DECLARATION

I Wendje Taka (11-000320) hereby declare that this report is

written by me and is a result of personal internship done at

Akintola Williams & Co, from the 7th April 2014 to the 4th of

July 2014.It has not been presented before or by any other

person for academic purposes. All borrowed ideas have been

acknowledged in the references and quotations.

_____________________

Wendje Taka

Date:

Student

This Declaration is confirmed by:

______________________

Mr. Suh Jude Abenwi

Sign: Date:

ii

iii

CERTIFICATION

This is to certify that this working experience report is the

original work of WENDJE TAKA, 11-000320 of the department of

accountancy in the School of Business, Catholic University

Institute of Buea. This report is written after completion of

a three months working experience from the 7th of April to the

4th of July 2014, at Akintola Williams & Co Limbe.

Academic Supervisor

Field Supervisor

Name: Mr Suh Jude

Name: Mr Paul Acha

Signature:

Signature:

Date:

Date:

Programme Coordinator,

iv

School of Business

Name:

Signature:

Date:

v

DEDICATION

To

My beloved family

vi

ACKNOWLEDGEMENTS

This work has been realized, thanks to the academic, moral and

financial support of a number of collaborative persons and God

Almighty, the provider of knowledge, inspiration and wisdom. I

wish to give my sincere gratitude to Mr. Suh Jude, my academic

supervisor, Mr. Chofor Joyvice, and Mrs. Abia Elizerbert.

Furthermore, I am grateful to my family, Mr Acha Paul, Mr Ray,

Mr Benedict, Mr Serge, and Mr. Achankeng Collins for their

financial, academic and technical contributions to the

realization of this report.

Special thanks go to my friends Mr Njoh, Nana Alexie, Jinya

Carlson, William Parh and Zavier Alexandre who were always

there to encourage me to keep on with my report.

vii

SUMMARY

This report is based on work experience carried out at

Akintola Williams & Co Limbe, for a period of three months.

This report comprises of four chapters were in, chapter one

talks mostly on orientation of the student, meanwhile chapter

two gives an organisational structure of the firm and its

historical background. The next two chapters, chapter three

give a thorough explanation on the activities carried out by

the intern, and it shows how the intern has compared theory

with practise. This report end with the last chapter which

gives the difficulties face by the intern and some of the

recommendations and conclusion given by the intern. All

borrowed knowledge are acknowledged in references.

.

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ix

TABLE OF CONTENTS

DECLARATION..................................................IICERTIFICATION...............................................IIIDEDICATION...................................................IVACKNOWLEDGEMENTS.............................................VABREVATIONS................................................VIII

CHAPTER ONE

INTRODUCTION

1.1ORIENTATION OF STUDENTS...................................11.1.1 ORIENTATION AT CUIB.......................................11.1.2 ORIENTATION OF STUDENT AT THE COMPANY........................31.2IMPORTANCE OF INTERNSHIP..................................31.3OBJECTIVES OF CARRYING OUT THE PROJECT....................31.4 DEFINATION OF TERMS......................................4

CHAPTER TWO

PRESENTATION OF AKINTOLA WILLIAMS & CO

2.1 HISTORICAL BACKGROUND....................................52.2 PRODUCT AND SERVICES OFFERED BY THE FIRM.................52.3 ORGANISATIONAL STRUCTURE.................................7

CHAPTER THREE

ACTIVITIES CARIED OUT BY THE INTERN

3.1 AUDIT MANAGEMENT.........................................93.2........UNDERSTANDING THE ENTITY (INCLUDING DOCUMENTING ANDCONFIRMING THE ACCOUNTING SYSTEM AND INTERNAL CONTROL)......123.3 THE AUDIT REPORT........................................193.4 COMPARING THEORY AND PRACTICE...........................22

CHAPTER FOUR

CONCLUSION AND RECOMENDATIONS

4.1 CHALLENGES................................................24

x

4.2 RECOMMENDATIONS............................................244.3 CONCLUSION................................................25REFERENCES..................................................26

ABREVATIONS

GAAP Generally Accepted Accounting Principles

OHADA Organisation Pour Harmonisation en Afrique

du Droit des Affaires

CEMAC Communnute’ Economique et Mone’taire de

L’Afrique Centrale

Dr Debit

Cr Credit

GAAS Generally Accepted Auditing Standards

LOE Letter Of Engagement

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xii

CHAPTER ONE

INTRODUCTION

In partial fulfilment of a Bachelor’s of Science degree in

Accountancy, working experience is a prerequisite for graduation

at Catholic University Institute of Buea. Working experience or

industrial training is an exercise which spans within a period of

time, during which a student gets practical experience in his or

her field of specialty, and the student is expected to use the

knowledge acquired in school and put to practice. This chapter

gives an overview on the orientation of the student both in

school and at the company, the importance and objectives of the

working experience and some definition of some key terms.

