A REPORT ON VOUCHING AND

VERIFICATION OF FINANCIAL
TRANSACTIONS
 A REPORT ON

INTERNSHIP AT JVJ & ASSOCIATES AS A CA INTERN

SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF

THE DEGREE OF

BACHELOR OF COMMERCE ACOUNTING AND FIANANCE

STUDIES

UNDER THE FACULTY OF COMMERCE

BY

HIMANSHU DILIP MISTRY

T.Y.B.A.F (SEMESTER VI)

(DIV A ROLL NO 40)

UNDER THE GUIDANCE OF

PROF. HARSHA WADHVA

NIRMALA MEMORIAL FOUNDATION COLLEGE OF

COMMERCE AND SCIENCE

90 FEET ROAD, ASHA NAGAR, THAKUR COMPLE

KANDIVALI EAST, MUMBAI- 400101 MARCH, 2019
 Declaration by learner

I the undersigned Ms .HIMANSHU DILIP MISTRY of T.Y.BAF. (Bachelor

Degree of Accounting and finance Semester VI)

Hereby declare the work embodied in this report work titled “Internship at”
JVJ & ASSOCIATES forms my own contribution to the research work carried
out under the guidance of Prof. Harsha Wadhva is a result of my own research
work and has not been previously submitted to any other university of any other
degree to this or any other university.

Wherever references have been made to previous work of others, it has been
clearly indicated as such and included in the bibliography.

I, hereby further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

HIMANSHU DILIP MISTRY

(Name and signature of learner)
Certified by

___________________

(Prof. Harsha Wadhva)

(Name & signature of the guiding teacher)

 Certificate

This is to certify that MS. HIMANSHU DILIP MISTRY has worked and duly

completed his Report work for the Bachelor Degree of Accounting And

Finance under the Faculty of Commerce in the subject of project work and

his report is entitled “Internship at JVJ & ASSOCIATES”

I further certify that the entire work has been done by the learner under my

guidance and that no part of it has been submitted previously for any degree or

diploma of any university.

It is his own work and facts reported by his findings and investigations.

____________________

(Prof. Harsha Wadhva)

Project guide

____________________

Date of submission
 Acknowledgement

To list who all have helped me is difficult because they are so numerous and
the depth is so enormous.

I would like to acknowledge the following as been idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank University of Mumbai for giving me chance

to do this project.

I would like to thank my In charge Principal, Swiddle D’Cunha for

providing the necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator, Dr. Poonam Kakkad for
the moral support and guidance.

I would also like to express my sincere gratitude towards my project guide.

Prof. Harsha Wadhva whose guidance made my project successful.

I would like to thank my College Library, for having provided various

reference books and magazines related to my project.Lastly, I would like to
thank each and every person who directly or indirectly helped me in the
completion of project especially my Parents and Peers who supported me
throughout my project.
 PREFACE
The firm provides expert and professional services with due care of
professional ethics. The company believes in steady approach towards offering
high quality professional service to our clients. It has helped us intentionally in
building long term mutual benefits relationships.
The organization since its very first day is devoted to providing quality service.
The detailed and thorough review of work and clients trust shows the
perfections with which he is working.
There I was introduced to:
 Ascertain the nature of particular head of item.
 Ensure that all entries are properly recorded in the books of accounts
 Verify if authorized by board of directors of proper authority.
 Confirm that other applicable provisions are duly complied with
 Review the expenditure as compared to previous years’ expenditure and
deviation if found than reasons for the same
 Ascertain the internal control system periodically
 Check validity of transactions & observance of accounting principles
 Check if item properly disclosed in financial statements prepared
 Verify whether the expenditure is of capital or revenue in nature
 Verify that all the general principles, procedure, accounting standard and
guidance notes are duly complied with
 TABLE OF CONTENT
CHAPTER PARTICULAR PAGE
NO. NO

1. INTRODUCTION

LEARNING OBJECTIVES
2.

LEARNING OUTCOME
3.
OBSERVATIONS
4.

C ONCLUSION AND
5. SUGGESSTION

6. BIBLOGRAPHY
CHAPTER 1: INTRODUCTION
Organisation info

JVJ & Associates is a chartered accountancy firm rendering comprehensive

professional services which include Audit management consultancy, Tax
consultancy, Accounting services etc.

It is a professionally managed firm. The firm consists of successful Chartered

accountant, good Financial adviser, and Tax consultants. The firm represents a
combination of specialized skills, which are glad to offer sound financial advice
and personalized proactive services. Those associated with firm have regular
interaction with industry and other professionals which enables the firm to keep
pace with coincident developments and meet the needs of the clients.

Working in heavy work load with great support of seniors and friendly
environment. Learnt about accounting, tally, Ms-office, rectification, handling.

One should have to be punctual and arrive on time. One can leave on time after
completing the work which has allotted to him. If anyone has to work for some
extra time then he/she can work, there are no restrictions. Working with perfect
coordination with seniors and learning something new was a great opportunity.
It’s a great value addition and good place to learn team spirit and time
management. It has homely environment. There was not much more salary but
was lot to learn in the firm. The surrounding was great and helpful. Well
maintain behaviour, nice and friendly atmosphere. Boss was not rude speaking
was like friendly in nature and treated like a family member. The management
of the firm was very particular. Co-workers are always cooperative. Hardest
part was to maintain discipline and to do accurate work.

