internship report of maqsood

8/3/2019 Internship Report of Maqsood

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The Incharge internship Programme,Department of Commerce,Bahauddin Zakariya University,Multan.

Subject: - I NT ER NS HI P R EP ORT O N G HA ZI A ND C OM PA NY( C H A RT E R E D A C C O U N TA N T S )

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Dear Sir,

It is an immense admiration for me to present you the internship report as obligatory for the

achievement of MSc (Accounting and Finance) degree programme.

The team and Principal of Ghazi and Company, Chartered Accountants have been very

supportive with me all through my internship possession in providing me information on the

subject of the events and processes in practice. The report is a wide-ranging, containing a

collection of information.

Yours faithfully,

Maqsood Ahmad

Roll No. 32

MSc (Accounting and Finance)

Session (2008-2010)

INTERNSHIP REPORT

ON

CHARTERED ACCOUNTANTS FIRM

GHAZI AND COMPANY (C HARTERED ACCOUNTANTS )

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SUBMITTED BY

MAQSOOD AHMADROLL NO. 32

M.SC (ACCOUNTING & FINANCE),SESSION 2008-2010

DEPARTMENT OF COMMERCEBAHAUDDIN ZAKARIYA

UNIVERSITY, MULTAN

TO My Beloved parents

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&To

All My Teachers

I owe a great many thanks to a great

many people who helped and supportedme during the writing of this Internship

Report.

The special thank goes to my helpful

Coordinator,

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Dr. M. Mutahir

Iqbal . The supervision

and support that he

gave truly help the progression and

smoothness of the internship program.

The co-operation is much indeed

appreciated.

I take immense pleasure in thanking

Prof. Dr. Mujahid Ali , Chairman, and

Younus Ghazi , Principal Ghazi and

Company chartered Accountants.

I wish to express my deep sense of

gratitude to my Internal Guide , Junaid

Khalid, Audit and Tax Manager, and the

all other staff of Ghazi and Company.

Finally, yet importantly, I would like to

express my heartfelt thanks to my

beloved parents for their blessings, myfriends/classmates for their help and

wishes for the successful completion of

this Internship.

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I know it is dip in eternal space

My inadequacies now stare in our face

I hope for direction and the grace

Praying for ability to hasten my pace

The purpose of this report is to explain what I did and learned during my

internship period with chartered Accountants firm Ghazi and Company. It

describes the working of an audit firm and also the work done by me during my

training and concludes the improvement strategies for that company.

This report is also a requirement for the fulfilment of Master of

Accounting and Finance Degree and also it gives the scope of the working of an

audit firm. How they work and what type of strategies they use.

The report focuses primarily on the assignments handled, working

environment, successes and short comings of the firm that I did when handling

various tasks assigned to me by the supervisor.

This report is according to the best of my perception and knowledge gained via

class room lectures and practical experience.

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Abstract

This internship report consists of lot of information aboutaudit firm Ghazi & Company chartered Accountants andalso my personal experience of working with Ghazi andcompany. This report majorly consists of 6 parts whichcontain information. Basically this report shows thefunctions of an audit company and also the practicalexperience of me as a training student. I majorly work inaudit and other departments of the company and learneddifferent thing about the audit. I was placed in variousdepartments and give me work and also instruction fordoing work better and in more quickly.This report covers all of my practical experience which Ireceive during my internship period. This internship giveme the practical experience of my Degree of M.Sc. andalso great exposure about practical life.

TABLE OF CONTENTS

Page No

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Chapter # 1 Introduction. 01-16

1.1 What is audit?........................................................................... 02

1.2 Elements of Audit.. 02

1.3 Who are Chartered Accountants 04

1.4 What Do Chartered Accountants Do? ............................................

04

1.5 Geographical List of Firms of Chartered Accountants (Multan)

05

1.6 Ghazi & Company 06

1.6.1 Brief about Ghazi & Company . .

07

1.6.2 Mission statement.. 081.6.3 Objectives.. 09

1.6.4 List of Major Clients of Ghazi & company 10

1.7 Departments 11

1.7.1 Audit Department... 12

1.7.2 Tax Department... 13

1.7.3 Consultancy Department. 15

1.7.4 Secretarial Department 16

Chapter # 2 Job Completed By ME.. 17-25

2 .1 My Work in This Period. 18

2.2 Book Keeping. 19

2.3 Casting 19

2.4 Stock Taking of Unilever Company... 20

2.5 Change in Memorandum of the Company.. 21

2.6 Preparing Accounts of the Companies.... 232.7 Annual Stock Taking and Cutoff Procedures. 24

Chapter # 3 Conclusion.. 26-27

3.1 Conclusion 27

Chapter # 4 Recommendations.. 28-29

4.1 Recommendations 29

Chapter # 5 References... 30-31

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5.1 References 31

Chapter # 6 Appendix...... 32-46

6.1 Cutoff Procedure.. 33

6.2 Cutoff Procedures Banks 35

6.3 Stock Taking Documents Checklist and Responsibilities. 36

6.4 Audit Observations of Physical Stock Taking.. 37

6.5 Cash Count Statement.. 40

6.6 Significant Audit Ticks. 41

6.7 Application for Alteration in Memorandum of Association 42

6.8 FORM 26.. 44

6.9 FORM 34.. 45

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What is audit ?

The objective of an audit of financial statements is to enable the auditor to express an

opinion whether the financial statements are prepared, in all material respects, in accordance

with an applicable financial reporting framework.

Audit of financial statements, is the review of the financial statements of a company

or any other legal entity including governments, resulting in the publication of an

independent opinion on whether or not those financial statements are relevant, accurate,

complete, and fairly presented.

