internship report of chartered accountnant
DESCRIPTION
This is an Internship Report of KSKP & Co Chartered accountnants.......................................each my report have a price of 250 rupee onlyTRANSCRIPT
CHAPTER NO: 1
INTRODUCTION
1.1 Chartered Accountancy in Pakistan
The Institute of Chartered Accountants of Pakistan is a professional accountancy body in
Pakistan. By 5th May, 2008, it has total 4393 members working in and outside Pakistan. The
institute was established on July 1, 1961 to regulate the profession of accountancy in Pakistan. It
is a statutory autonomous body established under the Chartered Accountants Ordinance 1961.
With the significant growth in the profession, the CA Ordinance and Bye-Laws were revised in
1983.
In view of globalization of the accountancy profession, the Institute is in the process of updating
the Ordinance and Bye-Laws once again.
The course of ICAP involves a blend of theoretical education and practical training which run
concurrently for a period of three years and equips a student with knowledge, ability, skills and
other qualities required of a professional accountant.
The head office of the institute is in Karachi in. The institute also has regional offices at Lahore
and Islamabad. [7, 8]
1.1.1 International Association:
The ICAP is a member of International Federation of Accountants (IFAC), International
Accounting Standards Board (IASB), Confederation of Asian and Pacific Accountants (CAPA)
and South Asian Federation of Accountants (SAFA). [7, 8, ]
1.1.2 Market Overview of Chartered Accountancy of Pakistan:
A large number of students are studying chartered accountancy as it is considered a rewarding
career and there are excellent prospects for employment in audit firms as well as in local
companies, multi-nationals and local and foreign banks.
“ICAP has approximately 4,000 members who are currently working in 35 countries. With
thousands of students joining prestigious fraternity, and placed approximately 300 ambassadors
in the local and international market last year. ICAP, a professional body of Chartered
Accountants in Pakistan, is a member of the International Federation of Accountants (IFAC), is
the global organization for accountancy. It is responsible for conducting CA examinations for all
accountancy schools in the country. A student has to go through five levels to become a
chartered accountant. First, a student possessing an Intermediate or A-Level certificate or a
graduation degree has to go through a pre-entry proficiency test with exemption for those who
have secured over 60 percent marks in their respective qualifications. Second, they go through a
Modular Foundation Course (MFC) consisting of four modules A, B, C and D.
In the fourth step the candidates register as trainee students for an auditing firm. In the fifth step
the candidates undergo on-the-job training for four years and give two modules E and F after
which they join an auditing firm as chartered accountants. Chartered accountants not only earn
among the highest salaries in the market but the job also offers high levels of prestige and
respect. “Salaries of other professionals generally end where the salaries of chartered accountants
start but it demands really hard work from the students.
Teaching in this field means developing a dedicated team of professionals. As auditors, people
are expected to offer a number of accounting and audit solutions, implement standards and
practice business ethics that fuel self-respect.
The Higher Education Commission has accepted the Chartered Accountancy qualification as
equivalent to a Masters degree in Commerce.
1.1.3 Some Other Players of the Market in Islamabad:
A.F. Ferguson & Co.
Chartered Accountants
PIA Building, 49 Blue Area
P .0. Box 3021,
Islamabad.
Off. 2273457-60, 2870045-2,
2272318 Fax. 2277924
Abdul Qadeer & Co.
Chartered Accountants
22-East, 3rd Floor, Saeed Plaza
Blue Area, P.O. Box 1234
Jinnah Avenue
Islamabad.
Off. 2271816, 2872750
Fax. 2277995
Akhter Mahmood Mian
Chartered Accountants
Apt.2, 2nd floor,
24-D Rashid Plaza
Ebrahim & Co.
Chartered Accountants
22-East, Blue Area
P.O. Box 1234, Jinnah Avenue
Jinnah Avenue
Blue Area
Islamabad.
Islamabad.
Off. 2271816, 2872750
Fax. 2277995
Anjum Asim Shahid Rahman
Chartered Accountants
1st Floor, 2-Ali Plaza
1-E Jinnah Avenue, Blue Area
Islamabad.
Off. 2274665, 2271906, 2273883
Fax. 2273874
Ford Rhodes Sidat Hyder & Co.
Chartered Accountants
Eagle Plaza, 75-West
Fazl-e-Haq Road, Blue Area
P.O. Box 2388
Islamabad.
Off. 2870290-2
Asad Fouad
Chartered Accountants
406, Dossul Arcade
Jinnah Avenue
Blue Area
Islamabad.
Off.2875770 Fax.2278915
Hameed Khan & Co.
Chartered Accountants
2nd floor, Jamal Plaza
F-10, Markaz
Islamabad.
Off. 294908, 292190
Aslam Malik & Co.
Chartered Accountants
Suite No. 21 , 2nd Floor
Muhammadi Plaza
Blue Area, Jinnah Avenue
Islamabad.
Off. 2821556,2 821185
Fax. 821774
Hussain Rathore & Co.
Chartered Accountants
32, Block 8, School Road
Super Market , F-6 Markaz
Islamabad.
Off. 2825775, 2273473
Fax. 2277174
Coopers & Lybrand
Chartered Accountants
PIA Building 49-Blue Area
P.O. Box 3021
Islamabad.
Off. 2273457-60, 0300-8551670
Fax. 2277994
Ijaz Tabussum & Co.
Chartered Accountants
4th floor, 52-West Waheed
Plaza Jinnah Avenue,
Blue Area
Islamabad.
Off. 2825045, 2825090, 2876329
Fax. 2825106
Ilyas Saeed & Co.
Chartered Accountants
204 Dossal Arcade, 2nd Floor
Jinnah Avenue, Blue Area
Islamabad.