The organization have a leadership team with a collective experience of over 5

years working with Institutions and Corporate of international repute. They
have experience and knowledge of local markets accompanied with
understanding of today’s business atmosphere and its operating dynamics
enables us to provide proper guidance and innovative solutions to diverse needs
of clients.

WHY IT IS SELECTED

In order to boost the classroom knowledge, it is necessary to enter into the

corporate world. This is the place where a student can gain hands-on
knowledge, experience of the practical and professional world. Thus we are
required to undertake an internship program in any operating organization.

An internship is an excellent way for an intern to authenticate the creditability

of a chosen career option to pursue.

I was intern in ca firm to understand the structure of taxation. I also learn how
the data entry made. I also want to learn how the gist filling are done.

An internship is a small investment in building our future.

1. It exposes you to real-world experience –
Internships offer you a peek into the environment you wish to work in
someday. As you intern for a company, you get hands-on experience of how
things work in an office environment. Also, you get an idea of what job role
you would like to choose when you join a full-time job.

2. It teaches you time-management –

As an intern, you have to shuffle a host of tasks simultaneously in a
fast-paced work environment. Since people will expect results from you, you
have got to manage your time accordingly to fit in all the scheduled tasks.
After a few initial pitfalls, you will eventually learn the art of time-
management and prioritizing tasks.
3. It encourages networking –
 During the internship period, you attend meetings and company events.
This will give you much more industry exposure. You will meet
professionals from various fields and make new connections.

4. It helps build your Resume –

While degrees and certifications look great on a resume, an internship
looks even better. Today, everyone is educated with some degree or the
other. In such a situation, an internship can set you apart from others. It
shows your potential employer that you have some work experience,
thereby increasing your chances of getting hired.
5. It acts as a career foundation –
When you carefully choose an internship in the domain you wish to
build your career in, it becomes a stepping stone for you. You get the chance
to work with a company that can teach you the ropes of the trade.

6. Gain Industry Knowledge from Experts

There is no substitute for experience. I don’t know who that quote is

from but I like it so I’m using it. Learning from experienced professionals is
a tremendous way to get to know your industry.

7. Learn without pressure.

The fact you’re doing an internship is like those ‘L’ learner plates that
trainee drivers have on their cars. Your colleagues are aware that you are not
an expert yet and so adjust their expectations accordingly, this can reduce the
pressure on the intern greatly and allow you to learn at your own pace. While
you’re on the internship it’s a fantastic opportunity to develop skills, things
you could never do before. Until I did my internship in renewable energy I
had only ever given presentations to classmates and was so nervous
beforehand that I dreaded it. However, after the experience of writing out the
 company business plan and presenting it to would be investors, I now feel
extremely confident in my ability knowing that if I have a good grasp of the
material, there is nothing to be concerned about as I can present in an
informative manner and comfortably answer questions.

The intern chose JVJ & Associates for my internship programme because he
wanted to have general ideas on audit firms and their activities. The intern
joined JVJ & Associates to get exposed to the real world of accounting and to
have first-hand experience on the same since. The intern is a student of
Management faculty. The intern wanted to know how business firms
do accounting and what role does it play in the growth and development of
business activities. JVJ & Associates is a partnership firm established in 1994
A.D. The firm provides auditing, due diligence, account outsourcing, project
management and consulting services. The firm specializes in consulting services
in areas of: Country Strategic Papers, Restructuring policies and Internal
Control System Development Mergers/Demergers, Financial Controller/ Due
Diligence Review/Special Review of various Infrastructure projects on behalf
of commercial banks; Forensic Audits, etc.

Mission- JVJ & Associates 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.

Vision- The firm's vision is to be the premier auditing, accounting, tax and
business consulting firm by every measure that matters.

Values

The values of the organization are as follows:

Valuing People
We believe that our success depends first and foremost on people. By
respecting people in everything we do, we will develop and maintain high
quality, mutually beneficial relationships with our clients, professional
colleagues, referral sources, vendors, community members and each other.

Building Client Relationships

We seek to earn long-term client loyalty by developing a deep understanding

of each client's business and personal goals, by demonstrating unwavering
reliability and integrity in our work and by acting as an independent and
objective advisor tour client.

Upholding Quality and Integrity

We will maintain an environment where a commitment to quality, honesty,

respect, fairness and professional ethics governs the actions and decisions
of everyone within our firm.

Keys to Success

The keys to success for JVJ & Associates are Developing visibility to generate
new business leads. Relationships with clients (developing loyal, respectful, and
intensive contact with both clients and potential clients). Marketing/strategy and
networking with other professionals. Responsiveness to clients (fast response
time for special problems). Quality (especially in reporting information).
Excellence in fulfilling the promise. Openness: languages and willpower for
creating interregional and international contacts.

