REPORT ON

“A STUDY ON ACCOUNTING, AUDITING AND TAXATION”

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF THE
DEGREE OF
MASTERS IN BUSINESS ADMINISTRATION
OF
ATLAS SKILLTECH UNIVERSITY

SUBMITTED BY
POOJA WAKHARIYA
ENROLMENT ID: 1022217
(2022-24)

UNDER THE GUIDANCE OF

‘MR DAVID WITTENBERG’

Atlas Skilltech University, Tower 1- Equinox Business Park Kurla

(West), Mumbai, 400070.

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 ACKNOWLEDGEMENT

My sincere efforts have made me to accomplish the task of completing

this project. I have put my best efforts to complete the project.However, it
would not have been possible without the support of few individuals with
whom I worked with.

I would like express my sincere gratitude to my mentor Mr. CA Prashant

Wakhariya and the university to for providing me with the facilities
required to do the project.

I am highly indebted to my sir (CA Prashant Wakhariya) for his valuable

guidance which has promoted my efforts in all the stages of this project
work. My appreciation thanks and to my colleagues. I assist in developing
my project and to the people who have willingly helped me out with their
abilities.

Finally, words are not sufficient to express my gratitude to my cherished

family members for supporting me without the encouragement and
support I would have not reached this stage.

Pooja Wakhariya,
ATLAS Skilltech University,Mumbai

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 DECLARATION

I,Pooja Wakhariya,student of ATLAS Skilltech University hereby

declare that I have completed summer internship project on

“A STUDY ON ACCOUNTING, AUDITING AND TAXATION”

with CA Prashant Wakhariya & Co for a period of 2 months.

The information submitted to you is true and to the best of my knowledge.

Sign (Pooja Wakhariya)

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 CERTIFICATE
This is to certify that Ms Pooja Wakhariya, a student of ATLAS
Skilltech University of MBA Programme bearing Application ID:
1022217 and specializing in Finance, has successfully completed the
project titled

“A STUDY ON ACCOUNTING, AUDITING AND TAXATION”

Under the guidance of Mr CA Prashant Wakhariya in partial fulfillment of

the Master of Business Administration (MBA) program of ATLAS
Skilltech University.

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5
 EXECUTIVE SUMMARY

CA Prashant Wakhariya and Company is to achieve excellence in

professional competence and add value to businesses and economy. This
firm provides professional services like management consultancy, audit
and taxation to its clients.

It was great opportunity to pick up involvement and learn new things.I

learnt correct utilization of PC programming by working on MS Excel,
Tally,MS Word.I assembled this data from the sparing books of the
customers. This helps us in appropriate association of information and
simple reference as to what’s to come.

Vision of the firm is: The Chartered Accountants’ firm is to ought to be

the benchmark of expert brilliance maintaining the standards of
respectability, honesty and responsibility which this firm makes sure they
keep this as a benchmark for them too.

The profession of Chartered Accountant Prashant Wakhariya is to

maintain a benchmark of the professional excellence upholding the
principles of integrity,accountability and transparency.

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TABLE OF CONTENTS

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 INTRODUCTION

The Institute of Chartered Accountants of India is the national

professionalism accounting body in India. It was established on 1st July,
1949 as a statutory body under the Chartered Accountants Act, 1949
enacted by the Parliament to regulate the profession of Chartered
Accountancy in India. The ICAI is the second highest Accounting &
Finance body in the world. It is a regulating body of financial audit and
accountancy profession in India.

It also issues other technical standards to be followed by practicing

Chartered Accountants such as Standards on Internal Audit, Corporate
Affairs Standards etc. ICAI is solely responsible for setting the Standards
on Auditing (SAs) to be followed in the audit of financial statements in
India.

Chartered Accountants, under the Companies Act, 2013, enjoy a statutory

monopoly in audit of financial statements.

The proprietor’s firm helps in formation of the company by complying

with Registrar of companies. It also maintains records, files Annual
returns of GST (Goods & Service tax) and Income Tax returns. It also
does Indirect taxation monthly and Quarterly returns and various other
forms and documents in compliance.

