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Conducts of the Internship Training Place of Internship: V. Ariaratnam & Co Chartered Accountants No 245, Kasthurijar Road, Jaffna. Supervisor: V.Ariaratnam, Chartered Accountant. Ariaratnam & Co, Jaffna. Department Supervisor: Dr. V. Sritharan Senior lecturer Department of Accounting, Facul...

Description

Conducts of the Internship Training

Place of Internship:

V. Ariaratnam & Co Chartered Accountants No 245, Kasthurijar Road, Jaffna.

Supervisor:

V.Ariaratnam, Chartered Accountant. Ariaratnam & Co, Jaffna.

Department Supervisor:

Dr. V. Sritharan Senior lecturer Department of Accounting, Faculty of Management Studies and Commerce, University of Jaffna, Sri Lanka.

i

Acknowledgement It is my pleasure to acknowledge my deep sense of gratitude to Faculty of Management Studies and Commerce, University of Jaffna for giving me an opportunity to explore my abilities via this internship program. In performing my internship successfully I had to take the help and guidance from some respected persons. First of all I am grateful to God, who gives me sound mind & sound health to accomplish my internship program. The completion of the task gives me much pleasure. Then, I would like to express my sincere gratitude to our faculty Dean Prof.T.Velnampy, Prof.B.Nimalathasan (Head Department of Accounting) and Dr. V. Sritharan (Senior lecturer), who is my supervisor for the internship training program which provided a golden opportunity for me. I also wish to express my gratitude to my internship mentor Mr. V.Ariaratnam, for the valuable guidance and advice. He inspired me greatly to work, commit in this internship session. His willingness to motivate me contributed tremendously to my internship session. I would like to record my sincere appreciation and gratitude towards all the officials and trainees of V.Ariaratnam & Co, Jaffna, without whose kind assistance, my internship program would not have succeeded. The facts and other vital information provided by them have contributed towards making this project as comprehensive as possible. I am indeed thankful to them. I am also very thankful and grateful towards my seniors, colleagues and authorities of our Faculty for their support, encouragement, and valuable suggestions for the completion of this project as well as for their generosity and cooperation. In addition, I would like to thank my classmates because of the contribution from all of them while discussing the topic, experience and ideas of this internship session We discussed together to find ideas that can be included in the report. Last but not the least, I would like to express my sincere thanks to all my family members, friends and well-wishers for their immense support and best wishes throughout the internship duration and the preparation of this report. I believe that this report will be a useful asset not only for the academic institution, but also for all those who are interested to learn about internship experiences in auditing and consulting firm.

ii

Letter of Declaration I certify that this report does not incorporate without acknowledgement, any material previously submitted for a degree or diploma in any university, and to the best of my knowledge and belief it does not contain any material previously published or written by another person, except when due reference is made in the text.

……………… Ms.K.Tharsika

……………… Date

May 2017.

iii

This is to certify that the Internship Report on

Internship Training Final Report at V. Ariaratnam & Co Chartered Accountants

K.Tharsika Reg. No.: 2012 / BAD / 269 Index No.: 12269

has been accepted by the Faculty of Management Studies & Commerce, University of Jaffna, in partial fulfillment of the degree requirements of the Bachelor of Business Administration Degree Specializing in Accounting.

………………………… Supervisor

…………………………… Head

…………………………… Dean

………………………… Date

…………………………… Date

…………………………… Date

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Executive Summary This report summarizes my internship program from January 2017 to April 2017 covering 450 hours of work. After the end of Final year first semester, we were required to indulge in 450 hours in an Internship Programme as per the schedule of Bachelor of Business Administration (BBA) Honors degree program, Department of Accounting, Faculty of Management Studies and Commerce, University of Jaffna Sri Lanka. Thinking about my future career path I always wanted to do something different from others. Likewise, in the case of selection of the firm for internship, I spent some time thinking about which firm would be most suitable for my career development. I was always reminded of that being an Accounting Specialisation student, I should select firm related with my academic study. With this in mind, I consulted websites, Lecturers, seniors, my colleagues and friends. Finally, based on the information obtained from them I came to the conclusion that an audit firm would be suitable for me. As I am a student of Management faculty, I wanted to know how business firms do accounting and what role does it play in the growth and development of business activities. I made inquiries to have general ideas on audit firms in Jaffna and their activities. I selected Ariaratnam & Co and applied for a position as a trainee. My internship started for me when I was called by a Ariaratnam & Co personnel confirming my place in the firm as an intern a week after I dropped my resume, advising me to join from the 2nd of January, 2017 for a three month period.

