Define the terms / Short Notes

Information Systems and IT
Fundamentals

Define the terms / Short Notes:

Hardware Virtualization:

Hardware Virtualization or Platform Virtualization refers to the creation of a virtual machine that acts like a real computer with an operating system. Software executed on these virtual machines is separated from the underlying hardware resources.

Direct Memory Access (DMA):

Direct Memory Access (DMA) is a feature of modern computers that allows certain hardware subsystems within the computer to access system memory independently of the Central Processing Unit (CPU).

Bluetooth:

Bluetooth is a wireless technology standard for exchanging data over short distances up to 50 meters (164 feet) from fixed and mobile devices, creating Personal Area Networks (PANs) with high levels of security. Bluetooth is like a very low-power, short-range radio signal which is secure from the moment they're sent, so unlike any other wireless network we don't have to worry about turning on security. 

Few devices that utilize Bluetooth technology are Keyboards and mice, Printers, mobile phones and headsets, PDAs (Personal Digital Assistants), Desktop and laptop computers, Digital cameras, and Remotes. Through the use of a mobile phone with Bluetooth enabled; we can send pictures, videos, exchange business cards and also transfer files to our PC. Both data and voice transmissions can be sent and received through the use of short range networks.

Wi-Fi:

Wi-Fi is a popular wireless networking technology that uses radio waves to provide wireless high-speed Internet and network connections. Wi-Fi networks have limited range. A typical wireless access point might have a range of 32 meters (120 ft.). Wi-Fi can be less secure than wired connections because an intruder does not need a physical connection. Wi-Fi networks use radio technologies called 802.11 to provide secure, reliable, fast wireless connectivity.

A Wi-Fi network can be used to connect electronic devices to each other, to the Internet, and to wired networks (which use Ethernet technology). Wi-Fi networks work well for small businesses providing connectivity between mobile salespeople, floor staff and behind-the-scenes finance and

accounting departments.

Cache Memory:

Cache Memory (pronounced as cash) is a smaller, faster memory which stores copies of the data from the most frequently used main memory locations so that Processor/Registers can access it more rapidly than main memory. It is the property of locality of reference, which allows improving substantially the effective memory access time in a computer system.

Virtual Memory:

Virtual Memory is an imaginary memory area supported by some operating systems (for example, Windows) in conjunction with the hardware. If a computer lacks the Random Access Memory (RAM) needed to run a program or operation, Windows uses virtual memory to compensate.

Virtual memory combines computer’s RAM with temporary space on the hard disk. When RAM runs low, virtual memory moves data from RAM to a space called a paging file. Moving data to and from the paging file frees up RAM to complete its work. Thus, Virtual memory is an allocation of hard disk space to help RAM.

Instruction Set Architecture (ISA):

It is the abstract model of a computing system that is seen by a machine language programmer, including the instruction set, memory address modes, processor registers, and address and data formats. Instruction Set Architecture (ISA) is related to the programming of a computer – that is, how the computer understands, what each element in its basic language means, what instructions are to be carried out and in what order, etc. The ISA basically deals with what the chip does.

Micro architecture:

It, also known as Computer organization, is a lower level detailed description of the system that is sufficient for completely describing the operation of all parts of the computing system, and how they are inter-connected and inter-operate in order to implement the ISA. The Micro architecture can be seen as how the ISA does and what it does. It is the term used to describe the resources and methods used to achieve architecture specification. The term typically includes the way in which these resources are organized as well as the design techniques used in the processor to reach the target cost and performance goals. The micro architecture essentially forms a specification for the logical implementation.

SA – 500 Audit Evidence (Revised)

SA – 500 Audit Evidence (Revised) W.E.F. April 1, 2009

Definitions

1. Accounting records – The records of initial accounting entries and supporting records, such as check and records of electronic funds transfers; invoices; contracts; etc.
2. Appropriateness(of audit evidence) – The measure of the quality of audit evidence; that is, its relevance and its reliability in providing support for the conclusions on which the auditor’s opinion is based.
3. Audit evidence – Information used by the auditor in arriving at the conclusions on which the auditor’s opinion is base. Audit evidence includes both information contained in the accounting records underlying the financial statements and other information.
4. Management’s expert – An individual organization possessing expertise in a field other than accounting or auditing, whose work in that field is used by the entity to assist the entity in preparing the financial statements.
5. Sufficiency (of audit evidence) – The measure of the quantity of audit evidence. The quantity of the audit evidence needed is affected by the auditor’s assessment of the risks of material misstatement and also by the quality of such audit evidence.

