Declaration
3
Acknowledgements
4
Executive summary
5
Acronyms and abbreviations abbreviations
6
Chapter 1: 1:
Chapter 2:
Chapter 3: 3:
Introduction 1.1 Introduction
7
1.2 Background of the field attachment
7
1.3 Objectives of the field attachment
7
1.4 Background of the organization of field attachment
8
1.5 Organizational culture
9
1.6 Gender in the organization
10
1.7 The structure of the organization
10
1.8 The main activities of the organization
11
My Experiences 2.1 Title or Position occupied in the organization
15
2.2 Duties and responsibilities
15
2.3 Supervision levels and relationship with Supervisor
15
2.4 Work team and its composition
15
2.5 Working relationship among team members/other staff
16
2.6 Authority levels to the student
16
Evaluation on Field Attachment 3.1 Level of Accomplishment of duties and responsibilities assigned Field attachment report at Kisaka & Company, CPA
17 Page 1
Chapter 4: 4:
3.2 New knowledge and skills gained in each of the duties &responsibilities
18
3.3 Most interesting experiences
21
3.4 Relatedness of University's taught programmes to the field of work
22
3.5 Challenges faced and how managed
23
3.6 Benefits derived from field attachment
24
3.7 Adequacy in University's preparing the student for field attachment
26
3.8 Preparedness of the Agency to receive and manage students
26
Conclusions and Recommendations 4.1 Conclusions
27
4.2 Recommendations
27
References
30
Appendices
31
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Chapter 4: 4:
3.2 New knowledge and skills gained in each of the duties &responsibilities
18
3.3 Most interesting experiences
21
3.4 Relatedness of University's taught programmes to the field of work
22
3.5 Challenges faced and how managed
23
3.6 Benefits derived from field attachment
24
3.7 Adequacy in University's preparing the student for field attachment
26
3.8 Preparedness of the Agency to receive and manage students
26
Conclusions and Recommendations 4.1 Conclusions
27
4.2 Recommendations
27
References
30
Appendices
31
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I Kamugisha Victor solemnly declare that this report has been entirely organized and written by me to show whatever I experienced, learnt & faced during durin g my field attachment at Kisaka from 6 th June, 2011 to 26th August, 2011. I have compiled this report with the help of my weekly progress report, the Kisaka Human Resource Manual & the Kisaka Assistants’ Audit Manual with some recommendations from the staff of Kisaka as indicated there in. I hope that the findings and recommendations in this report shall be used by all stakeholders to enhance effectiveness of the field attachment programme.
KAMUGISHA VICTOR BCOM III
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I wish to express my gratitude to a number of people who have contributed in various ways to the successful completion of my internship. I start by thanking the Almighty God for the gift of life, He kept me well & in good health, He provided for me financially & also for the favor He clothed me with while at Kisaka. Glory be to His name. I also acknowledge the unwitting contributions of the entire staff at Kisaka. First to the Partner – Jobra Mulumba for having given me an opportunity to take on my internship in such a great firm, Richard the Manager who was responsib le for my supervision also played a very big role that can’t go un-noticed. The Audit Supervisors Rhoda and Gertrude were indeed empathetic & encouraging, the audit seniors especially Edmund who always gave me an opportunity to work on his team & also the rest of the auditors including Julius, Carol, Evelyn, Edna, Simon, Mark, Richard, and Kelvin. May the good Lord bless them for all their efforts. Finally I also wish to extend my thanks to the University for having introduced the internship programme to enable us have a hands on experience experience of the accountancy accountancy profession & specifically to Mr. Anthony Tibaingana for organizing us well i.e. at the College of Business & Management Science.
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In summary, this report contains in detail my experiences, lessons learnt & challenges faced during my field attachment at Kisaka from the 6 th June, 2011 to 26th August, 2011. Some of the lessons learnt include;
Conduct of professional work
The nature & importance of working papers
Ability to deal with very many transactions
The nature & importance of the Internal Control Report
Analyzing & summarizing of significant B.O.D minutes
Auditing of Expenditure
Auditing of Employee Costs
Auditing of the Budgeting Process
Checking of Compliance
Interpretation of key financial & legal laws in audit
General audit procedures
On the other hand, there in contains no major challenges except for the little information about auditing which affected me very much especially at the initial stages of the internship. Otherwise, as explained in the report, the internship period was a great deal of experience, learning, & a success to me.
