Chapter one

1.1 Introduction
Only theoretical knowledge is not enough to survive in the modern era corporate world.
In order to collaborate between practical and theoretical knowledge our university
influence us to take an internship program. Internship program is where students can
gain soft skill in real scenario and experience of the practical and professional world.
Thus, we are required to take an internship program in any organization.
An internship is an opportunity for a student to choose between various careers they
want to peruse. As from the very beginning I have aimed to peruse Chartered
Accountancy after completion of my bachelor. Slowly but steady I continued to dealt
with my vision and clear my way to goal. In the process of graduating from Pokhara
University, I choose “Sudin & Associates” to complete my internship program which is
one of the top most Charted firms in Chitwan. Through my internship program gave me
the opportunity to gain practical knowledge on how an accounting firm operates in
reality. Moreover, it is being a great opportunity for me to work in a Chartered firm
which serves and provides a huge number of clients all over the Chitwan.
This study gave me an opportunity to know and observe the procedures of auditing. I
was assigned as an audit student of Sudin & Associates and was engaged for the audit
of Ocean motor and Delight Lifestyle Company, which was provided by my firm. The
report will brief my gathered practical experience on audit procedure.
1.2 Objectives of studying the organization
Internship program are required to develop the working knowledge by relating it to the
theoretical knowledge that we learned in the process of completion BBA Program.
There is a huge difference between reality and bookish knowledge. In reality theoretical
aspect is not always applicable. Hence, to minimize the difference it is essential to work
in an organization. Moreover, internship is a pre-requisition for completion our
graduation from
Pokhara University:
The purpose of this internship placements are:
 Internship provides an intern with first time working experience.
 Internship enables us to relate our theoretical knowledge with practical knowledge.
 Internship helps to adjust an intern with the organization’s atmosphere.

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 Internship helps to structure our confidence with in an intern to become a successful
employee.
 Internship enables to have an overall idea on the audit procedure of Sudin & Associates
Chartered Accountants.
1.3 Overview of the organization
1.3.1 Brief history
Sudin & Associates is one of the top and old professional services firms in Chitwan. For
about 5 years, Sudin & associates has provided high-quality financial, taxation and
management services to a diverse and successful client base operating across various
industry and business segment. It started its practice in this vision in 2072 under the
name and style “Sudin & Associates". Since then, as an innovative and highly
professional public accounting and consulting firm, Sudin & Associates serves as
trusted auditor and valued advisor to over 250 clients by delivering objective, clear and
practical advice to assist their client’s growth and succeed in their chosen field. Sudin &
Associates is uniquely positioned to impart quality, cost-effective and practical advice
to clients that include Big corporations, private businesses, governmental entities,
emerging or start-up firms, coupled with the personal relationship, value-based fee
structure and service continuity.
Table 1.1 Firm profiles:

Name Sudin & Associates

Address By-pass road, Bharatpur-11, Chitwan , Nepal
Phone number 0977-056-229379
Email sudingiri@gmail.com

Mission
 To excel our relentless efforts for the steady growth of our clients.
 To keep pace with global growth and development in technology and professionalism
with high ethical standard.

Vision

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Uphold reputation and recognition as one of the best professional service providers in
this region.

1.3.2 Nature of organization and product line

Sudin & associates helps their clients to keep pace with competitive and fast moving
business environment, Sudin & associates offers wide range of services. Its expertise
extends into different areas of financial, taxation, management and advisory matters. It
also renders services to national development agencies associated with various projects
in Chitwan.

Table 1.2 Most of the common areas of services are:

Audit and Assurance Fiscal and Taxation

Special Purpose Audit/Review Corporate Tax
Agreed Upon Procedures Work. Value Added Tax (VAT).
Negative Assurance. Other Indirect Tax
Interim Review. Individual Tax
Internal Audit and Operational Audit. Tax Advisory Services.
Performance and Compliance Audit. Tax Due Diligence
Corporate Governance. Transfer Pricing.

1.3.3 Business volume

Table 1.3 Major Industry's receiving services:

Manufacturing and Trading

• Apparel
• Engineering
• Cement
• Fabricated products Pharmaceuticals
• Jute goods/garments/textiles, etc.
Financial
• Banking
• Investment
• Insurance

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 • Capital Market
• Security Service
• Companies
Commercial services
• Courier and cargo services
• Hospitals
• Airlines
• Hotel

1.3.4 Number of employee

There are not many employees in the organization because it is middle level chartered
accountants firm in Chitwan. Even with very small amount of employee the
organization has able to compete with big named audit firm in market. There are only
10 employees presently working in the organizations.

