Author: CA (Dr.

) Mitil Chokshi
Co-Authors: CA Priyanshi Chokshi, Parsh Chokshi
Acknowledgements to
Jay Vakil, CISA, BE, DBM Chief System Architect Dytel Technology Group,
P. Shreekanth ACA Digital Transformation & Risk Intelligence (Electronic Fraud)
© WESTERN INDIA REGIONAL COUNCIL OF
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

Published by
CA. Lalit Bajaj, Chairman, WIRC, Western India Regional Council of
The Institute of Chartered Accountants of India,
ICAI Tower, Plot No. C-40, G Block, Opp. MCA Ground,
Next to Standard Chartered Bank, Bandra-Kurla Complex,
Bandra (East), Mumbai-400 051
Tel.: 022-336 71400 / 336 71500 • E-mail: [email protected] • Web.: www.wirc-icai.org

Disclaimer
Opinions expressed in this book are those of the Contributors. Western India Regional Council of The Institute
of Chartered Accountants of India, does not necessarily concur with the same.
While every care is taken to ensure the accuracy of the contents in this compilation, neither contributors nor
Western India Regional Council of The Institute of Chartered Accountants of India is liable for any inadvertent
errors or any action taken on the basis of this book.

ii Western India Regional Council of The Institute of Chartered Accountants of India

Foreword
Digitisation is a vital feature of our profession today and includes measures taken by
a Practicing unit to implement a framework comprising IT Governance & Policy, Cloud
Infrastructure and Security in order to deliver best services to clients.

&RQYHUVDQW ZLWK FXUUHQW WUHQGV DFFRXQWLQJ ÀUPV KDYH HQGHDYRXUHG WR UDSLGO\ VFDOH XS WKHLU
operations to meet growing client demands. While many have succeeded in their efforts
at company-wide digitisation, systematic guidance in this arena is much appreciated by all
stakeholders.

Taking these factors into consideration, I am pleased that this highly relevant

HSXEOLFDWLRQ WLWOHG ¶7KH 1HZ 1RUPDO IRU 3UDFWLFLQJ &$ ² 'LJLWDO DQG 3DSHUOHVV 2඼FH 7KH
Way Forward’ is being made available for all. It will throw light on the digitisation of
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PHWLFXORXVO\ SUHSDUHG WR LQFOXGH DUHDV ZKLFK DUH RI SULPDU\ LPSRUWDQFH LQ DQ R඼FH

This publication is a practical guide to understand the various aspects of a digital office
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FDQ EH XVHG DV JXLGDQFH WR IRUP WKH IRXQGDWLRQ RI D ÀUP·V GLJLWLVDWLRQ VWUDWHJ\

Implementing a quality digital system goes a long way to assuring your practice is operating in
WKH EHVW SRVVLEOH ZRUNLQJ HQYLURQPHQW DQ HරHFWLYH DQG HVVHQWLDO FRPSRQHQW RI JRRG SUDFWLFH
PDQDJHPHQW 7KLV HJXLGH FDQ KHOS \RX PDNH \RXU ÀUP GLJLWDOO\ FDSDEOH DQG HQVXUH RSWLPXP
utilisation of processes.

, GHHSO\ DSSUHFLDWH WKH HරRUWV RI &$ 'U  0LWLO &KRNVKL SDVW &KDLUPDQ :,5& &$ 1LNXQM 6KDK
CA Priyanshi Chokshi, Parsh Chokshi, for contributing their valuable time and expertise towards
this endeavour. I compliment CA Manish Gadia, RCM, WIRC for co-ordinating and ensuring the
successful completion of this publication.

I also express my thanks and acknowledge Jay Vakil and P Shreekanth for their assistance
towards this publication.

, DP VXUH WKDW ¶7KH 1HZ 1RUPDO IRU 3UDFWLFLQJ &$ ² 'LJLWDO DQG 3DSHUOHVV 2඼FH 7KH :D\
)RUZDUG· SXEOLFDWLRQ ZLOO SURYH WR EH LPPHQVHO\ EHQHÀFLDO WR DOO RXU PHPEHUV DQG VWXGHQWV
We look forward to producing and disseminating increased number of relevant e-publications
for the betterment of all professionals.

CA. Lalit Bajaj

Chairman, WIRC

Western India Regional Council of The Institute of Chartered Accountants of India iii
Preface
We are pleased to present the e-publication on ‘The New Normal for Practicing CA – Digital
DQG 3DSHUOHVV 2඼FH 7KH :D\ )RUZDUG· 'LJLWLVDWLRQ LV QRZ DQ LQWHJUDO SDUW RI WKH DFFRXQWLQJ
profession as a service and more importantly for maintaining high quality standards for
practicing Chartered Accountants.

In the past year, WIRC has initiated the creation of quality e-publications which have been
made freely accessible to all members to enhance their professional knowledge base.

The current publication will provide guidelines to implement digitisation, improve productivity
DQG WKHUHE\ KHOS EXLOG FDSDFLWLHV LQ LQGLYLGXDO ÀUPV  , DP VXUH WKLV JXLGH ZRXOG EH RI PXFK
use to all members.

Digitisation requires strong commitment of management and inclusion of employees to create

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guidelines relevant to practicing Chartered Accountants in order to make it implementation
friendly. The guidelines intend furthermore to be strategies which enable members to provide
high client satisfaction.

Digitisation is the present and future of the profession and we hope that members take
advantage of this publication to strengthen and grow their practice. As an ongoing process,
the topic of digitisation has been addressed by WIRC in the past through various webinars,
workshops and discussions. This guide takes it further, to address requirements in a concrete
and lucid manner.

I take this opportunity to thank CA (Dr.) Mitil Chokshi, Past Chairman WIRC, CA Nikunj Shah,
CA. Priyanshi Chokshi, Parsh Chokshi for creating a truly relevant publication which will be
much appreciated by all members and students across the country.

I also appreciate the assistance given by Jay Vakil and P Shreekanth towards the creation of
this publication.

, DP FRQÀGHQW WKDW DOO PHPEHUV DQG RWKHU SURIHVVLRQDOV ZRXOG GHULYH PD[LPXP EHQHÀW IURP
this publication, enabling them to stay current, relevant and ahead of the curve in the present
scenario.

CA Manish Gadia
RCM, WIRC

iv Western India Regional Council of The Institute of Chartered Accountants of India

 WESTERN INDIA REGIONAL COUNCIL OF
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
2020-21

Chairman
CA. Lalit Bajaj

Vice-Chairman
CA. Vishal Doshi

Secretary
CA. Murtuza Kachwala

Treasurer
CA. Anand Jakhotiya

Members
CA. Abhijit Kelkar CA. Arpit Kabra
CA. Arun Anandagiri CA. Balkishan Agarwal
CA. Chintan Patel CA. Drushti Desai
CA. Hitesh Pomal CA. Jayesh Kala
CA. Kamlesh Saboo CA. Manish Gadia
CA. Priti Savla CA. Shilpa Shinagare
CA. Sushrut Chitale CA. Rakesh Alshi
CA. Umesh Sharma CA. Vikash Jain
CA. Vimal Agrawal CA. Yashwant Kasar

([2ઋFLR 0HPEHUV
CA. Nihar Jambusaria, Vice-President, ICAI
CA. Prafulla Chhajed, Past President, ICAI
CA. Aniket Talati CA. Anil Bhandari
CA. Chandrashekhar Chitale CA. Dheeraj Khandelwal
CA. Durgesh Kabra CA. Jay Chhaira
CA. Nandkishore Hegde CA. Shriniwas Joshi
CA. Tarun Ghia

Western India Regional Council of The Institute of Chartered Accountants of India v

 TABLE OF CONTENTS
LIST OF ABBREVIATIONS vii
FOREWORD viii
INTRODUCTION 1
, 6KLIW WR 0RGHUQ 2඼FHV 5
II. Need For Digitisation and its Impact - The New Normal 7
DIGITISATION OF CA FIRMS: FIRMS NEED A SURGICAL STRIKE TO RISE 11
I. Building The Right Infrastructure- Systemisation 18
II. Readiness Assessment - Skillset Workability, Integration, It Policy 24
III. Information Technology Policy 29
IV. Process Automation and Optimization 32
9 $UWLÀFLDO ,QWHOOLJHQFH ² 7KH &RYLG &RDO 37
VI. Data Analytics 42
VII. Blockchain Technology 47
VIII. The Internet of Things 54
IX. Cloud Based Audio and Video Conferencing 57
X. Remote Audit, Risk and Compliance, E-Fraud Assessment and Deterrence: 62
Traditional Vs Modern Audits
XI. Remote Consultancy 66
XII. E-Assessments 78
XIII. Human Resource Management System 85
XIV. Incident Management and Anomaly Correction 88
;9 5HÁH[LYH 0RQLWRULQJ 90
XVI. Virtual Leisure 91
ELEMENTS OF DIGITISATION 93
I. Security 93
II. Cognitive Participation 100
III. E-Productivity 100
IV. E-Documentation & Digital Library 102
V. Increased Transparency 104
STANDARDS FOR DIGITISATION 105
COMPETING WITH THE GLOBAL LANDSCAPE 108
CONCLUSION 111
I. Shifting Roles - Will We Really Need CAs? 111

Sr. Pg.
Particulars
No. No.
1. Annexure: Automated Processes (Illustrations) 117
2. Fraud Transactions 118
3. IRAC- Bank Audits 119
5. Investments 120
6. Forensics 122
7. 5HPRWH ,QYHQWRU\ 9HULÀFDWLRQ 123
8. Taxation 124
9. 7KH QHZ QRUPDO &$ ÀUP 125

vi Western India Regional Council of The Institute of Chartered Accountants of India

 LIST OF ABBREVIATIONS

AI $UWLÀFLDO ,QWHOOLJHQFH

CA Chartered Accountants

CaaS Consulting as a Service

COVID-19 Coronavirus Disease 2019

DLP Data Loss Protection

DLT Distributive Ledger Technologies

ERP Enterprise Resource Planning

FEMA Foreign Exchange Management act, 1999

HRMS Human Resource Management System

IAM Identity and Access Management

IDS Intrusion Detection Systems

IoT Internet of Things

IPS Intrusion Prevention Systems

IT Information Technology

JAM Jan Dhan-Aadhaar-mobile

LAN Local Area Network

PC Personal Computers

RPA Robotic Process Automation

SA Standards on Auditing

WFH Work From Home

Western India Regional Council of The Institute of Chartered Accountants of India vii
Foreword

In todD\·V GLJLWDO HUD DQ HරRUW KDV EHHQ PDGH WR SUHVHQW D UHVHDUFK SXEOLFDWLRQ RQ
Digitisation Of CA Firms by our past chairman CA (Dr.) Mitil Chokshi along with
CA Priyanshi Chokshi and Parsh Chokshi. We aim at providing our insights on what
GLJLWL]DWLRQ PHDQV IRU WKH PRGHUQ GD\ &$ ÀUP

viii Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Introduction
“Modern technology has elevated our imagination to an extent communication among
co-workers has become a mere facile activity.”
In the corporate sector, the technological advancements achieved in the past two
decades have brought about a major revolution, changing every aspect of our working
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attend meetings, or collaborate remotely, technology has become an integral part
of the modern business world. While these modern technologies present unbridled
opportunities and open various avenues for development and professional growth,
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Technology has changed the way people communicate in the modern workplace. The
arrival of smartphones, social networking sites, applications for virtual meetings has
brought communication to a whole new level. Communication among the employees,
or from management to subordinates, or from management to management has
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You can send emails, text or video chat or even videoconference with subordinates
or superiors through varied applications. With the help of technology, you no longer
need to be present at your workplace all the time. You can engage in other important
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WKH R඼FH WKURXJK YLGHR FKDWV DQG FRQIHUHQFH RU ZKLOH on-the-go.
Digitization in India over the past decade has been increasing at a steady rate,
however, since the pandemic there has been a stimulus for further expansion and
adoption. Technology and digital has been an integrated part of our crisis response,
and are used efficiently by the central as well as various state governments to
monitor, track and to contain the spread of the virus, map hotspots, to keep people
informed, and also to deliver welfare measures and citizen services, utilizing the Jan
Dhan-Aadhaar-Mobile Trinity.
Countries have been under lockdowns and this has called upon firms and offices
to revolutionize the way work is conducted and establish the same from home. The
dual challenges to our health and to our economies have forced us to rethink how
we work and how we live. But times of challenge can lead to incredible moments of
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It has made it imperative for the government, corporates, as well as consumers to
rely on digital channels for accessing goods, services, information, and entertainment.
Fortunately, the investments and capacity building we have undertaken over the years
through initiatives such as Digital India and Smart Cities have come handy, for the
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deliver relief measures.

Western India Regional Council of The Institute of Chartered Accountants of India 1

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

During this time, the ability to be online has been a lifeline to so many of us: whether
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on how to keep its group entities healthy, or a partner/business owner trying to keep
in touch with his employees.
From the excitement of young people using the latest apps and services, to the ways
people are using smartphones and video calling applications to connect to clients
on a national and international scale, every new piece of technology brings new
opportunities to learn and grow. One such application being Zoom — a formal and
informal video calling app that one can use with colleagues, family or even friends.
With the young discovering old ways to connect and the old connecting with the
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demographics of the Internet on its head. The global pandemic has supercharged the
adoption of digital tools.
Digital payments, for example, have enabled clients across India to access services
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Companies have been quick to incorporate new technologies, but the coronavirus
pandemic is now accelerating the digitalization of the corporate sector in such a way
that mostly organizations would continue to work from home, being the new normal
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have been empowered as they continue or embark on their digital transformation.
Thus, for the corporate sector, the change has been swift and dramatic. In a very
short period of time companies had to adapt to remote work arrangements and
the ones that were better prepared were able to manage the operations in a
seamless manner and minimize disruptions. Though the corporate sector has been
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technology usage and digital adoption to a new level, and now technology is fully
integrated into the day to day functioning of enterprises, from managing remote
work and employee engagement to managing customer experience, operations, as
well as supply chain networks and partner ecosystems. Digital platforms that support
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could very well permanently alter the pattern of business travel in the years to come.
As digital tools have been integral to crisis response, the relevance of technology in
managing and optimizing business operations is likely to only increase in the near
future.
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times/74858420.

2 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

The current situation has also forced our hand on business continuity planning
and investments in disaster recovery systems. Technologies such as virtual private
networks, end point security, data security, etc. have become more relevant in
the current context where the entire workforce is outside the perimeter of secure
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based infrastructure to virtual private networks and teleconferencing solutions are
enabling enterprises to manage work virtually. There is also an increasing focus
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cyber security systems, etc., and also in ensuring the availability of mobility devices
to enable remote working for employees. With major corporations around the world,
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term perspective, digitally enabled future of work tools will likely become an integral
part of core business operations. In the medium to long term, we could witness
an increasing adoption of emerging technologies such as data sciences, artificial
intelligence, internet of things, etc., as business look to operational transformation in
the changing global environment.
Corporates nowadays rely on business productivity software that provides many
tools to overcome challenges of executing on strategy every day. It enables
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immediate reinforcement or coaching to keep performance and deadlines on track.
This is another example of the role of technology in improving the productivity
and performance of the organizations. Access to new technology has enabled
the employees to do things faster with precision and has helped in discouraging
workplace distractions, thus raising productivity.2
From a client perspective, the current situation brought about a behavioral shift in the
usage of digital channels for receipt of services. This combination of behavior shift
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adopting work from home to survive and thrive in the changing market landscape.
Thus, the corporate sector has witnessed a massive shift towards digital provision
of services in this current external environment, and are likely to witness elevated
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point in their journey. It should be noted that the current environment of extreme
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DQG QHZ RU ROG ÀUPV WKDW DUH TXLFN WR DGDSW WR WKH FKDQJLQJ G\QDPLFV DQG VHL]H WKH

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Western India Regional Council of The Institute of Chartered Accountants of India 3

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

immediate opportunities are likely to survive through this phase and be better placed
to grow faster even amidst a pandemic.
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technology and digital adoption for corporates, big and small, alike, and technology is
also likely to play an important role in recovery as well. It’s important for the industry
participants to understand the strategic importance of technology and bring a strong
digital orientation in designing their services and experiences to obtain a competitive
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With respect to Chartered Accountancy firms, in particular, whose major work
is conducted from verification of physical documents and walkthroughs of their
client’s workspaces, the Covid situation was something unforeseen and hence the
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+HQFH WKLV VLWXDWLRQ FDOOHG IRU 0DLQVWUHDP 'LJLWLVDWLRQ
Let’s start with our understanding of the term digitization, within the ‘new normal’.
Digitization refers to the process of creating a digital representation of physical
objects or attributes, services in the context of professionals. For instance, a process
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into a digital representation or artifact. Once digitised, the same can be used for
various purposes online. Digitization is foundational. This is the connection between
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the processes that provide business value because of the need for consumable data.4
Digitization is the process by which analogue content is put into binary code to
be readable by the computer.5 Digital information, irrespective of where it is stored
on our Personal computers, laptops, tablets, among others; can be linked to other
materials to create multimedia, without degradation of the original. Digitization is
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future. Changing trends in research may alter the demand for services and access to
consumable data.
In a nutshell, especially during a pandemic, digitization would mean the process
of holistically shifting business operations and processes online, in order to enable
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HQWUHSUHQHXUFRPDUWLFOH
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QHHGBIRUBGLJLWL]DWLRQ

4 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

of automated processes in such a way that it is able to tackle any unforeseen

circumstance. It could be considered as a cure or an alternative remedy to an ailing
business unable to operate or cope with physical closure of business operations and
lack of employees, such as in a time like the one prevalent. This process requires an
overall plan to use use digital technologies to update, modify or completely revamp
a business model to provide for continued streams of revenue.
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must use that view to create a seamless, organic experience round the clock. The
volatility of the services provided calls for a more agile hybrid system and networking
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digital process and integrating the entire group of services with modern technology
to stay ahead of the curve. This entire process could be termed as a digital
transformation or D VXUJLFDO VWULNH WR GLJLWDO ÀUPV
India is digitising faster than most other countries. Forecasts post the outbreak of the
virus indicate that India has a growth potential of 435 billion dollars by 2025. This is
why the e-corporate sector ought to be capitalised upon by professionals and clients.

I. SHIFT TO MODERN OFFICES

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Counant,
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hire employees who would physically work therein approximately for a stipulated
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manually undertaken, leading to a wastage of time and resources, thus, reducing
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by negative informal communication commonly described as grapevine occurring
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are heavily monitored by the senior level management and employees. Employee
evaluation tends to be impersonal. Fixed costs such as rent, electricity and other
essential services cause employers to have year round costs and increase in their
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others, additionally used to boost employee performance lead to additional pressure
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factories. The traditional office involves a physical study of the clients business

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E\

Western India Regional Council of The Institute of Chartered Accountants of India 5

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

proceVVHV DQG WKHLU RYHUDOO QHHGV VXFK DV SK\VLFDO YHULÀFDWLRQ RI WKH FOLHQWV À[HG
assets/inventory or their accounting or information technology systems and manual
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which revolves around the importance of employee communication and rigid work
hours.

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PRGHUQ RQHV 0RGHUQ R඼FHV RIWHQ WHUPHG DV YLUWXDO R඼FHV WUHDW SK\VLFDO VSDFHV
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D VKRUWWHUP EDVLV E\ D YLUWXDO RIILFH SURYLGHU 7 The virtual office rents a mailbox
from a physical building, sets up phone and email services, and uses many of the
applications any other company might use. Communication is primarily mediated
through technology, including Information management systems, internal texting,
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hours, and ‘work from anywhere’ policies, among others. Instant connectivity is prized,
and all company recommended communication programs are effectively installed
and maintained, requisite training provided along with employee upskilling, to keep
everyone in the loop.

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in an increase in overall productivity since employees have the convenience to work
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overall accountability and judge employee performance on an individual basis,
enhance personal one on one interactions and also encourage employees to put in
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companies and their employees to collaborate in the simplest, most convenient and
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to the challenges brought on by these unprecedented times. As one would have
navigated the impact of the pandemic across his practice and with his clients,
he would have turned to technology and tools to continue operating as close to
‘business as usual’ as possible, while still adding value to his clients.

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6 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

II. NEED FOR DIGITISATION AND ITS IMPACT- THE NEW NORMAL
´$W OHDVW  RI DOO EXVLQHVVHV ZLOO GLH LQ WKH QH[W  \HDUV¬ LI WKH\ GRQ·W ÀJXUH RXW
how to change their entire company to accommodate new technologies.”
– John Chambers, Cisco System
Data is the new oil, but digitization is perhaps the modern day coal needed to
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professionals are able to keep up with deadlines and meet client needs. It is focused
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importance of a robust digital infrastructure and widespread digitization of services,
especially for a continued revenue stream.8
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already on the path to digitalisation would have seen this period of prolonged remote
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technology to meet changing times. Technology is becoming the key component for
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The most famous company which was the first one to apply the concept of
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LWV HQWLUH SURFHVV LQWR FORXGEDVHG VROXWLRQV DQG IRUJLQJ UHODWLRQVKLSV ZLWK VRIWZDUH
and technology vendors quite a departure from its previous approach. Both revenue
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WR  LQ  DQG  ELOOLRQ WR  ELOOLRQ UHVSHFWLYHO\
)RUZDUGWKLQNLQJ ÀUPV FRQWLQXH WR LQYHVW LQ QHZ WHFKQRORJ\ WR WKHLU DGYDQWDJH ZKLOH
FRQVHUYDWLYH ÀUPV GRQ·W SULRULWLVH WKLV Technology can unlock time and resources
within your practice to deliver an excellent client experience by applying automation
to tasks that don’t need those human qualities of intuition, empathy or mental agility.
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business insight, accountability and transparency.
While going digital is not new to the CA office, the pandemic has significantly
boosted the adoption of digital technologies, which is going to shape the future.
7KH QHZ QRUPDO SRVW WKH SDQGHPLF FDOOV IRU WKH &$ R඼FHV WR FRQGXFW WKHLU EXVLQHVV
operations, whether advisory or compliance based, virtually or remotely. Post the

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ZZZZROWHUVNOXZHUFRPHQJEH[SHUWLQVLJKWVDUH\RXVHWWRVWHHU\RXUFOLHQWVRXWRIXQFHUWDLQWLPHV

Western India Regional Council of The Institute of Chartered Accountants of India 7

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

SDQGHPLF EHLQJ DJLOH DGDSWLYH DQG ÁH[LEOH LV NH\ $QG LW·V RIWHQ LQ WLPHV RI FULVLV
that these kinds of seismic shifts take place. As new business models emerge and
cash positions remain cautious, companies will look for technology capabilities and
functionalities that directly impact business objectives. These will not only reduce
the cognitive load of repetitive tasks but also free up resources for next level work.
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with more employees dedicating their hours per project, rather than contractually
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anywhere and at any time.
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digitize workplace dynamics. The importance of digitization can be seen from a
simple, yet important, change of practice from using traditional calendars to using
digital ones to schedule that help to improve planning and focus instantly, and act
as constant reminders while working on our Personal computers, laptops or tablets.
Digital workflows can totally replace human interference in setting up routine,
repetitive, and mundane office tasks. Task management systems can be used to
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conducting remote audits, attendance of online court hearings and assessments and
automation of regular compliance based activities, while sitting at home.
The digitized office would also entail the use of Enterprise resource planning
or private clouds to manage enterprise functions including accounting, financial
management, project management, and procurement.
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professional services to cater to change in laws and reporting requirements during
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work from remote locations.
Consequently, automating routine tasks like data entry and complex calculations,
provides enhanced time for your team to put on their thinking cap, work more on
strategy and advisory related aspects and provide those services that your clients
value most viz. providing an insight into their future operations and cash flows,
EXLOGLQJ WD[ H඼FLHQW IXWXUH PRGHOV PLQLPLVLQJ DQ\ SRWHQWLDO VFRSH IRU OLWLJDWLRQ DQG
supporting their business ambitions and its growth, economically. Client service is

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8 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

often viewed as the most important driver of client satisfaction in a profession such
as chartered accountancy, as it is in many other industries and markets. After all,
accountancy has never been about numbers, it’s more about continued relationships
and enhanced client satisfaction.
The need for such digitization today, is felt now more than ever, with everyone in a
UDFH WR VXUYLYH DQG PRGHUQL]H 7KH EHVW ZD\ IRU D ÀUP RI DQ\ PDJQLWXGH WR WDFNOH
the crisis is by learning to be more agile, simplifying processes, work patterns and
taking steps to retain and engage customers. Life and operations may have changed
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faster we accept new things, the better we will be able to deal with the unfortunate
but different circumstances, going forward. I believe that’s at the core of every
organization.
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FRQYHQWLRQDO DVVXPSWLRQV KH KDG DERXW KRZ ÀUPV VKRXOG IXQFWLRQ 2QH VXFK P\WK
EHLQJ WKH IDFW WKDW \RX QHHG WR WUDYHO WR PHHW FXVWRPHUV DQG EH LQ R඼FH WR EH DEOH
to forge the right collaborations and inspire and engage employees. At many places,
productivity of employees has actually increased by working remotely. And where
employees are concerned, employees were never psychologically strengthened to
work from home. It’s a complex issue wherein people like to work from home twice
a week or thrice a week, but if you ask them to work from home for six months, the
loneliness catches up. Further, people in India are not really prepared for work from
home. While they may have internet and devices, houses are not really designed
for work from home. This can be quite trying, especially at a time when the entire
family has to compete for space where they can work or learn, undisturbed. We need
support systems to sustain the level of enthusiasm and productivity. Thus, while the
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their imagination and innovate in many creative ways. Deployment of technology has
become more democratised instead of tiered. Thus, the current crisis is actually an
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UHLPDJLQH KRZ WKH\ FRXOG FKDQJH WKHLU EXVLQHVVHV ZKLOH DVVXPLQJ WKH\ FDQ VWDUW
from scratch.
Thus, increased digitization will provide businesses with both opportunities and risks.
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forward, technology today will always be the mainstay around which such transitions,
across every facet of organisations, take place. Firms will fundamentally change how
they do things and reinvent everything from cost models and client engagement and
management to various other aspects of provision of services and catering to client
QHHGV )LUPV ZLOO DOVR KDYH WR WUXO\ OHYHUDJH GDWD EHLQJ UHDOWLPH DQG XVH DQDO\WLFV
to make decisions. The risk is that they will gravitate back to the old and leave
themselves vulnerable to the next big disaster by not learning from the current crisis.

