Speaker 1: Thank you so much ICI and all the committee members for giving me the opportunity to present today on the topic of AI use cases in the tax audit. As we all know, the tax audit is done by a certified chartered accountant and we are supposed to verify all the books of account which are maintained by the taxpayer and we issue a tax audit report in the prescribed format as laid down by ICI. The tax audit report contains a variety of information that we derive after a long manual series of processes and we also provide a lot of disclosures on the compliances on deviations in our report which has been widely accepted and relied upon by its user as have been emphasized by our PM Narendra Modi as well. So a greater responsibility is on our shoulders before signing any report. So all these things require a lot of background work, some of which is performed by CA themselves and many of the work we delegate to our articles and juniors, but their work is also relied upon after some scrutiny, but still there's always a scope of some human error. So to combat that, we use our intelligence in sometimes, but all the times, but this is the era of technological advancement. So the use of machine and software is accepted and is widely required because the simulation of the human intelligence in the machine that is programmed to work and act like us is nothing else than artificial intelligence and this is what we are going to talk about today. It is called artificial because this is man-made. One intellect that is given to us by God is our own wisdom and the one that has been developed by us as per our need is AI. AI has become so vast and it is so, it analyzes vast amount of data, identify the trends and anomalies and potential risks that the human auditors might miss sometimes. So today, should I show my screen for the PPT? Yes. I have prepared a PPT to emphasize on the importance of AI tools that we can use in our tax audit to speed up our work, to increase our productivity, to work more efficiently and for reducing the cost involved in it, as well as the time in all these manual processes. Let us have a look at it quickly. The future of AI in the tax audit, the future is AI. So all the professionals, they make use of the technology in their field. So, so is what expected from us also. So why we should, here, we are going to discuss about the power of AI in the tax audit. Tax audit is the very basic task that we all do every year in volume. And this AI is revolutionizing the tax audit by automating the task, identifying the risk and uncovering the patterns that we human, that we as human miss sometimes. And in this AI, the machine learning is playing a vital role. The machine learning algorithms, they play a crucial role in the modern tax audit, thereby enhancing our efficiency, accuracy, and helping us to assess the risk beforehand so that we can take the corrective measures. Then it also help analyzing vast amount of data. Then it also help us to work even faster and more accurately by enabling us to extract the data and analyzing it in a way more effective and efficient manner. Like some, many of the time, there are frauds which are hidden in the clients working. And we are not solely responsible for it because if we are not exposed to any of the circumstances that led us to further probe into it, then it remain unidentified. But because of the use of this AI, we can easily identify it and work upon it on time. And then anomaly detection and risk identification. AI not only help in the data extraction, fraud identification, but also it help us to identify many of times a large amount of suspicious transaction, thereby hinting us of the areas where we need to provide more focus to identify any of the fraud or tax evasion, whether intentionally or unintentionally by the client themselves. Then there is a risk of tax compliance also. Sometimes while reporting, we need to check the compliances at the various platforms. But with the AI, we can develop a single platform wherein with a single click, we can get the entire detail about the client and identify the deviations and non-compliances wherever they are so that we can fulfill the gap. So all this increases our efficiency in the end. Then it also not just help the client, but it also help us also in our practice because very initially we have to do the audit selection, like out of all the clients, whether we have to select a particular client for audit or not. So we can develop a model accordingly. Yeah, you can have a view at the blue screen. See we can develop this kind of, we can develop this kind of document wherein we can input the details related to the client and then the output will automatically be provided by the use of AI, whether the section 44A before the audit is applicable on the client or not. So after that, we can easily identify that out of the 40 clients, four are falling within the tax ambit and we can also prioritize which clients are at the utmost risk to be done like their due dates are falling or their AGM is there. So we have to do their work first and we can then schedule it later for other clients. Then natural language processing for tax form review, not just in the audit, after the audit, a chartered accountant is expected to file the return as well. So in the file, in filling the form, this AI can also be used because it can quickly scan the tax forms. It can identify the inconsistencies, errors, and let us know wherever the errors are. So then we can identify it and get it corrected. Then AI is such that it is so helpful, so user-friendly that it can understand complex as well as the basic language that we provide as input to it. Then robotic process automation for compliance test. It not only help us in increasing our efficiency, it reduces