Diabetic Retinopathy (DR) is an outcome of prolonged diabetes which directly or indirectly affect the human vision. DR is asymptomatic in its early stages and the late diagnosis lead to undeviating loss of vision. The computer aided diagnosis with the assistance of medical images helps in timely and accurate treatment. Microaneurysms (MA) mark the onset of DR, thus a vital point in screening of this disease. This review discuses various state of the art methods available till date for automated computer aided analysis of microaneurysms and haemorrhages. The paper also highlights qualitative and quantitative comparison of the existing literature with limitations for analysis of microaneurysms and haemorrhages. It is an attempt to systematize the available algorithms for an easy gathering and guidance to researchers working in this domain for future research.