Off. 2206280
Fax.2872747
Masoom Akhtar & Co.
Chartered Accountants
109-Royal Centre
West Blue Area
Fazal-ul-Haq Road
Islamabad.
Off. 2273126, 2273105, 2876542
Fax. 2273105
[9]
1.2 Introduction of KSKP & Co.
Kabani Saeed kamran Patel & Co. (chartered Accountants) is firm of Chartered Accountants
registered with Institute of Chartered Accountants of Pakistan and is on the panel of auditors of
the Securities and Exchange Commission of Pakistan, the Central Board of Revenue, the Stock
Exchanges.
Recently the company establishes its partnership relation with USA fastest growing CPA firm
M/s Kabani & Co. Inc. Their general practice & style of work attracts entrepreneurs from many walks of life who feel
that they will benefit from a close working relationship with KSKP firm. It is easy to understand
that different economic needs are required to be financially successful for individuals and
businesses in today's ever-increasing economic environment. KSKP & Co. have ability to work
internationally via their network of offices worldwide. Internationally, they have clients in Asia,
Europe, Africa, Australia, North America and South America.
KSKP & Co. will help you to their level best with your independent financial needs and
requirements. With their friendly and well-trained staff that has many years of experience in
dealing with a variety of types of businesses, they will be able to guide you in the best manner.
With their help and professional expertise, your finances will be a worry of the past. [1]
VISION STATEMENT
MISSION STATEMENT
“We believe in adding value to your organization and building mutually beneficial long term
business relationship by delivering high quality service to your
organization”
“OUR MISSION IS TO PROVIDE OUR VALUED CLIENTS THE QUALITY THEY DESERVE.”
1.3 Company profile:
1.3.1 Establishment of Firm:
The firm was originally established 25 years back in 1981 by Mr. Younus Kamran (FCA), Senior
Partner of the firm. The firm then developed with the time in the following way:
Organization Year of Opening Re-constitution
Kamran Sarwar & Co. 1981 1988
Kamran Associates 1988 1989
Kamran & Viqar 1989 1992
Saeed Kamran & Co. 1992 1993
Saeed Kamran Patel & Co. 1993 2007
Kabani Saeed Kamran Patel & Co. 2008 Till Date
The company is on the panel of auditors of the State Bank of Pakistan since 1995 under section
35 of the Banking Companies Ordinance, 1962, and placed under category B, which can conduct
the audits of Private Commercial Banks, Investments Banks NDFC, PICIC, ADBP, IDBP,
HBFC, and other DFIs.
The company is recognized by almost all government departments, and is on the panel of
auditors of the Securities and Exchange Commission of Pakistan, the Central Board of Revenue,
the Stock Exchanges and the Institute of Chartered Accountants of Pakistan.
KSKP & Co. USA office headed by Mr. Hamid Kabani registered with the name & style of
Kabani & Co. Inc registered with American Institute of Certified Public Accountants, California
Society of CPAs , member AICPA Center for Public Company Audit Firms (formerly, SEC
practice Section ), also registered with PCAOB. [1, 2]
1.3.2 KSKP Commitment to Work:
In today's ever changing world, clients need to be confident that their financial affairs are in good
hands. This confidence is gained by KSKP & Co. personal approach to professional matters and
by the results achieved by their advice and recommendations.
1.3.3 About KSKP Partners:
1.3.3.1 Mr. Younus Kamran Professional Career:
Proceeded to England after graduation and qualified as a Chartered Accountant. On arrival in
Pakistan in 1980, joined A. F. Ferguson and Company, Chartered Accountants and in 1981,
joined as partner with Girdezi & Co., Chartered Accountants and After Leaving Girdezi & Co in
1982, established own organizations practicing Chartered Accountancy and management
consultancy under the styles Kamran Sarwar & Co., Kamran Associates, Kamran & Viqar, Saeed
Kamran Patel & Co. and finally this Kabani Saeed Kamran Patel & Co.
1.3.3.2 Mr. Hamid Kabani Professional Career:
Hamid Kabani is a Certified Public Accountant as well as a Chartered Accountant with over 24
years of audit and accounting experience. Over the years, Hamid Kabani has acted as an
engagement Partner, Technical Partner, quality control specialist and managed several public
(including IPOs) and private clients at domestic and international level. Hamid Kabani's clientele
includes public and private companies, ranging from start-up to the companies with revenue over
$600 million dollars. Hamid Kabani was a part of high-tech audit group of Deloitte & Touche,
LLP, a big four accounting firm, in a senior management role. Hamid was a member of National
Manufacturing Industry practice sub committee on International Interface at Deloitte & Touche,
with the idea of interfacing the information disseminated by the US Industry practice and other
International offices around the world. Prior to joining Deloitte & Touche, Hamid worked with
McGladrey & Pullen, a national accounting firm, as Quality Control Specialist for western
region offices. In his capacity as quality control specialist, Hamid Kabani was responsible for
making sure that all the Financial Statement (Public & private) on which an audit report is
issued, adhered to requirements of GAAP, GAAS, and firm's internal quality standards,
developing and mentoring staff, developing business practice and advising clients on various
audit and business issues. Hamid Kabani's background also includes dealing with SEC,
involvement with Initial Public Offerings, Private Placements, review of reports for inclusion in
10-K's, 10-Q's as well as compliance requirements with other SEC rules and procedures. Hamid
Kabani was a member of the Qualification Committee of the Board of Accountancy for the State
of California from 1999-2006. Hamid Kabani was appointed to serve on the AICPA's Group of
One Hundred (G100) for the year 2002-03. AICPA's Group of One Hundred (G100) was a
prestigious cross functional group of members from various segments of the accounting
profession in USA. Hamid Kabani has been nominated to serve as a member of the AICPA
Virtual Grassroots Panel for the 2003-2006.
