INDUSTRIAL TRAINING REPORT CPL & CO ABST RACT
Industrial training is one of the requirements to be fulfilled in order to obtain adiploma. Each student in this field needs to do industrial training in audit firm that is arecognized member of Malaysian Institute of Accountants. The students are compulsoryto undergo an industrial training for duration of three months which consist of 13 weeksbefore completing their courses. The objective of this industrial training is to expose students to the actual workingenvironment. Besides, to cultivate teamwork, spirit and familiarize with colleagues. Byundergo the industrial training, students will create a trust worthy and responsible person.Besides that objective of industrial training is to build self-confidence among studentsand let students know the technical knowledge and professionalism. I was placed in auditing and taxation department during my industrial training.This industrial training really examines the understanding and responsibility incompleting the assignment given by the firm. Specifically it measures the creativity inconducting the task to fulfill the firm and clients wants and needs. This training gives me good experience from the view of implementing myknowledge in accounting aspects. Last but not least, I had learnt more about auditing andtaxation.
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INDUSTRIAL TRAINING REPORT CPL & CO ACKNOWLED GEME NT
Sometimes words fall short to show gratitude, the same happened with me duringthis project. The immense help and support received from Cpl & Co overwhelmed meduring the project. It was a great opportunity for me to work with Cpl & Co, pioneer in the field ofaccounting and taxation. I am extremely grateful to the entire team of Cpl & Co, whohave shared their expertise and knowledge with me and without whom the completion ofthis project would have been virtually impossible. My sincere gratitude to Ms.Sara Chin (Secretary of the company) for providing mewith an opportunity to work with them as a company project guide who has provided mewith the necessary information and her valuable suggestion and comments on bringingout this report in the best possible way. I am highly indebted to Ms.Sharon (working colleagues ) who has provided me thenecessary information and her valuable suggestion and a good support in understandingthe basics of accountingand taxation easily.
I feel great pleasure to cordial thanks Ms.Lee (Auditor) . I also very thankful tomy friends who help me in completion of the project . I am thankful to the power thatalways inspires me to take right step in the journey of success my life.
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INDUSTRIAL TRAINING REPORT CPL & CO 1.0 INTRODUCTION ABOUT THE FIRM
1.1 SUMMARY
Below is a brief explanation of the capabilities and relevant experiences of the firm, CPL & CO offers the following unique benefits: to utilize its resources and technical expertise to deliver professional services on a
•
timely basis; to provide personalized service of partners at all times;
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to provide professional business consulting services in local business challenges.
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to offer value-added services with competitive professional fees.
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to provide secretarial services.
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INDUSTRIAL TRAINING REPORT CPL & CO 1.2 FIRMPROFILE
Over the past years, CPL & CO (an affiliated member Malaysian Instituteof Accountants ) has built up its affiliate "partner" with L.C.SIM to caterlocalbusiness needs of its clients. Other than the traditional services such as audit and taxation, CPL & COalso specializes in financial advisory, insolvency and consulting practices.Through its local affiliations, CPL & COis in the position to promptly meet itsclients' local business needs, irrespective of where the business operation isconducted. The size of CPL & CO offices enables it to provide a depth of technicalexperience across a full range of services thus having the added advantage ofestablishing close professional relationships with its clients. The combination oftechnical resources and personal commitment among the players has contributedto CPL & CO’s position of prominence and popularity in this line of business.Furthermore, CPL &CO works closely together with the relevant professionalbodies to ensure that its clients' interests, growth and needs are fulfilled at all times.
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INDUSTRIAL TRAINING REPORT CPL & CO 1.3VALUE FOR MONEY APPROACH
CPL & CO's approach to its service assignment is based on the "Team Concept." In the course of carrying out its responsibility, the scope of the service andreview work is allocated to the appropriate staff levels, wherever possible, at alower charge out rate. Such allocation of work and duties ensures that the fees arekept to the minimum and correct level. Furthermore, this arrangement allows our clients to gain access to a widerrange of expertise with the work being completed by the appropriate qualifiedstaff members which also ensures timely and efficient completion of serviceassignment. CPL & CO maintains a strong partner involvement and any workperformed is invoiced in accordance with the time taken to complete the taskassigned. Naturally, "confidentiality" is held to be of utmost importance and as aclient ofCPL & CO, confidentiality is assured at all times. Mission statement: To be recognized as a strategic financial business partner in fulfilling and to value-add the needs of our clients by way of a Multiple Disciplinary Partnership. Vision statement: To continuously scale new heights and to embrace the vision of “The Business Mind”, with the focus to meet global challenges o f tomorrow.