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 OBJECTIVES OF THE STUDY
I chose to work with CA Prashant Wakhariya and Company. During the internship,
I gained experience into industrial exposure. Before the internship, I had only
theoretical knowledge about the work in organization but now I have a practical
exposure to what is important for working in such an environment. This internship
has giving me an understanding of business and also about the elements of strategic
thinking, planning, implementation and as to how these things are applied in a real
world organization.
Following are the objectives that I had in my mind before working as an internee.
1. To improve communication skills
2. To analyze the business situation.
3. To mainttain high standards in professionalism.
4. To promote my personal knowledge and professional preparation in future.
5. To know how to present your recommendations in front your boss.
6. To get knowledge of opportunities and threats while entering into the
organization.
7. To apply a good theoretical knowledge in actual organization.
8. To conduct audit with due care and with the best knowledge for the tasks
assigned.
9. To learn book keeping practices in different organizations.

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 OVERVIEW OF THE
ORGANIZATION

CA Prashant Wakhariya and Company is a kind of firm that provides

professional services like audit, taxation and management consultancy to
its clients.
The firm ensures in-depth study if procedures, existing systems and
controls is done for proper understanding. It suggests for strengthening
and improvement.It ensures compliance with policies,statutes and
procedures. It ensures that the accounts are prepared in accordance with
the Generally Accepted Accounting Policies/IFRS.
The books of accounts are certified being in agreement with the Balance
Sheet and Profit and Loss Account. The firm also issues Audit reports
under various laws. It also files Income Tax returns.

The firm checks the genuineness of the expenses in books of accounts. It

reports inefficiencies at operational level. It also prevents and detects the
leakages of income and suggests corrective measures.

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 STRUCTURE OF THE
DEPARTMENT

1. Accounts Department
2. Audit Department
3. Income Tax Department
4. Goods & Service Tax(GST) Department
5. IT Appeals and Assessment Department

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 FUNCTIONS OF THE
DEPARTMENT

1. Accounts Department
The accounting department refers to the division in a firm that looks
after the preparation of financial statements, maintaining general
ledger, payment of bills, preparing bills of customer, payroll, and
more. The functions of an accounting department are as follows:
 Recording and maintaining all business transactions accurately
and comprehensively in a systematic way, they can be retrieved
and reviewed at any time.
 To safeguard its resources which are valuable, they need to
maintain adequate internal controls within the organization
 To perform an assessment and provide a basis for it and create
accountability across the organization.
 To maintain a track of costs incurred and advise the
modification of existing operations to reduce operating costs
 By appropriately presenting the financial data in the decision-
making process to support senior management

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  Based on expected availability of resources and anticipation of
business needs,one has to plan accordingly.

2. Audit Department
An audit department is a unit within a company or organization that
is responsible for evaluating risk management, control functions,
operational procedures and complying with the governance
processes. Auditing department functions as follows:
 Determining with compliance with the policies and procedure.
 Assessing the quality of internal controls
 To evaluate risk management
 Assess compliance with accounting standards, whether issued by
the Financial Accounting Standards Board or Government
Accounting Standards Board or other
 Reviewing the actions to handle violations and review the
strength of the code of ethics
 Providing an additional oversight in internal accounting
practices that external auditors may not focus on
 To investigate employee complaints and alleged fraudulent
activities and verify physical assets and inventory

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3. Income Tax department
They have knowledge on tax laws that relate to both individuals and
corporations. So, they assist you in filing of Tax returns in line with
appropriate tax laws. The Central Board of Direct taxes is the apex
body which heads the Income Tax Department. The Income Tax
Department functions under the Department of Revenue which is
under the Ministry of Finance.
The form used to file details of income taxes payable and paid with
the Government are known as Income Tax returns. Income tax
returns are provided for different assessee by IT department. It also a
complete online procedure where
A number of services they render include:
 Preparing of Income Tax returns
 Aiding tax payers on tax related matters
 Representing the taxpayers within the process of paying the tax.