The word audit has two meanings.

The first is the security audit, whereby a consulting firm comes in and validates a

companies security profile. This is similar to how accounting firms review a company's

books.

The second term is infosec specific, and means an "auditing" subsystem that monitors

actions within the system. For example, it may keep a record of everyone who logs onto a

system. Such a record is known as an audit trail.

Audits are performed to ascertain the Validity, Reliability in the books of accounts

and also provide an assessment of a system's internal control. The term validity also called

logical truth, analytic truth, or necessary truth. And reliability is the ability of a person or

system to perform and maintain its functions in routine circumstances, as well as hostile or

unexpected circumstances.

Auditing is a systematic process of objectively obtaining and evaluating evidenceregarding assertions about economic actions and events to ascertain the degree of correspondence between those assertions and established criteria and communicating theresults to interested users.

Elements of Audit

Audit planning:

Firstly the audit plan the audit work means how the audit will be carried out

during the period

Working papers:

Auditors prepare the working papers about audit. It means the auditor write

down all the work which will perform during auditPhysical and environmental review

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This includes physical security, power supply, air conditioning, humidity

control and other environmental factors.

System administration review

This includes security review of the operating systems, database management

systems, all system administration procedures and compliance.

Application software review

The business application could be payroll, invoicing, a web-based customer

order processing system or an enterprise resource planning system that actually runs

the business. Review of such application software includes access control and

authorizations, validations, error and exception handling, business process flows

within the application software and complementary manual controls and procedures.

Network security review

Review of internal and external connections to the system, perimeter security,

firewall review, router access control lists, port scanning and intrusion detection are

some typical areas of coverage.

Business continuity review

This includes existence and maintenance of fault tolerant and redundant

hardware, backup procedures and storage, and documented and tested disaster

recovery/business continuity plan.

Data integrity review

The purpose of this is scrutiny of live data to verify adequacy of controls and

impact of weaknesses, as noticed from any of the above reviews. Such substantive

testing can be done using generalized audit software.

Audit Report

Once all the data has been gathered, processed, and examined, an audit report

will be produced. With the information provided, the company may then decide whichareas to work on and prioritize according to the issues raised in the report.

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Who are Chartered Accountants

A qualified professional accountant who is a member of an Institute of Chartered

Accountants. Chartered accountants are qualified to audit company accounts and some hold

management positions in companies. Someone who has met the specific academic and professional requirements of a body such as the Institute of Chartered Accountants of

Pakistan.

The Institute of Chartered Accountants of Pakistan (ICAP) 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.

What Do Chartered Accountants Do?

Chartered Accountants are to be found at the heart of nearly all successful

organizations. Their primary role is to evaluate the financial implications of key decisions

and to ensure effective financial management. From that vantage point, they are in a unique

position to advance their careers. Todays C.A.s are expected to give advice to their clients

and employers on all aspects of business and to play a key role in information management.

They become involved in such diverse areas as raising capital, financial planning,

management information systems, taxation and marketing.

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Geographical List of Firms of Chartered Accountants (Multan)

Mahboob Sheikh & Co.CharteredAccountants

Near Auto Plaza, Dera Adda Multan.

Off. 515248, 589205 Fax. 588410

[email protected]

M. Sajid & Co. Chartered AccountantsRoom # 4-5 First Floor Khawaja Centre, LMQRoad Multan.

Off. 517850, 517950,0300-6301237

[email protected]

Waqas & Co. Chartered AccountantsRoom # 2425 Hajveria arcade KacthehiRoad Multan

Off. 0614500967

Ghazi & Co. Chartered Accountants

Tawakkal Autos Plaza Chowk Civil HospitalAbdali Road Multan.

Ph# 061- 4518031 -4585960-61 Fax : 061-4585961

E-mail:[email protected]

Ashiq & Co. Chartered Accountants

23-Auto Plaza, Dera Adda Multan.

Off. 515031, 0303-6670544

Nazir Chaudhri & Co. CharteredAccountants

Near Auto Plaza, Dera Adda Multan.

Off. 515248, 589205 Fax. 588410

[email protected]

Asif Niaz & Co. Chartered Accountants

105, Floor, International Plaza BohraStreet, Multan Cantt. Multan.

Off.511842 Fax.783018

[email protected]

Abdul Sattar & Co. Chartered Accountants

Opp.Govt. Pilot School Abdali Road Multan-60000

Off. 510031, 546467 Fax. 510031

[email protected]

Amer Haroon & Co. CharteredAccountants

209-A, WAPDA Town Bosan Road ByPass Multan.

Off. 0300-8633200, 221607,521607

M. Yousuf Adil Saleem & Co. CharteredAccountants

First Floor, 61-B Ali Imran Centre Abdali RoadMultan.

Off. 111552626, 785211-13 Fax. 785214

[email protected]

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BRIEF ABOUT GHAZI & COMPANY

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Ghazi & Company is an audit firm which performs all the activities of a chartered

Accountant firm. Means it performs the audit work, financial advisory work, taxation work

and also prepare the accounts of different banks and small companies.

The origins of Ghazi & Company Chartered Accountants Stretch back as far as 1982

and, through successful growth; the firm today is in a strong and independent practice. The

principle Mr. Younus Ghazi is a Chartered Accountant and has registered himself as FCA

in Institute of Chartered Accountants of Pakistan. As one of the leading accounting practice

in Pakistan in term of clients, staff and annual turnover, Ghazi & Company Chartered

Accountants is well placed to offer a high quality service and wide range of expertise.