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B.O.D – Board of Directors CPA – Certified Public Accountant ACCA – Association of Chartered Certified Accountants IAS – International Accounting Standard CPE – Continuous Professional Education EAPCE ’11 – East African Petroleum Conference 2011
HFHU – Habitat For Humanity Uganda AMwA – Akina Mama wa Africa ICR – Internal Control Report SACCO – Savings and Credit Cooperatives Society HFHI – Habitat For Humanity International IFRS – International Financial Reporting Standard NGO – Non Government Organization ICPAU – Institute of Certified Public Accountants of Uganda GAAPs – Generally Acceptable Accounting Principles
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1.1
Introduction
The field report basically covers whatever has transpired in the time I have been at Kisaka & Company CPA for my internship programme from June 6th to August 26th, 2011. The report includes detailed information about Kisaka & Company CPA; lessons learnt & accrued benefits, experiences & more importantly relatedness of the University’s taught programmes to the field of work. There in contains also the challenges faced, how they have been overcome & also entails some recommendations to the University & future field attachment students specifically those who will have their internship programme at Kisaka & Company CPA since that has been my principal area of training.
1.2
Background of the field attachment
By definition, “field attachment” is the field based practical work carried out by staff and
students for the purpose of teaching and /or research in places outside the university control but where the University is responsible for the necessary safety of its staff, students and others exposed to their activities.
The major intention of field attachment is to enable me as a student to experience the real life of work and therefore help me to relate the academic programmes I have studied to an actual work setting, and thus appreciate their applicability.
1.3
Objectives of the field attachment
To enable me get a hands-on experience, real-life situation which I expect & desire to work in after my graduation.
To provide an opportunity to me as a student to apply the principles & techniques I have theoretically learnt into real-life problem solving situations.
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To provide an opportunity for students and academic staff to interact with the stake holders and potential employers to appreciate field situations that will also generate information for curricula review and improvement.
To develop my understanding of work ethics, employment demands, responsibilities and opportunities.
To enhance & strengthen linkages between Makerere University & various stake holders.
1.4
Back ground of the organization of field attachment – Kisaka & Company, CPA.
Kisaka & Company, CPA was set up by two partners Kisaku Mulumba Jobra and Robert Katuntu during 1999 with Jobra as the full time partner in charge of the day-to-day affairs of the firm. Both the partners trained and qualified as professional accountants whilst at Price Water house before it merged with Coopers and Lybrand.
The firm has grown rapidly because of its relentless commitment to quality and its desire to offer Ugandan businesses quality but affordable professional financial services.
The firm is also aiming at being the biggest local firm comprising of competent Ugandans that can match the competition of the international firms.
In order to achieve the above vision, the firm recruits and retains intelligent staff who seem to be in line with the firm’s vision & have gained the requisite knowledge &
experience commensurate to the needs of the firm.
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1.5 Organizational culture
Organizational Values
Independence i.e. taking care not to associate with client representatives in any way that might raise doubts in the minds of others to their independence.
Confidentiality i.e. maintenance of absolute privacy of clients’ intimate business affairs. Not even to discuss a client’s business with anybody except the client’s staff
in so far as it is necessary to secure information for the purpose of their work.
Assurance; knowledge & courtesy of employees & the fir m’s ability to convey trust & confidence to clients.
Responsiveness; the firm’s method of portfolio client management ensures that each client has a specific person or groups on the help line.
Empathy; the firm aims to deliver a product that will prompt or result into a repeated or retain customer.
Beliefs & practices which members cherish & define & give identity to the organization
Professionalism
All members are required to have professional qualifications i.e. CPA or ACCA plus others related to the accounting field. In fact there is a policy of employee sponsorship for these courses upon agreement on special terms & conditions with the partner. It is still for this same reason that every Friday from 4 – 6 pm the
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members have what is known as Continuous Profession Education/Development where one members takes the others through a specific professional topic where by attendance is compulsory.
Courtesy The members are encouraged to relate politely with the clients, honor them, show respect and even make compliments where need be.
God fearing character The members are always reminded that the source of wisdom is the Almighty God and with him nothing is impossible. It is for this reason that members always have Morning Prayer devotions as the Kisaka family every Tuesday and Thursday morning before 8 am.
Integrity While at Kisaka & company, CPA; I realized a lot of moral uprightness, honesty & sincerity among the members . In fact if any one’s behavior causes doubt in respect to this area, then according to the Kisaka manual they might have to be terminated.
Smartness At Kisaka & Company, CPA; all members put on smart & descent business wear while working in the office or at a client’s place. In fact all the gents are always in ties while the ladies are also very smart & so descent.
