Kpmg Audit

EPORT 2013 SUMMER  I  INTERNSHIP R EPORT

 AS AD HA BI B 2015-11-0181  KP MG Tasee Tase e r Ha di & Co 3 rd  June-15 !  Ju"#$13  De %a r e n - Au Audi di    'a !ore !o re - Pa (i san s an

Contents 1. Note ote on on Aud udit it Firm

1.1. History 1.2 1.2. Servi ervice cess Provi rovid ded 1.3. 1.3. Inte Intern rnat atio ional nal Affil ffilia iati tion onss 1.4. 1.4. Majo Majorr Clie Client ntss (loc (local al)) 1.5 1.5. Seci ecial ali! i!aation tionss 2. Note Note on Naseeb Naseeb Oni Onine ne Ser!i Ser!i"es "es #P!t$ #P!t$ %T %T&' (ien (ientt 2.1. History 2.2. 2.2. "ine "iness of #$si #$sine ness ss%% Prod Prod$ct $ctss and ser servi vice cess 2.3 2.3. &'ner 'ners si i str str$ $ct$r ct$ree 2.4 2.4. &r &rani! ani!at atio ion n Ca Carrt 2.5 2.5. Ind$ Ind$st strry Anal nalysis ysis 2.* 2.*. Assoc ssociiated ated Con Conce cern rnss 2.+. 2.+. Majo Majorr ,ev ,even en$e $ess - /e /ens nses es 2.0. 2.0. Mar Maret et Posi Positi tion on - $t$ $t$re re Pros Prosec ects ts 3. Aud Audit Met Met) )odo odoo* o*+ + ,. A-- A--i" i"ati ation on o o IT in Aud udit it /. Note Note on on Are Areas as Assi* ssi*ne ned d

5.1. 5.2. 5.2. 5.3. 5.3. 5.4 5.4.

A$dit Plan Ste Stess erf erfor ore ed d #y yo$ yo$ ind indiv ivid id$a $all lly y Pro# Pro#le les s o#ser o#serve ved d - Sol$ Sol$ti tion onss Sal alin in  e ecni cni$ $ee

. A note summari summariin* in* +our e-erien"e e-erien"e it) it) t) t)ee audit audit irm )i*)i*)ti )i*)i*)tin* n* essons earned in t)e ied o 

*.1 *.1. *.2. *.2. *.3 *.3. *.4. *.4. *.5. *.5.

Mana anae een entt si sills lls Inte Inter rer erso sona nall sil sills ls Prese resent ntat atiion si sill llss &ra &rani ni!a !ati tion on #ea #eavi vior  or  ie ana anae ee ent nt sil sills ls

4. Ot)er ree!ant and interestin* earnin* o--ortunities t)at "ame a"ross durin* t)e interns)i-.

1. Note on Audit Firm 1.1.

Histor+

Aon te leadin #i fo$r international a$dit firs6 te 7PM8 net'or 'as fored in 190+ 'en Peat Mar'ic International and 7lynveld Main 8oerdeler ered alon 'it teir resective e#er firs. o$r ey fi$res 'ere involved in te foration of 7PM8 'o are accredited to #e te fo$ndin e#ers of te resent orani!ation. e orani!ation:s

 #acro$nd as also #een traced tro$ te naes of its rincial fo$ndin e#ers ; 'ose initials for te nae <7PM8.< •

5  stands for 7lynveld. Piet 7lynveld fo$nded te acco$ntin fir 7lynveld

•

7raayenof - Co. in Asterda in 191+. P is for Peat. =illia >arclay Peat fo$nded te acco$ntin fir =illia >arclay

•

Peat - Co. in "ondon in 10+?. M stands for Mar'ic. @aes Mar'ic fo$nded te acco $ntin fir Mar'ic6

•

Mitcell - Co. 'it ,oer Mitcell in e' Bor City in 109+. 6 is for 8oerdeler. r. ,einard 8oerdeler 'as for any yearsD cairan of e$tsce re$and;8esellscaft and later cairan of 7PM8. He is credited 'it layin $c of te ro$nd'or for te 7M8 erer.

In 19116 =illia >arclay Peat - Co. and Mar'ic Mitcell - Co. joined forces to for 'at 'o$ld later #e no'n as Peat Mar'ic International (PMI)6 a 'orld'ide net'or of acco$ntin and cons$ltin firs. "ater6 in 19+96 7lynveld joined forces 'it e$tsce re$and; 8esellscaft and te international rofessional services fir Mc"intoc Main "afrent! to for 7lynveld Main 8oerdeler (7M8). In 190+6 PMI and 7M8 and teir e#er firs joined forces. oday6 all e#er firs tro$o$t te 'orld carry te 7PM8 nae e/cl$sively or incl$de it in teir national fir naes. 7PM8 in Paistan 'as esta#lised in 19*9 and is reresented #y 7PM8 aseer Hadi Co. (7PM8H). It is oeratin in 3 ajor cities across te co$ntry 'it offices in 7araci6 "aore and Islaa#ad and as 20 Partners6 2 /ec$tive irectors and ore tan 11??  rofessional staff. It is a e#er fir of 7PM8 International and of te coesive #$siness $nit tat serves te Middle ast and So$t Asia (7PM8:s MSA #$siness $nit) in resonse to an environent re$irin te reso$rces of a lo#ally alined orani!ation co#ined 'it detailed no'lede of local la's6 re$lations6 arets and coetition.