Work culture

Organizational culture encompasses values and behaviour that "contribute to

the unique social and psychological environment of an organization." According
to Needle (2004), organizational culture represents the collective values, beliefs
and principles of organizational members and is a product of such factors as
history, product, market, technology, strategy, type of employees, management
style, and national culture; culture includes the organization's vision, values,
norms, systems, symbols, language, assumptions, beliefs, and habits

The concept of a workplace culture encompasses many different characteristics

of a business. Culture has visible components in the way that a business looks
and how employees dress, but it really thrives in the attitudes of employees, in
the setting of goals and in the communication of business values to workers and
customers. The business owner sets the pace for creating, defining and refining
the company culture.

Sandarac sashay & associates believes that culture is dynamic so it important

that employees should be capable to adapt the changes in culture. Employees
are given full freedom to take decision which promotes flexibility in decision
making flexibility helps in retention of business.

It’s a firm which promotes team work. As team work enhance the potentiality of
the employees and gives effective outcome by using individual skills. It
promotes the team work due to following advantages; -

Good teamwork maximizes involvement, utilizing everybody’s strengths and

areas of expertise, as well as distributing responsibility to all.

Information is shared amongst the team members, maximizing the levels of

knowledge and learning for the whole organization.
A good team can produce a wide range of possible solutions to each specific
problem and ascertain the most effective one from the range through collective
input and interaction.

Teamwork gives people shared goals. It also gives individuals an interest in

encouraging and aiding other members of the team to achieve those shared
goals.

A team often produces more accurate, innovative and practical solutions to

problems than individuals (think in terms of “collective wisdom”, or “the
wisdom of crowds”).

Teamwork in general produces better end results, as well as bringing out better
quality performances from individual members of the team.

It encourages a wider sense of ownership for the organization, both collectively

and individually, making team members more responsible and enthusiastic.

Workers are more emotionally positive and are better at sharing knowledge,
learning and responsibilities when they experience the personal security of
being part of an effective team.

Individuals are more likely to take risks when they experience the security of
being part of an effective team, as they receive the support and reassurance of
being part of a group.

By utilizing teamwork, an organization’s decision-making process can be much

better understood by its members.

A group can sometimes deal with complicated, difficult, deep, and involved
problems more effectively than individuals can.

Last but not least, effective teamwork is fun for the people involved and this
raises motivation and morale.
TYPES OF ORGANISATION

Usually, there are two types of organisation i.e. FORMAL and INFORMAL.

 Formal organisation

Formal organisation is a fixed set of rules of organisation procedure and

structures. As such, it is usually set out in writing.

 Informal organisation

Informal organisation is a network of personal and social relationships that arise

as people associate with other people in a work environment.
 • In this there is a chain of authority which flows from
Line Organization upward to downword.

• In this form of organization all activities in the

Line and staff
oragnization are grouped according to the basic function
organization
i.e.production,finance and marketting.

• In it authority flows vertically within functional

Project Organization departments.

• In this form of organization the structure is basically that

of line organization but functional experts are appointed
functional organization
to advise line authority in their respective organiztion.

• Commmittee is a group of individual formed permenently

or temporarily for a particular purpose through free
Committee
Organization interchange of ideas.

WEAKNESSES

A Significant weakness of the tax preparation business in particular is the highly

seasonal nature of the work. This industry requires long hours at tax time, but
the availability of year-round work is extremely limited and can make it
difficult for the business to retain qualified staff, or find trained staff on short
notice during tax season. This same problem occurs with a book-keeping busies,
which is often much busier during year-end closing than at other times of the
year.

OPPORTUNITIES

An opportunity for both tax and book-keeping businesses is to combine

functions to provide additional business opportunities year-round. The creation
and sale of book-keeping software can also help to generate residual income
during the off-season. Strength for small tax or book-keeping businesses in
particular is the ability to network with other small businesses to develop a
market for your services.

THREATS

Significant external threats exist in the tax and book-keeping industry. Easy
internet-based programs simplify the process for the user and remove the need
for many people to seek out specialized tax or book-keeping services. In
addition, the larger industry giants represent significant competition, providing
incentives that smaller companies simply do not have the means to offer, such
as advance refunds. Brand recognition is also a threat to the small tax or book-
keeping business. Because customers must trust the company with their most
important financial information, failing to recognize the company name or
associate the brand as a trusted provider that will safeguard the information can
mean the loss of potential business.

Organizational Structure

 Partners
 Directors
 Senior Managers
  Managers
 Supervisors
 Senior Trainee Students
 Junior Trainees

Partners are often the founders of the firms. Most of the firms’ names are
associated with the names of partners. They are basically the main parties who
issue and sign any report (specifically audit report) on behalf of the firm.
Partners mostly communicate with the Senior Managers. In other words, the
progress of any report and any inquiry is made from the Senior Managers and
hierarchal structure is strictly followed to avoid any disruption.
Managers are inquired of by Senior Managers and mostly manager manage
audit field works etc. and after field work managers with cooperation of senior
managers makes and finalize any audit report to be issued. Senior Manager is a
qualified Chartered accountant having more than 10 year working experience.