1.3.3.3 Mr. Muhammad Yousaf Professional Career:
After Graduation in commerce join S.A.Salam Chartered Accountants for training and became
associate member of public finance in 2002 then Qualified as Chartered accountant in 2004.
Have a wide experience of audit and Textile sector. Now working as partner in M/S Kabani
Saeed Kamran Patel & Co. Chartered Accountants, Lahore, from Feb, 2006 for Pakistan
operations. Have the responsibility to run the following departments of the organization. [4, 5]
1.3.4 Departments:
There are following five departments of the firm;
Accounting Division
Audit Division
Taxation Division
Corporate Division
Finance Division. [2 ]
1.3.5 KSKP Services:
1.3.5.1 Taxation Services:
KSPK & Co. provides taxation services to very wide range of corporate and private clients and
their services include the following:
Preparation and filing of tax returns pertaining to income tax and wealth tax Attending hearings
and assisting clients in preparation of information and explanation for submission to the tax
authorities and dealing with matters leading up to finalization of assessment Filing and dealing
with appeals before the appropriate tax authorities Advising clients on tax planning and on
specific tax problems Sales Tax.
General Sales Tax (GST), which is a modified form of Value Added Tax (VAT). In Pakistan,
since recent years, more and more goods and services are being brought within the ambit of the
GST regime and GST occupies a pivotal place in the current regime of taxation. Rampant
changes in the GST law and lack of knowledge on the part of tax administrators and taxpayers
have made it intricate and difficult.
KSKP tax professionals will not only keep you aware of developments that may affect your
business, but also will help you to interpret their significance and integrate a plan into your
business strategy. They are providing a full range of indirect tax services that include sales tax
advisory services, sales tax system evaluation and other ancillary matters.
Applying for and obtaining GST registration. Maintenance and preparing of GST Record/GST
book keeping Preparation and filing of Monthly GST Returns Advices and pursuing in claim for
adjustment of input and output taxes, following up GST exemption(s) and GST audit
Registration, maintenance of record, and audit counseling for Duty & Tax Remission for
Exporter (DTRE) Representation on behalf of the clients before GST assessment authorities and
appellate authorities on contentious GST issues and dispute resolution Correspondence with the
Central Board of Revenue (CBR) for removing fiscal anomalies and obtaining Ruling on obscure
GST related issues Reviews of existing systems and monitoring to highlight possible areas of
exposure to sales tax assessments and associated penalties Developing detailed strategies to
assist and reduce clients' tax costs.
1.3.5.2 Corporate Services:
The broad range of secretarial services offered by KSKP is as follows:
Incorporation of Companies, formation of Liaison/Branch office of Foreign Co Winding up and
Liquidation of Companies, Company Easy Exit Scheme Preparation of Memorandum and
Articles of Association Allotment, Issue, and transfer of Shares and Debentures etc Filing of
annual Returns and Forms with the Registrar of SECP Change in Memorandum and Articles of
Association. (Change in Object, Authorized Capital, Issued Capital, Name and Registered Office
clauses etc) Conversion of Private Limited Co. into Public Limited Co Maintenance Registers
required under the Companies Ordinance 1984. (Register of Members, Debenture Holders,
Mortgage Charges, Directors etc.) Drafting of Appeals, Petitions, Reply and correspondence
with SECP Registration of Chamber of Commerce and Industries Registration of Trade Mark,
Brand Name and Copyrights Pursuing and Correspondence with the Registrar of Trade Mark
Serving the Legal Notices and taking appropriate legal actions against third party on behalf of
clients in case of Infringement of Trade Mark Partnership Registration, Societies Registration etc
1.3.5.3 Legal Services:
Drafting and filing of Suits, Petitions, Written Statements, Appeals, Writ Petitions and Replies
Pursuing, hearing and litigation of court cases (Civil, Criminal, Labour, Tax and Corporate) at all
levels on behalf of Clients Representing Clients before various Civil courts, Criminal courts,
Tribunals, Govt. and Semi-Govt. Departments Liaison with clients and forming litigation
strategy, provide overall legal support to Clients in all fields Giving all kind of Legal Notices to
the third party on behalf of the clients Rendering legal opinions on legal issues arising out of
various laws/regulations, Interpretation of Laws, Vetting and Researching Law
1.3.5.4 Financial Advisory Services:
KSKP & Co. provide financial advisory services to their clients on a proactive basis in the
following areas:
Financial analysis Preparation of feasibility studies Capital structuring and assisting in obtaining
finance Human Resource Consultancy.
They assist their clients in the development of a strong organization structure including selection
and training of the staff. KSKP & Co. services include:
Job analysis and evaluation Designing organization structure and job description
Executive search Training of staff in certain specialized areas Accounting Software
Selection & Implementation
Need help with accounting software selection and implementation? KSKP firm will help
you select the software that's right for you and will teach you how to use it effectively.
1.3.5.5 Attest Services:
KSKP & Co. offers both limited and full scope attest services. They perform audits and reviews
of the financial statements in compliance with SEC requirements. They pledge to deliver cost-
efficient attest services in accordance with your mandatory reporting deadlines.
1.3.5.6 Mergers & Acquisitions:
KSKP & Co. are experienced Mergers and Acquisitions counselors that can help you perform all
requisite financial analysis and due diligence. They will help guide you through alternative
financing, financial disclosure, non-compete agreements and a myriad of other M & A
considerations.
1.3.5.7 Computer Consulting:
You are ready to move into the computer age, but you have fears of expensive, unsuitable
software, fourteen year-olds hacking into your server, and systems crashing. KSKP & Co.
understand your fears and we will work with you to setup an efficient, user-friendly computer
system. Their business-savvy computer technicians and programmers can explain even the most
advanced high-tech concepts in plain English.
