PROFESSIONAL TRAINING REPORT

A Report Submitted to the Bharathiar University in partial fulfillment of the

requirements for the Award of the Degree of

BACHELOR OF COMMERCE WITH PROFESSIONAL ACCOUNTING

Submitted By
SANDHYA S
(22BPA528)

Under the Guidance of

Dr. P ARUN PRAKASH
M.Com.,MBA(FINANCE).,M.Phil.,Ph.D
Assistant Professor

DEPARTMENT OF COMMERCE WITH PROFESSIONAL ACCOUNTING

PSG COLLEGE OF ARTS & SCIENCE

An Autonomous College - Affiliated to Bharathiar University

Accredited with ‘A++’ Grade by NAAC (4th Cycle)
College with Potential for Excellence
(Status awarded by the UGC)
Star College Status Awarded by DBT - MST
An ISO 9001:2015 Certified Institution
Coimbatore - 641 014, India.

MAY 2025
ACKNOWLEDGEMENT
 ACKNOWLEDGEMENT

I take this opportunity to extend my gratitude to Thiru.L.Gopalakrishnan, Managing

Trustee, PSG College of Arts & Science for providing me an opportunity to work in the real time
environment.
I am also thankful to Dr.T.Kannaian MSc., MTech., Ph.D., Secretary PSG college of
Arts & Science for his motivation and encouragement to complete the Professional Training.

I am greatly indebted to Principal Incharge Dr.M Senguttuvan MSc., Ph.D., for providing
all facilities for carrying out this training with the availability of resources needed for my study.
My heartfelt thanks to the Vice Principal (Student affairs) , Dr. M. Umarani M.Com.,
MPhil.,PhD for her encouragement and valuable support rendered during the study period.

I wish to express my deepest sense of gratitude to Dr.G.Sugunavalli

M.Com.,MPhil.,PGDCA.,Ph.D., Associate Professor & Head I/c Department of Commerce with
Professional Accounting, PSG College of Arts & Science, for her advice, support and inspiring
guidance throughout the Professional Training.

I wish to express my deepest sense of gratitude for the invaluable support and guidance
Dr.P.ARUN PRAKASH M.Com.,MBA(FINANCE).,M.Phil.,Ph.D., Assistant Professor,
Department of Commerce with Professional Accounting, PSG College of Arts & Science.

I express my gratitude to the Staff members of the Department of Commerce with

Professional Accounting, PSG College of Arts & Science, for their support.

I am deeply indebted to CA. SRINIVASAN Firm Chartered Accountant for giving me an

opportunity to undergo the training at their office. I also thank all the staff members & Articled
assistants of the firm for their support and valuable guidance.

I thank my parents who have always supported and encouraged me to do my best in all
matters of life and I cannot finish without thanking the almighty who spread over everywhere.
DECLARATION
 DECLARATION

I SANDHYA S (22BPA538) hereby declare that the Professional Training Report submitted to the
Bharathiar University, in partial fulfilment of the requirements for the award of the Degree of
Bachelor of Commerce with Professional Accounting is a record of original training work done by
me during the period June 2024- March 2025 under the supervision and guidance of Dr. P ARUN
PRAKASH M.Com.,MBA(FINANCE).,M.Phil.,Ph.D., Assistant Professor, Department of
Commerce with Professional Accounting, PSG College of Arts & Science and it has not formed the
basis for the award of any Degree / Diploma / Associateship / Fellowship or other similar work to any
candidate in any University.

Signature of the Candidate

CERTIFICATE OF COMPLETION
CERTIFICATE
 CERTIFICATE

This is to certify that the Professional Training Report submitted to the Bharathiar
University, in Partial fulfilment of the requirements for the award of the Degree of Bachelor of
Commerce with Professional Accounting is a record of original training work done by SANDHYA S
(22BPA538) during the period June 2024 – March 2025 in Department of Commerce with
Professional Accounting, PSG College of Arts & Science, Coimbatore – 14, affiliated to Bharathiar
University under my supervision and guidance and this Professional Training Report has not formed
the basis for the award of any Degree / Diploma / Associateship / Fellowship or other similar work to
any candidate of any University.

Signature of the Guide​ Countersigned

Head of the Department

Viva Voce on​

Internal Examiner​ External Examiner

TABLE OF CONTENTS
 TABLE OF CONTENTS

CHAPTER
CHAPTER PAGE No.
NO

1 Introduction to Auditing 1-5

2 Profile of the Firm 6

3 An Overview of Work Done 7-20

Work Done and Duties Performed

4 21-27

5 Conclusion 28

Bibliography
CHAPTER I

INTRODUCTION TO AUDITING
CHAPTER II

PROFILE OF THE FIRM

CHAPTER III

AN OVERVIEW OF WORK DONE

CHAPTER IV

WORK DONE AND DUTIES

PERFORMED
CHAPTER V

CONCLUSION
BIBLIOGRAPHY
 BIBLIOGRAPHY

Books:

The Institute of Chartered of Accounts of India, “Auditing & Ethics”, April 2023, The Publication &
CDS Directorate on behalf of ICAI

Sana, “Auditing– Principles and Practices”, 1st Edition, McGraw– Hill Publishing Co Ltd, New Delhi,
2017.