1.1 ORIENTATION OF STUDENTS

Orientation is the act of educating the student on what the

student is expected to do and what the student is expected to

see. That is giving an idea of the situation.

1.1.1 Orientation at CUIBOrientation of the students was done for three days, from the

26th to the 28th of March 2014

1

The students were oriented on how to dress, punctuality at work,

creativity, and following the policies of the organisation and

also to portray the moral values of the university.

Punctuality to work

During this meeting, students’ attention was drawn to the

negative effects of late coming on a company’s productivity and

sales, hence on its profitability and ability to survive in the

competitive market. Thus, students were recommended to be always

present and punctual to work during their internship, in order to

be a contributive resource to the organization’s success.

Dressing

In the course of this gathering, students were equally

encouraged not to abandon the decent dressing value of their

university while on the field. They were urged to always do their

best to dress as business professionals throughout their field

training.

Resourcefulness

2

Students were asked to be resourceful throughout their

placement; to always make themselves useful and to strive as much

as possible to find quick and clever ways of improving on

situations while overcoming challenges.

Hierarchy

Students were educated on the respect for hierarchy. In every

organization students were to find themselves, there was going to

be a hierarchy of authority. Students were therefore instructed

to submit themselves to this hierarchy, and to give respect to

whom respect is due. In fact, students were made to understand

that in matter of position in the organization, they should

consider themselves as the least, given that they would be just

temporary in the organization.

Team spirit

Students were urged to express their ability to work in teams

during their placement; to collaborate and join forces with other

people in the organization, in order to achieve

organizational/departmental objectives.

3

Besides their conduct at the company, students were equally

informed on how the course would be evaluated.

1.1.2 Orientation of student at the company

Orientation at Akintolla Williams & Co took place at the head

office in Limbe by the Auditor himself, Mr Acha Paul, on the 7th

of April 2014. The student was introduced to the various workers,

and was oriented on company policies, working hours, dressing

code and a general over view of the company. The intern was also

given a working plan of the entire working experience.

1.2 IMPORTANCE OF WORKING EXPERIENCE

Internship plays several important roles in the grooming of the

intern academically and professionally .Some of these roles

include;

To gain relevant job experience and allows the student to

apply what has been learned in school, to their field of

specialty.

It helps the student to get acquainted to corporate world.

4

It also acts as a requirement for graduation.

1.3 OBJECTIVES OF CARRYING OUT THE PROJECT

To enable the intern develop skills in the application of

theory to practical work situations.

To develop skills and techniques directly applicable to a

career

To provide intern with the opportunity to develop attitudes

conducive to effective interpersonal relationships.

To increase the intern`s sense of responsibility.

To develop employment records/references that will enhance

employment opportunities for the intern

1.4 DEFINATION OF TERMS

1) Audit

Audit is an exercise that auditors carry out in order to be able

to give the statutory opinion whether the financial statements

give a true and fair view.

2) True

5

In this context, true means Information is factual and conforms

with reality, such that it is not false. In addition, the

information conforms to required standards and law. The financial

statements have been correctly extracted from the books and

records.

3) Fair

Information is free from discrimination and bias, and complies

with expected standards and rules. The financial statements

should reflect the commercial substance of the company's

underlying transactions.

4) Letter of engagement

This is a letter which sets out the terms of the audit, submitted

or confirmed before the start of each annual audit.

5) Real taxation system

This is a system of tax, were a company is required to pay 1.1%

of its monthly turnover.