1.6
Gender in the organization The entire team at Kisaka & Company, CPA is composed of twelve females & ten males
1.7
The structure of the organization PROFESSIONAL STAFF The professional staff structure is as follows: Field attachment report at Kisaka & Company, CPA
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Partner
Senior Manager
Manager
Junior Manager
Senior Supervisor
Supervisor/Audit Senior
Assistant 2
Assistant 1
Partners In terms of responsibilities, personal satisfaction and financial reward, the position of a partner is comparable to that of a top executive in a large corporation. Partners share personal responsibility for all the firm’s decisions. Responsibility rests with them for the
satisfactory completion of the firm’s engagements for the general administration of practice and for contribution to the development of the profession as a whole. Managers Managers are responsible to partners for directing several client engagements simultaneously. Certain office administration functions are also delegated to managers. They supervise and confer regularly with Supervisors and Seniors and spend considerable time in consultation with partners and with executives of Client organizations. This is a position of significant responsibility, equivalent to positions like manager, personnel, finance, operations etc in most companies. Normally at the time of promotion to this level a manager would be expected to have had at least five years of professional work experience, including at least three years post-qualification, and to have the potential to become a partner.
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Senior Supervisor The position of a Supervisor is a stepping stone to managerial position. This stepping stone is a promotion earned on merit and only those who are considered to have supervisory responsibilities will be promoted to it. Usually each assignment is staffed by an audit team comprising a Senior in charge and Assistants. The Supervisor’s role would be to supervise &
guide the Senior in charge on technical and job control aspects of the assignment. Seniors These work closely with Supervisors, Managers and Partners. Seniors direct the day to day execution of their assignments. They usually work on one assignment at a time and are directly responsible to the Manager or Assistant Manager. They also supervise the work of Assistants, thus assuming a key role in the firm’s on -the-job training programme. Seniors
must have sufficient knowledge of tax accounting & general business matters to make constructive suggestions regarding clients’ affairs. Assistants The Assistant’s level provides staff joining the firm with an introduction to basic
procedures and gives them the opportunity to appreciate the need to display skill, judgment & initiative. It is the proper demonstration of these factors which ensures the quality of work. As experience is gained, they handle more complex accounting and auditing sections of an assignment. They are responsible to the Seniors in charge of the assignment. After two years Assistants are given an opportunity to handle small and medium clients to see whether they are fair and have Senior qualities. ADMINISTRATIVE STAFF The professional staff are supported by the administrative staff who manage the firm’s
office services and administrative functions are under the supervision of the partners.
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1.8
The main activities of the organization Audit & Business Advisory services Audit & Business Advisory services currently accounts for the majority of the firm’s
chargeable hours. Most audits are carried out in accordance with the International Standards on auditing applicable to the prevailing circumstances, the requirements of the companies act, or with donor funding agreements, and are directed principally at the expression of an opinion on the financial statements of the clients. A wide range of audit related services are also offered including project audits, special investigations, acquisition reviews, value for money audits and corporate finance advice. Management Consultancy Services These aim at providing clients with a wide range of solutions for their business problems & they include:
Strategic planning & change integration device
Finance & accounting advice
Information Technology
Human resource development
Recruitment services
Management development & training
Operations planning & control
Project management & cost control
Business Reviews
Tax services The firm provides comprehensive tax services covering all aspects of corporate & personal taxation. These tax services include the preparation and submission of annual tax returns, tax planning to minimize clients tax expenses, and review of audit working papers to ensure that accounting provisions are fairly stated. Field attachment report at Kisaka & Company, CPA
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Insolvency services The company has access to specialists in company receiverships and liquidations who are able to offer a comprehensive service to those, principally banks, who seek to recover loans and advances which are secured on companies. Secretarial services The company offers statutory secretarial services to a number of clients dealing with the maintenance of statutory books and the filing of documents and annual returns with the registrar of companies.
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2.1.
Title or position occupied in the organization Audit Assistant
2.2.
Duties and responsibilities
To be conversant with the people and the geography of the office
To be familiar with the mission, vision & particularly the distinctive of Kisaka
To have more knowledge on the nature of the company & industry
To read & summarize key learnings in the kisaka brochure, IASs, & the relevant laws of Uganda – refer to appendix 1
To be conversant with the key parts of the audit process i.e. the trail balance, the extended trial balance, the lead schedule, working papers, notes/financial statements & file review.
To be conversant with the key elements of good client/job management which include strategic plans, following a time table, timely updates, final reporting & the Kisaka management methodology.
2.3.
Participating in CPE – refer to Appendix 2
Execution of audit assignments.
Reporting to the Seniors and Supervisors.
Supervision levels & relationship with the Supervisor
The overall supervision was done by the audit manager who placed me under the supervision of the audit supervisor. The audit supervisor then placed me under the supervision of an audit senior in charge of a particular assignment.
2.4.
Work team & its composition
For all the work executed at the office, the team consisted of the audit assistants, seniors, supervisors and the manager who was the one specifically in charge of my supervision.
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While working on EAPCE ’11, the team was composed of audit assistants, a senior
and a supervisor.