1.3.5.8 Sage Pastel:
Sage is a leading supplier of business management software and services to 5.4 million
customers worldwide. From start-ups to larger organizations, we make it easier for companies to
manage their business processes. KSKP & Co. are registered partners of Sage Line 50, the UK’s
no.1 software in Pakistan now called Sage Pastel.
1.3.5.9 Sophos:
Sophos is a world leader in IT security and control. Sophos global threat analysis centres protect
over 100 million users in more than 150 countries from malware, spyware, intrusions, unwanted
applications, spam and policy abuse, and provide comprehensive network access control (NAC).
Its rapid response to emerging threats gives unrivalled levels of customer satisfaction
1.3.5.9.1 KSKP & Co. is the exclusive Partner of Sophos Plc UK .
Enterprise security and control small business solution Endpoint Security and Control Sophos
Security Suite Email Security and Control Sophos Antivirus Web Security and Control Network
Access Control.
1.3.6 SKPS & Co. Reputation in Audit & Accountancy World
Being established for nearly 25 years has earned KSKP & Co. a strong reputation in the world of
accountancy. With so much experience and a growing clientele, they are proud of their status and
are very confident that they will be able to deal with your business with the same integrity and
creativity that has made us unique in the field.
With their expert advice on issues including Sales Tax and Income Tax along with a huge range
of services to offer, they are convinced that KSKP & Co. Chartered Accountants can satisfy all
your business requirements and guide your business for future success. [3]
1.3.7 Some of the Clients:
1.3.7.1 Foreign Clients
1. NETSOL TECHNOLOGIES LIMITED 2. (A Subsidiary of Netsol Technologies Inc. (USA) 3. NETSOL CONNECT (PVT.) LTD. (ISP) 4. (A Subsidiary of Netsol Technologies Inc. (USA) 5. TIG-NETSOL (PVT) LTD. 6. (A Subsidiary of Netsol Technologies Inc. (USA) 7. NETSOL OMNI (PVT.) LTD. 8. (A Subsidiary of Netsol Technologies Inc. (USA) 9. SERVIER RESEARCH & PHARMACEUTICALS 10. (A Subsidiary of Biofarma S.A. (France)) 11. PEARL CONSULTING (PVT.) LTD. 12. (A Subsidiary of Pearl (UAE) 13. ( In process of being listed on NASDAQ) 14. PAKTEL LIMITED 15. (A Subsidiary of Millicom Services (SWEEDEN) 16. INSTAPHONE (PVT.) LTD. 17. (A Subsidiary of Millicom Services (SWEEDEN) 18. WENHEM MAJOR INTERNATIONAL LTD. 19. (A subsidiary of WENHEM (U.K) 20. KOMATSU LTD. 21. (A Subsidiary of KOMATSU (JAPAN) 22. KOMATSU PAKISTAN SOFT (PVT.) LTD.
(A Subsidiary of KOMATSU (JAPAN)
1.3.7.2 Government Clients
23. AJK CO-OPERATIVE BANK LIMITED MINISTRY OF FINANCE GOVT OF NWFP
1.3.7.3 Trust
24. SYED MARATAB ALI.
1.3.7.4 Public Companies
25. BEE ENTERPRISE LTD. 26. BELA AUTOMOTIVES LIMITED 27. EASTEC INTERNATIONAL LIMITED 28. MIRA POWER LIMITED 29. MIRA PAKISTAN LIMITED 30. AKHTAR SOLAR LTD. 31. VIVA TELECOM LTD. 32. RELIENT INTERNATIONAL PRODUCTS LTD. 33. SAZGAAR ENGINEERING LIMITED 34. AL-HAMD FOOD LTD. 35. TERBELA HYDRO LTD. 36. SGM SUGAR MILLS LTD. 37. Allied Bank Ltd.
1.3.7.5 Private Companies
38. CARAVEL (PVT.) LTD. 39. EASY PHONE (PVT.) LIMITED 40. EXCEL ENGINEERING (PVT.) LTD. 41. EXON ENTERPRISES (PVT.) LTD. 42. GALLANT SECURITY SERVICES (PVT.) LIMITED. 43. SB RED DEVELOPERS (PVT.) LTD. 44. HOME SOLUTIONS (PVT.) LTD. 45. NIKS INTERNATIONAL (PVT.) LTD. 46. KARACHI DYEING (PVT.) LTD. 47. KOHINOOR AIRWAVES (PVT.) LTD. 48. SOCIO ENGINEERING (PVT.) LTD. 49. REETS INTERNATIONAL (PVT.) LIMITED 50. MILLINIUM ENGINEERING SERVICES (PVT.) LTD. 51. MILLINIUM TELECOM SERVICES (PVT.) LTD. 52. MILLI TECH (PVT.) LTD. 53. VIIVA ELECTRONICS (PVT.) LTD. 54. VIVA INTERNATIONAL (PVT.) LTD. 55. WINGS CHAIR PAKISTAN (PVT.) LTD.
1.3.7.6 Society
56. KHYIABAN-E-ALI HOUSING SCHEME 57. TELECOMUNICATION EMPLOYEES CO-OPERATIVE 58. ATOMIC ENERGY COOPERATIVE HOUSING SOCIETY 59. SWAAN GARDEN HOUSING SOCIETY 60. ALFALAH HOUSING SOCIETY
1.3.7.7 University
61. LAHORE UNIVERSITY OF MANAGEMENT SCEINCES
1.3.8 Firms Hierarchy at Islamabad
Almost all the branches are supervised by directly partners, each branch has its branch managor
and assistance branch manager that control and supervised all the services that are given to their
customers with the help of audit trainees, and employees.
