Description:FORM 2
The Patents Act, 1970
(39 of 1970)
&
The Patents Rules, 2003
(See sec 10 and rule 13)

COMPLETE SPECIFICATION

“A System for Account Assessment for Audit Application”

Claptek Private Limited , an Indian,
having address at Der Deutsche Parkz, 31, Subhash Nagar Rd, near Nahur Station, Nahur West, Mumbai, Maharashtra 400078, India.

The following specification describes the invention:
FIELD OF THE INVENTION:

The present invention relates to an account assessment for audit application. More particularly, the present invention relates to a system for assessing the accounts or transactions by the auditors, which in turns provides the details of failed and passed transactions or accounts against the checklist associated with given BFSI institution.

Background of the invention:

Account Assessment for Audits is a type of business management tool which allows auditing of accounts and other statements to be managed and assessed at one place. It helps you in auditing all the accounts and registrations at one place with one layout which inherently allows auditors to use the familiar template for auditing purpose. It allows the banks to remove dependency on excel sheets which provides an advanced security and proper invigilation of the accounts.

Account assessment for audits involves evaluating the financial records of a company to ensure that they are accurate and reliable. This process is critical for auditors as it helps them to form an opinion on the financial statements of a company, which is then communicated to stakeholders.

The assessment process typically involves reviewing the accounting records and systems of the company, including the general ledger, trial balance, and financial statements. The purpose of this review is to identify any errors or discrepancies in the financial records, and to assess the effectiveness of the company's internal controls over financial reporting.

During the assessment, auditors may perform a range of procedures such as substantive tests, analytical procedures, and tests of controls. These procedures are designed to provide reasonable assurance that the financial records of the company are free from material misstatement.

In addition to reviewing the financial records of the company, auditors may also evaluate the company's accounting policies and procedures, including the methods used to recognize revenue, allocate expenses, and account for assets and liabilities. This evaluation helps auditors to determine whether the company is following generally accepted accounting principles and to identify any potential areas of risk or non-compliance.

Overall, the account assessment process for audits is critical for ensuring the accuracy and reliability of financial statements, and for providing assurance to stakeholders that the financial records of a company are free from material misstatement.

Industry Problem:
Currently the industry is managing account assessment using excel or through manual intervention. This causes an impact on data security and breach with respect to accounts. To mitigate this problem a lot of banking sectors have firewalls in place which accounts to additional implementation and service costs to maintain the same.

Account assessment for audits is an important process that helps organizations ensure the accuracy and integrity of their financial reporting. However, the accounting industry is currently facing several challenges that affect this process, including:

Increasing complexity: Accounting standards and regulations have become more complex over time, which makes it difficult for auditors to assess financial statements accurately. This complexity also increases the risk of errors or omissions in financial reporting.

Lack of standardization: There is no global standard for accounting, which means that different countries and regions may have different accounting rules and standards. This lack of standardization can make it difficult for auditors to assess financial statements across different jurisdictions.

Lack of Consolidation/Centralization: There is no measurable industry standard which provides a consolidated view of all the failed and non-complied assessments. This has been one of the major reason to innovate. The consolidated view of all the different modules has been put together in A3 application. The centralized data environment further enhances the consolidated view.

Technology: The accounting industry is also facing a wave of technological disruption. The increased use of automation and artificial intelligence in accounting processes is changing the role of auditors and accountants, and creating new challenges in terms of data security and privacy.

Audit quality: There is growing concern about the quality of audits, particularly in the wake of high-profile accounting scandals. This has led to calls for greater transparency and accountability in the auditing process, and for auditors to take a more proactive role in identifying and reporting financial irregularities.

Regulatory scrutiny: The accounting industry is subject to increasing regulatory scrutiny, with regulators around the world seeking to improve audit quality and prevent financial fraud. This has led to greater enforcement activity and increased pressure on accounting firms to comply with regulations.
Data Integrity: Excel is prone to errors, and even a small mistake in data entry or formula can lead to incorrect results. Therefore, it is essential to validate and verify all data and formulas before conducting any account assessments.