1.3.5 Competitors

Rivalry in which every seller tries to get what other sellers are seeking at the same time:
sales, profit, and market share by offering the best practicable combination of price,
quality, and service. There is competition everywhere so, firm has to understand there
competition to gain competitive advantage. Some of the competitor of Sudin &
associates are:

1. N.h.p company, narayangarh

2. Tulsichandra Adhikari, Bharatpur-10
3. Bishnu Regmi, Bharatpur- 10
4. Nayanraj Chitwan
5. Veshraj koirala, Bharatpur-11 etc.

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1.4 Organizational structure:

1.4.1 Organization chart

Figure 1.1 organization structures of Sudin & Associates

sudin & Associates

Audit department General department

Aduit assistant Administration

1.4.2 Organizational structure

Audit Managers: Audit managers must be Chartered Accountant who can assist
partners in different way. He/she should analysis the audit report before signing the
audit report.

a) Supervisors:

It is not necessary for the supervisors to be a chartered account. He can also be a course
complete student having huge experiences at the field of accountancy. He is being

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supervised by the audit manager when and where an audit activity is performed and
how it is to be performed.

b) Senior Student:

An audit senior has some experience in the accountancy field before he is designated as
the audit senior of the firm. He is under the direct supervision of audit manager and
supervisor.

C) Semi- Senior Student:

A semi-senior student must complete 1 year of article ship in the firm. He is responsible
to the senior student of the firm when he doing any fieldwork.

d) Junior Student:

Junior- Students are fresher who have joined the audit firm.

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 Chapter two

2. Internship program

2.1 Introduction of the branch

I worked at the chitwan branch which lies at by pass road, bharatpur-11. It is a middle
level chartered accountants firm where only 10 people work. It working environment is
very nice with helpful support of top level executive. I worked under the Basu Giri who
is audit assistance he teach me many practical knowledge and how organization
worked. Our branch only support and perform on chitwan.

2.2 Tasks/project in internship program

As I am a newly admitted student my task was to only look after operating and
administrative expenses and that’s why my job responsibility varies from client to
client. Thus, my job responsibilities in ocean motor and delight Lifestyle Company are
as follows:

1. Stock management and recording.

2. Controlling the employee under my authority and their performance.
3. Providing guideline to the owner.
4. Performed vertical analysis and identified major heads of expenditure.
5. Scanned the ledger from unusual/large transactions and vouched with supporting
documents (Purchase order, invoice, delivery challan, bank Statement, personal files
of employees and bank payment advice approval Statements).
6. Checked whether expenses have been classified to appropriate heads.
7. Preserved necessary supporting documents.

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 Chapter three

3. Critical Analysis
3.1 Work Experiences
I have joined Sudin & Associates at 21st January 2018 which fulfill the requirements of
my under graduation program. From the beginning I was given basic ideas on how
firm’s workflows works. It was very thoughtful of my manager to provide me some
materials for studying just to get an idea on assurance and accounting. The main idea
was to lessen up the gap between theoretical and real life scenario. It was very much
frustrating for me to study books at the very first day of my career. However, I was
called and given an annual report of Ocean motor and Delight Lifestyle Company to
study thoroughly. After reading it carefully I found out that this company is having
losses for many years just because they have a huge operating and administrative
expenses. However, initially I was able to find out only one aspect but later I have
learned many new things to scan an annual report.

Two other joiner auditors and I went to Ocean motor and Delight Lifestyle Company
for doing and interim audit. They make me understand the internal control system of the
company. They use Enterprise resource planning system for their accounts. Moreover,
they appointed me to look after operating and administration expenses. They also
discuss everything in brief so that I can actually perform the tasks.

The practical orientation is necessary for the development and preparation of a person
before entering into the corporate world. The things that I have learned at Sudin &
Associates are:

1. Meaning of responsibility

2. Accountability to the profession

3. Obligation of commitment

4. Auditing and reporting responsibilities

5. Working with ethics

6. Working Independently

7. Punctuality and regularity is very important; and

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8. Ability to interact with different sorts of people.

Nature of the Job:

Worked in a Chartered Accountancy firm named Sudin & Associates, Chartered
Accountant as a newly admitted student from 21st January 2018 to 14 March 2018.