Mr. Younus Ghazi is the principal of the firm. He is Certified Chartered Accountant.

He is responsible for making sure that all the financial statements on which an audit report is

issued adhered to the requirements of Companies Ordinance, 1984.Ghazi & Company Chartered Accountants the member of ICAP in Pakistan is one of

the countrys leading professional services firms. With over 250 Clients located across the

Pakistan , Ghazi & Company Chartered Accountants provides Services for,

At this time the firm is not allowed for the audit of listed companies because the firm

is not achieved QCR (Quality Control Review). The firm now applying for QCR (Quality

Control Review) and after achieving QCR the Ghazi & Company firm will be able for

performing the Audit of listed companies.Quality Control Review is the process issued by ICAP for quality audit. It means the

firm which is QCR qualified they show the quality of the firm audit is awesome. The basic

objective of QCR is to establish policies and procedures for the QCR program that ensures

that firms carry out audits in accordance with the professional standards adopted by the

Institute.

The firm is now following the guidelines issue by the quality assurance department

for improving the audit of the company. And after achieving it the firm will able to conduct

the audit of the public limited company.

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To provide Customer best and accurateinformation about their statements

To grow as an institution keeping inmind prudent growth and halal profits.

To provide customers the drawbacks intheir books of accounts for future safety

To continue being a socially consciousorganization .

Objectives

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List of Major Clients of Ghazi & company

Ayesha Flour Mills (Private) Limited

Shabbir Chicks (Private) Limited

Rehmat Flour Mills (Private) Limited

AAA Doublers (Private) Limited

Khalid Modern Industries (Private) Limited

Khawaja Tanneries (Private) Limited

Indus Pak Advisors (Private) Limited

Karmanwalay (Private) Limited

Haniyah Tours (Private) Limited

Punjnad Textile Mills (Private) Limited

Nauroze Associates (Private) Limited

S & S Home Textile Exports (Private) Limited

Shujabad Industries (Private) LimitedHusnain Industries(Private) Limited

Ghazi Cotton Industries (Private) Limited

ABCO Technical (Private) Limited

Multan Chamber of Commerce & Industry

Rohi Cotton Industries (Private) Limited

Al-Faisal Industries (Private) Limited

Bismillah Cotton Industries (Private) Limited

Multan Cotton Association, Multan

Attiqui Welfare Trust, Multan

Oriel (Private) Limited

Orbit Agro (Private) Limited

Gascon (Private) Limited

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Ghousia Ghee Mills (Private) Limited

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Departments

There are following four departments of the firm

Audit Department

External Audits

Special Audits

Statutory Audits

Internal Audits

Income Tax Audits

Tax Department

Corporate Taxation

Personal Taxation

Indirect Taxes

Trade and Customs

Consultancy Department

Financial Advisory Services

Risk Advisory Services

Secretarial Department

Audit Department12
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Audit of accounts is a statutory requirement as well as necessary for all sorts of modern

business concerns. The firm is uniquely qualified to serve the statutory needs of both national

and international clients, and reports on the financial statements of public and private

corporations in accordance with the laws of the country and in accordance with InternationalAccounting Standards, Auditing Standards and International Standards on Auditing,

Prudential Regulations. In an audit not only the accuracy of the financial statements/business

results is established but as a result of audit, the possible weakness/deficiencies, in the

accounting and related internal control systems, are pinpointed.

The firm calls upon a wide range of experience in the audit of organizations. The firm

provides audit services which include annual audit, statutory audit, auditors certificate for

revaluation of assets and auditors certificate for restructuring of loans. Audit quality is our

top priority. Fulfilling this commitment to maintain the highest audit quality requires

vigilance in making sure our audit complies with changing regulations and professional

standards. Evidence of our commitment is clear. The audit methodology is designed to meet

applicable national and international standards. The audit methodology also emphasizes the

critical nature of substantive procedures and effective risk assessment and control testing

activities. We provide opinions in accordance with national statutory requirements and in

compliance with all relevant national and international regulations.

A well-prepared report can have a considerable positive impact on the perceptions of

investors, potential finance sources, customers, prospect, referral sources, and even clients

own staff - all of which greatly improves client business prospects for the future.

Firm provide following audit services to its clients.

Special Audits

Statutory Audits

Internal Audits

Income Tax Audits

Tax Department

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An effective tax planning may enable the client to adjust according to the needs/requirement

of the tax law thus avoiding major amounts of tax as well as complications in the tax matters.

Moreover by providing proper consultancy, firm not only saves the client from legal actions

against the Organizations but also adds to the government revenue through helping avoid Tax

Evasion. The firm associates with the clients in their tax planning as well as other related tax

matters.

We offer a wide range of tax services including corporate and individual planning and

compliance, as well as global projects that involve designing and implementing tax strategies

to help produce sustainable long-term tax savings.

We also offer advice in areas such as international corporate tax, mergers and acquisitions,

transfer pricing, indirect taxes, trade and customs and international expatriate services. In our

experience, tax strategies often serve as a change catalyst for a client's business affectingstrategy, structure, people, culture, technology, processes and services and products.

Understanding a client's appetite for change and risk is vital to implementing a tax plan that

can help enhance shareholder value.

Corporate Taxation

Firm offer a range of services to help business minimize his corporate tax exposure and

relieve him from the administrative burden of complying with tax legislation.

Corporation tax represents a substantial part of a business trading costs. Moreover, the

increased reporting obligations, robust investigation policies on the part of the tax authorities,

and harsher penalties for non-compliance mean that an undue amount of client time and

resources can be taken up collecting revenue for the Government.