While working on Usalama, the team was composed of audit assistants, a senior and we were later joined by the partner.
2.5.
While working on HFHU, the team consisted of audit assistants and a senior.
Working relationship among team members/other staff
I have enjoyed a very good working relationship with all the members at Kisaka both the professional and administrative staff. The Kisaka family is so welcoming, people are so concerned about each other & treasure each other in that when you fail to appear at office people are quick to inquire whether there is something wrong.
2.6.
Authority levels to the student Being an audit assistant, I have been restricted to execution of specific components during the audit process for example summarizing of significant B.O.D minutes and dealing with expenditure as well as employee cost components under the supervision of an audit senior. More complex sections were directly handled by those who have over some good time gained enough experience but I got a chance to learn along and execute specific particular objectives in such circumstances.
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3.1.
Level of accomplishment of duties and responsibilities assigned
Understanding of principles & Concepts; Victor is conversant with the basic principles and concepts – Manager .
Assignment on AMwA; The overall assessment on AMwA was fairly good. Victor was conversant with analyzing expenditure items and income – audit supervisor .
Review of top & working files; Victor worked on various audit checklists, identifying and summarizing them. He also reviewed top & working files. Job well done – Manager .
Assignment on ICR matters arising – EAPCE ’11; Victor has appreciated the importance of a management letter/Internal Control Report while executing his work – audit supervisor .
External audit – Usalama SACCO limited; Victor’s performance on this assignment showed that he has the zeal to learn & accept
challenges on any other assignment. In my assessment, he has generally performed well given that this has been one of his first assignments with the firm – audit senior .
External audit – HFHU; HFHU affiliated to HFHI is an ecumenical Christian ministry that welcomes to its work all people dedicated to the cause of eliminating poverty housing. Since its founding in 1992, Habitat has built, rehabilitated, repaired or improved more than 6,000 houses in Uganda, providing simple, affordable shelter for over 36,000 people. As opposed to the previous assignment, Victor’s performance on HFHU tremendously
improved & if given more time he would have perfected in executing audit assignments – audit senior .
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3.2.
New knowledge and skills gained in each of the duties & responsibilities
i.
Understanding of principles & concepts
Conduct of professional work
Independence i.e. taking care not to associate with client representatives in any way that might raise doubts in the minds of others to their independence.
Confidentiality i.e. maintenance of absolute privacy of clients’ intimate business affairs. Not even to discuss a client’s business with anybody except the client’s staff in so far as it is necessary to secure information for the purpose of their work.
Safeguarding of working papers and other documents i.e. being responsible for safeguarding and keeping under my control all papers in my possession & keeping all firm’s working papers & records confidential.
Discovery of fraud; notification of the manager or partner in cases of evidence of fraud, defalcation or other irregular practices & never to immediately confront a client with my finding.
Signing of any reports; this is only restricted to the partners. I have also come to understand never to assume position of being a judge on issues that are outside the firm’s scope even if am called upon by the Client staff.
Working papers
Audit files
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I have been exposed to mainly two files i.e. the top file & working file. The purpose of the audit top/planning file is to draw together planning documentation to support a review by the audit partner prior to the approval of the strategic plan while the working file basically contains the details of the audit work for all components for a particular year.
Structure of a component section I have also learnt that there is a standard system for organizing individual component sections. Using section O (“trade accounts receivable”) as an
example, a typical audit section should include the schedules as shown in appendix 3.
Standard schedules I have also come to learn that within each component section, there are standard schedules that serve to summarize the balances and audit issues arising from audit work on that component. Some of the more commonly used standard schedules are listed in appendix 4.
The Lead Schedule I have learnt that a lead schedule should be prepared for each significant caption (or heading) in the financial statements to show items included within that section, together with comparative figures for the previous year. An example of a lead schedule is shown in appendix 5.
The component conclusion schedule As with the lead schedule, I have also learnt that a component conclusion schedule should be prepared for each significant component of the financial statements. This is usually prepared by the member of the audit team who has been given responsibility for the component & it has three main parts i.e. work performed, matters arising & conclusion – refer to appendix 6.
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Cross Referencing I have also learnt that a standard system of referencing the contents of the audit files is necessary to facilitate the audit review & to enable information to be readily found when needed. There is always a complete referencing path from the final statutory accounts to the trial balance – refer to appendix 7.
Control Schedules I have also learnt that for those particular tests where the audit programme and other summary schedules don’t provide adequate explanation of the work
performed, and always where there is a significant matter arising, a control schedule should be completed. For an example of a control schedule checklist, refer to appendix 8 while for a control schedule, refer to appendix 9.
ii.