4. Goods and Service Tax department

The employees in this firm play an important part in educating and
advising clients.In order to comply with GST,businesses should also
have knowledge on how to operate.The firms assists their clients with
the GST registration,return filing and GST accounting to overcome
the gap.
This is a boon to newly qualified accountants with less experience
also to work into this field.This is also one of the ongoing sources of
Income as GST return filing includes monthly,quarterly and annual
return filing which results in increase in revenue for the firm.This
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 also leads to long term growth of client connections and taking into
account only tax compliance has also reduced the workload in
indirect taxation.
The function of GST department includes:
 It prevents tax evasion
 There are e-way bills that come into effect if the turnover of a
particular exceeds a specific limit.
 Paying taxes monthly, quarterly or as and when incurred makes
it easy to avoid burden at the end of the financial year.
 Filing of regular returns will also make that the company is
working efficiently for the Revenue department.

5. IT Appeal and Assessment Department

This department files appeals against the orders of Income tax
authorities.This appeal are filed on behalf of the assessee’s who do not
agree with the assessment order or any other order passed by Income tax
authority. Income Tax Appellate Tribunal is a quasi judicial authority.
The ITAT functions under the supervision of the jurisdictional High Court
and is subordinate to the High Court.It shoukd follow the rules set by the
jurisdictional High Court.

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 SWOT ANALYSIS

Strengths
 Customers like the services provided to them and they give a positive
word of mouth by recommending others leading to customer
satisfaction.
 There are many customers who return annually for filing of Income
Tax returns.

Weakness
 There is no marketing budget followed as they follow more
traditional system.
 They also do not have any marketing strategy and no website.
 They have a LinkedIn profile but they haven’t been active lately.

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Opportunities
 With continuous and updated Government regulations, there are
many opportunities in the market to work.
 This firm is also ready to adapt to the rapid growth in the
environment.
Threats
 People are more inclined to go to a place with an updated technology
due to which customer retention can be tough way out.
 Due to many CA Firms operating at all levels, people are becoming
price sensitive to pay their professional fees to accountants.

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 DESCRIPTION OF THE
PROCESS FOLLOWED IN THE
ORGANIZATION
1. Tally entries
The following process is followed for this task to accomplish:
 Firstly,recording all vouchers carefully, that any vouchers had any
queries related to adjustments.
 Then,making a separate folder for work.
 We then need to create a company in Tally software by that company
name and start doing entries.
 The entries of Receipts & Payments entries are to be posted carefully
since it carries contra entries also.
 After completing the entries posting recheck the data by Balance
sheet, Trial Balance & Day book.
 If any queries related to this work,then it is to be communicated to
our mentor.

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 2. Auditing
The following are the steps are required by us to do an audit:
 Build an audit strategy.
 Checking if all registers to see if they were properly signed,
accounted for and posted to accounts correctly.
 To review all financial statements and if any doubt occurs, making a
note to it and consulting further.
 Complying with the rules of all state and central government
requirements.
 Reviewing purchase registers and sales registers.
 To check the actual physical stock,if any.
 Completing the financial review worksheet.
 We also used to suggest the improvements to be done for a proper
internal control.
 Determining an audit opinion
 We also need to submit all the documents to the companies for
maintaining the records.

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 3. Taxation
There are two types of taxation; direct and indirect. Direct taxation
comprises of Income tax paid by the assessee to the Government directly
whereas GST is already paid on the goods and services provided to us and
on which tax is inclusive.
We start preparing ITR statement on software that we have installed in our
firm which automatically calculated and makes work easy for us.
Then, we need to login to the income tax site and upload the utility
generated XML file by selecting offline utility and selecting respective
forms as per the assessee, if the user is not registered, we first register the
assessee on the Income Tax site by sending the OTP on their registered
mobile number and user ID.

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This is the Income site where one registers and gets their data through the
Annual Information System, Taxpayer Information System and 26AS to
review the credit of the amounts deducted.

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DESCRIPTION IN DETAIL FOR
THE WORK ASSIGNED TO ME
UNDER THE SUPERVISION OF
MY MENTOR

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 Topic-Taxation
 Meaning of Tax
A tax is a mandatory charge imposed upon a taxpayer on the income
earned by him during the previous year (assessment year).A failure to pay,
along with tax evasion or resistance to tax, is an offence in law.

 Purposes & effects

The aim of levying the taxes on the taxpayers is to raise revenue to
the Government. Government then carries out many functions across
the States and their functional equivalents that use the money
provided by taxing the Assesses. Government’s ability to raise taxes
is called its fiscal capacity. Revenue so raised can be utilized for
meeting the expenses of the Government like defence,education,
health care, infrastructure facilities.