Field work and information collection and implementation of policies by

adopting changes in rules & regulations is the main responsibility of supervisors
and trainees. They use different kind of techniques for error and fraud detection.

All the offices constitute different number of departments who basically handle
their respective functions. The major departments include:

 Audit and Assurance Department: Firm provides audit and assurance

services to wide range of clients which include performing audits of
financial statements of limited companies, NGOs and partnerships. Firm
also performs special assignments which include management audits,
internal audits and investigations. Audit focuses on business issues and
the matters that can impact on the financial statements, whilst also
retaining the basic audit procedures that test the information contained in
the financial statements. In doing so firm not only identify the non-
compliances but also assists clients in its rectification, designing
remedial measures and provides guidance to adhere with the laws and
regulations. Firm always endeavour to meet reporting deadlines as set
out by the laws and regulations or as mutually agreed with clients,
without compromising the professional, legal and ethical requirements.
Firm emphasis on delivering high quality services to clients, adding
value to their business through identification of existing and potential
control risks and suggesting best possible measures in the given
circumstances. Firm always place priority in deploying audit teams to
clients who are well equipped with the specific industry knowledge,
experience and are professionally sound.
  Tax & Corporate Department: Firm delivers taxation services to clients
and assists them in obtaining optimal tax benefits available under the
laws. Firm also assist clients to comply with the tax rules and regulations
and always keep them updated with the latest developments and
amendments. Tax personnel are qualified professionals, experienced and
knowledgeable. We maintain a comprehensive tax library which always
provides ready references and timely solution in complex situations.

Firm provides a comprehensive range of tax services which includes;

 Preparation and submission of annual tax returns

 Compliance services
 Tax advisory services
 Representation and litigation with tax authorities
 Personal income tax services

In Prakash Baka & Associate same staff is handling with tax matters as well as
corporate sector. While in corporate firm provides different kinds of services
relating to corporate sector from incorporation to winding up of a Company.

 Computer Department: Department handles the computer related matters

and assists other departments in working properly and efficiently.
Department deals with online filing of returns of income for tax
department and finalize audit reports in proper format in a presentable
manner. It deals with networking of computers in office and all other
problems which may be faced by computer users time to time.

 Correspondence Department: It handles with all the correspondence of

the firm by sending the solicited and unsolicited information from time to
time. Effectively and efficiently manage the day-to-day operations of the
 Correspondence. Interact with clients to resolve policy and customer
issues. Identify trends and remove obstacles in Statement production and
delivery by properly maintaining record of all communication for future
reference.

 HR Department: This department is mainly concerned with the

recruitment, hiring/firing of the firm and this department presents the
timely reports on effective utilization of the resources by the firm. A
purpose of the human resource is to keep the trained employees and
recruit new energetic staff to work. Another purpose of this department is
to provide a good working environment for staff and try to make by
facilitating them and arranging some recreational activities for them. HR
knows the real worth of its employees so cares for them and motivate
them to work more efficiently and diligently.

The hierarchy adopted by Prakash Baka & Associate is in accordance with the
legal structure a CA firm shall have. Although the ICAI rules permit of not
having the supervisors and does not make it mandatory having senior manager
and manager, yet this goes as additional benefit for the firm of having such an
extensive hierarchy.

Types of Audits conducted:

 Statutory Audit of Companies

 Tax Audit under Section 44AB of the Income Tax Act, 1961.
 Audit under other sections of the Income Tax Act, 1961 such as 80HHC,
80-IA, etc.
 Concurrent Audits.
 Revenue Audit of Banks.
  Branch Audits of Banks.
 Audit of PF Trusts, Charitable Trusts, Schools, etc.
 Audit of Co-operative Societies.
 Information System Audit
 Internal Audits.
 Overview of TDS Tax deducted at source (TDS) is a tax that is deducted
from income that a company in India pays to a recipient or supplier if the
income amount exceeds a specific statutory limit in a financial year.

The types of income that are subject to TDS include:

 Salary.
 Interest and dividends.
 Winnings from the lottery.
 Insurance commission.
 Rent.
 Fees from professional and technical services.
 Payments to contractors and subcontractors.

The withholding amounts for TDS can be deducted from an invoice submitted
by a supplier or from the payment that is issued to the recipient or supplier.
Examples of recipients and suppliers include contractors, providers of
professional services, employees, and real estate landlords. Companies submit a
TDS certificate to each supplier on a monthly or yearly basis. The certificate
includes the payments, as well as information about the company and supplier.
Companies must also submit an annual return to the government for each
recipient or supplier for the financial year. TDS certificate can be either Form
16 (R75I10A) or Form 26Q-P2P-IND (R75I122EQ). Form 16 is the TDS
certificate which an individual submits and Form 26Q is the TDS certificate
which a company submits to the tax authorities. TDS must also be deducted
from payments issued to third parties by both corporate and no corporate
entities. The entity must deposit the amount owed for withholding at any of the
designated branches of banks that are authorized to collect taxes on behalf of
the government of India. The entity must also submit the TDS returns, which
contain details about the payments and the challan for the tax deposited to the
Income Tax Department (ITD). For electronic TDS, companies must generate
the Form 26Q for each financial quarter. This is a statutory requirement for the
ITD.