1.2.

Ser!i"es Pro!ided

7PM8 deals ainly 'it a$dit6 ta/ - advisory services. It is rovidin its several clients 'it services s$c as stat$tory a$ditin6 ris advisory6 #$siness and ersonal ta/ lannin6

financial and attestation reortin6 and strateic anaeent services. 7PM8 as fo$r ain service linesE •

Ass$ranceE corises inancial A$dit (core ass$rance)6 ra$d Investiation -

•

is$te Services and Cliate Cane - S$staina#ility Services. Advisory ServicesE consistin of fo$r s$#service linesE Act$arial6 I ,is and

•

Ass$rance6 ,is6 and Perforance Iroveent. a/ ServicesE incl$des >$siness a/ Coliance6 H$an Caital6 Indirect a/6 International a/ Services6 a/ Acco$ntin - ,is Advisory Services6 and

•

ransaction a/. ransaction Advisory Services (AS)E incl$des coercial6 financial6 real estate and ta/ d$e dilience6 erers - ac$isitions6 val$ation - #$siness odelin6 cororate restr$ct$rin and interation services

Additionally6 it rovides erers and ac$isition6 divestent6 rivate laceent6 restr$ct$rin6 val$ation and litiation advisory services. e coany caters to financial services6 #anin6 co$nication6 entertainent6 ealtcare6 transortation6 food and #everae6 and a$tootive ind$stries.

1.3.

Internationa Aiiations

Internationally6 7PM8 is a lo#al net'or of rofessional firs rovidin A$dit6 a/ and Advisory services 'ere te affairs of 7PM8 are te resonsi#ility of several #odies. Me#er firs can #e fo$nd in 15* co$ntries and territories tat ave collectively eloyed ore tan 1526??? eole across a rane of discilines 'orin aro$nd te 'orld. e indeendent e#er firs of te 7PM8 net'or are affiliated 'it 7PM8 International Cooerative (<7PM8 International<)6 a S'iss entity. ac 7PM8 fir is a leally distinct and searate entity and descri#es itself as s$c. Me#er firs: clients incl$de #$siness cororations6 overnents and $#lic sector aencies and not;for;rofit orani!ations. ey loo to 7PM8 for a consistent standard of service #ased on i order rofessional caa#ilities6 ind$stry insit and local no'lede. 7PM8Ds 8lo#al >oard is te rincial overnance and oversit #ody. e ey resonsi#ilities of te >oard incl$de arovin lon;ter stratey6 rotectin and enancin te

7PM8 #rand6 and arovin olicies and re$lations. e >oard incl$des te Cairan6 and te Cairan of eac of o$r tree reions (te Aericas% Asia Pacific% and $roe6 Middle ast Africa).

1.,.

Ma7or (ients #o"a$

In Paistan 7PM8 as #een servin a n$#er of $ltinational coanies and several oter local orani!ations of vario$s inds fro #ot rivate and $#lic sector. 7PM8 Paistan as #een offerin tese orani!ations a $e ool of teir services lie e/ternal and internal a$dit6 ris advisory6 nterrise ,eso$rce Plannin (,P) and te lie. Soe of its ajor local clients are • • • •

 estle Pesi otal Parco Presson descon

• • • • • • • • • • • • • • • •

1./.

ari 8lass "iited A!ard9 Standard Cartered >an >,8, Paints 8 Ceent =ateen teleco ,afan &8C" (&il - 8as eveloent Coany) CC" (o$ji Ceent Coany "iited) 7&HA Ceent S$i So$tern 8as Coany CBA "iited reat Cororation "iited a$ji ertili!er  7oinoor Male "eaf 8ro$ a$ji ertili!er Coany

S-e"iaiations

7PM8 seciali!es in rovidin its services in tree ain areas naely a$dit6 ta/ation and advisory. Considerin te a$dit seciali!ation6 7PM8 offers an indeendent a$ dit of financial stateents tat is one of te fo$ndations for te e ffective oeration of te caital arets. At 7PM86 a$dit $ality is al'ays considered vital for aintainin tr$st in te financial reortin  rocess and te interity of financial inforation. Secondly6 #ein a secialist in ta/ation6 7PM8 rovides effective and efficient ta/ services to its any clients in order to rovide te a coetitive advantae #y lo'erin te ta/ and adinistrative costs yet eein teir #$siness coliant 'it te ta/ la's and re$lations. irdly #ein advisory secialists6 7PM8  rofessionals are aroaced #y any #i and even saller #$sinesses and orani!ations 'ere clients are advised to tacle callenes in transactions and restr$ct$rin6 erforance and tecnoloy and ris and coliance. Moreover6 7PM8Ds seciali!ation in certain oter areas lie rovidin clients 'it Cliate Cane and S$staina#ility;related service offerins coes #ased on its i levels of e/erience and to$t leadersi6 #ot 'itin te Paistani firs and across o$r lo#al net'or. Its foc$s is on rovidin its clients 'it roressive service offerins tat are tailored to