Personal Taxation

Firm really understand the personal tax issues of affecting locals and foreign nationals living

or working in the Pakistan and can advise them on how to avoid paying unnecessary tax.

Firm also help temporary Pakistan residents, and give tax advice to Pakistani nationals who

are going abroad, either permanently or temporarily. Firm also encourage them to consider

lifetime tax planning, focusing on the different opportunities available to them at various

stages of their personal and professional life, such as starting their career, family

commitments, planning for retirement or passing on their wealth or business to others.

Complete range of services for income tax as well as wealth tax including tax planning

strategy, computation and filing of tax returns, finalization of assessments, representations,

objections, appeals and keeping clients updated on on-going developments.

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Indirect Tax

The firm provides comprehensive advisory service in the field of indirect or sales tax which

includes structuring the sales tax system, implementation of sales tax system, filing of sales

tax returns, undertaking representations, objections & appeals and obtaining exemptions &

concessions wherever applicable. We provide efficient cost effective services, like GST

registration, enrolment or enlistment and related legal formalities. GST compliance, reporting

and filling of tax returns, representation in adjudication proceedings including appeals and

references. Educating for Sales Tax records, adjustment of Input Tax and exemptions.

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Consultancy Department

Financial Advisory Services

Businesses facing critical investment and strategic decisions for building their market

share or defending a market position need impartial advice, independent from financing

sources. Our advice can extend to turnaround strategies for under performing companies,

support throughout a transaction life cycle and a response to security related matters.

Corporate Finance services include advice on financing, mergers and acquisitions to quoted,

publicly unlisted, and private limited companies in the private and public sectors;

divestitures; structured and project financing; leveraged buy-outs; initial public offerings;

privatization; and valuations.

Our Financial Advisory Services [FAS] network comprises:

Restructuring

Transaction Services

Forensic Services

Mergers, acquisitions and disposals

Valuations and fairness opinions

Structured and project financing

Debt advisory servicesInitial Public Offering (IPO) sponsorship and advice

Businesses facing critical investment and strategic decisions for building their market share

or defending a market position need impartial advice, independent from financing sources.

Our advice can extend to turnaround strategies for under performing companies, support

throughout a transaction life cycle and a response to security related matters.

Investment Advisory Services

Advice on analyzing investment prospects and mode of doing business in Pakistan

including advising on the form of legal entity, incorporation, obtaining of necessary

permissions and help in dealing with local regulators. Our Investment Advisory Service

professionals specialize in identifying risks arising from regulation, competition and macro

economic forces and designing strategies to manage it to your advantage. Our range of

services includes. All investment carries some risk and thus needs careful analysis and expert

advice. The key to be a successful investor is to achieve appropriate risk/return trade off by

identification of risks that exist and their proactive management.

Risk Advisory Services

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Our Risk Advisory Services are able to help clients manage risk so they can focus

on their core businesses. By intimately understanding each client's business we

can convert knowledge into insights that can help clients improve performance

and make decisions that strengthen their business. Advisory services like, Human

Capital, Internal Audit, Investment Advisory Services, Outsourcing, Human Capital

Secretarial Department

Company also engage in preparing the final accounts of the company. Means firm complete

all the book of accounts of their client firm. These firms are small in size and not hire their

accountants then they pay the company for accounts. Different type of banks and madrasa

prepare their accounts with Ghazi and Company.

Secretarial services include compliance of corporate formalities related to incorporation andregistration of new local and multinational companies and branch offices. Core Corporate

Secretarial Services like, Incorporation of companies including legal drafting of

memorandum and articles of association and allied documents, Allotment of shares, issuance

of share certificates, and maintenance of all forms of share registers/records, Company

Secretarial Services includes regular maintenance of statutory records e.g. conducting annual

& extra ordinary general meetings, minutes of meeting, assistance in election of general body

or directors, appointment and renewal of statutory office bearers, registration of mortgages &

charges etc.

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In Ghazi & Company during my internship period I involved in many work with my seniors

and as well as alone. My tenure was 6 weeks. In which different type of audit, consultancy,

and secretarial work which assigned by me seniors. When I start the work at company the

peek time of the company work was began to start and thats why I was engaged in my

activities.

I performed major work at the office. And unfortunately not attend any audit because the

term of audit start in august and my tenure ended in the last week of July. Irrespective of this

phenomenon I learned many things in my period. The working staff was very corporative.

MY WORK IN THIS PERIOD:

Book keeping

Casting

Stock Taking of Unilever Company

Change in Memorandum of the Company

Preparing Accounts of the Companies

Annual Stock taking and Cutoff procedures of the Client Companies

Khawaja Tanneries (Private) Limited

International System Engineering & Services (Private) Ltd.

Vouching

Work on QCR

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MY FIRST PROJECT

BOOK KEEPING

In first week of my internship the work assign to me was to maintain the book keeping of the

company. For this purpose I maintain the cash book of the company and at this time company

is not preparing its books of accounts and for QCR purpose it is necessary to prepare the

books of accounts and thats why my senior sign me the cash book work and ask me to

calculate the receipts and payment of the company for the year ended 2008.

This is services Provider Company at its major income comes from the receipts from client

for their services. And the major expense of the company is the electricity expenses and

stationary, and stipend of the workers and staff. My work was to record all the cash book of

2008 on computer after cross verifying it with cash book, voucher receipts, and bill register.

Then record it on the computer system with the description. In this work one my senior also

work with my and guide me but this work is related with my degree so not big tension I face

The problem which was their in cash book it was not properly maintain and many entries

were not even written but their voucher was passed. So this is a big problem with their books

which I describe to the senior.