Auditing - Audit Verification

Verification means the inspection of assets appearing in financial statements,

whether the assets are according to legislation or not.

Verification of assets and liabilities are done to confirm the following –

 Existence
 Ownership
 Proper valuation
 Possession
 Freedom from encumbrances
 Proper recording

Financial structure:

Since JVJ & Associates is a private partnership company, all the financial
information and reports are kept strictly confidential and handled by the
partners only. So, financial structure of the organization could not be identified
since the organization denied providing any sorts of financial information.

Organization Performance:
From my viewpoint, to the best of my knowledge and ability, I found the
overall performance of the organization above satisfactory level measured on
following criteria.

Financial

: Since, the financial data and information were not accessible; I am unable
to measure the actual financial performance of the organization. However,
looking at the rush of work and the nature of the services all-round the year and
throughout the country, there is no doubt that the organization has sound
financial performance. Moreover, the firm is the auditing and consulting firm
run/managed by the chartered accountants who are experts in the field
of finance. Hence, there is very less chance of the firm incurring losses.

Learning and growth:

During my internship period of 7 weeks, what I found is that the organization

has very energetic and motivated employees. There are very few senior and
junior managers above the age of 40 while most of the employees are Article
ships and trainees who age falls between 24 and 30. I found good learning and
sharing attitude not only in the young employees but also in the junior and
senior managers. I got good opportunity of learning as during the work, the
senior employees take time to teach their juniors about what is being done and
why it is being done. I feel privileged for such kind of opportunity I obtained.
Senior employees not only teach the juniors but also learn

things from juniors and they don’t feel shy

or shamed to learn new things that they were previously unaware of. There is
great opportunity in growth and promotion of employees. As soon as they
complete their final year and become qualified CAs and ACCAs, they get
promoted in their job as well as their remunerations. Employees are not so
highly satisfied with their jobs but they are not dissatisfied as well. I found high
employee turnover ratio in the organization because most of the Article ships
and trainees tend to opt for other alternatives after they become qualified
chartered accountants (CAs).

Customer

: Wherever I was assigned to work, I found the customers there; mostly give
priority tithe quick delivery of the required services and reporting rather than
the quality of work and reports. I must say that the delivery performance of the
organization is better as they do not cross the estimated time period and most
often the necessary work and reporting is completed before the prescheduled
deadline. I feel that the quality of the work is good from the perspective of
number of times the report gets checked and verified before the final report is
handed over to the customer. Or

ever, the quality of work not only depends upon the employees’ work

performance but also depends upon the role played by the customers. Because
of the quality of the work, delivery process and period, and the degree of
customization provided as per the need of the customers, I found high degree of
customer retention. Based on the customer retention rate and the delivery
performance, I came to conclusion that the customers are fairly satisfied with
the services they acquire.

Internal business processes:

Since the organization provides auditing and consulting services, it requires

high degree of customer interaction and customization, internal business
processes cannot be automated and the mass production cannot be achieved.
The quality and speed of work not only depends upon the employees

’
work performance but also depends upon the role played by the customers.
Since there are no different departments, there is no duplication of activities
across departments and there arises no questioning on process alignment

Products and Services:

The major products and services provided by the firm are

auditing, due diligence, account outsourcing, project management and

consulting services which are as follows:

Audit

Auditing is a systematic process of objectively obtaining and evaluating

evidence regarding assertions about economic actions and events to ascertain
the degree of correspondence between those assertions and established criteria
and communicating the results to interested users. The various types of auditing
services provided by the organization are Statutory Audit, Due Diligence Audit,
Internal Audit, External Audit, Financial Audit, Forensic Audit etc. The most
common types of audit are briefly explained below:

Financial Audits

: In a financial audit, the assertions about which the auditor seeks objective
evidence relate to the reliability and integrity of financial and occasionally,
operating information.

This type of audit usually covers the basic set of financial statements (Balance
Sheet, Income Statement, Statement of Cash flows, Statement of Changes in
Equity and notes to the financial statements)

Statutory Audit:
A legally required review of the accuracy of a company's or

governments’

financial records are what termed as Statutory Audit. The purpose of a statutory
audit is same as the purpose of any other audit - to determine whether an
organization is providing a fair and accurate representation of its
financial position by examining information such as bank balances,
bookkeeping records and financial transactions.

Due Diligence Audit:

Due Diligence is an extensive look at a company in order to make the

best informed business decision about a company. Due Diligence Audit is that
audit which is carried out in order to find/estimate the actual financial position
of the organization before a large decision is about to take place like mergers
and acquisitions, loan agreement, or when the company's financials are going to
be presented to the public. Due diligence audit includes thorough investigations
of the books and records that can range from asset appraisals to day to day
transactions. A thorough understanding of internal controls and its effectiveness
also become necessary to ensure the risk for the business is as low as possible.