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INDUSTRIAL TRAINING REPORT CPL & CO 1.4OUR SERVICES
The primary role of CPL & CO is to perform assurance and complianceservice in accordance with the guidelines set out by the legislation of the country.CPL & CO also has the technical expertise and experience to conduct financialdue diligence reviews and internal audit where appropriate. CPL & CO tailors its professional business approach to the specific needs andrequirements of its clients to ensure that the work is conducted in the mostefficient and cost-effective manner. In this respect, an integrated approach to our professional businessservices is adopted to fulfill the requirements and objectives of the three mainareas, namely: 1. 4.1 OPERATING BUSINESS
The services required for the operating business embody the following: a)Tax compliance (Forms C & R) and CP 204 for Self-Assessment regulations. Due to the complexity and intricacy of the self-assessment system,CPL & CO has designed a system of producing relevant informationnecessary to meet the stringent requirements under the new taxationsystem. Prior to the year-end, Form C is completed for submission, thenecessary CP 204 is filed on a periodic basis as and when there arechanges to the tax estimates. CP 204 A relating to revised assessment
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INDUSTRIAL TRAINING REPORT CPL & CO is lodged should there be a change in the tax estimate. Form R issubmitted at the end of the fiscal year giving information on the taxcredit availability of the company under Section 108. This systemallows CPL & CO to reduce the time required to collate and analyzethe tax information collected, which saves clients unnecessary costs aswell as allowing the company the opportunity to provide timely andproactive taxation advice. b)Tax consulting services Local Taxes The Malaysian Taxation System has recently revamped its system inline with globalization which has created a time of constant changeand challenges. CPL & CO's taxation division has undergone rigorous tax trainingexercise in order to gear itself to provide proactive tax advice and toensure that its clients are kept abreast of the latest tax changes and tocomply with the taxation responsibilities. CPL & CO provides advice and information of the ever-changingtaxation system to its clients to ensure that clients are fully aware ofthe taxation installment obligations under the selfassessment systemwhich includes the lodgment of the relevant taxation returns.
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INDUSTRIAL TRAINING REPORT CPL & CO c)Service & Sales Tax/ Goods and Services Tax CPL & CO has considerable experience to assist clients with thetransition to Service and Sales Tax and would assist clients to apply forregistration when such needis required. d)Benefits in kind (BIK) To ensure that the year-end tax return forms are completed fully, CPL& CO has devised a system to collate the relevant information and datacollection for the purposes of preparing the fringe benefits tax annualreturns. This system minimizes time required which enables CPL &CO to adopt a more efficient and proactive approach in advising itsclients. Salary packaging may best be described as the structuring of anemployee's total remuneration to take advantage of any inherentsavings by substituting cash salary with a range of other benefitsknown as "Benefits in kind" (BIK). Such inherent savings are derivedfrom the confessional valuation provisions contained within theIncome Tax Ruling ITR 1997/2 for the valuation of BIK. Salary packaging allows employers to reward certain key employeesby providing such employees with all the additional benefits over andabove normal cash salary. Such scheme ensures that the employers
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INDUSTRIAL TRAINING REPORT CPL & CO have an edge over their competitors when it comes to matching remuneration, motivation and retaining employees' loyalty. e) Business consulting CPL & CO offers a range of business consulting services starting withstrategic and business planning down to assisting with organizationalchange and restructuring, process re-engineering, market
strategy,
costmanagement
reviews
as
well
as
e-commerce
and
internet
strategydevelopment. The services are provided to assist clients of CPL & COin dealing with the challenges faced in a rapidly changing and complexglobal environment where a single firm or organization is no longer inisolation but forms part of the global economy. Such environmentpresents itself numerous opportunities but also many potential pitfalls. f) Secretarial services It is a must for all companies to have their statutory files maintainedby qualified Company Secretary as well as to prepare and submitrelevant documents on time to the Company Commission
of
Malaysia(CCM).
His
service
is
providing
to
maintain
and
update
statutoryrecords of companies. Such service includes company formation, filingof statutory forms, attending meetings and preparation of minutes,advising clients regarding company secretarial matters.
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INDUSTRIAL TRAINING REPORT CPL & CO g) Audit services CPL & CO is in the position to assist its clients who require an internalaudit review or due diligence review to be carried out for a particularbusiness reason such as to satisfy the company financiers. The natureof the audits may vary from a limited scope audit to a full scope auditto satisfy assurance and compliance requirements. 2.0DETAIL DESCRIPTIONS OF TRAINING
During my three months practical training in the audit firm, I engaged in main two areas, which are auditing and taxation. For auditing, I had handled few companies by my own and helped out my seniorsfor few big companies which are our priority given to them. Besides that, they alsotrained me to prepare working papers which also known as lead schedule, finalized auditreport, and prepare a letter that has to be sent to clients, banks, debtors and creditors. Imanaged to implement my knowledge and learned many things from there. I had learnt how to compute tax for companies. It’s really interesting. I also hadgiven chance to review the tax computation done by other staffs. I had prepared Form Cand Form R for the companies. In addition, I also prepared many letter regarding taxwhich requested by the clients to Inland Revenue Board (IRB). Detailed descriptions ofmy task have been discussed in detail in this report.