I was widely engaged with practical oriented and corporate world atmosphere during the internship period. I gained different sides of experiences with the assistance from the officers. Even though I am unable to express all my experiences in this report I should mention that I gained tremendously from internship. I think that the internship skills would play a vital role in my career path. To sum up, my internship experience at Ariaratnam & Co was excellent and I have filled my empty cup with so many lessons that I take away with me. As I aspire to pursue Chartered Accounting as a profession in the future, this experience will certainly give me a head start in my professional career in the future when I start off as an articled student. Besides, interning at an Audit firm is a valuable addition to my resume. v

In this internship report I have described in detail my experiences during my internship period. The internship report contains a background of the firm and the activities, tasks and projects that I have worked on during my internship.

Abbreviations QB

Quick Book

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Table of Contents Conducts of the Internship Training .................................................................................................. i Acknowledgement ........................................................................................................................... ii Letter of Declaration....................................................................................................................... iii Certification ................................................................................................................................... iv Chartered Accountants.................................................................................................................... iv Executive Summary......................................................................................................................... v Abbreviations ................................................................................................................................. vi Table of Contents .......................................................................................................................... vii CHAPTER 1 BACKGROUND OF THE ORGANIZATION ........................................................... 1 1.0 Introduction ........................................................................................................................... 1 1.1 History................................................................................................................................... 1 1.2 Mission, Vision, Values and Objectives of the Organization .................................................. 2 1.2.1 Mission ........................................................................................................................... 2 1.2.2 Vision ............................................................................................................................. 2 1.2.3 Values ............................................................................................................................. 2 1.2.4 Objectives ....................................................................................................................... 2 1.3 Keys to Success ..................................................................................................................... 3 1.4 Additional Values of the Organization ................................................................................... 3 1.4.1 Working with Firm’s Clients ........................................................................................... 3 1.4.2 Developing People .......................................................................................................... 3 1.4.3 Strengthening Communities ............................................................................................ 4 1.5 Major Markets and Customers ............................................................................................... 4 1.6 Operational Network Organogram and Organizational Structure of organization.................... 4 1.7 Qualification of Supervisor in Charge .................................................................................... 5

vii

CHAPTER

2

SERVICES

OF

FIRM

AND

APPLICATIONS

OF

THEORETICAL

KNOWLEDGE ..............................................................................................................

6

2.0 Introduction ........................................................................................................................... 6 2.1 Audit and Other Assurance Services ...................................................................................... 6 2.1.1 Application of Theoretical Knowledge to Audits And Other Assurance Services............. 7 2.2 Accounting Services .............................................................................................................. 9 2.2.1 Application of Theoretical Knowledge to Be Accounting Services Procedures ................ 9 2.3 Tax Consultancy .................................................................................................................. 10 2.3.1 Application of Theoretical Knowledge to Be Tax Consultancy ...................................... 10 2.4 Financial and Management Consultancy .............................................................................. 10 CHAPTER 3 THE TASKS AND DUTIES .................................................................................... 12 3.0 Introduction ......................................................................................................................... 12 3.1 Accounting Related Tasks and Duties .................................................................................. 13 3.2 Auditing Related Tasks and Duties ...................................................................................... 16 3.3 Tax Planning Related Tasks and Duties ............................................................................... 18 3.4 Administrative Work Related Tasks and Duties ................................................................... 18 CHAPTER 4 KNOWLEDGE GAINED, SKILL DEVELOPMENT & WORK EXPERIENCE .... 20 4.0 Introduction ......................................................................................................................... 20 4.1 Knowledge Gained .............................................................................................................. 20 4.2 Skill Development ............................................................................................................... 22 4.3 Self Changes ........................................................................................................................ 23 4.4 Experience of Real World Accounting And Auditing Practices ............................................ 24 CHAPTER 5 CONCLUSION AND RECOMMENDATIONS ...................................................... 25 5.0 Introduction ......................................................................................................................... 25 5.1 Conclusion ........................................................................................................................... 25 5.2 Recommendations for Improvement .................................................................................... 26 viii

5.2.1 Recommendations for The Improvement Of The Firms ................................................. 26 5.2.1.1 SWOT Analysis ..................................................................................................... 26 5.2.1.2 Recommendation.................................................................................................... 29 5.2.2 Recommendations for The Future Undergraduates ........................................................ 30

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CHAPTER 1 BACKGROUND OF THE ORGANIZATION 1.0 Introduction This chapter briefly describes the background of the training organization. It covers the history, location, Vision & Mission of the organization, keys to success and additional values of the Organization and the organizational structure.

1.1 History V.Ariaratnam & Co is a multi disciplinary professional firm established in 1983. It was registered with Institute of Chartered Accountants of Sri Lanka and functioning in both Colombo &

Jaffna.