Some common issues using excel based assessments include:

Security: Excel spreadsheets are not secure, and anyone with access to the file can make changes to the data. To prevent unauthorized access, it is important to password-protect Excel files and restrict access to authorized personnel only. This helps to keep data private and no copies of data is sent out of the bank. The excel based approach lacks the control of data and multiple data leakages are reported every year due to the same.

Audit Trail: Excel does not provide a comprehensive audit trail that tracks all changes made to the data. Therefore, it is essential to maintain a manual audit trail of all changes made to the data to ensure that the results are accurate and reliable. To manage multiple audit types, versions of excel are created which further complicates the development and maintenance. The duplication of data is another such issue with maintaining multiple excels.

Data Analysis: Excel can be limited in terms of data analysis capabilities, and complex analysis may require additional software or tools. It is important to consider the complexity of the data analysis required and ensure that Excel has the necessary features or to consider other software or tools for analysis.

Data Volume: Excel may struggle with handling large data volumes, and data processing can become slow and time-consuming. It is important to ensure that the data volume is within the capabilities of Excel or to consider other tools that are better suited for handling large data volumes.

Overall, these challenges highlight the need for auditors to remain vigilant and adaptable in the face of ongoing industry changes. To ensure the accuracy and integrity of financial reporting, auditors need to stay up-to-date with the latest accounting standards and regulations, adopt new technologies and processes, and maintain a strong focus on quality and compliance.
One of the prior art means disclosed in Application US12/974,261 is “Audit planning”. An audit planning system enables users to plan effective audits by identifying audit units having potentially large impacts and risks on an enterprise and enabling users to select audit units to include in audits based on a variety of different criteria. The audit planning system displays the audit units of the enterprise and a visual indicator of the impact and risk associated with each audit unit. The audit planning system enables users to select the displayed audit units to plan an audit. The audit planning system may display audit units in an impacted financial statement, a tree map, a graph, and/or a table. The audit planning system may sort and/or display audit units with visual indicators specifying associated risks, impacts, materiality values, exposures, coverages, and/or audit costs. The audit planning system can further display visual indications of the changes in audit units' associated attributes over time.
Another one prior art means is disclosed in Application US17/367,949 is “Platform for facilitating an automated it audit”. A platform for facilitating an automated IT audit. The platform may have a frontend allowing users to access the platform, a backend configured to perform processing, and a data collection system equipped to interface with connectors. The backend may include at least one server equipped to send, receive, store, and process data; a testing and analyzing system that may make use of algorithms, machine learning, and artificial intelligence in order to test and analyze the collected data against pre-configured best practice standards and policies, and a reporting system that may be configured to transmit the tested and analyzed data to the frontend. The backend system may be configured to opine on the data and generate specific recommendations about future developments of an auditee's IT infrastructure, allowing an audit to be completed automatically from start to finish by the use of the software, eliminating the need for human intervention.
Yet another one prior art means is disclosed in US11/692,093 and is “Auditing the coding and abstracting of documents”. Techniques for implementing Quality Assurance of the process of coding medical documents are disclosed. An audit of a coding process for a medical document is initiated by selecting and setting audit parameters. Using the selected parameters, a sample batch of coded documents is obtained from a universe of coded documents. The sample batch of coded documents is presented to auditor(s), and the auditor(s) provide corrections, which are recorded, and a score for each correction is calculated. A sample score, based on the corrections, is calculated in a manner that tracks to subjective auditor assessments of the process quality as being acceptable, marginally acceptable, or unacceptable, and which sample score accounts for the individual auditor subjectivity and an error.
So there is a need for a system which captures the data effortlessly and evaluates data based on the responses provided by auditors. The present invention is a system for Accounts Assessments for Audits Application. This data is then used to evaluate and assess the branches and accounts in those branches for any NPA’s or missing artifacts in those accounts.
Objects of the invention:

The main object of the present invention is to capture data effortlessly and to evaluate data based on the responses provided by auditors. This data is then used to evaluate and assess the branches and accounts in those branches for any NPA’s or missing artifacts in those accounts.
Excel is a widely used tool for conducting financial audits and performing account assessments. However, there can be several issues that arise when using Excel for these purposes. The issues are mentioned above.
Another object of the present invention is to mitigate the issues due to excel .