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INDUSTRIAL TRAINING REPORT CPL & CO 3.0 DETAILSABOUT CLIENTS
CLIENTS NATURE OF BUSINESS 1)Guan Seng Hardware Sdn Bhd
Principal activity is operating a hardware shop
2)Kedai Ubat Xinxianghe Sdn Bhd
Principal activity is operating traditional Chinese medicine.
3)Seacrest Sensation Sdn Bhd
Principal activity is operating a Korean restaurant.
4)Honey Happy Home
Principal activity is operating old folks home.
5)Han’s Cake & Cafe
Principal activity is as bakers and manufacturers of an dealers in bread, flour, biscuits and operating cafes
6)CNY Chemical Engineering Sdn
Principal activity is as agriculture
Bhd
chemical manufacture.
7) CNY Aquaculture Sdn Bhd
Principal activity is operating company on aquaculture products.
8)CNY Biotech Sdn Bhd
Principal activity is as agriculture product manufacture
9)CNY Bioscience Sdn Bhd
Principal activity is as agriculture product manufacture.
10)Uptrend Engineering Sdn Bhd
Principal activity is constructing and contracting buidings.
11) Mawisa Enterprise
Principal activity is as car accessory Shop
12)U.E.Confectionery Sdn Bhd
Principal activity is operating a restaurant.
13)U.E.Teahouse Sdn Bhd 14)Top Master Home Sdn Bhd
Principal activity is operating a restaurant Interior design company 11
4 . 0 N O M I N A L LEDGER AND TRIAL BALANCE
A company must keep records and books of accounts including a cash book, asales ledger, a purchases ledger and a general ledger. Supporting documents such asinvoices, bank statements, pay-in slips, cheque butts, receipts for payments, payroll records and copies of receipts issued should be retained. Receipts issued must be seriallynumbered. A valuation of the stock in trade should be made at the end of the accountingperiod and the appropriate records maintained. Records in manual or electronic form should be sufficient to explain eachtransactionand to enable a true and fair profit & loss account and balance sheet to beprepared. If computers are used to record the transactions, original source documentssuch as invoices and receipts should be retained. Where the original documents are inelectronic form, the documents can be retained in such form. The system documentationincluding the accounting manual, chart and code of accounts should be maintained. All bank statements or savings books, into which account money for the businesshas been credited or withdrawn, should be retained. At the end of the accounting period, aphysical stocktake should be made to ascertain the quantity and the cost of the stock inhand or the cost of work in progress. The first step in performing audit is to check opening balances of balance sheetitems. This can be done by check whether the amount reflected in previous audit reportsame as the opening amount in client’s account. If there is an y difference, note of thatamount and make adjustment of the amount. The next step is to check journals whether have been posted to correct nominalledger account or not. Scrutinize nominal ledger journals made during the period forevidence of any unusual journal entries. For such items, obtain satisfactory explanationsfrom the client. Then obtain a closing trial balance for the current period. Check that thetrial balance is mathematically accurate and trace numbers to the draft financial statements and lead schedules. For agreed post trial balance audit adjustments, check thatthe client has processed agreed journals into the nominal ledger and financial statementsproperly. After that perform an audit according to schedule, start off by balance sheet’s items.
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THE AUDIT PROCESS
Getting elected as auditor
Preparation of draft financial statement
Audit process on working paper
Data entry
Print
Supervisor check the draft account
Final check and casting
Audit report
Diagram 1.0 The Audit Process
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SCHEDULE A-PROPERTY, PLANT AND EQUIPMENT There are few procedures to be followed during the audit work for this section.Firstly, obtain a summary schedule of each significant class of property, plant andequipment to satisfy disclosure requirements, showing opening balances, additions,disposals, revaluations and closing balances. Ensure that the property, plant andequipment exist and are genuine assets of the business and are beneficially owned by thebusiness and any restrictions, pledges or liens on the property, plant and equipment areidentified and adequately disclosed in the financial statements. At the same time, we haveto prepare fixed assets schedule as to attachment for this section. Test the mathematical accuracy, agree opening balances to prior period workingpapers and agree closing balances to the nominal ledger and investment ledger wheremaintained. Vouch against invoices, contract notes, and agreements for any additions ordisposals. Confirmation of documents needed from the client. Ensure that all property,plant and equipment are included in the balance sheet, income from investments iscomplete and gains or losses on realization of property, plant and equipment are correctlystated. In additions, ensure the property, plant and equipment are properly disclosed andcapitalized. Ensure that property, plant and equipment are accurately stated at cost orrevalued amounts and provided against where necessary. In this audit firm we normally do not conduct physical verification of the assets toensure its existence. It is only applicable to a very large amount of assets. Then, checkcalculation of the rates of depreciation to ensure that the rates used are reasonable and consistent with previous years. If the assets are charged, ensure that the particular chargeis contained in the register of charges and relevant forms are filed. Where possible, obtaina copy of the relevant forms.
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