33259ipcc Paper7A PM Rev Ipages

PRACTICE MANUAL
Intermediate (IPC) Course
PAPER: 7A
INFORMATION TECHNOLOGY
(Revised Syllabus Relevant from November, 2014
Examination Onwards)
BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
The Institute of Chartered Accountants of India
This practice manual has been prepared by the faculty of the Board of Studies. The objective
of the practice manual is to provide teaching material to the students to enable them to obtain
knowledge and skills in the subject. In case students need any clarifications or have any
suggestions to make for further improvement of the material contained herein, they may write
to the Director of Studies.
All care has been taken to provide interpretations and discussions in a manner useful for the
students. However, the practice manual has not been specifically discussed by the Council of
the Institute or any of its Committees and the views expressed herein may not be taken to
necessarily represent the views of the Council or any of its Committees.
Permission of the Institute is essential for reproduction of any portion of this material.
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

All rights reserved. No part of this book may be reproduced, stored in retrieval system, or
transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without prior permission in writing from the publisher.
Revised Edition
April, 2014
Website
www.icai.org
E-mail
[email protected]
Committee /
Department
Board of Studies
ISBN No.
Price
Published by
The Publication Department on behalf of The Institute of

Chartered Accountants of India, ICAI Bhawan, Post Box No. 7100,
Indraprastha Marg, New Delhi 110 002
Printed by
ii
A WORD ABOUT PRACTICE MANUAL

The impact of Information Technology on several aspects of accounting profession and
practice has been pronounced over the last three decades. The revolutionary
developments of various IT tools and techniques have a far reaching impact on the
organizations. The survival and the growth of a dynamic profession such as Chartered
Accountancy depends, to a large extent, on understanding fundamentals of Business
Information Systems, Business Process Automation and Telecommunication and
Networking to face the emerging challenges in this globalized competitive business
environment.
Due to prompt world of Information and Communication Technologies, the Institute felt an
urgent need to relook the syllabus of IT related papers separately and hence the syllabus
of Information Technology has been revised with a view to rationalize the same in the
light of recent technological developments by making necessary modifications therein.
The paper provides a conceptual knowledge of how Business Process Management and
contemporary Information Systems are closely interfaced with IT to provide the required
Business Process Automation for enterprises. The knowledge acquired by the student
through the study of the course entitled Information Technology" will be very helpful in
the current dynamic business scenario.
This Practice Manual has been designed with the need of home-study and distancelearning students in mind. Such students require full coverage of the syllabus topics, and
also the facility to undertake extensive question practice. The main aim of this Practice
Manual is to provide guidance as to the manner of writing an answer in the examination.
The main features of this Practice Manual are as follows:
Concepts in Brief: Important definitions, concepts and points have been given on
each topic for quick recapitulation in accordance with the study material.
Questions: Numerous questions are incorporated for the purpose of practice

questions. Students are expected to attempt the questions and then compare their
answers with the answers provided in the manual in order to improve their
presentation in the examination.
Assignment: Exercises have been given at the end of each chapter for independent
practice.
iii
It is also noteworthy that all the questions provided in the Practice Manual have been
framed by the faculty of Board of Studies as no examination has been conducted till date
based on the revised syllabus. Accordingly, the matrix showing chapter-wise distribution
of past examination questions with marks has not been given.
In case you need any further clarification/guidance, please send your queries at
[email protected]/[email protected].
Happy Reading and Best Wishes!
iv
CONTENTS
INFORMATION TECHNOLOGY
CHAPTER 1
Business Process Management & IT
1.1 1.19
CHAPTER 2
Information Systems and IT Fundamentals
2.1 2.20
CHAPTER 3
Telecommunication and Networks
3.1 3.31
CHAPTER 4
Business Information Systems
4.1 4.20
CHAPTER 5
Business Process Automation through Application

Software
5.1 5.9

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PRACTICE MANUAL

Intermediate (IPC) Course

The Institute of Chartered Accountants of India

THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

The Publication Department on behalf of The Institute of

The Institute of Chartered Accountants of India

A WORD ABOUT PRACTICE MANUAL

Questions: Numerous questions are incorporated for the purpose of practice

The Institute of Chartered Accountants of India

Happy Reading and Best Wishes!

The Institute of Chartered Accountants of India

Business Process Management & IT

Information Systems and IT Fundamentals

Telecommunication and Networks

Business Information Systems

Business Process Automation through Application

The Institute of Chartered Accountants of India

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