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INDUSTRIAL TRAINING AT GLOBAL RICH

CORPORATE ADVISORY SDN BHD, JOHOR

SAH PEI YING

UNIVERSITI MALAYSIA TERENGGANU


2016

INDUSTRIAL TRAINING AT GLOBAL RICH CORPORATE ADVISORY SDN


BHD, JOHOR

BY
SAH PEI YING

AN INDUSTRIAL TRAINING REPORT SUBMITTED IN PARTIAL


FULFILMENT OF THE REQUIREMENTS IN DEGREE OF BACHELOR OF
SCIENCE (FINANCIAL MATHEMATICS)

SCHOOL OF INFORMATICS AND APPLIED MATHEMATICS


UNIVERSITI MALAYSIA TERENGGANU
2016

DISSERTATION CONFIRMATION AND APPROVAL


This is acknowledged and confirmed that industrial training report entitled: Industrial
Training At Global Rich Corporate Advisory Sdn Bhd, Johor by Sah Pei Ying,
Matric No.: UK31445 have been checked and all the suggested corrections have been
done. The industrial training report is submitted to School of Informatics and Applied
Mathematics in partial fulfillment of the requirements for the award of the degree of
Bachelor of Science (Financial Mathematics).
Authorized by:

.....................................................
Supervisor University Malaysia Terengganu
Name: Profesor Madya Dr Sabri Ahmad
Official Stamp:

......................................................
Supervisor Organization
Name:
Official Stamp:

Date: ...........................

Date: ...........................

ACKNOWLEDGEMENTS
At the end of this internship, I would like to thank all those people who assisted me
along the way and made this internship enjoyable experience for me.
First of all, I would like to thank Mr Ching Woon Loong, the Managing Director of
Global Rich Corporate Advisory Sdn Bhd, for giving me chance and opportunity to
work in his organization in order to complete my three month internship session.
Besides, I would like to extend my appreciation to both my industrial supervisor, Chai
from Global Rich Corporate Advisory Sdn Bhd and Profesor Madya Dr Sabri Ahmad
from Universiti Malaysia Terengganu. Under their guidance and advice, I am able to
apply theories learned in Universiti to real life situations at the workplace and
complete this report on time.
Furthermore, I would also like to express my sincere gratitude to Dr Roslan Hasni and
Dr. Fatimah Noor binti Harun as the programmes industry coordinator for their
coordination effort for every industrial training student.
At last, I would also like to thankful to my family and my friends for their moral
support and emotional understanding. Their support and love are motivation to me to
complete this task.

EXCECUTIVE SUMMARY
I had undergone my industrial training at Global Rich Corporate Advisory Sdn Bhd at
8B, Jalan Anggerik 1, Taman Kulai Utama 81000 Kulai, Johor from June 20, 2016 to
October 8, 2016. My working days were 5 days from Monday to Friday and working
hours were from 9.00am to 6.00pm.
During my industrial training, I was placed in accounting department. During my time
there, I handle accounting transactions and bookkeeping tasks. My common duties
include key in the data into the system, which included the sales, purchases and
expenses account and bank reconciliations. Besides, I was required to report the
financial statement to manager in charge. Since Global Rich Corporate Advisory Sdn
Bhd is a medium-sized company, I handle the entire accounting process regarding
accounts of clients. This enables me to require better understanding and more insights
about the complete accounting cycle. Besides, for those company which has registered
for GST, I also need to report the company income tax every three months.
Sometimes, I need to handle other ac hoc duties as assigned such as consolidated the
company financial statements by using excel and handle the income tax. I had learnt
two of the best accounting software, which are UBS Sage system (write details which
name) and Autocount system.
About my mini project,
Over the course of my industrial training here, I was given great opportunities to work
close with insightful individuals. My superiors and colleagues are both helpful and
thoughtful in making me one of the team. Assignments were tough but there were
always guidance. This is truly a very conducive platform for any student to develop
their skills and step into the working environment. Some companies require
employees have experience with certain accounting software programs. Experience
with Microsoft Word, Excel and Access is also beneficial.