Western India Regional Council of The Institute of Chartered Accountants of India 9

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

:H KDYH DOZD\V ZLWQHVVHG WKH KXJH SRWHQWLDO IRU DEVRUSWLRQ RI WHFKQRORJ\ +RZHYHU
people today have actually got a chance to embrace technology in a big way due to
this unusual situation.
Thus, the bottom line is technology and digitization is here to stay. It is imperative
WR PDNH LW SDUW RI HYHU\ R඼FH VSDFH VR WKDW KXPDQ HරRUWV FDQ EH GLYHUWHG WR PRUH
productive avenues.

10 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

DIGITISATION OF CA FIRMS:
FIRMS NEED A SURGICAL STRIKE TO RISE
“Every industry and every organization will have to transform itself in the next few
years. What is coming at us is bigger than the original internet and you need to
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— Tim O’Reilly, Founder and CEO of O’Reilly Media

The pandemic has indeed acted as a technology accelerator for several countries
including India. It has also made digital integration a vital organization continuity
enabler across verticals. When there’s a crisis it can go one of two ways — everybody
starts to butt heads or they start to collaborate. And underpinning these changing
needs and concerns will be a rise in the intensity of tech as more and more people
are starting to appreciate technology.
Back in 2000, CA offices were paper based, type writers were used to furnish
important information. From the days of the early typewriter to the growth of Internet
RI WKLQJV WHFKQRORJ\ KDV JURZQ OHDSV DQG ERXQGV DQG ZLWK WKLV PRGHUQ &$ ÀUPV
have left no stone unturned.
CA offices earlier were all about accounting skills involving verification from the
viewpoint of substance over form, considering materiality to form a true and fair view,
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A/c and Cash Flow Statement. While we were trying to cope up with the international
standards during all these years, there were drastic changes globally in an individuals
approach in carrying out their business. CA offices were all about understanding
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WUDGLWLRQDO GD\V ZH KDYH VHHQ D PDMRU GLJLWDO WUDQVIRUPDWLRQ LQ &$ ÀUPV LQ SDUWLFXODU
Digital, over the past few years has firmly established itself as one of the most
important factors driving innovation and consequent success and competitive
DGYDQWDJH IRU ÀUPV :LWK WKH DGYHQW RI WKH ‘Experience Era’, the medium has evolved
to become even more critical for enterprises to understand their clients and forge
meaningful relationships for the long term. As the world adapts to a new normal, the
rules for business success have changed and are ever more reliant on harnessing the
power of digital to create new values and experiences in times of disruption.
The pandemic has been a watershed moment for the digital transformation of
businesses and only ones that adapt and adhere to the new customers, evolved
expectations, communicate their messages with empathy, have a much higher chance
of succeeding.

Western India Regional Council of The Institute of Chartered Accountants of India 11

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

The process to cope up with industry automation so as to understand the overall

professional business environment is known as digital transformation. A simple
example of digital transformation is the transition from the use of the notebook to
store important information to using electronic devices to keep track of the same.
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transformation in the Communication sector.
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from the basic step of building the correct infrastructure, by systemizing. There are
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DQG FOLHQW H[SHULHQFH (QGWRHQG VHFXULW\ SROLF\ FXVWRPHU GDWD PDQDJHPHQW DQG
analytics across all three pillars can bring the digital experience to a whole new level.
By using a process that is centered around the client, a firm can create a digital
thread through to analyse data across the service lifecycle and create actionable
processes that add value.
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working away from our usual environment, working longer hours, or not working at
all. And where we, as professionals, are working we face new challenges that must
be overcome. The professional sector is going through a digital revolution, which
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solutions. The longer we face restrictions, the greater the challenge, however, the
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equipment and ventilators. These changes have been impressive and rapid, and show
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both the way and when work is conducted. The longer the world is fighting this
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innovative professional CA world.
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ourselves into making greater use of technology to conduct remote visits, be it
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about what documents we need to see and what format is acceptable. Changing
behaviour changes behaviour.
In such a scenario, digital technologies have been helping and advancing CA Firms
into the direction of innovation and disruption. Today, CAs have come to believe
that digital transformation will be a key enabler for unlocking unknown growth
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visibility, and cost. In order to actively achieve these, we believe, that the timely
application of technologies such as real time automated performance measurement

12 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

RI HPSOR\HHV DQG SHUVRQQHO FRQGLWLRQ PRQLWRULQJ RI PDFKLQHV GDWD ÁRZ ZLWK GLJLWDO
traceability, connectivity, adaption of the latest technology infrastructure, cloud based
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our digitization growth trajectory.
It is not only important to survive but equally important to stay relevant in this crisis.
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about ensuring continued relevance of the team, services and clients. The idea is to
use the digital medium of online meetings, webinars and technical trainings, to keep
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ORJLFDO ZD\ ZRXOG EH IRU PDQXIDFWXUHUV WR DXJPHQW WKHLU IURQWOLQH VWDර ZLWK WKH
ULJKW WHFKQRORJ\ WR LQFUHDVH WKHLU H඼FLHQF\ DQG SURGXFWLYLW\ WR FRSH ZLWK WKH FXUUHQW
workload and beyond. It would be opportune to mention here that the lurking fear
which the industry had about automation taking away jobs is now gradually being
replaced by a better understanding that on the contrary it will help improve business
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Remote and flexible working, is an old privilege but a new norm. 5HPRWH ZRUNLQJ
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With many of us now facing the prospect of that uncertainty lasting for an extended
period, powering your practice with the right tools will be important during this
pandemic.
Tools that have enabled secure online communication and collaboration, not only
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practiFHV KDYH ZLWQHVVHG SHUKDSV IRU WKH ÀUVW WLPH KRZ SURGXFWLYH WKH\ FDQ EH RXW
RI WKH R඼FH HQYLURQPHQW

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recognition technologies that enable a person to appear before a virtual background
to preserve the privacy of home. To keep up with the digital age, training on such
concepts and the overall digital considerations need to be kept in mind before
commencement of any audit which is being managed in the Digital environment.

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Western India Regional Council of The Institute of Chartered Accountants of India 13

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Instead of hiring more and more office space, many may adopt more flexible
operational structures going forward. This would be a huge change with huge
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talent from all across the country now to your practice.

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networking events, packed seminars; all could become a thing of the past.
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the daily routines of millions in India’s urban clusters. Business travel and daily
commutes may sharply fall, with teams having realised that they are more productive
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We are likely to see more virtual events, both on the national and international scale,
being held in the future, long after the necessity to work remotely has passed. While
we may be navigating the challenges of creating engaging virtual content for the
time being, it’s likely that many exhibitors and presenters will become more adept at
delivering virtual content in an engaging and compelling way. We will witness how
professional skills are put to use in the future.

We will also witness a more intentional and permanent shift of compliance and
approval routines, digitally signed contracts, securely authenticated approvals, digital
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disaster recovery systems thus leading to cost and time savings, increased productivity
and deeper resilience against such future shocks.
If past economic downturns have shown accountants anything, it’s that those who
were in the best shape to make the most of the economic upturn when it came,
succeeded despite the uncertainty. Accountants are in prime position to be the
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Investing in people, technology and relationships, and adapting practice management
and collaboration in the new normal, is ultimately not just a strategy for making it out
of an economic downturn but a strategy for riding the economic upturn.
For instance, any major change in the business and economic landscape often triggers
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the challenges so faced, businesses might look to new advisers for fresh ideas and

14 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

advice on how to survive the change. This is an opportunity for your practice to
shine and obtain a competitive edge, both to existing clients and to prospects, with
valuable insight.
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For your clients, business intelligence can mean actionable insights and information
that can inform their strategic and tactical decisions about products, pricing,
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having the right technology in place will be key to you in making the most of
this opportunity. Consider investing not only in the technology to automate your
compliance work, but also in powerful insight tools that will help you turn complex
figures into graphics, making it easier for you to proactively communicate that
valuable insight to your clients in a language they will understand. Who better to
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resources to guide them through the changes and help them put their business in
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times, you can help them recoup any losses they may have made and, in turn, recoup
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resiliency for the business operations of accountants and their clients.
Today, We’re spending a lot of time thinking, how do you manage the next week, the
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returns and client portfolios. It has changed the nexus, of global asset prices, interest
rates and taxation policies. It has been a trigger for some big adjustments. Thus,
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FRYLG
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Western India Regional Council of The Institute of Chartered Accountants of India 15

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Not having a clear understanding of the opportunities and challenges that lie ahead
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actions for the year ahead, it needs to be an ongoing activity that is continuously
revised to match changes in customer demands and market conditions. No business
in the world could have foreseen the economic disruption caused by the pandemic or
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Certain elements of this strategic planning process have been elucidated hereinafter:

Accelerating Decision-Making
Faced with such disruption, the ability to undertake agile planning is not just a
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professional firm continuing to function or closing its doors. The crisis has really
emphasised the need for collaboration across teams, and accelerated Decision
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data in a responsive way has been made clear. Now, the ability to undertake agile
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and reliable data available.
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parts of the organization as well as from external sources such as suppliers, partners
and clients. This is particularly important when things are changing so quickly and
unexpectedly.

Accessing Quality Data

To make decisions and plan in these conditions, however, a business needs more than
just data. It also must have in place tools that will allow it to make sense of that data
and use it as the basis for informed decisions.

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Firm’s clients want to be able to make decisions more quickly and have them based
on reliable information. They also want strategic planning to shift from something
that’s undertaken once a year to an ongoing process that can respond to changes
in business conditions. This process is streamlined by having in place digital tools

16 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

WKDW DOORZ GLරHUHnt data sources to be brought together to create what is termed a
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VFHQDULRV FDQ DOVR EH UHDGLO\ WHVWHG 5DSLGO\ FKDQJLQJ H[WHUQDO FRQGLWLRQV FDQ DOVR EH
swiftly taken into account during planning. For example, sudden viral outbreaks in one
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both accurate data and powerful tools to analyse it in place will ensure the business
can react as quickly as is required.

Ready For The Future

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access to quality data and the ability to extract value from it will continue to be
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own business survives the current pandemic. Older accountants will draw on their
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It’s unlikely that any business will pass through times of instability unscathed.
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the businesses that possess the most resilient structures and foundations. Transitioning
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the adverse impact won’t be realised until it’s too late.
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conducted using technology; think twice before employing people not adept with
technology and will even think twice before actually purchasing a physical workspace.
This crisis has presented an opportunity to change service patterns to ensure
technology reaches thH ERWWRP RI WKH S\UDPLG ERWK IRU ÀUPV DQG FOLHQWV
Firms that will not just survive but even thrive during these times are those that
embrace the situation, get creative with new ideas, push themselves out of their
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Western India Regional Council of The Institute of Chartered Accountants of India 17

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

“Those who won’t survive are the ones currently sitting back, hoping the world will
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I. BUILDING THE RIGHT INFRASTRUCTURE- SYSTEMISATION

“For a business to survive and thrive, 100 percent of all the systems must be functioning
and accountable. For example: An airplane is a system of systems. If an airplane takes
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It’s not the systems that you know about that are the problem – it’s the systems you
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employees work from home are tools for collaboration and interaction, creating the
infrastructure to support these tools, and building new capabilities and opportunities.
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an increased use of data and public cloud as more people realise the speed, scale,
and security one can get from using digital resources.
CA offices need to have a different approach towards digital infrastructure. An
aggressive, balanced approach is the most important step towards digitisation. The
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driven, insightful solutions backed by a compassionate experience will have a lasting
impression on their relationship.
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1. Raising Of Hardware Standards:

One of the first things that offices must do in order to undertake a digital
transformation is an assessment of the infrastructure within the organisation viz.
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of the network infrastructure. Network infrastructure includes both software
and hardware components and is an integral part of the overall Information
Technology infrastructure. For software components to work efficiently, the
enterprise network must be of great quality, possess great connectivity and
must be in line with the latest versions and trends. Evaluation of existing
routers, operating systems, network security applications, network operations, IP
addressing, wireless protocols, etc, is an integral part of the process.

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FRYLGUHFRYHU\

18 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

2. Investing In A Friction-Free, Touchless Future:

The pandemic marks a historic shift in the way the global economy operates.
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ensuring a frictionless digital experience is now essential for business survival
and customer retention.

3. Time For The Weather To Get CLOUDier:

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and reap the benefits of reduced costs, increased efficiency, and access to
technology which you previously didn’t have. The Cloud platform itself provides
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and use software programs which were probably out of reach for small CA
businesses. The concept of remote access has been made possible only because
of the software as a service capability.
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depending on their situation. In addition, the cloud can also help you to access
infrastructure via the cloud. Storage, data centers, and even networks can be
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systems can be done under Platform as a Service. Thus, one can say that the
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footing with the larger ones, and provided an opportunity to competete with
multinational companies having a substantial presence in the market.
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how the majority of companies are operating remotely, it becomes imperative
that the cloud becomes an integral part of every workplace.
On a national level, there has never been a stronger case for every country’s
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Western India Regional Council of The Institute of Chartered Accountants of India 19

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

is time for India also to focus on building a native cloud ecosystem. Cloud is
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and regulated workloads that adhere to the strictest government security
requirements. India must now aim to become a large global cloud ecosystem.
There is enough local demand, with the country being host to some of the
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unchallenged support to the call for data residency—the requirement for Indian
citizens’ data on global platforms to be hosted locally and regulated by Indian
law. The local agglomeration of cloud infrastructure will strengthen India’s digital
future and become a comparative advantage as data becomes the new oil
globally.

4. Automation As The Road Ahead:

With more businesses using tools to automate processes, modern Enterprise
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to transfer data between individual departments and hence this, data can be
shared between integrated tools, leading to better insight and more accurate
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services for special areas of tax audit under Section 44AB of the Income Tax Act,

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possibilities are endless, and such a heightened level of coordination is only
possible when integration of data and services, using digital tools, is enabled.

Leveraging Tech Conferencing For Work From Home

As cases of coronavirus continue to increase exponentially, a large percentage
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motivate employees, celebrate festivals, and even participate in informal
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Facebook and Amazon have already extended their work from home policy
until the foreseeable future. Twitter has also announced that it plans to give

20 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

its employees an option to work from home permanently. While the concept
of remote working is far from novel, advanced technologies have made it a
seamless transition from working from office to working from home, in an
H඼FLHQW DQG Sroductive manner.

Tracking Productivity Remotely

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number of hours they spent inside the office and the number of weekends
worked. In a remote working environment, this is not possible, owing to the
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management to keep a track of the employees’ daily work progress and ensure
that each task is getting completed on time and deadlines are being met
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platforms to measure the time it takes an employee to complete tasks, evaluate
where time is being lost and work upon ways to further improve productivity,
if need be. This enables them to not only maintain but also improve the
turnaround time for achieving better results.

Employee Upskilling
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one of the major challenges for firms during this pandemic. With revenues
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backdrop, technology has emerged as a saviour for employees to upskill and
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the decision of which employees to retrench is often based on the level of
experience or skill of such employees. In such a scenario, obtaining the relevant
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over others. Even for those firms that are resorting to retrenchment during
such tough times, on account of the technological resources available, the
opportunities for employees are no longer limited. Easy access to upskilling and
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WLPHV WR GHYHORS QHZ VNLOOV DQG HYHQ H[SORUH GLරHUHQW MRE DYHQXHV EH LW ZLWKLQ
WKH VFRSH RI WKHLU FXUUHQW MRE SURÀOH RU EH\RQG

Western India Regional Council of The Institute of Chartered Accountants of India 21

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Contactless Entry Control And Exit

 $V PRVW RUJDQL]DWLRQV VWDUW RSHQLQJ XS RU UHVRUW WR OLPLWHG ZRUN IURP R඼FH
policies, it has become imperative for organizations to have stringent entrance
controls and checks for employees, visitors or contractors who are entering
the premise to ensure compliance with the requisite safety requirements. The
Contactless Visitor management system for entrance control purposes has been
one of the key areas that can help organizations control and manage the people
entering office premises and take precautionary measures. By replacing the
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of the number of people in the premise at a particular point of time, generate
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5. Embracing the New Age:

These may seem like disparate terms often used by IT honchos, but they are
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embedded in devices to intelligently communicate with servers and perform
functions that ordinary devices cannot.These can further be connected to
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can use IoT enabled product or service tracking.
Blockchain is another digital technology which can help businesses immensely.
You can use smart contracts to ensure security, and distributed ledgers allow
you to process transactions in a safe and secure manner. Blockchain has
a number of applications for businesses, right from identity verification to
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between departments. AI can also be used for making financial predictions
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conditions in the best way and make it easier for you to come up with ways
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to implement. Firms only need to decide to embrace them early before the
competitor does.
“I think there is just a better appreciation of what analytics, AI (artificial
intelligence), and machine learning (ML) can do potentially because in this space

22 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

today, we are creating models from different parts of the world, bringing it
together and then seeing how do we tackle something of the unknown,” says the
Microsoft India President.17
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H[FHO LQIRUPDWLRQ ÀOLQJ RI UHWXUQV RU IRUPV ÀOOLQJ LQ UHTXLVLWH LQIRUPDWLRQ RU
analysing where information is missing, conducting due diligence, managing
documentation, among others; all such routine tasks can be undertaken by
online bots. All in all such tools can also aid in preparing the perfect blueprint
for your company’s accounts, taxes and other requirements which can in turn
KHOS \RX WR FDUU\ RXW \RXU EXVLQHVV SODQV LQ DQ HරHFWLYH PDQQHU

6. Protect Your Digital Self:

To ensure business success, it is not just enough to have the best infrastructure
in place. Digital infrastructure’s success depends on how secure it is against
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step towards making sure that your digital infrastructure is safe is by conducting
a risk assessment and security based due diligence. Your next step is to evaluate
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LGHQWLÀHG LQ WKH V\VWHP RU SDVW WUHQGV
Finally, making security a part of IT governance and digital policy is very
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place. For instance, most businesses have now begun to include Bring your
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authentication. BYOD though a unique concept has its own risks of data
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0FDIHH  DQG 9LUWXDO 3ULYDWH 1HWZRUNV DUH QHHGHG WR NHHS &$ R඼FHV GLJLWDO GDWD
safe at all times.
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roads enables us to go about our everyday lives, digital equipment and systems
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GDWD ZH DUH IDFHG ZLWK ZKHQ GHDOLQJ ZLWK GLරHUHQW W\SHV RI FOLHQWV SXW WRJHWKHU
processes and create a service of our own.

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\RXUVWRU\FRPQHZQRUPDOSRVWFRYLGDQDQWPDKHVKZDULPLFURVRIWLQGLD
 $XVWUDOLDQ*RYHUQPHQW:K\'RHV'LJLWDO,QIUDVWUXFWXUH0DWWHU"
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GLJLWDOLQIUDVWUXFWXUHPDWWHU

Western India Regional Council of The Institute of Chartered Accountants of India 23

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

In our opinion, the correct IT infrastructure replaces the need for physical
infrastructure almost in entirety. We believe, for a CA firm the right way to
initialize change is to systemize and digitize it.
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D ZKLOH QRZ WKH &29,' FULVLV KDV IRUFHG FRPSDQLHV WR WDNH D KDUG ORRN DW
their existing practices and adopt new technologies to tackle unprecedented
challenges, train the workforce with new skillsets, and optimize time as well as
resources. Some of the current technology trends observed in the corporate
space may not be permanent, but it goes without saying that technology is here
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Each of the above has been elaborated on in detail later in the publication.

II. READINESS ASSESSMENT-

SKILLSET WORKABILITY, INTEGRATION, IT POLICY
“If you don’t innovate fast, disrupt your industry, disrupt yourself, you’ll be left behind.”
– John Chambers, CEO of Cisco
The purpose of this digital readiness assessment is to test the cognitive skills and
behaviour that underpin an employee’s preparedness and level of readiness to
adapt to the digital culture of the organization. It evaluates whether the employees
possess the ability, skills and the will to adapt and manage the digital transformation
process.

A digital readiness assessment helps in understanding the overall maturity of the

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for a firm can be evaluated by answering the following simple but important
questions:
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RI QHZ WHFKQRORJ\"
2. Are opportunities to automate business processes identified, assessed and
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 'LJLWL]DWLRQ'LJLWDOL]DWLRQ'LJLWDO7UDQVIRUPDWLRQ 'LJLWDO5HDGLQHVVKWWSVEORJPHWWOFRPGLJLWDO
readiness/.

24 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

 ,V \RXU RUJDQL]DWLRQ XVLQJ QHZ WHFKQRORJLHV OLNH $, %LJ 'DWD DQG 5RERWLF
3URFHVV $XWRPDWLRQ"
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WR LWV LPSOHPHQWDWLRQ RQ D ODUJHU VFDOH"
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DXGLW WD["
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 +RZ GRHV \RXU R඼FH PDQDJH UHSHWLWLYH WDVNV"
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WHFKQRORJLFDO DGYDQFHPHQWV" ,I QRW DUH WKHUH WUDLQLQJ PHFKDQLVPV LQ SODFH WR
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  'RHV WKH ILUP KDYH WKH UHTXLVLWH UHVRXUFHV WR DFTXLUH WKH ULJKW WHFKQRORJ\
infrastructure viz. hardware, latest software, cloud infrastructure, relevant
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Digital readiness assessment framework aims to assess whether the employees possess
suitable behavioural competencies and cognitive skills to adapt and manage the
digital transformation process. The purpose of this assessment is to test the ability
and behavioural competencies that underpin employee’s’ preparedness and level of
readiness to adapt with the digital culture of the organization.

 KWWSVZZZVFRSLVPFRPTXHVWLRQQDLUHVGLJLWDOWUDQVIRUPDWLRQUHDGLQHVVDVVHVVPHQW

Western India Regional Council of The Institute of Chartered Accountants of India 25

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Based on our research, the digital readiness level of an individual employee can be
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Skillset Workability:
Employee skills are the core of an organization’s progress. CA offices today may
digitize leaps and bounds but if the same technology is not adopted by the
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FRUH RI GLJLWLVDWLRQ &$ R඼FHV VKRXOG KROG EUDLQVWRUPLQJ VHVVLRQV WUDLQLQJV PRQWKO\
RU ZHHNO\ IROORZXSV DQG JULHYDQFH UHGUHVVDOV VR DV WR PDNH VXUH WKDW WKH HPSOR\HHV
working within the organisation have the necessary knowledge before they scale u the
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in the service sector, our biggest asset is our human resources. One of the major
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consistency of employee upskilling. With time and the relevant training, performance
appraisal and motivation, employees will not only be able to add value to the existing
processes and clients but also be able to bring in an element of innovation and
creativity into the current operations, into their work or build on new ones.

 KWWSVPHWWOFRPWHVWGLJLWDOUHDGLQHVVDVVHVVPHQW"XWPBVRXUFH ZZZJRRJOHFRP XWPBPHGLXP EORJ

26 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

In order to evaluate the performance and understanding of employees from time to

time, and to voice their concerns or ideas, employees must be provided with a survey
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exhaustive list of questions:
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3. Does the new technology reduce the time taken to complete the repetitive
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employees been able to save time and resources on routine compliance based
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faced by them with respect to transition, implementation or operation of the
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8. Are the employees aware of the availability of any new trends or disruptive
technologies, whether in India or abroad, that could be implemented within the
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traditional to digital operations, to evaluate their level of motivation.

Integration:
Integration of technology is the most important factor for modern cloud based
workspaces today. Technology integration as a whole is based on the willingness to
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DGYDQWDJH RI WKH ÀUP
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departmental areas like tax, audit and litigation with appropriate technology so as
to produce an effective output, automate such activites, and enable easy flow of
FRPPRQ GDWD EHWZHHQ GLරHUHQW GHSDUWPHQWV

1. Understanding The Advantage Received

It is essential to understand if there is a need that a given technology tool
can address. From a CA firms perspective, needs would include areas such

Western India Regional Council of The Institute of Chartered Accountants of India 27

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

as tax computations, audit documentation and several others. A needs based

assessment needs to be carried out for successful technology integration.
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reducing the overall time taken for repetitive processes in areas, distributive
ledger technologies technologies can be used to verify reported transactions
without further manual inputs and analysis of data, providing an opportunity to
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2. Evaluating The Objective Of Using The Technology

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ZLWK LWV VWDWHG REMHFWLYH ,I D &$ ÀUP DLPV WR LPSURYH DQG VPRRWKHQ LWV RYHUDOO
audit process, it should use a technology which addresses the wholistic issue
right from obtaining and managing documentation, analysis and evaluation to
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lacunae and improvises or modernizes that particular part or the system as a
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determine whether that objective can be addressed by the technology. If the
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technology could be used to achieve that objective.

3. Analyse The Readiness Of Employees

As stated earlier, while reshaping technological outlook and moving towards a
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ÀUVW UHDG\ WR DFFHSW WKH FKDQJH 7KH HPSOR\HHV VKRXOG DOVR EH VNLOOHG HQRXJK
to understand how the technology works and would be utilized by them in their
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the lack of willingness on the part of employees to adopt and implement the
requisite technology or modernize their practice; and also the lack of requisite
training tools. Since employees are the individuals who ought to eventually run
such technology, this mental barrier ought to be addressed before bringing in
the technology.