teir re$ireents #ased on teir deoray6 sector6 and client;secific iss$es. e rinciles6 standards6 $idelines6 etodoloies and tools $sed to rovide tese seciali!ed services are lo#ally acceted6 tested over tie6 and are $dated on a contin$al staeolder feed#ac rocess.

2. Note on Naseeb Onine Ser!i"es #P!t$ %T&' (ient 2.1.

Histor+ &n joinin 7PM8 aseer Hadi - Co. i 'as allotted a rivate liited coany

no'n as asee# &nline Services. asee# &nline Services (Private) "iited (te ;II6 Main 8$l#er6 "aore. e Coany is a s$#sidiary of asee# et'ors Inc. FSA (te
2.2.

%ines o business8 Produ"ts and ser!i"es

Prod$ct ortfolio of asee# &nline Services consists of five ain rod$cts co risin of  G,o!ee. tat deals in jo#s6 G>asti. dealin in roerty6 Gasa. dealin in as6 Gasee#.co dealin in atrionial and GCo$rse$r$. dealin in co$rses offered online. Aon tese 5 rod$cts offered #y asee# &nline Services6 G,o!ee. is te only one esta#lised on a 'ider scale tat is reresentin te aret sare and reven$es of te coany. &ters are eiter on develoent stae or ave a very lo' aret. $s d$rin a$dit of asee# &nline Services (Pvt) " ajor foc$s of y a$dit tea 'as on tis one esta#lised #rand (,o!ee.).

,o!ee. is Paistan:s n$#er one online jo# site 'ic connects talent 'it oort$nity. ,o!ee. rovides services to te jo# seeers and eloyers #y rovidin te one  latfor for jo# searcin and irin6 resectively. ,&.P7 as a $e data#ase of to$sands of searca#le CJs and as catered to ore tan *?6502 eloyers. It rovides te eloyers 'it * ain rod$cts tat areE 1. Premium See"t E Prei$ select jo#s are te ost o'erf$l jo# listins on Paistan:s K1 jo# site. Prei$ select jo#s are reserved for to jo#s fro te eloyers and incl$de ,&.P7:s assisted irin services. ,&.P7:s tea of secialistDs

sort list te #est candidates for te osition6 #ein advertised6 fro te candidates received and cond$ct reliinary one screenin to esta#lis $ to date credentials as 'ell as interest for yo$r artic$lar jo# oort$nity. is service red$ces one of te ost tie cons$in asects of te recr$itin rocess. 2. To- 9obs E te jo#Ds oenin et star roinence on te 'e#site. e jo#s and coany "oo are dislayed roinently on front ae tat els increase candidate resonse $ to tree ties ore tan standard jo# ostins 3. Featured 9obs E tese jo#s offer e/cellent ,&I for cost conscio$s sall enterrises. >y ain a jo# feat$red6 eloyer can access all CJDs fro alicant ool. eat$red @o# red$ces an eloyerDs cost to ire and tie frae draatically. 4. (: Sear") En*ine E tis feat$re allo's scannin tro$ te availa#le CJDs in ,&.P7Ds data#ase to find te #est atc for any jo#. a CJ Searc Credit ive eloyers a$tori!ation to do'nload CJs fro 'itin ,&.P7 colete Candidate Pool tat tey identify as a otential ire. Advanced searc otions and 8oole lie scan tecnoloy ives ore acc$racy in findin te rit  erson for te jo# in seconds. 5. To- Em-o+erE tese acaes are desined to ive a anetic #randin 'it a lare coany loo on ,&.P7Ds front ae. o loyer offers ost  o'erf$l recr$itent tools =it access to Fnliited @o# Postins6 Jirt$ally Fnliited access to all CJs in ,&.P7 data#ase and ,P;lie recr$itent tools6 o loyer acae is an $natced recr$itent sol$tion. o loyer coes in Platin$6 8old6 Silver and >ron!e acaes and incl$des

,&.P7:s entire rod$ct line fro &P @o#s to Po'er ools at disco$nted rates. *. (areer Porta E =it ,o!ee.Ds career ortal a c$sto #$ilt career 'e#site is also rovided tat reflect te coany #rand colors and tees. A rofessional  jo# site els in strentenin te online identity and els reac $ality candidates 'o 'ant to no' a#o$t te coany and are 'orty of te recr$itin efforts. e career ortal is interated 'it te eloyerDs online site and  o'ered #y ,o!ee..

2.3.