CASTING

The other work which was assigned to me was checking the casting of the financial

statements of the client. The company is involved in preparing the financial statements of the

clients for their best interest. For this purpose company prepare all the financial statements of

the company like, income statement, balance sheet, cash flow statement, and change in equity

statement. After preparing the accounts they check is manually either it is prepare correctly or

not and my task was to check the total or casting again and also the spell they used either it is

correct or not. Companies pay for these services to the company. I check it with calculator and also check the carry forward and the schedule of depreciation either the carry forward

amounts are correct and income correctly carried in balance sheet or not and other amount

accurately carried forward. I have checked the statements of many companies. When I joined

the company at this time the audit work was not started thats why the work of preparing the

accounts of the companies was sufficient. This work also related with my degree courses

because the work is related with accounting type of the accounts which I make many times.

STOCK TAKING OF UNILEVER COMPANY

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The Ghazi and company also a partner with the internal audit company of unilever Pakistan.

My other assignment was on unilever. The internal auditor wants to conduct the surprise visit

to check work of their employees at Multan warehouse. There are many warehouses in

Multan also. My duty was on Raseed abad warehouse. My manager make different teams and

I my team there were 6 people and 1 team leader which was the internal auditor from

Karachi.

We reached the warehouse early because the out going vans were not loaded yet. After arrival

the leader of my group sings all the books because no further entry would be passed.

Then he assigns me to verify the stock of Tea item. Stock taking process involves physical

count of products actually held in stock as a basis for verification of the stock records and

accounts.

There were 35 kinds of tea with different taste and different weight and also different nature.There were carton of different tea of Tapal and supreme was available

Different packets of tea

Different size of tea was available means different weight

And tea bags were also in different size and taste and company were available

I was instructed to verify 100% not sample is taken because it is internal audit. And also

check the physical condition of the stock and also the stand of the stock. Either the pallet (on

which the stock kept) is in good condition or the stock on it is good or not.My team leader give us a brief overview about the stock taking and stock counting which

give us much help during the physical count. During this count we are instructed to note

down the Actual count and also write this figure to the store keeper because at the end it will

verify from the stock register and at this time no problem exists.

After the physical count the software copy of that stock provided me and it was disclosed to

me to verify both statement and find out the surplus or deficit from that. At the end the

differences which are found and all other material which was collected from that were signed

and stamped by the store keeper.

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CHANGE IN MEMORANDUM OF THE COMPANY

The next assignment which was assign to me with my senior Abdur Rehman was to change

the Memorandum of Karmanwalay (Private) Limited.

Karmanwalay (Private) Limited was incorporated in Pakistan on 29th August 1991 as aPrivate Limited Company. It is principally engaged in the business of manufacturing and

sales of oil, laundry soap, cotton ginning, pressing and extraction of seed oil. The registered

office of the company is situated at 10/68 G.T. Road Mian Channu.

Our task was to change in the Object Clause of Memorandum. The Reason for alteration was

the company lease all business to an other person and now they want to give power to the

person for giving guarantee on the behalf of the company.

The main purpose of this Alteration was

To enable the Company to give any guarantee/ guarantees for and on behalf of the company

to secure its liability or of any associated undertaking owned or controlled by directors of the

company, in favour of any bank or financial institution and to offer companys assets as

security to said banks or financial institutions and also to authorize the company to do

multifarious therefore, the company intends to amend its memorandum of association by the

insertion of clauses from 01 to 32 of the object clauses enabling to guarantee the

performance of the contract and obligation of the company or any other persons undertaking

in relation to the payment of any loan, obligation or securities by or in favour of the company

or any other person and to guarantee the repayment of loan, return of such investment or of

dividend on any share of the company and also to authorize the company to do multifarious

business.

And for this Purpose we concerned Section 21 of Companies Ordinance 1984. Under this all

procedure was given to alter the Memorandum.

And Prepare a Complete Case File which Consist of Following Documents:-

Firstly an application was prepare under this section and the entire necessary

document which were needed written on it. This application is attach in appendix.

Then a letter of reason for change is prepare and

Then the Form 26 was fill it was compulsory to fill this form. It was named special

resolution.

After preparing form 26 Comparative Statement is prepare which consist of new

Memorandum and Old Memorandum

Existing Memorandum and Article of Association was Attached

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Copy of amended Memorandum of Association was Attached which was prepare.

Then one important document attached Form 34 this form is for the Pattern of

Shareholding. Which show how many share different share holder hold?

Then Minutes of Meeting was prepare and Attached

After it the Audited Copy of Audited Accounts were Attached which was prepare in

the office.

Bank Challan of 12000 was deposited and attached with it

Affidavit was prepare and attached which show the willingness of director and chief

executive to change in this Memorandum.

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PREPARING ACCOUNTS OF THE COMPANIES

My next Assignment in my internship period was preparing the Accounts of the Client

Companies.

The firm is also engage in preparing the accounts of its client. It receives raw data from clientand prepares accounts on computer with notes and according to the International Standards of

Accounting. Firm can relieve client and his staff of an enormous burden by taking care of all

its bookkeeping and accounting needs, including the preparation of its annual accounts.

Firms first step is to work with client so it can gain a full understanding of his business. Firm

then tailor its approach to client requirements so that it can provide exactly that which service

client need. Besides clients core bookkeeping, firm can also maintain his sales tax records,

prepare and audit his funds, and take on short-term projects to relieve client staff of any

temporary overload.

I have prepared the Accounts of Different companies and this work also related with my

M.Sc. degree because I already know the accounting accounts and standards for preparing the

accounts.