Summary of the invention:
Accordingly, a System for Account Assessment for Audit Application is disclosed. This includes a web application which consist of multiple react based pages to provide account assessment matrix and tables to select the accounts. The present invention helps in fulfilling the account assessments needs for all the banking industries. It uses the matrix of accounts and checkpoints, such that the auditors fills up the results and remarks quite easily and hassle free.
Accounts are fetched from different sources and provided to us by the bank, which in turn are stored into our staging environment. These sources are configured in the application to automate the fetching. These organization specific control checklists are configured into base Audit Monitoring System from where the checkpoints are fetched into A3’s staging environment. Post fetching this data, the matrix is developed and auditors are provided an option to provide results, remarks, and attachments if any. To make this process even more efficient, the A3 application have a feature to provide default value for all the checkpoints and accounts matrix. This reduces the time consumption by more than 35% as per our recent studies. We have even developed a functionality to post these results directly into Audit Management System, from where the observations are created and Auditees provides their comments on the same.
A3 also have a rule-based engine to help the auditors pick up the right accounts and checkpoints. This engine helps the auditors to speed up the assessments.
Detailed explanation with respect to drawings:
With respect to fig 1, there are 4 phases of Account Assessment for Audit. The 4 phases are defined below:
Phase 1: The phase 1 includes fetching of data from different sources. There are 2 types of data that needs to be fetched.
1.Account Data: Account data can be accessed through multiple ways. The most common ways are Excel Uploader and Data push from BDL. This data can be received in A3 application even trough API’s. The application holds this data based on organization, start date of audits or any other logic that the bank might suggest.
2. Checklist Data: The checklist data can be accessed through the AMS system or any other system from where the checkpoints can be received. This is an automated and rule-based checklist fetch. The checkpoints for assessments are used to assess the accounts. Due to rule-based population the end user gets only specific checklist, that should be used for that product. In the current excel based market solutions the checklist rationalization has not been done and most of the responses are marked as ‘NA’ since, the checkpoint is not applicable to the product.
PHASE 2: The phase 2 includes the sampling process. In this phase the end user selects the accounts that needs to be assessed. This can be done either manually or in an automated manner. The automated approach increases the security and integrity of the final data since the system allocates the accounts to the users and none of the accounts are missed from assessment. The manual approach is beneficial for the users to select a smaller number of accounts from a large pool of accounts, the user selects the accounts manually and assess them accordingly. In this case the lead is allowed to allocate accounts to a particular auditor. In excel based approach it used to be done through macros, which causes a firewall issue in most banking institution. In this phase itself A3 provides an access to dashboards and reports which gives a consolidated view of the audit currently being worked upon and accounts data of that audit.

PHASE 3: The phase 3 includes the execution of sampled accounts. In this phase A3 provides a matrix of accounts and checklist. The end user provides the result and remarks on each of the cell provided in the matrix. They also have the capability to attach the evidences for each of the result. This functionality is not available over excel, which in turn requires manual and non-system-based evidence attachments. Once, the user has provided all the results and remarks, they have the option of either soft save or hard submit. The soft save just saves the results in local machine and does not move the data to AMS system for further featuring. The hard submit, submits the data to AMS system. In the AMS system, phase 4 gets started. The user can use multiple filters as well, which includes account based filtering, checklist based filtering such that they can focus on the specific set of checkpoints and accounts itself.
Phase 4: The phase 4 includes the data to be pushed from A3 application to AMS system. The phase 4 triggers only when the user submits the accounts and checklist. This data transfer uses JPA based tech to push the data from one database to other. This is one of the most widely used data transfer method in complete IT industry. This data push can be done from on premise to on premise system, on premise to cloud-based system, cloud-based to on premise system and cloud-based to cloud-based system. Once this data is pushed into AMS system, the compliance flow gets started. There are multiple dashboards as well to give a precise data allocation and an overview of all the products. This process ends the Account assessments for Audits.