Oners)i- stru"ture

Major sares in asee# &nline (Pvt) "td are eld #y asee# et'ors Inc. 'ic is its  arent coany. e reainin 3 sares are eld #y te follo'inE

•

Monis ,ean

C& - Cairan

•

"$tf$lla 7an

irector 

•

Sadia 7an

irector 

2.,.

Or*aniation ()art

;oard o &ire"tors< •

Monis ,ean

C& - Cairan

•

"$tf$lla 7an

irector 

•

Sadia 7an

irector 

()ie Finan"ia Oi"er E Sa#oor Aed Mana*er inan"e<  aveed Ater Auditors<  7PM8 aseer Hadi and Co %e*a Ad!isors<  rnst - Bo$n ord ,odes Sidat Hyder (B,SH).

2./.

Industr+ Ana+sis

,o!ee. is roject of its o'n ind. >efore it6 no s$c orani!ed effort ad #een ade to develo s$c a jo# ortal in 'ic ro!ee. is leadin in all atrices. &ter online ortals6 if any6 in aret are in no 'ay coara#le and none of tese can #e considered as asee# &nline (Pvt) "tdDs direct coetitor. It is terefore no'n as Paistan n$#er 1 jo# 'e#site.

2..

Asso"iated (on"erns

•

2.4.

 asee# et'or Inc (Parent Coany)

•

7PM8 aseer Hadi - Co (e/ternal a$ditor)

•

Ernst & Young Ford Rhodes Sidat Hyder (legal consultants)

Ma7or Re!enues = E-enses

Major c$n of reven$es at asee# &nline are attri#$ted to ,o!ee. in te for of ain fro different acaes it rovides as 'ell as reven$e fro te vario$s advertiseents at its 'e#site. Major e/enses at tis client ainly corised of adinistrative costs s$c as electricity6 rent6 salaries (esecially te 'e# develoers) and enerator. Aart fro it costs associated 'it Internet and I cons$a#les6 net'orin and e$ient $rade (co$ters) tat 'ere very fre$ent also fored an e$ally iortant cost in e/enses.

2.>.

Mar?et Position = Future Pros-e"ts

,o!ee. is leadin in te #$siness it is rovidin and oes to cater to $c ore n$#er of  eloyers and jo# seeers. Its aret osition can #e j$ded fro te follo'in statistics

3. Audit Met)odoo*+ A$dit etodoloy adoted #y any fir varies deendin on factors s$c as Si!e6 >$siness at$re6 and 8ro$ Str$ct$re etc. Ho'ever6 in ajority coanies ris #ased aroac is follo'ed. 7PM8Ds a$dit an$al is 7AM. It incl$des detailed inforation a#o$t every ead of te a$dit rocess for e/ale cas and #an6 investents6 e/enses etc. It ives ste # y ste ceclist for verification of te data tat coes $nd er tese eads. 7PM8 relies ore on analytical roced$res as coared to oter a$dit firs lie P=C tat relies on s$#stantive  roced$res 'ic creates a ajor difference of te a$dit etodoloy $sed. ,is assessent is te first ste in te a$dit rocess. An overall analysis of te ind$stry is carried o$t and it involves PS and S=&. Critical areas are ointed o$t 'ic #asically

re$ire ore foc$s d$rin te co$rse of a$dit. Jariance analysis is carried o$t 'ere tere is ore ris. Controls are identified and sereation of d$ties is ceced. I ersonnel ired #y 7PM8 cecs te clientDs soft'are ollo'in tis etodoloy6 once te ris assessent as #een done6 last year line ites are coared to te c$rrent year ites (te relevant a$dit eriod). Hi variations are investiated on initial #asis. en every line ite is 'ored $on $sin follo'in tecni$esE irst in test of controls6 'e eval$ate controls adoted # y te client for colete and acc$rate occ$rrence of transaction. =e in$ire client reardin te roced$res #ein follo'ed6 revie' te Standard &eratin Proced$res (S&Ps) and also cec te e/istence and effectiveness of eac control ileented #y erforin a 'altro$ of every control. en as er 7PM8  olicy6 'e erfor 25 &Cs on eac line ite on rando #asis. Controls are ceced and recorded of eac transaction. If it is o#served tat ost of te transactions 'ere cond$cted in line 'it controls6 ten 'e concl$de te line ite to #e satisfactory. Ho'ever6 In case tat it is o#served tat ost transaction did not follo' te controls6 'e raise o$r &Cs sale fro 25 to 4? and aain tey are revie'ed. If te concl$sion reains $nsatisfactory6 it is reorted to te >oard of irectors of te Client. After &Cs6 transaction testin is erfored on transactions incl$ded in "ine ite 8"(s) of te coany. $#er of transactions is deterined $sin 7PM8 Salin Plan. It is an a$toated soft'are alication tat alies ateriality6 ris6 and sale selection on te in$t data (8" ransactions) and rovides te $ser 'it n$#ers of transaction tat $st #e vo$ced to cover te ris of isstateent of occ$rrence6 e/istence and acc$racy. 7PM8 as * standard cecs tat $st at least #e ceced in transaction testin6 tese incl$de GInvoice in te nae of te Coany6 G,ecorded 'it correct Ao$nt6 and ,ecorded in correct acco$nt6 G=H ded$cted6 Ge/ense for te $rose of #$siness and Graced into >an Stateents. is ives a clear $nderstandin of te transactions incl$ded in te line ite 8"s. ransaction testin is $s$ally cond$cted on transactions 'ic are not of reetitive nat$re (in ao$nts) and are distinct to eac transaction incl$ded in te artic$lar line ite 8". In case6 te transaction are of reetitive nat$re (#ot in ao$nts and nat$re)6 'e cond$ct an analytical 'orin. or e/ale6 if 'e no' tat te coany as to ay ,s 2 Million ontly for *