Direct Tax

If the tax is levied directly on the income or wealth of a person and

who pays tax to the Government and cannot recover it from
somebody else which means the burden of tax cannot be
shifted,eg:Income Tax.
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 Let us go step by step to understand the procedure for computation of
Total Income of an Individual for the purpose of levy of Income tax:

Step1: Determining the residential status

Step 2: Classification of Income under different heads.
Step 3: Computation Income under each head ie
Salary,houseproperty,Capital Gains,Other sources and Income from
business or profession.
Step 4: Clubbing of Income of spouse, minor child,etc
Step 5: Set off and carry forward of losses
Step 6: Computation of Gross Total Income
Step 7: Deductions from the Gross Total Income
Step 8:Application of tax rates
Step 9:Surcharge/rebate under section 87A
Step 10:Health and education Cess
Step 11:Advance Tax and TDS
Step 12:Tax payable/Tax Refundable

We calculate Income Tax on;

 Individuals
 HUFs
 Company/Firm
 Association of Persons
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 Body of Individuals
 Local Authority
 Artifical Juridical person

 Income tax slab rates for Individual tax payers and HUFs (under
old tax regime)ie inclusive of deduction and exemptions

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 Individual Tax payers opting under section 115BAC (which does
not allow to include exemptions/deductions,and calculates tax at

low rate of

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 Due dates for filing of Income tax return w.r.t FY 2022-
23(AY2023-24)

*dates will be the same for FY 2023-24(AY 2024-25)

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Goods & Service Tax (GST)

After every stage the tax incidence is passed on till it finally reaches
the consumer, who really bears it, such tax is indirect tax. An indirect
tax can be shifted by the taxpayer to someone else. Its incidence is
ultimately borne by the consumer who consumes the products or the
service. It is regressive in nature. i.e all the consumers equally bear
the burden ,irrespective of their ability to pay.
In GST, there is no cascading of taxes meaning there is no tax on tax
under GST system. It has a dual GST model which means GST is
levied on Central and States simultaneously.

GST Returns are to be filed by businesses and professionals

registered under GST. Compulsory registration is required for such
persons whose aggregate turnover in the preceding financial year
exceeds Rs 20 lakhs. However, the limit varies according to the states
and union territories.

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GSTR 1
Person registered under regular scheme is required to file the return
for monthly statements of outward supplies of goods/services.
Registered persons opting for QRMP scheme are required to file the
return for quarterly statement of outward supplies of goods/services.

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GSTR 3B

Person registered under regular scheme is required to file the return

for monthly statements.
Person registered opting for QRMP scheme are required to file the
return for monthly statements.

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Tax Deducted at Source
As per this concept, a person is required to deduct TDS who is liable to
make a specified payment to other person shall deduct Tax at source. The
deductee from whose income tax has been deducted at source would be
entitled to the benefits of the credit of the amount so deducted on the basis
of Form 26AS or TDS certificate issued by deductor.
Rates of TDS differ according to different limits of respective amounts.
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For eg:

These are the required forms for filing TDS returns

Forms Description
Form 24Q Quarterly TDS statement for tax
deducted on salary payments
Form 26Q Quarterly TDS statement for other
cases like TDS deducted on
professional fees, interest
payments,etc
Form 27Q Quarterly TDS statement for tax
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 deduction while making payment,
other than salary, to non-
resident(not being a company) and
a foreign company

TDS Payment Due dates for FY 2023-24

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34
 BEHAVIORAL LEARNINGS
FROM THE ORGANIZATION

 Planning and Setting a goal

To accomplish a plan, one needs to be determined to achieve it through
thick and thin which only few people know how to do it.To achieve such
goals,one needs identify the workable action steps and to make a
commitment to complete it.
Giving utmost importance and acting diligently will make everything
seem possible if one gives priorities to the important tasks to be
performed.

 Self Improvement
People always have the room to grow only if their professionalism, ethics
and morale say so which are much needed skills needed to. Self
improvement training and accepting criticism and feedback from your
mentor will help you in one’s own development.I learned that one should
always be content with the work irrespective of the fact that whether it
was easy or difficult to perform and act with positivity.