Assignment on AMwA The greatest lesson (skill) that I personally picked while executing this assignment was the ability to deal with very many transactions. I had not done this before since in class & in examinations we in most cases don’t have more than twenty
transactions to deal with. But then with the help of the audit supervisor, I was able to analyze expenditure & income items for AMwA with over fifteen donors & also dealing with very big figures of money.
iii.
Assignment on ICR matters arising – EAPCE ‘11 From this assignment, I personally appreciated the importance of an ICR during auditing which is basically aimed at presenting to management the weaknesses of the internal control system, risks which are caused by those weaknesses & also to provide recommendations to remedy the situation. In fact whenever we went to a clients place, the senior on job interviewed the concerned person usually the Finance & Administrative Manager to follow up on prior year findings i.e. whether the recommendations that had been included in prior year ICR where implemented and if not why.
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iv.
External audit – Usalama SACCO limited While on this job, I learnt how to practically summarize significant board minutes from the huge B.O.D minutes file that was for the entire period 2010. In fact I learnt that special emphasis is placed on what has been resolved. I also learnt how to check for the society’s compliance with the relevant laws i.e. the society’s by – laws and the
Cooperative Societies Act.
v.
External audit – HFHU Here I learnt how to particularly audit the budgeting process of the organization. I actually documented the entire budgeting process which I obtained by interviewing the Finance & Administrative Manager there by polishing my interviewing skills. I also investigated significant variances between the budgeted figure & actual expense & performed analytical reviews to investigate the cause of variation. I also learnt how to expressly audit employee costs under expenditure i.e. I reviewed payroll procedures, determined the eligibility of employees paid, investigated variances, carried out a detailed recomputation of items entered in the payroll ( I had actually never seen a payroll), I reviewed deductions in respect to staff advances & loans, and also reviewed overtime policies.
3.3.
Most interesting experiences
While at Kisaka & Company, CPA; I have enjoyed a number of things including the comfortable working atmosphere, the professional conduct exhibited, the personal touch placed on me in a number of circumstances but there are 3 major experiences I have personally enjoyed, i.e.
The morning prayer devotions which are held every Tuesday & Thursday where by all the auditors come humbly before the presence of God, seek guidance and lift up every one & every activity to the Lord. This was so good in that every after morning devotion I felt lifted up & encouraged to step out in wisdom & execute my duties which is not the case in most organizations. Field attachment report at Kisaka & Company, CPA
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Continuous Professional Development/Education The firm provides professional staff with a comprehensive range of formal courses designed to enhance their understanding of the firm’s approach & methods and their
managerial & interpersonal skills. A timetable is drawn & every member is assigned a particular subject to present being given ample time for preparation after which he/she presents on a Friday evening (4 – 6pm) & attending these discussions has created a deep passion within me for professionalism.
External auditing at HFHU Throughout the entire internship period, I have gone to various clients’ premises to
perform external audit but among them all, I loved the job at HFHU. We were taken so care of so special & delicate. There was extra attention given to us – in fact there was a time I was interviewing the Finance & Administrative Manager concerning the budgeting process & then someone called her! When she picked the phone she told the person who had called that, “Please hold on am still having an important meeting with the auditor .” This
made me feel so good realizing the value that was attached to me. We were being served with eats & drinks all time & the entire job was not only professional but so enjoyable.
3.4.
Relatedness of University’s taught programmes to the field of work
One of the major questions I had in mind while studying was, “Are these things that we study relevant & applicable to the jobs out there?” I thank God that this question has been
clearly answered during my internship period.
I have actually found out that 90% of the course units we study are indeed relevant & applicable. The only course unit that I didn’t clearly realize how it was applied in auditing
was the detailed micro & macro theoretical economics we had studied. Otherwise all the others were evidently being applied.
The principles of preparing financial statements & interpretation of these statements are the ones as taught in the lecture rooms, after carefully e xamination of organizations’ Field attachment report at Kisaka & Company, CPA
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human resource manuals, I realized principles that are followed are those expressed in Organizational Theory, Strategic Management & in Cost & Management Accounting.
When it came to computation of payroll taxes, principles followed where those that were taught under “Taxation” a course unit taught in 2
nd
year 1st semester. In fact we were using
the tax act which I had already seen a copy of during class & so it was not strange to me.
During the performance of analytical techniques, we at-times used financial ratios like the gross profit margin, debtors’ days & creditors’ days whose interpretation was clearly
taught & explained under financial management in 2 nd year. This was so helpful in interpreting the financial position of organizations & greatly useful in provided recommendations to management.