onts6 in tis case 'e $ltily ,s 2 Million 'it * onts i.e. ,s * illion and coare tis ao$nt 'it 8" #alances. e difference $ to 5L is inored. Any difference a#ove 5L is investiated and recorded 'it te client to te satisfactory level. ifferent a$dit roced$res are $sed to verify te ass$tions of val$ation6 acc$ra cy6 coleteness6 c$t;off etc. In case of an evidence of fra$d or non;coliance6 ateriality is ceced accordin to 'ic te decision to $alify or not is deterined. If te fra$d does not  ass te ateriality tresold6 efforts are ade to still resolve te iss$e. =en overall ris is lo' and since 'e erfored test of controls terefore additional  roced$res i.e. s$#stantive roced$res are $sed alon 'it tese testin roced$res. ese  roced$res incl$de soe coon a$dit ractices lie tird arty verifications6 insection of doc$ents6 recalc$lation of n$#ers6 re;erforance of te for$lae alied6 circ$lari!in confirations and ysical verification of assets as art of a$dit. ere are transactions 'ic re$ire roer doc$ents for teir s$ort. .. P$rcase of land. Sec$rity deosits etc. =e o#tain tese doc$ents for o$r a$dit record. Also for >alances standin in 8"s 'ic relate to e#tors6 creditors6 advances (received and ade) and #an #alances6 'e circ$lari!e #alance confiration to te arties vendors #an directly.

,. A--i"ation o IT in Audit 7PM8 as a searate I deartent and $ses G;A$dit soft'are as art of its a$dit etodoloy 'ic is 7AM tecnically. ;a$dit is a lo#al electronic a$dit anaeent tool tat 'as created #y 7PM8 to rovide te etodoloy6 $idance6 and ind$stry no'lede needed to erfor efficient6 i $ality a$dits. It is c$stoi!ed a$ditin soft'are 'ic in$ts re$ired data fro a$ditor6 assesses te ris (already incororated in soft'are)6 ens$res te coleteness of data and ives an assessent once a$dit is colete. =orin aers are first  reared on Microsoft /cel and are tan attaced in od$les of ;A$dit (as er certain instr$ctions). ese 'orin aers are analy!ed #y ;A$dit and c oncl$de on te ris6 coleteness and overall a$dit of Client. H$e data in$t s$c as 'orin aers6 scanned doc$ents6 oter related s$ortin doc$ents6 ateriality levels and an y oter fors are filled in  A$dit to ens$re its coleteness. Anoter $se of I alication is 7PM8 Sa lin

Plan. is aain is c$stoi!ed soft'are 'ic enerates te n$#er of transactions tat $st #e vo$ced to cover te ris of aterial isstateent in occ$rrence6 e/istence and acc$rac y of transactions in 8"s of te Client. >ot tese alications are revie'ed #y @o# In care6 Manaer and Partner #efore 'e rovide a$dit oinion (reort) to te client. ;a$dit also eled 7PM8 to red$ce its aer 'or and save its storae costs as no' all of te 'or is done on tis e;a$dit soft'are #$ilt in Microsoft /cel. It also aes s$re tat no iortant iece of a$dit inforation or control is left o$t as yo$ cannot ove on $nless yo$ fill in te re$ired controls and ased inforation. $s6 it rovides te #asis for a ore relia#le and colete a$dit 'ile red$cin te need of aer and storae costs at te sae tie.

/. Note on Areas Assi*ned /.1.

Audit Pan

 asee# &nline 'as a client of 7PM8 for te tird consec$tive year. e day 'e arrived at o$r client6 te jo# in care ad an introd$ctory eetin 'it te director of inance6 Mr. Sa#oor 'o ten introd$ced $s to oter relevant officials at te inance deartent. After tat te a$dit lan 'as devised. eadlines 'ere set in disc$ssion 'it te 7PM8 anaer6 irector inance and @o# in care for vario$s tarets. 7eein in vie' te revio$s yearDs financial stateents and a$dit roced$res 'ic 'ere carried o$ t for te sae coany6 te jo# in care entioned te iortant areas 'ic 'ere to #e stressed $on. e ain areas to #e stressed $on 'ere te reven$e and ayroll. After tat6 different eads 'ere assined to te tea e#ers. I 'as not assined any area in artic$lar o'ever te area y jo# in care 'anted e to assist in te ost 'as te area of GPayroll of y a$dit Client Gasee# &nline Services (Private) "iited.

