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INTRODUCTION
1.1 INTRODUCTION ABOUT THE TRAINING
This training is a job oriented process which aim to develop special skills related to
the job. Through internship process effort is made to increase practical skill with theoretical
knowledge which student got in formal educational institute.
The period of training varies depending upon the nature of the job, size of the
organizations etc. For instance fresh engineering graduates or diploma holders are moved
from workshop to workshop to work with the seniors, before they are placed on a particular
job. This period varies from 10 days.
An internship is an agreement between intern and the organization for a fixed period
of time, where interns agree to work for them and they agree to mentor and teach them many
companies go on to hire their successful intern’s for full time employment.
1.2 ABOUT THE AUDITING
Usually origin of audit is traced to the middle ages, but infect the introduction of large
scale production gave birth to audit, after the industrial revolution during the 18th century.
In the beginning there was small-scale production was smaller; the technology was
simply and has a low capital. But with the passage of time, these things were all improved
and enlarged and thus proper checking of them became very much necessary in the audit.
Auditing Procedure
An audit planning i.e. an audit plans relating to extent and scope of an audit.
Developing the audit programme i.e. the procedure that are needed to implement the audit
plan.
Examination of the accounting system
Evaluation of internal controls
Simple checking of vouchers
Verification of assets and liabilities
Submission of auditor reports
Chartered Accountant firms render various types of services to their clients.
According to the types and nature of the clients. The nature of service also differs from firm
to firm, which includes corporate services, feasibility report, professional consultancy etc.
The firm is dealing with;
Auditing
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Taxation
Management consultancy service
Tax consultancy
Corporate services.
TECHNIQUES OF AUDITING
Following are the common techniques of auditing
Checking of posting and casting.
Physical verification of assets.
Verification and examination of transactions with available evidences.
Scrutiny of the books of accounts,
Checking of various calculations.
Checking of carried forward balances in next year.
Checking of Bank reconciliation statements.
1.3 OBJECTIVES OF THE STUDY
To get a practical knowledge about the auditing.
To know how the auditor will audit the accounts.
To identify the audit process.
To learn more than the theoretical knowledge.
To learn book keeping practices of different companies.
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CHAPTER – II
AUDITOR PROFILE
2.1 INTRODUCTION
CA.P.GIRIRAJ Chartered Accountant was established in the year 1993. It is a
leading chartered Accountancy firm rendering comprehensive professional services which
include audit, management consultancy, tax consultancy, accounting services, manpower
management, secretarial services etc.
CA.P.GIRIRAJ Chartered Accountant is a professionally managed firm. The team
consists of distinguished chartered accountants, corporate financial advisors and tax
consultants. The firm represents a combination of specialized skills, which are geared to
offers sound financial advice and personalized proactive services. Those associated with the
firm have regular interaction with industry and other professionals which enables the firm to
keep pace with contemporary developments and to meet the needs of its clients.
Contact No : 04259-226512
No of employees : 6
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2.3 ORGANIZATION STRUCTURE
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ORGANIZATION CHART
CA.P.GIRIRAJ
Chartered Accountant
Corporate
Professional Financial services
Consultancy analysis
Auditing
Senior Junior
Taxation Taxation
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CHAPTER – III
3.1 INTRODUCTION
All the offices constitute different number of departments who basically handle their
respective functions. The major departments include.
DEPARTMENT CHART
General Manager
Department
Financial Accounting
Accounting Valuation
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3.1.1 Audit and Assurance Department:
Firm provides audit and assurance services to wide range of clients which include
performing audits of financial statements of limited companies, NGOs and partnerships.
Firm also performs special assignments which include management audits, internal audits
and investigations. Audit focuses on business issues and the matters that can impact on the
financial statements, whilst also retaining the basic audit procedures that test the
information contained in the financial statements. Services are aimed to comply with the
legal requirements as defined under the various laws and regulations in India. In doing so
firm not only identify the non-compliances but also assists clients in its rectification,
designing remedial measures and provides guidance to adhere with the laws and
regulations. Firm always endeavour to meet reporting deadlines as set out by the laws and
regulations or as mutually agreed with clients, without compromising the professional, legal
and ethical requirements.
Firm emphasis on delivering high quality services to clients, adding value to their
business through identification of existing and potential control risks and suggesting best
possible measures in the given circumstances. Firm always place priority in deploying audit
teams to clients who are well equipped with the specific industry knowledge, experience
and are professionally sound.
3.1.2 Tax & Corporate Department:
Firm delivers taxation services to clients and assists them in obtaining optimal tax
benefits available under the laws. Firm also assist clients to comply with the tax rules and
regulations and always keep them updated with the latest developments and amendments.
Tax personnel are qualified professionals, experienced and knowledgeable. We maintain a
comprehensive tax library which always provides ready references and timely solution in
complex situations. Firm provides a comprehensive range of tax services which includes;
Preparation and submission of annual tax returns
Compliance services
Tax advisory services
Representation and litigation with tax authorities
Personal income tax services
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In CA.P.GIRIRAJ same staff is handling with tax matters as well as corporate
sector. While in corporate firm provides different kinds of services relating to corporate
sector from incorporation to winding up of a Company.
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3.1.6 Financial consultancy:
Finance professionals provide comprehensive financial advice and execution
expertise, encompassing mergers, restructurings, private placements, privatizations and
equity capital markets to clients ranging from corporations and financial institutions; adding
value for our clients throughout all stages of the process. Financial Consulting services
include the following:
Financial Performance Improvement
Financial Accounting
Accounting Valuation
3.1.7 Financial Performance Improvement:
It supports CEO’s, CFO’s, Controller and Treasurers to optimize the structure of their
Finance functions thus improving contribution to business. The structure our support to
ensure that Finance addresses the challenges of achieving appropriate standards of control,
efficient back office opportunities and support to the business through insight and challenge.
