Advanced Information Technology

(AICITSS)

Practice Manual

Board of Studies
The Institute of Chartered Accountants of India
 New Delhi
The objective of this background material is to provide uniform reference material to the students
undergoing Advanced Information Technology under AICITSS.
All attempts have been made to make the discussion simple and comprehensive. Students may
note that the material has been prepared with an objective to help them in acquiring requisite
knowledge and skills in the subject and gain hands on experience.

This is also expected to serve as a source of reference book in their future education and training.
In case students have any suggestions to make for further improvement of the material contained
herein, they may write to Board of Studies, ICAI Bhawan, A-29, Sector–62, Noida. Queries can
also be sent to: [email protected]

All care has been taken to provide the material in a manner useful to the students. However the
material 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.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or
transmitted, in any forms or by any means, electronic, mechanical, photocopying, recording or
otherwise, without prior permission, in writing, from the Institute.

©The Institute of Chartered Accountants of India

E-mail : [email protected]

Website : www.icai.org

Edition : November, 2017

ISBN : 978-81-8441-823-1

Sale Price : 50/-

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, INDIA.

Printed by : Repro India Ltd.

February / 2016 / P1878
 Table of Contents
1. Introduction to Practice Manual ................................................................................................................................................... 1
A. Introduction ............................................................................................................................................................................. 1
B. AICITSS - Advanced IT .......................................................................................................................................................... 1
C. Practice Manual - Organisation .............................................................................................................................................. 1
D. Overview ................................................................................................................................................................................ 2
2. Advanced MS – Excel .................................................................................................................................................................... 3
A. Introduction ............................................................................................................................................................................. 3
B. Chapter 1 : Working with XML ................................................................................................................................................ 3
C. Chapter 2 : Advanced Macros ................................................................................................................................................ 4
D. Chapter 3: Applied Financial Analysis And Forecasting Financial Statements ...................................................................... 4
E. Chapter 4 : Mathematical & Statistical Tools For Financial Analysis...................................................................................... 6
F. Chapter 5 : Application of MS Excel ....................................................................................................................................... 8
Solutions for Case Studies – Advanced MS Excel..................................................................................................................................... 14
A. Chapter 2 : Advances in Macros .......................................................................................................................................... 14
B. Chapter 4 : Mathematical & Statistical Tools For Financial Analysis.................................................................................... 15
C. Chapter 5 : Application of MS Excel ..................................................................................................................................... 17
3. MS – Excel as Audit Tool ............................................................................................................................................................ 22
A. Introduction ........................................................................................................................................................................... 22
A. Useful Functions for Auditing ............................................................................................................................................... 22
B. Formula Auditing .................................................................................................................................................................. 23
C. Data Analysis Using MS Excel ............................................................................................................................................. 24
D. Exercise on Excel as an Audit Tool Part-1 ........................................................................................................................... 24
E. Exercise on Excel as an Audit Tool Part-2 ........................................................................................................................... 26
Solutions for Case Studies - MS – Excel as Audit Tool ............................................................................................................................. 38
A. Exercise on Excel as an Audit Tool Part-1 ........................................................................................................................... 38
B. Exercise on Excel as an Audit Tool Part-2 ........................................................................................................................... 39
4. Database Application Using MS - Access ................................................................................................................................. 52
A. Introduction ........................................................................................................................................................................... 52
B. Chapter 1 : Advance SQL Queries ....................................................................................................................................... 52
C. Chapter 2 : Designing Forms & Reports .............................................................................................................................. 54
D. Chapter 3 : Building Criteria Expressions ............................................................................................................................. 56
E. Chapter 4 : Macros and Switchboards ................................................................................................................................. 57
5. ERP................................................................................................................................................................................................ 59
A. Introduction ........................................................................................................................................................................... 59
B. Chapter 1 : ERP Control and Audit....................................................................................................................................... 59
C. Chapter 2 : E-Filing .............................................................................................................................................................. 62
 The Institute of Chartered Accountants of India
Board of Studies
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*******
 1.
Introduction to Practice Manual
A. Introduction
Information Technology (IT) is revolutionising the way businesses work, survive and grow in the competitive global
village today. Governments, Businesses Enterprises and Individuals are fast changing the way they operate, perform
business operations and deliver goods and services. Online is the new mantra of today’s information sharing,
governance, and delivery of goods & services.
Amazon started its operations by selling Books. Today, it sells most goods and services that we require, even in India.
The old book shops have disappeared or are fast disappearing. Kodak, the pioneer in photography is no more. Nokia,
the largest seller of mobile phones at one time, has been acquired. If we do not keep pace with the high pace of
technological development and resultant obsolescence, we are neither competitive nor effective and hence lose
relevance.
Professional Accounts have also started making greater use of IT for their activities including communications (e-Mail,
WhatsApp, SMS), Financial Analysis/ Reporting, Accounting, Taxation, Online Returns Filing etc. The survival and
growth of a dynamic profession of Chartered Accountancy depends, to a large extent, on the understanding of
Business Information Systems, Business Process Automation, Telecommunications and Networking to face the
emerging challenges in the globalized competitive business environment. Accountants today need to use and analyse
humongous data, generate relevant information and report findings.

B. AICITSS - Advanced IT
The Advanced IT Course aims to indoctrinate financial analysis and reporting capabilities using modern day tools and
techniques including Auditing in an ERP Environment, MS-Excel, MS-Access, MS - Excel as an Audit Tools, and ERP.

C. Practice Manual - Organisation

This Practice Manual provides practical Illustrations, Exercises, and Case Studies to be covered as a part of the
Advanced IT Course on an All India basis by Students. The IT Centres shall ensure that these practical applications are
duly covered as a part of the course delivery.
While this Practice Manual enumerates the practical Illustrations, Examples, Case Studies to be covered as a part of
the course, further detailed steps are available in the Study Material for the Course, Video Lectures in the Course CD
and the following three e-Learning modules available in the Course CD:
1. Financial Analysis using MS-Excel
2. Using MS-Excel as an Audit Tool
The Practice Manual provides brief steps to complete the practical Hands-On Training (HOT), the Students are advised
to refer to the detailed steps in the aforementioned resources.
This Practical Manual provides the practical illustrations, Examples and Case Studies and then the steps with solution,
such that students can first make an earnest effort to solve the problem at their level and then view steps and solution
thereof.

AICITSS - Advanced Information Technology Practice Manual Page 1 of 68

Note: The detailed steps and process of solving the Illustrations and Case Studies in this section have been covered in
the following resources:

Name Symbol Resource

Study Module I SM1 Study Material for AICITSS - Advanced IT Module I
Study Module II SM2 Study Material for AICITSS - Advanced IT Module II
E-Learning CD1 ELM1 E-Learning Module on “Financial Analysis using MS-Excel”
E-Learning CD3 ELM3 E-Learning Module on “Using MS-Excel as an Audit Tool”
E-Learning CD4 ELCD1 E-Learning CD & Practice Module
New New Newly added Exercise & Case Studies
Note:
The E Learning CD1, CD2, CD3 have been incorporated as a part of the Advanced IT Course DVD. The e-Learning
modules require Adobe Flash Player to work, which is generally available in most computers today and can be
downloaded from https://get.adobe.com/flashplayer/ website.

D. Overview
As a part of our Advanced IT Course study, we shall be covering the Exercises and Case Studies as detailed in the
following table, in the respective topics.

Sr. Unit Name Exercise Case Studies

1 Advanced MS – Excel 22 4
2 MS – Excel as Audit Tool 43 13
3 Advanced MS Access 28
4 ERP 21 1
Total 114 18

AICITSS - Advanced Information Technology Practice Manual Page 2 of 68

 2.
Advanced MS – Excel
A. Introduction
The advent of Personal Computers in eighties saw the introduction of three very useful Office Productivity Software
including Lotus 1-2-3, dBase and Word Star that really changed the way computers were used. Lotus 1-2-3, Electronic
Spreadsheet Software soon emerged to be the most useful software for Accountants. Soon thereafter, Microsoft
released its integrated Office Productivity Software named MS-Office with a unified interface, which included MS-Excel;
the most commonly used Electronic Spreadsheet Software (ESS) today. The ESS enables us to import or feed required
data and undertake analysis as per requirements.
The Workbook of Electronic Spreadsheet consists of Worksheets. Each Worksheet consists of Columns and Rows.
The intersection of a column and row is called a Cell, in which we can enter text, numbers or formulas, as per our
requirements. We can analyse the data in Cells and Worksheets, to generate our required reports – For example Trial
Balance and Final Accounts.
As a part of our study on advanced usage of MS-Excel, we shall be covering the Illustrations and Case Studies as
detailed in the following table, in the respective chapters
Sr. Case
Chapter Title Exercise
No. Studies
Unit 1 Advanced MS – Excel
1 Working with XML 3 1
2 Advances in Macros 3 0
3 Applied Financial Analysis and Forecasting 2 6
Mathematical & Statistical Tools for Financial
4 4 3
Analysis
5 Application of MS Excel 10 14
Total 22 24
We shall study the use of MS-Excel spreadsheet software for importing/ exporting/ consolidating of data from/ to
multiple formats as required and perform data analysis for assurance, collecting and evaluating evidence, performing
what if analysis, scenario analysis, statistical analysis, sampling and reporting/ exporting to various formats such as
XML etc. and presenting in form of pivot tables, charts as relevant for business/ control issues of accounting, costing,
budgeting, tax computations, etc.
B. Chapter 1 : Working with XML
Exercise 1.1: Working with XML Data File SM1
We have a salesman wise Invoice list in excel having the header as which has Sales Id, Salesman, Invoice,
Customer and Amount. You are required to convert this data into XML so that the data can be shared with other
applications.
Example 1: We have an XML file Salesman Invoice.xml from which we want to create a Table in MS-Excel..
For Result please refer to Page No 285 of Study Module – I.
Example 2: We have an XML file Salesman Invoice.xml from which we want to create Map.
For Result please refer to Page No 286 of Study Module – I.
Example 3: We want to populate this worksheet from the contents of file Salesman Invoice.xml.
For Result please refer to Page No 289 of Study Module – I.
Note – For above use Exercise1.1.xlsx file from EXCEL folder.

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C. Chapter 2 : Advanced Macros
Exercise 2.1: Macro to Change Text into Lowercase, Uppercase and Propercase. ELCD1
Create a Macro that shall change the data available in the following screenshot into Lower, Upper and Proper case:

Note – For above use Exercise2.1.xlsx file from EXCEL folder.

Exercise 2.2: Macro to Change Sheet names and Hyperlinked Index ELCD1
Create a Macro that shall
List down all sheet names in the current workbook
Create hyperlinked index to sheet names.

Note – For above use Exercise2.2.xlsx file from EXCEL folder.

Exercise 2.3: Macro to Delete Remaining Sheets ELCD1
Create macro that will delete all sheets, of the workbook, except current sheet.

Note – For above use Exercise2.3.xlsx file from EXCEL folder.

D. Chapter 3: Applied Financial Analysis And Forecasting Financial Statements

Revision Case Studies-
Exercise 3.1 Financial Ratios SM1
Based on the Balance Sheet and Profit and Loss Statement available in the Exercise4.1 sample file, you are required to
compute the following ratios:
Liquidity Ratios Leverage Ratios Turnover / Activity Ratios Profitability Ratios
1 Current Ratio 3 Debt - Equity Ratio 8 Inventory Turnover ratio 13 Gross Profit Margin Ratio
2 Quick Ratio 4 Debt - Total Fund Ratio 9 Times the inventory turned over 14 Net Profit Margin Ratio
5 Debt - Asset Ratio 10 Inventory measured in days of sale 15 Return on Investment
6 Interest Coverage Ratio 11 Average Collection Period
7 Liability Coverage Ratio (LCR) 12 Fixed Assets Turnover ratio
Note – For above use Exercise3.1.xlsx file from EXCEL folder.
For Result please refer to Page No 331 of Study Module – I.

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Exercise 3.2 Du Pont Analysis (Return on Equity) SM1
The work file for this exercise contains Revenue, EBT, EBIT, Interest, Income Tax, Total Assets and Shareholders
Equity data for a company. You are required to compute Return on Equity through Du Point Analysis.
Note – For above use Exercise3.2.xlsx file from EXCEL folder.
For Result please refer to Page No 341 of Study Module – I.
Exercise 3.3 Leasing SM1
Example 1: A Company is considering a proposal to whether procure or lease a Computer Server whose Cost is
Rs.1,75,000/-, Annual Lease Amount payable is Rs.45,000/- and the annual Interest Rate is 8%. You are required to
financially evaluate whether to procure or lease the computer server.
Note – For above use Exercise3.3_Ex1.xlsx file from EXCEL folder.
For Result please refer to Page No 342 of Study Module – I.
Example 2: A company is considering acquiring additional machinery. It has 2 options:-
Option 1: To purchase machinery for Rs.22,00,000/-
Option 2: To lease the machinery for 3 years for Rs.7,25,000/- as annual lease. The agreement also requires an
additional payment Rs 6,00,000 at the end of 3rd year
Annual Operating Costs (excluding depreciation/ lease rent of machinery) are estimated at Rs.900000/- with an
additional cost Rs.1,00,000/- for training cost at the beginning of the year. These costs are to be borne by lessee. The
Company will borrow at 16% interest to finance the acquisition. The Machinery under review will be worth Rs.10/- lacs
at the end of 3 years. Repayments are to be made as follows:
Year End Principal Interest
1 500000 352000
2 850000 272000
3 850000 136000
The Company uses SLM to depreciate the assets & pays tax @ 50%. Which Alternative is better??
Note – For above use Exercise3.3_Ex2.xlsx file from EXCEL folder.
For Result please refer to Page No 344 of Study Module – I.
Exercise 3.4 Financial Shenanigans SM1
The Sales Revenue of M/s. Enron for the years 1996, 1997, 1998, 1999 and 2000 were $13280/-, $20,273/-, $31,260/-,
$40,112 and $100,789 respectively in million dollars. The Gross Profit for these years was $2,811, $2,962/-, $4,879/-,
$5,351 and $6,272/- respectively. The Net Profit for these years was $584/-, $105, $703, $893 and $979 respectively.
The Fortune 500 Ranking of M/s. Enron was 94, 57, 27, 18 and 7 respectively in these years. You are required to
compute GP Ratio, NP Ratio and Plot these results in a suitable chart to present a graphical view of M/s. Enron.
Note – For above use Exercise3.4.xlsx file from EXCEL folder.
For Result please refer to Page No 346 of Study Module – I.
Exercise 3.5 Dividend Growth Model SM1
M/s. Big D Inc. has just paid a dividend of Rs. 30/-. The Company expects to increase its dividend pay-out rate by 2%
per year. If the market requires a return of 15% on assets of this risk, you are required to compute how much should
the stock be selling for if the Dividend Growth Model states that P0=D0*(1+G)/R-G)=D1/(R-G)?
M/s. Big D Inc. is expecting to pay dividend of Rs.120/- in one year. If the dividend is expected to grow at 5% per year
and the required return is 20%, you are required to compute the price?
As a part of this Case Study, you are also required to find the stock price sensitivity towards growth rate if expected
dividend is Rs.2 and the Required Rate is 20%.