CHAPTER NO. 2
TASKS
PERFORMED AT
WORK
I have completed my internship in KSKP & Co. firm, Islamabad. During my internship, I have
gained lot of knowledge and professional experience. Following part is showing my detail
regarding my internship.
2.1 Internship at KSKP & Co. Islamabad:
Being student of MBA (Finance), I choose to work with KSKP & Co. Islamabad branch, as an
audit internee, located in Gulshin Plaza, Blue Area Islamabad. During this internship I have
learnt many new skills. Before internship I have only theoretical knowledge about work in
organization but now I have some practical experience of working in organization. Now I have
knowledge about the organization’s working environment and how organizations work and
achieved their goals and objectives. This internship has to gives me the understanding of
business and also about the elements of strategic thinking; planning and implementation, and
how these things are applied in a real world organization environment. Following are the
objectives that I have in my mind before working as an internee.
To improve communication skills.
To analyze the business situation.
To learn about the internal and external audit.
To make quick decisions in real situations.
To establish high standard of professionalism
To learn more than the theoretical knowledge.
To learn book keeping practices of different companies.
To apply theoretical knowledge in actual organization.
To improve my communication and interpersonal skills.
To compare the practical aspects with theoretical aspects.
To learn how to promote and to conduct research in business areas.
To learn about research methodology in term of intangible products.
To learn about the organizational structure in place in Pakistani companies.
To promote my personal knowledge and professional preparation for future. To properly
integrate my theoretical knowledge and practical work.
To plan for the future of oneself and learn how to adjust in an organization.
To know how to present your recommendations in front of your boss.
To get knowledge of opportunities and threats while entering into an organization.
To get exposure to do a work in an organization and also know about organizational
behavior, ethic rules and regulations.
2.2 Task Performed During Internship:
Chartered accountancy sector is the most growing sector of Pakistan and it was at 1st number in
finance field so I think it is a great opportunity for me to work with KSKP & Co. which is good
company in this regard. In my internship tenure (2 months) I have worked in “Audit
Department”. I have tried my best to enhance my abilities and apply the knowledge that I gained
during the studies. When I start my internship session it was the peak working period for
chartered accountant firm, because it was the financial year end of most of companies that are
clients of KSKP & Co. on my fist day at firm, branch manager Mr. Adnan Amin gave me
training session about cut-off procedure and stock takeover for different companies. Mr. Imran
(Assistant Manager) also shared his practical experience with me and gave me some techniques
of this process. He also guided me that how to develop relationship with customers, and how to
face them in all this audit procedure. It was my first day; and my training started in this way.
Different tasks that I performed during my internship:
1. Stock Take-over & Petty Cash Cut-off Procedure
2. The Audit Process
3. Maintenance of accounts/ Book keeping
4. Tax Planning
Software used during Internship:
5. Peachtree Software
6. Fox-Pro software used for Tax Return Purpose Of Salaries (National Bank
Software)
Other Tasks:
7. Registration of companies through SECP
8. Renewal of companies from BOI (Board of Investment)
9. Membership of the companies through Chamber of Commerce
2.2.1 Stock Take-over & Petty Cash Cut-off Procedure:
Stock takeover and petty cash cut off procedure start as the year end of the companies. Its
consists of following steps;
Stocktaking provides the following:
a. Verification of actual inventory to bookkeeping records
b. Count each note by us and check and mach to petty cash register
c. Close that petty cash register on that date
d. Financial information on the status of inventory investment
e. A measure of the effectiveness of inventory counter procedures
f. A cut-off books by us and signature on that cut-off register.
g. A record of inventory holdings by age groups; and
h. An adjustment to the accounting records in order to complete the financial statements.
Actually this procedure is for end up the accounting books for that year by cut-off procedure.
This is the first steps in any audit procedure. I and my colleague Mr. Javad Burkey are given task
of three companies named Dural-Shafa Trust, Netsole company (Pvt.) limited (Pounch house
flate# 204 Sadar), and FM 89 (PIA Plaza 2nd floor) for stock takeover and cut-off procedure. For
stock take over and petty cash counting, KSKP provide us nine forms, their name are;
I. Point Sheet:
In point sheet, we write any point that we feel it help us during audit of company; for
example during Netsol Connect (Pvt.) Limited, in point sheet I write following things;
a) The cards of Cheetah 500 are less during counting by 3 cards.
b) The absolute cards are not active so we assume that there is no discrepancy
c) Inventory are not maintained in proper way
So point sheet shows any confusion in the mind of auditor or any discrepancy, he feel
during stock take over.
II. List of last Receipt Vouchers:
This is the annexure 1 for stock takeover procedure. In this form, we need vouchers of
bank and cash receipt of the last day. We need to enter in this form and also cutoff that
vouchers, and takes a photocopy of them with us.
III. List of Last Payment Vouchers:
This is the annexure 2 for stock takeover procedure. In this form, we need vouchers of
bank and cash payment of the last day. We need to enter in this form and also cutoff that
vouchers, and takes a photocopy of them with us.
IV. List of last cheques:
This is the annexure 3 for stock takeover procedure. In this form, we need cheques of the
last three days. We need to enter in this form and also cut off those cheques, and takes a
photocopy of them with us.
V. List of last documents:
List of last documents contain following cut off documents usually;
a) Goods receipt notes
b) Goods dispatched notes
c) Last sales invoice as at June 30, 2008
d) Last purchase invoice as at June 30, 2008
VI. Cash count forms:
In this form, we count cash by ourselves and match it with here petty cash register; and
signed by the authorities and take a photocopy with us of petty cash register cut off page
of last date.
VII. Detail of discrepancies in stock:
In this form, we write all discrepancies, we found during all stock takeover and petty cash
cutoff procedure.