CONTENTS
Page
TITLE
ACKNOWLEDGEMENTS
EXCECUTIVE SUMMARY
CONTENTS
LIST OF FIGURES
LIST OF SYMBOLS
LIST OF ABBREVIATIONS
CHAPTER 1 INTRODUCTION OF THE ORGANIZATION
1.1 Introduction of Organization
1.2 Core Business
1.3 Chart of Organization
1.4 Location of Organization
CHAPTER 2 MINI PROJECT
2.1 Introduction to
2.2 Job Responsibility
2.3 Problem Statement
2.4 Objectives
CHAPTER 3 EXPERIENCE AND SKILLS ACQUIRED
CHAPTER 4 PROBLEM AREAS
4.1 Lack of Knowledge And The Theory To Be Improved
4.2 Lack of Skills To Be Improved
4.3 Communication Skills To Be Improved
CHAPTER 5 SUMMARY
REFERENCES

CHAPTER 1

INTRODUCTION OF THE ORGANIZATION

1.1

Introduction of Organization

This intensive industrial training began on 20th June 2016 and and ends on 8th
September 2016. The name of the company in which I had undergone industrial
training is Global Rich Corporate Advisory Sdn Bhd. It is situated at 8B, Jalan
Anggerik 1, Taman Kulai Utama 81000 Kulai, Johor. The contact number is 076626640.
Global Rich Corporate Advisory Sdn Bhd is a young dynamic chartered accountants
group providing wide range of services in the field of Accounting, Audit and
Assurance, Taxation and Corporate Secretarial for clients particular in small and
medium enterprises (SMEs) and Multi-Nasional Companies (MNCs).
1.2

Core Business

The services required for the operating business embody the following:
a) Accounting And Management Reporting
Outsourcing of accounting function is gaining more popularity nowadays in
Malaysia especially among SMEs. It not only can save on administrative cost,
but the management can focus on their businesses for more profit. Global Rich
Corporate Advisory Sdn Bhd are able to provide an efficient outsourcing
facility for many of the periodical reporting of businesses. Global Rich offer
the best services from routine bookkeeping function and producing
management accounting to review and improve current accounting system of
the businesses.
b) Audit And Assurance
All Malaysian private limited companies are required to be audited for
statutory filing to Companies Commission of Malaysia (CCM). Global Rich
have the know-how and the resources to provide a broad range of assurance

services and solutions that deal with all areas of financial performance and
regulatory requirements.
c) Tax Compliance
Malaysia is applying Self-Assessment System (SAS) for tax reporting within
its jurisdiction. The return form (be it form B/BE for individual tax payers of
form C for corporate tax payers) that submitted is deemed final and deemed as
notice of assessment, in which case the tax payers are required to pay their
final balance of the tax to the Inland Revenue Board before pre-determined
date. Thus, it is essential for each tax payer to know their liability as and when
due.
Under the SAS, each corporate tax payer is required to furnish an estimate of
tax payable not later than 30 days before the beginning of the basis period for
a year of assessment and make payment based on the estimated tax payable.
By appointing Global Rich as your tax agent, Global Rich provide proactive
tax service to assist you not only to comply all the tax obligation, but also to
improve your companys cash flow by proper tax planning.
d) Company Secretarial Services
It is a must for all companies to have their statutory files maintained by
qualified Company Secretary as well as to prepare and submit annual return on
time to the Company Commission of Malaysia. His service includes draft all
necessary notices, act as nominee directors and advising clients regarding
company secretarial matters.
e) GST Registration And Reporting
Global Rich has considerable experience to assist clients to apply for
registration and reporting for GST when such need is required.
f) Company Search And Striking Off Company In Malaysia
Global Rich can help clients to gather financial information of the companies
clients required from Companies Commision of Malaysia with provision of
the company name and company registration number. Global Rich also help
clients to strike off a dormant company under section 308 at reasonable fee.
1.3

Organizational structure

1.4

Location Of Organization

There are 2 firm, one is located in Kulai and the other one is located in Bukit Indah.
During my internship, my working location is situated at 8B, Jalan Anggerik 1, Taman
Kulai Utama 81000 Kulai, Johor.