As an Accountancy Student, I had not seen the relevancy of studying & suffering with course units of law in my profession. But during the internship period I found out that one of the major components an auditor must check is COMPLIANCE and the only way this can be audited is by going through the relevant laws to a particular organization & finding out whether they really comply with the law. For instance all NGOs we went to had to comply with the NGO Act & this meant us carefully going through the Act, interpreting the various sections as well those found in the Companies Act. What helped me most was that I had this foundation of law from two course units i.e. business law & Co mpany law.
3.5.
Challenges faced & how managed
There were times when most members were quite busy with a lot of work at their desk & because of this couldn’t really get help from them or even inquiring from them when
stuck somewhere.
The way I was able to cope up with this was by summarizing whatever I needed to ask/inquire in form of documentation & whenever someone could get some space, I would utilize that opportunity. Field attachment report at Kisaka & Company, CPA
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The IASs, IFRSs and the Ugandan laws were very many and also not easily interpreted or understood. For instance I desired so much to really understand IAS 16 about depreciation but couldn’t get it very well from the IASs.
As for this, some IASs & IFRSs were explained during the CPE & I have at least picked something while as for the laws of Uganda, I have got more exposure to them during the external auditing while at the clients’ premises with the help of the seniors on job.
One of the major challenges that I faced especially at the initial stages of the internship period was the little technical knowledge that I had about auditing since we had not yet done auditing as a course unit at the University – in fact I didn’t know the major difference between auditing & accounting.
However, by going through the Assistant’s Audit Manual, I was able to understand the
practical guidance on the aspects of the audit process. I used it as a basis for an informed discussion with the audit senior as to how a specific task should be performed.
3.6.
Benefits derived from field attachment
I have acquired new knowledge and practical experiences as I have explained in section 3.2
I have greatly improved my confidence especially when dealing with clients. At the initial stages of the internship period, I was quite fearful & not free with clients but since along the way I was asking more questions & interviewing various people, I now don’t fear anymore any client in fact when interacting with them am really so
bold & keen to find out whether there are any reportable findings I can address.
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I have got an opportunity to relate with different categories of people at Kisaka & Company, CPA with people various levels of qualification & even at the clients’
premises, I have met many people who all together have given me a feel of the profession.
I have also been exposed to the demands and challenges of the work place for instance making sure that I get up early so that I reach office by 8:00 am, making sure that am always smart in special business wear with a well knotted neck tie, & also learning to work with different people of various categories.
I have also got an opportunity to meet & work with potential employers first at Kisaka & Company, CPA. I have realized that the environment at Kisaka is a very conducive environment for learning & gaining experience in the accounting field because I have been dealing with various organizations with different accounting policies some with even special accounting systems.
I have also come to realize what is mostly considered by employers during interviews because whe n I was auditing the employee costs at some clients’ organizations, I had a chance to look through their payroll & personnel files, audited the interview process & now know what is highly looked for in potential employees. For instance, I cited a case somewhere where the best candidate had not been offered the job because of overstating the salary he would be paid. I really learnt a great lesson from this.
This I would say is the greatest benefit I have derived from the field attachment; I have come to appreciate the beauty of my profession unlike before. I thought everyone could do accounting or audit. But from what I have found out, auditing is so technical & highly scientific. We have our own technical jargon & a special code of conduct. I love auditing!
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3.7.
Adequacy in University’s preparing the student for field attachment
From my point of view, I really think that the University adequately prepared us for the field attachment. We were given enough time to look out for any organization of our choice which avoided cases of being posted in areas where we wouldn’t be comfortable. This also improved our confidence in searching for opportunities in various organizations especially with the letter of recommendation from the University & this gave us a feel of what it means to look for a job.
The field attachment funds were provided in time which enabled me personally to prepare in time without panicking.
The University Supervisor was friendly, cool to work with and also took another step of advising me how better to run through the internship period.
I really believe that the University has done her job in this respect.
3.8.
Preparedness of the Agency to receive and manage students for field attachment
Given the nature of audit firms with one major department which could suit the field attachment students i.e. auditing section and the high level of professionalism required, the way in is so narrow & it is for this reason that Kisaka as a professional auditing firm may be ready to give an opportunity to 2 – 3 students for training purposes with prior notification of the Manager or Partner.
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4.1
Conclusions
In view of the issues highlighted & discussed in the above chapters, I want to thank the University for having given us an opportunity to participate in internship programme.
As a matter of fact, due to this programme;
I now appreciate more my profession as an Auditor,
I have acquired new knowledge & practical experiences,
My confidence in relating with people has also greatly improved,
I have related with various professionals – it is such a beautiful experience,
I have been exposed to the demands & challenges of the work place,
At the same time, I have also met various potential employers
There were also some challenges I faced as I explained in section 3.5 but the major challenge was the little information I had about auditing especially at the initial stages of the internship. However, by going through the Assistant’s Audit Manual (AAM), I was able
to understand the practical guidance on the aspects of the audit process. Otherwise, I on my side believe that the internship programme was a success. 4.2
Recommendations
To the University
The internship programme should start in the holiday of the first semester second year & then wound up in second holiday second year (i.e. internship in two phases) because one internship period is not really enough for someone to grasp whatever the organization is ready to deliver.