VIII. List o documents prepared at ware house:
We list all the documents that are to be prepared at are house of the company.
IX. List of obsolete stock:
In this form, enlists all the obsolete stock of the company till stock takeover date.
(See Appendix 1)
We do all procedure as directed by our manager and complete the forms that mean to complete
the all relevant procedure.
During stock takeover procedure we must take these things in accounts;
a. All merchandise on the selling floor, reserve stock room, and warehouse is sorted and
consolidated to facilitate counting and listing;
b. All merchandise in the receiving room, including inventory for which the invoices have
not been received, is properly marked at retail and where necessary by department and/or
age code;
c. All empty boxes, containers, etc, are removed from the selling floor, reserve stock room,
and warehouse stock to prevent excess counts;
d. Cases and containers from which units have been removed will be clearly marked to
ensure that they are not counted as being full;
e. Containers and cases of merchandise located in reserve stock will be marked with the
current retail selling price and where necessary by department and/or age code;
f. Goods on consignment are clearly marked and verified on separate stocktaking sheets
during the count;
g. All layaways are clearly marked by department and included in the count;
h. All slow moving, damaged, and obsolete stock is marked down and properly recorded on
a Retail Price Change (RPC) form CF 1343 to the retail price at which it is expected to be
sold;
i. A stocktaking plan is prepared, including a floor plan, and all staff members,
participating in the stocktaking are instructed in their responsibilities and duties; and
j. All rental equipment is segregated and clearly marked so as to prevent inclusion in the
count.
2.2.2 The Audit Process:
The audit process can differ dramatically from job to job, depending upon the nature of the
auditee and the scope of the audit work. However, there are several basic phases that are present
in nearly all audit work that we do.
Planning Phase;
In the planning phase, audit objectives are defined and the audit tests to be used are determined.
An entry meeting is scheduled for the auditors to introduce themselves and to become acquainted
with the area to be audited. Key personnel are identified, key internal controls are pinpointed,
and the objectives of the activity under audit are determined. An audit program is prepared to
serve as a detailed plan of action for the audit examination,
Field Work Phase;
The auditor then completes the testing and evaluation phase of the audit, referred to as the field
work. During the field work, the auditor gathers and tests information, including the internal
control structure and compliance with applicable policies, procedures, and regulations, to
determine areas which may need recommendations for improvement. When the field work is
completed, an exit conference is held with appropriate management, to review the audit findings,
comments, and recommendations.
Audit Report Phase;
At the end of each assignment, the Internal Audit department issues a written report to the Vice
President for Management and Business, detailing the objectives, scope, and significant audit
findings and recommendations for improvements. Additionally, as appropriate, the results of our
work are communicated to the management of the auditee for implementation of necessary
improvements.
2.2.3 My Experience & Contribution to Audit Work:
During audit procedure, we follow these steps as directed by our audit team boss. For audit of a
company first step is that a team is build and supervised by audit manager. In audit team, senior
and joiner audit trainee both are included. During audit of Kamatsu soft limited, I perform
working on checking and filling forms related to fixed assets of that company. I usually checked
that the company accountant recorded fixed assets are correct or not, is he fellow the rules and
regulation of IAS for this procedure. If any error I found, I must contact to my boss, he checked
it and I record on related form.
We fellow the forms given to us by our team manager, and complete the audit process within two
month for completing of the task assign to me. This work is full of knowledge about accounting
rules and regulation that a company must fellow to complete its accounting records. This work
enhance my knowledge to a great extends and guidance of my seniors and boss help me to
complete this task successfully. Below are the tasks that are provided to me;
1. Audit program “Tangible Assets”:
This program contain following audit procedures
a) Obtained schedule of property, plant and equipment showing beginning and
ending balances, acquisition and disposals during the year, as well as,
accumulated depreciation at the beginning and end of period, with charge for the
year. Check casting and cross casting of the schedule.
b) Trace opening balances from fixed assets register, general ledger and last year’s
working papers.
c) Make a selection of fixed assets held by client at year end and physically inspect
them to ensure that assets is owned and held by client and remaining useful life
appears to be correct.
d) Trace the carrying value of selected assets with supporting documents for
example for purchase in current year, capital expenditure approvals and vender’s
invoices, and ensure that additions to fixed assets do not include any amount of a
nature of revenue expenditure.
(See Appendix 2)
2.2.3 Maintenance of accounts/ Book keeping:
In a week, at least two days I must go to Kamatsu Soft (Pvt.) limited for preparation of their
accounts of company as a whole. I performed following tasks;
General ledger maintenance
Assets / equipment ledger maintenance
Expenses ledger maintenance
Accounts receivable services
Preparing accounts receivable reports
Accounts payable services
Preparing accounts payable reports
Preparing ageing reports & summaries
Bank account reconciliation services
Credit card reconciliation services
Preparing financial statements
Trial balance services
Preparing income statements (Profit & Loss)
Balance sheet services
Invoicing Processing Services
Preparing sales reports
Preparing purchase reports
Cash flow statement
Entry of transactions
(See appendix 3)
2.2.3.1 Tax Planning:
Under this head I was responsible for various tasks such as;
Tax planning of employee’s salary;
Computation of taxes;
Preparation and submission of monthly withholding tax statements;
Registration of new companies with sales tax and income tax department
(See appendix 4)
2.2.3.2 Preparation of Fixed Asset Register:
I also prepare of fixed asset register of at F-8 Merkez, this include following task;
See all the vouchers related to fixed assets
Match these vouchers with their software prepared fixed accounts
Prepared our own Performa for fixed asset register
(See Appendix 5)
2.2.3.3 Software used during Internship:
1. Peachtree Software: All accounting records are prepared on Peachtree software
for Kamatsu (Pvt.) limited by me. I do this work constantly every week. This is
software that allows us to prepare all accounts we need.