Figure 1.1: Global Rich Corporate Advisory Sdn Bhd Google Maps location

Figure 1.2: Global Rich Corporate Advisory Sdn Bhd Street View

CHAPTER 2

MINI PROJECT
2.1

Introduction to Mini Project

This mini project applies the concept and theories learnt from the courses studied in
UMT. In this section, I will introduce the regression analysis as an auditing tool and
illustrate its usefulness in assist in risk assessment procedures. Audit is a systematic
and independent examination of books, accounts, statutory records, documents and
vouchers of an organization to ascertain how far the financial statements as well as
non-financial disclosures present a true and fair view of the concern. Basically, when
performing audit, auditors will use risk assessment procedures to assess the risk that
material misstatement exists. This step is very important because the whole point of a
financial statement audit is finding out if the financial statements are materially
correct.
The common analytical procedures while assesing audit risk is trend analysis and ratio
analysis. While statistical methods like regression analysis in general have proven to
be very useful in determining whether financial statements are materially mistated.
2.2

Objective

From this mini project, there are two main objectives that are to be achieved:
i.
To apply the theoretical concepts learnt from UMT into a real life setting
ii.
To introduce regression analysis as an analyzing and auditing tool to assessing
the risk of material mistatement.
2.3
Problem Statement
In these few months I stay in the company, I have observed a minor issue in which
staff in our company always work overtime because they always meet the tight
reporting deadlines. With the hope of limit the effort in auditing and reduce their
work, I hope to use the regression analysis to elaborate on how it works as part of a
financial statements audit. Thus, it able to reduce the time of being audits and assist
provide a clear and fairful audit.
2.4

Brief Methodology

This projects applies the concept of regression analysis to audit the financial
statements of Pusat Membaiki Kenderaan Lily. In this mini project, I will use the
regression analysis to predict data based on past relationships between two or more
variables. The historical relationship between these variables (one dependent variable
the item we are auditing- and one or more independent variables) is defined by using
linear regression. The expected values of the current years dependent variable are
then compared to the actual values, and the significance of the differences is
evaluated.
2.4.1

Linear Regression

Linear regression attempts to model the relationship between two variables by fitting
a linear equation to observed data. One variable is considered to be an explanatory
variable, and the other is considered to be a dependent variable. A linear regression
line has an equation of the form
Y =a+ X
where
X : explanatory variable
Y
: dependent variable

: slope of the line

: intercept (the value of y when

2.4.2

The Least Square Estimation

x=0 )

The most common method for fitting a regression line is the method of leastsquare.
Let b denote point estimates of the parameters

in the linear regression, so we

have the point prediction


^y i=a+ bX
This method calculates the best-fitting line for the observed data by minimizing the
sum of the squares of the vertical deviations from each data point to the line.
For i=1,2,, , n , the residuals of the regression are defined as
e i= y i ^y i
where
yi
: obeserved value of dependent variable
^y i
: predicted value of dependent variable

The predicted value

^y i will faily close to the observed value

y i if any particular

values of b are good point estimates.


2.4.3

R Square

The multiple coefficient of determination is denoted by


the total variation in the

R2 . It is the proportion of

observed values of the dependent variable that is

explained by the overall regression model.


^y i
n

( y i y )2
i=1
n

( y )2
i=1

R2=
where
y
: mean of observed value of dependent variable
yi
: observed value of dependent varible.
^y i

: predicted value of dependent variable.

2.4.4

Steps

Regression analysis as part of a financial statements audit consists of three phrases:


a) Planning
- Determining the dependent variable and independent variables.
- Collecting data: both historical data for use in developing a regression
model, and the current data.
b) Model buiding
- This phrases includes entering the data and having a tool build the
statistical model, produce the predicted values and perform a comparison
with values.
c) Audit Interface
- Checking the relevance and the quality of the model
- Determining the remaining audit evidence needed (If data obtained from
the client does not deviate from the developed model, then auditors can
abandon the risk assessment stage and perform traditional further audit; If

deviations are detected, the auditors must found out more evidence to
determine whether these deviations are material in either their amount or
nature to ascertain that a material misstatement does not exist relating to
the completeness, existence and accuracy of the recorded sales)

2.5

Results

For the purpose of this analysis, income statement data refecting operations during the
years 2011 to 2014 was gathered from the Pusat Membaiki Kenderaan Lily. Net sales,
cost of goods sold, gross profit were extracted from Pusat Membaiki Kenderaan Lilys
financial statements to reflect reported results. Regression analysis will be developing
and subsequently confirming expectations. The results is analyzed by using excel.