I have prepared the accounts of Karmanwalay (Private) limited. It is principally engaged in

the business of manufacturing and sales of oil, laundry soap, cotton ginning, pressing and

extraction of seed oil.

And also prepare the accounts of Shadab industries (Pvt.) Limited. It was incorporated in

Pakistan on 22th September 1973 as a Private Limited Company. It is principally engaged in

the business of cotton ginning. The registered office of the company is situated at Vehari road

Hasilpur.

The other company accounts which I prepare was Khawaja Tanneries (Private) Limited. It

was incorporated on April 10, 1961 as a private limited company in Pakistan under the

Companies Ordinance 1984. It is principally engaged in the business of leather, tanning and

leather products. The registered office of the company is situated at Multan.

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ANNUAL STOCK TAKING AND CUTOFF PROCEDURES

The accounting year of major clients of Ghazi and Company ends at 30 th June. So the

physical stock taking and cutoff procedures is necessary for next audit. Because by stock

taking the auditor count the physical items at the last day of the year and then it will bematched with the records of that day. If it is matched then ok otherwise query raised. And

cutoff procedures means the current ledgers and books must be cutoff before the next year

starts and no further entry should passed.

For this purpose the stock taking and cutoff procedures are adopt at the 1 st of July. And teams

were created for this purpose and I was also a member of one team for stock taking purpose.

My tasks with my senior were the stock taking and cutoff procedures of Khawaja Tanneries

(Private) Limited and International System Engineering and Services (Private) Limited.

Khawaja Tanneries (Private) Limited was incorporated on April 10, 1961 as a private limited

company in Pakistan under the Companies Ordinance 1984. It is principally engaged in the

business of leather, tanning and leather products. The registered office of the company is

situated at Multan.

International System Engineering and Services (Private) Limited was incorporated in

Pakistan on September 06, 2007 as a private limited company. The registered office of the

company is situated at Islamabad. The company is principally engaged in the business

providing services in the field of Engineering, Construction, Operation, and Maintenance &

Engineering Consultancy in the field of Information Technology, Telecommunication /

Electronics and related services.

Our tasks were the stock taking of above companies. Firstly we were reached at Khawaja

Tanneries and in Main office we Cutoff the Cash book and other main office documents.

Then we visit and factory and physically count the stock of different chemicals and other raw

material. And also write in on the different documented papers which are in appendix.

And next day we visit the international system of engineering and services and repeat the

process. And we also collect different photocopies of different necessary documents and

signed and stamped from the authorized staff.

The Detail of these Photocopies are:

The last gate inward pass

The last gate outward pass

The cash in hand

Stock in transit

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List of banks along with their addresses and account numbers

List of debtor along with their addresses and outstanding balances

List of creditors along with their addresses and outstanding balances

Name and address of legal advisor and tax consultant.

The last voucher of Cash receipt

The last voucher of Cash payment

The last voucher of Bank receipt

The last voucher of Bank payment

The last voucher of General voucher

The last delivery challan

The last purchase order

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Conclusion

At the end of this report and my internship I concludes that it

was great pleasure and beneficial for me to work with the oldest

firm of audit in Multan. I have completed my 6 weeks internship

in Ghazi and Company my remarks about the company is that

this is one of oldest and well reputed company. And play a very

vital role in providing the services to the customer. Ghazi and

Company is a company which gives more importance to itscustomers and also to its employees. It is also concluded that I

have learned many thing in this tenure and also it give my

awesome exposure about the difficulties of practical life and

benefits of practical life. This was the chance to apply of bookish

knowledge in practical field and learned how practical and

bookish knowledge is different one.

At the end I would like to thanks my department and also Ghaziand company for giving me opportunity for work in the good

organization.

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RECOMMENDATIONS

In this competitive world I recommend that they should spend more on the

advertisement and publicity.

The one major problem was there the rude behavior of the employees and this is

due to the stipend need so it is also advised to help the employees and also

motivate the employees of the company.

The communication gap between officials and employees should be removed.

There should be rule but not overruled for the employees.

There should be special training programmes for the staff.

It is also advised that there should quality in the work of the employees.

The environment of the office should be comfortable for staff.

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Mr. Mohammad Younus Ghazi

The principal of Ghazi and Company Chartered Accountants

Mr. Junaid Khalid

Audit and Tax Manager

Mr. Imran Ghazi

Audit Supervisor

www. icap .org.pk www.ifac.org

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http://www.icap.org.pk/http://www.icap.org.pk/http://www.ifac.org/http://www.icap.org.pk/http://www.ifac.org/


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CUT OFF PROCEDURE

LIST NUMBER AND DATE OF VOUCHERS / DOCUMENTS USED

CLIENT NAME: -________________________ DATE: _________ YEAR ENDED: ___________

1: Gate Inward Pass ________________________

2: Gate Outward Pass ________________________

3: Delivery Challan

Mills ________________________

Head Office ________________________

4: Store Issue Note ________________________

5: Store Receipt Note ________________________

6: Purchase Order No. ________________________

7: Stock Requisition ________________________

8: Store Internal Transfer

________________________

9: Cash Memo No.

Mills ________________________

Head Office ________________________

10: Bill Number Local / Export

Head Office ________________________

11: Payment Voucher

Head Office ________________________

12: Receipt Voucher

Head Office ________________________

13: Petty Cash VoucherMills ________________________

Head Office ________________________

14: Cheque Number

Head Office ________________________

15: Pay in Slip Amount ________________________

16: Last Cash Book Folio

________________________

17: Total Number of Workers ________________________

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18: Total Number of Staff

________________________

19: Last Person Employed/Card No.