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You are also required to find the stock price sensitivity towards expected returns if Expected Dividend is Rs.2 and the
Growth Rate is 5%.
Note – For above use Exercise3.5.xlsx file from EXCEL folder.
For Result please refer to Page No 356 of Study Module – I.
E. Chapter 4 : Mathematical & Statistical Tools For Financial Analysis
Exercise 4.1: Excel Basic Statistical Functions SM1
Example 1: Find Mean for test scores of 40 students.
Test Scores of 40 Students are available in Exc 4.1.xlsx file from excel folder. Students are required to compute the
Arithmetic Mean for these test scores using @mean MS-Excel function.
Example 2: Find Median for test scores of 20 individuals.
Test Scores of 20 Students are available in Exc 4.1.xlsx file from excel folder. Students are required to compute the
Median Scores for these test scores using @median MS-Excel function.
Example 3: Find Mode for test scores of 20 students
Test Scores of 20 Students are available in Exc 4.1.xlsx file from excel folder. Students are required to compute the
Mode Scores for these test scores using @mode MS-Excel function.
Note – For above use Exercise4.1.xlsx file from EXCEL folder.
For Result please refer to Page No 365 of Study Module – I.
Exercise 4.2: Testing of hypothesis SM1
Decisions and errors in Hypothesis testing
True state of the world
Decision
H0 is true H1 is true
Reject H0 Type I error Correct decision
Do not Reject H0 Correct decision Type II error
A statement from an official report says that CAs in industry earn 60,000 per month. We feel that CAs in industry have a
mean annual salary of more than 60,000 per month. At alpha = .05, sigma = 12,549, n = 36 and sample mean =
63,500, can we conclude that CAs earn more than 60,000?
Note – For above use Exercise4.2.xlsx file from EXCEL folder.
For Result please refer to Page No 366 of Study Module – I.
Exercise 4.3: Confidence Interval SM1
Given the following set of 32 random test scores taken from a much larger population, calculate with 95% certainty an
interval in which the population mean test score must fall. In other words, calculate the 95% Confidence Interval for the
population test score mean.
Note – For above use Exercise4.3.xlsx file from EXCEL folder.
For Result please refer to Page No 369 of Study Module – I.
Exercise 4.4: One way ANOVA SM1
We have units of products sold by three different groups of salesman throughout ten days. Find out the effect of
difference in selling techniques on the sales.
Note – For above use Exercise4.4.xlsx file from EXCEL folder.
For Result please refer to Page No 371 of Study Module – I.
Exercise 4.5: Regression SM1

AICITSS - Advanced Information Technology Practice Manual Page 6 of 68

Based on the monthly rates of return of 4 stocks: (Google, Yahoo, MS, and Apple) and the Tech Index, create a
Regression Equation that will predict the Tech Index return for a given month if a different set of rates of return for each
company's stock are input.
Note – For above use Exercise5.5.xlsx file from EXCEL folder.
For Result please refer to Page No 373 of Study Module – I.
Exercise 4.6: Trend Analysis New
Consider the given data of M/s. XYZ & Co. relating to sales from April 2014 to November 2014. Identify the project
sales from December 2014 to March 2015 by using trend analysis. (Estimating the future trend of values based on the
figures of previous period.)
Note – For above use Exercise4.6.xlsx file from EXCEL folder.
Exercise 4.7: Correlation (Two Variables) New
Consider the given data relating to time spent by the students and the marks achieved. With the use of correlation find
the relationship between the time spent and marks obtained.
Note – For above use Exercise4.7.xlsx file from EXCEL folder.
Exercise 4.8: Relative Size Factor (RSF) New
If we have following bank payment vouchers of Vendor XYZ, calculate the RSF.
Voucher Number Amount
AB012 50,000
AB032 5,00,000
AB121 5,00,000
AB171 20,000
AB0378 23,000
AB198 8,500
The largest value in above table = Rs 5, 00,000/- and the second largest value = Rs 50,000/-. Therefore the RSF in this
case = 10 that is Rs 5, 00,000 Lacs divided by Rs. 50,000. As per RSF theory generally any transactions where RSF >
10 are the cases of isolated outliers.
RSF is the ratio of Largest Number to the Second Largest Number of a relevant set.
RSF = (Maximum Value / 2nd Maximum Value)
Relevance of RSF
Scrutiny of individual parties account is humanly ineffective and now with most of the data available digitally how does
one scrutinize the ledgers? RSF theory comes in very handy here, instantly one can calculate RSF and take sample for
verification. This tool finds focus and meaning to the scrutiny. It highlights all unusual fluctuations which may be
stemming from frauds or errors.
Application of RSF Theory in Audit
Any set of transactions generally take place in certain range or limits. Thus, there is a certain pattern of financial limits
peculiar to each vendor, customer, employee, etc. these limits may not be defined, but the data can be analysed to
view a pattern. RSF captures this pattern as ratio.
Note – For above use Exercise4.8.xlsx file from EXCEL folder.

AICITSS - Advanced Information Technology Practice Manual Page 7 of 68

F. Chapter 5 : Application of MS Excel
Revision Case Studies-
Exercise 5.1: Marginal Costing
Example 1: Break Even Point (BEP) Calculation SM1
Prepare a chart showing BEP when Selling Price is of Rs.600, Variable Cost is Rs.250 and Fixed Cost is Rs.4200.
Example 2: Pricing Decisions & Discounts
SRT Enterprises is into business of selling cricket bats. They have to decide the price at which to sell the product.
Before the price is decided, marketing department is being consulted about the sales in quantity that can be achieved in
the first year. SRT Enterprises wishes to achieve BEP in the first year itself. Consider following data.
Variable Cost = Rs.250, Fixed Cost = 10 Lacs. Sales Price Range = Rs.300 to Rs.1,000
Prepare a statement to assist M/s. SRT Enterprises to take a decision based on above details.
Hint:- BEP: Break Even Point is the point of no profit or no loss. It may be expressed in terms of sales value or sales
unit. It can be calculated as under.
BEP (Value) = Fixed Cost BEP (Units) = Fixed Cost
PV Ratio Contribution per Unit

Note – For above use Exercise5.1.xlsx file from EXCEL folder.

For Result please refer to Page No 389 of Study Module – I.
Exercise 5.2 Capital Budgeting Case Study SM1
A Company is proposing to install a Machine costing Rs.1,000/- that would generate Cash Flows of Rs.200/-, Rs.300/-,
Rs.400/-, Rs.500/- and Rs.600/- at the End of Year 1, 2, 3, 4 and 5 respectively. The Cost of Capital for the Company is
11%. Compute NPV of the Project using the normal manual method and NPV and IRR using MS-Excel readymade
functions.
Note – For above use Exercise5.2.xlsx file from EXCEL folder.
For Result please refer to Page No 410 of Study Module – I.
Exercise 5.3 Tax Calculations
Example 1: By using If function SM1
Compute Tax payable for AY 14-15 for Mr. X whose Status is Individual (Age below 60 Years) with an Income of
Rs.11,62,500/-. Indicative steps to solve this problem are as follows:
1. For 10% slab – Check if the income is greater than Rs.5.00 lacs, if yes, the tax shall be Rs.30,000. If no,
then check if the income is greater than Rs.2 lacs, if yes then tax shall be 10% of excess of income over Rs.2
lacs. If income is even less than Rs.2 lacs, the tax shall be zero.
2. For 20% slab – Check if income is greater than Rs.10 lacs, if yes, then the tax shall be Rs.1 lacs. If no, then
check whether income is greater than Rs.5 lacs, if yes, then tax shall be 20% of excess of income above Rs.5
lacs. If income is not greater than Rs. 5 lacs, then tax shall be zero.
3. For 30% slab – Check if income is greater than Rs.10 lacs, if No, tax shall be zero. If yes, tax shall be 30%
of income above Rs.10 lacs.
Note – For above use Exercise5.3.xlsx file from EXCEL folder.
For Result please refer to Page No 399 of Study Module – I.

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Exercise 5.4 EMI Calculations SM1
Example 1: PMT Function – (Payment - Used for calculating monthly instalment /investment amount.)
Mr. A want to avail a loan of Rs.1 lacs. Repayment period is 3 years & rate of interest is 12% p.a. Compute Equated
Monthly Instalment (EMI) using the PMT function of MS-Excel.
Note – For above use sheet Exercise5.4 Ex1 sheet from Exercise5.4.xlsx file from EXCEL folder.
For Result please refer to Page No 400 of Study Module – I.
Example 2: PPMT Function- (Principal Payment – Used for calculating principal amount in EMI)
In the previous example, we have computed the EMI for a loan of Rs.1 lacs with repayment period is 3 years & rate of
interest is 12% p.a. You are required to compute the Principal and Interest paid in each of the EMI’s using the PPMT
and IPMT functions of MS-Excel.
Note – For above use sheet Exercise5.4 Ex2 sheet from Exercise5.4.xlsx file from EXCEL folder.
For Result please refer to Page No 402 of Study Module – I.
Example 3: Loan Amortization Sheet (Excel provides a readymade solution for the EMI calculation.)
MS-Excel has many Built-In and other templates to facilitate our work. One such template is on Loan Amortisation
Template. Start MS-Excel and select FileNewSample Templates Command. You would see the Loan Amortisation
Template. Click on this template and Select Create Option. Thereafter, feed requisite details of required loan that
include Loan Amount, Interest Rate, Loan Period, Number of Payments Per Annum and Loan Start Date. MS-Excel
generates the Loan Amortisation Statement.
For Result please refer to Page No 403 of Study Module – I.
Exercise 5.5: Calculate Probability SM1
The Sales Department of a company has estimated probability of achieving sales of 50, 60, 70, 80, 90 & 100 units as
follows:

You are required to calculate probability of achieving sales target between 70 to 80 units using PROB function of MS-
Excel.
Note – For above use Exercise5.5.xlsx file from EXCEL folder.
For Result please refer to Page No 415 of Study Module – I.
Exercise 5.6: Sensitivity Analysis SM1
Sensitivity Analysis in MS-Excel assists in determining how different values of an independent variable will impact a
particular dependent variable under a given set of assumptions. It is a way to predict the outcome of a decision if a
situation turns out to be different compared to key predictions.
Compute Sensitivity Analysis on EMI if interest rate varies from 7.5% to 9% and the loan amount changes from Rs.15
Lacs to Rs.50 Lacs.
Note – For above use Exercise5.6.xlsx file from EXCEL folder.
For Result please refer to Page No 416 of Study Module – I.
Exercise 5.7: Scenario Analysis SM1
A furniture shop has 100 chairs which are sold to customer at Rs.4,000/- to Rs.6,000/-. Currently, the shop is

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selling 60% of chairs at highest price of Rs.6,000 each and 40% chairs at lowest price of Rs.4,000 each, giving a
Sales Revenue of Rs.5,20,000/-.
Using MS-Excel Scenario Analysis facility, compute the Sales Revenue if 70%, 80% and 90% chairs are sold at
highest price of Rs.6,000/-
Note – For above use Exercise5.7.xlsx file from EXCEL folder.
For Result please refer to Page No 418 of Study Module – I.
Exercise 5.8: Decision Tree Analysis SM1
Create a Decision Tree as shown below in Excel.

For Result please refer to Page No 421 of Study Module – I.