6

CHAPTER TWO

PRESENTATION OF AKINTOLA WILLIAMS & CO

2.1 HISTORICAL BACKGROUND

Akintola William originated from Nigeria and was founded by chief

Akintola Williams. Chief Akintola Williams was the first African

to qualify as a chartered accountant in the 1950s .In the year

1952, Chief Akintola Williams decided to create his firm and

registered it as Akintola Williams. As the years went by,

Akintola Williams after merging with different companies, became

the largest professional service firm in Nigeria by 2004. After

acquiring this level of goodwill, three Cameroonians decided to

buy the licence to operate Akintola Williams in Cameroon. By

1969. Akintola Williams became operational in Cameroon and

registered under CEMAC, located in Douala and its headquarters in

Limbe, to offer auditing and tax advisory services.

2.2 PRODUCT AND SERVICES OFFERED BY THE FIRM

7

Akintola Williams & Co is an auditing firm that audits the

financial statements of its client, to give its opinion on

whether the financial statements show a true and fair view.

Following the above statement, this implies that Akintola

Williams & Co is a service company and therefore provides the

following services.

1) Auditing

This auditing firm, audits the financial statements of its

client, and gives an unbiased view on whether the financial

statements of that client is free from a certain degree of

material misstatements,, in order to give assurance to the users

of the financial statement.

2) Tax advisory services

According to the law, companies are required to declare and pay

taxes on the 15th of each month, which is about 1.1% of their

monthly turnover (real taxation system) and that each entity

should act in good faith when paying their taxes. Consequently,

when an entity is found to have defaulted, that entity is

penalised by the tax securities and expected to pay 100% penalty

8

on the amount owing ,plus an interest for the time period .when a

situation like this comes up, the client involved in the default

seek for advice from the auditing firm. The auditing firm now

stands as a lawyer to defend the accused and advise them what to

do to remedy the situation, by bringing out evidence of their

innocence.

9

2.3 ORGANISATIONAL STRUCTURE

Source: Akintola Williams & Co archives, Limbe (2014)

10

PARTNERS

MANANGERS

EMPLOYEES

The above organisational chard is an example of a simple

organisational chad. It is a top bottom line of management

technique. From the above organisational chad, the functions of

each element is explained bellow.

Partners

These are the owners of the firm. There exist three in number.

These three members are responsible for carrying out auditing,

negotiating with the audit client, and also the absolute

authorisation of any transaction that occurs within the firm.

Managers

They are responsible for monitoring all activities within the

firm. They act as care takers of the owner’s investment, and give

reports on the financial statues and progress of the company to

the owners.

Employees; the employees here could be made up of the audit

committee. They act as the auditors helping hand in the

audit process.

11

CHAPTER THREE

ACTIVITIES CARIED OUT BY THE INTERN

3.1 AUDIT MANAGEMENT

An audit is an exercise that auditors carry out in order to be

able to give the statutory opinion whether;

Financial statements give a true and fair view. It is an

independent examination of and expression of an opinion on a set

of financial statements. In other words, Auditing is defined as

the act of accumulating and evaluating of evidence about

information, to determine and report on the degree of

correspondence between the information and established criteria,

12

carried out by a competent, independent and unbiased person

called an Auditor.

“True and fair;” the law requires auditors to give an opinion

whether financial statements are true and fair. However, it does

not say what 'true and fair' means. For this reason, the intern

observed that auditors go by generally accepted meanings:

True: Information is factual and conforms with reality, such that

it is not false. In addition, the information conforms to

required standards and law. The financial statements have been

correctly extracted from the books and records.

Fair: Information is free from discrimination and bias, and

complies with expected standards and rules. The financial

statements should reflect the commercial substance of the

company's underlying transactions.

3.1.1 Before accepting nomination

The intern observed that before a new audit client is accepted,

the auditors must ensure that there is no independence or other

13

ethical problems likely to cause conflict with the ethical code.

Furthermore, new auditors should ensure that they have been

appointed in a proper and legal manner.

When a company is in need of an external auditor, it puts up an

advertisement or sends an invitation to an audit firm requesting

for an audit.

In the case where an advert is put up, various audit firms send

in their tender letter, which is described as an invitation to

treat. The client goes through all the applications and choose

from them the most qualified for their need. The following

factors are taken into consideration in order to select or

disqualify an audit client.

The audit client most be a member of a recognised

supervisory body which in Cameroon is ONECA.

The audit client is disqualified if, he or she is an

employee, a partner, or has a spouse in the company to be

audited.

14

On the other hand, before the audit client accepts an

appointment, nominee auditors must carry out the following

procedures:

Ensure professionally qualified to act

Consider whether they could be disqualified on legal or ethical

grounds

Ensure existing resources adequate

Consider available time, staff and technical expertise

Obtain references

Make independent enquiries if directors are not personally known.

