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
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
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.
.
viii
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
xi
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
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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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
40
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