Exercise 5.9: Personal Financial Planning SM1
Example 1: FV Function
Mr. Swapnil is willing to invest Rs.5,000/- per month for the purpose of buying office space. He wants to know
how much amount he would get at the end of 10 years considering a rate of interest of 8% p.a.
For Result please refer to Page No 425 of Study Module – I.
Example 2: PMT Function with Future Value
Mr. Ashish is planning to collect an amount of Rs.10 Lacs in five years for the purpose of education of his
daughter. He wants to know how much he needs to invest every month considering a rate of interest of 8% p.a.
Hint: Use PMT Function of MS-Excel to compute the amount that he needs to invest every month.
For Result please refer to Page No 426 of Study Module – I.
Example 3: Rate Function with Future Value
Mr. Amit wants to collect Rs.5 lacs at the end of five years by investing Rs.5,000 per month. He wants to know
the rate of interest at which he should invest.
For Result please refer to Page No 426 of Study Module – I.
Example 4: NPER Function
Ms. Ms. Mayura wants to collect Rs.5/- Lacs to purchase a plot of land for which she can invest Rs.10,000/- per
annum. Compute the number months she would have to keep investing this money considering that the rate of
interest is 10%.
Note – For all above examples use Exercise5.9.xlsx file from EXCEL folder.
For Result please refer to Page No 427 of Study Module – I.
New Case Studies-

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Exercise 5.10: Depreciation Accounting Case Study ELM1
Compute Depreciation to be charged for a Plant and Machinery with following details under the five methods (a)
Straight Line Method (SLN), (b) Sum of Years Digit Method (SYD), (c) Declining Balance Method (DB/ WDV), (d)
Double Declining Balance Method (DDB) and (e) VDB).
M/s. Being Computerized Co. Ltd.
Cost Scrap Value Life-Yrs WDV Rate
110,000 10,000 10 20%
Note – For above use Exercise5.10_Depreciation_CS.xlsx file from NEWCS_EXCEL folder.
Exercise 5.11 Cash Budgeting Case Study ELM1
Prepare a Cash Budget for M/s. Being Computerised Co. considering following particulars:
1. Sales Revenue & Sales Growth Rates: Sales revenue were Rs. 80,000/-, Rs. 90,000/- and Rs. 1,00,000/- in April,
May & June and is expected to increase @ 10%, 20% & 30% in the months of July, August, September, October,
November, December and January respectively.
2. Cash & Credit Sales: Sales are generally made 40% on Credit & 60% on cash basis. The Credit Sales are
generally realised 50% in next month, 30% in second month & balance 20% in third month.
3. Closing Cash Balance:- The closing Cash Balance for the month of June was Rs. 1,00,000/-
4. Direct Material Cost: - The Direct Material Cost is 40% of Sales. The Direct Material is procured 2 month in
advance for requisite manufacturing with a credit period of one month.
5. Wages and Salaries are estimated at 20% of sales revenue; the payment of which is made the following month on
monthly basis.
6. Rent for the Factory is 6, 00,000/- per annum, payable as quarterly advance.
7. Factory Overheads are Rs. 10,000/- per month.
8. Minimum Cash Balance: The Company wishes to maintain a minimum Cash Balance of Rs. 20,000/- for office
exigencies. In case sufficient balance is not available, a Short Term Loan of 1 month is taken @16% per annum for
1 month.
Note: For above use Exercise5.11_Cash Budgeting_CS.xlsx file from NEWCS_EXCEL folder
Exercise 5.12 Tax Calculations ELM1
Example 1: Compute Tax Payable by Mr. Shri Ram using VLOOKUP for the AY 2012-13 using Tax Rates given in the
following table:
M/s. Being Computerized Co.
Tax Computation Sheet
Assessment Year 2012-13 For Male Less < 60 Yrs
GTI Rate Amt+
Name Shri Ram 1 0% 0
GTI 1,000,000 180,000 10% 0
Tax 500,000 20%
Education Cess 800,000 30%
SHE Cess
Total Tax Slab
Tax Rate
Amt+
Note – For above use Exercise5.12_Income Tax_CS.xlsx file from NEWCS_EXCEL folder.
Exercise 5.12a Tax Calculations
Compute Tax Payable by Mr. Shri Ram in the earlier Exercise for the AY 2016-17 using Tax Rates by also considering
Surcharge, Education Cess, SHE Cess. Students are also required to compute:
1. Tax payable for tax payer’s age of 80+ and between 60 and 80.

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 2. Calculation of interest u/s. 234C of Income-tax Act in different situations
3. Calculation of fine u/s. 234E of Income-tax Act for TDS defaults
4. Calculation of capital gains for different asset classes with different holding periods
5. Swachch Bharat Cess.
Note – For above use Exercise5.12a_Income Tax_CS.xlsx file from NEWCS_EXCEL folder.
Exercise 5.13 EMI Calculations ELM1
Compute EMI for a Loan amount of Rs.10,000/- with Interest @ 10% per annum for three years at fixed rate of interest
and interest on reducing balance method.
Note – For above use Exercise5.13_EMI_CS.xlsx file from NEWCS_EXCEL folder.
Exercise 5.14: Marginal Costing Case Study New
M/s. ABC & Co. currently sells 1000 units of Product X @ Rs.100 with Variable Costs of Direct Material, Direct Labour
and Direct Expenses of Rs.5, 10 and 20 respectively and Fixed Costs of Rs.50,000/-. Prepare a well presented
Marginal Cost Statement with Profit/ Loss, Break Even Point and Break Even Sales.
Project Assignment: Use this statement to financially evaluate proposal from the (a) Sales Department to decrease
Selling Price by 10% which is expected to increase Sales by 30% and (b) Production Department proposal to procure a
Plant & Machinery that would increase Fixed Costs by Rs.10,000/- and assist in reducing Direct Labour and Direct
Expenses by 50%.
Note – For above use Exercise5.14_Marginal Costing_CS.xlsx file from NEWCS_EXCEL folder.
Exercise 5.15: Capital Budgeting Case Study ELM1
M/s. ABC & Co. wishes to procure a Capital Asset for Rs.1,00,000/- that is expected to generate cash flows of
Rs.20,000/- for ten years and the Cost of Capital is 10%. Prepare the Capital Budget giving NPV using PV Factor and
also validate result using @NPV function. Also compute the Internal Rate of Return (IRR) for the project.
Note – For above use Exercise5.15_Capital Budgeting_CS.xlsx file from NEWCS_EXCEL folder.
Exercise 5.16: Monte Carlo Simulation Case Study New
Simulation is a numerical technique to develop a model with mathematical and logical relationships necessary to
describe the behaviour and structure of a complex real world system, to predict the behaviour of a process over
multiple experiments. Monte Carlo Simulation is an important simulation technique using random numbers and
probability distribution/ curves. The probability distribution/ curve could be Uniform Distribution, Normal (Gaussian)
Distribution (Standard Bell Shaped Curve), Lognormal Distribution, or Poisson Distribution.
M/s. ABC Co. has computed Mean Forecast for Sales Revenue and Variable Costs of Rs.10 lacks and 6 lacks
respectively and has Fixed Costs of Rs. 2 Lacks. These values have been tabulated in MonteCarloCaseStudy.xlsx file
in the Sample Files. Students are required to undertake (a) Monte Carlo Simulation using Random Numbers and
Normal Distribution; (b) tabulate results for 20 iterations and (c) Compute the Average Sales Revenue for these 20
iterations.
Note – For above use Exercise5.16_MonteCarlo_CS.xlsx file from NEWCS_EXCEL folder.
Exercise 5.17: Sensitivity Analysis Case Study with MS-Excel What-If-Analysis New
M/s. ABC Ltd. is considering a project with an Initial Cost of Rs.10,00,000/- with Selling Price per Unit of Rs.60 and
Cost per unit of Rs.40. The expected Sales Volume in Year 1, 2 and 3 are 20,000, 30,000 and 30,000 units
respectively. The Cost of Capital for the company is 10%. You are required to:
1. Compute NPV and IRR of the Project and
2. Undertake What-If-Analysis as follows:
a) Pivot Table Report of Scenarios of NPV for Cost of Capital of 10%, 15%, 20%, 25% and 30%
b) Compute IRR of the Project through Goal Seek

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 c) Generate a Data Table Report of NPV of the Project using Cost of Capital as 10%, 15%, 20%, 25% and
30%
Note – For above use Exercise5.17_Sensitivity Analysis_CS.xlsx file from NEWCS_EXCEL folder.
Exercise 5.17a: Scenario Analysis Case Study with MS-Excel What-If-Analysis New
M/s. ABC Co. Ltd. Currently sells 1000 units of a product @ Rs.10/- each that costs Rs.6/- each. The Company
projections estimate following growth rates per annum for Sales @ 15%, Costs @ 10% and Selling Price @ 2%.
You are first required to compute the NPV of the project and then undertake Sensitivity Analysis using ”Scenario
Manager” in “What-If-Analysis” of MS-Excel for following Scenarios:
Particulars Best Worst Average
Tax Rate 50% 30% 70%
Sales Growth 15% 20% 15%
Cost Growth Rate 10% 2% 10%
Selling Price Growth Rate 2% 8% 2%
Note – For above use Exercise5.17a_Scenario Analysis_CS.xlsx file from NEWCS_EXCEL folder.
Exercise 5.18: Consolidation & Summarization Case Study New
The Institute gets a report from its Five Regional Offices on the number of Students trained for its five Soft Skill Courses
namely IT Course, Orientation Programme, GMCS-I, GMCS-II and Advanced IT Courses in MS-Excel file with region
name; which are updated on monthly basis, on receipt at Head Office. The Head Office needs to file a Report of
Students trained. Students are required to prepare a Consolidated Report that takes current data from all regions.
Please note that these are indicative, not actual reports.
Note – For above use Exercise5.18_Consolidation_CS.xlsx, Exercise5.18_Central.xlsx, Exercise5.18_East.xlsx,
Exercise5.18_North.xlsx, Exercise5.18_South.xlsx and Exercise5.18_West.xlsx file from NEWCS_EXCEL folder.

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 Solutions for Case Studies – Advanced MS Excel
A. Chapter 2 : Advances in Macros
Exercise 2.1
Output
Step-1: Open Exercise2.1.xlsx file from EXCEL folder and press ALT + F11.
Step-2: Insert new Module and type the below code as shown in below figure.

Step-3: Press ALT + F8 and run the macro.

Exercise 2.2
Output
Step-1: Open Exercise2.2.xlsx file from EXCEL folder and press ALT + F11.
Step-2: Insert new Module and type the below code as shown in below figure.

Step-3: Press ALT + F8 and run the macro.

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Exercise 2.3
Output
Step-1: Open Exercise2.3.xlsx file from EXCEL folder and press ALT + F11.
Step-2: Insert new Module and type the below code as shown in below figure.

Step-3: Open Exercise3.3.xlsx file from EXCEL folder and press ALT + F11.

B. Chapter 4 : Mathematical & Statistical Tools For Financial Analysis

Exercise 4.6: Trend Analysis
Output
Here use the formula =TREND (known_y's, [known_x's], [new_x's], [const])
Step 1: Estimating the sales for future periods based on the trend from Apr. 14 to Nov. 14, please enter Trend formula
as =TREND (B5:B12, A5:A12, A13,) in Cell B13. Please note that fixed reference of cells is not used so that trend is
computed dynamically so as to include sales of the immediate month while computing trend.

Step-2: Using the drag option pull the formula to the end of table i.e. till Mar-15.

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Exercise 4.7: Correlation (Two Variables)
Output
The correlation coefficient shows how strongly two dependent variables are related to each other on a scale of (-1) to
+1, A correlation coefficient of +1 indicates a perfect positive correlation and -1 indicates a perfect negative correlation.
However, in normal situations, the correlation may vary between -1 and +1 based on the data.
Step 1: At Cell C12 use the CORREL formula, select array1 as B4:B10 and array2 as C4:C10 and press enter.

The results would be 0.8850 which is interpreted as that marks obtained are 88.50% incidental to the amount of time
spent upon preparation for the subject. It could also be said that the marks obtained have a high positive relationship
with the time spent for preparation. So, this proves in general that higher the effort put in studies, higher could be the
marks obtained.
Correlation for two or more related variable could also be done using the data analysis tools available in excel.
Some more examples of correlation are:
1. Higher the temperature, higher is the sale of cold drinks/ice creams and vice versa. Similarly, in the cold
season, the temperature is lower but the sale of hot beverages is higher.
2. Lower the tax rates, higher is the available amount with tax payers and higher is the spending or savings.
3. Higher the expenditure spend by government on health care, lower is the health cost by citizens.
Exercise 4.8: Relative Size Factor (RSF)
Output
Step -1: - from the given data find out the maximum value for the Amount column using the Max function.

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Step -2: - For calculating 2nd Maximum value, duplicate the data in a separate sheet and rename the sheet as “New
Sheet” then replace the Maximum value as determined in step-1 in the amount column with zero using the Find &
Replace function. Perform the Step-1 again with the resultant data to find out the 2nd Maximum value.

Step 3: - After determining the 2nd Maximum value in the new sheet come back to the Original sheet and calculate the
RSF by dividing the Maximum value with the 2nd Maximum value.

The Maximum value in above table = Rs 5, 00,000/- and the second Maximum value is Rs. 50,000. Therefore the RSF
in this case = 10 that is Rs 5, 00,000 Lacs divided by Rs. 50,000. The above example covers only one set of
transactions. If there are multiple set of transactions, then RSF has to be computed for each set of transaction.
Additional Test
Using excel file in Exercise5.8a.xlsx, which contains the sales for January 2015, find out RSF as per the customer ID.
(Hint: use pivot table to identify maximum value as per customer Id. Repeat this process for second maximum after
removing 1st Maximum and then apply RSF)
C. Chapter 5 : Application of MS Excel
Exercise 5.3 Tax Calculations
Example 2: By using VLOOKUP function
Output
M/s. Being Computerised Co.
Tax Computation Sheet

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 Assessment Year 2012-13 For Male Less < 60 Yrs
GTI Rate Amt+
Name Shri Ram 1 0 0
GTI 1000000 180000 0.1 0
Tax =(GTI-E10)*E11+E12 500000 0.2 =(D7-D6)*E6
Education Cess =B7*2% 800000 0.3 =(D8-D7)*E7+F7
SHE Cess =B7*1%
Total Tax =SUM(B7:B9) Slab =VLOOKUP(GTI,MaleLT60,1)
Tax Rate =VLOOKUP(GTI,MaleLT60,2)
Amt+ =VLOOKUP(GTI,MaleLT60,3)
Exercise 5.10: Depreciation Accounting Case Study
Output

Exercise 5.11 Cash Budgeting Case Study

Step-1: Open the practical file for Cash Budget Case Study from NEWCS_EXCEL folder, having basic structure of the
required statements.
Step-2: Cash Budget computations using formula = (1+F7)*E6 (where F7=10% Growth Rates, E6=100,000 Sales
Revenue) and replicate the formulae for Sales Revenue.
Step-3: Credit Sales computations using formula =C6*$B$8 (where C6=Total Sales Revenue for the month of April, B8
is the cell reference of Credit Sale percentage.
Output

Exercise 5.14: Marginal Costing Case Study

Output

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Exercise 5.15: Capital Budgeting Case Study
Output

Exercise 5.16: Monte Carlo Simulation Case Study

Output

Exercise 5.17: Sensitivity Analysis Case Study with MS-Excel What-If-Analysis

Output

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Exercise 5.17a: Sensitivity Analysis Case Study with MS-Excel What-If-Analysis
Scenario Analysis Case Study
Output
Open Scenario Analysis_CS.xlsx file from NEWCS_EXCEL folder and refer result sheet.