/.2.

Ste-s -erormed b+ me indi!idua+

irstly I ade a G"ead 'ic so'ed te coarison of c$rrent year 8" #alances 'it teir resective last year #alances. e client ad iven $s one co$ter 'it access to its Peactree soft'are 'ic ade it easier for $s to coare te t'o year stateents.

 e/t6 an analytical 'orin 'as ade for Salaries6 'aes and oter coensation ade 'ic 'as an interestin yet tecnical 'orin to #e erfored. e roced$re 'as no'n as Salary; 8lo#al. My s$ervisor e/lained to e o' tis analytical coarison 'as to #e carried o$t and $on is directives6 I $sed te ao$nt of salary% 'aes etc fro ece#er 2?11 Salary Seet of te coany and $ltilied tis ao$nt 'it 12 onts. en I added te iact of ne' joiners 'o joined te coany d$rin te eriod $nder revie'6 s$#tracted te iact of leavers d$rin te eriod $nder revie'6 and added te f$rter iacts of &>I6 Increents6 Medical and >on$s to eloyees6 aily allo'ance6 and 8rat$ity e/ense for te year. e s$ of all tese to te rod$ct of 12 ont salary once calc$lated ave e te #alance tat so$ld ave #een e$al to c$rrent year 8" #alances. &n coarison6 it stood #elo' 5L6 t$s concl$ded satisfactory. est of controls on ne' joiners and leavers 'ere erfored in 'ic I assisted y jo# in care. In tis I stated te effect of leavers and joiners in financial ters on te client d$rin te year tain into acco$nt te onts or in soe cases days tey served and $ltilyin te eriod 'it teir salary. Control 'eaness 'ere o#served6 'ic is to #e reorted in Manaeent "etter  alon 'it inancial Stateents. en6 I 'ored on individ$al ites 'it y jo# in care. >on$s ao$nt 'as ve rified fro >on$s Aroval letter sined #y C& Mr. Monis ,ean. In individ$al ites6 I first 'ored on Provident f$nd 'ic 'as 0L of te #asic salary of eac eloyee. My calc$lations atced 'it tose of te client as variance 'as as little as to #e ?L.  e/t6 it 'as &>I. I verified tat all te ersons reistered and eloyed #y te coany are contri#$tin te secified ao$nt6 tis ao$nt $st #e ded$cted fro teir ross salary6 and te loyer too is ain a contri#$tion 'ic is to #e 5 ties ore tan te eloyeeDs contri#$tion (,s 35? 'ic after Sete#er arose to ,s 4??). >ot tese ded$ctions 'ere added and verified fro &>I Callans. A coy 'as retained of eac ont &>I Callan fro client as evidence. Calc$lations 'ere also don e for car allo'ances tat 'ere iven to soe senior eloyees. My total varied #$t it 'as a neative 2L 'ic 'as inora#le. I also  erfored contract$al staff variance analysis in 'ic I ad to as te client a#o$t te reasons of  'y vario$s #alances ad ore tan 5L variance.

inally6 Medical allo'ances for te year 'ere co$ted. It 'as te ost tecnical 'or as I ad to cec for eac and every invoice of osital doctor tat eloyees ad s$#itted. "ater6 y jo# in care looed into it and ade relevant disclos$res. or cecin and ass$rance $rose6 y 'orin aers 'ere revie'ed #y y @o# In care6 anaer and Partner. ,evie' oints 'ere re'ored and te final 'orin aers 'ere attaced in  A$dit. Aart fro 'orin on ayroll I also erfored several oter tass s$c as rearin a rent lo#al. I o#tained all te rental areeents fro client ertainin to its oter offices. I toro$ly st$died te and as er tose rental areeents6 I calc$lated 'at #alances 'ere to so' $ for rents and coared it 'it totals as er client. Also I 'as iven te tas of ysical confiration of vario$s assets at ead office. I ot lists fro te client6 not roerly aintained6 a#o$t te va rio$s assets of te client. I carried o$t  #ot Glist to floor and Gfloor to list tecni$es in verifyin air conditioners6 f$rnit$re6 co$ter  systes6 enerator6 FPS6 3 raic desin "atos and te lie. I also ad to ac$ire certain  #an and leal confirations tat 'ere to #e incl$ded in o$r 'orin aer files.

/.3.