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  Communication
For an effective communication to follow,there much be active listening
skills in oneself and ability to follow the instructions that are often taken
for granted and being ignored.Good communication comes transparency
in the organization,friendly environment at workplace and readiness to
accept feedbacks to mentor which was followed in this company.
One’s ethics,body language,voice modulation and eye contact says how
professionally one communicates with this behavior which isa skill that
I learnt during my internship as an internee.

 Empathy
Empathy means to act and help each other around you for the one’s
feeling bad at the workplace and understanding and considering their view
points.It not only helps to keep a piece of mind but also helps in one’s own
personal growth.
Being here at this company,we also used to meditate sometimes which felt
good to us.

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BEST PRACTICES OBSERVED
DURING MY INTERNSHIP

 There healthy environment at the workplace. There comes a time

when employees may be overburdened but the work is distributed
among others. All the work/targets are completed within the time
frame.
 Everyone is disciplined and dedicated to their job which provides
motivation to do the jobs and to gain knowledge as much as we can.
Such environment helps us to grow in our job responsibility.
 Everyone is treated equally which makes it easy to co-ordinate and
interact with others. There is no racism on the basis of any caste,
creed, religion or gender.
 The employees are energetic and have a vibe and ready to work; they
don’t sit ideally at work. Even if my mentor is not at the office,
employees and trainees make sure to complete their work on time.

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 LIMITATIONS

 The firm is still into traditional system due to which recruitment

process is not computerized.
 Due to articleship trainees, people cannot be retained in the
organization.
 A problem arises to the clients because on visiting the firms in
regular timings, they are not able to interact with the professional.
This non-availability can lead to loss of clients as they may switch to
other professional.
 Most of the times, the same work for the whole week is to be done
which makes it monotonous and boring.
 There is less number of staff individuals.
 Due to continuous change in Government policies and regulations, it
may sometimes become a difficult task to perform.

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 SUGGESTIONS AND
RECOMMENDATIONS

The organization is good at everything and tries to maintain a good

environment at the workplace but there are chances of improvement
whether it is an organization or a human, improvement and learnings are a
way forward to move and grow.

Some of the key suggestion which I would like to give is:

 To adopt new technologies that their competitors may not use.
 To try and network with the customers to negotiate with them and
have a direct connect with such customers.
 This CA firm focuses on an error free report in comparison to their
competitors.
 We believe our clients will continue to flourish in near future so that
the local economy continues to remain strong.
 The firm needs to make the best use of the goodwill to create a
cliental base and reputation.
 They also should offer audit services at economical fees to retain and
expand a cliental network.
 The employees are provided less salary which needs to be a major
area in order to retain the good employees of the firm.
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 The trainees should be offered extra financial or other incentive for
extra work for overtime.
 There should be arrangement for pastime such as providing gym
equipments, training facility into sports llike cricket,badminton.
 Women should be provided a 3 days leave during their menstrual
cycles every month which should be exclusive of their sick leaves.
 Firm in the marketing perspective does not perform any marketing
function to promote their brand which is now a days an important
way for new clients to enter into the firm.
 Most of the days, some sort of problem in the computers would occur
which would make one’s task difficult to accomplish.Hence,have a
proper system which makes work simpler.

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 CONCLUSIONS

CA Prashant Wakhariya & Co is one of the reputed firms in that area.

I would conclude that there might be many such CA firms in Mumbai but
the precision of the work performed by mentor helped me a lot and will
help me grow further for my own development. I have learnt new things
such as filing of TDS return and preparing of Tax Audit report which if I
would be in a big firm, I wouldn’t have got exposure to all departments.
Practicing meditation has also helped me remain calm amidst a difficult
task and perform it with a positive attitude. By recording different
transactions according to the different types of organizations helped me to
understand what all needs to be checked depending on the types of the
organizations and how books of accounts vary.
This organization has helped gain practical knowledge which is altogether
different than what I studied in books of Accounting,Auditing and
Taxation in a CA firm.This organization indeed helped me to be confident
and how to act with professionalism and interact with the clients and with
those in and around you.

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