Exercise 5.18: Consolidation & Summarization Case Study

Output

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AICITSS - Advanced Information Technology Practice Manual Page 21 of 68
 3.
MS – Excel as Audit Tool
A. Introduction
As we know that CAAT Software assists us in undertaking a number of useful functions for our audit work very easily at
the click of a button. But what happens when we go for audit and we do not have these software available. Does it
mean that we cannot use these features/ facilities in our audit? You can indeed undertake most of these functions
through MS-Excel, which is generally available on most computers and laptops today. We shall study how to using MS-
Excel as Audit Tool. That is the subject matter of study, in this section.
Sr. No. Chapter Title Exercise
1 Useful Functions for Auditing 05
2 Formula Auditing 05
3 Data Analysis Using MS Excel 05
4 Exercise on Excel as an Audit Tool Part-1 06
5 Exercise on Excel as an Audit Tool Part-2 22
Total 43
Note: All the Case Study related files are available EXCEL_AUDIT_TOOL folder.

A. Useful Functions for Auditing

Exercise 1.1 – Project Analysis
Refer to the file ‘Exercise No 1.1 - Project Analysis’
Virat is doing project analysis for his company. There are 2 projects which are considered by him. The cash flows
related to these projects are as given;
Virat determines that for project analysis deriving NPV and IRR may make sense. Accordingly he makes use of NPV
and IRR functions. However, he feels something has gone wrong.
You are expected to review the file and answer the following questions:
1. The NPVs don’t appear to be right. What changes need to be made to obtain the right NPVs?
2. Why is #NUM! Error generated on inserting IRR function?
3. Sum total of cash flows in both projects is the same. Nevertheless, which project will you choose if you can
select only one project? Why?
Exercise 1.2 – Depreciation
Refer to the file ‘Exercise No 1.2 - Depreciation’
Juhi is performing statutory audit of a company. Her auditee had bought an asset during the current year. She wants to
calculate and hence verify the end-of-the-year depreciation, using declining balance method. You are expected to
review the file and answer the following questions:
1. Which function will be suitable for this purpose?
2. What will be the depreciation value as on 31st March, 2018 (the year ending date)?
3. Prepare a depreciation schedule till the asset is completely written off.

Exercise 1.3 – Dates

Robin is required to work on dates. In this context, he has approached you for guidance.
Refer to the file ‘Exercise No 1.3 – Dates – Sheet 1’

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Robin has a collection of dates. He wants to generate the month end dates corresponding to them. How this can be
done?
Refer to the file ‘Exercise No 1.3 – Dates – Sheet 2’
Robin wants to know the number of working days, (excluding Saturdays and Sundays) between two dates. There are
also some holidays falling on weekdays, which are given in column G. He is not sure how to calculate the exact number
of working days.
Exercise 1.4 – Comparison of Texts
Refer to the file ‘Exercise No 1.4 - Comparison’
1. Neeta wants to compare one set of names with the second set of names. How this can be done, assuming
that she doesn’t intend to do a case sensitive comparison?
2. Assuming that she wants to perform a case sensitive comparison, what different approach she needs to
adopt?
Exercise 1.5 – Plotting of Share Prices
Refer to the file ‘Exercise No 1.5 - VLOOKUP and IFERROR
Salim is auditing a mutual fund scheme. He wants to confirm whether the portfolio held by that scheme is properly
valued or no. For this, he has obtained the holding of the shares. Now he wants to plot their market prices. Some of the
shares are listed only on BSE while others are listed on NSE as well as BSE. As per the valuation policy of the mutual
fund scheme, shares held should be valued at NSE closing price. If a share is not listed on NSE or its NSE quote is not
available, then it should be valued at BSE closing price.
For this purpose, Salim has obtained the NSE and BSE bhavcopies. However, he is not sure how he is going to bring
those prices beside the shares. Also, he is confused how to bring the price from the right market, depending upon
where a particular share is listed.
He has approached you for the guidance. Help him construct a single formula which will plot the NSE closing price,
based on the Scrip Code. If NSE closing price is not available, then BSE closing price should be plotted.

B. Formula Auditing
Exercise 2.1 – Evaluating Formula
Refer to the file ‘Exercise No 2 - Formula Auditing’
Consider the formula in the cell D17 of the above file. Evaluate the formula step-by-step and gain an understanding as
to how exactly the cell D17 has been evaluated to 4.165.
Exercise 2.2 – Tracing Precedents
Refer to the file ‘Exercise No 2 - Formula Auditing’
Consider the formula in the cell F19. Trace the precedents, if any, for this cell. Do this for all levels of precedents. You
are expected to do this using the formula auditing as well as Go To Special window.
Exercise 2.3 – Tracing Dependents
Refer to the file ‘Exercise No 2 - Formula Auditing’
Consider the formula in the cell F9. Trace the Dependents, if any, for this cell. Do this for all levels of Dependents. You
are expected to do this using the formula auditing as well as Go To Special window.
Exercise 2.4 – Error Checking
Refer to the file ‘Exercise No 2 - Formula Auditing’
Are there any errors in this file? If yes, rectify them.
Exercise 2.5 – Show Formulas

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Refer to the file ‘Exercise No 2 - Formula Auditing’
Open all the formulas in the worksheet Sheet1 at once. Which of these cells of this sheet contain formulas? Examine
and then return back to normal view.

C. Data Analysis Using MS Excel

Exercise 3.1 – Remove Duplicates
Refer to the file ‘Exercise No 3.1 - Remove Duplicates’
Remove all the duplicate records from the above file.
Exercise 3.2 – Pivot Tables
Refer to the file ‘Exercise No 3.2 - Pivot Tables’
Consider the data in the above file. Insert a Pivot Table for this data and answer the following questions:
1. How many material codes belong to class 0? And how many belong to class 3?
2. How many material codes have either PAIL or DRUM as their Labeling Unit?
3. Apply Report filter on ‘Inventory Type’ feld. Select filtering value as Cool but fgd. How many material codes are
shown?
Exercise 3.3 – Benford’s Law
Refer to the file ‘Exercise No 3.3 - Benford's Law’
Consider the closing prices as given in the column F of the above file. Test whether they conform to the pattern
suggested by Benford’s Law.
Exercise 3.4 – Gap Detection
Refer to the file ‘Exercise No 3.4 – Gap Analysis’
There is a list of all invoices raised during the financial year 2017-18. We suspect that some invoices are missing.
Identify whether invoices are indeed missing. If yes, also come up with a list of all such invoices which are missing.
Exercise 3.5 – Sampling
Refer to the file ‘Exercise No 3.5 - Sampling’
This file contains a list of 5000 accounts. You are required to draw out a sample of 1000 accounts, using Data Analysis
feature (Analysis Toolpak add-in).

D. Exercise on Excel as an Audit Tool Part-1

Exercise 4.1: File Import and Statistics Case Study ELM3
As we know using CAATs, we can import text/ flat, database and other files into MS-Excel for analysis. You are
required to import the file tab delimited text file named Exercise4.1_DetailedSales.txt in “Excel_Audit_Tool” folder. Once
the file has been successfully imported, you get the “Exercise4.1_Statistics.xls” file available in the “Excel_Audit_Tool”
folder. You are required to generate Descriptive Statistics for the field Sales_Plus_Tax through the Data MenuData
AnalysisDescriptive Statistics. A screenshot of the imported file is as follows:

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Students are advised to view the detailed steps for this Case Study in the e-Learning module on Using MS-Excel as an
Audit Tool named as ELM3 in this chapter.
Note – For above use Exercise4.1_DetailedSales.txt and Exercise4.1.xlsx file from EXCEL_AUDIT_TOOL folder.
Exercise 4.2: Stratification Case Study ELM3
As we know that using CAATs/ GAS, these tools enable us to Stratify Data, for example aging analysis. This
stratification can be also done in MS-Excel by first defining the strata to which an item belongs using the IF function and
then summing up values belonging to respective strata using SUMIF function of MS-Excel and count items belonging to
respective strata using COUNTIF function. The File named Exercise4.2_Stratification.xls in the EXCEL_AUDIT_TOOL
folder contains the Detailed Sales file that we had imported into MS-Excel in the earlier Case Study. You are required to
stratify the Sales_Plus_Tax values for Number of Items and Sum of Items belonging to following strata’s: (a) Less Than
10000, (b) 10001 to 20000, (c) 20001 to 100000 and (d) Above 100000.
Students can view detailed steps for Stratification in the Case Study by this topic in e-Learning module on “Using MS-
Excel as an Audit Tool”
Note – For above use Exercise4.2_Stratification.xlsx file from EXCEL_AUDIT_TOOL folder.
Exercise 4.3: Duplicate and Gap Detection Case Study ELM3
CAAT/ GAS tools enable us to find Duplicates and Gaps. Duplicates and Gaps can also be detected using MS-Excel.
The process is very simple: Sort the items and check whether there is a gap/ or duplicate in the list by viewing if the
subsequent item number is same or has a gap above one digit.
Students can view detailed steps for detecting Duplicates and Gaps in the Case Study by this topic in e-Learning
module on “Using MS-Excel as an Audit Tool”
Note – For above use Exercise4.3_Gaps-Duplicates.xlsx file from EXCEL_AUDIT_TOOL folder.
Exercise 4.4: Sorting Case Study ELM3
Students are required to sort the invoices in Detailed Sales sheet from Sample.xlsx file from EXCEL_AUDIT_TOOL
folder and sort ascending on INV_DATE.
Note – For above use Exercise4.4_Sample.xlsx file from EXCEL_AUDIT_TOOL folder.
Exercise 4.5: Aging Analysis Case Study ELM3
Aging Analysis is an example of Stratification. Students are required to age invoices from Exercise4.5_Aging.xlsx file
for upto one month, upto two months, up to three months and above three months. Students can view detailed steps for
Aging Analysis Case Study by this topic in e-Learning module on “Using MS-Excel as an Audit Tool”.
Note – For above use Exercise4.5_Aging.xlsx file from EXCEL_AUDIT_TOOL folder.

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Exercise 4.6: Pivot Table Case Study ELM3
Pivot Tables are a great facility in MS-Excel to summarise data and generate reports. Aging Analysis can also be done
using Pivot Tables. Students are advised to go through the Case Study by this topic in e-Learning module on “Using
MS-Excel as an Audit Tool” to have a deeper understanding on use of Pivot Tables and practice using the
PivotTableReport.
Note – For above use Exercise4.6_ PivotTableReport.xlsx file from EXCEL_AUDIT_TOOL folder.
E. Exercise on Excel as an Audit Tool Part-2
Exercise 4.7: Importing Data from MS Access in MS Excel ELM3
Note – Here use Exercise4.7_XYZ_CORP.dbf file from EXCEL_AUDIT_TOOL folder.
Exercise 4.7a: Exporting Data from MS Excel to Text File format. ELM3
Note – Here use Exercise4.7a.xls file from EXCEL_AUDIT_TOOL folder.
Exercise 4.8: Benford’s Law Case Study ELM3
Note – Here use Exercise4.8_BenfordCS.xls file from EXCEL_AUDIT_TOOL folder.
Exercise 4.9: Summarization Case Study New
Sales data is given for Ms. ABC & Co. Based on the data create a pivot table and verify total sales as per customers.
Also do the following
 Verify whether the transactions are within the financial year.
 Summarize Net Amount by Date to find daily sales.
 Summarize Employee ID by Commission paid.
 Summarize Employee ID by Net Amount.
 Summarize transactions as per Discount rate.
Note – Here use Sales sheet from Exercise4.9_Summarization.xlsx file from EXCEL_AUDIT_TOOL folder.
Exercise 4.10: Data Extraction Case Study New
Sales data is given for Ms. ABC & Co. Based on the data identify and extract transactions of customer with highest
sales.
 Extract records with blank Invoice Numbers.
 Extract records with blank Addresses.
 Extract records made by a selected employee.
 Extract transactions of customer with highest value of sale (using sub-total and sort)
Note – Here use Exercise4.9.xlsx file from EXCEL_AUDIT_TOOL folder.
Exercise 4.11: Consolidation of Data Case Study New
Here students are requested to find the sum of expenses of April, May and June as per head of account to prepare
total expenses of the quarter.
Note – Here use Exercise4.9.xlsx file from EXCEL_AUDIT_TOOL folder.
Exercise 4.12: Compute 7th of next month New
Computing due dates of statutory payments based on invoice dates. Used to check whether payment has been made
on or before due date.
Note – Here use Exercise4.12.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.13: Compute 90 days vs. 3.0 months from Invoice Date New
Computing exact due dates for debtors, tender cut-off date, project deadline

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Note – Here use Exercise4.13.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.14: Compute Days from given list of Dates. E.g. Sunday, Monday etc. New
 Derive day (e.g. Saturday, Sunday) to analyse sales data (day-wise sales trend), locating ghost employees if
their date-of-join falls on Sunday, ensuring deadline dates does not fall on a Sunday
 Representing dates in “dd/mm/yyyy” format as required while uploading dates during e-filing of VAT returns
Note – Here use Exercise4.14.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.15: Cleaning dates from ERP downloaded “DD.MM.YYYY” format in to Excel acceptable
“MM/DD/YYYY” format New
Pre-requisite step before applying date-based Sorting, Filtering and applying Date formulas such as =EDATE (),
EOMONTH (), TEXT () etc.
Note – Here use Exercise4.15.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.16: Adding Subtotal at the end of every Category of item New
Documentation of Inventory items by Category, Fixed Asset items by Asset Class

Note – Here use Exercise4.16.xls from EXCEL_AUDIT_TOOL folder.