4. Trainings And Other Learnings:

Once the technical and mental barriers to the adoption of technology are
overcome, the next important step is to assess the level of knowledge and
expertise of employees and the level of training needed to make them adept
with the use of such technology. Experienced or higher level employees
can study the technology first and then impart knowledge to all the other

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SURFHVVRUFUHDWHPRUHFKDOOHQJHVIRUWKHIXWXUHKWPO

28 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

employHHV ZLWKLQ WKH ÀUP $ PDMRU LVVXH IDFHG E\ VPDOOHU ÀUPV LV WKH ODFN RI
investment of adequate hours into training, performance appraisal and skill
development; impacting the long term performance of the organisation. Training
hours can be adequately allocated, to train in the use of digital tools for best
results. While it may seem like a major investment of time and resources in the
initial few days, it will eventually lead to saving of time on account of enhanced
H඼FLHQF\ DXWRPDWLRQ DQG XQQHFHVVDU\ ZDVWDJH RI UHVRXUFHV LQ WKH IXWXUH

5. Analyse Results And Implementation:

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does not end with implementation of the technology. Effectiveness of the
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to understand whether the major issues are being addressed. A feedback
system should be in place which asks the employees basic questions such as
the amount of time they believe that technology has reduced and the technical
glitches they faced, if any, while using that technology.

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FKDQJLQJ HQYLURQPHQW 0DQ\ &$ ÀUPV EHOLHYH WKDW WKH LQWURGXFWLRQ RI EHWWHU
WHFKQRORJ\ ZLOO UHVXOW LQ JUHDWHU RSHUDWLRQDO H඼FLHQF\ +RZHYHU PHUHO\ DGRSWLRQ
of technology is not enough. While this may be achieved, it is important that
the correct integration sequence is followed for consistency and longer term
EHQHÀWV &RQVLVWHQF\ DGDSWLELOLW\ DQG UHVLOLHQFH DUHZKDW GLරHUHQWLDWH D PRGHUQ
firm from a top notch one. All of these can be achieved through the right
integration of technology based on business processes, professional services
and client needs. This being relevant right now, more than ever, for Work from
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from our houses, but also from a remote working environment.

It would be opportune to quote Daniel Wilson when he said, “Things Grow

Stronger When You Integrate.”

III. INFORMATION TECHNOLOGY POLICY

´7KH DGYDQFH RI WHFKQRORJ\ LV EDVHG RQ PDNLQJ LW ÀW LQ VR WKDW \RX GRQ·W UHDOO\ HYHQ
notice it, so it’s part of everyday life.”
-Bill Gates, Co-founder of Microsoft
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LW LV LPSRUWDQW WR VHW UHJXODWLRQV IRU WKH XVDJH RI WKH ÀUPV UHVRXUFHV

Western India Regional Council of The Institute of Chartered Accountants of India 29

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

$ VLPSOH ,7 SROLF\ RI D 0RGHUQ &$ ÀUP VKRXOG FRQWDLQ WKH IROORZLQJ
 The Purpose of the Policy: IRU H[DPSOH WKH SXUSRVH RI DQ ,7 SROLF\ FRXOG EH
WR PDLQWDLQ WKH FRQÀGHQWLDOLW\ LQWHJULW\ DQG DYDLODELOLW\ RI WKH LQIRUPDWLRQ RI
WKH ÀUP RU LQ WKH GL඼FXOW &29,' VFHQDULR WKH SXUSRVH PD\ DOVR EH WR DGGUHVV
:RUN )URP +RPH VFHQDULRV 
2. The Scope of the Policy: 7KH VFRSH EDVLFDOO\ GHÀQHV WKH DSSOLFDELOLW\ RI WKH ,7
Policy.

3. 'HÀQLWLRQ RI LPSRUWDQW WHUPV 9DULRXV WHUPV PD\ KDYH GLරHUHQW PHDQLQJV LQ
GLරHUHQW VLWXDWLRQV 7HUPV VXFK DV &RQÀGHQWLDO LQIRUPDWLRQ 8VHU HWF PD\ EH
RUJDQL]DWLRQ VSHFLÀF DQG WKH VDPH PD\ UHTXLUH DQ XQDPELJXRXV H[SODQDWLRQ

4. Responsibilities of the User: 7KHVH UHVSRQVLELOLWLHV EDVLFDOO\ GHÀQH ZKDW WKH

user is responsible for in the case of the laptop being damaged or the laptop
being stolen and the duties of the users in case any of the situations arise.

5. Electronic Mail/ Email Policy: This Clause basically informs the user that he will
have to use only a particular email id as assigned to him. Spamming or forging
of emails should be strictly prohibited. During COVID times, due to work from
home availability, attachments should be checked before they are sent.

 File Usage Policy: 'XH WR WKH DYDLODELOLW\ RI YDULRXV GHYLFHV &$ ÀUPV VKRXOG
make sure that their employees can access the firm’s confidential data only
through a particular user id allotted to them. Admin access for servers must be
JLYHQ WR FHUWDLQ ,7 SURIHVVLRQDOV RQO\ &29,' KDV IRUFHG &$ ÀUPV WR PRYH WR
WKH FORXG DQG KHQFH DFFHVV WR WKH ÀOHV RQ WKH FORXG VKRXOG EH PRQLWRUHG

7. Network Policy: 8QDXWKRULVHG $FFHVV WR QHWZRUNV VKRXOG QRW EH DWWHPSWHG 7KH
PRVW LPSRUWDQW WKLQJ GXULQJ &29,' WLPHV LV WKH GHÀQLWLRQ RI D 931 RU D 9LUWXDO
3ULYDWH 1HWZRUN VXFK WKDW WKH ÀUP·V LQIRUPDWLRQ FDQ EH DFFHVVHG RQO\ WKURXJK
WKH YLUWXDO SULYDWH QHWZRUN LG DQG SDVVZRUG ZKLFK ZRXOG EH XVHU VSHFLÀF

8. Internet Policy: The internet policy basically restricts the usage of internet
software only to the available licensed ones and also restricts the usage of
FHUWDLQ ZHEVLWHV VR DV WR HQVXUH FRQÀGHQWLDOLW\ DQG SULYDF\ RI WKH ÀUP

 Mailbox termination Policy: 8VHUV ZKR KDYH QRW UHPDLQHG DFWLYH IRU D
SDUWLFXODU WLPH IUDPH PXVW DXWKHQWLFDWH EHIRUH WKH\ VWDUW XVLQJ WKH ÀUP·V DVVHWV
again.

 Security Policy: This Clause especially during COVID times is the most important
SDUW RI DQ ,7 SROLF\ ,W GHÀQHV WKH VHFXULW\ WKUHDWV VXFK DV VSDPPLQJ SKLVKLQJ

30 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

and viruses and also states what can be done to avoid any internal damage.
The security policy also states the protocol to be followed in case of a security
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LQ WKH SURWHFWLRQ 5HPRWH ZRUN LQFOXGLQJ ZRUN IURP KRPH FDOOV IRU WLJKWHU
stricter IT policy so that the slack of certain employees can be easily monitored
and necessary action can be taken before there is any harm caused to the data.
 Backup Policy: Backup and data cleaning should be conducted quarterly so as
to make sure all the data is readily available at all times.
 IT Committee: &HUWDLQ ÀUPV KDYH DQ ,7 &RPPLWWHH LQ SODFH ZKLFK ORRNV DIWHU
the basic needs of the employees and tackles the matters related to the
technology with regard to its implementation and upgradation.
 Approvals: There are certain software which are extremely expensive and are
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a framework to be followed in order for the license to get the necessary
approval.
 Remote Woking: COVID times have called for an additional clause for
management of work from different workspaces which maybe beyond the
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 Confidentiality/Security Policy: This section basically states that all the
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ensure employee productivity.
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data within the firm. It also defines security protocols and manages any damage
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and the accountability of the user.
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the way it uses the technology. We hear of several viruses such as trojan, worms and
other malware. During COVID, hacking cases have multiplied several times over. This
calls for a security protocol.
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their IT assets and manage their employees while using the same. It is very easy to be

Western India Regional Council of The Institute of Chartered Accountants of India 31

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

FDUULHG DZD\ E\ QHZ DQG EHWWHU WHFKQRORJ\ ZKLFK UHGXFHV RXU HරRUW EXW WR PDLQWDLQ
the same level of work along with the requisite quality is equally essential.

IV. PROCESS AUTOMATION AND OPTIMIZATION

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Process automation is the breaking down of complex business processes into small
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results. An example of the same would be the use of spreadsheets on systems such
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which were often interlinked by many manual steps and keystrokes. A new set of
overlay software has emerged, however, that combines these disparate actions into
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represents a dramatic and disruptive change in current audit practice that promises to
allow auditors to operate at a much higher level. Leslie Willcocks, a professor at the
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activity of a human being in carrying out a task within a process. It can do repetitive
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is already demonstrating its ability to improve business processes.
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53$ VRIWZDUH URERWV

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32 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

An example RI 53$ LV


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across sales invoices, sales orders, and shipping documents, and to generate alerts for
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a better understanding of the client’s business operations and therefore be able to
more precisely assess the risk of material misstatement.

Three-Step Approach to RPA-Based Audits

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E\ . 0RIILW $0 5R]DULR DQG 0$ 9DVDUKHO\L ´5RERWLF 3URFHVV $XWRPDWLRQ IRU
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Process understanding.
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Western India Regional Council of The Institute of Chartered Accountants of India 33

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

tasks that are repetitive and time consuming and that do not require audit judgment.
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considering expert knowledge, such as that of revenue audit leaders, and calculating
the actual hours spent performing audit tasks. Furthermore, the most important factor
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function, which is mainly dependent on the number of similar audits being done.
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the next step in understanding the process is to divide audit tasks into small audit
modules that can be interpreted by software programs. For example, the task of
importing or exporting data is intuitive to a human user, but for a software program,
the task would have to be divided into a series of small steps:
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Audit data standardization (ADS).

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ADS is becoming more relevant as public accounting firms consider the use of
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intended objectives.

Execution of RPA-based audit tests.

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34 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

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automatic execution of audit tests. Once audit tests are programmed, an auditor can
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What’s Next?
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technology and enjoy the fruits of its labour.24

What Is Optimization
Optimization is the process of simplifying tasks in such a way that there is no loss of
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to the various levels of communication may lose the overall effectiveness of the
information shared. Optimization leads to sustainable growth.
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Western India Regional Council of The Institute of Chartered Accountants of India 35

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

3. Automation of repetitive tasks

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5. Increasing sales through enhancing customer satisfaction
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work.
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understanding the areas that require improvement, measuring and comparing the
results and continuing the same process.

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36 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

accessed only by the members of that client engagement. If work is done on a

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to be entered on a day to day basis on that client code. The total hours taken on
the client not only helps in checking employee productivity but acts as a barometer
for similar client engagements, a benchmark for the next employee who performs a
similar task and acts as a factor for overseeing the allocation of the employees.
During COVID times, remote audit and work from home is the new normal and hence
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COVID era oil. Small time saved from optimization can be very valuable. Lockdowns
have reduced face to face interactions but timesheets have given access to the
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V. ARTIFICIAL INTELLIGENCE – THE COVID COAL

If our era is the next Industrial Revolution, as many claim, AI is surely one of its driving
forces. - Fei-Fei Li
Artificial intelligence is transforming the financial and accounting space with
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time allocated to higher impact responsibilities and strategic thinking. Yet a majority
of businesses still haven’t employed AI in their workforce due to uncertainties around
the business case or return on investment. This lack of understanding is a growing
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more and more clients are digitizing processes, and in the meantime also leading to
an increase in the amount of spreadsheets and documents that accounting and audit
professionals ought to analyze.
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RSSRUWXQLWLHV RරHUHG E\ $, +HUH DUH WKUHH ZD\V VXFK DGYDQFHG WHFKQRORJLHV FDQ WDNH
the grunt work out of daily tasks:

1. Streamline Data Entry And Analysis

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spread out over multiple documents, PDFs and spreadsheets and continuous
reference to various documents; machine learning — a branch of artificial
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on spend category, consolidates data and populates reports for analysis in one
single place for ease of reference and analysis. These comprehensive reports can
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documents and undertake an overall analysis of data for various processes.

Western India Regional Council of The Institute of Chartered Accountants of India 37

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

0DFKLQH OHDUQLQJ DOVR GUDZV GHHSHU LQVLJKWV DV LW SURFHVVHV GDWD RYHU WLPH
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by advising clients on optimal budget forecasting.

2. Reduce Potential For Fraud In Terms of Company Spending

Company spending has become increasingly decentralized. Today, employees
spend more money across various categories, using multiple payment methods,
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compliance also increases. According to the Association of Certified Fraud
Examiners, the average organization loses 5 percent of its annual revenue to
internal fraud. Organizations and auditors can typically only audit approximately
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to go undetected.25
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in a shorter span of time. By predicting patterns and detecting a wide range
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before the reimbursement occurs. Because it’s scalable, AI can also easily handle
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GDWD PDNHV LW VPDUWHU DQG EHWWHU DW WDFNOLQJ ÀQDQFLDO IUDXG

3. Enforcement of Corporate Policy

Artificial intelligence can be used to drastically reduce the time it takes to
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policy in data as well as operations. Professional fee receipts, purchase orders,
employee receipts, travel bookings and credit card transactions are automatically
scanned for purchases made outside of policy — enabling auditors to quickly
note the error and help enforce corporate policies to the employees for the
future. For instance, AI can automatically detect employee expense violations
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With increased visibility into corporate spending patterns, organizations can
also determine which policies are working for the company, as well as whether
certain policy violations are justifiable. For example, using shared economy
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time%2Dconsuming.

38 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

services could help save the company some money, suggesting an opportunity
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data analyses and focus on more strategic functions for their clients.
Smaller organizations have an advantage of being more agile and quick to
respond to market changes, owing to a smaller scale of operations. They can
also bypass the requirement of significant investments that AI demands by
ÀQGLQJ WKH ULJKW PL[ EHWZHHQ Buy, Build, Or Partner/Collaborate.
Don’t focus on AI simply because it is a new technology. Identify and evaluate
ZKHWKHU $, DV D SUDFWLFH FDQ UHDOO\ DGG YDOXH WR \RXU ÀUP DQG KHOS \RX DFKLHYH
your goals. Start small. It is imperative for accountants to start small but think
big. Starting out by doing simple test runs on concepts or operations that are
highly relevant for your business will ensure that your use of AI in the future
ZLOO EH VXLWDEOH DQG HරHFWLYH IRU WKH ÀUP VSHFLÀFDOO\ $QG RQFH \RX VWDUW VFDOLQJ
up, expand your AI capabilities and leverage on the same to expand your scale
of operations.
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everyone, so from the most junior to the most senior member of an audit
WHDP ZH ZLOO DOO QHHG WR EH RSHQPLQGHG DQG TXLFNO\ SLFN XS QHZ WHFKQRORJ\
DFTXLUH QHZ VNLOOV DQG HPEUDFH FDUHHUORQJ OHDUQLQJ
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GHÀQH ZKDW VXFFHVV ORRNV OLNH DQG KRZ \RX ZLOO PHDVXUH LW 3HUIRUP DQ ¶DIWHU
DFWLRQ UHYLHZ· FRUUHFW GHYLDWLRQV DQG LWHUDWH ³ \RX GRQ·W JHW LW ULJKW ÀUVW WLPH
but keep on iterating and reminding yourself of the larger picture.
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incoporating the right technology is important; being adaptive, flexible and
changing with changing trends is equally imperative. We need to consider
how our clients consume services. While those of us above the age of 35 may
still value the personal touch of a phone call or face to face communication
UDWKHU WKDQ DQ HPDLO RU WH[W DFFRXQWDQWV DQG ÀUPV KDYH WR FRQVLGHU ZKHWKHU
WKLV ZLOO EH WKH VDPH LQ WKH QH[W  RU  \HDUV ³ SDUWLFXODUO\ ZLWK WKH ULVH RI
automated online bots.
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 KWWSVZZZDFFRXQWLQJWRGD\FRPRSLQLRQZD\VDFFRXQWDQWVFDQLPSOHPHQWDLWRGD\aWH[W ,Q
WKHGLJLWDOWUDQVIRUPDWLRQHUDDQGDXGLWSURIHVVLRQDOVPXVWDQD\]H 
WH[W $UWLILFLDOLQWHOOLJHQFHKHOSVILQDQFLDOPDQDJHUVDUHWHGLRXVDQG
time%2Dconsuming.

Western India Regional Council of The Institute of Chartered Accountants of India 39

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Forecasting isn’t a crystal ball. Forecasts made through the use of AI should
never be about predicting the future — it is far too complex — but about
helping users to make decisions today that increase the probability of the
FOLHQW DFKLHYLQJ WKHLU REMHFWLYHV $GYLVHUV QHHG WR KHOS FOLHQWV PDNH GDWDGULYHQ
decisions considering this complexity and uncertainty.
As we go ahead, we can understand the capability and the results generated by
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DUHDV ZKHUHLQ WKHLU WLPH RI ZRUN FDQ EH VLJQLÀFDQWO\ UHGXFHG 7KHUH LV QR QHHG
to be working seven days a week if the AI functionality can process the same
tasks within a period of 2 to 3 days. Let’s have a look at some of the results an
AI functionality can have:

In the case of a normal audit not powered by AI every single stage as shown in
ÀJXUH  ZLOO UHTXLUH WHVWLQJ E\ WKH DXGLWRU LQ PDQ\ FDVHV WKH DXGLWRUV ZRXOG
sample out the given data. These samples would include an inherent sampling
risk which may further lead to an audit risk.
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the role of the auditor would be reduced to testing data in the stage of
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Workforce productivity would increase several times over. In our opinion, the
great practices in the world are not those who deploy the largest workforce but
those who have the capability to generate the highest amount of work within
the limited set of resources they have. Other processes wherein the results can
EH VLPSOLÀHG LQFOXGH

40 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Long Outstanding Creditor

350 310.94

300

250 48.28%
46.83%
200 145.62 150.14
150

100 4.62%
0.26%
50 .82 14.36

< 90 Days > 91 days > 181 days > 3 Years Total
< 180 days < 3 years

Amount in crores Percentage

Outstanding Debtors:

1 000 942.70
84.33%
794.94
800

600

400
14.27%
11.48%
134.51 -10.07%
200 108.19
- 94.94

< 90 Days > 91 days > 181 days > 3 Years Total
< 180 days < 3 years
- 200
Amount in crores Percentage

$Q LGHDO DUWLÀFLDO intelligence technology can study raw data directly generated
from the system and based on simple key words can assess the outstanding
creditors and debtors and their overdue period. Based on the percentage of
debtors/ creditors and their respective timelines it can mark the area under high,
low or medium risk as maybe suitable.
These are few of the million uses of AI in generating results as per the needs
RI WKH FOLHQW $, LI \RX XVHG FRUUHFWO\ FDQ EH WKH PRVW H඼FLHQW WRRO DQG VKRXOG
not be looked upon as a threat.

Western India Regional Council of The Institute of Chartered Accountants of India 41

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

VI. DATA ANALYTICS

“The goal is to turn data into information, and information into insight.”
– Carly Fiorina, former executive, president, and chair of Hewlett-Packard Co.
The use of past trends to predict the future is known as analytics. Each one of us
today, whether professionals, businessman or normal students; are always trying to
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RI FDUHHU RSRUWXQLWLHV LQ WKH IRUP RI ZKDW ZH FODLP D ZHLJKWHG DQDO\VLV +RZHYHU
ZKHQ ZH JLYH VXFK DQ DQDO\VLV DQG WKH GDWD XVHG WR XQGHUWDNH WKH VDPH D GHÀQLWH
IRUP ZH FDQ FDOO LW DQDO\WLFV D PRUH UHÀQHG SURFHVV RI SUHGLFWLQJ IXWXUH WUHQGV ,Q
WKH FRQWH[W RI &$ ÀUPV GDWD DQDO\WLFV ZRXOG PHDQ XVLQJ SDVW WUHQGV WR SUHGLFW WKH
IXWXUH LQ DUHDV VXFK DV WD[ FRVWLQJ ÀQDQFLDOV DQG FDVK ÁRZV DXGLW DQG OLWLJDWLRQ
7KH DGYHQW RI GDWD DQDO\WLFV RරHUV ERWK FKDOOHQJHV DQG RSSRUWXQLWLHV IRU &$V 7KH
challenges include undertaking appropriate training to develop the skills needed to
initiate and support data analytics activities, the risk of inaccurate data leading to
inaccurate forecasts and analysis, as well as altering the present models to incorporate
DSSURSULDWH DQDO\WLFV WHFKQLTXHV7KH RSSRUWXQLWLHV LQFOXGH D WHFKQRORJ\ULFK PRGHO
that provides for greater thoroughness, efficiency, and accuracy, as well as new
business opportunities to provide data analytics expertise to clients and organizations
LQ WKH DUHDV RI ÀQDQFLDO PRGHOOLQJ EXVLQHVV VWUXFWXULQJ DQG FRUSRUDWH UHVWUXFWXULQJ
valuations, forensics, among others. CAs, whether working in public practice or
industry, will be provided an opportunity to enhance their areas of practice along with
an element of innovation by obtaining the requisite additional data analytics expertise,
beyond the regular tax, audit or accountancy. Data analytics is used by all of us even
WRGD\ XVLQJ EDVLF DSSOLFDWLRQV OLNH 0LFURVRIW ([FHO WKURXJK IHDWXUHV VXFK DV VRUWLQJ
ÀOWHULQJ DQG SLYRW WDEOH DOORZ IRU FDWHJRUL]LQJ GDWD HDVLO\
The importance of data analytics is evident, even more, when it comes to client audits
owing to the vast amount of data, documents and other information to be analysed
with little or no scope for error or inaccuracy. Technologies available for Data analytics
in audit consist of CAAT, IDEA among others. An audit tool is generally used by an
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timelines suggested. An audit software is basically a computer program based on the
premise of easing out the work of an auditor by reducing manual intervention and
reducing the samples required to be tested. Audit Software can be built in house by
ODUJH ÀUPV RU FDQ EH RXWVRXUFHG RU ERXJKW
We have mentioned a list of ground breaking audit softwares used for the purpose
of data analytics and creating a disruption in audit models, below:
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2[OH\ $FW  DXGLW PDQDJHPHQW VRIWZDUH

42 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

 6LWH'RFV 6LWH'RFV LV D FORXGEDVHG DXGLW PDQDJHPHQW VROXWLRQ GHVLJQHG IRU
businesses of multiple sizes in the construction and maintenance industries.
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looks after internal audit and quality management.
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destination for internal control management.
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management and Income Tax Calculation
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7. AppZen
8. Netwrix Auditor
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Use of CAATs
The common term used for audit tools having minimal manual intervention is CAAT or
computer assisted audit techniques. CAATs are becoming more and more relevant due
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doing the rounds. CAATs have enabled auditors to move from the era of manually
marking to electronically clicking. The key reasons for the use of CAATs today are:
 Analysis Of Large Volumes Of Data. Data with multiple line items which cannot
be analysed generally can be made easier using CAATs.
2. 100% population testing. With CAAT one can analyse each and every part of raw
data provided, instead of resorting to sample testing, especially in case of large
multinational corporations.
3. True and Correct View. As auditors, we are well versed with the requirements of
SA 230, “Audit Documentation’, stating that an auditor must provide a true and
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WKDQ WKH WHUP ´FRUUHFWµ RQ DFFRXQW RI WKH IDFW WKDW LW LV SUDFWLFDOO\ LPSRVVLEOH
IRU WKH DXGLWRU WR PDQXDOO\ RU SK\VLFDOO\ FKHFN  RI WKH SRSXODWLRQ DQG QRW
face a Sampling risk. CAAT allow for checking data of the same format in its

Western India Regional Council of The Institute of Chartered Accountants of India 43

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

HQWLUHW\ &$$7 LQ WXUQ ZRXOG UHGXFH WKH WLPH DQG HරRUW WDNHQ WR VHOHFW VDPSOHV
and hence, this would result in a true and correct view wherein the auditor will
be able to check every aspect of the data correctly and subsequently, provide
a detailed and accurate analysis.
4. IT risk. On account of everything moving onling, right from transfer of
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WR LQIRUPDWLRQ V\VWHPV KDYH LQFUHDVHG WZRIROG ZLWK LQIRUPDWLRQ EHLQJ PRUH
widely available in public domains. Especially during COVID time, wherein
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EHHQ LPSOHPHQWHG FDVHV RI KDFNLQJ KDYH PXOWLSOLHG ÀYH WLPHV RYHU DQG GDWD
breach as well as breach of privacy has become a serious issue. The use of a
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enhanced data protection in such trying times.
5. Every auditor has experienced the frustration of carrying out an audit on site,
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audit process, rather making the process even more mundane and tedious.
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the right documents, categorising the same, managing and storing them and
ensuring on a continuous basis that no such document is missing; to reduce
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to have information ready at the click of a button. Customisable reports make
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SUHSDULQJ IRU DQ DXGLW LV PXFK TXLFNHU DV QRQFRQIRUPDQFHV DUH TXLFNO\
highlighted and can be addressed in good time.
While we have stressed on the importance of paperwork and documentation
when it comes to an audit, it is also relevant to note that a good auditor is
one who can strategically think, identify every nuance and the reasoning behind
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based on an evaluation of all relevant factors. This requires an auditor to don
his thinking cap, rather than focusing on the routine compliance based activities.
This is also where the importance of the software comes into picture. While
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even arrive at an analysis, the software can also free up time for an auditor to
strategically use his skills and experience to identify fraud, areas of potential
fraud, colourable devices used as subterfuges to avoid taxes or payments or
prevent a statutory misuse or abuse of provisions.
 3DSHU DXGLWV DUH QRW RQO\ WLPHFRQVXPLQJ EXW OLPLW WKH GLVFORVXUH RI DOO UHTXLVLWH
evidence or information relied upon to arrive at a conclusion, at the discretion

44 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

RI WKH LQGLYLGXDO RU ÀUP XQGHUWDNLQJ VXFK DQ DXGLW 7KXV OHDGLQJ WR VLJQLÀFDQW
VFRSH IRU KXPDQ HUURU DQG ELDV DV D GHVFULSWLRQ RI D QRQFRQIRUPDQFH FDQ EH
DV GHWDLOHG RU DV YDJXH  DV PD\ EH FRQYHQLHQW $XGLW PDQDJHPHQW VRIWZDUH
would mean you could capture evidence in real time and attach any type of
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recordings; which may be relevant to arrive at a conclusion. The advantage
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would be open to everyone to review. This further enhances transparency and
accountability; and eliminates the need to manually maintain working papers or
verify and reverify documents with additional notes.
 'HPRQVWUDWH &RPSOLDQFH 7KURXJKRXW 7KH $XGLW 7UDLO 5HIHUHQFLQJ WKURXJK
paper documents and creation of paper trails makes compliance related aspects
difficult to prove on account of the risk of missing, incorrect or incomplete
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to comply with regulations and standards, downtime to correct issues can be
very costly.27 Simultaneously, when an professional accountant ought to take
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thereto, the scope for error can be very costly in terms of a professionals
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saving means of documenting and following paper trails.