Table 1(Fig 3)
Acc No.1 Acc No.2
Process Sub Process Test Details Ref No Result Remarks Result Remarks
Proc 1 Sub Proc 1 Test 1 Ref 1 Pass Rem1 Fail Rem2

Fig 2 and Fig 3 Explanation: Figure 2 shows the A3 application use. There are 4 points which are covered under fig 2 which are as follows:

1. Filters: The filters are used to fetch the account details and test details from multiple sources provided from base AMS application. The test details are maintained in audit management system, where based on the filters selected, the tests are fetched. Similarly account details are fetched based on the filters selected which are maintained in audit management system. Since each account type has a different set of tests details, hence these filters are required by end user to make the usage more practical.
2. Home Table: This table constitutes of all the accounts fetched after the selection of filters. In this table, the end user selects the accounts which needs to be assessed. This table consists of all the details required by the end user to select a specific account like outstanding balance, name, type of account, ROI, scheme code etc. Post this selection the user generates the party sheets by clicking on the generate option.
3. Party Sheet Selections: Post generating the party sheets, the user is landed to this page. The accounts are divided into the sets of 10 per party sheet. For ex. If the user selects 50 accounts in home table, a total of 5 party sheets will be generated and the user can select the party sheet on which they want to work using this area of application. This keeps the page clean and removes load from the application.
4. Party Sheets: The party sheets include a matrix of accounts and tests. This matrix includes the following fields (Ref Fig 3):
• Process
• Sub Process
• Test
• Test Ref
• Result
• Remarks
This showcases the end user the test details for which he/she is providing the response for the account. The accounts are showcased above result and remark column and are maintained column wise, which makes it visually easier for end user to provide results and remarks for each account.

5. Compliance: The compliance module is built in A3 application as well. Post the assessment for each account has been completed, a compliance cycle will get initiated. In this a tabular structure is provided to end user, where the audit and action details are present. The end user or auditee will punch in their remarks for all the failed observations provided by auditor during account assessment. Post compliance cycle, the audit assessments get completed and the closure cycle is initiated in audit management system.
Fig 4 Explanation: Figure 4 showcases the architecture diagram of A3. The architecture includes the following servers:
1. Application Server: This server includes the front end and backend part of the application. This will include the build and jar file of react and java. The ports user is ideally 3000 and 443.
2. DB Server: This server includes the database layer. The application can be integrated with any structured Database.

, Claims:We claim:
1) A process for providing Account Assessment for Audit Application for validation of pay outs and charges, comprising of;
a. Fetching of data from accounts data based on organization, start date of audits and an automated and rule-based checklist data where the checkpoints are received and the checkpoints for assessments are used to assess the accounts;
b. sampling process for selection of the accounts that needs to be assessed. either manually or in an automated manner;
c. executing the sampled accounts by providing a matrix of accounts and checklist followed by providing the result and remarks on each of the cell provided in the matrix;
d. Pushing of data from A3 application to Compliance cycle after submission of the accounts and checklist;
e. fetching the account details by putting filters for and test details maintained in audit management system, based on the filters selected, and the tests from multiple sources provided from base AMS application;
f. Selecting the accounts which needs to be assessed, constitutes the table (all the details required by the end user to select a specific account like Outstanding balance, name, type of account, ROI, scheme code etc) of all the accounts fetched after the selection of filters, the end user selects the accounts which needs to be assessed followed by Posting this selection the user generates the party sheets by clicking on the generate option;
g. Posting and generating the party sheets include a matrix (Process, Sub Process, Test, Test Ref, Result, Remarks of accounts and tests) .
2)A system for providing Account Assessment for Audit Application for validation of pay outs and charges through a process as claimed in claim 1, wherein the said system comprising of;
a. Application Server including the front end and backend part of the application including the build and jar file of react and java;
b. DB Server including the database layer and integrated with any structured Database for storing the data;
c. central processing unit for decision making; and
d. Inbuilt optimized predefined components for data processing.