Dinkar Pagare, “Principles and Practices of Auditing”, 12th Revised Edition, Sultan Chand &
Sons, New Delhi, 2020

Website:

http://cleartax.in/s/pan-card

https://blogs.tallysolutions.com

https://unacdemy.com/audit-of-banking

https://coporatefinanceinstitue.com/bank-reconciliation-statement

https://indiafilings.com/form-3cb-3cd

http://cleartax.in/s/company-registration
 CHAPTER –I
INTRODUCTION TO AUDITING

1.1 INTRODUCTION

An audit is performed to assess the accuracy and reliability of information. It involves

reviewing financial records, including books of accounts, vouchers, and supporting documents,
to identify and prevent errors. The auditor also evaluates the effectiveness of internal control
systems to determine the audit's scope.

The primary objective of an audit is to verify the financial position shown in the balance sheet
and profit and loss account. Through this process, the auditor offers an opinion on whether the
financial statements comply with applicable standards and regulations.

The term "audit" originates from the Latin word "audire," meaning "to hear." Initially, audits
focused only on cash, with the auditor’s role being to ensure that cash receipts and payments
were properly accounted for. Over time, the scope of audits has broadened to encompass a full
review of all financial records. The fundamental purpose remains to confirm the financial
information presented in the balance sheet and profit and loss account.

In essence, an audit is both an investigation and a report. The process involves detailed
examination and verification, continuing until the auditor has gathered sufficient information to
report in accordance with their terms of engagement. Auditing ensures the authenticity of
financial accounts through an independent review, confirming the accuracy and reliability of the
provided information.

1
1.2 SCOPE OF AUDITING

The scope of an audit is the determination of the range of the activities and the period of
records that are to be subjected to an audit examination. The auditor can determine the scope of
an audit of financial statements in accordance with the requirements of legislation, regulations
or relevant professional bodies. It can be briefed as follows:

●​ The audit should be so organized so as to cover all aspects of the financial statements of an
entity being audited;

●​ The auditor should obtain reasonable assurance as to whether the information contained in
the underlying accounting records and other source data is reliable and sufficient as the
basis for preparation of the financial statements;

●​ The Auditor while forming an opinion should decide whether the relevant information is
properly communicated in the financial statements;

●​ The auditor assesses the reliability and sufficiency of the information contained in the
underlying accounting records and other source data by minutely studying and evaluating
the accounting system and internal controls;

●​ Further, the auditor determines whether the relevant information is properly communicated
and disclosed by comparing the financial statements with the underlying accounting records
and other source data;

●​ The auditor has to satisfy himself with the authenticity of the financial statements and report
that they exhibit a true and fair view of the state of affairs of the concern.

●​ The Auditor is also not expected to undertake responsibilities and perform functions which
fall outside the scope of his competence.

●​ The auditor has to inspect, compare, check, review, scrutinize the vouchers supporting the
transactions and examine correspondence, minute books of shareholders, directors,
Memorandum of Association and Articles of association etc.,

2
1.3. THE IMPORTANCE OF AUDITING

1. ENSURES ACCURACY OF FINANCIAL STATEMENTS

Auditing helps verify the accuracy of financial records and ensures that the financial statements
reflect the true financial position of an organization. This process involves checking transactions,
verifying balances, and confirming the legitimacy of financial data.

2. BUILDS TRUST AND CREDIBILITY

An independent audit increases the credibility of an organization’s financial statements.

Stakeholders, such as investors, creditors, and regulators, rely on audited financial statements to
make informed decisions. The auditor's opinion provides assurance that the information is
reliable and trustworthy.

3. PREVENTS AND DETECTS FRAUD

Auditors examine internal controls, processes, and records to detect and prevent fraudulent
activities. By identifying discrepancies, weaknesses, or unusual transactions, audits help
organizations safeguard their assets and protect against financial misconduct.

4. IMPROVES INTERNAL CONTROLS

Through the audit process, internal controls are evaluated for effectiveness. Auditors often make
recommendations for improvements, which help the organization strengthen its operational and
financial processes, ensuring better risk management and financial governance.

5. COMPLIANCE WITH LEGAL AND REGULATORY REQUIREMENTS

Auditing ensures that an organization complies with relevant financial reporting standards, laws,
and regulations. This is particularly important for public companies, which are required to have
their financial statements audited in order to provide transparency to the public and government
authorities. reflect the true financial position of an organization. This process involves checking
transactions, verifying balances, and confirming the legitimacy of financial data.

3
1.4. LIMITATIONS OF AUDITING

1. TIME CONSTRAINTS

The time available for conducting an audit is often limited, preventing auditors from performing
in-depth examinations or addressing all potential concerns.

2. RESOURCE LIMITATIONS

Audits may be constrained by limited staff, budget, or tools, impacting the thoroughness of the
audit process.

3. HUMAN ERROR

Auditors, being human, can make mistakes or overlook key details, which may compromise the
accuracy of their findings.