Requirements To Obtain Data For An Audit Tool

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UHTXHVW OHWWHU IRU JHWWLQJ WKH UHTXHVWHG GDWD LQ D VSHFLÀHG IRUP EDVHG RQ WKH
audit objectives.
2. Discuss with the IT personnel responsible for maintaining data/application
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ensure that you have an overall understanding of the data. The record layout
should describe each field and provide information about the starting and
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4. Verify data for completeness and accuracy by checking the field types and
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 (PLO\+LOO8QGHQLDEOH$GYDQWDJHV2I8VLQJ6RIWZDUH)RU$XGLWLQJ )HE 
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DXGLWLQJaWH[W 8VLQJDXGLWVRIWZDUHPHDQV\RXEHDGGUHVVHGLQJRRG
time.

Western India Regional Council of The Institute of Chartered Accountants of India 45

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

5. Obtain control totals of all the key data and compare with totals from the raw
data to ensure all records have been properly obtained. This can be performed
by importing the data in audit software and reviewing the statistics of all the
NH\ ÀHOGV

Key Strategies for the use of CAATs

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Some of the key strategies for using CAATs are:
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decide about the need and the extent to which CAAT could be used.
2. Identify the critical data which is being audited as per audit scope and
objectives.
3. Identify the sources of data from the enterprise information system/application
software.These could be relating to the general ledger, inventory, payroll, sundry
debtors, sundry creditors, among others.
4. Identify the relevant personnel responsible for the data and information system.
These personnel could be from the IT department, vendors, managers, etc.
5. Obtain and review documents relating to data/information systems. This should
provide information about data types/data structures and data flow of the
system.
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JUDQW RI XVHU DFFHVV FRQÀJXUDWLRQ VHWWLQJV GDWD HQWU\ TXHU\ DQG UHSRUWLQJ
features.
7. Decide what techniques of CAATs could be used as relevant to the firm
environment by using the relevant CAAT software as and when required.
8. Prepare a detailed plan for analyzing the data. This includes all the above steps.
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which will be used for forming audit report/opinion as required.
 (QVXUH WKDW WKH UHOHYDQW SHUVRQQHO DUH ZHOO WUDLQHG LQ WKH XVH RI &$$7V

28 Bangalore ICAI, Computer Assisted Audit Techniques, http://bangaloreicai.org/images/icons/ITT/5.%20

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46 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

The above can be summarized as follows:

VII. BLOCKCHAIN TECHNOLOGY

“Blockchain technology is a form of digitalized, de-centralized public record of all
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transactions, but virtually everything of value.”
ȵ 2ODZDOH 'DQLHO

Blockchain technology has the potential to impact all recordkeeping processes,

including the way transactions are initiated, processed, authorized, recorded, and
reported.
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Everything is written to a blockchain only once. There is no such thing as reversing a
transaction; an entity can only append more data. Think how often the auditor spends
time verifying whether stored data has been edited through fraud or error. Though

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HQSDJHVDXGLWDUWLFOHVLPSDFWRIEORFNFKDLQLQDFFRXQWLQJKWPO

Western India Regional Council of The Institute of Chartered Accountants of India 47

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

the two concepts are sometimes confused and used interchangeably, blockchain and
cryptocurrency are not synonymous. Blockchain technology enables cryptocurrency’s
function, but its uses extend far beyond and varies by industry. In aviation, for
example, manufacturers can track a part through the entire supply chain, from
creation to implementation, ensuring the part meets Federal Aviation Administration
standards. This can prevent counterfeit parts from entering the system, thereby
increasing safety and reliability. In retail, Walmart and a group of food giants are
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supply chains. The coalition—which includes retailers and food companies such as
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and improve the traceability of food products at any point along the supply chain.

Blockchain Technology Has Two Variants:

Permissionless Blockchain
A permissionless blockchain is open to any potential user. For example, the Bitcoin
blockchain is a public or permissionless blockchain; anyone can participate as a
node in the chain by agreeing to relay and validate transactions on the network
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simple as downloading the software and bitcoin ledger from the Internet. Because
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transaction history and account balances of all parties.

Permissioned Blockchain
The limitations of permissionless blockchains have led some organizations to explore
the use of private or permissioned/consortium blockchains, which restrict participation

48 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

in the blockchain network to participants who have already been given permission
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SXEOLF EORFNFKDLQV EXW DOVR VDFULÀFH VRPH RI WKH SRWHQWLDO EHQHÀWV HJ GHFHQWUDOL]HG
transactions, wide distribution of the ledger, and a truly decentralized environment
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to increase in the longer term once the key infrastructure and technical challenges
of the new technology have been addressed. The paradigm shift introduced by
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SDUDOOHOV WKH GHYHORSPHQW RI WKH ,QWHUQHW LQ WKH V :LWK ,QWHUQHW WHFKQRORJ\ WKHUH
was a strong initial emphasis on corporate intranets until a critical mass was reached
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risks of participating in an open network.30

• Existence/rights and obligations: In the digital asset environment, the only

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sequence. Blockchain technology allows for individuals and entities to “be their

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https://www.aicpa.org/content/dam/aicpa/interestareas/frc/assuranceadvisoryservices/
GRZQORDGDEOHGRFXPHQWVEORFNFKDLQWHFKQRORJ\DQGLWVSRWHQWLDOLPSDFWRQWKHDXGLWDQGDVVXUDQFH
profession.pdf.

Western India Regional Council of The Institute of Chartered Accountants of India 49

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

RZQ EDQNµ DQG PDLQWDLQ IXOO FRQWURO RYHU WKHLU IXQGV &RQVHTXHQWO\ WKHUH DUH
additional considerations for testing the existence of digital assets that would
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• Completeness: Since all digital assets in existence can be viewed on a
blockchain at any point in time, the considerations around completeness focus
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on whether there are controlled wallets being intentionally and incorrectly
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statements should generally match the wallet listing provided by the client.
)URP D FRPSOHWHQHVV SHUVSHFWLYH DQ\ GLරHUHQWLDWLRQ EHWZHHQ WKHVH DPRXQWV
likely means that clients are either not listing all the wallets they control or not
recording all wallets they control in their books and records.
• Accuracy: Since a blockchain is immutable—it cannot be edited—the processing
RI GDWD LV VLJQLÀFDQWO\ PRUH DFFXUDWH WKDQ D W\SLFDO GDWDEDVH 3URYLGHG WKDW
comfort over data reliability is obtained, the auditor could be in a position
where there is reduced risk over the accuracy of information related to digital
assets. Conversely, information that is not related to digital assets and is sourced
externally or inputted from an external source to a blockchain does not make
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be inaccurate due to human input error.
• &XWR෇ One of the key features of blockchain is the time stamping of every
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EORFNFKDLQ FRXOG SURYLGH HYLGHQFH RI SURSHU FXWRර 7KH XVH RI D EORFNFKDLQ
ZRXOG KRZHYHU QRW HOLPLQDWH WKH DXGLWRU·V UHVSRQVLELOLW\ WR WHVW SURSHU FXWRර
because the recording of a transaction or event at a specific point in time
does not necessarily mirror the appropriate treatment in accordance with the
relevant accounting standards. Examples of this would include the prepayment
of a service provider invoice that should be expensed over time or the transfer
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reporting date.
• Presentation and disclosure: Transactions entered on the blockchain may not
always include all the data necessary to evaluate the transaction. Therefore,
the considerations around presentation and disclosure exist almost entirely
outside of the blockchain. A document written to a blockchain does not contact
the document itself, but rather the metadata of that document in order to
authenticate its use in the transaction. Likewise, if a digital asset represents
an ownership stake in a building or other physical asset, the auditor would
need to perform additional procedures to verify the physical component of the
transaction. There are important disclosure considerations associated with how
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50 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

token or the asset underlying the token. There are also additional challenges to
consider when identifying the completeness of related party disclosures.
• Valuation: Since transactions on a blockchain are denoted only in the underlying
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valuation policy is paramount to an auditor gaining an understanding over the
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a. Matching internal accounting policies and practices

Employing Blockchain will certainly improve client services but far greater
use of this technology is in internal accounting management. Blockchain can
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MREV  VSHFLÀFDOO\ LQ WKH DUHDV RI WD[ DQG DVVXUDQFH %ORFNFKDLQ ZRXOG EHFRPH D
congruent and perfectly matched record of transactions ensuring integrity and
transparency for everyone involved.

b. Real-time Audit trail and Assurance

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for assurance providers, advisors and organizational stakeholders. Overall risk
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ORJJHG E\ ERWK SDUWLHV WLPHVWDPSHG DQG YHULÀHG YLD GHFHQWUDOL]DWLRQ LQ FDVH
RI SXEOLF %ORFNFKDLQ 
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understand a clearer picture of a company’s financial standing and overall
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and minute details that may have otherwise been overlooked. Professional
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management regarding wasted resources, redundant practices, and bottleneck
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ZRUN E\ VLJQLÀFDQWO\ UHGXFLQJ WKH WLPH QHHGHG WR YHULI\ D FRPSDQ\·V DFFRXQWLQJ
entries. With Blockchain, the scope of auditing drastically increases since the
audit trail becomes more aggregated and accessible to accountants and other
regulators. As such, this will improve auditors’ chances of uncovering fraudulent
activity.

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VHUYLFHVDVVXUDQFHKRZEORFNFKDLQWHFKQRORJ\ZLOODරHFWWKHDXGLWKWPO

Western India Regional Council of The Institute of Chartered Accountants of India 51

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

c. Smart Contracts, Supply chain management and Real-time analytics

 6HOIH[HFXWLQJ SURJUDPPHG FRGH ZLWKLQ WKH (WKHUHXP %ORFNFKDLQ DFWV LQ
response to Smart contracts could be set up to automatically transfer funds/
assets based on commands inputted by users of the software or conditions
stipulated in receipts, royalty contracts, and payment schedules.

 ,QWHUHVW SD\PHQWV FRXOG DOVR EH PDQDJHG PRUH HරHFWLYHO\ XVLQJ VPDUW FRQWUDFWV
and additional ledger accounts. Capital asset accounts could integrate smart
contracts to regularly depreciate equipment in order to keep the net book
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XVLQJ %ORFNFKDLQ WHFKQRORJ\ LV 3URYHQDQFH 6WDWXV RI UDZ PDWHULDOV ZRUNLQ
SURFHVV DQG ÀQLVKHG JRRGV EHFRPHV PRUH WUDFHDEOH PRUH DFFXUDWH DQG OHVV
time consuming for the professional accountant to consolidate. Smart contracts,
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parts of the monthly consolidation process for sustainability and financial
reporting.

d. Taxation and Revenue Recognition

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DUH GRQH UHWURVSHFWLYHO\ +RZHYHU %ORFNFKDLQ WHFKQRORJ\ KDV WKH SRWHQWLDO
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WR DXWRPDWLFDOO\ FDOFXODWH YDOXHDGGHG WD[HV 9$7 JRRGV DQG VHUYLFHV WD[HV
*67 

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$QWL0RQH\ /DXQGHULQJ $0/  FRPSOLDQFH ZRXOG DOVR PDNH RUJDQLVDWLRQV OHVV
likely to engage in illicit tax practices. There would be more transparency,
making it easier for regulators to expose companies engaging in tax fraud.

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have to wait for their transactions to be cleared or balanced by an intermediary.
Additional ledgers can also be set up to track repair and maintenance
expenditures to capital assets, which can be cited in insurance clauses. Likewise,
DFFRXQWV UHFHLYDEOHSD\DEOH LQWDQJLEOH DVVHWV LQYHQWRU\ DFFRXQWV DQG ORQJWHUP
DQG VKRUWWHUP ORDQV ZLOO DOVR EH UHGHÀQHG E\ %ORFNFKDLQ32

32 Taxguru, ICAI Concept Paper On Blockchain Technology Adoption Trends And Implications
 )RU$FFRXQWDQF\3URIHVVLRQ 6HSW KWWSVWD[JXUXLQFKDUWHUHGDFFRXQWDQWEORFNFKDLQ
WHFKQRORJ\DGRSWLRQWUHQGVLPSOLFDWLRQVDFFRXQWDQF\SURIHVVLRQKWPO

52 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

SA 500 states that the objective of the auditor is to design and perform
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appropriate audit evidence to be able to draw reasonable conclusions on which
to base the auditor’s opinion.
In COVID times the appropriateness or the measure of audit quality has been
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which is required by the auditor. Since a lot of the data has been received
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been edited or changed by the client before it is shared with the auditor. In
the blockchain technology the data cannot be edited, it can only be added. This
reduces risk of fraud since every single transaction is recorded.

Western India Regional Council of The Institute of Chartered Accountants of India 53

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

It has been said that Blockchain will do for transactions what the Internet
did for information. What that means is that it allows increased trust and
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 +HQFH WKH FRQFHSWV RI EORFNV DV WLPH SURJUHVVHV LV JRLQJ WR EHFRPH PRUH DQG
more relevant. In my opinion, blockchain technology with its real time ledger
and triple entry accounting system can change the face of modern day audit.
We believe that blockchain technology can create an environment where the
only role of a chartered accountant will be checking and evaluating the role of
IT risks which may impact the end result of the audit process as a whole.

VIII. THE INTERNET OF THINGS

“The Internet is no longer a web that we connect to. Instead, it’s a computerized,
networked and interconnected world that we live in. This is the future and what we’re
calling the Internet of Things.”
-Bruce Schneier, Security Technologist and Author
Wireless technology already allows devices including mobile phones, tablets, and
computers to communicate with the internet from almost anywhere. But now, devices
QRW WUDGLWLRQDOO\ FRQVLGHUHG ´VPDUWµ VXFK DV DSSOLDQFHV FDU GLDJQRVWLFV +9$& V\VWHPV
DQG ZHDUDEOH ÀWQHVV PRQLWRUV DUH XVLQJ VHQVRUV WR FDSWXUH GDWD DQG WUDQVPLW LW WR
the internet.33
7KH IXWXUH VWLPXODWHG E\ &29,'  ZLOO VHH HYHU\ VLQJOH DSSOLDQFH DQG GHYLFH KDYH
internet connectivity capability. Internet connectivity will also mean that devices will
be able to provide updates to their manufacturers. Do you want to know how often
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LW EUHDNV" 2U KRZ PDQ\ GHYLFHV WKDW FXVWRPHU KDV LQ KHU KRXVH" 7KH ,R7 ZLOO RQH
GD\ SURYLGH WKDW W\SH RI LQYDOXDEOH PDUNHW LQWHOOLJHQFH WR &$ ÀUPV· FRUSRUDWH FOLHQWV
%\ DOORZLQJ IRU PRUH UHDOWLPH FDSWXUH RI UHOHYDQW LQIRUPDWLRQ IRU EXVLQHVV SODQQLQJ
and resource allocation, the IoT enables businesses to improve processes, reduce
costs, and manage risks. It allows companies to gather behavioural information on
customer usage and buying preferences to increase revenues. Internet of things will
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systems. Internet of things will provide an insight into warning signals and will provide

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FRP&RQWHQWPHGLD352'8&(5B&217(171HZVOHWWHUV$UWLFOHVB&3$0$<LPSDFWB&3$V
MVSaWH[W 7KH,R7KDVWKHSRWHQWLDODVSHFWVRIDFFRXQWLQJDQG
DXGLWLQJ WH[W 7KLQJV ,R7 7KH,R7KDVWKHSRWHQWLDOWRUHYROXWLRQL]H
the%20way%20businesses,aspects%20of%20accounting%20and%20auditing.

54 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

D JUHDWHU XQGHUVWDQGLQJ RI ULVNV :RUOG &ODVV PLGVL]HG &$ ÀUPV VKRXOG EH KLULQJ
smart professionals who should be technology driven. The future audit, taxation and
compliance client work is going to be primarily dependent upon the data recorded by
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EH GRQH IURP KRPH ,W KDV VWLPXODWHG WKH JURZWK RI HVHUYLFHV OHDYLQJ WKH DJH ROG
paperwork behind. After the dot com revolution we saw companies shift to websites.
Auditors had to take on professional understanding of how a simple website works
in order to understand the risks involved in a single transaction.

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It is believed that IoT can remodel the accounting and billing industry. Since it
connects all devices on a global scale, the data harvested by each connected device
can be translated into stellar strategies. IoT can be used with suitable accounting
software to automate the process of accounting and billing to improve its overall
productivity. Thus, IoT has the potential to enhance the accounting system in many
ways.

Connectivity within accounts

$Q DXGLW LV DQ LQWHJUDO SDUW RI HYHU\ RUJDQL]DWLRQ +RZHYHU RQO\ WKRVH SHRSOH ZKR
are on the receiving side can understand the pain, stress, and chaos that is involved
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JDWKHU WKH ÀQDQFLDO GDWD DQG FRPSLOH LW SURSHUO\ IRU WKH DXGLWRUV WR FKHFN

Western India Regional Council of The Institute of Chartered Accountants of India 55

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

This SURFHVV FRXOG EH KDVVOHIUHH LI DOO WKH OHGJHUV ZHUH FRQQHFWHG WUDQVDFWLRQV DQG
RWKHU HQWULHV OLNH GRQDWLRQV ZHUH UHFRUGHG VRUWHG DQG YHULÀHG LQ UHDOWLPH DQG WKH
status of each transaction was trackable. This would save plenty of time as well as
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power to make all this possible.

In fact, it has the tendency to empower the businesses to use connected tools and
DQDO\VH FRQVROLGDWH VWRUH DQG SURFHVV WKH ÀQDQFLDO GDWD LQ UHDOWLPH ,Q WKLV ZD\
it leads to little or no stress on the accounting team. IoT used in conjunction with
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ÀQDO DFFRXQWV EDVHG RQ DPHQGPHQWV LQ DFWV DQG FRPSOLDQFH ,W FDQ DXWR FDOFXODWH
SHQDOWLHV EDVHG RQ QRQFRPSOLDQFH ODWH ÀOLQJ RU DQ\ RWKHU DQRPDO\

Optimization
IoT connects devices to each other devices, which leads to cost, time, and process
RSWLPL]DWLRQ 8VLQJ ,R7 WKH EXVLQHVVHV FDQ KDYH EHWWHU LQIRUPDWLRQ DERXW WKHLU
workforce.

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can assess the downtime, most productive time, most productive employees, and even
decipher the area/employee that needs replacement.

It facilitates the businesses to leverage the power of information to carry out

performance appraisal of every employee. In this way, IoT empowers the organization
and allows it to optimize all its processes.

Handling the Balance Sheet

For any organization, inventory tracking is a tedious and intimidating process. Tracking
everything from a single piece shipped to the customers across the globe to the
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power of IoT to enhance the process of inventory tracking.

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facilitates tracking. It gives data related to the exact location of the product, its name,
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who has/owns it. Not just tracking, but IoT helps in overall inventory management.

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6PDUW VKHOYLQJ FDQ EH FUHDWHG WR DOORZ EXVLQHVVHV WR ÀQG WKH GHWDLOV RI LQYHQWRU\ DW
any time. This information can then be employed by businesses to make decisions
whether they need to order a particular product or not along with the quantity

56 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

required. This prevents unnecessary wastage and it even avoids the situation of
depleted stocks.34
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SURFHVV ÁRZ RI D WUDQVDFWLRQ EDVHG RQ VHQVRUV DQG 5),' WUDFNLQJ FDQ EH YHU\ GL඼FXOW
+RZHYHU MXVW OLNH WKH PRGHUQ &$ ÀUP WUDQVLWLRQHG IURP WKH XVH RI W\SHZULWHUV LQWR
WKH XVH RI FRPSXWHUV WHFKQRORJLHV OLNH LQWHUQHW RI WKLQJV EORFNFKDLQ DQG DUWLÀFLDO
intelligence will be eased into audits and taxation as well. In our opinion resistance
to change is the only thing that may prevent CA firms from operating. The only
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ERRP LV WDNLQJ SODFH VLJQLÀFDQWO\ IDVWHU +HQFH HYHU\ PLGVL]HG ÀUP WR VWD\ UHOHYDQW
in this super dynamic environment should be ready to smoothen the transaction by
having a basic understanding of this technology.
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wherein the requirement of personal touch has reduced significantly by better,
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professionals who aren’t ready to be more tech savvy.
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SXVKHG &$ ÀUPV WR DQ LQÁHFWLRQ SRLQW ZKHUH HPEUDFLQJ WHFKQRORJ\ LV QR ORQJHU DQ
option but a necessity. It has also made workers more vulnerable. With the right steps
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“The Internet of Things is not a concept; it is a network, the true technology-enabled
Network of all networks.” — Edewede Oriwoh

IX. CLOUD BASED AUDIO AND VIDEO CONFERENCING

“Video Conferencing during these COVID times is what keeps an organization relevant.”
&ORXG EDVHG DXGLR DQG YLGHR FDOOV H[LVWHG VLQFH WKH HDUO\ V KRZHYHU WKH\ EHFDPH
WKH QHHG RI WKH KRXU GXULQJ WKH ORFNGRZQ ,W LV LPSRVVLEOH IRU D 0RGHUQ &$ ÀUP
to function without having a way of communicating with employees, clients and
customers. Communication in this pandemic turned out to be the knight in shining
armor protecting us from the health war.
Before seeking out vendors and pricing options, the first step should always be
evaluating your needs. The advantage of using cloud solutions is that as the needs
change, you can easily scale up or down to match the same. To start, answer these
ten questions about your current requirements:
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 +LWHQGUD5DWKRUH+RZ:LOO,R7,PSDFWWKH$FFRXQWLQJDQG%LOOLQJ6\VWHP" -XQH KWWSV

G]RQHFRPDUWLFOHVKRZLRWZLOOLPSDFWWKHDFFRXQWLQJDQGELOOLQJV\V

Western India Regional Council of The Institute of Chartered Accountants of India 57

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

 'R ZH KDYH UHPRWH RU ZRUNIURPKRPH HPSOR\HHV"

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0HHWLQJ URRP V\VWHP

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partners to manage their time appropriately and at the same time also be updated

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FRPHQUHVRXUFHVJXLGHVWKHXOWLPDWHJXLGHWRFORXGYLGHRFRQIHUHQFLQJaWH[W :LWKFORXG
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is%20designed%20to,collaboration%20solution%20for%20your%20needs.

58 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

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0HHW KDV WKH IXQFWLRQDOLW\ WR GLUHFWO\ EORFN PHHWLQJ WLPH RQ WKH *RRJOH &DOHQGDU
and constantly sending updates and reminders. Presentations and documents can be
shared using the facility of ‘Screen Share’. Screen sharing allows for visualisation of
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the data.
The benefits of Cloud based audio and video conferencing have been elucidated
hereinafter:
 Affordable: Cloud based video conferencing reduces the travel costs and
other infrastructure costs. Offices do not need to bear costs have holding
big conference rooms. Online video conferencing allows for connectivity at a
cheaper price. Zoom has a limited cost for unlimited minutes of video meetings.
  Increased efficiency: &ORXGEDVHG YLGHR FRQIHUHQFLQJ LV IDVWHU WR GHSOR\
manage and use. It has very little impact on the IT team because anyone can
set it up. Once trained or adept, with the relevant use of cloud infrastructure,
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YROXPHV RI GDWD DQG LQIRUPDWLRQ H඼FLHQWO\
  Simpler management and usability: You don’t need to worry about keeping
the video network up and running. The service provider will typically manage
the solution. Administrators can simplify their tasks and access critical
information through an intuitive web console to control users and settings
quickly and easily. Additionally, it is simpler for sector/department specific
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YLVjYLV D VSHFLÀF VHFWRU RU GHSDUWPHQW 7KLV HQKDQFHV FROODERUDWLRQ DFURVV
various departments.
  Ensuring you entitle your entire company: Enable every employee and every
PHHWLQJ URRP ZLWK D VXLWDEOH FORXGEDVHG YLGHR FRQIHUHQFLQJ VROXWLRQ
  Make use of automated cloud-based software updates: You will never have
WR ZRUU\ DERXW KDYLQJ WR XVH RXWRIGDWH RU DQ ROGHU YHUVLRQ RI VRIWZDUH :LWK
FORXGEDVHG YLGHR FRQIHUHQFLQJ IHDWXUH XSGDWHV DUH DXWRPDWLFDOO\ SXVKHG WR DOO
connected video systems and applications to ensure that your team is running
on the latest software version.
  Enjoy high quality: <RX FDQ EULQJ KLJKTXDOLW\ YLGHR DQG DXGLR WR WKH PHHWLQJ
room and mobile devices.
  Experience increased security: Support for secure firewall traversal allows
you to conduct your meetings with coworkers and partners, suppliers and
anyone outside your organisation. Support for encryption lets you conduct your
meetings with cRQÀGHQFH

Western India Regional Council of The Institute of Chartered Accountants of India 59

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

  Remove interoperability: You can remove the burden of providing

interoperability among multiple users irrespective of their preferred devices,
LQFOXGLQJ VWDQGDUGVEDVHG YLGHR V\VWHPV ODSWRSV WDEOHWV DQG VPDUWSKRQHV
  Enable recording and sharing: You can record video calls with one click from
every type of device, whether it be a laptop, tablet or smartphone. You can
also access recorded videos instantly and have them neatly organised in your
personal video library where they can be easily viewed and shared.
   Join from your browser: You can have all the rich features that you are used
to in your desktop and mobile apps in your web browser.
   Audits: 2QOLQH DXGLWV FDQ EH H[WUHPHO\ KHOSIXO 5DZ GDWD FDQ EH VHQW RYHU DQG
hence there is no risk of data being tampered. Fraud risk becomes relatively
ORZHU DV FRQÀUPDWLRQV FDQ EH FRQGXFWHG DQG UHFRUGHG RYHU ]RRP PHHWLQJV
LWVHOI DQG WRGD\ HOHFWURQLF GDWD DQG UHFRUGLQJV DOVR VHUYH DV DQ HරHFWLYH PHDQV
of evidence in a court of record. Information can be transferred by a client
and the same can be monitored over call. Further, the use of enhanced online
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VZLWÁ\ WKXV VDYLQJ WLPH DQG UHVRXUFHV
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Software implementations with respect to videoconferencing have several
WKHRUHWLFDO EHQHÀWV
First, client software can be more widely and immediately deployed because it
is installed on computers and other devices already in use, provided, of course,
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the operating system for which the software was designed, and have video and
audio capabilities.
Second, videoconferencing can be made increasingly mobile because client
software can be installed on laptops, tablet computers, smartphones, and other
devices equipped with cameras and one or more forms of wireless technology.
Although traditional videoconferencing appliances can be connected to wireless
antennae and moved about, their inherent size and that of cameras and
monitors to which they connect limit mobility.