Communicate with present auditors

Enquire whether there are any professional or other reasons for

not accepting nomination, also courtesy to the outgoing audit.

NOTE

The above procedures are followed if and only if it is the first

audit for the auditor in that company. If not, there is no need

to follow professional rules.

15

3.1.2 Procedures after accepting nomination

The auditor after accepting nomination does the following;

a) Ensures that the outgoing auditors' removal or resignation

has been properly conducted in accordance with the Companies

Act. The new auditors should see a valid notice of the

outgoing auditors' resignation, or confirm that the outgoing

auditors were properly removed.

b) Ensure that his or her appointment is valid. The new

auditors should obtain a copy of the resolution passed at

the general meeting appointing them as the company's

auditors.

c) Set up and submit a letter of engagement to the directors of

the company.

Once a new appointment has taken place, the new auditors should

obtain all books and papers which belong to the client from the

old auditors.

3.2 UNDERSTANDING THE ENTITY (INCLUDING DOCUMENTING AND CONFIRMING THE ACCOUNTING SYSTEM AND INTERNAL CONTROL)

16

The intern observed that at this level, the auditor considers the

adequacy of the accounting records and whether the accounting

systems are capable of producing a reliable set of financial

statements, and also examining the client's attitude to controls

and how the business is organised, focusing particularly on the

role of the directors and senior management.

The auditors then assess and (if considered necessary) test the

client's controls. Auditors will only perform detailed tests of

controls if they believe that the controls are strong, and hence

they will be able to place some reliance on tests of controls and

reduce the amount of substantive testing they need to carry out.

Internal control is defined as the processes designed and

effected by management to provide reasonable assurance about the

achievement of the entity's objectives with regard to reliability

of financial reporting, the effectiveness and efficiency of

operations, and compliance with applicable laws and regulations.

Control environment includes the governance and management

functions and the attitudes, awareness and actions of those

charged with governance and management concerning the entity's

17

internal control and its importance in the entity. In other

words, control environment is the framework within which controls

operate.

3.2.1 Confirming the internal control

The auditor confirms the internal control of the company by

checking

1) The level of communication and enforcement of integrity and

ethical values of the company.

2) Commitment to competence, how well the employee involved for

example the accountant performs his or her functions.

3) Management's consideration of the competence levels for

particular jobs and how those levels translate into

requisite skills and knowledge.

4) Participation by those charged with governance, that is the

extent of their involvement in their duty and scrutiny of

activities, the information which they receive, the degree

to which difficult questions are raised and their feedback

to management.

18

5) Management's philosophy and operating style. The auditor

looks at the Management's approach to taking and managing

business risks, and management's attitudes and actions

toward financial reporting, information processing and

accounting functions and personnel

6) Organisational structure; The framework within which an

entity's activities for achieving its objectives are

planned, executed, controlled and reviewed

7) Assignment of authority and responsibility; that is how

authority and responsibility for operating activities are

assigned and how reporting relationships and authorisation

hierarchies are established.

8) Human resource policies and practices; how is recruitment,

orientation, training, evaluating, counselling, promoting,

compensating and remedial actions are done

19

3.2.2 Confirming the documenting and the accounting system

3.2.2.1 Confirming the accounting system

The accounting system consists of the procedures and records

established to initiate, record, process and report entity

transactions and to maintain accountability for the related

assets, liabilities and equity. Consequently, the auditor

observes;

1) The classes of transactions in the entity's operations that

are significant to the financial statements.

2) The procedures, within both information technology (‘IT’)

and manual systems, by which those transactions are

initiated, recorded, processed, corrected as necessary,

transferred to the general ledger and reported in the

financial statements.

3) The related accounting records, supporting information and

specific accounts in the financial.

4) Statements that are used to initiate, record, process and

report transactions; this includes the correction of

incorrect information and how information is transferred to

20

the general ledger. The records may be in either manual or

electronic form.

5) How the information system captures events and conditions,

other than transactions, that are significant to the

financial statements.

6) The financial reporting process used to prepare the entity's

financial statements, including significant accounting

estimates and disclosures.

7) Controls surrounding journal entries, including non-standard

journal entries used to record nonrecurring, unusual

transactions or adjustments.

