Professional Documents
Culture Documents
Contact#: 0305-5444431
Date of Submission: 16-10-2018
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To:
The Incharge internship Programme,
Department of Commerce,
Islamia University Bahawalpur,
Bahawalpur.
Respected Sir,
Yours truly,
Ahsan Akhter
Roll No. 29
BS Commerce
Session (2014-2018)
3
a
b
O GOD OPEN MY EYES
TO SEE WHAT IS BEAUTIFUL,
MY MIND TO KNOW WHAT IS TRUE,
MY HEART TO LOVE WHAT IS GOOD.
To My Beloved Parents
And
First step to talk……
To
All those from whom I learnt
Who always remains
In my heart
Through out the whole span of our life and are
nearest, dearest and deepest
to me.
c
d
I am very thankful to the following person who has given me enough
assistance and guidance and spare their valuable time for me during
my Internship Period.
e
Internship is the most important part of the BS (Commerce)
studies. In fact internship provides the opportunity to us to
implements our bookish knowledge in practice.
I am very thankful to all members of the Mian Naim Asif Rashid & co.,
for their sincere efforts and devotion for the preparation of this
report
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Synopsis:
This report contains a deep walk through in the field of audit, Tax
and Accounts. Audit is very important to keep a close eye on the performance of
the organization. It not only keeps check and balance but also protect the
stakeholders. Mian Naim Asif Rashid & co is one of the oldest firm in Lahore
indulge in the business of auditing. It not only audits the Accounts of the
companies but provide different type of other services as well. These services
may involve Accounts maintenance, Tax, Financial advisory Services and
Investment advisory services etc. It’s my pleasure to work in such a organization
where the real application of bookish knowledge. This report also contains the
different types of tasks performed by me. Although each and every can not be
learnt over night yet I have good experience audit firm. The conclusion part
determines what the learning was and how they are effective. In the last some
recommendations are given in respect to company. In the end of report some
annexure are attached including my work and some others.
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Me with my Principal Mian Naim and some colleaques in firm
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TABLE OF CONTENTS
Page No.
Chapter#1 Introduction 01
1.1 What is Audit? 01
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Chapter#2 Learning Review 15
2.1 Work involvement 16
2.2 Casting & Vouching 17
2.3 Annual Stock taking 18
2.4 Work on QCR 27
2.5 Verification 30
Conclusion 32
Recommendations 33
References 35
Appendix 36
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WHAT IS AUDIT?
Definition:
“An audit is the independent examination of financial information
of any entity, whether profit oriented or not, and irrespective of its size, or legal
form, when such and examination is conducted with a view to expressing and
opinion thereon.”
“The most general definition of an audit is an evaluation of a
person, organization, system, process, project or product”.
Audits are performed to ascertain the Validity; the term validity
(also called logical truth, analytic truth, or necessary truth) as it occurs in logic
refers generally to a property of particular statements and deductive arguments.
And also provide an assessment of a system's internal control. The
goal of an audit is to the person / organization / system etc. under evaluation
based on work done on a test basis. Due to practical constraints, an audit seeks
to provide only reasonable assurance that the statements are free from material
error. Hence, statistical sampling is often adopted in audits.
The word audit has two meanings. The first is the security audit, whereby a
consulting firm comes in and validates a company’s 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.
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A person trained and qualified to better individuals through
auditing is called an auditor. Auditor is defined as “one who listens,” from the
Latin audire, meaning “to hear or listen.”
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Types of Audit
Quality Audits:
Quality audits are performed to verify the effectiveness of a
quality management system. This is part of certifications such as ISO 9001.
Financial audits:
Financial audits, a set of financial statements are said to be true
and fair when they are free of material misstatements - a concept influenced by
both quantitative and qualitative factors.
Internal audit:
This type of audit is conducted by the company itself to keep
check and balance on company performance. It is up to company either he can
conduct internal audit or not.
Types of Auditors:
There are two types of auditors:
Internal Auditors:
Are employees of a company hired to assess and evaluate its
system of internal control. To maintain independence, they present their reports
directly to the Board of Directors or to Top Management. They provide
functional operation to the concern. Internal auditors are employees of the
company so that they can easily find out the frauds and any mishappening.
External Auditors:
Are independent staffs assigned by an auditing firm to assess and
evaluate financial statements of their clients or to perform other agreed upon
evaluations.
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What is Chartered Accountant?
Chartered Accountant:
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Major Audit Firms In Lahore
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Mian Naim Asif
Rashid & Co.
(Chartered Accountants)
(1982)
History:
Mian Naim Asif Rashid & co is one of the oldest Audit firm in
Lahore engaged in the business of auditing, Taxation, Account maintenance as
well as it is contributing in the field of audit and accounts by encouraging their
trainees and making them perfect in their related field of audit and accounts.
The origins of Mian Naim Asif Rashid & co. 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. Mian Naim
is a Chartered Accountant and has registered himself as “FCA” in Institute of
Chartered accountants of Pakistan. As one of the leading accounting practicee in
Pakistan in term of clients, staff and annual turnover, Mian Naim Asif Rashid &
co. Chartered Accountants is well placed to offer a high quality service and wide
range of expertise.