4. INHERENT RISK

There are always inherent risks in auditing, such as the possibility of missing material
misstatements or undetected fraud.

5. MANAGEMENT BIAS

Auditors may face pressure from management or stakeholders, leading to potential conflicts of
interest or a lack of objectivity during the audit.

6. LIMITATIONS OF EVIDENCE

Auditors rely on the evidence available to them, but some information may be incomplete,
unreliable, or difficult to verify.

7. FRAUD DETECTION CHALLENGES

Auditors may not be able to identify all instances of fraud, particularly if it is deliberately
concealed or sophisticated.

8. LEGAL CONSTRAINTS

Certain legal restrictions can limit auditors' ability to access certain documents, information, or
to investigate specific issues fully.

4
1.5. ASPECTS TO BE COVERED IN AN AUDIT

The principles aspects to cover in an audit of the financial statements are the following:

1.​ An examination of the system of accounting and internal control to ascertain whether it
is appropriate for the business.

2.​ Reviewing the system and procedures to find out whether they are adequate and
comprehensive and incidentally whether material inadequacies and weaknesses exist to
allow frauds and errors going unnoticed.

3.​ Checking the arithmetical accuracy of the books of accounts by verification of postings,
balances, etc.

4.​ Verification of the authenticity and validity of transactions entered into by making an
examination of the entries in books of accounts with relevant supporting documents.

5.​ Ascertaining that a proper distinction has been made between items of capital and
revenue nature and that the amounts of various items of income and expenditure are
adjusted in corresponding to the accounting period.

6.​ Comparison of the balance sheet and profit and loss account or other statements with the
underlying record in order to see that they are in accordance.

7.​ Verification of the title, existence and value of the assets appearing in the balance sheet.

8.​ Verification of the liabilities stated in the balance sheet.

9.​ Checking the result shown by the profit and loss and to see whether the results shown are
true and fair.

10.​Reporting to the appropriate person/body whether the statements of account examined do

reveal a true and fair view of the state of affairs and of the profit and loss of the
organization.

5
 CHAPTER II
PROFILE OF THE FIRM

SENGOTTAIYAN & CO.

Name of Firm Sengottaiyan & co

Registration No. 0005290S

Name of Auditor R.RAMYA

M.No 211232

Accounting, Auditing, Tax Laws ( Direct &

Area of Services Indirect ), Company Laws, Project Financing
Management, Consultancy Services & other
allied services.

3/218, Appiyapalayam, K.K Nagar,

Address
Perumanallur, Tamil Nadu 641666

Contact No +91 9047498738

6
 CHAPTER –III
AN OVERVIEW OF WORK DONE

3.1. VOUCHING
Vouching refers to the process of verifying the authenticity and accuracy of financial
transactions by examining supporting documentation. Auditors perform vouching to ensure that
the transactions recorded in the financial statements are legitimate, properly authorized, and
backed by appropriate evidence, such as invoices, receipts, contracts, or bank statements. The
goal is to trace the entries in the accounting records back to the original source documents to
confirm that the recorded transactions actually occurred and are correctly represented. This
process helps auditors detect any potential errors, fraud, or misstatements in the financial
statements.

Objectives of vouching

The primary objectives of vouching in auditing are to ensure the accuracy, authenticity,
and reliability of financial transactions recorded in the accounting records. Through vouching,
auditors verify that transactions are supported by legitimate source documents, such as invoices
or receipts, and that the amounts and details are correctly recorded in the financial statements. It
helps detect and prevent fraud by ensuring that all entries are valid and authorized, and it ensures
compliance with relevant accounting standards and regulations.Ultimately, vouching provides
assurance that financial records are accurate, legitimate, and reflect true financial activity.

Process of vouching

1.​ Identify the Transaction to Be Verified​

The auditor selects a transaction from the financial records (e.g., a payment entry or a
sale) to verify.
2.​ Examine the Supporting Documents​
The auditor examines the source documents related to the transaction, such as invoices,
receipts, contracts, purchase orders, bank statements, or any other relevant documentation
that supports the entry in the books.
7
 3.​ Trace to the Accounting Records​
The auditor traces the details of the transaction (amount, date, nature, etc.) from the
source document to the corresponding entry in the accounting books (e.g., general ledger
or subsidiary ledger)
4.​ Verify Accuracy and Completeness​
The auditor checks if the amount recorded in the books matches the amount on the
supporting document. Additionally, the auditor ensures that the transaction is recorded in
the correct period, with proper authorization, and follows company policies and
procedures.
5.​ Evaluate Compliance​
The auditor assesses whether the transaction complies with relevant laws, regulations,
and accounting standards (such as GAAP or IFRS).
6.​ Document Findings​
Any discrepancies, errors, or unusual findings are documented by the auditor for further
investigation or reporting.
7.​ Form an Opinion​
Based on the vouching process, the auditor forms an opinion about the accuracy and
reliability of the financial records, which may influence the overall audit opinion.