 %HQHÀWV2I&ORXG%DVHG9LGHR&RQIHUHQFLQJ 0DU KWWSVZZZDFWLVFRLQEHQHÀWV

FORXGEDVHGYLGHRFRQIHUHQFLQJaWH[W  5HGXFHGFRVWV$$FORXGQR
H[SHQVLYHLQIUDVWUXFWXUHWRGHSOR\ WH[W  (QMR\KLJKTXDOLW\$
You,meeting%20room%20and%20mobile%20devices.

60 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Third, cloud technology is more scalable, limited only by the capabilities of

the computers on which the server software is installed, the capacity of the
networks used for communication, and licensing costs. Because traditional
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DQG YDULRXV PRGHOV KDYH DQ XSSHU OLPLW FRQQHFWLRQ FDSDFLW\ HJ    HWF 
each of which is priced at multiples of single units, scalability is an issue. Finally,
the use of client software on existing computing platforms introduces economies
of scale and the potential to reach more end users directly. The intended
target user population is anyone working anywhere. In contrast, traditional
videoconferencing units are costly, intended for institutional use in exam rooms,
conference rooms, or classrooms, and usually require trained users and technical
support.37
From the perspective of a CA Firm comparable with international standards,
in our opinion, even after the pandemic ends and things get back to the
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VWDUW ZLWK ZKHUHLQ  RI WKH ZRUN FDQ EH FRQGXFWHG UHPRWHO\ IURP KRPH
+RZHYHU ZH PD\ VWLOO XVH  RI VLWH YLVLWV IRU DXGLWV DQG RWKHU FOLHQW ZRUN
where physical appearance is required. In our prediction we are looking at
approximately the year 2025 wherein most of the work will be conducted over
WKH FORXG DQG ZH FRXOG RSWLPLVWLFDOO\ HYHQ UHDFK D  UDWLR RQ VLPLODU OLQHV
0RVW RI WKH PHHWLQJV ZLOO EH FRQGXFWHG YLD YLGHR FRQIHUHQFLQJ 7KH UHDVRQ
video conferencing can be so helpful is that it gives global connectivity. With
=RRP DQG *RRJOH 0HHW DQG YDULRXV VXFK DSSOLFDWLRQV LW GRHV QRW UHDOO\ PDWWHU
apart from the governing regulations whether the audit has been conducted in
the same country or abroad.
Every single client will have access to the best possible services at the most
affordable prices. Cloud based video conferencing opens us to a world of
globalization and combination.

 :HL/L/LX.DL=KDQJ&UDLJ/RFDWLVDQG0LFKDHO$FNHUPDQ&ORXG$QG7UDGLWLRQDO9LGHRFRQIHUHQFLQJ
7HFKQRORJ\)RU7HOHPHGLFLQH$QG'LVWDQFH/HDUQLQJ 0D\ KWWSVZZZQFELQOPQLKJRYSPF
DUWLFOHV30&

Western India Regional Council of The Institute of Chartered Accountants of India 61

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

X. REMOTE AUDIT, RISK AND COMPLIANCE, E-FRAUD ASSESSMENT AND

DETERRENCE: TRADITIONAL VS MODERN AUDITS
“The future of audits does not lie in being at the client place but being able to conduct
the same work remotely.”
7KH UHPRWH VWDWXWRU\ DXGLW IUDPHZRUN FDQ EH XQGHUVWRRG XVLQJ WKH ÁRZFKDUW EHORZ

62 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

For audits to be FRQGXFWHG UHPRWHO\ GXULQJ WLPHV RI &29,'  D PRGHUQ &$ ÀUP
KDV WR SURWHFW WKH VHFXULW\ RI WKLV FOLHQW FRQÀGHQWLDO GDWD 7KH VDPH FDQ EH GRQH E\
enabling a private cloud for storing the information within the audit team. Employees
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else. The auditor has to make sure that the client data stored within the cloud has
been encrypted and is secure.
Selection of samples can be based upon audit guidelines and samples can be selected
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ÀUPV PD\ XVH =RRP JRRJOH PHHW &LVFR :HEH[ RU DQ\ RWKHU IRUP RI RQOLQH YLGHR
FRQIHUHQFLQJ WR PDNH VXUH WKDW WKHVH FRQÀUPDWLRQV DUH RSHQHG DQG LGHQWLÀHG E\
WKH DXGLWRU ZKLOH WKH\ DUH DYDLODEOH RQ FDOO *RRJOH 0HHW =RRP HWF SURYLGH WKH
functionality of recording the meetings. This functionality makes sure that the auditor
can go back to the recording of the meeting to understand anything that he may
have missed out. Earlier, what used to happen is that during walkthroughs and
meetings the auditor could not record the meeting. This lead to issues such as the
client explanations of processes being forgotten or major risk areas being missed out.
:LWK RQOLQH UHFRUGHG PHHWLQJV WKH H඼FLHQF\ RI WKH DXGLWRU LQFUHDVHV VHYHUDO WLPHV
over since he can refer to the video multiple times and make sure he has obtained a
proper understanding of the processes before he performs any tasks.
5DZ GDWD H[WUDFWHG IURP WKH V\VWHP PHDQV WKDW WKH GDWD FDQQRW EH DGMXVWHG DQG
KHQFH FKDQJHV LQ GDWD RU GDWD PRGLÀFDWLRQ DV D ULVN FDQ EH FRPSOHWHO\ UXOHG RXW
Certain audit clients provide system access to their auditors which makes it very
simple for an auditor who know has access to use whatever data he may require from
WKH V\VWHP +RZHYHU IRU WKH FOLHQW WKLV PD\ H[SRVH KLV ÀQDQFLDO GDWD DQG KHQFH D
FKHFN QHHGV WR EH PDLQWDLQHG RQ WKH VDPH $V D PLGVL]HG &$ ÀUP ZH KDYH FRPH
across several issues while extracting the Ledger Accounts. It has happened many a
times during virtual audit that the ledger accounts which have been extracted, have
QRW EHHQ H[WUDFWHG HQWLUHO\ RU FHUWDLQ GXPS RI GDWD LV PLVVLQJ +HQFH LW LV LPSRUWDQW
that the auditor uses the entire dump and does not compromise on the size of the
data provided.
In case the client does not allow screen recording of areas like revenue, expenses,
accounts receivable the same must be mentioned in the final report and an
explanation should be taken from the client for the same. As an alternative we
recommend that the auditor may use CCTV footage in extreme scenarios wherein
screen recording cannot be provided.

$ +RZ 'LJLWLVDWLRQ FDQ LPSDFW $XGLW $ ÀQDQFLDO UHSRUWLQJ SHUVSHFWLYH

Inventory
Since the supply chain might have come to a halt, the stock of inventories kept
would have increased. Inventories need to be valued at the lower of cost or

Western India Regional Council of The Institute of Chartered Accountants of India 63

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

1HW 5HDOLVDEOH YDOXH 159  RQ WKH EDVLV RI ,QGLDQ $FFRXQWLQJ 6WDQGDUGV ,1'
$6   +HQFH LQ FDVHV ZKHUH WKH 1HW UHDOL]DEOH 9DOXH LV ORZHU LW PXVW EH YDOXHG
DW WKH 159 DIWHU FDUHIXO H[DPLQDWLRQ 7KH À[HG RYHUKHDG FRVW DOORFDWLRQ KDV WR
be based on normal capacity ignoring the idle plant. As for inventory, auditors
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an inventory count.

Impairment Test For Assets

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ILQDQFLDO DVVHWV OLNH SURSHUW\ SODQW  HTXLSPHQW LQWDQJLEOHV DQG JRRGZLOO
considering reduced economic activity, change in financial forecast and
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QRWH LQ ÀQDQFLDO VWDWHPHQWV ZLWK UHJDUG WR DQ LPSDLUPHQW WHVW FDUULHG RXW ZLWK
a sensitivity analysis. Digitised applications can provide a benchmark in these
situations and help in adjusting the value of the assets based on the available
benchmarks.

Financial Instruments And Their Valuation

Current market sentiments are not the correct representative for the market
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understand the volatility and the volume of transactions and volatility thereto
before estimating current market prices. Accordingly, additional care must
be taken in case of the financial assets and financial instruments which are
PDUNWRPDUNHW SULFH DW WKH HQG RI WKH SHULRG 5DWHV VKRXOG EH UHYLHZHG IRU
incorporating forward looking estimates based on the expected credit loss
model. Digitisation can be used to understand the market prices after setting
an appropriate trading volume standard.

Bad Debts
 7UDGH 5HFHLYDEOHV DW WKH HQG RI WKH \HDU PD\ FHUWDLQO\ JLYH ULVH WR TXHVWLRQV
with regards to liquidity. Payments may go beyond their due dates and hence
management must provide for doubtful debts. Firms may use data analytics to
check for the period for which debtors have been outstanding. This analysis will
help in determining whether debtors have been paying periodically or not and
also will help in determining their credit worthiness.

Borrowing Costs
There has been a disruption of work due to lockdown and since this period
refers to one wherein the period of active development has been interrupted
such borrowing costs cannot be capitalized and should be shown separately
DV DQ H[SHQVH LQ WKH SURÀW DQG ORVV 'LJLWLVDWLRQ FDQ EH XVHG E\ DXGLWRUV WR

64 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

determine the amount of days active development has actually occurred without
any disruptions and can be hence used in analysing the borrowing cost to be
capitalised.

([WHUQDO &RQÀUPDWLRQV
Auditor shall perform alternate audit procedures if inadequate / no responses
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FDQ EH XVHG WR UROO RXW FRQÀUPDWLRQV ZLWK HOHFWURQLF VLJQDWXUHV DQG ZDWHUPDUNV
RI WKH ÀUP WR DYRLG SK\VLFDO VLJQLQJ DQG SDSHUZRUN
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2I *RLQJ &RQFHUQ
Considering the fact that lot of estimation and assumptions will be involved for
factors such as impairment of assets, provision for onerous contract, contractual
penalties, contingent liabilities, repayment of debts, etc., and the unfavourable
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ZKLFK FDQ EH UROOHG RXW WKURXJK DQ HPDLO

Group Audit
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DXGLWRUV DUH ORFDWHG LQ VHYHUHO\ DරHFWHG SODFHV WKH SULQFLSDO DXGLWRU PD\ PDNH
XVH RI DOWHUQDWLYH GLJLWDO WRROV LQ WKH IRUP RI YLGHR FRQIHUHQFLQJ ÀOLQJ GHWDLOHG
questionnaire, etc. for conducting the audit. It shall consider the impact of
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have been creatin g and outsourcing customised software which looks after the
consolidated entities including their governing laws and accounting treatments.

Forensic Auditing and Accounting

The vast amount of scams and corporate scandals taking place in the country
and on a global scale, have opened new opportunities for accountants in areas
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WKH 8QLWHG 6WDWHV WR SUHYHQW DQG GHWHFW ZKLWH FROODU FULPHV
A CA’s expert knowledge of accounting and finance; combined with
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XVLQJ GLJLWDO WRROV PDNHV DFFRXQWDQWV· LGHDO IRU LQYHVWLJDWLQJ FULPLQDO ÀQDQFLDO
transactions and even scams on a larger scale. Forensic accountants help with
LQWHUSUHWLQJ ZKHWKHU DFWLYLWLHV DUH LOOHJDO LQ VXFK DUHDV DV ÀQDQFLDO VWDWHPHQW
fraud, money laundering and illegal routing of funds, embezzlement of funds,
ZKLWH FROODU FULPHV LQVROYHQF\ DQG EDQNUXSWFLHV SROLF\ FODLPV DQG VHFXULW\
transactions related fraud. They work with advocates, enforcement personnel,

Western India Regional Council of The Institute of Chartered Accountants of India 65

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

the government bodies and can also act as expert witnesses during court
proceedings providing a record of the information gathered and analysed during
the course of inquiry and investigation.
The increased use of digitization increased cyber crimes such as; identity theft,
HPDLO SKLVKLQJ GHYLFH KDFNLQJ VRIWZDUH SLUDF\ GHOLEHUDWHO\ VSUHDGLQJ FRPSXWHU
YLUXVHV ZLWK DQ DLP WR GHVWUR\ GDWD VWRUH WKHUHLQ RQOLQH WKHIW RI ÀOHV DQG GDWD
digital scams, bank related frauds and so on. The job market is open to CAs
WR SUHYHQW VXFK IUDXGV 7KHUH DUH HYHQ VSHFLDOL]HG FHUWLÀFDWH FRXUVHV DYDLODEOH
for specialization in such areas, thus enhancing the value and demand of such
H[SHUWV WZRIROG

XI. REMOTE CONSULTANCY

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economic contingency plan38 2SSRUWXQLVWLF ÀUPV RXJKW WR FDSLWDOL]H RQ WKLV UHPRWH
revolution.
In the traditional days of consulting, consultants on site directly contributed to the
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DQG VDZ LQSHUVRQ FROODERUDWLRQ DQG IDFHWRIDFH PHHWLQJV DV WKH PRVW HIILFLHQW
SUDFWLFH %XW ZLWK WKH SDQGHPLF DQG WHFKQRORJLFDO JURZWK DQG WKH ULVH RI 5HPRWH
working, this is no longer the scenario. Working with a remote consultant can be just
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Consulting in this context would involve advising on aspects of Tax, Direct or indirect,
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ELODWHUDO DJUHHPHQWV DQG $FWLRQ 3ODQV XQGHU %DVH (URVLRQ 3URÀW 6KLIWLQJ $XGLW DQG
$VVXUDQFH &RUSRUDWH 5HVWUXFWXULQJ 0HUJHUV DQG $FTXLVLWLRQV DQG EXLOGLQJ WD[
H඼FLHQW EXVLQHVV PRGHOV /LWLJDWLRQ VWUDWHJ\ )RUHQVLFV DQG $FFRXQWLQJ $VSHFWV RI
)(0$ 6HFXULWLHV DQG ([FKDQJH %RDUG RI ,QGLD 5HJXODWLRQV %ODFN 0RQH\ $FW 0RQH\
Laundering, Insolvency and Bankruptcy Code, Banking and investments and every
other regulation; and other relevant aspects that could be associated with the role of
a CA. In a nutshell, it basically involves everything right from the establishment of a
business or a company, to restructuring, to dissolution of the same.
Consulting is all about delivering services, but as technology and professional services
transition to the cloud, the way in which services are provided, consumed, processed
DQG LQYRLFHG LV DOVR FKDQJLQJ &RPSDQLHV ZDQW WR EH H඼FLHQW WKH\ ZDQW WR LQYHVW
LQ WKHLU KXPDQ FDSLWDO DQG WKLV LV ZKHUH FRQVXOWLQJ DV D VHUYLFH YL] &DD6 RරHUV DQ

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ZZZIRUEHVFRPVLWHVODXUHOIDUUHUHQWKXVLDVWLFYHUVXVH[SHULHQFHGZKDWWRORRNIRULQD
UHPRWHZRUNFRQVXOWDQW"VK FEHDD

66 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

alternative. Traditional consulting typically requires clients to spend on overhead,

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value to projects. In a CaaS model, firms are searched for remotely and services
provided at a lower cost, while performing the same activities. CaaS focuses on
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RරHULQJ LQFOXGHV KLJKO\ TXDOLÀHG PHQWRULQJ UHVRXUFHV GHSOR\PHQW PHWKRGRORJLHV
that meet best practice from the relevant knowledge areas and innovating governance
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demand access to the progress and status of their project.
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to lower rental and travel costs, and higher retention rates and productivity of top
WDOHQW ZLWK LQFUHDVHG UHWXUQV ,W DOORZV ÀUPV WR JURZ WKHLU VHUYLFHV E\ ZRUNLQJ ZLWK
clients in other regions, on a national and international level. Partners can line up
more meetings back to back with no commuting between appointments, while
PDQDJHUV FDQ FRQWLQXH WR VXSHUYLVH WKH ZRUNLQJ RI WHDPV UHPRWHO\ DOORZLQJ WKH ÀUP
WR JHQHUDWH PRUH UHYHQXH DQG DW D IDVWHU SDFH 7KLV VDPH VNLOO VKDULQJ NQRZOHGJH
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1RZ PRUH DQG PRUH RUJDQL]DWLRQV LQFOXGLQJ 7ZLWWHU )DFHERRN $SSOH *RRJOH DUH
WDNLQJ WKH OHDS LQWR UHPRWH ZRUN LQ UHVSRQVH WR &29,'
8OWLPDWHO\ WKHUH DUH JRLQJ WR EH YDULRXV ÀUPV RරHULQJ WR SURYLGH VHUYLFHV GXULQJ WKLV
JOREDO HFRQRPLF FDWDVWURSKH EXW WKH UHDO TXHVWLRQ LV WKLV WKHUH·V D ELJ GLරHUHQFH
between a mere advisor and a consultant. Business usually turn to CAs for help
with restructuring businesses. But the professional world is booming with passionate
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XVXDOO\ VSHFLDOL]H LQ EULFNDQGPRUWDU EXVLQHVVHV DQG DUHQ·W HTXLSSHG WR DGYLVH RQ
the nuances of virtual operations. Amidst the same, clients want professionals whom
they can trust and who can effectively guide them through remote work change
management.40
8QGHU UHPRWH FRQVXOWDQF\ WKHUH LV QRWKLQJ GLරHUHQW 7KH VDPH VHUYLFHV DUH RරHUHG
KRZHYHU UHPRWHO\ 7KXV LW LV LPSHUDWLYH WR   OHYHUDJH WKH EHVW RI ZKDW \RX KDYH³
LGHDV SHRSOH DQG RWKHU UHVRXUFHV³ZKHUHYHU WKH\ PD\ EH DQG   FKDOOHQJH WKH
traditional norm to adapt to changing times.

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FRQVXOWLQJXVQHZVFRQVXOWLQJDVDVHUYLFHUHPRWHFRQVXOWDQF\VXSSRUWDWDORZHUFRVW
 /DXUHO)DUUHU(QWKXVLDVWLF9HUVXV([SHULHQFHG:KDW7R/RRN)RU,Q$5HPRWH:RUN&RQVXOWDQWKWWSV
ZZZIRUEHVFRPVLWHVODXUHOIDUUHUHQWKXVLDVWLFYHUVXVH[SHULHQFHGZKDWWRORRNIRULQD
UHPRWHZRUNFRQVXOWDQW"VK FEHDD

Western India Regional Council of The Institute of Chartered Accountants of India 67

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

%HQHÀWV RI 5HPRWH &RQVXOWDQF\

Cost Savings
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paying for logistical travel and expense costs.
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WR FRPH RQVLWH WKH\ FDQ VSHQG WKLV PRQH\ HOVHZKHUH WR KHOS WKHLU EXVLQHVV JURZ
Companies can dedicate the time saved on travel to other projects and work. Quite
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engagements, consultants will only bill for active working hours or on a retainer
basis. Especially for engagements of a longer duration, the cost reduction can be
substantial. Similarly, for the consulting firm, it reduces travel expenses, which
can be used in other areas of the firm; other administrative and overhead costs
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increases the return on the consulting investment, which is minimal.
“Our implementation was completed on time and within budget.”
- IT Director, Canadian Largest Retailer42

No Travel Time = More Project Time Available

The time that would be spent traveling, can be invested on ‘billable’ hours.
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LQVWDQFH LI D FRPSDQ\ LV HPEDUNLQJ RQ D QHZ (QWHUSULVH 0RELOLW\ 0DQDJHPHQW
(00  SURMHFW DQG WKH ÀUP GRHV QRW KDYH DQ\ GHGLFDWHG PRELOLW\ VWDර LW PD\ EH D
good bet to choose a remote working option. Onsite consultants are dedicated to
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PXOWLSOH FOLHQWV DW WKH VDPH WLPH 5HPRWH FRQVXOWLQJ ÀUPV FDQ ZRUN ZLWK PDQ\ ÀUPV
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meeting alteration or emergency can be simply rescheduled and the time recouped
JLYHQ HQRXJK OHDGWLPH43

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ZRUNLQJZLWKDUHPRWHFRQVXOWDQW
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68 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

5HPRWH ZRUNLQJ GLVFDUGs the need to travel and allows the workforce to dedicate
PRUH WLPH IRU ZRUNLQJ VHVVLRQV PHHWLQJV WUDLQLQJV DQG WLPHO\ IROORZXSV 5HGXFLQJ
travel time can also help improve the productivity of consultants, prevent jet lag
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point of time in the day. Thus, remote consultancy leads to accelerated outcomes.
“Time preparing and travelling to a meeting is 3X time spent on a videoconference”
-Forrester Research44

Agile Project Methodology

While traditional consulting used a very straightforward consultancy model, the agile
method has recently become popular. In the past, consultants would meet with
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consultants would merely rely on data provide during such sessions and this often
resulted in companies rushing and providing incomplete requirements, causing the
overall opinion to be inappropriate to the case at hand. With the agile methodology,
consultants engage with their clients on a recurring basis, with meetings and feedback
sessions being held online. Consultants follow a piecemeal approach, whereby, they
gather information and deliver a portion of the requirements before moving onto the
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RQ D WLPHO\ EDVLV 7KH DJLOH PRGHO DV WKH QDPH VXJJHVWV DOVR RරHUV D KXJH DPRXQW
RI ÁH[LELOLW\ DQG DGDSWDELOLW\

Working Like A Multinational Company

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ORFDWLRQV RU DUH H[SDQGLQJ WR GLරHUHQW ORFDWLRQV $V D UHVXOW WKH\ KDYH WR D GHYHORS
the tools to work on an international scale. Working as a remote consultant can
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ZRXOG KDYH WKURXJK RQVLWH FRQVXOWLQJ $ ÀUP FDQ GHYHORS VWUDWHJLHV WHFKQLTXHV DQG
procedures around such consulting services and face remote challenges.

Hire and Assign The Best Talent

Consulting services organizations that embrace the remote engagement model can
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employees from all across the globe.
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home, which further enhance job satisfaction, include:
• Improved work/life balance: 5HPRWH ZRUNHUV KDYH D ORW PRUH ÁH[LELOLW\ WR
coordinate personal activities around work, giving them the ability to spend
 5HPRWH&RQVXOWLQJ6HUYLFHVKWWSVZZZD[LRVV\VWHPVFRPUHPRWHSURIHVVLRQDOVHUYLFHV

Western India Regional Council of The Institute of Chartered Accountants of India 69

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

more time on things they want to do and with their families, and where, when
and with whom they want to do them.
• Greater productivity: Time that would be spent travelling to a customer site
RU RQ D ORQJ FRPPXWH WR WKH R඼FH FDQ QRZ EH LQYHVWHG RQ SURGXFWLYH ZRUN
related tasks. Eliminating distractions, provides additional opportunities for
increased productivity. And since remote workers are not physically constrained
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VWUHDPV PRUH H඼FLHQWO\ UHVXOWLQJ LQ KLJKHU XWLOL]DWLRQ UDWHV LQFUHDVHG H[SRVXUH
to clients and/or more learning opportunities.
• Better workplace conditions: 5HVRXUFHV DVVLJQHG WR UHPRWH HQJDJHPHQWV
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DEOH WR SURYLGH 7KH\ FDQ DOVR HQVXUH WKDW WKHLU ZRUNVSDFH ÀWV WKHLU ZRUN VW\OH
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HTXLSPHQW RQ GHPDQG DPRQJ RWKHUV  %HWWHU ZRUNVSDFHV PHQWDOO\ SURPRWH
better work.45
• Flexibility in work hours: Some individuals like to be early worms while some
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KDYH WKH ÁH[LELOLW\ RI ZRUNLQJ DV DQG ZKHQ WKH\ OLNH SURYLGHG GHDGOLQHV DUH
met.

Flexibility in Deployment of Resources46

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LQGLYLGXDOV ZKR ZRXOG RWKHUZLVH EH LQDFFHVVLEOH RU XQDYDLODEOH IRU D VSHFLÀF SURMHFW
or location. This model makes it possible for resources in any time zone or country
to participate in an engagement without the complications associated with being
‘onsite’. Staffing managers can now focus on finding the best resources for their
PDMRU SURMHFWV ZLWKRXW KDYLQJ WR ZRUU\ DERXW H[WHUQDO IDFWRUV VXFK DV OLPLWHG ÁLJKW
availability, high cost of travel or having to request and wait for visas to be approved
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through a more granular assignment of resources to project tasks and/or phases.
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WR IXOO ZHHNV ZKHQ JRLQJ RQVLWH ² LW EHFRPHV HDVLHU IRU SURMHFW PDQDJHUV WR VFKHGXOH
and assign resources with the required skillset for each task.

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EHQHÀWVUHPRWHFRQVXOWLQJ]DLGKDLPDQ"VUF DරOLOSDU YHK DරBVUFDරOLOSDUBFSDUWQHUVBSNZBSOF
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*PE+BSFULGBOHDUQLQJ FOLFNLG 5D71I5(7[\25$$Z8[0R48N(Z59N=NQ5 LUJZF 
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70 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

5HPRWH FRQVXOWLQJ DVVLJQPHQWV IDFLOLWDWH H඼FLHQW FRRUGLQDWLRQ RI ORJLVWLFV 5HVRXUFHV

can be diverted towards the larger projects and higher responsibilities, while also
enhancing consultant availability. There is no need to figure out logistics and
coordination of the same.