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Mian Naim Asif Rashid & co. Chartered Accountants the member
of ICAP in Pakistan is one of the country’s leading professional services
firms. With Clients located across the Pakistan, Mian Naim Asif Rashid & co.
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
Mian Naim Asif Rashid & co 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.
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List of Clients
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Services
We are one of the leading providers of audit, risk advisory, tax and
financial advisory services in Pakistan. With a global approach to service delivery,
we respond to clients' complex business challenges with consistent
methodologies and common tools to provide services across industry sectors
and national boundaries.
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Types of Services:
Audit
• External Audits
• Special Audits
• Statutory Audits
• Internal Audits
• Income Tax Audits
• Human Capital
• Internal Audit
• Outsourcing
Tax
• Corporate Taxation
• Personal Taxation
• Indirect Taxes
Corporate Finance
Restructuring
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Audit
MIAN NAIM ASIF RASHID & CO CHARTERED ACCOUNTANT’S Audit
practice helps organizations and individuals achieve their objectives and succeed
in the new economy through measuring performance, managing risks, and
leveraging knowledge. Our proprietary software tools and knowledge-based
applications bring the power of knowledge to your audit. Our professionals are
equipped with comprehensive information on industry trends and the business
issues that increase risk to your organization.
We staff each engagement team with professionals who possess
the knowledge, skills, time and experience to perform the engagement. Our
ability to deliver a quality audit depends on our team's strong understanding of
the business processes, accounting policies, internal controls, and financial
reporting issues specific to your industry and your organization. Our engagement
teams include industry-experienced audit professionals and subject matter
professionals who can actively participate in areas requiring special knowledge,
skills, or tools.
MIAN NAIM ASIF RASHID & CO CHARTERED ACCOUNTANTS Audit Methodology
guides our professionals in delivering rigorous audits of your financial
statements.
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.
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Risk Advisory Services
Advisory services include:
In Pakistan, our consulting practice offers a broad suite of services and solutions
including:
• Human Capital
• Internal Audit
• Investment Advisory Services
• Outsourcing
• Human Capital
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Our Services Include:
• Complete or partial outsourcing (co-sourcing) of internal audit
departments
• Review and restructuring of internal audit department
• Designing the charter for the Audit Committee and Internal Audit
Department
• Developing risk based internal audit approach based on guidelines
issued by Basel
• Designing detailed audit programs and checklists covering banking
risks.
Methods:
• Sensitivity analysis
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Financial Advisory Services
• Restructuring
• Transaction Services
• Forensic Services
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Our Services Include:
• Corporate and individual tax planning
• Compliance services including preparation of income tax and sales
tax returns
• Representing clients before tax authorities and assisting legal
counsel in preparing appeals to the higher courts
• International Tax Consultancy including tax on international
transactions and advising on double taxation treaties
• Assisting with sales tax matters including registration, de-
registration and assessment
• Establishing gratuity funds, provident funds and other employees
benefit schemes and their approval from tax authorities
• Providing general tax advice based on current and evolving laws
and rulings.
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Learning Insight:
What done?
Not only that I also learnt how to make your own space in the
organization and how to capture the people.
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Works Involvement:
1. Vouching
• Tech Housing Society
• Lahore Race Club
2. Annual Stock taking and Cutoff procedures of the Client
Companies
3. Verification
• Tech Society
• Tasha Trust
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Vouching:
As I have joined the organization where the audit work was going
to start the very first step in audit is to check the physical appearances of stock
and all things related to audit. For this purpose teams were formed and assigned
them the organizations. Different types of documents are used for stock taking
which are in appendix.
I with my senior member Mr. Abdul Mannan was to visit the firm:-
• Curatech Pharma Pvt. Ltd.
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Necessary Documents:
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Work on TECH
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Tech Housing Society
Requirements
For the Audit Year Ended June 30, 2015
Verification
Every kind of supporting document is attached to the voucher and
then the vouchers are put back in any file where these can easily and readily be
traced out.
While vouching, we are supposed to verify that all the entries are
properly verified.
And many more.
In my visit to Tech Society I have verified certain vouchers related
to Expenditures, etc. and I have also verified the tax payments, vouchers of inter
SES in connection to direct tax deductions.
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Issues in Accounts
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My Observations:
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Some Pictures Affecting the Performance:
These all things are frustrating the employees and affecting their
performance which is ultimately go against the organization goals.
Being a part of the organization part I would like to recommend
some suggestion which in my opinion is helpful in solving problems and
increasing the efficiency of the employees.
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To whom it may be concerned:
I have also take help from internet for my guideline and learning purpose,
http://www.charteredaccountants.com.
http://www.fbr.com
http://www.icap.com.pk
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SIGNIFICANT AUDIT TICKS
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
Reconciliation ( Bank Book and Bank
10 000.00
Statement)
Subsequent Clearance ( Bank Book and Bank
11 000.00
Statement)
12 Confirmation Sent ( Banks, Debtors, Creditors ) C.S 000.00
Confirmation Obtained ( Banks, Debtors,
13 000.C00
Creditors )
*
Use green pencil for
1 ticking
Use red pencil for
2 referencing
Use black pencil for lines and comparative
3 figures
4 Use blue pencil for current year figures
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