3.2 STOW analysis

The word SWOT stands for Strength, weakness, opportunity and threats. It is done to
understand the external and internal environment of the organization. The forces in the
external environment provide opportunity and threats. The forces in the internal
environment provide strength and weaknesses. The major findings from the SWOT
analysis of Sudin & Associates are as follows:

3.2.1 Strength

1. It is a top-of-the –mind consulting which has expertise in audit, tax, and advisory.
2. Strong management team
3. Loyal customer
4. Strong brand equity
5. Skilled workforce

3.2.2 Weakness

1. Weak IT department
2. No foreign affiliation
3. Weak training procedure for new audit assistant
4. Weakness in retaining talents
5. Brand visibility and advertising lesser than some industry majors

3.3.3 Opportunity

1. Product and services expansion

2. There are enormous growth prospects in emerging market.
3. Increasing the spending on infrastructure may increase demand for advisory
services
4. Companies continuously looking for consulting solution
5. Extremely large opportunity in emerging economics

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6. Complex tax laws enhancing the opportunity

3.3.4 Threat

1. High competition in the market

2. Stiff competition from existing industry players
3. Lower profitability
4. Cheaper technology
5. Economic condition of country and slowdown
6. External changes (government, politics, taxes, etc)

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 Chapter four

4.1 Conclusion

Chartered Accountancy is one of the most respected professions in all over the world.
This profession requires maintaining standards and procedures in conducting audit
consultancy, taxation etc. works. International standards on auditing provide basic
guidelines that chartered accountants need to adopt. Apart from auditing procedures I
have learn new aspect of performing business. Firm has some discretion in their audit
procedures depending upon the situation of the respective country and nature of clients.
In this report, I tried to the best of my knowledge to present the practical and theoretical
knowledge in conducting their audit works. From my working experiences in Sudin &
Associates I have learn new audit procedures and function. From the formation of Sudin
& Associates contributes to a great extent in ensuring the transparency in the
presentation of financial statements of various entities of various industries of Chitwan.

4.2 Finding and Recommendation

I would like to share some of the loops that I encountered with during my workings as a
junior trainee auditor. I also would like to establish some recommendations regarding
those disadvantages. I personally discussed with some of collogues and my supervisor
about the loops that I have found and most of them agrees with my observations. The
findings and recommendations are given below:
1. Time Constraints
Findings: Our team has faced serious time limitations, as from the initial screening of
the clients business we thought that we understood everything but later in turns wrong.
We consume huge amount of time just to understand their whole operations process
basically accounts. Especially me as a junior trainee auditor, I had to study huge
information with in short period of time.
Recommendations: From my point of view, if the in-charge or the firm gave us a small
training session about the client’s system then it would be lot easier to understand
quickly in the field. They provided idea about their financial statements but they did not
provide enough information about the clients systems.

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2. Methods of Sampling
Findings: Many auditors use different techniques of sampling to represent the whole
population. Some might use weighted percentage techniques or someone might feel
comfortable with variance analysis to determine which head to see. Moreover, the basic
summary in the sampling methods are used to limit the number of transactions, cost
effective, time efficiency and lastly to representative of the whole population. However,
the auditors might fail to detect a material fact in the financial statements.
Recommendations: There should be specific techniques for sampling which will lead
to a united efficiency regarding sampling. Moreover, it would be better to execute
thorough testing as possible from the samples they choose out of the entire population.

3. Management Coordination
Findings: During my Auditing I had learnt that there is a lack of coordination between
management and auditors. I also leant that the management feels burden while the
auditors seeks for information from them. Moreover, how the management bullies the
auditors by not providing the necessary documents or by delaying. Now, I can truly
relate what I had learnt from my study. I personally felt that some of the employees are
actually delaying in providing the documents that I have asked for. Legally, they have
to provide the documents we asked for but when the management felt of having extra
load in work they tend to delay or neglect the auditors.
Recommendations: Some says it is an art to bring documents from the managements
or employees. As it requires patience and selective techniques to do so, I believe that
there should be welcoming sessions where the auditors and the managements will get to
know each other which will help to reduce the distance that they normally creates.
Furthermore, it is the clients’ duty to look at their managements so that they actually
provide us the necessary documents. To solve this problem top management should
regularly takes feedback from the auditors than the problem might resolve.

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 References

Books:

AUDIT PRACTICE MANUAL, Institute of Chartered Accountants of Chitwan.

Audit and Assurance (2012). London school of Business and Finance.

Planning, Risk Assessment, Audit approach. In Audit and Assurance Manual

Rick Hayes and Philip Wallage (2015) Principles of Auditing: An Introduction to

International Standards on Auditing (3rd Edition).New jersey: prentice hall.

Websites:

http://www.ican.org.np

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