payments but it is not possible with a big organizations to
make single type of payment voucher for all type of payment transactions keeping in view the number of
payment transactions. In that case, two types of payment voucher can be prepared for control purpose as
follows:-

1. Cash Payment Voucher:- These vouchers are used only in case of cash payment.
2. Bank Payment Voucher: These vouchers are used when the payment is made through bankers of business
firm.

 Before making an accounting entry, the following aspects were reviewed by me:-

 Proper voucher must be selected for payment i.e. Cash Payment Voucher or Bank Payment Voucher or
Payment Voucher (if no separate vouchers are prepared for payment in cash or through bank.
 Cash Memo
 Challans
 Receipts
 Date of payment must be written on voucher.
 The payment voucher must be serially numbered.
 Amount should be written both in figures and words.
 Proper account heads should be debited.
 Cash account should be credited if the payment is made by cash.
 Bank account should be credited if the payment is made by cheque (always name of bank must be written).
 The receiver of money must sign the voucher.
 The voucher must be signed by the authorized person who has the authority to instruct the cashier to pay the
money.
 Proper source document must be attached with the payment voucher.
 Physical bank voucher
 cheque issue statements
 counter foils
 Contra Voucher:-

This voucher is used for fund transfers between Cash and Bank accounts only.

 Before making an accounting entry, the following aspects were reviewed by me:-

 Pay-in-slips.
 cash withdrawal slips
 Inter-Bank Transfer

 Journal Voucher:-

 Journal vouchers are prepared for the following transactions:-

1. Opening balances
2. Purchases of fixed assets and other assets on credit
3. Sale of fixed assets and other assets on credit
4. Depreciation on fixed assets.
5. Purchase of any items relating to business expenditures on credit
6. Adjustment entries.
7. Closing entries.
8. Correction entries.
9. Transfer entries.
10. Provisions for expenditures
11. Accrual income.
12. The entries for transactions which are not repeated very frequently. For example if there are very limited
transaction in respect of material return then the journal vouchers can be prepared rather than preparing
the purchase return voucher or sales return vouchers etc.

 Before making an accounting entry, the following aspects were reviewed by me:-

1.Invoices for all non-trading items.

2.Bills or Debit notes or Credit notes for services availed or provided

3. The debit notes and the credit notes in respect of material returns and other adjustments.

4. For prepaid and outstanding expenses, the copy of payment voucher whenever the same are paid.

5. Any document which can authenticate the happening of journal voucher.

6. For rectification of errors.

7. The support documents must be attached with the journal voucher as far as possible. These support
documents must be duly checked and passed by the concerned authorities.

8. For adjustments, provisions, and corrections, transfers etc. there should be a perfect logic and the working
of the transaction must be attached with the journal voucher. The justification of transaction must be
approved by the competent authorities.

9. Amount must be written both in figures and words.

10. The journal voucher must be signed by the accountant and the authorized person.

 Preparation of Bank Reconciliation:-

Bank reconciliation explains the difference between the bank balance shown in an organization’s bank
statement and the corresponding amount shown in the organization’s accounting records, on a particular
date.
BASIS FOR
MANUAL ACCOUNTING COMPUTERIZED ACCOUNTING
COMPARISON

Meaning Manual Accounting is a system of Computerized Accounting is an accounting

accounting that uses physical registers system that uses accounting software, for

and account books, for keeping recording financial transactions

financial records. electronically.

Recording Recording is possible through book of Data content is recorded in customized

original entry. database.

Calculation All the calculation is performed Only data input is required, the calculations

manually. are performed by computer system.

Speed Slow Comparatively faster.

Adjusting It is made for rectification of errors. It cannot be made for rectification of errors.

entries

Backup Not possible Entries of transactions can be saved and

backed up

Trial Balance Prepared when necessary. Instant trial balance is provided on daily

basis.
BASIS FOR
MANUAL ACCOUNTING COMPUTERIZED ACCOUNTING
COMPARISON

Meaning Manual Accounting is a system of Computerized Accounting is an accounting

accounting that uses physical registers system that uses accounting software, for

and account books, for keeping recording financial transactions

financial records. electronically.

Recording Recording is possible through book of Data content is recorded in customized

original entry. database.

Calculation All the calculation is performed Only data input is required, the calculations

manually. are performed by computer system.

Speed Slow Comparatively faster.