TYPES OF VOUCHING

●​ Vouching for Assets: This involves verifying the existence, ownership, and valuation of
assets such as cash, inventory, and fixed assets.
●​ Vouching for Liabilities: This includes verifying the existence and accuracy of liabilities
such as loans, payables, and provisions.
●​ Vouching for Income: This involves verifying the recognition, measurement, and
disclosure of income in accordance with accounting standards.
●​ Vouching for Expenses: This includes verifying the validity, authorization, and
classification of expenses.

8
3.3. GOODS AND SERVICE TAX
GST is known as the Goods and Services Tax. It is an indirect tax which has replaced
many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and
Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st
July 2017.

In other words, Goods and Service Tax (GST) is levied on the supply of goods and
services. Goods and Services Tax Law in India is a comprehensive, multi-stage,
destination-based tax that is levied on every value addition. GST is a single domestic indirect tax
law for the entire country.

THE COMPONENTS OF GST

There are three taxes applicable under this system: CGST, SGST & IGST.

●​ CGST: It is the tax collected by the Central Government on an intra-state sale (e.g., a
transaction happening within Maharashtra)
●​ SGST: It is the tax collected by the state government on an intra-state sale (e.g., a
transaction happening within Maharashtra)
●​ IGST: It is a tax collected by the Central Government for an inter-state sale (e.g.,
Maharashtra to Tamil Nadu)

9
3.4. GSTR-1
The Goods and Services Tax Return 1 is a document that each registered tax payer needs
to file every month/quarter. It must contain the details of all sales and supply of goods and
services made by the taxpayer during the tax period. However this return is not applicable to
composition vendors, non-resident foreign taxpayers and those with a Unique Identification
Number. The due date for filing the GSTR 1 return will be the 13th of the consecutive month in
the succeeding quarter. However, the taxpayers can continue to submit invoices every month.

PREREQUISITES FOR FILING GSTR-1

It must be a registered taxpayer under the GST with a 15-digit PAN-based GSTIN.It need
to keep detailed invoices with unique serial numbers for all of your transactions, including
intra-state as well as inter-state transactions, and business-to-business (B to B) as well as retail
(B to C) sales. This also includes transactions associated with exempted and non-GST supplies,
and stock transfers between your business locations in different states.
Either need an OTP from your registered phone to verify your return using an EVC
(electronic verification code) or a digital signature certificate (of class 2 or higher). You can also
file your GST returns using an Aadhar based e-sign.
A valid and genuine goods and services tax identification number (GSTIN). The user ID
and password to sign into the portal.A valid digital signature certificate (DSC) unless you can
e-sign the form as per your categorisation as a supplier.

STEPS FOLLOWED IN GSTR-1 FILING

●​ Step 1 – Visit the GST Portal and log in

●​ Step 2 – Click the “Services” tab
●​ Step 3 – Select “Returns” and then “Returns Dashboard”
●​ Step 4 – Select the relevant Financial Year and Return Filing Period from the drop-down
menu
●​ Step 5 – Click “Search”

10
 ●​ Step 6 – Under the first search result – “Details of outward supplies of goods or
services”, select “Prepare Online”. Select “Prepare Offline” if your number of invoices is
more than 500 7.
●​ Step 7 – Fill in the sections
●​ Step 8 – After entering all the details, click on 'Save' to save the data entered.
●​ Step 9 – Click on 'Preview' to review the details entered and make corrections if
necessary.
●​ Step 10 – Click on 'Proceed to File' and select the 'Checkbox' to declare that the
information provided is correct.
●​ Step 11 – Click on 'File GSTR-1 with DSC' (Digital Signature Certificate) or 'File
GSTR-1 with EVC (Electronic Verification Code) to file the return.

3.5. GSTR-2B
GSTR-2B is an auto-generated Input Tax Credit (ITC) statement that provides details of
eligible and ineligible ITC for a given tax period. GSTR-2B is static and does not change once
generated. This is a critical audit document for ensuring ITC accuracy and GST compliance.
Businesses must regularly reconcile GSTR-2B with GSTR-3B and purchase records to avoid tax
liabilities. Auditors should focus on mismatches, ineligible ITC, and supplier compliance to
prevent financial risks.

11
IMPORTANCE OF GSTR-2B

●​ Accuracy of ITC Claims: Ensures that ITC claimed in GSTR-3B matches with
GSTR-2B.
●​ Eligibility of ITC: Identifies blocked credits, ineligible ITC, and mismatches with
purchase records.
●​ Supplier Compliance: Ensures vendors have correctly reported invoices in their GSTR-1.
●​ Reconciliation with Books & GSTR-3B: Helps detect fraud, missing credits, or errors.

RECONCILIATION OF GSTR-2B IN AUDIT

●​ Step 1: Compare ITC claimed in GSTR-3B vs. ITC available in GSTR-2B.

●​ Step 2: Verify invoice details in GSTR-2B vs. purchase register.
●​ Step 3: Identify mismatches, ineligible ITC, and missing invoices.
●​ Step 4: Ensure suppliers have filed correct GSTR-1 and paid GST to the government.
●​ Step 5: Make necessary adjustments in future GSTR-3B filings.

IMPACT OF GSTR-2B ON AUDIT AND COMPLIANCE

●​ Incorrect ITC claims lead to penalties, interest, and tax notices.