Exercise 4.17: Cleaning Database – Deleting the Errors New
Remove the errors based on the given data. (Final Documentation & Reporting)
Note – Here use Exercise4.17.xls from EXCEL_AUDIT_TOOL folder..
Exercise 4.18: Filling up Blank cells with appropriate date pieces to enable use of Filter & Pivot table New
Prepare ERP downloaded raw data file (e.g. Vendor Master, Transaction files) for further analysis
Note – Here use Exercise4.18.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.19: Debtors Ageing New
Preparing ERP downloaded raw data file (e.g. Vendor Master, Transaction files) for further analysis
VLOOKUP (lookup_value, table_array, col_index_num, range_lookup) with range_lookup as <True>
Note – Here use Exercise4.19.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.20: Finding Instances of Duplicates New
Finding how many times a particular Invoice No. / Voucher No. may have been duplicated.
Note – Here use Exercise4.20.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.21: Removing Duplicate Names to arrive at unique list New
Preparing a list of vendor names, client names, product names. Eliminating duplicate names will help us arrive at a list
that has unique names.
Note – Here use Exercise4.21.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.22: Using Goal seek New

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Computing the values of the precedent cells for the desired result.
To determine at what sales levels the enterprise would break even

 With the sales quantity of 15 units, profit would be 1050

 We need to calculate with how many sales units the enterprise could achieve a BEP by using What-if-Analysis.
Note – Here use Exercise4.22.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.23: Precedents & Dependents New
Precedents: Shows arrows that indicate what cells affect the value of currently selected cell
Dependents: Shows arrows that indicate what cells are affected by the value of currently selected cells
Determine the cells that are affecting the value so Gross amount in the example below

Note – Here use Exercise4.23.xls from EXCEL_AUDIT_TOOL folder.

Exercise 4.24: Using IF function New
Note – Here use Exercise4.24.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.25: Two Way Lookup Command New
Branch A of a Bank has carried out various Foreign Exchange (FX) Transactions during the year. As an auditor you are
required to be review the FX Rates applied as against the Card Rate published by the bank for the day. Transactions
are different currencies viz. EUR, USD, GBP, INR.
Identify the cases wherein the FX Rates other than Card Rates have been applied. Charging excess rate from
customer for FX Conversion is a Customer Service issue and also against regulatory guidelines. As against the same
charging lesser rate from customer for FX Conversion is a Revenue Leakage for bank.
Note – Here use Exercise4.25.xls from EXCEL_AUDIT_TOOL folder.
Exercise 4.26: Case Study of Payroll Frauds New
You are performing internal audit of ABC Company and have decided to perform the following tests to confirm whether
fraud has been committed in payroll. The tests with sample data, results and additional test to be performed are given
here.
Example 1:-
Identify whether salary has been paid only to employees in employee master file.
Files to use:

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 1. Employee master file.
2. Payroll file
Tests to Perform:
Compare Employee ID’s in Employee Master file with Employee ID’s on Payroll.
Steps to perform Test:
Step 1: In the Employee_Master file, use the following Excel formula:
=VLOOKUP (B2, Payroll! $B$2:$B$17, 1)
Step 2: Use Excel’s Auto-fill function to apply the formula to all the records.

Inference:
 The results show all rows where ID’s do not match with the payroll file.
 (#N/A) are records that exist in the Employee Master file but not in the Payroll file indicating that some
employees have not been paid salary.
 Employees who have been terminated (Employee ID: JD & AD) should not have appeared in the Payroll file
but they do and have possibly been paid salary even though they are no longer with the company.
Step 3: In the Payroll file, use the following Excel formula:
=VLOOKUP (B2, Employee_Master! $B$2:$B$16, 1, FALSE)
Step 4: Use Excel’s Auto-fill function to apply the formula to all the records.

Inference:
 The results show all rows where ID’s do not match.
 (#N/A) are records that exist in the Payroll file but not in the Employee Master file indicating that salary has
been paid to employees that are no longer with the company.
Example 2:-

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Identify whether any employees are vendors.
Files to use:
1. Employee master file.
2. Vendor master file
Tests to Perform:
Compare Employee Addresses to Vendor Addresses
Steps to perform Test:
Step 1: In the Employee Master file, use the following Excel formula:
=VLOOKUP (F2, Vendor_Master!$C$2:$C$12,1,FALSE)
Step 2: Use Excel’s Auto-fill function to apply the formula to all the records.

Inference:
The results show employees whose address matches the address of vendors indicating that these employees may
have created fictitious companies to defraud their employer.
Example 3:-
Identify whether there are Ghost employees to whom salary has been paid.
File to use:
1. Payroll file.
Tests to Perform:
Compare Employee Addresses to Vendor Addresses
Steps to perform Test:
Identify employees who have paid salary but don’t have an address.
Step 1: In the Payroll file, click on the Data menu and select the Filter function.
Step 2: Click on the drop down box on the bottom-right of the “Employee Address”, “Employee ID”, etc. cell. Click on
the “Select All” check box to de-select all the options. Then, select only the “(Blanks)” option. Click OK.

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Inference:
The results show all records where employee address or the employee ID is blank.
Additional tests:
 Please check whether employees in employee master file are without address.
 Please identify employees whose address is different in employee master and payroll file.
 Re-compute net salary in payroll to identify errors in payroll computation.
Example 4:-
Identify whether there are any duplicate payment to same employee.
File to use:
1. Payroll file.
Tests to Perform:
Identify duplicate employee Id.
Steps to perform Test:
Step 1: In the Payroll file, select the column to perform duplicate check (Employee ID) click on the Home tab and
select the Conditional Formatting function. Select Highlight Cell Rules and select the Duplicate Values… function.
Step 2: In the dialog box that pops up, click OK.

Inference:
The results show duplicate payments where same employee is been paid twice for the same month.
Additional Tests:
 Verify whether there are two employees are having same phone no.
 Generally, limit is related to seniority of scale. Hence, higher the salary, higher would be limit. Compare limit
as per department with salary and identify whether there is any inconsistency.
 Summarise salary of payroll as per department.
Exercise 4.27: Case Study of Purchase frauds New
Purchases are a critical area which is prone to fraud and hence auditor has to perform tests to confirm whether data is
correct and complete and to test for potential areas of fraud. The tests with sample data, results and additional test to
be performed are given here.

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Example 1:-
Identify whether there are any employees who are vendors by verifying common address.
Files to use:
1. Employee master file.
2. Vendor master file
Test to Perform:
Compare Employee address in Employee Master file with Vendor address in vendor master.
Steps to perform Test:
Step 1: In the Vendor_Master file, use the following Excel formula:
=VLOOKUP (C2, Employee_Master!$F$2:$F$16,1,FALSE)
Step 2: Use Excel’s Auto-fill function to apply the formula to all the records.

Inference:
The results show vendors whose address matches the address of employees indicating that these may be fictitious
vendors created by employees.
Example 2:-
Identify whether there are any employees who are vendors by verifying common address.
Files to use:
1. Purchase file.
Test to Perform:
Find duplicate invoice numbers in purchases.
Step 1: In the Purchases file, select the column to perform duplicate check (Invoice Number) click on the Home menu
and select the Conditional Formatting function. Select Highlight Cell Rules and select the Duplicate Values…
function.
Step 2: In the dialog box that pops up, click OK.
Step 3: To view only the duplicates, click on the Data menu and select the Filter function.
Step 4: Click on the drop down box on the bottom-right of the “Invoice Number” cell, select the Filter by Colour option
and click on the colour under either Filter by Cell Colour or Filter by Font Colour.

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Inference:
The results highlights duplicate invoice numbers in the Purchase file with the same invoice number for purchases made
from different vendors on different dates which is highly unlikely. This could also indicate records where the same
invoice has been split into multiple invoices and entered to overcome purchase limits put on employees.
Example 3:-
Identify Favourable treatment of Vendors and classifying vendors by value
Files to use:
1. Purchase file.
Test to Perform:
Step 1: In the Purchases file, select all the data in the worksheet (Ctrl + A), then click on the Insert tab and select
Pivot Table. In the resulting dialog box, click OK.
Step 2: Drag “Name” from the PivotTable Fields dialog box and drop it under Rows. Drag “Amount” and drop it under
Values.

Inference:
 The results show the total amount purchased from each vendor indicating favourable treatment given to one
vendor (STAG ENTERPRISES) over all others.
 Purchases with no vendor name are also displayed under the (blank) category. These are all purchases
where the name of the vendor has not been entered into the Purchase register. To view the purchases made
by each vendor, double-click the name of that vendor.
Example 4:-
Identify Purchases by employees over their transaction limit
Files to use:
1. Employee Master file
2. Purchase file.

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Test to Perform:
Step 1: In the Purchases file, use the following Excel formula:
=VLOOKUP (I2, Employee_Master!$B$2:$H$16,7,FALSE)
Name this column: Limit
Step 2: In another column, use the following Excel formula: =J2-H2. Name this column - Difference
Step 3: In the Difference column, click on the drop down box on the bottom-right of the cell, select the Number Filters
option and select Greater Than. Type “0” in the dialog box that appears and click OK.

Inference:
The results show all records where the Purchase amount which exceed the authorised transaction limit and by what
amount.
Additional Tests:
 Verify whether all purchases are accounted are within the financial year.
 Identify if there are issues with each of the fields by identifying whether all invoices are in sequence.
 Identify whether there are any duplicate Purchases.
 Identify whether same vendor has multiple addresses.
 Summarise sales as per vendor name and vendor address and compare the two o check whether there is
difference between these and identify the reasons.
 Re-compute purchases and verify whether these are entered correctly based on unit price and quantity.
Exercise 4.28: Case study of Sales frauds New
A sale is a critical area which has to be verified by auditors and has high potential of fraud. Sample data with exercises
to test fraud are given here.
Example 1:-
Verify whether all sales invoices issued are in serial order (sequence) as per invoice number.
Files to use:
1. Sales file
Test to Perform:
Step 1: In the Sales file, create a blank column to the right to the Invoice Number column. Then, select the Invoice
Number column (it is suggested that you create a copy of this column first), click on the Data tab and select Text to
Columns. In the resulting dialog box, click Next. In the next step under “Delimiters” select the check box beside
“Other:” and enter “/” in the text box beside it. Click next to preview the results and then click Finish. Name this new
column InvNo

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Step 2: Create a blank column beside InvNo, type the first number in the sales invoice sequence (1001) then click
Enter and type the next number in the series (1002) in the next row. Use Excel’s Auto-fill function to fill the series up to
the last record in the file. Name this column Series
Step 3: Create a blank column beside Series and use the following Excel formula: =E2-D2. Name this column
Variances
Step 4: Select Data Tab and select Filter option.
Step 5: In the Variances column, click on the drop down box on the bottom-right of the cell, select the Number Filters
option and select Does Not Equal. Type “0” in the dialog box that appears and click OK.

Inference:
The results show all records where there is a discrepancy in the series of invoice numbers.
Example 2:-
Re-compute Net Amount and Commission to find variances
Files to use:
1. Sales file
Test to Perform:
Step 1: In the Sales file, in a blank column, re-compute the difference between Gross amount and Discount to get Net
Amount by using the following Excel formula: =I2-J2. Name this column Net Amount re-computed.
Step 2: In a blank column, compute the difference between Net Amount and Net Amount re-computed by using the
following Excel formula: =K2-O2, Name this column Difference.
Step 3: In the Difference column click on the drop down box on the bottom-right of the cell, select the Number Filters
option and select Does Not Equal. Type “0” in the dialog box that appears and click OK.

Inference:
The results show all records where there is a variance in net amount entered and re-computed net amount.
Step 4: In the Sales file, in a blank column, re-compute Commission by using the following Excel formula:
=O2*(M2/100). Name this column Commission re-computed.

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Step 5: In a blank column, compute the difference between Commission and Commission re-computed by using the
following Excel formula: =Q2-N2. Name this column Diff Commission.
Step 6: In the Diff Commission column click on the drop down box on the bottom-right of the cell, select the Number
Filters option and select Does Not Equal. Type “0” in the dialog box that appears and click OK.

Inference:
The results show all records where there is a variance in commission entered and re-computed based on re-computed
net amount.
Example 3:-
Identify if there are any transactions made on Sunday.
Files to use:
1. Sales file
Test to Perform:
Step 1: In the Sales file, in a blank column, use the following Excel formula:
=TEXT (A2, "dddd")
Name this column Day of Week
Step 2: Click on the drop down box on the bottom-right of the “Day of Week” cell. Click on the “Select All” check box
to de-select all the options. Then, select only the “Sunday” option. Click OK.

Inference:
The results show all records where the sale has been made on a Sunday.
Example 4:-
Find transactions which are 3 times the average sale amount to verify documentation and confirm correctness.
Files to use:
1. Sales file
Test to Perform:
Step 1: Compute the average sale amount using the following Excel formula:

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 =AVERAGE (G2:G351)
Step 2: Multiple the average by 3. (answer: 53786.21)
Step 3: In the Net Amount column click on the drop down box on the bottom-right of the cell, select the Number
Filters option and select Greater Than. Enter the 3 times the average amount (53786.21) in the dialog box that
appears and click OK.

Inference:
The results show all records that are greater than 3 times the average sale amount. These invoices may be reviewed in
detail to verify whether these are correct.
Additional Tests:
 Verify whether the transactions are within the financial year.
 Compute sales as per month and identify whether there are any discrepancies.
 Verify whether sales computations are correct.
 Compute the % of discount and verify whether any of these are outside the regular pattern.
 Summarise sales as per name to identify customers with high value of sales.
 Verify invoice numbers and identify whether there are any discrepancies in invoice numbers.
Summarise transactions as entered as per employee id and identify any issues of concern.