For example, an associate could be assigned to complete lower complexity project

tasks from home, allowing for subject matter experts or senior managers or directors
to be brought in only for higher complexity activities. This approach has the
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engagements simultaneously, instead of limiting their bandwidth to meeting a single
client at one time.

Improved Service Quality

It is common for customers to provide incomplete requirements or to rush the
completion of project tasks because the ‘onsite consultant’ is leaving at the end of the
week. This can lead to recommendations that are not entirely in sync with the client’s
business model. When this occurs, the final solution may not yield the expected
results, and more often than not, additional work is needed to correct deviations.

8QGHU UHPRWH FRQVXOWDQF\ VLQFH PDWWHUV PRYH DW WKH OLEHUW\ RI WKH FOLHQW WKH\ FDQ
take their time in gathering the relevant data before providing it to the consultant.
Additional requirements can also be provided online, at any point of time during
the duration of the project. This enables the consultant to design and implement
a solution that resonates with what the client is looking for and satisfies his
requirements.

The result is an enhanced service model that ensures project quality by allowing the
project to be aligned with the data and information provided, on a timely basis.

Enhanced work hours and dedication on the part of the staff and increased
collaboration with the client, can help enhance the overall outcome.

Extended Work Hours = Catering to More TimeZones

Consultants providing services internationally often provide support for multiple
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as a company needs an update or an issue surfaces, the queries can be immediately
resolved rather than having to wait until the opening of business hours. For projects
WKDW UHTXLUH GHGLFDWHG SURMHFW PRQLWRULQJ DQG IROORZXS D FRQVXOWDQW·V DYDLODELOLW\
round the clock could be extremely resourceful.

Western India Regional Council of The Institute of Chartered Accountants of India 71

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Quicker Access To Resources

One of the biggest benefits to remote consultancy is easy and open access to
technical knowledge, databanks and resources and information online.
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PLQGµ ,7 0DQDJHU /DUJH %DQN47

Solutions For Enhanced Remote Consulting Services

A consulting business consists of:48
Practice Development
You build a practice with certain expertise based on your target market. Observe
opportunities; come up with ideas, analyze them and develop a relevant and viable
approach or solution that you can pitch to clients.
Service Development
<RX ÀQG DQG PDNH \RXU SLWFK WR D FOLHQW WKDW FDQ EHQHÀW IURP \RXU DSSURDFK RU
solution or service and is willing to pay for it.
Engagement Delivery
You enter into a contract with a client and implement your approach or solution on
a personalized basis.
$OO WKLV UHTXLUHV D GHGLFDWHG ZRUNIRUFH IRU VPRRWK IXQFWLRQLQJ 7KLV RIWHQ PHDQV ÀUPV
are navigating two sets of challenging priorities: the internal ones with their own team
and the external ones with their clients.
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RරHUHG
Think Digital First
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service model. Firms need to get adept with technology, for every new customer
needs it. Since your clients are using digital platforms, you need to be able to tap
every opportunity to connect with them. As customers drastically shift to digital
platform to obtain services, it is imperative to comprehend this and their changing
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72 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

$SSHDO $VN $FW DQG $GYRFDWH &RQVXOW LQ RXU FDVH  $OO WKHVH VWDJHV KDYH WR EH
considered for digital consultation.

Designing A Remote Service- Smart Work

0HUHO\ UHSODFLQJ D PHHWLQJ ZLWK D YLGHR FRQIHUHQFH FDOO KDUGO\ GRHV WKH MRE :H KDYH
to work Smart and Intelligently.
The form must fully embrace remote services, digital tools, the use of embedded AI
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with the technologic advancements and revisit and tweak strategies from time to time
to be in sync with changing markets. The same should be understood and tested
correctly before implementation to avoid any backlash.

Be Present And Active Everywhere

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to keep in touch with clients and also source new ones. It is also relevant to remain
in sync with the relevant social media platforms used to enhance reach.

Internet Connection
Even though this may sound basic, nothing ruins an online meeting faster than
someone losing connection or — even worse — getting frozen with a silly look on
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you by the hour, you’re literally wasting their time and money. Thus, it is necessary
to invest in internet connectivity for longer periods of time, so that calls or videos
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You can use a LAN connection, Ethernet cable or reliable WIFI. A steady Internet
connection is critical.

Obtaining Client Comfort For Remote Consulting

7KH ÀUVW KXUGOH \RX·OO QHHG WR JHW RYHU LV PDNLQJ \RXU FOLHQWV IHHO FRPIRUWDEOH ZLWK
the value you can deliver remotely. Working remotely may be new to the clients you
interact with. Acknowledge this from the start and provide guidance to make them —
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DV RSSRVHG WR ZDLWLQJ IRU ZHHNV SRVVLEO\ PRQWKV IRU LQSHUVRQ PHHWLQJV WR RFFXU
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QRW EH WKH LGHDO VLWXDWLRQ IRU RWKHUV EXW LW·V VRPHWKLQJ ZKHUH D ÀUP PXVW SURPLVH WR
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strategic plan of the road ahead and provide value services to the client online and
accommodate each of his requirements.

 *ROGHQ5XOHVIRU'LJLWDO(QWUHSUHQHXUVRI7KLV'HFDGHKWWSVZZZHQWUHSUHQHXUFRPDUWLFOH

Western India Regional Council of The Institute of Chartered Accountants of India 73

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Develop A Solution Based on Client Needs

Once the client is comfortable with the digital platform, based on your research,
and your area of expertise, determine how you can help them. The solution must be
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WR QRW EH DEOH DGGUHVV HYHU\ FKDOOHQJH $ ÀUP ZDQWV WR PDNH WKH EHVW RI ZKDW WKH\
KDYH NQRZ DQG FDQ RරHU UDWKHU WKDQ SURYLGLQJ DQ LQFRUUHFW RYHUVWDWHG RSLQLRQ

Leverage The Right Applications And Equipment

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LV PRVW FRQYHQLHQW 'R QRW IHHO FRPSHOOHG WR VWDQGDUGL]H RU PRGHUQL]H 0XOWLSOH
communication channels can also be combined to maximize the reach of interactions
and select the optimal channel. Actively experiment with AI and robotics to further
enhance communication.

Teleconference Technology
One of the most important elements of any business relationship is communication.
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PRUH LQGHSWK GLVFXVVLRQV ZLWK FOLHQWV FRQIHUHQFH FDOOV DUH VFKHGXOHG %XW ZLWK WKH
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rapidly evolving times, we crave connection. And these technologies are the best way
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FDQ EH  PRUH LPSRUWDQW WKDQ DQ\ DFFRPSDQ\LQJ VSRNHQ ZRUG 7KLV H[SODLQV WKH
huge surge of interest in video conferencing technology over the last few weeks.50

Zoom
This tool is designed for hosting webinars, teaching online courses, conducting online
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RරHUV VRPH RI WKH VDPH IHDWXUHV =RRP DOORZV \RX WR UHFRUG PHHWLQJV DV ZHOO DQG
cater to a larger audience. This is extremely helpful since it reduces the amount of
notes your clients and employees have to take and the recording can be referred
to for future projects. This will help firms focus on what the client is saying and
understanding his needs, and the scope of work. Additionally, not everyone would be
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DFFHVVLEOH WR HYHU\RQH DQG VLPSOLÀHV WKH VFKHGXOLQJ SURFHVV
Pro Tip: Download the app as opposed to using the browser version. You’ll be less
likely to experience lags or hiccups. Avoid Zoom fatigue.

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0D\ KWWSVZZZH[WHQVLVFRPEORJGHOLYHULQJSHUVRQDOL]HGLQWHJUDWLRQDQGFRQVXOWLQJ
VHUYLFHVZKLOHZRUNLQJUHPRWHO\

74 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

UberConference
2Q WKDW QRWH \RX FDQ DOVR XVH 8EHU&RQIHUHQFH 8EHU&RQIHUHQFH LV D JUHDW IUHH YRLFH
and screen sharing tool. You can screen share with your client and show them what
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7KH EHVW WKLQJ DERXW WKH IUHH YHUVLRQ LV WKDW \RX FDQ KDYH D SHUPDQHQW 85/
eliminating the need to send a fresh link each time and minimizing confusion.
Calendly For Scaleable Meeting Scheduling
Calendly is an application used for scaleable meeting scheduling and to minimize the
back and forth between emails so that work can actually get done.
Slack For Asynchronous Communication
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team. This is also a pro tip for the consultants and agencies out there that if you are
communicating constantly with your clients, solving those big problems, and helping
them be successful, you will retain more clients.
So, Slack can be used to be involved in conversations with them in real time.
Asynchronous communication is great, but it’s all about managing your own energy
and your client’s expectations for communication.
Yondo52
Yondo allows anyone to sell live online consultations and videos on their own website.
As you can see, there’s some overlap between Zoom and Yondo. While Zoom is used
IRU ORQJWHUP FRQVXOWLQJ HQJDJHPHQWV DQG UHFRUGLQJ PHHWLQJV <RQGR LV XVHG PRUH
for hourly consulting or shorter meetings with lesser people.
HoneyBook53
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software designed to help you automate various operational processes. Since you may
be juggling other responsibilities while working remotely, this is a great way to get
some time back. The ability to quickly send proposals and invoices is a great feature.

 -RKQ'RKHUW\7RROV$QG6WUDWHJLHV,8VH)RU5HPRWH&RQVXOWLQJ6XFFHVV 6HSW KWWSV

WKHQH[WZHEFRPFRQWULEXWRUVÀYHWRROVVWUDWHJLHVXVHUHPRWHFRQVXOWLQJVXFFHVV
 7HUU\ 5LFH +RZ WR 6DYH <RXU &RQVXOWLQJ %XVLQHVV E\ 6KLIWLQJ 2QOLQH 0D\    KWWSVZZZ
entrepreneur.com/article/347707.
53 Ibid.

Western India Regional Council of The Institute of Chartered Accountants of India 75

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Once you have these setup, it takes about 5 minutes to send them out. Your clients
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to a scanner or printer.
Pro tip: 'XULQJ WLPHV RI XQFHUWDLQW\ LW·V EHQHÀFLDO WR ELOO FOLHQWV RQ D UHWDLQHU RU
project basis as opposed to hourly. This will make it much easier for you to forecast
revenue, which will reduce stress.
Audio/Visual Equipment
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in improving concentration and focus and replicating the gravitas RI DQ R඼FHOLNH
environment. Individuals would be able to hear better during meetings and absorb
more while working. Either way, avoid using the mic from your smart device or
laptop! It doesn’t work, even if you try to lean towards it for better voice quality.
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obviously get a webcam as well. Depending on your working environment — and
the clients you work with — and the level of professionalism, one may also want to
get a backdrop so you have a more professional looking background. For instance,
advocates, during the course of hearings, are required to use a white background,
akin to a court environment.
Ensure That Employees Get Involved and Feel Involved
Firms should give all employees and consultants the option of connecting with
company leadership and news during regular team calls and an opportunity to voice
their grievances. They should share updates about how project is coming through
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and answer questions, while keeping conversations open.
Visualize
Visualization is a common and powerful language between individuals. Because we
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tool to get everyone on the same page quickly. The same could be in the form of
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when explaining important clauses of structures or business models, as this saves
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are on the same page. This further aids in eliminating discrepancies of thought and
understanding.
Emotional Intelligence And Soft Skills
When technology hiccups occur, which are quite frequent, your response will be
crucial. But it would be comforting to smile through such problems and yet be

76 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

FRQÀGHQW $V WKH RQOLQH KRVW D FOLHQW ZRXOG ORRN XS WR KLP WR PDNH VXUH WKLQJV
are perfectly normal. So if problems come up, smiling as you handle them gives the
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in your work and will buy you some time to handle any issues that have cropped up.
To paraphrase, “Don’t freak out”. These days, not freaking out, no matter what the
situation, is good advice, regardless of the context.54
Personalisation of Services55
The new age clients are spoilt for choice and have wavering choices. To target such
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and satisfaction. Their likes/ dislikes and needs must be met. Focus on providing quick
resolution to any issues raised to avoid unwanted online disputes, which can hamper
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D FRPSHWLWLYH DGYDQWDJH DQG OHYHO SOD\LQJ ÀHOG HYHQ IRU VPDOO ÀUPV
Invest in People, Knowledge and Expertise and in Knowledge Sharing.
Conduct One-on-One Meetings with Clients
Priorities change throughout the week. Thus, recurring meetings with clients
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credibility, client relationship and loyalty, relevant experience, unique expertise,
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experts, relevant research/data and solutions, client references to leverage as
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entrepreneur.com/article/347707.
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Western India Regional Council of The Institute of Chartered Accountants of India 77

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

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With all the digital disruption in the market, there have to be changes in how
consulting services are delivered.

XII. E-ASSESSMENTS
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case of litigation. Technology can be used for instant assessment; helping to boost
engagement, identify gaps or discrepancies instantly and report the same.
$V SHU WKH (DVVHVVPHQW 6FKHPH  ‘e. Assessment’ means the assessment
proceedings conducted electronically in ‘e-Proceedings’ facility through assessee’s
registered account in digital portal.
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of core public services that were traditionally delivered face to face, including
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ways to create virtual experiences and even court hearings are being conducted
online. Litigation is an essential service for civil society. In the wake of the current
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only mode with electronic filings, email mentions and, online hearings via video
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this being adopted as the new normal.

78 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Litigation has moved right from the use of stenograph machines to laptops and
computers and now software for online assessment and hearings. Within this context,
it has been possible to continue substantially the full operation of asssessments
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tax base and increase compliance, had already started using contemporary technology
for data mining, research and analytics against black money and tax evasion by
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Scheme under the Income Tax Act. In the longer run, it is believed that the scheme
will advance to a progressive system of assessment, providing greater consistency in
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the course of proceedings, to the extent that is technologically feasible;
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functional specialisation; and
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jurisdiction.
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understanding of the same.
Shorter matters, such as directions, hearings or mentions at the Court and Tribunal
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link appearances or a combination of the two. The approach to more substantial
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assessments are also an important aspect of a CA Firm’s work and with systems
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DVVHVVPHQWDJDPHFKDQJHU

Western India Regional Council of The Institute of Chartered Accountants of India 79

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

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shelf’ remote communications platforms being used to achieve the single aim of
keeping business going safely. Within this context, it is necessary for a remote access
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all types of hearing, the ‘live’ assessment process. Such remote litigation facilitates
the judicial system to function as a service, not a place. It is a real opportunity
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accessible and inclusive; only if adopted and implemented well by both parties to a
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written submissions. CAs will be required to deploy their professional skills in a more
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does not require new skills, but requires strengthening of those already existent and
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Civility, Cooperation, Collaboration, Communication
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collaboration between parties, both before and during the hearing, to achieve a just
outcome.
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Prepare In Advance
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should be the guiding principle. The increased emphasis on written advocacy and
preparation would mean more preparatory work in advance to ensure a successful
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format and compliance, correct page referencing, among others. Taxpayers need to
prepare themselves to handle the information request and show cause notices
CAs must also, on the basis of past experience, determine the level of information;
documents, preparation and strategic planning that will be required. Preparation would
also involve preparing the client, other parties to the matter, approaching a relevant
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the same.
Getting Familiar with the Procedure
The parties along with CAs must get familiar with the procedure and process
RI HDVVHVVPHQWV ILOLQJ RI GRFXPHQWV WKH IRUP DQG PDQQHU RI ZULWWHQ DQG RUDO

80 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

submissions, access verificiation and authentication of information, procedure of

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display of relevant details, the necessity of in person hearings, the mechanism for
faceless inquiry, valuation, collection of information, penalty or recovery of tax and
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ought to be in sync with the various updates being administered in the process of
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It is pivotal to understand what parameters or risk management strategy will be
deployed to examine or review the submitted information and the opportunity that
the taxpayers would get to explain their tax data and positions before any adverse
conclusions are drawn against them.
Only once CAs are themselves familiar with the process, will they be able to guide
clients in the right direction and represent them appropriately.
Generic Skills and Knowledge in E-assessment57
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• a general understanding of the principles of assessment
• an understanding of the importance of security in the conduct of assessment
‡ D JHQHUDO IDPLOLDULW\ ZLWK WKH HDVVHVVPHQW V\VWHPV
• an awareness of legislation and codes of practice
• the general regulations of relevant awarding bodies, and regulatory authority
guidelines and codes of practice.
Division of Responsibilities58
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as follows:
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HDVVHVVPHQW VWUDWHJ\ IRU WKH RUJDQLVDWLRQ 
• coordination/operational management viz. directors and managers
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IRU WKH HDVVHVVPHQW SURFHVV 
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XSORDGVHDVVHVVPHQWBBJXLGHBWRBHරHFWLYHBSUDFWLFHBIXOOBYHUVLRQSGI
 (DVVHVVPHQW $ *XLGH 7R (IIHFWLYH 3UDFWLFH   KWWSVZZZHDVVHVVPHQWFRPZSFRQWHQW
XSORDGVHDVVHVVPHQWBBJXLGHBWRBHරHFWLYHBSUDFWLFHBIXOOBYHUVLRQSGI

Western India Regional Council of The Institute of Chartered Accountants of India 81

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

‡  DVVRFLDWHV UHVSRQVLELOLW\ IRU RSHUDWLRQDO V\VWHPV DQG SURFHVVHV 

‡  WHFKQLFDO VXSSRUW UHVSRQVLELOLW\ IRU WKH WHFKQRORJ\  ZKHWKHU SURYLGHG LQKRXVH
or via a third party
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WKURXJK WKH HDVVHVVPHQW SURFHVV 
In addition, a number of other existing roles will be changed by the use of
HDVVHVVPHQW
Pre-Assessment Consultation
CA Firms must also seek instructions from their clients on the strategy and outcome.
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ensure that at certain occasions, clients are okay with CAs taking decisions on their
behalf or themselves attending a proceeding in person or virtually.
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Since all communication will be done electronically, there is a need for assessees to
ensure that the documentation/details submitted to the authorities are in a clear and
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taxpayer’s complex business transactions and tax positions based on the information
submitted electronically.
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they can be heard, understood and retained.
Importance of Written Submissions
In the words of CS Vaidyanathan, Senior Advocate, Supreme Court of India
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Covid-19 has put forward challenges that can be best countered with wholesome and
wholesale changes – by the adoption of online courts with limited or no oral hearing
but based on brief written submissions.
The art of litigation is now likely to be substituted by structured and precise
pleadings, supported by strategically crafted written submissions. The preparation of
written submissions and detailed list of dates, is at many occassions determinative

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82 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

for a party’s case. On account of such heavy reliance on written material, CAs must
ensure that the submissions are short and crisp, have a structured flow, state all
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FRPSOHWH LQ DOO UHVSHFWV UHIOHFW WKH SRVLWLYHV LQ WKH FDVH DQG VHOIH[SODQDWRU\ LQ
getting the client’s viewpoint across to the authority.
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extremely voluminous or lacking focus.Where authorities are required to skim through
thousands of pages of documents on a daily basis, the CA must ensure that the
client’s written submission captures the attention of the authority and possesses
retentive value.
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and submissions. One strategy to manage this is, to prepare a detailed road map
document that can be used as a checklist during the proceedings. The document
could also function as a reference in written submissions to assist the CA in explaining
WR WKH R඼FHUUHOHYDQW DXWKRULW\ KRZ PDWWHUV KDYH RU ZLOO EH SURYHG
The success of a virtual hearing is also dependent on the relevant ease with which
the representatives provide references to the written submissions, handle documents
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authority and representative are in sync.
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CAs have to become aware and familiar with the operating technology used for
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FRXUVH RI SURFHHGLQJV &$V PD\ HYHQ NHHS WKUHH GHYLFHV RQH IRU VFUHHQ VKDULQJ
one for reference to documents for personal use and one for taking individual notes.
For ease of reference, all relevant documents for a particular case can be condensed
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have a point to make about a document you nearly always need to make sure that
you and the judge/officer and the opponent’s advocates, have that document in
front of them. A condensed book must refer and reproduce documents as they are
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To further use documents to substantiate the case at hand, CAs must focus on
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a stronger case.
Additionally, CAs ought to:
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• Test the link prior to the hearing and report any discrepancy

Western India Regional Council of The Institute of Chartered Accountants of India 83

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

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• Conduct a mock hearing prior to the actual one for the sake of familiarity
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• Only one person should speak at a time. The other parties must keep their
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• Ensure that all their points are made or heard during the course of the hearing.
Technology can also be used to Examine witnesses or other parties online, prepare a
Statement of Oath, record the meeting or note down important points discussed at
the hearing or meeting.
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is on the rise. It is important for every CA to Identiy the main issues, narrow
arguments on the basis of assessment of priority, relevance and materiality. If the
party does not have a strong case with respect to a particular line of argument, the
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lockdown have also tried to move beyond conventional methods, to focus on relevant
issues and complete the hearing within the allocated timeframe. One such instance is
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FRXOG ILOH DQG H[FKDQJH SDJH ZULWWHQ UHSOLHV ZLWK D PLQXWH YLGHR RI RUDO
arguments in response. Thus, adding an element of innovation to virtual proceedings.
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Complex issues of data protection arise when there is an excessive exchange of a vast
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mutually agreed by the parties, may be followed in this regard.

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-XQH 

84 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

XIII. HUMAN RESOURCE MANAGEMENT SYSTEM

“There are only three measurements that tell you nearly everything you need to
know about your organisation’s overall performance: employee engagement, customer
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$ +5 0DQDJHPHQW 6\VWHP LV D FRPSOHWH LQWHJUDWHG VRIWZDUH ZKLFK PDQDJHV DOO
administrative services pertaining to human resources, and also resolves general issues
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FDQ W\SLFDOO\ EH D VSHFLDOL]HG +5 VRIWZDUH RU D FRPSUHKHQVLYH RQH
$ VSHFLDOL]HG +5 VRIWZDUH VSHFLDOL]HV LQ D VLQJOH SURFHVV IRU LQVWDQFH UHFUXLWPHQW
or payroll. It has advanced functionalities like recruitment may look after procedures
DOO WKH ZD\ IURP WKH LQWHUYLHZ RI LQGLYLGXDOV WR FRPSOLDQFH ZLWK WKH ÀUPV KXPDQ
resource policy. It may also allot a particular department to the new employee based
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doing tasks and complete automation.
$ FRPSUHKHQVLYH +5 VRIWZDUH WDNHV WKH HQWLUH KXPDQ UHVRXUFH IXQFWLRQ DV D ZKROH
under its wing right from recruitment, training, transfers, to performance appraisal and
exit interviews. It is wholistic in its approach and includes all the data related to an
employee and has an appropriate redressal system in case of queries. Such a software
may also look after reimbursements in cases of employees incurring expenditure on
work related matters or trips.
In normal parlance, an employee while applying for leave will have to opt for the
following process:

The HR
personnel The same is
Leave is
Ask manager manually settled during
approved by
for a leave records it as a payment of
senior
paid or unpaid salary
leave

Western India Regional Council of The Institute of Chartered Accountants of India 85

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

+RZHYHU DQ +506 IROORZV D YHU\ GLරHUHQW DSSURDFK DV IROORZV

Total number of
working days as
per contract is
recorded

Settlement is
done on the
basis of number Employee has to
of days worked request for the
and number of leave
days of leave
pending

The leave
The same is sent
balances are
for approval to
automatically
the Management
checked

In our opinion, “The 2010s were led by individuals who were able to manage their
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individuals who are able to synchronize technology into all their processes and human
resources.”
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“Employees are the lungs of the organization which maintain the smooth functioning.”
7KH GLරHUHQFH EHWZHHQ D JRRG DQG WKH EHVW &$ ÀUP RU DQ\ SURIHVVLRQDO RUJDQL]DWLRQ
dependent on human resources, is its ability to keep its employees and workforce
motivated and happy and to provide them a sense of belonging so that they
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86 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

we wouOG XVXDOO\ KDYH DQ +5 SHUVRQQHO ORRNLQJ DIWHU HPSOR\HH SURGXFWLYLW\ DQG
their needs, however in the post digitization era, we are looking at technology and
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trainings and performance appraisal, hours and extra hours worked, leaves taken, his
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DQG XSVNLOOLQJ ([DPSOHV RI +506 LQFOXGH
• +XPDQ 5HVRXUFHV ,QIRUPDWLRQ 6\VWHPV +5,6  $Q +5,6 SOD\V WKH FRUH GDWD
PDQDJHPHQW UROH QHHGHG IRU PXOWLSOH +5 IXQFWLRQV VXFK DV UHFUXLWLQJ DQG
tracking applicants, storing employee data, managing payroll and benefits,
PDLQWDLQLQJ UHJXODWRU\ DQG OHJDO UHTXLUHPHQWV HWF $Q +5,6 FDQ EH VWDQGDORQH
VRIWZDUH GHVLJQHG WR LQWHJUDWH ZLWK RWKHU +5 DSSOLFDWLRQV RU LW PD\ EH WKH
FHQWUDO GDWDEDVH LQ DQ DOOLQRQH +5 VRIWZDUH V\VWHP 6\VWHPV VXFK DV ´%ULGJHµ
DQG ´+50 $[LVµ KDYH EHHQ EUHDNLQJ JURXQG DQG EDUULHUV RI PLVFRQFHSWLRQV
• $SSOLFDQW 7UDFNLQJ 6\VWHP $76  An ATS is a recruiting software that helps
streamline the hiring process for an organization right from the job interview
to the allocation of a department. It typically handles tasks such as posting
job openings to multiple job boards, storing applicant data, and screening
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made applications on similar lines, ATS has lost its relevance. Firms prefer third
parties like LinkedIn or Naukri.com to connect with individuals looking for jobs
DQG PHHWLQJ WKH TXDOLÀFDWLRQ UHTXLUHPHQWV
• Onboarding: Onboarding software helps streamline and track the process of
introducing new employees to an organization and other employees. It often
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of buddies, training tracking, employee questionnaires, and other automated
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experience for new employees. This basically looks after all the requisite
paperwork.
• 3HUIRUPDQFH 0DQDJHPHQW 7KLV LV D SODWIRUP IRU +5 SURIHVVLRQDOV PDQDJHUV
and employees to assess employee skills, set performance goals, and track
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the spearheading technology in this market.
• Employee Engagement: +HOSV LPSURYH HPSOR\HH VHQWLPHQW DQG LQFUHDVH
individual and team engagement and foster collaboration between departments
and the organisation. This is done through everyday work priorities, feedback,
coaching, and analytics. These systems basically look after simple stuff like
organising internal trainings and seminars and their major relevance is seen in
large ÀUPV

 +56RIWZDUHKWWSVZZZEDPERRKUFRPKUJORVVDU\KUVRIWZDUH

Western India Regional Council of The Institute of Chartered Accountants of India 87

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

XIV. INCIDENT MANAGEMENT AND ANOMALY CORRECTION

“An incident is just the tip of the iceberg, a sign of a much larger problem below the
surface.” -Don Brown
Digitisation may have changed the way we look at our work however while
technology brings in revolutionary methods of work, it also brings in technical issues.
These issues can be termed as incidents or sometimes, based on the scale, even
disasters.
As we have repeatedly stated previously that the only risk we may face moving
forward is an inherent risk of technology failing. Something, as simple as loss of the
network line or applications repeatedly crashing or a virus attack leading to a major
loss of data. In 2020, we saw some email giants face server issues because they were
unable to manage the quantity of requests coming in. While technology has few
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HUURUµ SKDVH ZLWK WHFKQRORJ\ $Q DQRPDO\ LV EDVLFDOO\ D GHYLDWLRQ IURP WKH DFWXDO
result so expected.
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An employee should ensure that every time he generates a result using a software
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of a backup, that can be recovered in case of a disaster/incident. This allows for
execution even during times when internet connectivity is not accessible. There must
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FDQ EH WDNHQ DQG WKH V\VWHP FDQ EH XSGDWHG DQG EDFNHGXS
Each device provided to an employee must have a remote access system inherent
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others.
A modern CA firm should have a team of experts sepcifically dedicated to the
operating and handling of IT systems, Intranet networks, incident handling and
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time an employee observes an incident or an anomaly, he must report the same to
an IT personnel so that the issue can be further resolved temporarily and for similar
occurrences in the future.
Firms have been moving onto the cloud for data storage so that the data is available
at all times. A typical storage cloud allows for data accessibility at all times.
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FUHDWHG WKHLU RZQ LQEXLOW DSSOLFDWLRQV WKDW ORRN DIWHU VXFK LQFLGHQWV DQG SURYLGH
solutions. These systems are created to streamline the applications and when an

88 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

employee faces an issue pertaining to a particular software he may raise a request for
that particular software and experts provide recommendations and solutions. Incase an
employee needs access to a particular application with restricted licenses, the system
can also be used to generate such a request.
An IT incident management system basically helps in bifurcating between problems
typically into software-related, hardware-related and other problems.
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RU RSHUDWLQJ V\VWHPV ZKLOH KDUGZDUHUHODWHG SUREOHPV SHUWDLQ WR LVVXHV LQ QHWZRUN
infrastructure and connectivity such as the monitor, motherboard, other parts of the
device, among others; and lastly, other problems look after miscellaneous errors
generated while using operating devices.