●​ Non-reconciliation with GSTR-3B can cause excess tax payments or ITC reversals.
●​ Frequent mismatches indicate potential fraudulent transactions or vendor
non-compliance.

3.6. GSTR-3B
Every person who is registered under GST must file GSTR-3B. However, the following
registrants do not have to file GSTR-3B.

●​ Taxpayers registered under the Composition Scheme

●​ Input service distributors
●​ Non-resident suppliers of OIDAR service
●​ Non-resident taxable persons.

12
LATE FEE & PENALTY

A late fee is charged for filing GSTR-3B of a tax period after the due date. It is levied as follows:
●​ Rs. 50 per day of delay
●​ Rs. 20 per day of delay for taxpayers having nil tax liability for the month

In case the GST dues are not paid within the due date, interest at 18% per annum is payable on
the amount of outstanding tax to be paid.

RECONCILIATION WITH OTHER GST RETURNS

Auditors should verify whether the details in GSTR-3B align with:

●​ GSTR-1 (Outward supplies return) to ensure reported sales and tax liabilities are
accurate.
●​ GSTR-2B (Auto-drafted ITC statement) to confirm ITC claims are valid and match
supplier filings.
●​ Books of accounts and purchase records to identify any mismatches that could impact
tax payments.

One of the key areas of audit in GSTR-3B is ITC claims. Auditors should verify whether
ITC availed aligns with GSTR-2B and purchase records. Any ineligible or excess ITC claims can
lead to tax demands, penalties, and interest payments. Proper reconciliation of ITC is essential to
maintain compliance.

GSTR-3B is a crucial return for tax compliance and audit validation. Proper
reconciliation with GSTR-1, GSTR-2A/2B, and financial books ensures accuracy, prevents
penalties, and maintains GST compliance. Auditors should regularly review ITC claims, tax
liabilities, and cash ledger adjustments to avoid legal issues.

13
3.7. PAN CARD APPLICATION PROCESS

STEP BY STEP PROCESS

The government has made provisions for applicants to apply for PAN through the Income
tax PAN Services Unit of NSDL. Follow these easy steps to apply for a PAN online:

●​ Step1: Open The NSDL site to apply for a new PAN.

●​ (https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html ) to apply for a
new PAN
●​ Step 2: Select the Application type – New PAN for Indian citizens, foreign citizens or for
change/correction in existing PAN data.
●​ Step 3: Select your category – individual, associations of persons,body of individuals, etc.
●​ Step 4: Fill in all the required details like name, date of birth, email address and your
mobile number in the PAN form.
●​ Step 5: On submitting the form, you will get a message regarding the next step.
●​ Step 6: Click on the “Continue with the PAN Application Form” button.
●​ Step 7: You will be redirected to the new page where you have to submit your digital
e-KYC.
●​ Step 8: Select whether you need a physical PAN card or not and provide the last four
digits of your Aadhaar number.
●​ Step 9: Enter your personal details, contact and other details in the next part of the form
●​ Step 10: Enter your area code, AO Type and other details in this part of the form. You
can also find these details in the tab below.
●​ Step 11: The last part of the form is the document submission and declaration.
●​ Step 12: Enter the first 8 digits of your PAN card to submit the application. You will get
to see your completed form. Click Proceed if no modification is required.
●​ Step 13: Select the e-KYC option to verify using Aadhaar OTP. For Proof of Identity,
Address and Date of Birth, select Aadhaar in all fields and click on Proceed to continue.
●​ Step 14: You will be redirected to the payment section where you have to make payment
either through demand draft or through net banking/debit/credit card.
●​ Step 15: A payment receipt will be generated on successful payment. Click on Continue.

14
 ●​ Step 16: Now for Aadhaar Authentication, tick the declaration and select “Authenticate”
option.
●​ Step 17: Click on “Continue with e-KYC” after which an OTP will be sent to the mobile
number linked with Aadhaar. Step18: Enter the OTP and submit the form.
●​ Step 19: Now click on “Continue with e-Sign” after which you will have to enter your
12-digit Aadhaar number. An OTP will be sent to the mobile number linked with
Aadhaar.
●​ Step 20: Enter OTP and submit the application to get the Acknowledgement slip in pdf
having your date of birth as the password in DD/MM/YYYY format.

DOCUMENTS TO BE SUBMITTED

(a) Photocopy of any one of the below document need to be submitted along with the PAN
application:

●​ Aadhaar Card issued by Unique Identification Authority of India (UIDAI)

●​ Voter ID card
●​ Passport
●​ Driving License
●​ Post office passbook carrying the address of the applicant
●​ Allotment letter issued by the state or central government (should not be more than three
years old)
●​ Property registration document

(b) Self-attested copy of any one of the below documents (not more than three months old)

●​ Electricity bill and Water bill

●​ Proof of gas connection (card/book with the latest bill)
●​ Landline or broadband connection bill

15
3.9. IT COMPUTATION

IT computation using WINMAN software

Winman CA-ERP is a comprehensive software solution designed to streamline income tax

computations, return preparations, and e-filing processes for professionals in India.