I thought of starting right from the first year but the problem with that would be that the professional/organizational foundation for such a candidate would not be so strong to survive in a professional working environment. Field attachment report at Kisaka & Company, CPA
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The two – three months given in one period are just good enough for general orientation for instance; personally I was able to only cover half of what I was meant to cover, in fact I had to enter into the first week of the semester before really winding up.
These organizations are so ready for us but the problem is that the time is not enough for us to really consume whatever they have prepared for us. It is because of this that I didn’t go into the common audit procedures e.g. bank reconciliation, debtors’ circularization, stock count observation, nominal ledger, account
reconciliation, analytical review tests, inspection of statutory books & records, fixed assets, intercompany, stocks, supplier statement reconciliation, cut-off tests, management representation letter, the 7-Step approach, to mention but a few. But rather instead just concentrated on work around working papers.
In such a case where the internship is broken into two periods i.e. holiday of 1 st semester 2nd year & holiday of 2nd semester 2nd year, there could be a draft report after the first period, a second report after the second period after which they are combined into one report.
There should also be constant communication between the University Supervisor and the field Supervisor (say weekly). This is because it may prove quite expensive for the University Supervisor to make constant field supervisions yet it really needed for the University to have a weekly report & then follow up on students. This will greatly minimize on the number of students who take field attachment for granted. It is one way some people can really be motivated & pushed to work and prepare for their future/destiny & with this Makerere University shall be able to achieve her vision i.e. building for the future.
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To the future field attachment students
This really goes to those who would love to join Kisaka & Company, CPA for their field attachment programme. While at Kisaka & Company, CPA;
Take the internship serious. Know that Kisaka is the best place you can ever have your internship from. You will learn a lot & see a lot even when you are still young.
When stuck, seek help from someone. He/she doesn’t have to be the Supervisor
but anyone in position to help. At Kisaka, every moment is a learning experience.
Please make sure that you are always smart. Remember that you are an auditor, a financial inspector & a policeman.
Please always attend the CPEs; you learn a lot from these sessions & at the same time enjoy them.
In case of any problem, talk to the manager; he is always willing & ready to listen to you, encourage you & support you.
Try as much as possible to be at peace & friendly with everyone. This will help you so much in cases where you need help.
Please make sure you don’t miss the morning devotions because they will help you
knit your heart with the rest of the members.
Most importantly, always seek the Lord for guidance. Field attachment report at Kisaka & Company, CPA
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REFERENCES
Makerere University, 2011. Students’ Weekly Progress Report
Kisaka & Company, 2003. Kisaka Assistants Audit Manual.
Kisaka & Company, 2010. Kisaka Human Resource Manual.
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APPENDICES Appendix 1: Key Learnings a) From the Kisaka brochure & personnel manual
Kisaka aims at being the biggest local firm comprising of competent Ugandans who can match the competition of the international firms.
Some of the basic values are openness, integrity, smartness & professionalism
Major activities include audit & business advisory services, management consultancy services, tax services, Insolvency services & secretarial services.
Maintenance of specific areas of operation & management to maintain quality & market share.
b) From the IASs and the relevant laws of Uganda
At the start, the IASs were very many & complicated to understand as well as the laws of Uganda. However, for the IASs, more light was thrown during the CPE sessions as well as the laws of Uganda especially the Companies Act, the Income Tax Act, the NGO Act and the Accountants Act were I realized & appreciated the significance of ICPAU.
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Appendix 2: Summary of the key issues discussed in CPE
Review of the audit process i.e. preliminary engagement activities, planning, execution, review & completion, and reporting – by the Partner.
Objectives of each of the above stages in the audit process – by the Partner.
Points for partner’s attention who places special emphasis on materiality with the help of ‘FACTS’ i.e. Findings, Amounts, Client’s Opinion, Th y Opinion, & Schedule Reference – by the Partner.
Special emphasis on review of financial statements & files – by the Partner.
Discussion of some standards especially under review & completion i.e. IAS 220, 230, 520, 560, 570, & 580 – by the Partner.
Property, Plant & Equipment under IAS 16 – by an audit senior.
Special elements & features of internal audit – by the manager.