2.5.1

Results Time Trend Predicts Gross Profit

Planning
In my first regression analysis in excel, gross profit represents the dependent variable
and the time trend is the independent variable.

Year
1 (2011)
2 (2012)
3 (2013)
4 (2014)
5 (2015)

Sales (RM)
200000
214000
233250
255000
269000 (the item
we want to audit)
Table 2.1

Model Building
By using the historical sales data from year 2011 to year 2014 as shown in the Table
2.1, we want to develop a regession model and investigate the relationship between
year and the sales. Figure 2.1 showed the results of the regression analysis between
the gross profit and the time trend. First of all, the coefficient of determination in
Figure 2.1 indicates that about 99.10% of the variability in gross profit is caused by
the time factor. Therefore, a very strong relationship exists between the variables. The

time coefficient suggests that gross profit grows by approximately RM18425 every
period.
SUMMARY OUTPUT
Regression Statistics
0.99549
Multiple R
6
0.99101
R Square
3
Adjusted R
0.98651
Square
9
Standard
2774.32
Error
4
Observation
s
4

ANOVA
df

SS

Regression

1.7E+09

Residual
Total

2
3

15393750
1.71E+09

Coefficie
nts
Intercept
Time

Standard
Error

179500

3397.839

18425

1240.716

MS
1.7E+0
9
76968
75

F
220.53
15

t Stat
52.827
69
14.850
3

P-value
0.0003
58
0.0045
04

Figure 2.1

Significa
nce F
0.004504

Lower
95%
164880.3
13086.63

Upper
95.0%
194119.722
9
23763.3680
2

Sales Versus Time


300000
250000
200000
200000

214000

233250

255000

150000
100000
50000
0

Year

Sales

Linear (Sales)

Figure 2.2
Figure 2.2 provides us with additional information about the trend that gross profit
followed from 2011 to 2014. Based on the relationship gross profit has with net sales,
it is reasonable to expect gross profit to follow a trend similar to Figure 2.2. Hence the
regression model that build can be used to forecast the sales in year 2015. After the
sales in year 2015 is forecasted, it is used to compare with the actual value of sales in
year 2015 and see whether the actual value falls in the acceptable deviations at the
given level of material misstatement risk. The results is used to evaluate the level of
risk of material misstatement.
Audit Interface
On Figure 2.1, the confidence level is set as 95% percent confidence interval, which
provides us with a relatively high probability that the actual gross profit values will
fall within the established value range.
Year

Predicted
Value

Low

High

Actual
Value

Within Range

2015

271625

230313.45

312936.53

269000

Yes

Table 2.2
Based on Table 2.2, it was shown that the actual value of sales obtained from the
client does not deviate from the developed model. So auditors can abandon the risk
assessment stage and focus on performing traditional further audit procedures.
2.5 Additional skills required
After the completion of this mini project, I have acquired a further in-depth
understanding of the regression analysis. It has enhanced my mastery towards
analysing the financial statements towards audit risk by using regression analysis.
2.6 Conclusion
This mini project aims to illustrate the potential of regression analysis in reduce the
amount of time spent on evaluating internal controls and allowing auditors to focus on
the higher risk areas. The auditors in the Pusat Membaiki Kenderaan Lily can perform
comparisons of actual data to the models that I have developed, and use the results to
evaluate the level of risk of material mistatement. The results from this analysis can
make a contribution in limiting the effort to audit the completeness, existence and
accuracy of the account balance.

CHAPTER 3

EXPERIENCE AND SKILLS ACQUIRED


3.1

Summary of experiences and skills required

Over the course of my industrial training here in Global Rich Corporate Advisory, I
have acquired a range of experience and skills.
These three months practical training was only an introduction to see and have
experience in conducting the task given by them. To equip ourselves with better of
knowledge, we should work under the accounting firm at least 2 years.
Besides, I was managing ad-hoc duty assigned from time to time.