errors and it is also cost saving because for getting a lot of manual processes done, we need a huge workforce with us. And that involves a huge cost, but with the use of AI, all that can be reduced to a significant level that can be channelized to some better areas where we can enhance our productivity and we can concentrate more on our professional growth. Then AI-assisted tax planning and strategy. We are not just supposed to do the audit work, but as well as we do the planning for the client, we design the strategies for the client. So for getting all these works done, we can make use of the AI very well. All kinds of tools are available as and when required as per our need. We just need to provide the type of input and we can plan the output according to us. This is the future of AI. This is not only it entails with its opportunities, but also some of the challenges. So we need to address it, the crucial areas for getting it used in our favor and for leveraging our practice as well. Should I now move further towards the demonstration? So today I'm going to discuss about the use of CoPilot in the Excel. We all must have heard about ChatGPT as we have seen in today's webinar also, sir has shown a very good demo. So CoPilot is also something AI powered digital assistant that can help with a variety of tasks on various platforms. And it works with the Microsoft 365 app like Word, Excel, PowerPoint, Outlook. So I'm going to use an add-in that Excel provides in the name of CoPilot for finance for using it, using it to facilitate any type of reconciliation. We need a lot of reconciliation from the very basic tax audit work, like bank reconciliation. Then for the data management, we need the reconciliation for the party. We need to confirm the balances with the party. Then for the variety of the variance analysis we need to perform, then we know at the final stage, we need to do the tedious matching as well of the client with their AIS. Then many a time a client do a lot of dividend transactions. So a huge amount of thousands of entries reflect in the AIS, which we need to correlate and reconcile with their books of account corresponding to the definite scripts. So let's get a quick insight of how we can use this tool to get this work done in a blink of eye. So this is an Excel worksheet. Here I have two sheets I've prepared beforehand. The use of CoPilot requires the data to be in the Excel table form. This is the prerequisite. So I have saved it. This is the first sheet that has the detail of sale invoices. The first column is the invoice ID, then date, then customer ID, and then amount. See many a time it happens that in respect of a particular invoice, the payments do come in multiple times, like in part, sometimes in advance. So we need the tracking of the same, like whether in respect of particular invoices, the amount may have been received sometimes in excess, sometimes short. So we need to identify out of all the invoices, which bills are remaining outstanding and which bills have not been paid at all. We need this thing in our practice as well, and the client also needs this thing. So this is the sale invoice table. We have selected the data by control shift and selecting the page down and then pressing control T. It has converted the daytime table and there's a sheet to payments received. It has the payment ID in the first column, invoice ID in second column, then payment date, then amount received. Now to use the utility, I need to click on the home tab. Here there is an option of add-ins. Is it visible to everybody? Yes. On clicking the add-ins, there is an option of searching the add-ins that I'm looking for. I'm today talking about the co-pilot for finance. See this is the one on clicking it. I just need to add it and then a ribbon gets added automatically on the home tab. Here it is. See, you can check it. So here I need to select the reconciled data and it is talking about the two worksheets that I have already provided here. The first one is the sale invoice, sale invoice that has the detail of sales. And the second sheet, sheet two, that is the detail of receipts that has been received corresponding to it. Moving further, I'll click on next. Here I need to define the mapping key. Mapping key is a common column in both the sheets, corresponding to which the amount will be reconciled. So under the first one, a sheet sale invoice, I'm selecting invoice ID as my mapping key. And under the receipts, see, this is the invoice ID here. And in the receipts column also, there's invoice ID in column B. So I'm selecting invoice ID also here. All right. And after that, I have to define the monetary column. So under the sales sheet, the monetary column is this. So I'm defining here, selecting amount. And in this receipts sheet, monetary column is this amount received. So just after the click of next, the magic is here on the screen. Get ready. I'm clicking next. And within a fraction of seconds, the reconciliation report is here in front of us. This is the sale invoice, sheet one, sheet two, and it is showing full detail of unmatched transactions. Invoice ID, the amount in sales invoice, and in sheet two, that is receipts, it's showing the invoice ID and amount, and also showing the differences. So we can very easily identify in a fraction of seconds the differences. This can work in GST as well. And in a variety of areas, we just need to think upon where we can apply it on. So you can just see the utility as well. Like for invoice number 2930, there's nothing in this column. This means that amount in respect of these invoices have not been received at all. Do you wish to check it? Invoice ID? I said 29 and 30. See, it's not 29. 29 is not. Time's up. Thank you so much, everyone. I hope this you find this useful.