SufficientAppropriate AuditEvidence

The auditor shall design and audit procedures that are appropriate in the circumstances for the purpose of obtaining sufficient appropriate audit evidence.

1. Inspections:

• Inspection consists of examining records, documents or tangible assets. Inspection involves examining records or documents, whether internal or external, in paper form, electronic form, or other media.
• An example of inspection used as a test of controls is inspections of records for evidence of authorization.
• Inspections of tangible assets may provide reliable audit evidence with respect to their existence, by not necessarily about the entity’s rights ad obligations or the valuation of the assets.

2. Observation:

• Observation consists of witnessing a process or procedure being performed by others.
• For example, the auditor may observe the counting of inventories being performed by client’s personnel.

3. Inquiry & Confirmation:

   1. Inquiry consists of seeking appropriate information from knowledgeable persons inside or outside the entity.

   2. Confirmation consists of the response to an inquiry.

   3. For example, the auditor requests confirmation of receivables by direct communications with debtors.

4. Recalculation:

Recalculation consists of checking the mathematical accuracy of documents or records Recalculation may be performed manually or electronically.

5. Analytical Procedures:

Analytical involves the auditor’s independent execution of procedures or controls that were originally performed as part of the entity’s internal control.

6. Re performance:

Re performance involves the auditor’s independent execution of procedures or controls that were originally performed as part of the entity’s internal control.

Information To Be Used As Audit Evidence

1. When Designing and performing audit procedures, the auditor shall consider the relevance and reliability of the information to be used and audit evidence.

• The reliability of audit evidence is increased when it is obtained from independent source outside the entity.
• The reliability of audit evidence that is generated internally is increased when the related controls are effective.
• Audit evidence obtained directly by the auditor is more reliable than audit evidence obtained indirectly
• Audit evidence in documentary form, whether paper. electronic, or other medium, is more reliable than evidence obtained orally
• Audit evidence provided by original documents is more reliable than audit evidence provided by photocopies or facsimiles, or documents that have been filmed, digitized or otherwise transformed into electronic form, the reliability of which may depend on the controls over their preparation and maintenance.

2. When information to be used as audit evidence has been prepared using the work of a management’s expert, the auditor shall,

a) Evaluate the competence, capabilities and objectivity of that expert;

b) Obtain an understanding of the work of that expert; and

c) Evaluate the appropriateness of that experts work as audit evidence for the relevant assertion.

3. When using information produced by the entity, the auditor shall evaluate whether the information is sufficiently reliable for the auditor’s purposes.

Inconsistency In, Or Doubts Over Reliability Of, Audit Evidence

If, a) Audit evidence obtained from one source is inconsistent with that obtained from another; or

b) The auditor has doubts over the reliability of information to be used as audit evidence. The auditor shall determine what modifications or additions to audit procedures are necessary to resolve the matter, and shall consider the effect of the matter, if any, on other aspects of the audit.

SA-200 Basic Principles Governing An Audit

SA-200 Basic Principles Governing An Audit

Integrity,

Objectivity &

Independence

a) Auditor should be straightforward, honest and sincere in his professional work.

b) He should be fair and must not be biased.

c) He should maintain impartiality. He should be free of any interest.

Confidentiality

a) He should maintain confidentiality of information acquired during his work.

b) He should not disclose any such information to a third party without specific permission of client or legal or professional duty to disclose.

Skill &

Competence

a) He should perform work with due professional care.

b) Audit should be performed by persons having adequate training, experience and competence. 

Work Performed

by Others

a) The auditor can delegate work to assistants or use work performed by other auditors and experts.

b) But he will continue to be responsible for his opinion on financial information.

c) The Auditor is entitled to rely on work performed by others, 

• He exercises adequate skills and care and
• There is nothing to doubt

Documentation

a) He should document matters relating to the audit (maintain working papers).

b) Working papers are maintained to demonstrate that the audit was carried out in accordance with the basic principles.