The

firm

has

two

partners

Mr.V.Ariaratnam

F.C.A,

FSCMA

and

Mr.S.Raveendranathan F.C.A. V.Ariaratnam & Company has five professionals and a staff of 30 with a branch in Jaffna. The partners are supported by the team of accountants and consultant with wealth of experience in wide fields. The firm’s staffs have the benefit of the strong professional training provided by the firm and all the services are provided by us are performed using methodologies and best practice in accordance with international standards. The firm provides advice on range of business matters such as company incorporation, managing of company accounts and financial assurance services amongst others. Our Audit division can exams your financial statement and accounting records to give an independent opinion on reports to shareholders, Directors, Trustee and others. The firm is doing assignments to: v Sole Proprietorship to limited liability companies carrying out Manufacturing, Exports and imports activities. v International NGOs such as FORUT, OXFARM (GB), OXFARM (AUSTRALIA), CCFC (CANADA) FER their projects in the North & East of Sri Lanka. V.Ariaratnam & Co is a training partner with the institute of Chartered Accounts of Sri Lanka and Association of Accounting Technicians of Sri Lanka.

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Contact details of firm Colombo office details Address: 48-3B, 1/1, Dharmarama Road, Colombo 06. Tel : 021 2225372

Jaffna branch details Address: No. 245, Kasthuriar Road, Jaffna. Tel: 011 2506194

1.2 Mission, Vision, Values and Objectives of the Organization 1.2.1 Mission V.Ariaratnam & Co exists to provide complete, reliable and high quality auditing and consulting services to individuals and institutions, be it manufacturing, trading, tourism, financial, governmental, non- governmental, medical, hydro power, hotels, and any other sectors. 1.2.2 Vision The firm's vision is to be the premier auditing, accounting, tax and business consulting firm by every measure that matters. 1.2.3 Values The values of the organization are as follows: v Valuing People v Building Client Relationships v Upholding Quality and Integrity 1.2.4 Objectives There are mainly two objectives for V.Ariaratnam & Co. These are indicated below. v The overall objective is to focus the activities towards its specialized services (auditing, accounting, tax and business consulting) and to become a leader in this niche in the country. v Next objective is growth which is “ To expand the business at a rate that is both challenging and manageable, serving the market with innovation and adaptability”.

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1.3 Keys to Success V.Ariaratnam & Co is successfully run from 1983 to till now. It earns favorable goodwill from their services. Number of clients and customers of the company constantly increased from the starting period of the company because of their reliable , relevant and accurate auditing, accounting, tax and business consulting services for their loyal customers. Lot of firms crumbled within a short period of time from their starting because they couldn’t cope up with current business world which is very complex and competitive. However, this company is running successfully for more than 30 year in this field. Following are the keys for success for V.Ariaratnam & Co. v Developing visibility to generate new business leads. v Relationships with clients (developing loyal, respectful, and intensive contact with both clients and potential clients). v Marketing/strategy and networking with other professionals. v Responsiveness to clients (fast response time for special problems). v Quality (especially in reporting information). v Excellence in fulfilling the promise. v Openness: languages and will power for creating inter regional and international contacts.

1.4 Additional Values of the Organization 1.4.1 Working with Firm’s Clients V.Ariaratnam & Co has the right multi-disciplinary team for their business professionals from the

Sri Lankan

employing

network of professionals. Working among them in

collaborative style, V.Ariaratnam & Co chartered accountants gain a clear understanding of their clients’ organizations and strive to identify issues before they become problems. If necessary they hire specialists they need backed up by leading practices, methodologies and tools. 1.4.2 Developing People V.Ariaratnam & Co attract talented people from diverse backgrounds. Their emphasis on inclusiveness matters more than ever today. As business challenges become more complex, V.Ariaratnam & Co need to call upon the widest spectrum of views and opinions to address them. Their open culture offers continuous personal and professional development. When their people grow and succeed, their company benefits. 3

1.4.3 Strengthening Communities V.Ariaratnam & Co helps to improve regulatory regimes and company reporting models. V.Ariaratnam & Co promotes transparency in financial reporting and uses their influence to strengthen global corporate governance. The company encourages entrepreneurship, which leads to growth, jobs and prosperous communities. Their people share their business skills and knowledge with others in their communities.

1.5 Major Markets and Customers The market for V.Ariaratnam & Co is huge and also it expands day to day. The market for this company is spread over many parts of SriLanka. The Jaffna branch has big markets and more clients located inside and outside of Jaffna. For example Jaffna branch offers their services to Kilinochchi and Mannar. The company market is not limited to some particular type of business or any particular sector. Rather it includes businesses, enterprises and institutions whether small, medium or big related to any sector namely Education, Financial Institutions, Trading, Hydro-power, Hospitals, Hotels, NGOs, Business Enterprises, Manufacturing, etc. The firm has provided consulting and auditing services to maj...