Probems obser!ed = Soutions

Since I 'as not avin an y one artic$lar area to loo into I cae across vario$s  ro#les in different areas d$rin tis 'ole a$dit. It 'as often te case tat te transactions tat I ad to vo$c 'ere often not in teir relevant files or in te roer orderin so it 'as a assle to locate te. I $sed to as te anaeent a#o$t te resective doc$ents and t$s soeties anaeent sorted te and at oter ties I $sed to locate te. =en I 'as assistin in te area of reven$es6 it 'as so te case tat te Coany ad ore tan 4? 'e#sites reistered in its nae and asee# et'or FS6 #$t 'as only #ooin te reven$e of ro!ee. in its #oos. I ersonally looed into it and fi$red o$t tat ajority 'e#sites 'ere eiter inoerative or 'ere an add;on to ro!ee.. is 'as ceced tro$ insectin te vie';so$rce inforation of 'e#site in 'ic it 'as clearly stated on ever site tat it 'as a rod$ct #y asee# &nline; ,o!ee.. Also te Coany received all reittances of its credit card sales in City >an Mercant Acco$nt6 'ic is not in te nae of te Coany. is atter 'as disclosed in ".

Moreover6 e Coany did not aintain roer fi/ed asset reister. ere 'as no asset 'ise detail of fi/ed asset and no codin of fi/ed asset in resect of Proerty Plant an d $ient 'ic created ro#les 'en it cae to verify assets ysically. =ile oin tro$ H, files of resective eloyees for ayroll area6 I fo$nd o$t tat tere 'ere a n$#er of eloyees for 'o no file ad #een ade or $dated and so I ad to follo' $ 'it te relevant deartentDs ead to et secific details of eloyees. =e 'ere not rovided ade$ate stationery 'ic also delayed o$r 'or in te #einnin of te a$dit assinent. "ater6 tere 'as anoter iss$e of soe ro#le 'it te rinter. Also reardin #ans and leal confirations6 tere 'ere constant delays.

/.,.

Sam-in* Te")ni@ue

7PM8 $ses 7PM8 Salin lan. Materiality level for eac Client is calc$lated. is ao$nt is entered alon 'it oter secifications related to te client #ased on o$r ris assessent. e 7PM8 salin lan rovides te n$#er of transaction tat $st at least #e vo$ced to cover te o$lation $nder revie' for cecin its occ$rrence6 e/istence and acc$racy. is n$#er of transactions rovided #y salin lan incl$des aterial (in ao$nt) transactions as 'ell as transaction #elo' o$r ateriality level to ens$re te cov erin of colete  o$lation.

. A note summariin* +our e-erien"e it) t)e audit irm )i*)i*)tin* essons earned in t)e ied o  Mana*ement s?is< I learnt tat anaeent sills are e/treely iortant in order to eet deadlines. Meetin deadlines in tie are very iortant and any 'or tat is delayed 'ill reflect as #a d anaeent sills. ere are ties 'en one is anded ore tan one tas si$ltaneo$sly and it is at te discretion of tat erson to do soe tass #efore oters. is rocess of rioriti!ation o'ever is only ossi#le if one is a#le to anae te tass efficiently.

Inter-ersona s?is Interactin 'it a tea in 'ic all 'ere y seniors 'as too elf$l in develoin interersonal sills in e. As tere are eole of all tyes and on different ierarcies 'itin an orani!ation it is 'it te rocess of 'atcin and learnin tat one is a#le to interact in te rit anner 'it eac of te. is 'as 'at can #e called an e/eriential learnin for e #y interactin 'it eole fro all ierarcies.

Presentation s?is My anaer GMiss H$a >asir alon 'it oter e#ers of y tea al'ays enco$raed e to e$ally contri#$te in all disc$ssions. ere 'ere ties 'en I ad to  resent y oinions and vie's on irovin soe rocesses or 'ays of doin tins6 and 'it te  rocess of feed#ac6 it 'as refined over tie.

Or*aniationa ;e)a!ior =orin at a client ena#led e to learn of teir atosere and eled e to $nderstand te 'orlace c$lt$re6 and ence te orani!ational #eavior of staff. It is an iortant iece of inforation #eca$se as an a$ditor one needs to #e in constant to$c 'it te client staff and te  #est 'ay to eet deadlines is to 'or in arony 'it te.

Time mana*ement s?is I learned tat 'or atters ore tan 'orlace tiins. Peole often need to sit late in order to finis off teir assinents. is is not necessarily a #ad idea #eca$se d$rin office o$rs6 it is r$dent to ater all te ieces of inforation fro client6 and ten sit after o$rs (if it coes to tat) and consolidate inforation 'en yo$ do not need client interaction. I faced tis sit$ation to'ards te end of o$r a$dit 'en 'e 'ere finali!in tins. is falls $nder tie anaeent.