2. Fox-Pro software used for Tax Return Purpose Of Salaries (National Bank
Software)
2.2.3.4 Other Tasks:
1. Registration of companies through SECP such as Novelty Enterprise (Pvt.) Ltd
These requirements for registration usually include:-
a. Memorandum and Articles of Association, rules, regulations and by-laws of a Stock
Exchange;
b. Under section 5 of the Securities and Exchange Ordinance, 1969, any Stock
Exchange which is eligible for registration under section 4 can apply to the SECP for
registration on Form I, First Schedule, on payment of prescribed fee.
c. The SECP, if it is satisfied, after such inquiry and after obtaining such further
information as it may consider necessary that the Stock Exchange is eligible for
registration and that it would be in the interest of the trade and also in the public
interest to register the Stock Exchange may grant a certificate of registration to the
Stock Exchange.
2. Renewal of companies from BOI such as Komatsu Soft Limited
Following two steps usually guided us in this regard
a. Any seven or more persons associated for any lawful purpose may, by subscribing
their names to the Memorandum of Association and complying with the requirements
of the Companies Ordinance, in respect of the registration, form a public company,
and any two or more persons, so associated may, in like manner, form a private
company.
b. Availability of Name of the Company The first step with regard to incorporation of a
company is to confirm the availability of the name of the proposed company from the
concerned registrar on payment of a fee of Rs.100, The name should not be
inappropriate, deceptive or designed to offend the religious sensibilities of the people,
and it should neither be identical nor have a close resemblance to the name of any
existing company.
3. Membership of the companies through Chamber of Commerce such as Teamsuns
Technology
Any business concern for and eligible for grant, renewal/re-admission of membership of the
Chamber, if such business concern it should meet some prescribed criteria as described by
Chamber of Commerce Islamabad, detailed on their website
(http://www.icci.com.pk/membership). For such procedure, I usually work went to Chamber of
Commerce for membership of different companies.
.
2.3 SWOT Analysis of KSKP & Co.
The SWOT analysis of KSKP & Co. is conducted as under: -
STRENGTHS
Has a good team for Audit.
Has a good team for income estimation.
Good infrastructure.
Strong centralized system controlled by head office.
Offering good stipend for article ship students and for internees.
Biggest tree of branches spread out all over the Pakistan, which is there to assist the
customers.
Good reputation among customers
Cost advantages from proprietary know-how
Favorable access to distribution networks
It has adequate financial resources.
The company has good competitive skills
Being small means we can adapt our programme each year to meet our member’s
requests.
People like us and we are a friendly group.
The service line is wide.
Increased brand equity
The company has hired well qualified and able employees in all its departments. The services of
KSKP are wide spread such it has almost its branches in big city.
WEAKNESSES
KSKP is newer as compared to it‘s competitors.
They have a small staff with a shallow skills base in many areas
They are vulnerable to vital staff being sick, leaving, etc.
Their cash flow will be unreliable in the early stages
Delay in report delivery to companies.
Less number of staff members.
KSKP provides costly services to customers as compared to other companies.
Company has low market presence or reputation
OPPORTUNITIES
KSKP business sector is expanding; with many future opportunities for success
They have good opportunity to introduce the ISO Standards training program which no
other firm is giving to its customer.
Try to adopt new technologies that their competitors are not using
Try to provide services of “Financial Oracle” that has a wide use in this field
Make a network that allow its customer to negotiate with them easily
In comparison of KSKP with its competitors has an edge to make an accurate and error
free report.
The local economy continues to be strong, and we believe our typical clients will
continue to flourish.
The KSKP has the facility to give coverage even the small retailers for income estimation
who want to take loan from bank.
There is a big opportunity lies that company has established more branches also the
improved number of service, which are the major source of generating revenue.
The company has mostly professional educated human resources, which are the biggest
threat for their competitors.
THREATS
KSKP has many competitors like, A.F. Ferguson & Co, Anjum Asim Shahid Rahman,
Ijaz Tabussum & Co and many more. Under certain circumstances these companies may
act as a major threat for the organization.
Change in ICAP policies can act as a threat for KSKP & Co.
A small change in focus of a large competitor might wipe out any market position KSKP
achieve
Developments in technology change this market beyond KSKP & Co. ability to adapt
Change in Government policies and procedure may act as threat for company
2.4 Conclusion & Recommendations
2.4.1 Recommendations:
Following are my recommendations for KSKP to increase the quality of service.
Learn to listen to your customers first. Really listen to them - ask what you can do to help
them. This is the most important step in preventing problems and the only way you can
solve complaints if they come up.
Look at all complaints about your service as an opportunity to improve. Aim to resolve
any complaint quickly and efficiently.
Establish an environment where great service is recognized and rewarded and poor
service is challenged and rectified.
Have a fun staff meeting where good service elements are discussed and role played.
Ensure that your staff feels they are an important part of your success. Have fun team
building days as well as formal meetings.
Lead by example - show respect for every person at every level in your company.
Do things regularly to improve the workplace.
Happy staff = happy customers.
Give your staff a reason to come to work with a big smile on their face and a great
attitude. Paying them competitive wages so they can live comfortably in the area is a
good start.
Create a sort of enthusiasm you want to inspire in your employees. Their enthusiasm will
naturally pass on through their service.
Be sure your employees are aware of your expectations. Clear service guidelines and
knowledge of the company's mission are necessary.
Hire the right people for the right job. Ensure your interview techniques get the right
answers, not the answers you want to hear. Some people are just really good at
interviewing, but may not be the best people for the job.
To improve the loyalty of employees with the organization it is necessary that proper
incentive must be provided to each level of employees.