Internal Audit:

Internal audit is an independent, objective assurance and consulting activity

designed to add value and improve an organization’s governance, risk
management and management controls over: efficiency/effectiveness of
operations (including safeguarding of assets), the reliability of financial and
management reporting, and compliance with laws and regulations.

Compliance Audit:

A compliance audit determines the extent to which rules, policies, laws

covenants, or governmental regulations are followed by the entity being audited.
For example, examination of tax returns of individuals and companies by the
Internal Revenue Department for compliance with the tax laws.

Account Outsourcing:

Outsourcing is gaining popularity as a way to reduce financial and operational

risks by making them easier to manage. Keeping this in mind, the firm provides
accounting services to various organizations. Business organizations can
alleviate the burden of staying on top of frequent changes to tax codes and
accounting regulations and provide increased levels of information
transparency, visibility of controls and clarity of accountability by outsourcing
of accounting system.

Company Establishment:

The firm also extends its services towards establishment of organizations and
corporation. The firm helps in registration in company registrar office as per the
company act 2063, acquiring of certificate of commencement of business, etc.

Tax Management:

The firm also helps in tax management for organizations. Organizations can
acquire services like calculation of income tax, management of Value Added
Tax (VAT), Tax Deducted at Source, timely filing and payment of tax to Inland
Revenue Department, etc.

Consultancy and Training

The firm also offers advising and counselling services on matters relating to
accounting system, tax procedures, company establishment, and numerous
other financial matters. The firm provides consultancy services in areas of
Country Strategic Papers, Restructuring policies and Internal Control System
Development, Mergers/Demergers, Financial Controller/ Due Diligence
Review/Special Review of various Infrastructure projects on behalf of
commercial banks; Forensic Audits, etc.

CHAPTER 2: LEARNING
OBJECTIVES
Learning Objectives

Meaning of Vouching Voucher is known as the evident for the support of a

transaction in the books of account. It may be bill, receipts, requisition form,
agreement, decision, bank paying slip etc. The act of examining documentary
evidence in order to ascertain the accuracy of entries in the account books is
called "Vouching". Vouching is a technical term which refers to the inspection
by the auditor of documentary evidence supporting and substantiating a
transaction. Simply stated, vouching means a careful examination of all original
evidence i.e. invoices, statements, receipts, correspondence, minutes and
contracts etc. with a view to ascertain the accuracy of the entries in the books of
accounts and also to find out, as far as possible, that no entries have been
omitted in the books of accounts. Therefore, vouching is the act of testing the
truth of entries appearing in the primary books of accounts. It is initial for
auditing.

Objectives of Vouching Main objective of vouching is to find out the regularity

or irregularity of transactions, frauds and errors. Regularity means maintaining
record and performing the work compliance with the rules, regulation and law.
But irregularity means doing the work crossing to the line of rules, regulation
and laws. Some of the major objectives of vouching are given below:

1. To Detect Errors and Frauds

All transactions are to be supported by evidence. Each document should be

proved by authorized authority. With the help of vouching we can detect errors
 and frauds by verifying each transaction. Planned fraud can be detected
through vouching.

2. To Know the Truth of Account

Each and every transaction is checked and ratified on the basis of support
document. So, we can easily know the truth of account.

3. To Find the Unrecorded Transactions

Each and every transaction is checked and ratified on the basis of document.
Vouching helps to find out the unrecorded or missing transactions. If any
voucher is found unrecorded, auditor can suggest to record such transactions.

4. To Know That All the Transactions Are Authorized

If the transactions are made on the consent of concerned authority, such

transactions are known as authorized transactions. If transactions are not
authorized, such transactions can be fictitious transactions. So, such fictitious
transactions ca be found with the help of vouching.

5. To Know That Only the Business Transactions Are Recorded

Sometimes, transactions are performed for individual purpose but payment is

made out of business. Such transactions should not be recorded in account of
business. If such transactions are recorded, we can find it with the help of
vouching. To know the real profit or loss of business, such transactions are
to be separated.

Objective of Vouching and Verification

I choose to work with JVJ & Associates. During this internship I have learnt
many new skills. Before internship I have only theoretical knowledge about
work in organisation but now, I have practical some practical experience of
working in organisation.

Now I have knowledge about the organisation’s working environment and how
organisations work and achieve their goals and objectives. This internship has to
gives me the understanding of business and also about the elements of strategic
thinking, planning and implementation, and how these things are applied in a
real world organisation environment. Following are the objectives that I have in
my mind before working as an internee.

 To understand the practical aspects and concept of vouching and

verification
 To learn the documentation procedure of vouching and verification for
purchase and sale transactions
 To analyse the impact of vouching and verification on financial
transactions.
CHAPTER3: LEARNING
OUTCOME
I have tried my best to enhance my abilities and apply the knowledge that I
gained during the studies. On my first day at firm, company secretary Miss.
Enzi Goal gave me training session about TDS returns and computerised
accounting in tally software. Mr. Rahul Goal (assistant) also shared his practical
experience with me and gave me some techniques of this process.
Different task that I performed during my internship:
1. Maintenance of accounts/ book keeping.
2. TDS return preparation.
3. VAT returns preparation.
Software used during internship:
1. Tally software

Overview of Vouching
“Examination of all documentary evidence in support of a transaction and
includes identification of any document that should be available to the auditor to
carry out that examination”
Common points in vouching
 Serial number of vouchers and they are filed properly

 Date of voucher

 Addressed to the client and relate to business of client

 Amount shown in figure should match with words

 Signature of official authorizing officer

 Revenue stamp if amount is rupees 5000 and above

 Vouchers originating from outside the business are genuine.

