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A CA argues that because Ind AS is principle-based, technology can only help AFTER reports are generated (e.g. using Excel for validation), not before. Which of the following best critiques this view based on the chapter?
AThe CA is wrong — Ind AS is rule-based and entirely codifiable in software
BThe CA is partly correct — but if account-level configuration with rule-based validations is properly designed, technology (and AI/ML on top) can automate large parts of Ind AS validation during preparation, not only after
CThe CA is correct because Indian GAAP, not Ind AS, is amenable to automation
DThe CA is fully correct — Ind AS being principle-based means technology can never help in primary preparation
Answer & Solution
Correct answer: B. The CA is partly correct — but if account-level configuration with rule-based validations is properly designed, technology (and AI/ML on top) can automate large parts of Ind AS validation during preparation, not only after
The chapter notes that Ind AS is principle-based and that technology's role depends on account-level configuration with rule-based validations. If configured properly, technology can validate during preparation; if not, only post-report tools like Excel apply (depending heavily on human intelligence). AI/ML, properly trained, can extend automation further. Ind AS is not rule-based (C), and the GAAP framing in D is wrong.
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