Adjusting It is made for rectification of errors. It cannot be made for rectification of errors.

entries

Backup Not possible Entries of transactions can be saved and

backed up

Trial Balance Prepared when necessary. Instant trial balance is provided on daily

basis.
 comparison

HOW TO CREATE A COMPANY

 Go to Gateway of Tally > Alt + F3 > Create Company

 Enter the basic information, i.e., name, mailing name and address of the company, currency symbol

etc.

 In the ‘maintain field’, select Accounts Only or Accounts with Inventory as per the company

requirements.

 In the Financial Year from, the first day of the current financial year for e.g., 1-4-2017 will be displayed

by default, which can be changed as per requirement.

 Enter the Tally Vault Password if required.

 Press Y or Enter to accept and save.

 CREATION OF LEDGER

 Go to Gateway of Tally > Accounts Info > Ledgers > Create

 Enter the Name for the ledger you want to create such as purchase, sales, state tax, central tax,

integrated tax, stock item names etc.

 Select the appropriate group to which such ledger belongs for example state tax under duties and

taxes group.

 Enter the other related information required and press Y or Enter to accept and save.
  .

 After having done the above 3 steps, you can start entering accounting entries in Tally. For this, Go

to Gateway of Tally >Accounting Vouchers. There are many accounting Vouchers in Tally such as

Payment, Receipt, Contra, Sales, Purchase, etc. Choose the relevant Voucher and start passing the

accounting entries.

Ledger Grouped Under In tally As per accounting classification

Tea Expense Indirect Expense Indirect Expense

Purchase A/c Purchase Account Direct Expense

ICICI Bank Loan Secured loan Liabilities

Furniture Fixed Asset Fixed Asset

Customer A Sundry Debtors Debtor

Supplier B Sundry creditors Creditor

Commission received Indirect Income Indirect Income

 VOUCHER TYPES IN TALLY.ERP 9:

There are 18 vouchers created in Tally.ERP 9, which is divided into two parts:
1. Accounting Vouchers
2. Inventory Vouchers

a) ACCOUNTING VOUCHER:

All entries which you made in these given accounting vouchers are effect on your current accounting of your
business.

F4: Contra-> Used for cash and bank entries and also fund transfer from one bank to another.
F5: Payment ->Used for expenditure and payment to parties by cheque or cash.
F6: Receipt -> Used for income and received amount from the parties by cheque and cash.
F7: Journal -> Used for adjustable and transferable entries.
F8: Sales -> Used for sales entries and income
F9: Purchases ->Used for purchased entry and expenses.
Ctrl+F8: Credit Note -> Used for sales returns entries.
Ctrl+F9: Debit Note-> Used for purchases returns entries.
F10: Reverse Journal: Used for rectifying any wrong entries. (Non Accounting Voucher)
Ctrl+F10: Memo (Memorandum): Used for memorize any entry in tally. (Non-Accounting Voucher)

b) INVENTORY VOUCHERS:

These vouchers are effect on inventory reports in the business. All entries which you made in these
inventory vouchers are effect on your stock register.

ALT+F4: Purchases Order Voucher: Used to give purchases order to party.

ALT+F5: Sales Order Voucher: Used to receive sales order from customer.
ALT+F9: Receipt Note Voucher: Used for recording goods received.
ALT+F8: Delivery Note: Used for recording goods delivered to a customer.
ALT+F6: Rejections Out: Used for records goods that are rejected and returned to a supplier.
CTRL+F6: Rejections In: Used to record goods that are rejected and returned back by the customer.
ALT+F7: Stock Journal Voucher: Used to record stock transfers from one location to another
Alt+F10: Physical Stock: Used for recording actual stock physically verified or counted
J. CONCLUSION

Working under CA keyur Bataviya , derived so many opportunities to learn something new &
challenging. I took the things during my internship very seriously and accomplished them. I could
really convert my basic/normal skills into the professional one. I could apply my bookish concepts on
actual daily tasks in the best possible manner on order to achieve my tasks.

My internship really helped me to polish my communication & presentation skills. Interacting with
so many people at an office level with the view to learn from their experiences helped me in building
my confidence. From working on receipt filing, GST return filing, creating different voucher helped
me to increase my knowledge at that particular work . Meeting with the employees of the company,
listening their discussions, their comments, their new & innovative ideas had changed my perception
about corporate world.