Look outside the box and employ people who have a love of service - people with little
experience in your field, but lots of service experience (e.g. retail or hospitality
experience) may be able to learn the intricate details of your business and also provide
the kind of service you need. A service professional with no specific experience might be
better than someone who knows the field, but has no people skills.
Also have your customer service goals in clear view for customers to see.
It is necessary that the management must continuously develop technical and managerial
skills at all levels and stay abreast of latest technological development in the industry.
2.4.2 Conclusion:In conclusion remarks I would like to say something that KSKP is the profitable organization.
KSKP has played very vital role in his field by providing attractive service and packages to the
customers. KSKP has very wide network coverage national and international with latest
technology and provide services to its valued customers. I have done internship in KSKP for a
period of four month and this period is quiet a small period of time yet I have learnt a lot. Here I
apply my knowledge and get a technical practice of my knowledge. Now I know about the
environment of organization and how to communicate with, colleague and boss. I learn that how
to use theoretical knowledge in organization. My communications skills are improved. My
decision making power is improved. Now I have a power to decide about the future. KSKP is a
customer oriented and as well as employee oriented company so it provides a very friendly
environment for the employee. Any internee like me has a good chance of learning new things
and techniques and increases his confidence.
Now I have the advanced knowledge and analytical, and problem solving skills needed to be a
truly effective part of today’s business environment. Now I can prepare the accounting records,
analyses financial reports and documents of an organization, can check the accuracy of the
financial statements, can ensure that the accounts presented are drawn up on correct accounting
principles, can maintain cost auditing records, compiling cost information, installing cost control
and performing cost audits, taxation involves dealing with direct taxes, like income tax and
wealth tax, assessment of taxes, filing returns and providing advice on indirect
taxes. Investigation includes expert examination of specific aspects of businesses for the
information of interested parties on new issues of share capital, the purchase, sale or financing of
a business and for reconstruction. The various areas of consulting include Management
accounting and internal auditing etc. In concluding all this, I can say that KSKP add a great value
in my professional life.
References:
1. http://www.kabanico.com.pk/company.php (20/08/2008, 09:30PM)
2. http://www.kabanico.com.pk/aboutus.php (20/08/2008, 09:35PM)
3. http://www.kabanico.com.pk/services.php (20/08/2008, 09:40PM)
4. http://www.kabanico.com.pk/management.php (25/08/2008, 03:00PM)
5. http://www.kabanico.com.pk/partner.php (25/08/2008, 03:15PM)
6. http://www.kabanico.com.pk/contactus.php (15/05/2009, 01:15PM)
7. http://www.addressmailinglabel.com/Business/Accountant-Chartered-Pakistan (15/05/2009,
01:20PM)
8. http://en.wikipedia.org/wiki/Institute_of_Chartered_Accountants_of_Pakistan (15/05/2009,
01:20PM)
9. http://www.phonebook.com.pk/Dynamic/Search.aspx?
SearchType=cat&Class_ID=1531&City_ID=56 (20/08/2008, 09:35PM)
10. http://www.icap.org.pk/web/links/0/abouticap.php (15/05/2009, 01:20PM)
11. http://www.icap.org.pk/web/links/0/networkingoffirms.php (15/05/2009, 01:20PM)
12. http://www.secp.gov.pk/ (22/05/2009, 11:33AM)
13. http://www.pakboi.gov.pk/boi-ord.htm (22/05/2009, 04:19AM)
14. http://www.skpconsulting.net/ (22/08/2008, 09:445PM)
15. Adnan Amin (0321-5030004)
Branch Manager
Kabani Saeed Kamran Patel & Co.
Chartered Accountants
Office No. 201, 2nd Floor, Gulistan Khan House,
Fazal-Haq Road, Blue Area, Islamabad.
Contents
Internship Letter…………………………………………………………………..…………………………………..….………….………………I
Executive Summary……………………………………………………………….……………………………….………………...…………….II
Chapter #
1……………………………………………………………………………………………………………………………………………. 1
1.1 Chartered Accountancy in Pakistan.......................................................................................................2
1.1.1 International Association:...................................................................................................................2
1.1.2 Market Overview of Chartered Accountancy of Pakistan:..................................................................2
1.1.3 Some Other Players of the Market in Islamabad:...............................................................................3
1.2 Introduction of KSKP & Co.....................................................................................................................5
1.3 Company profile:...................................................................................................................................7
1.3.1 Establishment of Firm:........................................................................................................................7
1.3.2 KSKP Commitment to Work:...............................................................................................................8
1.3.3 About KSKP Partners:..........................................................................................................................8
1.3.4 Departments:......................................................................................................................................9
1.3.5 KSKP Services:...................................................................................................................................10
1.3.6 SKPS & Co. Reputation in Audit & Accountancy World.....................................................................13
1.3.7 Some of the Clients:..........................................................................................................................14
1.3.8 Firms Hierarchy at Islamabad...........................................................................................................16
2.1 Internship at KSKP & Co. Islamabad:....................................................................................................18
2.2 Task Performed During Internship:......................................................................................................19
2.2.1 Stock Take-over & Petty Cash Cut-off Procedure:.............................................................................20
2.2.2 The Audit Process:............................................................................................................................23
2.2.3 My Experience & Contribution to Audit Work:.................................................................................24
2.2.3 Maintenance of accounts/ Book keeping:........................................................................................25
2.3 SWOT Analysis of KSKP & Co...............................................................................................................28
2.4 Conclusion & Recommendations.........................................................................................................31
2.4.1 Recommendations:...........................................................................................................................31
2.4.2 Conclusion:.......................................................................................................................................33
References……………………………………………………………………………………………………………………………… ……………34
Appendix…………………………………………………………….…………………………………………………………………………………35
Acknowledgements
Personal Resume