________________________

20: Last GRN for Purchase ________________________

21: Last Issue No.

________________________

22: ________________________

Prepared By: ________________________

Audit Senior: ________________________

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CUT OFF PROCEDURES BANKSCLIENT NAME: - __________________________ DATED:

___________ YEAR ENDED: _____________________

SR.# BANK & A/C NO.

LAST CHEQUE LAST DEPOSIT SLIP REMARKSNO. AMOUNT NO. AMOUNT

PREPARED BY: ______________CHECKED BY: ______________REVIEWED BY: ______________

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CHARTERED ACCOUNTANTSSTOCK TAKING DOCUMENTS CHECKLIST AND

RESPONSIBILITIESSr.#

DescriptionResponsibility taken

by( Client / Auditors)

Remarks

1 Bank confirmation

2 Debtors balanceconfirmations

3 Creditors balanceconfirmations

4 Related partiesbalance confirmations

5 Lease confirmations

6 Confirmation of taxmatters

7 Confirmation of legalmatters

Signature Client Signature Auditor(Name of Person) (Name of Person)

AUDIT OBSERVATIONS OF PHYSICAL STOCK TAKING

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Stock is normally one of the most significant items on thebalance sheet. Stock taking is a very important part of theclients internal control system. Besides testing clients stocksand store as accounting records by applying various auditprocedures, we test clients application of stock takingprocedures also. This is done by test counting the stock andstore items . The performs report on such observation isdesigned ensure that all significant areas have been covered.Separate working papers should be prepared for notes andquerries and for explanation to the answer given in the report.At the end of physical count a copy of duly signed inventorysheet should be obtained and items actually counted by ourstaff should be clearly marked. Last number of stock and storeinward and outward documents should also be noted after thestock taking has finished. Upon conclusion all these with cashcount sheets should be submitted in a separate file cover forreview.

Client Name-_________________________________________________ Period ________________________ Business _______________________ Observed on ___________________ At ____________________________

STOCK TAKING PROCEDURES

1. One hundred percent ____________________ 2. Test check indicate extent

____________________ 3. Instructions given in writing

____________________ 4. We have a copy

____________________

5. We find the instructions adequate ____________________ 6. Stocks kept ready for Physical count

____________________ 7. Slow moving, damaged, obsolete and

Substandard stocks separately kept ____________________ 8. Stocks held for third parties separately kept

__________________

9. Pre-numbered inventory sheets and ___________________

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10. Unused inventory sheets returned __________________

PHYSICAL COUNT

1. Done by the people not keeping it ____________________

2. Done by the people competent toto understand the description andcondition of stock items

____________________ 3. Extent of year end stock counting

State that all items counted or estimationalso done.

____________________

Indicate method of estimation ____________________

4. Items physically counted correctlyrecorded on inventory sheets.

____________________

5. Counted by one person and checkedby another ____________________

6. Inventory sheets have the evidence of Counting the checking.

____________________

7. Are procedures adequate to take intoStock all recorded purchases andExcluded all recorded sales.

____________________ 8. Stock held for third parties counted

And agreed to records. ____________________

9. Procedure adequate to ensure that allItems in one department have beenCounted. None is omitted or countedmore than once.

____________________ 10. Main stock records, bin cards and

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Inventory sheet balance agreed. ____________________

11. Variances investigated and writeOffs done after appropriate approval.

____________________ 12. Stock in bonded warehouse observed

and copy or extract of register obtained. ___________________

13. Certificate obtained and where possible

Counted, stock with third parties andChecked with record.

___________________

OTHER MATTERS

1. Adequate controls exists against,

Access by unauthorized persons, _______________

Fire _______________

Deterioration and _______________

Other hazards _______________

2. Store is in good condition withAdequate storage space andProperly packed. _______________

3. Record keeping done by the personsNot involved in stock keeping orStock counting.

_______________

4. Insurance cover exists. _______________

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Senior ______________Semi Senior _____________Junior ____________

CONCLUSION

I am satisfied that the client has adequate stock takingprocedures and such procedures were effectively put inoperation. I am, therefore, of the opinion that the clientobservation of the stock taking can be relied upon subject tothe clearance of the above mentioned matters.

Audit Senior __________________________________________________

Cash Count Statement

Name of Client

Year Ended

Date and time of Cash Count

Place of CashCount

DENOMINATIONS Nos: Rupees Ps

Notes: 5000 X1000 X

500 X100 X

50 X20 X10 X

5 XCoins:

5 X2 X1 X

Stamps (Detail Enclosed)Prize Bonds (Detail Enclosed)Cheque (DetailEnclosed)I.O. Us (Detail Enclosed)

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Cash as per Physical CountCash As per Cash Book

I Declare That I have no other cash fund or stamps or prize bonds and any other kind of securities

in my possession and that the above fund was counted in my presence and return to me intact.

Mr. Designation Signature .

Counter SignedBy:

Mr. Designation Signature .

(Note: Use separate cash count statement for each separate cash fund)(Cut off procedure: Obtain last number of cheques, invoices, vouchers and other documents)

SIGNIFICANT AUDIT TICKS

Sr# DESCRIPTION

AUDITTICKS

1 Opening Balances B 000.00

2 Closing Balances 000.00 B

3 Vouching 000.00

4 Posting 000.00

5 Casting 000.00

6 Cross Casting 000.00

7 Calculation 000.00

8 Carried Forward 000.00 C/F

9 Brought Forward B/F 000.00

10 Reconciliation ( Bank Book and Bank Statement)000.00

11 Subsequent Clearance ( Bank Book and Bank Statement)

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000.00

12 Confirmation Sent ( Banks, Debtors, Creditors ) C.S 000.00

13 Confirmation Obtained ( Banks, Debtors, Creditors ) 000. C00

Note: Use green pencil for ticking Use red pencil for referencing Use black pencil for lines and comparative figures Use blue pencil for current year figures

APPLICATION FOR ALTERATION IN MEMORADUM OF ASSOCIATION

The Deputy Registrar, Ref.No.CI-63/-of Companies, Dated:

Multan.