Recently, the emphasis of Finance has been control and efficiency characterized by a heavy
focus on compliance delivered through streamlined back office models.
3.1.8 Financial Accounting:
With the advancement in International Financial Reporting Standards (IFRS) for
many of our clients, financial accounting has become a lot more complicated. And if the past
few years are any guide, the future holds more regulations, new requirements, and an
increasing compliance burden.
3.1.9 Accounting Valuation:
International Financial Reporting Standards (IFRS) introduce significant changes to
the way that accounts must be prepared and presented, requiring a wider range of assets to be
valued on an annual basis.
Goodwill is now tested for impairment annually, and is marked down according to
the conclusions of that annual process.
These considerable changes call for specialist valuation services that both understand
the specific accounting implications and the wider commercial context in which those
accounting valuations will apply.
CA.P.Giriraj valuation services draw on considerable technical and financial
specialization, as well being able to access accounting specialists to deliver integrated
advice to our clients.
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3.2 FUNCTIONS
TAXATION:
The firm provides tax services to their clients. Some firms are specially deals in tax.
The client who needs the services regarding to tax pay fee for such services and the auditor
gives him a very useful service by the tax returns.
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3.3 OPERATION OF AUDIT
The audit was operated / conducted with the help of following techniques.
Vouching:
In vouching every transaction is checked with it documentary evidence. Documentary
evidence includes vouchers, invoices, and goods inward and outward notes, cash memos and
receipts. It is also checked that the transaction is authorized by a proper person having powers
to do so.
Verification:
When vouching is complete then the verification of assets and liabilities takes place.
Assets of the firm are verified by checking that if the assets are held by others then a letter is
written to them to verify their presence and their title. For confirmation of major debtors a
letter is written to them to confirm the balance due from them.
Ticking:
During the checking of various books, the entries that were checked were
marked/ticked with red pen indicating that the entry has been examined for certain purpose.
Variously shaped marks were used to denote checking of additions; postings carry forwards,
balances etc.
Posting Check:
Then it was checked whether the transactions are correctly and accurately posted to
ledger or not. Special care in checking posting to personal ledgers in needed as to names and
titles of accounts; otherwise a wrong posting may remain undetected.
Cross Checking:
It is the comparison of entries in two or more books or of an entry in a book with its
supporting evidence or voucher. My seniors assisted me in this step. Accuracy of cross
checking plays a vital role in the process of auditing. Therefore, it should be made with due
care.
Analytical Procedure:
After the end of the audit analytical procedure is adopted in order to confirm the
accuracy and correctness of the results obtained from above procedures, Profit and Loss
Account and Balance Sheet. In analytical procedure results are compared with prior period
results, ratios, expected results and industrial information. Any major difference is looked
into.
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3.4 OVERVIEW OF TALLY ERP 9
Journal entry
Journal Vouchers are used to adjust the debit and credit amounts without involving
the cash or bank accounts. Hence, they are referred to as adjustment entries.
Creating a Journal Entry
Journal entries are usually used for finalization of accounts.
To pass a Journal Voucher,
Go to Gateway of Tally > Accounting Vouchers
· Click on F7: Journal on the Button Bar or press F7.
For example, there may be entries made for interest accrued or interest due. If you have to
receive Interest from a party, the same can be entered using Journal Voucher.
1. Debit the Party
2. Credit the Interest Receivable Account
The Journal entry is displayed as shown:
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Allowing Cash Accounts in Journals
Journals are adjustment entries, which do not involve Cash account and Bank account.
However in exceptional cases where the user would like to account Journal entries involving
Cash/Bank Account, Tally.ERP 9 has the flexibility of passing such entries by enabling the
option under F12 configuration.
To enable Cash Accounts in Journal voucher,
· Set Allow Cash Accounts in Journals to Yes in F12: Configure (Voucher Entry
Configuration).
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CHAPTER - IV
FINDINGS, SUGGESTIONS AND CONCLUSION
4.1 FINDINGS
Employees need to ensure they are coding expenses to the proper general ledger
account.
All aspects of faculty or service operations should be clearly documented in an up-to-
date procedures manual.
Respondents confirmed that large audit firms cannot render auditing better than small
audit firms.
Only very exceptionally should expenses be allocated to the Miscellaneous General
Ledger expense account.
The chartered accountants perceived that rotation can enhance auditor independence.
4.2 SUGGESTIONS
They have good opportunity to introduce the ISO standards training program which
no other firm is giving to customer.
Try to adopt new technologies that their competitors are not using.
Make a network that allows its customers to negotiate with them easily.
In comparison of CA.P.GIRIRAJ auditing office with its competitors has an edge to
make an accurate and error free report.
The local economy continues to be strong and we believe our typical clients will
continue to flourish.
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4.3 CONCLUSION
CA.P.GIRIRAJ is overall one of the profit making and reputed firm of Pollachi. The
organization since its very first day is devoted to providing quality services. The detailed
and through review of work and clients’ trust shows the perfection with which it is
working.
The firm has earned a distinction of being placed in the category 'A' in the list of panel
of auditors maintained by State Bank of India. Moreover only these 'A' category firms can
audit of listed companies.
The Institute of Chartered Accountants of India has also carried out the Quality Control
Review and has issued satisfactory QCR report stating that the firm has conducted the
audits of the clients in accordance with International Standards on Auditing.
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