3.2.2.2 Confirming documentation (test of details)

At this level, the auditor and his audit team collect documents

needed to prove the authenticity of the financial statement.

According to OHADA system, there exist nine (9) classes of

accounts but the company which we audited uses eight classes

(TELCO PRESWOOD OMBE).

21

Every account class is divided into various test of details, this

is to help the audit, which was made up of the auditor, a

chartered accountant, a master’s graduate in accounting, a first

degree graduate in accountancy and my humble self. This team

analyse each account by carrying out sampling and given

observations and recommendations for the data analysed. The

various test of details used are

1) Lead schedule

In this analyses, the intern draws a table which is divided as

shown below (all analyses are don on excel)

AUDIT ADJUSTMENT

DR CR

-

ACCOUNT CODE & DESCRIPTION

BAL.AS AT 31/12/2013

BAL.AS AT 31/12/2013

BAL. AS AT 31/12/2012

6500000 · Other Charges:6501000 · Gifts and Donations6500000 · Other Charges:6503000 · Insurance6500000 · Other Charges:6504000 · Other sundry Expense

22

The account code and description is for the account you are

currently working on and its sub accounts. For example as shown

in the table above, the account the intern is working on is

account 65, and the name of the account is “Other Charges”. This

account is divided into sub accounts such as account. According

to the OHADA system of coding, the first two digits of the

account code signifies the class of the account, and meanwhile

the next two numbers signifies a subsidiary and a sub-subsidiary

account respectively.

The next column on the table above contains the unadjusted

balance for the year being audited. This balance is extracted

from the trail balance of that year.

The next column is divided into three sub- columns which are Dr,

Cr and adjusted entry. The debit (Dr) and Cr (credit) sub column

caries any Cr or Dr adjustments done for each sub account. After

the intern caries out these adjustments, she adds the unadjusted

balance to the debit adjustment and then subtracts it from the

credit adjustment to get the adjusted figure on sub column three

for each sub account.

23

The last column contains the adjusted balance of the previous

audited year. This figure helps the auditor to see if the company

is progressing or regressing.

2) Analytical Review

Here, the intern compares the audited balance (adjusted balance)

of the previous year audit to the unadjusted balance of the year

in audit for that account, by calculating their difference. After

the intern gets the difference, the intern divides the difference

by the balancing figure of the previous year audit for each sub

account in that account to get their variation. The table below

gives an example.

DIFFERENCE % VARIATION

465,000 345,000 120,000 35%

258,557 140,000 118,557 85%

586,500 297,820 288,680 97%

TOTAL ### 1,264,870 -139,158 -11%

ACCOUNT CODE & DESCRIPTION

BAL.AS AT 31/12/2013

BAL. AS AT 31/12/2012

6500000 · Other Charges:6501000 · Gifts and Donations6510000. Office Expenses6500000 · Other Charges:6504000 · Other sundry Expense

24

25

3) Test of Details

Since the general ledger shows full details of the transactions

which occur in each account, the intern samples the data recorded

for transactions that occur for that account she is working on,

by selecting transactions with material amounts. This is to

confirm if the documents;

A = Existence and was authorisation

B = Amount was properly recorded

C = Presentation was respected

D = Cut off is respected

The table below shows a practical example

DATE NAM E M EM O Dr Cr A B C D14/02/2013 DIGE jan 2013 119,250 √ x √ √ 29/03/2013 DIGE feb and m arch 238,500 √ x √ √ 03/06/2013 DIGE April security bill 100,000 √ √ √ √ 30/06/2013 Tellco Preswood vat retained of settlement of bills 96,250 31/07/2013 DIGE may security bill 100,000 √ √ √ √ 03/09/2013 DIGE June 2013 security bill 100,000 √ √ √ √ 30/09/2013 DIGE july,August $ september security bills 300,000 31/12/2013 DIGE DIGE bill for Oct Nov and Dec Due 300,000

TOTAL 1,257,750 96,250

26

The table above shows a sample of transactions selected by the

intern from the General ledger for account 6300000. External

services B: 3605000 protection and security from the above table,

the intern observes that

4 Not all transactions had supporting documents (the information

in red). This implies that either the transaction did not

occur or did occur but their amounts were misstated or do not

exist at all.

5 The intern also observed that some of the figures recorded

were VAT inclusive (transactions of the 14/02/2013 and

29/03/2013). This implies that expenses was over stated by the

VAT amount.