The process thus may be summarised as follows-

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incident, logging basically refers to the reporting of the incident to the concerned
personnel or IT Service Desk that may categorize the same, as provided above;
Prioritise the areas needing urgent attention; conduct an initial diagnosis into the
VDPH DQG SRVW WKDW DQ LQGHSWK LQYHVWLJDWLRQ LQWR WKH SUREOHP LI QHHG EH DQG ODVWO\
RQ XQGHUVWDQGLQJ WKH FDXVH EHKLQG RFFXUUHQFH RI WKH LQFLGHQW ÀQG D VROXWLRQ DQG
implement the same. The idea is not just to provide a temporary solution but also
prevent future occurrences of similar incidents.
“Everything new comes with its issues, an anomaly should be seen not as an
abnormality but as an opportunity, an incident should not be seen as something
LQH૾FLHQW EXW DV D IXWXUH SUHFHGHQWµ

Western India Regional Council of The Institute of Chartered Accountants of India 89

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

XV. REFLEXIVE MONITORING

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OHDUQLQJ ZLWKLQ PXOWLDFWRU JURXSV RU QHWZRUNV DV ZHOO DV LQVWLWXWLRQDO FKDQJH LQ RUGHU
to deal with complex problems. Appointed reflexive monitors stimulate collective
learning and the design and adaptation of actions targeting a future system change.
7KH NH\ LV WR WULJJHU UHFXUUHQW FROOHFWLYH UHÁHFWLRQ RQ WKH UHVXOWV RI DFWLRQV XQGHUWDNHQ
in light of systemic barriers as well as opportunities. While facing everyday struggles
of an ongoing transformative change process, these system innovation initiatives will
thus be able to change their practices, relations and rules and contribute to the long
term goal of survival and sustainability.
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HYDOXDWLRQ PHWKRG ,W DOLJQV GDLO\ DFWLYLWLHV ZLWK ORQJWHUP DPELWLRQV DQG WKH LPSDFW
of a project. The method enables users to gain an insight into the progress and
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day activities and to respond to them
while considering the larger picture. This is especially helpful when addressing complex
challenges.
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used by an employee to set his personal goals, understand what he aims to achieve
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XQGHUWDNHQ SHUIRUPDQFH DSSUDLVDO 0DQ\ RUJDQL]DWLRQV KDYH VHOI HYDOXDWLRQ RQOLQH
IRUPV ZKLFK DUH ÀOOHG E\ HPSOR\HHV RQ D VL[ PRQWKO\ RU \HDUO\ EDVLV WR HYDOXDWH
their own performance on a timely basis and also benchmark the same with the
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DOVR XVH UHÁH[LYH PRQLWRULQJ WR DVVLJQ JRDOV DQG WDUJHWV EDVHG RQ LQGXVWU\ VWDQGDUGV
benchmark the performance of the organisation with such goals, idenitfy deviations
an cause behind the same and take corrective action.
$ W\SLFDO UHÁH[LYH PRQLWRULQJ SURFHVV LQFOXGHV

Judge
performance
List the goals and Understand areas
based on whether
targets for improvement
goals or targets
achieved

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90 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

XVI. VIRTUAL LEISURE

$ERXW  SHUFHQW HPSOR\HHV LQWHUYLHZHG KDYH RSLQHG WKDW WKH\ DUH QRW VDWLVÀHG
with the work in the lockdown, with 20.33 percent stating that work life balance
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weekdays and weekends.
In many ways, 2020 has been a year unlike any other—and that’s true at work as well.
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UHPRWH DQG MXJJOLQJ FKLOGFDUH DQG YLUWXDO OHDUQLQJ &29,' KDV SXW D VWUDLQ RQ RXU
schedules, our budgets, and frankly, our sanity. But that doesn’t mean virtual leisure
is out of the question. In fact, it’s more essential than ever to stay connected with
FRZRUNHUV RU FHOHEUDWH WKH \HDU RU DW OHDVW WKH IDFW WKDW LW·V HQGLQJ  <RX MXVW PD\
need to adapt to the times this year with virtual holiday party ideas.
This could be in the form of virtual events, including online party games and
icebreakers, virtual festivities, virtual contests, fun online workshops, ‘no work’ days,
among others.
In 2020, we’ve learned that it’s more important than ever to stay connected with
each other and to toast one another’s accomplishments when possible. With more
employees than ever working remotely and feeling disconnected from the office,
companies are enhancing the power of virtual platforms and digital tools to find
unique ways to engage their people, build a bond among team members, create a
sense of normalcy and maintain their company cultures.
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RI QHZ RQHV 0D\EH \RX XVH VXFK RFFDVLRQV DV DQ RSSRUWXQLW\ WR JLYH EDFN WR WKH
community, or perhaps you’ll send supplies to each employee to make celebrating
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online for a virtual holiday party might make the most sense. To prevent it from
IHHOLQJ OLNH DQRWKHU PHHWLQJ FHOHEUDWH ZLWK DFWLYLW\EDVHG SDUW\ LGHDV \RX PLJKW QRW
consider in a normal year when dinner or cocktail parties are standard. As an inclusive
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FRQVLGHU YLUWXDO R඼FH WHDPEXLOGLQJ SDUWLHV PRUH RIWHQ
No matter what you decide to do, it’s important to acknowledge that team members
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to be cognizant of the fact that every employee must be involved in such activities,
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 /RFNGRZQDරHFWHGZRUNOLIHEDODQFH:)+VFKHGXOHGRHVQ·WOHW,QGLDQVVSHQGWLPHZLWKIDPLO\$XJ
2020,
 KWWSVHFRQRPLFWLPHVLQGLDWLPHVFRPPDJD]LQHVSDQDFKHORFNGRZQDරHFWHGZRUNOLIHEDODQFHZIK
VFKHGXOHGRHVQWOHWLQGLDQVVSHQGWLPHZLWKIDPLO\DUWLFOHVKRZFPV"IURP PGU

Western India Regional Council of The Institute of Chartered Accountants of India 91

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

IRUZDUG WR R඼FH KROLGD\ SDUWLHV DV D EUHDN IURP WKH PLQXWLDH RI WKH W\SLFDO ZRUNGD\
That’s a little harder to do when everyone is at home, but it’s still possible to switch
up the scenery a bit. The extra thought and preparation ahead of time will shine
through and make your coworkers feel appreciated and motivated.
The idea is to keep such celebrations fun and cohesive, and technology and various
applications have helped us achieve this, now more than ever. Think about how you
consume digital entertainment and create your virtual experience accordingly. The
content should be visually stimulating, entertaining, and engaging.
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WLPH LW KDV DOVR LPPHQVHO\ LQFUHDVHG RXU VFUHHQ WLPH +HQFH LW LV YHU\ LPSRUWDQW
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urgent deadlines are required to be met. It is imperative to disconnect after work
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any activity or simple reading your favourite book, can all be a major stress buster.
In the world of digitisation, we may use several technologies to allow us to gain
access to virtual workouts. Online television shows also allow for a good source of
entertainment. Video conferencing in times of digitisation allows us to connect with
are friends. While virtual stress is increasing on a day to day basis virtual leisure has
GHÀQLWHO\ EHFRPH D UHTXLUHPHQW

92 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

ELEMENTS OF DIGITISATION
I. SECURITY
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a culture and you need the business to take place and be part of that security culture.
-Britney Hommertzheim
In this era of digitsation, cyber threats have multiplied on account of wide access to
large amounts of data in public domains, free data platforms or common softwares.
In such a scenario, one may have the network infrastructure in place to process and
DQDO\VH GDWD KRZHYHU KRZ PXVW RQH SURWHFW WKH &$ ÀUP IURP F\EHU VHFXULW\ WKUHDWV
is the real question.
  Use Known Software: $SSUR[LPDWHO\  RI WKH VRIWZDUH XVHG E\ ,QGLDQ
companies are unregistered and unregulated exposing them to cyber threats.
While working with confidential data it is very important to make sure that
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VRIWZDUH PDNHV D PDMRU GLරHUHQFH
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malicious content which may disrupt the entire system.
3. The terms and conditions are very important and should be read, not simply
´DFFHSWHGµ
4. Custom installation should be used instead of standard installation.

How Will Cyber-Security Ensure Digital Transformation For The Future?

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FDQ EH ODUJHO\ DWWULEXWHG WR F\EHUVHFXULW\ DQG GDWD VWHZDUGVKLS WR PDNH WKH PRVW
RI WKH GLJLWDO HQYLURQPHQW ,QFRUSRUDWLQJ DQ H඼FLHQW VHFXULW\ SROLF\ VSHDNV YROXPHV
about the work ethic of a company and helps to enhance goodwill and credibility.
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It would not be an exaggeration to say that today’s business environment has
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were built for analytics, legacy companies have to do the hard work of overhauling
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implications in tandem. Some companies have invested heavily in technology but have
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Western India Regional Council of The Institute of Chartered Accountants of India 93

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

are struggling to develop the talent, business processes, and organizational muscle
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guaranteed.
As technology advances, so does the level of cyber risk that organizations must
navigate. According to a Deloitte report, analysts estimate that cyber risk globally
“could slow the pace of technological innovation by as much as USD $3 trillion in lost
economic value in 2020µ 2UJDQL]DWLRQDO YXOQHUDELOLW\ WR F\EHU WKUHDWV FDQ EH UHGXFHG
E\ GHYHORSLQJ D VWURQJ F\EHUVHFXULW\ VWUDWHJ\ WKDW LV VSHFLÀF WR WKH FRPSDQ\ EDVHG
RQ WKH VL]H DQG YROXPH RI WUDQVDFWLRQV WR PDQDJH F\EHU UHVLOLHQFH ZLWK FRQÀGHQFH
,QYHVWPHQWV LQ F\EHUVHFXULW\ DOORZ RUJDQL]DWLRQV WR XQGHUVWDQG WKHLU OHYHO RI F\EHU
resilience based on critical business assets, their threat landscape, and the maturity of
their cyber capabilities. Further, integrated dashboards allow organizations to monitor
their level of cyber resilience and can be customized for an operational, managerial
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DQG SUHVHQWV D IXOO SLFWXUH RI WKH F\EHUSURWHFWHG HQWHUSULVH E\ DGGUHVVLQJ VHFXULW\
standards, policies and practices, increasing cooperation and information sharing, and
enhancing collaboration between partners.

Overcoming Paralysis By Analysis When It Comes To Cyber Risk And Security

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FULSSOH VPDOO DQG PHGLXPVL]HG EXVLQHVVHV ,Q DGGLWLRQ WR WKH REYLRXV QHJDWLYH
ÀQDQFLDl implications, brand equity is equally decimated when consumers view their
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well as adoption of other emerging technology, is creating and expanding new and
sometimes unexpected means of cyber attack.
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IRUPLGDEOH FRPSHWLWLYH DGYDQWDJH RYHU SHHUV DV WKH W\SLFDO 86EDVHG HQWHUSULVH
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increasingly more and more comfortable with technology, and are giving away
more personal data than ever, despite growing risks and consequences. An Experian
study revealed that 70% of consumers globally “are willing to share more personal
data with the organizations they interact with online, particularly when they see a
EHQHÀWµ $QRWKHU VXUYH\ FRQGXFWHG E\ WKH &HQWHU IRU 'DWD ,QQRYDWLRQ FDPH WR D
VLPLODU FRQFOXVLRQ ÀQGLQJ  RI FRQVXPHUV DUH “willing to share their most sensitive
personal data” LH ELRPHWULF PHGLFDO DQGRU ORFDWLRQ GDWD  LQ UHWXUQ IRU XVLQJ DSSV
DQG VHUYLFHV &RQVXPHUV DUH SXWWLQJ WUXVW LQ RUJDQL]DWLRQV WR PDQDJH DQG SURWHFW

94 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

WKHLU SULYDWH GDWD VHFXUHO\ DQG RUJDQL]DWLRQV LQ WXUQ PXVW EHFRPH ZHOOHTXLSSHG
ZLWK D F\EHUVHFXULW\ VWUDWHJ\ WR GR VR DQG HQVXUH WKDW VXFK WUXVW LV QRW EURNHQ
In the professional sector, where customers are the king, their satisfaction, utmost
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to overcome and prepare for cyber threats is to incorporate security into a core
strategic vision. The next step is to develop the right business processes and building
capabilities, including both data infrastructure and talent. It is not enough simply
to layer powerful technology systems on top of existing business operations. All of
these aspects of transformation need to come together to realize the full potential
RI F\EHUVHFXULW\

Embedding Cyber-Security Into Digital Transformation

It is highly important for organizations to make security the starting point, and not
an afterthought. Despite the abundance of data breaches across the globe, security
remains an afterthought for a vast majority of digital transformation activities
undergone by current businesses such as; mobility, cloud services, and customer
experience programs; and taking the same lightly or for granted. No firm really
realized the importance of cyber security till an unforeseen event occurs. Security
is unfortunately seen as slowing down a project, rather than enabling its success.
8QGHUVWDQGDEO\ KRZHYHU ZLWK WLPH SUHVVXUH WR JHW D SURMHFW XS DQG UXQQLQJ WKH
lack of sensible security considerations is a problem for organizations striving for true
cyber resilience and vigilance.
As apparent across today’s digitized climate, with the increasing frequency and
SXEOLFLW\ RI F\EHUDWWDFNV JHWWLQJ JUDQGHU DQG PRUH FRPSOH[ EXVLQHVVHV PXVW UHDOL]H
that their customers are more aware of cyber issues than ever before. Apart from
electronic devices in the form of laptops and personal computers, there are increasing
threats to data even on our smart phones or by way of tapping calls, retrieving old
PHVVDJHV RQ :KDWV$SS RU RWKHU VRFLDO PHGLD 7KXV HPEHGGLQJ D F\EHUVHFXULW\
strategy at this point in time is a critical competitive advantage, for it ensures
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,7 DQG 6HFXULW\ SURIHVVLRQDOV DSSUR[LPDWHO\  RI RUJDQL]DWLRQV DJUHHG WKDW WKHLU
VHFXULW\ WHDP KDG EHHQ LQYROYHG LQ DOO WKHLU GLJLWDO WUDQVIRUPDWLRQ SURMHFWV DQG 
agreed that security considerations were added too late in the project, ultimately
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been made. In the same survey, 85% of respondents agreed that the security team
could have done a better job if they had been included earlier in the project. The key
challenge and overall objective for the security team is to reassure the organization
WKDW WKHLU ,7 LQIUDVWUXFWXUH LV VHFXUH DQG UHVLOLHQW +RZHYHU LW LV LPSRUWDQW IRU
organizations today to understand that no digital transformation project should ever
start without understanding its security implications, as this could modify things for
worse in the longer run.

Western India Regional Council of The Institute of Chartered Accountants of India 95

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

2UJDQL]DWLRQV ZKR FDQ KDUQHVV WKHVH FDSDELOLWLHV HරHFWLYHO\ ZLOO EH DEOH WR FUHDWH
significant value and differentiate themselves, while others will find themselves
increasingly at a disadvantage. Today, more than ever, we are all heavily relying on
the emerging digital economy and data online. And as our organizations, government
DJHQFLHV DQG FULWLFDO LQIUDVWUXFWXUHV PRYH WR WKLV HYHUHYROYLQJ GLJLWDO PRGHO D
major security event could have catastrophic consequences for all of us. It is also
important to remember that cybersecurity events do not care about political, social,
or economic borders. When an infrastructure or economic system is brought down
DQG FRPSURPLVHG HYHU\RQH VXරHUV

Setting Cyber Protection In A Professional Context

While most service owners, partners, and customers understand digital, they still need
support to know where the anomalies are, where the risks lie, and how to recover
quickly from any downtime. This is where support from the IT department or IT
experts comes in.
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VHUYLFHV DQG WKH QHHG WR SUHYHQW WKUHDWV IURP EULQJLQJ GRZQ VHUYLFH OLQHV +RZHYHU
WR GR WKLV HරHFWLYHO\ LW QHHGV WR UHOLQTXLVK LWV WUDGLWLRQDO UROH DQG DFFHSW WKDW RWKHUV
need to be trained in digital security too.
Where new security challenges arise, the IT department can add value through
applying what it has learned from previous experiences. It can become the standard
bearer of security best practice in digital transformation both inside and outside the
organization.

What Does This Mean For Cyber Security Within Your Organization?
As an organization becomes truly digitally enabled and its footprint extends beyond
the traditional IT boundary, the security measures used to protect services must
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DFWLYLW\ ULJKW IURP WKH YHU\ EHJLQQLQJ 0LQGVHWV PXVW FKDQJH DV VHFXULW\ FDQ QR
longer be an afterthought or the role of one individual or department.
While IT security may no longer be the sole preserve of the IT department, it can be
DQ LQÁXHQFHU RI VHFXULW\ FRQWUROV  HVSHFLDOO\ LI LW HPEUDFHV LWV QHZ UROH DV D TXDOLW\
controller and knowledge provider to others. In doing this, it can ensure the digital
security measures implemented are as successful as the digital enterprise it sets out
to protect.

 &\EHU5LVN$QG6HFXULW\,Q7KH(UD2I'LJLWDO7UDQVIRUPDWLRQKWWSVZZZKJVGLJLWDOFRPEORJVF\EHU
VHFXULW\LQWKHHUDRIGLJLWDOWUDQVIRUPDWLRQ
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96 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

%XVLQHVVHV VKRXOG XVH GLරHUHQW cyber security measures to keep their business data,
WKHLU FDVKÁRZ DQG WKHLU FXVWRPHUV VDIH RQOLQH 7KHVH PHDVXUHV VKRXOG DLP WR SUHYHQW
risks from various sources, including:
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‡ XVHU JHQHUDWHG ZHDNQHVVHV HJ HDVLO\ JXHVVHG SDVVZRUG RU PLVSODFHG
information
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• subvert system or software features

Essential Cyber Security Measures

The following processes and tools are fairly easy to introduce, even for the smallest
businesses. Combined, these will give you a basic level security against the most
common IT risks.
Use Strong Passwords
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guess by:
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‡ PDNLQJ LW EHWZHHQ HLJKW DQG  FKDUDFWHUV ORQJ
• avoiding the use of personal data
• changing it regularly
• never using it for multiple accounts
• using two factor authentication
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device automatically getting locked for a limited period of time, on multiple attempts
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LGHQWLÀFDWLRQ RU XVH RI ELRPHWULFV
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/RRN LQWR GLරHUHQW WHFKQRORJ\ VROXWLRQV WR HQIRUFH \RXU SDVVZRUG SROLF\ IRU LQVWDQFH
VFKHGXOHG SDVVZRUG UHVHW )LQG GLරHUHQW SDVVZRUG VWUDWHJLHV WKDW FRXOG ERRVW \RXU
EXVLQHVV VHFXULW\ (QVXUH WKDW SDVVZRUGV DUH QRW FRPPRQ IRU GLරHUHQW ZHEVLWHV RU
pages and are updated on a monthly or quarterly basis, as may be convenient. Ensure
that employees, unless trusted, do not have access to such passwords.

Western India Regional Council of The Institute of Chartered Accountants of India 97

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Control Access
0DNH VXUH WKDW LQGLYLGXDOV FDQ RQO\ DFFHVV GDWD DQG VHUYLFHV IRU ZKLFK WKH\ DUH
authorized. For example, you can:
• control physical access to premises and computers network
• restrict access to unauthorized users
• limit access to data or services through application controls
• restrict what can be copied from the system and saved to storage devices
• limit sending and receiving of certain types of email attachments
$Q DWWHPSWV DW DFFHVVLQJ XQDXWKRUL]HG GDWD PXVW EH GHWHFWHG DQG UHSRUWHG 0RGHUQ
operating systems and network software will help you achieve most of this, but you
will need to manage the registration of users, user authentication systems and keep
track of the same online.
Put Up A Firewall
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major barrier to prevent the spread of cyber threats, such as viruses and malware.
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WR HQVXUH WKH\ KDYH WKH ODWHVW VRIWZDUHÀUPZDUH XSGDWHV LQVWDOOHG RU WKH\ PD\ QRW
EH IXOO\ HරHFWLYH )LUHZDOOV FDQ DOVR EH XVHG WR HQVXUH VHUYHU VHFXULW\ DQG SURWHFWLRQ
from unknown websites or emails from unknown sources.
Use Security Software
<RX VKRXOG XVH VHFXULW\ VRIWZDUH VXFK DV DQWLVS\ZDUH DQWLPDOZDUH DQG DQWLYLUXV
programs, to help detect and remove malicious code if it slips into your network.
Discover how to detect spam, malware and virus attacks or protect/backup data, even
on the occurrence of an unforeseen attack.
Update Programs And Systems Regularly
8SGDWHV FRQWDLQ YLWDO VHFXULW\ XSJUDGHV WKDW KHOS SURWHFW DJDLQVW NQRZQ EXJV
DQG YXOQHUDELOLWLHV 0DNH VXUH WKDW \RX NHHS \RXU VRIWZDUH DQG GHYLFHV XSWR
GDWH WR DYRLG IDOOLQJ SUH\ WR FULPLQDOV DQG UHJXODUO\ UHDG WKH 8SGDWH SROLF\ EHIRUH
implementation.
Monitor For Intrusion
You can use intrusion detectors to monitor system and unusual network activity. If a
detection system suspects a potential security breach, it can generate an alarm, such

98 Western India Regional Council of The Institute of Chartered Accountants of India

 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

as an emaiO DOHUW EDVHG XSRQ WKH W\SH RI DFWLYLW\ LW KDV LGHQWLÀHG 6HH PRUH RQ F\EHU
security breach detection.

Raise Awareness

<RXU HPSOR\HHV KDYH D UHVSRQVLELOLW\ WR KHOS NHHS \RXU EXVLQHVV VHFXUH 0DNH VXUH
that they understand their role and any relevant policies and procedures, and provide
them with regular cyber security awareness and training. The clients making use of
WKH ÀUP·V QHWZRUN LQIUDVWUXFWXUH PXVW DOVR EH PDGH DZDUH DQG HGXFDWHG ZLWK UHVSHFW
to the same.

Network Security protects network traffic by controlling incoming and outgoing

connections to prevent threats from entering or spreading on the network.

Data Loss Prevention SURWHFWV GDWD E\ IRFXVLQJ RQ WKH ORFDWLRQ FODVVLÀFDWLRQ DQG
monitoring of information at rest, in use and in motion.

Cloud Security SURYLGHV SURWHFWLRQ IRU GDWD XVHG LQ FORXGEDVHG VHUYLFHV DQG
applications.

Intrusion Detection Systems or Intrusion Prevention Systems work to identify

potentially hostile cyber activity.

Identity and Access Management use authentication services to limit and track
employee access to protect internal systems from malicious entities.

Encryption is the process of encoding data to render it unintelligible, and is often

used during data transfer to prevent theft in transit.

Antivirus/anti-malware solutions scan computer systems for known threats.