26AS and AIS

Form 26AS is an annual consolidated tax statement that provides details of tax deducted at
source (TDS), tax collected at source (TCS), and other prepaid taxes associated with a taxpayer's
PAN. The Annual Information Statement (AIS) offers a comprehensive view of financial
transactions reported to the Income Tax Department during a financial year. Winman CA-ERP
facilitates the import and reconciliation of data from these statements, ensuring that all reported
incomes and taxes are accurately reflected in the taxpayer's records.​

HEADS

The Income Tax Act classifies taxable income into five heads:​

1.​ Income from Salaries: Earnings from employment, including basic salary, allowances,
and perquisites.​
2.​ Income from House Property: Rental income from owned properties.​
3.​ Profits and Gains from Business or Profession: Income derived from business operations
or professional services.
4.​ Capital Gains: Profits from the sale of capital assets like property or stocks.​
5.​ Income from Other Sources: Residual income such as interest, dividends, or lottery
winnings.​

Winman CA-ERP allows users to input data under each of these heads, ensuring comprehensive
and accurate income reporting.​

16
INCOME TAX COMPUTATION

The software automates the computation of taxable income by:

●​ Aggregating income from all heads.​

●​ Applying eligible deductions under Chapter VI-A (e.g., Section 80C for investments,
Section 80D for medical insurance).​
●​ Calculating tax liability based on applicable slab rates.​

This automation minimizes manual errors and ensures compliance with the latest tax laws.​

17
Winman CA-ERP Features

Winman CA-ERP offers a suite of features tailored for tax professionals

●​ User-Friendly Interface: Designed to be as intuitive as Excel, facilitating easy data entry

and navigation.​
●​ Integrated Modules: Combines Income Tax computation, ITR preparation, audit reports,
trial balance, and balance sheet preparation in a single platform.​
●​ Data Portability: Ensures seamless transfer of data between modules, reducing
redundancy and saving time.​
●​ Advanced Features: Includes mass advance tax planning, comparison with previous
years, and more. ​

FILING

The software streamlines the filing process by:​

●​ Auto-Populating ITR Forms: Automatically fills ITR forms based on the computation
sheet and balance sheet data. ​
●​ E-Filing Integration: Facilitates direct e-filing of tax returns and audit forms, ensuring
timely and accurate submissions.

E-VERIFICATION

After filing, taxpayers must verify their returns. Winman CA-ERP supports e-verification
methods, including:​

●​ Aadhaar-Based OTP: Verifying using a one-time password sent to the registered mobile
number linked with Aadhaar.​
●​ Electronic Verification Code (EVC): Generated through methods like net banking or bank
account validation.​

18
3.10. PAYMENT DELAYS FOR MSMED

The Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006 mandates that
payments to Micro and Small Enterprises (MSEs) be made within a specified period to ensure
their financial stability. Failure to adhere to these timelines results in penalties for the buyers.
Below is a detailed explanation of the penalty provisions, referencing the Reserve Bank of
India's (RBI) bank rates.​

PAYMENT TIMELINE AS PER MSMED ACT

●​ According to Section 15 of the MSMED Act, 2006, a buyer must make payments to an
MSME supplier within 45 days from the date of acceptance or the deemed acceptance of
goods/services.
●​ If no specific payment period is agreed upon in writing, then payment must be made
within 15 days from the date of delivery of goods or services.

PENALTY ON DELAYED PAYMENTS

If a buyer fails to make payment within 45 days, they are liable to pay interest on the outstanding
amount as follows:

a)Interest Rate on Delayed Payments

●​ The interest rate is three times the bank rate notified by the Reserve Bank of India (RBI).
●​ The RBI bank rate is the rate at which RBI lends money to commercial banks.
●​ As of the latest update, if the RBI bank rate is 6.75%, the penalty interest rate would be:
6.75%×3 = 20.25% per annum

b) Compound Interest Calculation

●​ The interest is compounded monthly and is calculated on the overdue amount from the
date of the default.
●​ If the delay extends, the penalty keeps compounding every month, increasing the liability.

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IMPACT OF PENALTY ON FINANCIAL PERFORMANCE

a) On the Buyer

●​ Higher Financial Burden: Delayed payments lead to high compound interest costs and
legal penalties.
●​ Tax Liabilities: Since penalty interest is not deductible, the overall tax burden increases.
●​ Legal Risks: Prolonged payment delays may result in court proceedings and damage the
buyer's reputation.

b) On the MSME Supplier

●​ Improved Liquidity: The penalty ensures MSMEs get paid faster, improving cash flow.
●​ Reduced Credit Dependence: Regular payments reduce the need for bank loans and
overdrafts.
●​ Stronger Business Sustainability: Timely payments help MSMEs grow and reinvest in
their operations.

The MSMED Act, 2006 and RBI’s penalty provisions play a crucial role in ensuring
timely payments to MSMEs. Delayed payments attract a penalty of three times the RBI bank
rate, which is compounded monthly, making non-compliance costly for buyers. MSMEs should
proactively track payments and use legal avenues like MSME Samadhan to recover overdue
amounts. Businesses must adopt strong financial planning and payment discipline to avoid legal
and financial repercussions.