>. Ot)er ree!ant and interestin* earnin* o--ortunities t)at "ame a"ross durin* t)e interns)i-. Soe very interestin and e/citin e/eriences as art of y internsi 'ere te stoc co$nts I erfored. My first stoc co$nt 'as at H yerstar Mall located in ortress Stadi$ "aore. I 'as to reort at 1?E??  sar and te stoc co$nt 'as to contin$e till ne/t ornin. I reaced at te rit tie and et soe ne' eole fro te tea 7PM8 'o 'ere also tere for te stoc co$nt. =ile te all 'as #ein closed6 'e 'ere #eeaded to'ards office area 'ere 'e 'aited for fe' in$tes #efore te all 'as finally closed do'n and 'e 'ere called to start $ 'it o$r tass. o o$r advantae6 stoc co$nt at 'areo$se 'as already co leted #y anoter tea of 7PM8 in tat sae ornin. So 'it tat ainess of not stayin at an area 'ito$t Air Conditionin6 'e entered te all. As it 'as y first e/erience and I  ad no no'lede of o' tis tas is to #e carried o$t6 y s$ervisor at jo# Mr. =aas Hafee! alon 'it oter e#ers6 e/lained e o' tis rocess 'as to follo'. &nce te listins 'ere  reared and anded o$t to $s 'e 'ere allotted areas #y o$r s$ervisor. I 'as ade in care of area tat corised of "C - " screens6 cell ones6 refrierators and ovens. ese ites are ost liely selected for stoc tae #eca$se tey reresent a aterial ao$nt and te tecni$e alied in any stoc tae are Glist to floor or Gfloor to list. I randoly selected  rod$cts and 'as a#le to aly #ot tecni$es to identify tese ites. =ile alyin tese tecni$es I also atced rod$ct code and ite code on #ot te rod$ct and te list. =at I can say a#o$t tis e/erience is tat Hyerstar anaeent 'as active eno$ and ad iosed very efficient internal controls d$e to 'ic tere 'as ardly a case tat I 'asnDt a#le to locate anytin. &nce 'e 'ere done 'it 5? ites selected at rando6 'e all anded over o$r seets to te s$ervisor and left te all to ave a #reafast toeter. After'ards 'e all left for o$r oes. e second e/erience I ad of stoc co$nt 'as 'en I 'as sent to aisala#ad6 as art of 7PM8 7araci assinent o$tso$rced to 7PM8 "aore. is tie6 I ad one jo# in care 'it e and 'e t'o 'ere to erfor stoc co$nt at 'areo$ses of alda oo ds "td and =a!ir Ali 7an Ind$stries. =e left early in ornin tro$ A=&& and received a very 'ar 'elcoe fro o$r client. e client secially cae to receive $s at A=&& terinal fro 'ere e too $s to is 'areo$se. =e 'ere served refresents and after avin te 'e #ein to 'or. =ile y jo# in care dealt 'it all doc$ entation I #ean to roa aro$nd and started 'it te t'o tecni$es of stoc co$nt. After randoly selectin sales fro lists as 'ell as

floor I ass$red y s$ervisor tat te stocs fro #ot te coanies 'ere correctly stated. Ho'ever at tis lace 'e identified a 'eaness tat instead of avin a co$teri!ed stoc record syste an$al records 'ere #ein et tat 'o$ld ae it diffic$lt in ters of stoc clearance olicy (I& "I&). My tird stoc co$nt too lace at >erer aints 'ic 'as te tas of fo$r da ys. e  rod$cts 'ere in lare n$#er and 'ere classified in tree cateories ra' aterials6 'or in  roress and finised stoc. e client 'as not s$ortive and 'anted $s to cond$ct stoc tae alon 'it teir eloyees as tey ne' tere 'ere any a#i$ities. =e ref$sed to follo' te and ased for listins so tat 'e can indeendently do o$r jo# once erfored #y te eloyees. After #ein rovided 'it te listins6 sinificant deviations arose and so 'e increased o$r sale si!e to #e tested. Pro#les s$c as rod$ct codes did not atc6 rod$cts at list did not e/ist6 and daaed stoc 'as not identified as daae etc 'ere coon. >$t te tin tat cae to e as a #i s$rrise 'as to find o$t sealed ety cartons tat 'ere s$osed to #e art of inventory #$t ad #een stolen. is indicated oor internal controls. =e 'rote do'n all s$c findins and ot sinat$res fro s$ervisors at >erer. at 'as very to$ e/erience for e as te ris 'as too i and 'e ad to cec as $c stoc as ossi#le. All tese stoc co$nts indeed eled e learn vario$s lessons. I learned o' to carry o$t stoc tae6 o' to deal rofessionally 'it te clients to ae te aree $on yo$r decision6 o' to test internal controls of any #$siness. &verall6 tis 'ole e/ erience 'as tr$ly a reat learnin oort$nity and it roved very $sef$l to ive e an insit of te ractical field.

=or Cited


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<&$r A$dit Metodoloy .< Our Audit ethodology. 7PM86 n.d. =e#. 12 Set. 2?13. ttE'''..coeenservicesa$ditaeso$ra$ditetodoloy.as/

<,&.P7 ; =y =e Are K1N< !O"##.$% . Coyrit Q2?13 ,&.P76 n.d. =e#. 12 Set. 2?13. ttE'''.ro!ee.'y;'e;are;n$#er;1.