0RGHUQ VROXWLRQV DUH HYHQ DEOH WR GHWHFW SUHYLRXVO\ XQNQRZQ WKUHDWV EDVHG RQ WKHLU
behaviour.

As a whole, we can say that even though cyber threats have been increasing at an
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FDQ EH VLJQLÀFDQWO\ PLQLPLVHG 7R DFKLHYH F\EHU VDIHW\ ZH PXVW UHDOL]H WKH LVVXHV
created and ways to overcome the same and not fall prey to online traps.

With various laws and legislations being enacted around cyber security laws and
HQVXULQJ SURWHFWLRQ DQG SULYDF\ RI GDWD RQOLQH +RQRXUDEOH 6KUHH 1DUHQGUD 0RGL KDV
rightly quoted, “I dream of a Digital India where cyber security becomes our integral
part of our National 6HFXULW\µ

Western India Regional Council of The Institute of Chartered Accountants of India 99

The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

II. COGNITIVE PARTICIPATION

Cognitive Participation is the relational work that people do to build and sustain
a community of practice around a new technology or complex intervention.
  Initiation: When a set of practices are new or modified, a core problem
is whether or not key participants are working to drive them forward. For
instance, the work of setting up a service is often delegated to a small group
of managers and professionals who are charged with the work of setting up
systems, procedures, and protocols and engaging with others to make things
happen.
2. Enrolment: Participants may need to organize or reorganize themselves and
others in order to collectively contribute to the work involved in new practices.
This is complex work that may involve rethinking individual and group
relationships between people and things. For example, getting nurses to ‘buying
in’ to a falls prevention strategy is vital to its success, but the work of buying in
to the strategy is not simply about individual commitment, but is about building
communal engagement.
3. Legitimation: An important component of relational work around participation
is the work of ensuring that other participants believe it is right for them to
be involved, and that they can make a valid contribution to it. New service
interventions often founder because of a lack of investment in ensuring that they
ÀW ZLWK WKH ZD\V WKDW GL૽HUHQW JURXSV RI SURIHVVLRQDOV  DQG &$V  GHÀQH WKHLU
possible contribution to them.
4. Activation: 2QFH LW LV XQGHUZD\ SDUWLFLSDQWV QHHG WR FROOHFWLYHO\ GHÀQH WKH
actions and procedures needed to sustain a practice and to stay involved. It is
essential to keep the new practices in view and connect them with the people who
need to be doing them.
Cognitive Participation can be immensely hampered if the organization is
resistant to change. While adapting to new technology employees should keep
an open mind.
“Cognitive participation creates a dynamic but consistent environment within the
RUJDQL]DWLRQ ZKLFK LPSURYHV WKH RYHUDOO H૾FLHQF\µ

III. E-PRODUCTIVITY
“Productivity is being able to do things that you were never able to do before.”
-Franz Kafka, writer
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elements. In adapting to the new normal it is important that we realize that a great

100 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

organisation, while adapting to digitisation, should not fail to reduce its overall
HරHFWLYHQHVV RU H඼FLHQF\

E-productivity is recording of data related to employee tasks and overall time taken
to complete those tasks in an orderly manner. This ensures that employees do not
show slack while performing tasks.

Make Sure You Are Leveraging The Right Tools In The First Place

Every new piece of productivity tech is going to promise the moon and the stars
when it comes to turning everything around, lighting a fire in you and in your
HPSOR\HHV RU FRZRUNHUV $QG ZKLOH PDQ\ RI GR WKDW KDYH SRZHU WR GHOLYHU WKH
services, the cold hard truth of the matter is not every new piece of productivity
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You have to be sure that your choosing the right tools for the job, and that may be
skipping over the new, hot productivity tech for slightly more established technology
WKDW ´MXVW ZRUNVµ

Automate And Systemize Everything You Can

$FFRUGLQJ WR &KDG 2WDU &(2 RI ([FHO &DSLWDO 0DQDJHPHQW DQG WKHUH LV QR JUHDWHU
piece of leverage in business today than automation, systemization, and scalability
² DQG WKHUH·V QR JUHDWHU ZD\ WR DFKLHYH WKRVH IDFWRUV LQ WKH HQG E\ OHYHUDJLQJ
technology to help you with the heavy lifting.

The more you can automate and systemize your daily workflow or your business
processes, the more your productivity is going to increase. Turning over this kind of
work to machines that are lightning fast and incredibly consistent will always be more
SURGXFWLYH WKDQ KDYLQJ SHRSOH KDQGOH WKHVH NLQGV RI WDVNV LQGLYLGXDOO\ RQ D ZLOO\QLOO\
kind of basis.

Keep Open Lines Of Communication

Traditional meetings are dreaded by just about everyone involved, but online meeting
places and communication tools give everyone the opportunity to share updates and
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standard meetings never could.

For one, these messages are instantly recorded exactly as they are sent. There’s very
little room for misinterpretation, very little room for forgetting things spoken, and the
tools that facilitate this kind of communication make it easy to immediately implement
RU IROORZXS RQ WKH PHVVDJHV WKDW DUH EHLQJ VKDUHG ,W LV DOPRVW DNLQ WR WKH FRQFHSW
of having a record of the minutes of a meeting.

Western India Regional Council of The Institute of Chartered Accountants of India 101
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Schedule Everything
If you are serious about improving your productivity so that you can get more out
of the standards 24 hours a day that everyone else has, you have to fall in love with
scheduling and the power of your calendar and make the best use of all the time
that you have on hand.
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kind of application you can imagine and are instantly accessible on every device you’d
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GRLQJ \RXU OHYHO EHVW WR DFFRXQW IRU HYHU\ PLQXWH RI ZRUN WLPH SRVVLEOH ² DQG \RX·OO
ÀQG \RXU SURGXFWLYLW\ VKRRWV ULJKW WKURXJK WKH URRI
Utilize Time Tracking Tools
This tip details nicely with the scheduling tip shared above and combined together,
they may prove to be the most important of all the productivity tips we’ve included
here in this quick guide.
The reality of life is that the only things that are improved are the things that are
constantly measured and tracked. Everything else has the potential to slip through
RXU ÀQJHUV DQG VOLSSHG WKURXJK WKH FUDFNV DQG WKH RGGV DUH SUHWW\ JRRG \RX DUH
either overestimating or underestimating the amount of time you have available and
the amount of productive time you are putting in on a regular basis.
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WRROV RXW WKHUH ULJKW QRZ  \RX·OO EH DEOH WR EHWWHU DQDO\]H KRZ \RX VSHQG \RXU WLPH
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be able to see where you are spending the most amount of time as well as where
your most productive time needs to be. This will help you prioritise on the basis of
tasks needing more urgent attention and having urgent deadlines.
While you may believe a particular task or client to be important or urgent or the
long hours spent on performing the same, highly productive, chances are that right
now you’re spending a lot of your most productive time on things that are anything
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WR FRPSOHWH WKHP KLMDFNHG ZLWKRXW \RX HYHQ QRWLFLQJ LW 7LPH²WUDFNLQJ WRROV FDQ WKXV
also help eliminate this misconception.

IV. E-DOCUMENTATION & DIGITAL LIBRARY

“The world digital library is an attempt to go beyond Europe and the Americas… into
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In the new digital era, paper work only makes the process extremely cumbersome
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102 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

UHFRUGLQJ RI ZRUN SDSHUV DOO RYHU WKH FRPSXWHU (GRFXPHQWDWLRQ HQVXUHV WKDW WKHUH
LV DEVROXWHO\ QR SDSHUZRUN RU WKH VDPH LV PLQLPL]HG 3UHYLRXVO\ &$ ÀUPV DQG RWKHU
professionals faced the issue of not being able to navigate through thousand pages
of documentation. This used to result in repetition of mundane tasks, which were
already completed in the previous year.

As stated by several analysts, we believe we are entering a stage where online

documentation will be the way forward for compliance with documentation standards.
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VXFK WKDW ÀOHV FDQ EH VHDUFKHG ZLWKRXW ZDVWLQJ KRXUV LQ WKH IROGHU URRP $ GLJLWDO
library is such an electronic database, which stores all the data and helps navigate
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way we store the work that is completed for future reference and record. Cloud
technologies act as an online storage, internal private clouds allow for storing
information, which can be accessed only by only a selected few. Working from
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data received from the client at one place, which can be accessed by all employees
remotely, using internet connection. The cloud services while providing a relevant
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prefer to create customized software for documentation. Customized software work
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DOORZ IRU DUFKLYDO RI ÀOHV RI D SDUWLFXODU FOLHQW DIWHU WKH ZRUN KDV EHHQ FRPSOHWHG IRU
future reference.
As can be seen
from the figure
above, the system
has functionalities
such as searching
for clients, using
certain text
to figure out
documentations,
document archival
and retrieval.
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and digital
libraries not only
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way of storing

Western India Regional Council of The Institute of Chartered Accountants of India 103
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

data, they also allow for an anywhere access mechanism. Therefore, we must
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their systems and data access and storage facilities at par with the large firms,
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system, they are able to correct their mistakes based on their previous documentation
and hence, are able to reduce their overall downtime in completion of the work. This
entire process increases the standard of work from an organizations perspective in
the long run.

V. INCREASED TRANSPARENCY
The online platform while having immense amount of IT risks associated with
it, ensures a transparent flow of events. Online transactions are very difficult to
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etc. which use functionalities like triple ledger systems, the task of an auditor is
reduced to checking only the accuracy and relevance of the transactions and can
rely on the overall authenticity. Digitization brings with it a very important factor
i.e. genuineness. A digital platform makes sure that most of the transactions that
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be received even when approval cannot be conducted physically.
While many look at digitization as a threat, from the perspective of a CA firm,
digitization gives the world details about tasks that are being performed. In the
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provides a basis for which people can believe in the reliability of transactions.

104 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

STANDARDS FOR DIGITISATION

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managing digital records and provide the necessary senior management, authority
for the implementation of the framework. Procedures outline how the guidelines and
Standards will be implemented.
Guidelines for Storage and Storage format:
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Central File Server, identify the storage so that systematic and periodic back up can
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time.
Guidelines for Maintaining Quality Control:
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informed choices need to be made on each of these.
Compression And File Size:
Some form of compression should be applied to digitized records to enable storage
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while being able to reproduce an exact, true and accurate digital copy of the image
created at time of digitization. Wherever possible, lossless compression should be
employed.
Lossy compression is not suitable when original paper records are authorized for early
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provides can mean that a small, perhaps indistinguishable, loss of data may be
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resulting image should not appear noticeably different from the original paper
record.

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Western India Regional Council of The Institute of Chartered Accountants of India 105
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Colour Management:
Colour management must begin with the correct scanner operation and the time of
capture so that the original scan is as accurate a representation as possible. The aim
point adjustments and white neutralization provide the starting point for good colour
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that represent the original document well. When possible, the original document
should be compared to the scanned image under controlled viewing conditions on a
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image may be adjusted so that the colours are a close match. During production, the
required adjustment may be noted and run as a batch process.
Security Guidelines:
The security guidelines of the digitised documents before they are uploaded and
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need to be evolved to protect the documents that are digitised and placed in
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need to add to and modify the collection of digitised records, a system may be
used to manage access to the information and to provide an audit of system access
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control may be provided through the use of a password protected system by a
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systems.
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be ensured.
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collection is done.
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system. This includes specifying who can read or alter a document, preventing
copying or printing, or setting an expiration date.
User Training:
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Digitisation Coordinator of the section. Need for adherence to the following factors
need to be emphasized to the users performing the conversion:
• Scanning guidelines.

106 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

• Storage formats.
• Security
‡ &RQÀGHQWLDOLW\
“India is on the cusp of a paradigm shift in the way digital solutions are being deployed
for large-scale societal impact; getting the non-tech elements right will be critical”.68



Western India Regional Council of The Institute of Chartered Accountants of India 107
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

COMPETING WITH THE GLOBAL LANDSCAPE

I dream of a Digital India where knowledge is strength - and empowers the People.
Narendra Modi
Digitisation has changed the economies of countries. Digitisation has transformed
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States have reached the advanced stage whereas countries like Bangladesh are still in
the constrained stage. India is in the Emerging state and as time progresses; experts
have predicted digitised unicorns in Indian startups, which have the capability to drive
us not only to the advanced stage but also show the world the way forward.
In the future, the international competitiveness of individual economies will depend
crucially on how quickly digital technologies are used in production, manufacturing
and supply chain related processes along with professional services. This digital
transformation in turn depends on whether a country has the necessary resources for
this transformation.
The resources available depend largely on the level of economic development
achieved. As a rule, this is measured by the level of real gross domestic product
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FRXQWULHV ² H[HPSODULO\ DQG URXJKO\ VLPSOLÀHG DV IROORZV

108 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

1. Western Industrial Economies

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countries have the highest per capita income. They are the technology
frontrunners, the introducers of technology that we may not have even heard
of yet, the disruptors and hence, superpowers. If these countries succeed
in promoting the use of digital technologies, they will become even more
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Those industrialized countries that fail to undertake digital transformation are
losing their competitive advantage or not keeping pace with the world. This
applies to economically weak countries that are also heavily indebted, such
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countries because the innovative power and productivity of an ageing society
tends to be lower.

2. Asian Emerging Economies

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WKH SDVW WZR GHFDGHV 7KH\ WKHUHIRUH SRVVHVV WKH ÀQDQFLDO UHVRXUFHV IRU GLJLWDO
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to introduction, implementation and management of nuanced technologies and
developments. All that is required to be done by other countries alike is to
harness the power of such technology and implement it in a disciplined manner
in everyday life. This applies not only to China, but also to every other Asian
economy. Such transformation would ensure that such nations are at par with
the more advanced ones and global powers, and become a force to reckon with
in the years ahead.

3. African Developing Countries

A mixed picture arises with respect to African countries:

• On the one hand, African countries have a young and growing population.
If these countries succeed in building a digital infrastructure and promoting
the education sector, strong economic growth can emerge as a result.

• Some of these countries may even be able to skip a technology step.

Economists call this leapfrogging. For example, a country that does not
yet have a landline for telephony is setting up a mobile network and is
therefore on the same technological level as an industrialized country.

• On the other hand, it becomes problematic for poor, underdeveloped

economies that have no valuable raw materials and no access to the capital

Western India Regional Council of The Institute of Chartered Accountants of India 109
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

markets. They are in the danger of being left behind in economic terms
because they are losing competitiveness and being rendered redundant.
Digital Economy: Changing Competitiveness And The Distribution Of Global Wealth
The international competitiveness of a country is crucial for the prosperity of its
people. If an economy is competitive, domestic companies can sell their products at
home and abroad. This secures jobs and generates income for employees.
With improved competitiveness, the country can produce more goods and services
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redistributed: A successful digital transformation increases people’s prosperity. In
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The digital transformation of one’s own economy, thus becomes a prerequisite for
securing and improving a country’s prosperity.
Digitisation As A Whole Can Make The World A Global Village
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sure to catch up with the world.

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110 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

CONCLUSION
I. SHIFTING ROLES- WILL WE REALLY NEED CAS?
“Some people call this artificial intelligence, but the reality is this technology will
enhance us. So instead of AI, we’ll augment our intelligence.”
-Ginni Rometty, CEO of IBM
Accounting is the language of any organization and the profession has begun to
modernize, such that it has gained a life of its own. 6PDUW GHYLFHV R૽HULQJ 6PDUW
and Information Advantages and accounting software have changed the industry
completely. For instance, With a simple shift from a pen and paper to programs such
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of pages of data that can be analysed at the click of a mouse. The job has became
less tedious and mundane with less scope for error. The core training for accountants,
which formerly included basic compliance related aspects has now evolved to also
include training in information technology. Accounting technology has eliminated the
number cruncher and performing extensive calculations sitting behind a desk, and
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The complexities in traditional accounting that chartered accountants had to deal
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industry.
Today we have Smartphones, Smart Cars, Smart cities- With technology getting
SMARTer, does it mean humans are getting dumber? –Rebecca McNutt
The real debate that arises in this context is, will the introduction of
technological advancements make the role of a CA now redundant?
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embrace technology and on the other end are those that fear the same.
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power of its creators i.e., humans. There always will be a need for that human genius
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ÀQDQFH LV QRW MXVW DERXW QXPEHUV DOJRULWKPV RU VLPSO\ FRPSOLDQFH ZLWK WD[ DQG DXGLW
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EXVLQHVV LV GLරHUHQW DQG WKDW·V ZKHUH WKH KXPDQ LQWHOOHFW FRPHV LQ 7KRXJK $, PD\
provide faster processing of data, at some point every organization or business would
require a professional to know how and when to perform a certain activity.

Western India Regional Council of The Institute of Chartered Accountants of India 111
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

7KLV GLVUXSWLRQ LV JUDGXDOO\ HPSRZHULQJ SHRSOH DQG ÀUPV DOO DFURVV WKH JOREH EXW
it is here for transforming jobs and creating enhanced opportunities rather than
superseding humans. Accountants now have more options and tasks to accomplish in
an organization with greater focus on strategic aspects of the work, leaving repetitive
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in the hands of the machine. They have obtained a chance to unburden themselves,
put on their thinking caps, and shoulder higher responsibilities in an organization. The
share of accounting tasks done by machines is going to be substantially high in the
days ahead. These tasks may be automated, consolidated or procured as a service by
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as an output from AI. Traditional tasks such as audit, tax, accounting, statutory and
regulatory reporting and global consultancy services will be automated.
The role of a CA is evolving continuously to accept higher responsibilities in the
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open to innovation and willing to disrupt. Leveraging professional opportunities in
the digital era will require more focus on analytical and advisory roles by harnessing
technology as a tool. CA professionals need to understand and analyse market trends
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The expectations from CAs to match the economic and technological changes are
on the rise. CAs are expected to go beyond their conventional role and play the role
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their skillsets.70
Within the next few years, there could be large scale adoption of digital tools such
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and IoT.
Digitisation may look like a threat in todays professional environment but if looked
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being unemployed, the demand for Chartered Accountants has only increased since
the dot com bubble and has never looked back ever since. The important thing for
a professional is to stay relevant in order to survive and thrive in today’s dynamic
environment. One has to keep updating himself and stay ready with the new
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and litigation. While digitisation can replace all the mundane tasks, there still lies the
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Chartered Accountant himself. The changing environment of COVID has given a major

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112 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

EUHDNWKURXJK WR WKH WHFKQRORJ\ LQGXVWU\ DQG KDV ERRVWHG &$ ÀUPV WR FRPSOHWHO\ VKLIW
online but at the same time there are critical areas which can only be looked after by
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Intelligence will replace the Chartered Accountant, the Chartered Accountant should
make sure that he uses this to his advantage in the super dynamic professional
environment.
In our opinion CAs can become the hyperloops in the digitisation sector. We as
professionals have a choice to either embrace the new technology, quicken the pace
of adoption and zoom ahead of others with it or decide to stay redundant and wait
for things to get back to the old normal.
The world is progressing very fast and in this extremely dynamic environment
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countries like India have seen this as an opportunity to digitize their processes.
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others that do not possess the requisite resources, choose to outsource the same.
The use of cloud networking has increased and has broken barriers in creating
virtual spaces. Information has became available to an accountant with the click
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have started looking to professional accountants for technology advice. Integrating
client’s technologies properly with accountant’s systems makes the practice even more
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correctly. Employees should be given the right training and appraisal and virtual
experiences before they are ready to take up this technology on a larger scale. The
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1. Embrace The Strategic Importance Of Data
Innovation is now being driven by data. Firms must view their data collection
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be on using tools to build, curate, mine, update and connect such data.

Western India Regional Council of The Institute of Chartered Accountants of India 113
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

2. Recognize The Value Of Human Capital

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technologies makes it easy to forget the genius of the human brain. Though
technology and data are important, and algorithms can do great things, human
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key component for success, especially in advisory where data goes beyond just
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data, putting it in context and bridging the gaps where judgment is needed.
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conclusions to steer our path, without careful vetting and understanding of the
underlying data by our teams.
3. Focus On Core Competencies
Firms today are so focused on implementing technology that they lose sight
of their core competencies or their competitive advantage. The aim should
be strategically focusing on what makes the firm and its core skills, and
incorporating technology while not losing sight of the same.
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now include the application and integration of information technology along
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to have the requisite accounting knowledge and its application, interpretation
of regulations and tax laws; they must mandatorily possess strong skills
in information technology, to be able to merge professional services with
information systems.
4. Collaboration Between Humans And Machines
If we try to recollect things that we have learned in our life or even a year ago,
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forget. They have the ability to store every input and analysis established. That’s
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data, but cannot create new knowledge or innovate. Cognitive advancement is
limited by certainty of context. Professionals feed the necessary data structure to
the devices, which is then recognized and processed. Thus, humans will continue
to be essential to bring in new ideas and further enhance nuanced innovations.

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114 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

5. Professionals Of Tomorrow
To adapt and stay ahead of the race, professionals must not only implement
digitization but also prioritize fostering a team of skilled individuals and shifting
the work culture and mindset to maximize the potential of technology. An
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Together all of the above must provide successful forward business planning,
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models. Such individuals will be in greater demand by the profession.
As the world keeps coming up with innovative systems like blockchain, internet
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realize the need to adapt to the fast moving idea of change, ‘get a hold’
on technology as a whole and make sure we create an overall environment
conducive to the growth of technology. In our opinion, we want to see a day
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“The rise in digitalization has resulted in machines quickly taking over the tasks
traditionally performed by humans, making room for humans to focus on higher-
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professionals will increasingly require knowledge beyond their main domain of
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While digital solutions provide useful outputs, human intervention remains
essential, such as in the areas of problem-solving, exercising commercial acumen,
identifying strategic insights and conveying them across the organization.“72
Accountants should look at the rise of technology not in terms of potential
job loss, but task loss. The professional insight and personalization of services
offered by a CA along with his genius, cannot be replaced. Digitization is
intended to augment our growth, not act as a roadblock. Advancements that
help us modernize ought to be celebrated and not feared.
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other professionals, the same ought to be embraced as a powerful driver to
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will revolutionize the firm on a global scale, putting it at the forefront of
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Western India Regional Council of The Institute of Chartered Accountants of India 115
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

The accounting profession is now speaking a new language of service. It is the

language of future generations of professionals. The evolution of technology has
been tremendous with strong growth potential for the future. The advancements
have taken the industry to many new levels of opportunities and opened
up areas of specialization as discussed in this publication. In comparing and
contrasting the changes that have occurred with the use of digitization in the
services of a chartered accountant, enterprise productivity has created stability,
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The world is only going to grow digitally from here on today and professional
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broaden our horizons and reach.
“Our future success is directly proportional to our ability to understand, adopt and
integrate new technology into our work.” – Sukant Ratnakar, Author
“If you don’t innovate fast, disrupt your industry, disrupt yourself, you’ll be left
behind.”
- John Chambers, chairman emeritus of Cisco and CEO of JC2 Ventures

116 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

ANNEXURE: AUTOMATED PROCESSES (Illustrations)

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and how the use of such technologies shall be the new normal

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The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Fraud Transactions
Illustrative flowchart depicting analysis of fraud transactions using digitization and
automated tools:

Or ML

118 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

IRAC- Bank Audits

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checking multiple records at one time, among others:

Or use ML

Western India Regional Council of The Institute of Chartered Accountants of India 119
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Investments
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120 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

)ORZFKDUW GHSLFWLQJ VLPSOLÀHG SURFHVV RI FDOFXODWLRQ RI 1$9 XVLQJ GLJLWL]HG WRROV DQG
using macro functions:

Western India Regional Council of The Institute of Chartered Accountants of India 121
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Forensics
Identifying suspicious transactions based on analysis of keywords:

122 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

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Western India Regional Council of The Institute of Chartered Accountants of India 123
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

Taxation
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124 Western India Regional Council of The Institute of Chartered Accountants of India
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

7KH QHZ QRUPDO &$ ÀUP

Western India Regional Council of The Institute of Chartered Accountants of India 125
The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

DMS (Document Management system) IMPLEMENTATION PROCESS FOR

CA FIRMS

•Partners
•Department Heads
Involve •Key Personnel
•IT Team

•Classify documents based on lifecycle

•Categorise documents based on confidentiality
•How DMS usage will be woven into work processes
Plan •How DMS will link to other systems such as task tracker
•Identify all devices where existing documents are currently stored
•Estimate the storage size required at the start and provide for annual growth

•Folder heirarchies
•Access Rights approval process
•Process to convert physical documents to digital form
Define •File naming conventions to ensure consistently named files
•Timelines for each department / group to migrate to DMS

•Select a DMS based on

•Functional requirement fit
•Easy of use
•Security and compliance features
Select •Document search and retrieve capabilities
•Offline usage
•Licensing policies and budgetary constraints

•Conduct a mock or trial run on one department or project

Pilot •Gather feedback and finetune the solution

•Train users on effective use of the DMS features and SOPs on usage conventions
•Enlist key personnel as trainers
Train •Include DMS training as part of induction process
•Adopt train the trainer approach to ensure internal training programs for effective use

•Ensure that users have system requirements to operate the DMS

•Create user logins with Two Factor Authetication (2FA)
Deploy •Ensure that users are able to securely connect to the DMS

•Seed the DMS. Upload the initial set of document from existing storage locations
Seed •Ensure that files are de-duplicated and classified into correct folders when migrating

•Begin regular use of the DMS as part of everyday work process

•Allocate folders , workspace in DMS for new projects
•Provide access to project members
Operate •Deallocate access on project closure etc.
•Add or remove user accounts as needed

126 Western India Regional Council of The Institute of Chartered Accountants of India
 The New Normal for Practicing CA Digital and Paperless Office – The Way Forward

IT Governance and Policy Framework

Cloud Infrastructure

Identity
Threat Management
Management Cloud Backup
(Anti virus)
(Login)

Business Applications

Project
Management, Billing and Cloud Based
Document Tally with
Management Colaboration, Accounting
Task and Solution Data Leak
system Protection
Time Sheet
tracker

Firewall

VPN

Remote Workers
Limited access to
with File Sync
clients for data
Agent, Anti Virus
submission and
Agent, Backup
report downloads
Agent

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