Subject: KARMANWALAY (PRIVATE) LIMITED- APPLICATION FORALTERATION IN MEMORADUM OF ASSOCIATION U/S

21.

Dear Sir,

It is submitted that our above mentioned client has passed a specialresolution to change its objects clause, subject to the approval of theSecurities & Exchange Commission of Pakistan. In this connectionfollowing documents/information are enclosed herewith:-

1) Name & address of the company : Karmanwalay (Pvt)Ltd.

10/68, Mian Channu

2) Number and date of incorporation : 0024975,Dated 29-08-1991

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3) Subscribed & Paid up capital : Rs. 1,460,000

4) Redeemable : N.A.

5) Business actually being carried on : Cotton inning

pressing &and the clauses in the Memorandum Oil Mills asPer clause

justifying it. 1& 2 of theMemorandum

of Association.

6) Reason for the proposed alteration : Annexed.

7) Special Resolution : Form-26 Annexed.

8) Statement in a comparative Form : Annexed.

9) Existing Memorandum & Articles : Annexed.of Association.

10) Amended Memorandum & Articles : Annexed.of Association.

11) Pattern of holding of its shares in : AnnexedForm 34.

12) Name and address of each of its : N.ACreditors. NOCs of creditors. :

13) Interest affected : NIL

14) Minutes of the Meeting : Annexed.

15) Particulars of dissenting shareholders : NILor creditors together with theirobjection.

16) Copy of latest audited accounts : Annexed.

17) Bank Challan for Rs. 10,000/- being : Annexed.application fee.

18) Affidavit : Annexed.

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It is requested that alteration in object clause of Memorandum of Association may kindly be confirmed and order may be issued at theearliest.

Yours faithfully,

FORM 26THE COMPANIES ORDINANCE, 1984

[Section 172]

SPECIAL RESOLUTION

Please complete in typescript or in bold block capitals.

1. Incorporation Number 0024975

2. Name of the Company KARMANWALAY (PRIVATE) LIMITED

3. FeePaid(Rs.)

1 0 0 0 Name & Branchof The Bank

MCB BANK, NISHTER CHOWKBRANCH, MULTAN

Day Month Year 4.Receipt

No.

Date 2 0 1 0

(Bank challan to be attached in original)Day Month Year

5. Date of Dispatch of notice

0 7 0 6 2 0 1 0

6. Specify the intentionto propose theresolution as SpecialResolution

To Insert New Clauses in Memorandum of Association

Day Month Year 7. Date of passing of

Special Resolution0 7 0 7 2 0 1 0

8. Total Number of Members 2 Representing 14,600 shares of Rs.100/- each

9. Members present in person and/or through proxy in the meeting

2 Representing 14,600 shares of Rs.100/- each

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10. Members voted for 2 Representing 14,600 shares of Rs.100/- each

11. Members voted against Representing -- shares of Rs. --each

12. At a general meeting of themembers of the said company,duly convened and held at

10/68, Mian Channu

(Mention the address)

13. Place (city) Multan

14. Text of special resolution(attach copy, if space isinsufficient to reproduce it)

--ATTACHED--

19. Date 0 7 0 7 2 0 1 0

FORM 34

THE COMPANIES ORDIANCE 1984(Section 236(1) and 464)

PATTERN OF SHAREHOLDING

Please complete in typescript or in bold block capitals.

1. Incorporation Number 0024975

2. Name of the Company KARMANWALAY (PRIVATE) LIMITED

3. Pattern of holding of the shares held by the shareholdersas at

4. No of shareholders

Shareholdings Total shares held

N.A. shareholding from 1 to 100 shares N.A.



N.A. shareholding from 1001 to 5000 N.A.

2 shareholding from 5001 to 10000 14600

N.A. N.A.(Add appropriate slabs of shareholdings)

2 Total 14,600

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15. Signature of Chief Executive/ Secretary

16. Name of Signatory Mehmood Ahmad Tariq

17. Designation CHIEF EXECUTIVE

18. NIC Number 3 6 1 0 4 - 9 4 8 5 7 3 6 - 9


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5. Categories of shareholders share held Percentage

5.1 Directors, Chief ExecutiveOfficer, and their spouse andminor children.

14,600 100

5.2. Associated Companies,undertakings and relatedparties.

N.A. N.A.

5.3 NIT and ICP

5.4 Banks DevelopmentFinancial Institutions, NonBanking FinancialInstitutions.

N.A. N.A.

5.5 Insurance Companies N.A. N.A.

5.6 Modarabas and MutualFunds

N.A. N.A.

5.7 Share holders holding 10% N.A. N.A.

5.8 General Publica. Local N.A. N.A.b. Foreign

5.9 Others (to be specified) N.A. N.A.

Note: In case there are more than one class of shares carrying voting rights, the information regarding eachsuch class shall be given separately.

6. Signature of Chief Executive/ Secretary

7. Name of Signatory Mehmood Ahmed Tariq

8. Designation CHIEF EXECUTIVE

9. NIC Number

Day Month Year 10. Date 0 7 0 7 2 0 1 0

3 6 1 0 4 - 9 4 8 5 7 3 6 - 9