Types of vouchers

 Primary
  Secondary

 Primary vouchers – original evidence – cash memos, rent receipts,

agreements, salaries statement, purchase invoice etc.

Secondary – Also called as collateral vouchers • Copies of original

evidence, carbon copies, counterfoils of pay in slips etc.

Vouching procedure

 Check General consideration

 Check Internal control
 Check Cash book
 Check Bank
 Check Documentary evidence
 Check Authority
 Check Acknowledgements
 Check type of expenditure (Capital / revenue)
 Routine checking

Vouching procedure for salaries and wages

Examining the internal control procedure: Before proceeding to verify payment
made on account of salaries and wages the auditor should examine the internal
control procedure as regard the following
 Appointment, promotion and transfer of employees.
 Records of attendance.
 Arrangement for the preparation bill and their analysis.
 Sanctioning and disbursement of wages and salaries.
 Custody of the wages record.
Auditing - Audit Verification
Verification means the inspection of assets appearing in financial statements,
whether the assets are according to legislation or not. Verification of assets and
liabilities are done to confirm the following
  Existence
 Ownership
 Proper valuation
 Possession
 Freedom from encumbrances
 Proper recording.
Objectives of Verification
Following are the objectives of Verification
 Confirmation about the existence of assets through physical verification.
 Legal and official documents relating to assets are checked to confirm the
ownership of assets.
 It is confirmed that assets are free from any charge of lien. Proof
regarding proper valuation of assets.
 Proof regarding proper valuation of assets.
 To confirm that assets are properly accounted for in the books of
accounts.
Vouching and Verification
Both are considered to be same thing but there are lots of difference between
vouching and verification.
Vouching relates to confirmation of the correctness and authenticity of
accounting entries as appeared in the books of accounts whereas verification
confirms in the books of accounts whereas verification confirms the existence,
ownership and the existence, ownership and valuation of valuation of assets as
appears in the balance sheet. The Auditor’s duty is not only vouching the entries
appearing assets as appears in the balance sheet. The Auditor’s duty is not only
vouching the entries appearing in the books because vouching cannot prove the
existence of the related asset or liabilities at the in the books because vouching
cannot prove the existence of the related asset or liabilities at the balance sheet
date.

Verification of Assets and liabilities

Verification of assets Definition Spicer and Pegler “The verification of assets
implies an inquiry in to the value, ownership and title, existence and possession,
and the presence of any charge on the asset” Verification of Assets Verification
is an important audit process of inspection and collection of information and
examination of documentary evidence to confirm that
1. Assets were in existence on the balance sheet date.
2. Assets have been acquired for the purpose of the business and under a
proper authority.
3. Right of ownership of the asset vested in or belonged to the undertaking.
4. Assets are free from any lien or charge not disclosed in the balance sheet.
5. Assets have been correctly valued having regard to their physical
condition.
6. And assets values are correctly disclosed in the balance sheet.

Auditors duty

• Verification of asset is primarily the reasonability of management.

• Auditor’s duty is limited only to an appraisal of the evidence, their

inspection and reporting on matters affecting their valuation, existence and
title, observed in the course of such an examination.

Valuation of fixed assets

Following points should be considered while valuation of fixed assets

1. Cost less depreciation

2. Cost include all expenditure necessary to bring asset in to existence and
put them in working condition
3. Fluctuation in market values are ignored
Verification of preliminary expenses
 Introduction
 Preliminary expenses are all expenses relating to the formation of an
enterprise such as
 Registration fees
 Cost of printing document like memorandum of association and
The audit procedure for verification of preliminary expenses is given below
• 1. Documentary evidence
• Verify the amount of preliminary expenses shown in the balance sheet with
reference to documents such us agreement, bills, receipts etc.
• 2. Compare the amount with that disclosed in statutory report
• 3. Disclosure requirement Article of association
• Examine whether as per disclosure requirement expenses on issue of share and
debentures are being shown separately and are not included in preliminary
expenses.
• 4. Check for reimbursement of preliminary expenses incurred by promoters
• 5. Check for amortization of expenses
• Preliminary expenses are to be amortized over period of ten years on a
straight-line basis as per income tax act 1961
Verification of sundry creditors
• Obtain the schedule of creditors and examine it with reference to
individual creditors account to verify
–Discount earned
–Rebates –Returns
–Outstanding beyond normal credit period
• Inspect document underlying purchases to verify
–Invoices
–Goods received note
Sundry creditors
Vouch payments to creditors with reference to – Cash book/pass book
– Vouchers
– Cheque book
• Verify the cut-of procedure adopted by business at the year end to see
unrecorded liability if any
• Confirmation from Creditors Auditor may communicate directly with
creditor so as to confirm the amount on balance sheet date.
• Check for bills payable accepted during the year
• 7. Examine valuation and disclosure Ensure that creditors have been
disclosed properly in financial statements as per recognized accounting
principal
VALUATION AND VERIFICATION OF INVENTORIES (STOCK)
What is inventory
1. Goods purchased for resale
2. Finished goods for sale
3. Raw materials
4. Work in progress
5. Spare parts and consumable stores
6. Packing materials and returnable containers Why Inventory Valuation • To
know true and fair financial position • Overvaluation or under valuation of
inventory will have direct impact on profit/loss
Internal control evaluation
Check internal control with regard to
1. Purchases
2. Issue
3. Balance
Examination of Records
Books of accounts
1. Store/stock register
2. Purchase book
3. Sales book
4. Purchase return and sales return book.
Documents
1. Purchase order
2. Vendor’s invoices
3. Goods received note
4. Inspection report,
5. Material Issue note
6. Bin card etc.
Verification of Vouchers report provides the Vouching facility to the Auditor by
displaying all the transactions. The Auditor has the flexibility to audit all the
transactions or apply the required sampling method and audit only the sampled
transactions to form his opinion.
To view the Verification of Vouchers report,
Go to Gateway of Tally > Audit & Compliance > Audit & Analysis >
Verification of Vouchers