Planning

a) He should plan his work to conduct audit in effective and timely manner.

b) Plans should be based on knowledge of the client’s business.

c) Plans should be further developed and revised during audit if circumstances require so.

Audit Evidence

a) Auditor should obtain sufficient and appropriate audit evidence by performing compliance and substantive procedures.

b) Evidences enable the auditor to draw reasonable conclusion.

c) Compliance procedures mean the ests designed to obtain reasonable assurance that internal controls have been properly designed & operating effectively throughout the year.

d) Substantive Procedures are performed to obtain evidence as to the completeness, accuracy and validity of data produced by the accounting system.

Accounting System

& Internal Control

a) Internal control system ensures that the accounting system is adequate and that all the accounting information has been duly recorded.

b) The auditor should understand the accounting system and related internal controls adopted by the management.

c) He should study and evaluate internal controls system to determine the nature, timing and extent of other audit procedures.

Audit Conclusions

& Reporting

a) The auditor should review and assess the conclusions drawn from the audit evidences obtained through performance of procedures.

b) The audit report should contain clear written expression of opinion on the financial statements.

c) His report is on whether:

• The financial information has been prepared using acceptable accounting policies which have been consistently applied;
• The financial information complies with relevant regulation and statutory requirements; and
• There is adequate disclosure of all material matters.

d) The report should be as per legal requirement. When other than  clean opinion is given, the audit report should state the reasons thereof.

Characteristics of Business Environment

Business environment exhibits many characteristics.

1] Environment is complex

2] Environment is dynamic

3] Environment is multi-faceted

4] Environment has a far reaching impact

Quick Tax Calculators

• For Calculate Tax (India):

http://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx

• For Yearly Income Tax Calculator:

Very Simple and Useful - Income Tax Calculator for Financial Year 2014-15

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• Income & Tax Calculator:

http://law.incometaxindia.gov.in/DIT/Xtras/income_taxcalc.aspx

Why trademark registration is so important for your 

business??? 

Imagine for a moment that you have developed a new design and worked for years to make that design a popular brand and then someone has copied or steals your ideas to make it his own design.

Protecting your design or business name through trademark registration should be the first step and is the best way to get legal shell to your brand. By having a patent of your design, you are getting a license from government to own the rights of that particular design as a manufacture, user or distributor. 

Your company is known to public by its name. If you have chosen a name which is distinctive and creates a good impression of your business then go ahead and file for a trademark registration. Imagine if someone else use your name which you have innovated with your ideas and over the years created good impression to make future profit out of it.

Registration of your trademark is important for so many other reasons. In this article we have listed most important reasons for which trademark registration is so important;

• If you have designed a product and that gets popularity then your ownership on the design will protect you and no one can use it to compete with you.

• Trademark Registration gives you the exclusive rights on your business name, logo and design.

• You can build your goodwill over the years and use it in other profit making businesses.

• Trademark registration gives you legal recognition for your products that you manufacture. It also gives you legal rights in franchise business.

• Trademark registration creates a legal ownership.

• Owner of a registered trademark have a legal right to stop anyone else from using it.

Companies like TATA, Google, Yahoo, Microsoft, Apple and many others have registered their business name. If you think any of your design or name require trademark registration then go ahead and do it now to protect yourself from the sharks in the market.

Please find below the main highlights of the budget released by the Maharashtra Assembly for the year 2014-2015

1. P. Tax threshold limit increased from 5000.00 to 7500.00

2. Threshold limit for VAT audit increased from 60.00 lacs to 1.00 cr.

3. Turnover limit for Compulsory Registration of VAT increased from5.00 lacs to 10.00 lacs

4. The penalty for late filing of MVAT return reduced from Rs.5000.00 to Rs.2000.00 for upto 1 month

5. Tax on cotton reduced from 5.00 % to 2.00%

6. Sugarcane tax exempted for 2013-2014

7. Retailers have the option to pay 1% of turnover or 1.5% of the taxable turnover instead of VAT

8. Reduction in luxury tax for new hotels in B & C category Zones. Threshold limit for Luxury Tax also changed, so effectively Hotel Tariff may come down a bit...!