3.2

Relation to theory in UMT programme

Course that were studied during my degree at Universiti Malaysia Terengganu were
slightly relevant to my job responsibility during my industrial training. Below is a list
of courses that have connection with my internship programme.
1)
2)
3)
4)

3.3

MTK 3501 - Statistic Forecasting given the skills to time series forecasting.
MTK 3400 - Statistic given the skills to analyze.
ACC 3100 - Business Accounting given the knowledge about accounting.
BBB 3101 - Academic Writing Skills given the skills to prepare report.

Acquired knowledge that helped in training

During semester 2 in my university life, I have learnt the subject Business


Accounting. This subject have enables me to learn some of the basic accounting terms
which include revenues, expenses, assets, liabilities, income statement , balance sheet
and statement of cash flows. The concepts from this course have given me a general
exposure of how to re-apply its concept to accounting software.

3.4

Students contribution to organization

The scope of work that have been done by me in three month of practical training in
Global Rich Corporate Advisory Sdn Bhd are covered into two categories that are:a) Accounting And Management Reporting
b) Admin
The main job that I do during my practical training is performs the data entry tasks by
using UBS Accounting System and Autocount System. This includes entering the
sales, cost of goods sold, expenses and do the bank reconciliation. I had handled few
companies by my own but senior will takes over the things that I left off. They will
prepare adjusting entries to record expenses that occurred but not yet entered by me.
Here, I made list of company that I do by using the UBS Accounting System or
Autocount system. They are:
1)
2)
3)
4)
5)

Pusat Membaiki Kenderaan Dasin Sdn Bhd


Hong Transportation & Warehouse (M) Sdn Bhd
Chong Yit
Raz Bina & Enterprise
Hi Tech Precision Mould Engineering

Besides, I also assist in the other ac-hoc duties such as consolidate the company
financial statements by using excel, checking the passport of the foreigners, arrange
the bank statements according to the year and date, and bind the documents.
As a temporary employee of Global Rich Corporate Advisory, I am able to reduce the
workload for the staff as well as reaching the deadline for the project on time.

3.5

Organizations contribution to student

Being an internship students in the Global Rich Corporate Advisory Sdn Bhd, the
organization have given me plenty of learning chances under Accounting Department
apart from fulfill the graduating requirements of the Financial Mathematics field. By
handling the company accounting function, I have better understanding of the
accounting and financial knowledge that I have learnt in UMT.
Besides, I have improved a lot of my soft skills such as time management, initiative,
independent learning and work attitude. For time management, since the GST
submission is required to made for every three month, so accurate preparation and

reporting of monthly financial statement in strict accordance to company deadlines. I


have learnt how to work under pressure and manage the time properly in order to
complete my tasks within the deadlines. Besides, since my supervisor and other staffs
are always busy doing their work, so they have no much time to teach me one by one.
They allow me to learn independent and complete the task on my own. However,
whenever I face the problems or any questions during my work, they will always be
there and guide me properly.

3.6

Communication network conducted

Along my internship period here in Global Rich Corporate Advisory Sdn Bhd, the
staffs (direct/indirect colleagues, senior, supervisor and boss) are very friendly and
helpful.
I am only one of the trainee in this company. Everyday, I need to communicate with
the senior in order to complete the task. The staffs here would not hesitate to assist me
whenever I have question in mind. Although they have some busy time especially
during the end of GST submission period, but they will asked me to do other things
first and will answered my questions once they are free. Besides they will also often
invited me to join them for the lunch, offer me snacks and drinks to show their
hospitality. These relationships with colleagues had boosting my spirit and makes me
feel like one part of their family, not as a stranger who work only 3 months.
In addition, my boss is a very dedicated and nice person. He often treat us for lunch
and bought the breads to us. Even he go for a trip with his family, he also not forget to
brought the souveniors to us. My boss also organized the BBQ gathering at his house
to strengthen the staffs relationship. He has invited both the staff in his companies
which are from Bukit Indah and Kulai to join him. He rented the BBQ equipment and
bought a lot of food which includes meat balls, bacon, fishes and drinks. I had also
introduced myself and commmunicated with the staff in Bukit Indah through the
gathering. At the same time, the BBQ gathering helped me to get to know more
acquaintances.