From the above observation, the intern recommended that the above

account should be debited with the VAT amount, meanwhile the VAT

account is debited with the vat able amount. This is to remove

the vatable amount to the VAT account.

4) Summary memo

27

These memo gives a summary of the entire test carried out. The

intern gives an overall observation and recommendations for the

entire account she worked on.

3.3 THE AUDIT REPORT

The audit report is the final step of an audit process. This

report communicates the auditor’s findings to the users of the

financial statement. This report provides assurance on the

company`s financial statements. An audit report is made up of

different parts. These parts are explained bellow.

Report title: the auditor’s report has caries an appropriate

tittle for example, the independence audit report. This

unique tittle is to distinguish the auditor’s report from

other reports, meanwhile the word independence must be used.

This is to create an understanding to the users that the

report was unbiased in all aspects.

The audit report address: the auditor addresses this report

to the shareholders and the board of directors, to indicate

that the auditor is independent of the company.

28

The opening or introductory paragraph: this introductory

paragraph is divided into three sections

i. The first part of this paragraph makes the statement that

the chartered accounting firm has done an audit .this

statement helps to distinguish this report from a pile of

review reports.

ii. The second part of this paragraph, list the financial

statements which were being audited which are the balance

sheet, the income statement and the statement of cash flow.

iii. The third part of this paragraph, states that the financial

statement are the responsibility of the management, and that

the auditor`s responsibility is to express an opinion on the

financial statements, based on an audit. This statement is

meant to create an understanding that management is

responsible for selecting the appropriate GAAP (generally

accepted accounting principles), and making the measurement

decisions and disclosures in applying those principles in

the preparation of financial statements, and to clarify the

respective roles of management and the auditor.

29

The scope paragraph:

This paragraph is a factual statement about what the auditor did

in the audit. This paragraph states that the audit conducted is

in accordance with the relevant national standards or

practices .It also states that the audit is designed to obtain

reasonable assurance about whether the financial statements are

free from material misstatements.

The inclusion of the word material, transmits that the auditor is

responsible only to search for significant misstatements, rather

than minor misstatements that do not affect the user’s decisions.

On the other hand, the use of the term reasonable assurance, is

to indicate that an audit cannot be expected to completely

eliminate the possibility of existing material misstatement in

the financial statement. In other words, an audit provides a high

level of assurance, but it is not a guarantee.

The auditor in this paragraph also explains that the evidence

accumulated was appropriate for the circumstances to express the

opinion presented. Also, he explains that sampling was used

30

rather than an audit of every transaction and amount on the

financial statement.

The opinion paragraph

This is a very important paragraph. The auditor states his

conclusion based on the results of the audit carried out. This

paragraph intent to indicate that the auditor`s opinion about the

audit is based on professional judgment. The statement” in our

opinion” is usually used and it indicates that there may be some

information risk associated with the financial statements, even

though the statements have been audited.

The audit report date

The auditor puts the date when he completed the most important

auditing procedures in the field. This date is important to users

because it indicates the last day of the auditor`s responsibility

for the review of significant events that occur after the year of

financial statement.

31

The auditor`s name and address.

The name identifies the firm which is Akintolla Williams & Co,

who performed the audit. The firm’s name is used because the

entire chartered Accounting firm has the legal and professional

responsibility to ensure that the quality of the audit meets

professional standards.

The auditor`s signature

The auditor signs the report in his name and the name of the

audit firm.

3.4 COMPARING THEORY AND PRACTICE

Field placement is necessary as it helps the student gain

practical skills in his or her field of specialty. The intern

observed the following aspects which tie with theory;

The intern observes that most of the companies audited by

Akintola Williams & Co, uses the OHADA system to prepare its

accounts. This is because Cameroon is a member state under

OHADA, and therefore all companies are required to present

32

their accounts following the OHADA system. According to

Theory, the OHADA system divides these accounts into nine

classes. The intern realised that most of the companies

audited did not use account nine.

The intern also realised that the format of carrying out an

audit, is similar to what was thought in Auditing and

Control. The intern got to see the various strategies that

companies use to maintain a good internal control.

The intern also went across the simplified tax system.

According to this tax system, a company is required to pay

1.1% of its monthly turn over as tax. If that company does

not, it penalised with a 100% rate and an interest on the

time period.