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 CHAPTER IV

WORK DONE AND DUTIES PERFORMED

S.No Date Particulars

1 24-06-24 Discussion Regarding Professional Training

2 25-06-24 Enumerated to various files of the client

3 26-06-24 Overview on basic accounting concepts and audit concepts

4 27-06-24 Verified various books maintained by the clients
5 28-06-24 Vouching- Analyzing documents

6 29-06-24 Vouching- Analyzing documents

7 01-07-24 Vouching- Analyzing documents

8 02-07-24 Vouching- Analyzing documents

9 03-07-24 Vouching- Analyzing documents

10 04-07-24 Vouching of purchase bills

11 05-07-24 Vouching of purchase bills
12 06-07-24 Vouching of sales invoice

13 08-07-24 Vouching of sales invoice

14 09-07-24 Introduction to income tax return filing

15 10-07-24 Introduction to income tax return filing

16 11-07-24 Introduction to WINMAN software

17 12-07-24 Introduction to WINMAN software
18 13-07-24 Introduction to WINMAN software
19 15-07-24 IT workings for individuals

20 16-07-24 IT workings for individuals

21 17-07-24 IT workings for individuals

22 18-07-24 IT workings for individuals

21
23 19-07-24 Income tax return filing-80C deduction

24 20-07-24 Income tax return filing-80C deduction

25 22-07-24 Income tax return filing-Individuals

26 23-07-24 Income tax return filing-Individuals

27 24-07-24 Income tax return filing-Individuals

28 25-07-24 IT computation for private ltd. company

29 26-07-24 IT computation for private ltd. company

30 27-07-24 IT computation for private ltd. company

31 29-07-24 IT computation for private ltd. company

32 30-07-24 IT computation for private ltd. company

33 31-07-24 IT computation for individuals

34 01-08-24 Voucher cross checking with physical bills

35 02-07-24 Voucher cross checking with physical bills

36 03-07-24 Voucher cross checking with physical bills

37 05-08-24 Voucher cross checking with physical bills

38 06-08-24 Vouching of purchase bills

39 07-08-24 Vouching of purchase bills

40 08-08-24 Vouching of sales invoice

41 09-08-24 Vouching of sales invoice

42 10-08-24 Introduction to GSTR portal

43 12-08-24 Introduction to GSTR portal

44 13-08-24 Introduction to GSTR portal

45 14-08-24 Introduction to GSTR portal

46 16-08-24 GST- understanding reverse charge mechanism

47 17-08-24 GST- understanding forward charge mechanism

48 19-08-24 Learnt about GSTR-2A

49 20-08-24 Entered few transactions in GSTR portal

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50 21-08-24 Learnt about GSTR-3B

51 22-08-24 Filing of GSTR-1

52 23-08-24 Filing of GSTR-1

53 24-08-24 Filing of GSTR-1

54 26-08-24 Filing of GSTR-1

55 18-09-24 Introduction to MSMED’s

56 19-09-24 Classified MSMED companies and listed them in Excel sheet

57 20-09-24 Calculated interest for payment delays

58 21-09-24 Verification of payment of interest

59 23-09-24 Verification of payment of interest

60 24-09-24 Calculated interest for payment delays
61 25-09-24 Calculated interest for payment delays
62 26-09-24 Detail study of PAN application process in NSDL portal

63 27-09-24 Detail study of PAN application process in NSDL portal

64 28-09-24 Applied for new PAN card for Individual

65 30-09-24 Applied for new PAN card for Individual

66 01-10-24 Applied for new PAN card for Individual

67 03-10-24 PAN- Aadhaar linkage

68 04-10-24 PAN- Aadhaar linkage

69 05-10-24 PAN updation for ITR

70 07-10-24 PAN updation for ITR

71 08-10-24 Sales bill entered in Excel for GSTR-1 filing

72 09-10-24 Sales bill entered in Excel for GSTR-1 filing

73 10-10-24 IT computation in WINMAN software

74 14-10-24 IT computation in WINMAN software
75 15-10-24 Filing of GSTR-1
76 16-10-24 Filing of GSTR-1

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77 19-10-24 Filing of GSTR-1
78 21-10-24 IT computation in WINMAN software
79 22-10-24 IT computation in WINMAN software

80 23-10-24 IT computation in WINMAN software

81 24-10-24 IT computation in WINMAN software

82 25-10-24 Preparation of cash flow statement

83 26-10-24 Preparation of cash flow statement

84 28-10-24 Preparation of cash flow statement

85 29-10-24 Filing of GSTR-1

86 30-10-24 Filing of GSTR-1

87 02-11-24 Filing of GSTR-1

88 04-11-24 Filing of GSTR-1

89 05-11-24 IT computation in WINMAN software

90 06-11-24 IT computation in WINMAN software

91 07-11-24 IT computation in WINMAN software

92 08-11-24 Income tax return filing- 80C deduction

93 04-12-24 BRS verification

84 05-12-24 BRS verification

95 06-12-24 BRS verification

96 07-12-24 BRS verification

97 09-12-24 Vouching of purchase bills

98 10-12-24 Vouching of purchase bills

99 11-12-24 Vouching of purchase bills

100 12-12-24 Vouching of sales invoice

101 13-12-24 Vouching of sales invoice

102 16-12-24 Physical verification of purchase bills

103 17-12-24 Physical verification of purchase bills

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104 18-12-24 Physical verification of sales invoice