CHAPTER 4

PLOBLEM AREAS

4.1

Lack of knowledge and theory to be improved

For doing an intern in accounting firm, bookkeeping is daily routine for me. However,
the lack of accounting knowledge and lack of understand of the source documentary
were a trouble issue. These issues have hindered me from being able to complete my
assignments effectively in a timely manner. For example, in order to key in the data
into the system, I need to understand which chart of account they belongs to. However
sometimes I am facing the problems in interpret and analyze the source documentary.
Besides, sometimes there are many chart of account and I am confusing about it. I
also need to consume more time than other peoples when key in the data into the
system.

Apart from that, GST have been introduced in Malaysia starting from 1 April 2015.
With the introduced with GST, it makes the accounting function more complicated.
For example, we need to familiar with the meaning of each tax codes before key in the
data into the system. Within our degree stucture, we were only taught of the
fundamentals of accounting and financial management. We did not go deep enough
the taxation.
4.2
Lack of skills to be improved
During the internship, the lack of mastered the Autocount software have been a main
problems for me. In my company, the software used are the UBS Sage system and
autocount system. For the company that do not registered for GST, UBS Sage system
is used while Autocount is used for the company that registered for GST. Since I am
not fully understand the Autocount, I had to spend more time to understand how to
work around the functions provided in the Autocount.
The other skill that I lack of is detail oriented skill. A lot of accounting is about paying
attention to the little details. We must be very sentive towards the figures. Sometimes
I will miss out some of the details or make a mistake towards figures. But luckily I

can make an admendments towards my error when I check back all the data I key into
the system.
4.3
Communication skills to be improved
As an intern in Global Rich Corporate Advisory Sdn Bhd, I had some problem issues
in communicating with colleagues and supervisor effectively. Sometimes I could not
understand well in some specific terms as I am not accounting students. So I had to
ask for further clarification from my supervisor and colleagues to solve my doubt.
Besides, sometimes I am also not able to express myself concisely till my colleagues
not understand the exact questions I want to ask.

CHAPTER 5

SUMMARY
For 12 weeks of industrial training in the Global Rich Corporate Advisory Sdn Bhd,
there are many things that I have experience and learned. My overall training is
considered good, and I am considered as very lucky person because some of my
friends just perform works that they dont have to do or do not related to their
academic programme at all but I have more things to learn from day to day.
The department that I was attached are accounting. I had the practical work
experience under senior Miss Hui Ying because my supervisor had took the 2 months
of maternity leave. Miss Hui Ying is a good mentor because she will explains to me
first before I started a new set of company account. She allows me to learn
independently but she will also answer my questions and clear my doubt whenever I
need the assist. Besides, whenever I done a company account, she will checking the
company account that I done and ask me to do the correction to prevent any mistakes
and enables me to understand the error that I commited. This kind of training is well
structured and organized.
Since I am a student that majoring in Financial Mathematics, sometimes I am really
blur about the accounting because I do not have a deep knowledge about it. However
this did not effect my excitement and focus on the ongoing training period. From the
task given by mentor, I able to get a better understanding about the accounting process
and concepts. I am happy to have been able to take this valuables opportunity to
explore and experience new dimension of work in this industry.
Besides knowlege and experience, I also able to improve my communication skills
and soft skills. All the training task involved interaction and need me to communicate
with the superior and colleagues. Involvement in a working environment enables me
to have a better self management comparing to the studied life. I am able to improve
my time management, more punctual in work and meeting task deadline. I also
learned how to wear appropriate attire to work and manage my apperance well.

The stimulating learning environment has enabled me to understand that what we


studied in university is really helpful when we enter to working life. We often do not
appreciate the information brought by the subject when we are studying because we
do not know how to apply theories learnt in lectures to the actual workplace. When
enter to working life, all those information become useful for us to implement.
In a nutshell, this industrial training is very good to students as it offers students at
UMT the opportunity to receive professional exposure for a fixed period of time.
Besides, it enables student to reap specialised experience and training in a genuine
work environment. From the direct involvement I am now able to familiarize and
have a clear idea about the real working world that will enter after my graduation.

REFERENCES

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