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Appendix 3: Schedules of a typical audit section
REFERENCE
SECTION
O
Lead Schedule
OS1
Component Conclusion
OS2
Summary of component significant errors
OS3
Audit Programme
OS4
Control Weaknesses Summary
OS5
Detailed Planning Documentation
O 1 - 99
Final Audit Papers
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Appendix 4: Commonly used Standard Schedules
Document (Reference)
Use
Matters for Partner’s attention
Sometimes referred to as “final notes.” These are
summaries of those matters of such importance that a decision by a Partner or Manager is required. Examples may include significant unresolved audit points, questions of accounting principle, uncertainties (including matters of judgment), and presentation or disclosure points.
Summary of the unadjusted items
This is sometimes referred to as the “overs and unders schedule.” It shows the cumulative effect of all errors
identified, and thereby helps the reviewer to consider their materiality both individually & collectively in relation to the financial statements as a whole.
Summary of significant matters
Schedule should indicate the correcting double entry (displayed in the form of a journal adjustment needed to correct the error), describe the nature of & reasons for the error, and refer to any supporting schedules.
Review of Board minutes
Minutes to Board meetings represent an important source of audit information and perspective on a company’s
activities. Copies of the minutes should be referenced and filed for review by the senior or manager. The minutes should be referenced to the audit schedules where the Field attachment report at Kisaka & Company, CPA
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financial effect of any resolution is shown.
Internal Control Report including
An ICR is a summary of recommendations for
recommendations
improvements to a client’s systems. The report is normally
sent to the senior client personnel & satisfies two purposes:
It places on record reservations as to the effectiveness of the client’s system of internal
control & suggestions to overcome these weaknesses.
It draws the client’s attention to any matters where
we consider that the efficiency or effectiveness of the accounting or management’s information
systems can be improved.
Each recommendation should incorporate the client’s comments.
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Appendix 5: An example of a Lead Schedule
TRADE ACCOUNTS RECEIVABLE LEAD SCHEDULE 31. 12. 92
SALES
31. 12. 91
PER BOOKS $
ADJUSTMENTS $
FINAL $
FINAL $
MOVEMENT $ %
O2 154,032
222
154,254
139,120
15,134
+11
O5 (3,288)
(222)
(3,510)
(2,829)
(681)
+24
150,744
-
150,744
136,291
14,453
+11
LEDGER CONTROL
LESS: BAD DEBT PROVISION
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Appendix 6: The three main parts of a Conclusion Schedule
Work performed; this documents the facts that the work carried out was in accordance with the work programme. If any additional work was required (e.g. because of additional risk factor whilst performing the work) this should be documented here.
Matters Arising; all significant matters, unadjusted errors and control weaknesses should be summarized here. Alternatively, significant matters arising may be noted on the face of the component conclusion schedule.
Conclusion Here we are concluding on 5 things; i.
The assertions are valid
ii.
The balances are fairly stated
iii.
They conform with GAAP’s
iv.
They are prepared on a consistent basis to last year
v.
The systems provide an adequate basis for the preparation of the component conclusion schedule.
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Appendix 7: An example of a typical referencing path
Face of the profit and loss account/balance sheet Statutory Accounts Notes to the financial statements
Lead Schedule
Working Papers
Supporting audit working papers Nominal ledger Trial Balance
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Appendix 8: An example of a Control Schedule Checklist
Object of Test
Is it precise?
Is it achievable?
What is the test trying to achieve? (what sort of test is it?)
What could I conclude on the test?
Base Document
Have dates been specified?
Does frame = Population?
Can you select your sample from a controlled source?
Have you chosen an efficient sampling unit?
What can you conclude based on the time period tested?
Sample Selected
State method precisely
Do the sample type and size support the object of test?
Is it in line with the sampling selected in the strategic plan?
Give details of how you went about selecting the sample.
What conclusions can you draw from the sample size used?
Work Done
Describe exactly what you have done
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Matters Arising
Always define the exception with reference to the object of Test
NEVER ignore findings
FACTS (what you found)
ACTION (what you did about it)
CONCLUSION on the exception (is it resolved or not? If not, what else should be done?)
Conclusion
Be honest (it is possible to say that the object of Test has not been achieved)
Be brief (“object achieved”)
Put it on the same page as the object of Test (easier to review)
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Appendix 9: An example of a Control Schedule Object of Test To accumulate audit evidence that additions to property & equipment are genuine and have been correctly recorded in the fixed assets register.
Base Document Client’s listing of property and equipment additions
Sample Selected As per audit work programme JS3 Work Done As summarized on J4 Matters Arising The fork lift track purchased from Germany for Dm 58,000 has been recorded at a cost of $ 58,000. The acquisition should have recorded at a cost of $ 20,000 (applying the conversion rate of Dm 2.9 / $ 1). The adjustment has been noted on JS2. No further assets were purchased in foreign currency. Conclusion Object achieved.
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