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 Solutions for Case Studies - MS – Excel as Audit Tool
A. Exercise on Excel as an Audit Tool Part-1
Exercise 4.1: Statistics Case Study
Output

Exercise 4.2: Stratification Case Study

Output

Exercise 4.3: Duplicate and Gap Detection Case Study

Output

Exercise 4.4: Sorting Case Study

Output

Exercise 4.5: Aging Analysis Case Study

Output

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B. Exercise on Excel as an Audit Tool Part-2
Exercise 4.6: Importing Data from MS Access in MS Excel
Output

Exercise 4.7: Exporting Data from MS Excel to Text File format.

Output

Exercise 4.8: Benford’s Law Case Study

Output

Exercise 4.9: Summarization Case Study

Output
Here students are requested to create a Pivot Table on the Sales sheet in Exercise4.9_Summarization.xlsx file.

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Step 1: In the Exercise4.9_Summarization.xlsx file select sheet “Sales”, select all the data in the worksheet, then
click on the Insert tab and select Pivot Table. In the resulting dialog box, click OK.
Step 2: Drag “Name” from the PivotTable Field List dialog box and drop it under Row Labels. Drag “Net
Amount” and drop it under Values.

Inference:
 The results show the total sales for each customer.
 You can sort the above as per name or amount in ascending or descending order. For example sorting
(descending) by Sum of Net Amount will show (MK CONSUMABLES) has the highest sales.
Exercise 4.10: Data Extraction Case Study
Output
Here students are requested to create a Pivot Table on the Sales sheet in Exercise4.9_Summarization.xlsx file and
extract transactions of customer with highest sales.
Step 1: In the Exercise4.9_Summarization.xlsx file select sheet “Sales”, select all the data in the worksheet, then
click on the Insert tab and select Pivot Table. In the resulting dialog box, click OK.
Step 2: Drag “Name” from the PivotTable Field List dialog box and drop it under Row Labels. Drag “Net Amount” and
drop it under Values. (as given in Exercise 4.9)
Step 3: Sort on “Sum of Net amount” in descending order select cell under Sum of Net Amount in Pivot Table and Go
to > Data tab > Sort & Filter section > select Z to A to get customer with highest total sales on top of the row.
Step 4: Double click the customer name with the highest total amount (MK CONSUMABLES). This will extract the sales
of this customer and display as below the list of sales of this customer in a new sheet.

Inference:
The results show the extract of all transactions made by the customer (MK CONSUMABLES) during the financial year.
Exercise 4.11: Consolidation of Data Case Study
Output

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Here students are requested to find the sum of expenses of April, May and June as per head of account to prepare
total expenses of the quarter.
Step 1: Create a blank worksheet, click on the Data tab and select the Consolidate function.

Step 2: In the dialog box, click on the formula box beside Browse ( ), select the Exp_April file and select all the
records in column B and column C (including the column headings). Now click on the formula box again to return to the
dialog box (you should have the formula Exp_April! $BA$1:$C$30) in the box under Reference: Now, click Add in the
dialog box to add this reference to the box under All references.
Repeat this process for the Exp_May file (Exp_May! $B$1:$C$30) and Exp_June file (Exp_June! $B$1:$C$30)
Step 3: Tick the check box beside Left column. Click OK.

Inference:
The results show a consolidated, quarterly view of all expenses as per head of account.
Exercise 4.12: Compute 7th of next month
Output
Here students are requested to use formula =EOMONTH (start_date, months)
The formula =EOMONTH (A7, 0) with “0” as parameter helps compute end of Current Month [first picture]. Adding 7
after the end of this formula helps jump the resulting date 7 days ahead [second picture].

Exercise 4.13: Compute 90 days vs. 3.0 months from Invoice Date
Output
Here students are requested to use formula =EDATE (start_date, months)
Adding “90” to the Invoice Date will compute due dates based on days. The resulting due date may be different from
the due date based on 3.0 months calculation as shown in the second picture.

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Exercise 4.14: Compute Days from given list of Dates. E.g. Sunday, Monday etc.
Output
Here students are requested to use formula ==TEXT (value, format_text)

Exercise 4.15: Cleaning dates from ERP downloaded “DD.MM.YYYY” format in to Excel acceptable
“MM/DD/YYYY” format
Output
Pre-requisite step before applying date-based Sorting, Filtering and applying Date formulas such as =EDATE (),
EOMONTH (), TEXT () etc.
Applying date based formulas on dates stored in DD.MM.YYYY format will result in errors as Excel reads date in
MM/DD/YYYY format. Sort, Filter, Pivot Table and other such techniques will not work correctly unless the date is
corrected as per Excel Standards i.e. MM/DD/YYYY format.

Step 1: Select affected dates

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Step 2: Select Data Tab->Text to Columns

Step 3: Text to Columns (Step 1 of 3) Delimited

Step 4: TEXT TO COLUMNS (Step 2 of 3) -> Turn-off all checkboxes [e.g. Tab, Comma etc.

Step 5: TEXT TO COLUMNS (Step 3 of 3) -> “Date” drop-down list -> DMY -> “Finish” button

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Step 6: Result: Internally, all dates turn into MM/DD/YYYY [refer cell A6]. Although, the skin (presentation) can be
modified to DD-MMM-YY as shown in the subsequent step.

Step 7: Select cells -> Right-click -> “Format Cells” -> “Date” option -> Choose appropriate format for display-
presentation of dates

Exercise 4.16: Adding Subtotal at the end of every Category of item

Output
Step 1: Select the data go to > Data tab > Sort & Filter section > select the Sort option. In the dialogue box sort the
Data as per the Column (e.g. Name) based on which the Subtotal is needed.

Step 2: Select the entire data > go to Data tab > under Outline section > Select Subtotal.

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Step 3: “At each change in:” – Name | “Use function:” – Sum | “Add Subtotal to:” – Amount, and click ok.

Step 4: The Subtotal adds an extra row with Subtotals at the end of every “Name”, The data will automatically be
grouped according to the name of the vendor.

Exercise 4.17: Cleaning Database – Deleting the Errors

Output
Step 1: Select data -> Press <Ctrl> <G> together to activate “Go To” box.

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Step 2: Choose “Special” button from the “Go To” box -> Choose “Formulas” with “Errors”

Step 3: The above mechanism helps select all the cells with errors simultaneously. Pressing <delete> key will help
delete the errors in one go.

Exercise 4.18: Filling up Blank cells with appropriate date pieces to enable use of Filter & Pivot table
Output

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Step 1: Choose affected range of columns/cells

Step 2: Press <Ctrl> <G> together to activate “Go To” box -> Choose “Special” button from the “Go To” box -> Choose
“Blanks”

Step 3: Write formula in the first selected cell keeping the "Blank" range selected -> Press <Ctrl> <Enter> together to fill
the formulas in the entire region of "Blank" range selected.

Exercise 4.19: Debtors Ageing

Output
Step 1: Write =VLOOKUP () and choose lookup_value. Then choose table_array i.e. “reference table” on the right as
shown, press <F4> to lock the range ($)

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Step 2: Choose col_index_num as 2 since “Age Bracket” values are in the second column of the “Reference table”,
then choose range_lookup as <True> since the “Reference table” refers to a data in “greater than equal to” format in
the first column and is sorted in ascending order.

Step 3: Drag the formula so written to subsequent cells downwards to pull the “Ageing Bracket” value based on “Days
due for”

Exercise 4.20: Finding Instances of Duplicates

Output
Step 1: Write =COUNTIFS () and choose criteria_range1 as illustrated.

Step 2: Press <F4> to lock the selected range ($)

Step 3: Choose criteria1 as the Invoice No.

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Step 4: Copy the formula and paste it subsequent cells as shown.

Exercise 4.21: Removing Duplicate Names to arrive at unique list

Output
Step 1: Select Data and after choosing the data set, DATA tab -> “Remove Duplicates"

Step 2: The resulting dialog box with “Vendor Names” ticked on should be continued with.

Step 3: “Remove Duplicates” keeps the first instance of the unique name and deletes the duplicates occurring
thereafter.

Exercise 4.22: Using Goal seek

Output
Step -1: Go to > Data Tab > Select What-if Analysis > Select Goal Seek - As shown in below figure

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Step -2: Select the relevant information as shown in below figure and press OK

We can see that at profit level zero i.e. at break-even the sales units are 12.

Exercise 4.23: Precedents & Dependents

Output
Step 1: Select any cell in the column Gross Amount and to trace the precedents Go to Formula Tab > Formula Auditing
Section > Select Trace Precedents function.

The cells affecting the values in Gross amount column have been identified and arrow marks are placed over them.
Step 2: To determine the dependents of a particular cell select the cell, Go to Formula Tab > Formula Auditing section
> Select Trace Dependents function.

The arrows are pointed towards corresponding Discount Cell & Commission paid cell & also the Totals – this signifies
that the values of these cells are affected if there is any change in the value of the selected cell.
** To remove the arrows from the workbook Go to Formula Tab > Formula Auditing section > Select Remove Arrows.
Exercise 4.24: Using IF function
Output
Here =IF (B6>300,"Good","Poor") helps us to determine the grade of a salesman E based on his performance.

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In the above example the salesmen have been grouped only in two groups however in the following example using IF
function multiple times the classification can be increased.
Here =IF(B12<150,"Poor",IF(B12<450,"Good","Excellent")) helps us to determine the grade of salesman K based on
the performance the classification would be based on sales affected i.e. <150units = Poor, 150-450 = Good, >450 =
Excellent.

Exercise 4.25: Two Way Lookup Command

Output

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 4.
Database Application Using MS - Access
A. Introduction
Use Database software such as MS Access for importing, exporting and consolidating data from/to multiple formats as
required and perform data analysis for assurance, collecting and evaluating evidence, performing what if analysis and
reporting.
Case
Sr. No. Chapter Title Exercise
Studies
Unit 6 Database Application Using MS - Access
1 Advanced SQL Queries 8 -
2 Designing Forms & Reports 11 -
3 Building Criteria Expression 2 -
4 Macros and Switchboards 7 -
Total 28
Note – The practical illustrations on use of MS-Access have to be solved using the Apex Database available in MS-
Access Folder of the Practice Manual. This database contains the following Tables:
Table Name Fields
1. Company Company Name, Company Detail, Credit Limit
Customer No, Salutation, First Name, Last Name, Company, Street, City, State, Country, Pin, Phone,
2. Customer
Email, Credit Limit
3. Payment Invoice Number, Line No, Date Paid, How Paid, Amount Paid
Invoice No, Sales Order No, Types Of Invoice, Invoice Date, Source Of Order, Payment Term, Paid,
4. Invoice
Comments, Posted
Item Number, Class, Category, Description, Manufacturer, Model, Last Inventory Date, Cost, Cost
5. Inventory From Mfg., Retail, Last Order Date, Expected Delivery, Amount Ordered, Quantity In Stock, Quantity
On Order, Reorder Point, Reorder Quantity
6. Sales Item Sales Order No, Line Number, Item Number, Quantity, Unit, Price, Discount, Shipped, Ship Date,
Description Ship Qty.
Sales Order No, Sold To Customer, Sales Date, Ship Date, Payment Term, Shipped Via, Tax,
7. Sales Order
Freight, Other

B. Chapter 1 : Advance SQL Queries

Exercise 1.1: Sub Queries SM1
Rohit is an Accountant in Apex Ltd. At the closing of the quarter, he has to check the Invoices for which the payments
are made in Quarter-I of year 2008.
Solution
Student is requested to create a query to retrieve all records from Invoices table for which the Payment Date in
Payments table lies in Quarter-I i.e. between 1/1/2008 and 4/30/2008. Since we do not require any details from
the Payments table, we use the table in a sub-query.
For Result please refer to Page No 3 of Study Module – I.
Exercise 1.2: Unmatched Queries SM1
Ankur Mathur, Sales Head of Apex Ltd. wishes to reduce the production of few products. To analyse which products
should not be produced further, he needs to find out the products which have not been ordered so far.

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Solution
For the purpose of finding the unmatched products in Sales Item Description, students are requested to use
Unmatched Query Wizard and find out products from Inventory table which do not have a matching Item Number in
Sales Item Description table.
For Result please refer to Page No 9 of Study Module – I.
Exercise 1.3: Duplicate Queries SM1
Varun Gupta, a Chartered Accountant in Apex Ltd., is required to audit the invoices and the payments. While tracking
the payments he noticed that multiple invoices have been created for a single sales order. To sort out the things, he
wishes to check all the sales order having duplicate invoices.
Solution
For above requirement, student are requested to use Find Duplicates Query wizard for table Invoices based on the field
Sales Order Number so that it displays all the duplicate invoices created for a single sales order.
For Result please refer to Page No 14 of Study Module – I.
Exercise 1.4: Grouping & Summarising Records using criteria SM1
The Country Head in Apex Ltd. wishes to compute the sales volume of its products. He also would like to see the
number of orders placed for each product, so that they can focus on products with greater sales volume.
Solution
Here students use a Total query that calculates the count of orders placed for each product and arrange them in
descending order of the counts so as to find the products which are sold more.
For Result please refer to Page No 17 of Study Module – I.
Exercise 1.5: Grouping & Summarising Records using a Crosstab Query SM1
The company Apex Ltd. wishes to revise the credit limit of its customers. For this purpose, Ashish, the PRO needs a
summary report that indicates the count of orders placed by each customer in every month of last financial year i.e.
2011-2012.
Solution
To obtain the desired summary report, students are requested to create a Crosstab query on table Sales Order with
month of Sales Date as row heading, Customer Number as column heading and count of Sales Order Number as
values.
For Result please refer to Page No 28 of Study Module – I.
Exercise 1.6: PivotTable and PivotChart SM1
The Head of Sales Department in Apex Ltd. has demanded a Sales Summary report for review. The following are the
desired requirements: the sales of the products can be viewed in terms of Year, Quarters and Months; the report should
enable the user to view the products filtered by Category.
Solution
To create this Summary report, students are requested first to create a query that displays the Products and their
Category, Sales amount of each product, and also the date on which they were sold. Then to create summary sheet,
create a PivotTable view of the query having
a) Category field as a filter b) Product field on row c) Year, Quarter and Month on columns and Total Sales (which is
computed as Quantity sold into Product cost) displayed as values
For Result please refer to Page No 34 of Study Module – I.
Exercise 1.7: Joining Tables in Queries SM1
The Operations Regional Head of Apex Ltd. is required to produce a report giving the details of the payments received.