33

CHAPTER FOUR

CONCLUSION AND RECOMMENDATIONS

4.1 Challenges

There were not many challenges faced by the intern .This is

because the intern rather worked on the financial statements of

other companies than that of Akintola Williams & Co.

Nevertheless, the intern faced some difficulties at the beginning

but as time went on the intern became adapted to the procedures

after constant practical and research. Some of the challenges

faced by the intern are Nevertheless, the most challenging

problem the intern faced was;

Poor knowledge and application of taxes

The intern found difficulties in applying tax knowledge because

her knowledge on tax was limited to value added tax and some few

pay roll taxes such as personal income tax. Nevertheless, as time

went on, out of constant practise and research, the intern began

to adapt.

Disgruntled employees

34

The intern realised that at the level of the firm (Limbe), the

employees complained a lot about their financial statues. This

dissatisfaction is as a result of low salaries, lack of formal

working conditions. As a consequence, the employees reduce their

rate of output and feel not appreciated.

4.2 Recommendations

From the above problems, the intern recommends that the

university should teach taxation in the early years of the

programme, say third year first semester so that the students can

apply that knowledge during their working experience.

At the level of the company, the intern recommends that the

owners should treat their employees fairly, by paying each worker

its due, to avoid strikes and low outputs and also there should

exist a more formal working environment and also the terms which

govern an employment contract.

4.3 Conclusion.

This professional training was a great experience. This is

because the intern was given the opportunity to be part of the

audit team which went out for audit. This training also helped to

35

brooding the intern’s knowledge about taxes, and accuracy in

OHADA accounting.

REFERENCESACCA, Foundation in Auditing, 2nd edition, BPP learning media

Ltd, BPP house Aldine place London W12 8aa.

36

Treaty on the harmonisation of business law in Africa, (OHADA

Official Journal No. 10 – 4th Year), on regards on the

opinion of the Common Court of Justice and Arbitration

of 22 February 2000.

Akintola Williams & Co archives.

37

Appendix 1

CLIENT : Anucam AUDIT PERIOD: 31/12/2013

SUBJECT: TEST OF DETAIL FOR ACCOUNT61 (TRANSPORT)

OBJECTIVE: To test and ensure that account 61 purchases of consumables was fairly stated as at 31/12/2013. WORK DONE:1) Reconciliation of figures in the trial balance and general ledger for any differences.

Account description Trial Balance

General Ledger

Differences

6100000 - Transport 20,300

20,300

-

6100000 - Transport:6101000 . Local Transport and Taxi

1,139,150

1,139,150

-

6100000 - Transport:6102000 . External Transport

8,355,080

8,355,080

-

6100000 - Transport:6103100 . Hired Transport

134,000

134,000

-

6100000 - Transport:6110000 . Carriage Inwards

218,500

218,500

-

6100000 - Transport:6120000 . Carriage outwards

299,700

299,700

-

6100000 - Transport:6130000 . Packaging Materials

31,600

31,600

-

6100000 - Transport:6160000 . Transport of Mails

132,950

132,950

-

TOTAL 10,331,280

10,331,280

-

2) Random sample of 38.6% was selected from the gross figure in the accounts and vouched to their supporting documents to test the following potential errors/misstatement.

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39

APPENDIX 2

CLIENT : AnucamAUDIT PERIOD: 31/12/2013

SUBJECT: ANALYTICAL REVIEW FOR ACCOUNT 61 (Transport)

ACCOUNT CODE & DESCRIPTION BAL.AS AT 31/12/2013

BAL. AS AT 31/12/2012

6100000 - Transport 20,300

-

6100000 - Transport:6101000 . Local Transport and Taxi

1,139,150

1,688,250

6100000 - Transport:6102000 . ExternalTransport

8,355,080

5,367,365

6100000 - Transport:6103100 . Hired Transport

134,000

120,800

6100000 · Transport:6103002 · Hired transport on Sales

-

5,000

6100000 - Transport:6110000 . CarriageInwards

218,500

1,843,726

6100000 - Transport:6120000 . Carriageoutwards

299,700

1,766,700

6100000 - Transport:6130000 . Packaging Materials

31,600

153,900

6100000 - Transport:6160000 . Transport of Mails

132,950

160,500

TOTAL 10,331,280

11,106,241

PREPARED BY: TAKA DATE: 11/3/2014

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