105 19-12-24 Physical verification of sales invoice

106 20-12-24 Vouching of purchase bills

107 21-12-24 Vouching of purchase bills

108 23-12-24 Vouching of purchase bills

109 24-12-24 Vouching of purchase bills

110 26-12-24 BRS of assigning company

111 27-12-24 BRS of assigning company

112 30-12-24 BRS of assigning company

113 31-12-24 Filing of GSTR-1

114 02-01-25 Filing of GSTR-1

116 04-01-25 Filing of GSTR-1

117 05-01-25 IT computation in WINMAN software

118 06-01-25 IT computation in WINMAN software

119 07-01-25 IT computation in WINMAN software

120 08-01-25 Sales bill entered in Excel for GSTR-1 filing

121 09-01-25 Filing of GSTR-1

122 10-01-25 Filing of GSTR-1

123 18-01-25 Filing of GSTR-1

124 20-01-25 Filing of GSTR-1

125 21-01-25 Sales bill entered in Excel

126 22-01-25 Sales bill entered in Excel

127 23-01-25 Sales bill entered in Excel

128 24-01-25 Sales bill entered in Excel

129 27-01-25 BRS of assigning company

130 28-01-25 BRS of assigning company

131 29-01-25 Filing of GSTR-1

25
132 30-01-25 Learnt about GSTR-3B

133 31-01-25 Filing of GSTR-1

134 01-02-25 Applied for new PAN card for Individual

135 03-02-25 Filed PAN application and made payment for PAN application

136 04-02-25 Learnt about GSTR-2B

137 05-02-25 Filing of GSTR-1

138 06-02-25 Filing of GSTR-1

139 07-02-25 Filing of GSTR-1

140 08-02-25 Filing of GSTR-1

141 09-02-25 Classified MSMED companies and listed them in Excel sheet

142 10-02-25 Calculated interest for payment delays

143 11-02-25 IT computation in WINMAN software

144 12-02-25 IT computation in WINMAN software

145 13-02-25 IT computation in WINMAN software

146 14-02-25 BRS of assigning company

147 15-02-25 BRS of assigning company

148 17-02-25 BRS of assigning company

149 18-02-25 Computation of Tax Payable – Individuals

150 19-02-25 Computation of Tax Payable – Individuals

151 20-02-25 Computation of Tax Payable – Individuals

152 21-02-25 Computation of Tax Payable – Individuals

153 22-02-25 Entered few transactions in GSTR portal

154 24-02-25 Entered few transactions in GSTR portal

155 25-02-25 Filing of GSTR-1

156 26-02-25 Filing of GSTR-1

157 27-02-25 Filing of GSTR-1

158 28-02-25 Filing of GSTR-1

26
159 01-03-25 Vouching of sales invoice

160 02-03-25 Vouching of sales invoice

161 03-03-35 Physical verification of purchase bills

162 04-03-25 Physical verification of purchase bills

163 05-03-25 Physical verification of sales invoice

164 06-03-25 Physical verification of sales invoice

165 07-03-25 Vouching of purchase bills

166 08-03-25 Vouching of purchase bills

167 10-03-25 Vouching of purchase bills

168 11-03-25 Sales bill entered in Excel for GSTR-1 filing

169 12-03-25 Sales bill entered in Excel for GSTR-1 filing

170 13-03-25 Filing of GSTR-1

171 14-03-25 Filing of GSTR-1

172 15-03-25 Filing of GSTR-1

173 17-03-25 Filing of GSTR-1

174 18-03-25 IT computation in WINMAN software

175 19-03-25 IT computation in WINMAN software

176 20-03-25 IT computation in WINMAN software

177 21-03-25 Classified MSMED companies and listed them in Excel sheet

178 22-03-25 Calculated interest for payment delays

179 24-03-25 Verification of payment of interest

180 25-03-25 Calculated interest for payment delays

181 26-03-25 Calculated interest for payment delays

27
 CHAPTER V
CONCLUSION

The professional training provided hands-on understanding of key accounting processes,

including the preparation of final accounts such as the trading account, profit & loss account, and
balance sheet, along with tax computations and other essential financial statements. Exposure to
various auditing procedures, including vouching, GST compliance, stock audits, and bank
reconciliation, allowed for a connection between theoretical knowledge and real-world practices.
This practical experience not only enhanced understanding of auditing standards but also
highlighted its critical role in maintaining financial transparency and fostering trust in financial
reporting. The training reinforced the importance of attention to detail, compliance, and ethics
within the auditing profession. It has equipped professionals with the necessary skills and
knowledge to face the challenges ahead and pursue a successful career in auditing and
accounting.The training offered valuable insights into the various tasks performed by auditors
and audit firms, while also emphasizing the crucial role of professional accountants and auditors
in businesses, government operations, and society at large.

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