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For this purpose, two reports are required to be prepared:
 First report indicating the Invoices for which payments have been made, including the invoice and
payments detail.
 Second report displaying a list of all the sales order, their invoices and details of payments, including
those invoices for which payments have not been received.
Solution
To get the desired result, student are requested to create two queries as a) First query to fulfil the requirement using
inner join between tables Invoice and Payments and b) Second query to achieve the second requirement which
includes Sales Order, Invoice and Payments tables with a left outer join between Invoice and Payments tables.
For Result please refer to Page No 51 of Study Module – I.
Exercise 1.8: Calculated Fields SM1
Ramit, an executive in Apex Ltd. is required to produce a report displaying all the sales orders which contains the field
Total Amount Paid as a sum of Tax, Freight and Other Charges.
Solution
Here students are requested to create a query on table Sales Order with a calculated column Total Amount Paid
computed as a sum of Tax, Freight and Other Charges.
For Result please refer to Page No 59 of Study Module – I.

C. Chapter 2 : Designing Forms & Reports

Exercise 2.1: Form - Adding Unbound Control SM1
The database Apex Inventory Shipment has a form frmOrders, based on table Sales Order which keeps track of all the
orders placed. The Sales Manager wishes to add a current date on the form, so that it becomes easy for the user to
keep track of dates.
Solution
Here students are required to add an unbounded control, a label to the form and sets its property to store the current
date.
For Result please refer to Page No 69 of Study Module – I.
Exercise 2.2: Adding Graphics to Form SM1
The Database Developer wants to make a form frmOrders more presentable and thought of adding a picture to the
background of this form.
Solution
Here students are required to set the picture as form background using the image control. Select the picture to be
added, draw the image control and adjust its properties to make image as a background.
For Result please refer to Page No 71 of Study Module – I.
Exercise 2.3: Adding Unbound Control (Text Box) SM1
The Manager wishes to add another date in a form frmOrders, which may indicate when the order will reach customers.
This date can be computed as 15 days after the date of shipment.
Solution
Here students are required to add a textbox to the form. This textbox contains calculated value, which is computed as
15 days + date of shipment.
For Result please refer to Page No 74 of Study Module – I.
Exercise 2.4: Adding Unbound Control (Combo box) SM1

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The executives are making many mistakes while typing the reference of the customer to which orders are sold. The
Sales Manager asked the Database Developer to find the solution to this problem.
Solution
The Database Developer thought that it will be a good way to add a combo box for the customers. Users will have an
option to choose the value from the list or type a new value if required, thereby decreasing the typing mistakes.
For Result please refer to Page No 78 of Study Module – I.
Exercise 2.5: Adding Unbound Control (Calendar) SM1
Database Designer of Apex Ltd. has designed the frmOrders form to be used for Sales Orders table. The Supervisor of
the Customer Service Group informs the designer that people taking orders often need to refer to a calendar to answer
customer questions, such as when they will receive a shipment. A calendar is necessary so that customer service
employees can take weekends & holidays into account when they make an estimate as to when orders will be shipped.
Solution
Here students are required to add a Calendar control to all the date fields to make the form convenient for the users. A
calendar control can be added for Sales Date and Ship Date for users to pick up date graphically.
For Result please refer to Page No 85 of Study Module – I.
Exercise 2.6: Form Design SM1
The Sales Manager asks the Information Analyst to store the information of the customer which could be displayed in a
friendly manner, such that the customer’s personal details and company details can be viewed separately.
Solution
Here students are advised to divide the information into separate tab in a form. One tab in the form should contain
customer contact detail, while the other can contain customer’s company details, and third tab can contain customer’s
terms with the company.
For Result please refer to Page No 89 of Study Module – I.
Exercise 2.7: Displaying Summary Data in a Form SM1
The Sales Manager wishes to see the summarized data of sales. He requests the Database Developer to create a form
in such a manner, that it should display the summarized data in terms of cost of Item Sold per year, per country. For
example, he needs a report displaying summary of the items sold country wise and state wise in year 2008 Quarter-2.
Solution
Here students are advised to create a query based on table Sales Order, Customers, Sales Item Description, and
Inventory and fetches the required data from it. Once query is created, then a form using pivot table option is created
over the query.
For Result please refer to Page No 93 of Study Module – I.
Exercise 2.8: Advanced Reports – Creating Customized Header & Footer SM1
The Database Developer has prepared a report rptCustomers to display all the details of the customers. The Zonal
Sales Head requires the report to be customized; each page of the report must contain the Report Title at the top and
date & time at bottom.
Solution
Here students are advised to add a Page Header & Footer to the report and customizes the Page Header to hold a
label with Report Title, and Page Footer to contain the date & Time using Date Time control.
For Result please refer to Page No 97 of Study Module – I.
Exercise 2.9: Advanced Reports – Adding Calculated Values SM1

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The Sales Head wishes the customer name should be displayed as a complete name, not as first name and last name.
He requests the Database Developer to implement the change.
Solution
Here students are required to add calculated value that concatenates first name and last name in the report
rptCustomers and replaces the First Name and Last Name textboxes.
For Result please refer to Page No 102 of Study Module – I.
Exercise 2.10: Advanced Reports – Sub Report SM1
The Regional Head notices that the database users face a big problem while tracing the orders placed by each
customer. He asks the Database Developer to create a user-friendly object which can display both the customer’s
details and orders placed by the customer.
Solution
Here students are required to add a sub report to the report rptCustomers which include details of the orders placed by
the customers. For this purpose, the table Sales Order is used and the fields Sale to Customer from Sales Order and
Customer Number from Customers are mapped.
For Result please refer to Page No 105 of Study Module – I.
Exercise 2.11: Advanced Reports – Adding Chart SM1
The Sales Head wishes to create a summary report. The report should show the quarterly total sales for each category.
The Sales Head requests the Information Analyst to show a diagrammatic representation of the report.
Solution
Here the best way to display the summary report is to create charts to represent the data. The charts can be included in
a report, and based on a query sales data to show its diagrammatic representation.
For Result please refer to Page No 109 of Study Module – I.
D. Chapter 3 : Building Criteria Expressions
Exercise 3.1: Using Functions SM1
Apex Ltd. is launching a new production unit in “California”, which will also focus on some new products. To promote
these products a detailed list of all existing customers from “California” (state code CA) is required.
Solution
Here students are required to create a query that displaying Name, Contact Info and Address of the customers is
required. To get only the customers from “California” the value CA in the criteria for the state field needs to be specified.
Here, CA is a literal operand and is typed direct in query criteria.
For Result please refer to Page No 124 of Study Module – I.
Exercise 3.2: Using Compound Criteria SM1
At the end of a quarter, Country Head of Apex Ltd. wishes to review the following data:
 A report displaying all sales orders placed in from January to March 2008.
 All inventory details from the “Car”, “Snowmobile”, and “Boat” categories along with the details of the order
placed for them.
 A list of all the products that were sold with a quantity greater than 5 or the price greater than 1000.
 A contact list for all Customers whose first name starts with A, B or C.
Solution
For creating the query containing the report of Sales Order, the query will be created on the Sales Order table, using
“Between” and “And” operator in query criteria.
The inventory details query will contain the Inventory table and Sales Item Description. The query criteria will be based

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on the IN operator.
For obtaining the list of products, query needs to be based on Inventory and Sales Item Description containing
compound criteria.
To retrieve the contact list of Customers, query will be based on the Customers table and the criteria for the first name
will contain the LIKE operator.
For Result please refer to Page No 131 of Study Module – I.

E. Chapter 4 : Macros and Switchboards

Exercise 4.1: Creating Macro SM1
Kanika Mathur, a sales executive in Apex Ltd. is required to send a detailed report of all the orders that have been
placed today to the Sales Head every evening in a form of an Excel sheet, also the same sheet also has to be
uploaded in a shared folder for delivery to check. She thought to automate the process of transferring records so as to
save the efforts required.
Solution
Here students are required to create a macro that transfers the table Orders into Excel and stores it in a shared folder
using the TransferSpreadSheet Action. Then, use Send Object Action to mail it to the Sales Head.
For Result please refer to Page No 163 of Study Module – I.
Exercise 4.2: Attaching Macro SM1
Based on the above problem scenario in the Orders form add a button that enables the user to export and mail the
table.
Solution
Here students are required to add a button on the form and attach a macro to the click event of the button.
For Result please refer to Page No 166 of Study Module – I.
Exercise 4.3: Restricted Macro using Where Condition SM1
In the Database Apex Inventory Shipment, as an enhancement to the Orders form, the Manager wishes to see the
details of the Customer who has placed the order.
Solution
Here students are required to add a command button to the form. On the click event of the command, a macro will be
created that displays the Customers form restricted to the Customer Number for the order.
For Result please refer to Page No 172 of Study Module – I.
Exercise 4.4: Validating Data using a Macro SM1
In the frmOrders form Rahul Sharma, the database developer in Apex Ltd. is asked to place a check on the Item
Number field. It is to be ensured that Item Number should not be left blank.
Solution
Here students are required to add a macro that will be embedded on the Click event property of the Save Command
Button. This macro will check if the Item Number is blank and will display a message accordingly.
For Result please refer to Page No 180 of Study Module – I.
Exercise 4.5: Automating Data Entry using a Macro SM1
In the frmOrders form, the Operational Manager wishes to see the total cost of the order, which would be computed as
Quantity ordered * price of an Item.
Solution

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Here students are required to add a text box as Total Order Cost to the form and a macro is created on the Exit event
of price to compute the total cost of an order. This macro first checks the value of Quantity is not null and then
computes Total Cost.
For Result please refer to Page No 186 of Study Module – I.
Exercise 4.6: Creating a Database Switchboard SM1
Employees of Apex Ltd. need to keep updating the company database frequently for various reasons. However,
employees are confused over the interface that appears when the application is started. The application developer
wishes to resolve this confusion by providing a clear and concise environment in which users can reduce the amount of
time spent figuring out how to obtain the information they are looking for.
Solution
Here students are required to create a Switchboard form that contains buttons to open the Customers and Inventory
tables and the frmOrders form needs to be created. Since switchboard is not capable of opening the tables directly
through the Command button, so students must create macros to open the Customers and Inventory tables named as
MacroCust and MacroInvent respectively.
For Result please refer to Page No 193 of Study Module – I.
Exercise 4.7: Modifying Database Switchboard SM1
The developer noticed that the switchboard created in earlier example is not giving a professional look. He wishes to
add the company logo to the switchboard. In addition, he wants to add a new button to the switchboard which will help
the user to create an excel copy of data and mail it to the manager.
Solution
Here students are required to add a company logo to the switchboard by modifying the switchboard in the Design view.
To add a new button to the switchboard, use the Edit option in Switchboard Manager. Also create a command button to
execute the macro MailCurrentOrders which was created in earlier example.
For Result please refer to Page No 202 of Study Module – I.

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 5.
ERP
A. Introduction
Understand key concepts of Information technology deployment, modules, implementation aspects, selection and key
functionalities of Enterprise Resource Planning (ERP) package which include configuration, user creation, access
rights, audit logs, reporting, exporting data for relevant reports, reviewing controls, e-filing, etc.
Sr. No. Chapter Title Exercise Case Studies
ERP
1 ERP Overview - -
2 ERP Implementation - -
3 ERP Control and Audit 17 1
4 E - Filing 4 -
Total 21 1

B. Chapter 1 : ERP Control and Audit

Exercise 1.1 Security Control Exercise ELCD1
Create Security Levels as given below.

Sr. Name of Back Dated

Type of Access
No. Security Level Access
Masters
Transactions
Accounts Inventory
1 Manager 30 Create, Alter, Display Create, Alter, Display Create, Alter, Display, Print
2 Accountant 7 Create Create Create, Display, Print
3 Operator 1 Display Only Display Only Create Only
4 Auditor 0 Display Only Display Only Display Only
5 Remote Manager 30 Create, Alter, Display Create, Alter, Display Create, Alter, Display, Print
6 Remote Auditor 0 Display Only Display Only Display Only
Create User IDs and allocate security levels as under

Sr. No. Name of User User ID Security Level

1 Pankaj Deshpande Pankaj Manager
2 Swapnil Ghate Swapnil Manager
3 Amit Shirwas Amit Accountant
4 Mayura Rahane Mayura Operator
5 Nivedita Dighe Nivedita Auditor
6 Sumeet Thawri Sumeet Auditor
7 You <Use your actual email ID> Remote Manager
9 Your Auditor <Use one more actual email ID> Remote Auditor

Exercise 1.2 How to have a bird’s eye view over master and transaction data in any Tally company? New
Solution
Go to Gateway of Tally > Display > Statement of Accounts > Statistics. This report shows information about master and

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transaction data recorded in any tally company. This can be seen for any period as per selection.
Exercise 1.3 How to have a bird’s eye view over all the transactions in a tally company? New
Solution
Go to Gateway of Tally > Display > Trial Balance, press F12 and set as under. This report shows trial balance with
opening balance, debit total, credit total and closing balance. This helps a user to check overall transactions recording
in all the ledgers, either group wise or alphabetically.

Exercise 1.4 Count total numbers of credit transactions in all the debtor ledgers New
Solution
Go to Gateway of Tally > Display > Account Books > Group Vouchers. Select the group as sundry debtors. Set the
period as required. Press F12 and set “Credit Entries Only” in “Select Vouchers to Show”.
Exercise 1.5 Count total numbers of cash payments to all the creditors New
Solution
Go to Gateway of Tally > Display > Account Books > Group Vouchers. Select the group as Sundry Creditors. Set the
period as required. Press F12 and set “Debit Entries Only” in “Select Vouchers to Show”. Press Alt + F12 and set as
under.

Exercise 1.6 Identify highest amount of cash payment to any party New
Solution
Go to Gateway of Tally > Display > Account Books > Group Vouchers > Cash-in-Hand group. Press F12 and set
“Credit Entries Only” in “Select Vouchers to Show”. Sorting method as “Amount Decreasing”.

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Exercise 1.7 Identify numbers of ledgers not used in current year. New
Solution
Go to Gateway of Tally > Audit & Compliance > Audit & Analysis > Verification of Chart of Accounts > Not Used.
Exercise 1.8 Identify numbers of stock items not used in current year. New
Solution
Go to Gateway of Tally > Audit & Compliance > Audit & Analysis > Verification of Stock Items > Not Used.
Exercise 1.9 Identify numbers of sales bills pending. New
Solution
Go to Gateway of Tally > Audit & Compliance > Audit & Analysis > Pending Documents
Exercise 1.10 Identify numbers of purchase bills pending. New
Solution
Go to Gateway of Tally > Audit & Compliance > Audit & Analysis > Pending Documents
Exercise 1.11 Identify ledgers with highest relative size factor. New
Solution
Go to Gateway of Tally > Audit & Compliance > Audit & Analysis > Relative Size Factor
Exercise 1.12 Identify numbers of vouchers altered after audit. New
Solution
Go to Gateway of Tally > Display > Statement of Accounts > Tally Audit > Voucher Types or Users > Check Altered
Exercise 1.13 Identify numbers of newly created / unaudited vouchers. New
Solution
Go to Gateway of Tally > Display > Statement of Accounts > Tally Audit > Voucher Types or Users > Check Entered
Exercise 1.14 Exercise 1.2 Identify transactions on holidays. New
Solution
Go to Gateway of Tally > Audit & Compliance > Audit & Analysis > Other Analysis > Transactions on Holidays.
Exercise 1.15 Identify stale cheques / instruments. New
Solution
Go to Gateway of Tally > Audit & Compliance > Audit & Analysis > Other Analysis > Stale Cheques / Instruments
Exercise 1.16 Identify stock items with negative stock balance. New
Solution
Go to Gateway of Tally > Display > Exception Reports > Negative Stock
Exercise 1.17 Identify debtors having credit balances. New
Solution
Go to Gateway of Tally > Display > Exception Reports > Negative Ledgers

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C. Chapter 2 : E-Filing
Exercise 2.1: Service Tax 1 ELCD1
Name Of Output Services : Courier Services
Details Of Billing For Output Services And Receipts
Bill Value Of Services Education Higher Secondary Total Total Amount
Date Name Of Party Total
No. Service Tax @ 12% Cess @ 2% Edu. Cess @ 1% Tax Received On
e=
a b = 12% of a c = 2% of b d = 1% of b f = a+e
b+c+d
Telco Constr.
01.04.2014 1 10,000 1,200 24 12 1,236 11,236 05.05.2014
Equip. Co. Ltd
Bank Of
09.04.2014 2 35,000 4,200 84 42 4,326 39,326 25.11.2014
Maharashtra
Parikh
15.04.2014 3 5,000 600 12 6 618 5,618 29.04.2014
Enterprises
Telco Constr.
05.05.2014 4 7,000 840 17 8 865 7,865 10.05.2014
Equip. Co. Ltd
Bank Of
20.05.2014 5 8,000 960 19 10 989 8,989 24.09.2014
Maharashtra
Central Bank Of
31.05.2014 6 9,000 1,080 22 11 1,112 10,112 Not Received
India
Bank Of
08.06.2014 7 25,000 3,000 60 30 3,090 28,090 20.09.2014
Maharashtra
Parikh
18.06.2014 8 15,000 1,800 36 18 1,854 16,854 18.06.2014
Enterprises
Central Bank Of
29.06.2014 9 8,000 960 19 10 989 8,989 14.08.2014
India
Sandal
15.07.2014 10 20,000 2,400 48 24 2,472 22,472 16.09.2014
Enterprise
Telco Constr.
27.07.2014 11 7,000 840 17 8 865 7,865 15.12.2014
Equip. Co. Ltd
Central Bank Of
21.08.2014 12 50,000 6,000 120 60 6,180 56,180 11.09.2014
India
Bank Of
10.09.2014 13 25,000 3,000 60 30 3,090 28,090 06.10.2014
Maharashtra
Central Bank Of
20.09.2014 14 42,000 5,040 101 50 5,191 47,191 10.10.2014
India
Bank Of
06.10.2014 15 12,000 1,440 29 14 1,483 13,483 07.11.2014
Maharashtra
2,78,000 33,360 667 334 34,361 3,12,361

Details Of Payment Towards Input Services

Value Of Service Tax + Amount Paid Description Of Input
Date Of Bill Bill No. Name Of Party Total
Services Cess @ 10.3% On Services

15.05.2014 YF/582 Youth Force Security 4,000 412 4,412 16.06.2014 Security Services
04.07.2014 T00082 Bharat Sanchar Nigam Ltd 2,000 206 2,206 15.07.2014 Telephone Services
15.07.2014 MP-336 Micropro Software Solutions 5,000 515 5,515 14.11.2014 Repairing And Maintenance
20.08.2014 636 Hotel Centre Point 10,000 618 10,618 20.09.2014 Mandap Keeper Services
17.09.2014 33 Photo Fast 3,000 309 3,309 15.10.2014 Photography Services
15.10.2014 S-023 Shells Advertising Inc. 7,000 721 7,721 25.10.2014 Advertising Services

Exercise 2.2: Service Tax 2 ELCD1

Sonali, Raveena and Karishma decided to start business in partnership under name SRK Enterprises. The decided to
enter into service industry and started providing beauty parlour service, heath club service and interior decoration
service.
Following are the transactions of billing along with receipt details during the year 2014-15

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Sale of Service:
H.S.
Bill Value of Service Edu. Received Amount
Date Party Description Edu. Total
No. Service Tax Cess on Received
Cess
Enrolled for membership
Balwan
1 01.04.2014 of Health Club for three 10,000 1,200 24 12 11,236 01.04.14 11,236
Khan
months.
Enrolled for membership
2 02.04.2014 Funny Deol of Health Club for six 17,500 2,100 42 21 19,663 02.05.14 19,663
months.
Registered for monthly
B. membership of beauty
3 01.05.2014 15,000 1,800 36 18 16,854 01.07.14 16,854
Aishwarya parlour for the month of
May 2010
Registered for monthly
membership of beauty
4 02.05.2014 M. Rani 12,500 1,500 30 15 14,045 02.05.14 14,045
parlour for three months
starting from 01.05.10
Entered into a contract
for changing interior of
5 01.06.2014 K. Akshay his flat. The work was 2,50,000 30,000 600 300 2,80,900 02.06.14 2,80,900
completed and bill was
raised.
Entered into a contract
for renovation of interior
6 02.06.2014 R. Hritik of his office. The work 3,50,000 42,000 840 420 3,93,260 01.07.14 3,93,260
was completed and bill
was raised.
Renewed his
Balwan membership of health Not
7 01.07.2014 12,500 1,500 30 15 14,045
Khan club for three more received
months.
Enrolled for membership
8 02.07.2014 Baby Deol of Health Club for six 20,000 2,400 48 24 22,472 02.07.14 12,000
months.
Renewed her
B. membership for beauty
9 01.08.2014 40,000 4,800 96 48 44,944 15.11.14 44,944
Aishwarya parlour for three months
starting from 01.08.10
Renewed her
membership for beauty
10 02.08.2014 M. Rani 15,000 1,800 36 18 16,854 22.11.14 16,854
parlour for three months
starting from 01.08.10
Enrolled for membership
of Health Club for three
11 01.09.2014 R. Hritik 12,500 1,500 30 15 14,045 01.11.14 14,045
months starting from
01.10.10
Enrolled for membership
B. of Health Club for three Not
12 02.09.2014 10,000 1,200 24 12 11,236
Aishwarya months starting from received
01.10.10
7,65,000 91,800 1,836 918 8,59,554

Purchase of Service:
H.S.
Value of Service Edu. Amount
Bill No. Date Party Description Edu. Total Paid on
Service Tax Cess Paid
Cess
Bill received for audio
Yash Raj
YRS/046 01.04.2014 recording of jingle for 13,000 1,560 31 16 14,607 02.05.14 14,607
Studios
TV advertisement.
Shetty Bill received for
SSS/054 02.04.2014 Security providing 2 security 15,000 1,800 36 18 16,854 02.05.14 16,854
Services guards for office.

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 Bill received for office
T/07659 01.05.2014 BSNL 15,000 1,800 36 18 16,854 01.07.14 16,854
telephone bill.
Bill received for
arranging a party for
554 02.06.2014 Hotel Taj prospective customs. 75,000 9,000 180 90 84,270 02.07.14 84,270
(Mandap Keeper
Service)
Bill received for
Jagdish
667 02.07.2014 photography at taj 20,000 2,400 48 24 22,472 01.11.14 10,000
Mali
hotel party
1,38,000 16,560 331 166 1,55,057

Payment of Service Tax:

1. Paid service tax for the quarter April to June on 02.07.14 after deducting CENVAT Credit.
2. Paid service tax for the quarter July to Sep on 02.10.14 after deducting CENVAT Credit.

Exercise 2.3: TDS 1 ELCD1

Type of Deductor: - Partnership Firm (Non-Government) TAN of Head Office: N.A.
TAN: - TRKD53565N Ward: - Ward (1)
Following are the details of payments made during 2010-11
Total Net
Name Deductee Reason for TDS Nature TDS
Sr Date PAN Expendit TDS Paymen
of Party Status payment of payment Rate
ure t
Payment to
S. For execution
contractor
Gandhi Company- RFTCS7657 of painting
1 01.04.14 (other than 2% 75,000 1,500 73,500
Controls Resident G contract for
advertisement
Ltd. office building
)
Payment to
For execution
S. contractor
Company- HTYCV545 of painting
2 02.04.14 Pawar (other than 2% 50,000 1,000 49,000
Resident 4D contract for
Pvt. Ltd. advertisement
office building
)
Payment to
For execution
contractor
Man Individual- AGIPM0879 of plumbing
3 02.04.14 (other than 1% 25,000 250 24,750
Mohan Resident N contract for
advertisement
office building
)
Certification
Fees for
Partnershi AAEFP7381 of Cash & 10,00
4 01.05.14 PWC professional 10% 1,00,000 90,000
p Firm C Bank 0
services
Balance
Rent for
Individual AGUPG398
5 02.05.14 Nitin G. office Rent 10% 40,000 4,000 36,000
Resident 9K
premises
C.C. Rent for
Individual ARGPC443 Rent for office
6 02.05.14 Enterpri office 10% 25,000 2,500 22,500
Resident 4L premises
ses premises
Interest on Interest other
Pranav Individual POHPM231
7 01.06.14 unsecured than interest 10% 15,000 1,500 13,500
M. Resident 2B
loan on securities

AICITSS - Advanced Information Technology Practice Manual Page 64 of 68

 Total Net
Name Deductee Reason for TDS Nature TDS
Sr Date PAN Expendit TDS Paymen
of Party Status payment of payment Rate
ure t
Ramnat Interest on Interest other
Partnershi LPIFR1427
8 01.06.14 h Singh unsecured than interest 10% 20,000 2,000 18,000
p Firm V
& Co. loan on securities
C. Interest on Interest other
PLMPM432
9 02.06.14 Prasad Individual unsecured than interest 10% 25,000 2,500 22,500
4M
Madhav loan on securities
Payment to
Road show
Maha RTYPM123 contractor
10 02.06.14 Individual arrangement 1% 10,000 100 9,900
Maya 4L (advertisemen
s
t)
Amar & Partnershi PLMFA9876 For gathering
11 02.06.14 Brokerage 10% 30,000 3,000 27,000
Co. p Firm G crowd

Exercise 2.4: TDS 2 ELCD1

Following are the transactions entered into with Image India Inc.
Name of Expenses: Advertisement Expenses Party Image India Inc.
Deductee Status: Individual / HUF Resident PAN of Deductee: ABCDT1234J
Nature of Payment: Payment to Contractors (Advertisement)

Voucher Voucher Net

Date Particulars Billing TDS
No. Type Payment
01-05-14 P01 Payment Advance given Rs. 1,00,000 1,000 99,000
02-05-14 J01 Journal Bill received for services 2,00,000 1,000
03-05-14 P02 Payment Amount demanded by Party Rs. 3,00,000 2,010 2,97,990
04-05-14 J02 Journal Bill received for services 4,00,000 1,990
05-05-14 P03 Payment Amount demanded by Party Rs. 3,00,000 1,030 2,98,970
06-05-14 J03 Journal Bill received for services 1,00,000 -
07-05-14 J04 Journal Bill received for services 50,000 470
08-05-14 P04 Payment Amount demanded by Party Rs. 5,00,000 4,535 4,95,465
09-05-14 J05 Journal Bill received for services 6,00,000 1,465
10-05-14 P05 Payment Final payment - 1,45,075
Total 13,50,000 13,500 13,36,500

AICITSS - Advanced Information Technology Practice Manual Page 65 of 68