From the above report the Auditor can press Enter on any of the Voucher Types
and press Enter to view the Voucher Monthly Register. From Voucher Monthly
Summary the Voucher Register can be viewed and the Vouchers can be audited.
The Verification of Vouchers report displays all voucher types having
transaction in the audit year along with the details of Voucher Count (of Total
Vouchers and Audited Vouchers) and Sampling Method’
Particulars: Displays the name of the Voucher Type.
Sampling Method: Displays the name of the Sampling method which is
applied at the voucher level.
 Total Vouchers: Displays the total number of Vouchers passed under each
Voucher Type.
Audited Vouchers: Displays the total number of Vouchers which are already
audited for each Voucher Type
Sampled Vouchers: Displays the Sampled Voucher count.
Note: The Sampled Voucher count will be displayed against each Ledger entry
in a Voucher, because of this the sampled Voucher count can be more than the
Actual Vouchers. Example: If there are more than one Expense Ledgers in a
Voucher and the Sampling is applied at the Group/Subgroup Level, then the
Sampled Voucher count will be equal to the number of Expense Ledgers in the
Voucher.
Button options in the Verification of Vouchers report
F2: Period
Click on F2: Period or press F2 key to change the selected period.
F4: Chg. VT

Click on F4: Chg. VT or press F4 to select the required Voucher Type

 Press Enter to view the report for the selected Voucher Type.

F7: Show Sampled

Click on F7: Show Sampled or press F7 to view the Sampled Vouchers alone.

F7: Show Audited

Click on F7: Show Audited or press Alt+F7 to view the Audited Vouchers
alone.
Ctrl+F9: Master Confit
Click Ctrl+F9: Master Confit or press Ctrl+F9 keys to identify Related
Parties, Periodic Ledgers and apply Sampling methods for analysis.
Ctrl +V: Group/Ledger wise
Click Ctrl +V: Group/Ledger wise or press Ctrl +V keys to display the
Group wise verification screen. Commented [WU1]:
he Verification of Vouchers report displays all Primary Groups along with the
details of Voucher Count and Sampling Method.

 Particulars: Displays the name of the Primary Group.

 Sampling Method: Displays the name of the Sampling method which
is applied at the Group level.
Note: The Sampling Methods can be applied using
the Ctrl+F9: Master Confit button.
 Total Group Vouchers: Displays the total number of vouchers passed
under each Primary Group.
 Verified Group Vouchers: Displays the total number of vouchers
which are already verified for each Group
 Sampled Vouchers: Displays the Sampled Voucher count
Note: The Sampled Voucher count will be displayed against
each Ledger entry in a Voucher, because of this the sampled
voucher count can be more than the actual vouchers.

Example: If there are more than one Expense Ledgers in a

Voucher and the Sampling is applied at
the Group/Subgroup Level, then the Sampled Voucher count
will be equal to the number of Expense Ledgers in the Voucher

To view the Working Paper during verification, click Ctrl + W: Wig

Paper button or press Ctrl + W key. The details displayed in Working Paper will
be relevant to the report from where it is triggered.

F9: In Reports

Click F9: In Reports or press F9 key to navigate to the default Inventory

Reports like Go down Summary, Movement Analysis, Stock Summary etc.

F10: Act Reports

Click F10: Act Reports or press F10 key to navigate to the default Accounting
Reports like Balance Sheet, Cash Flow, Trial Balance etc.

F10: Analysis Reports

Click F10: Analysis Reports or press Alt+F10 keys to navigate to the
other Analysis Reports

F12: Configure

Click F12: Configure or press F12 to change the default view for the
Verification of Vouchers report.

 Show Sampling Description: Set this option to Yes to display the

Sampling Method description along with the name of the Sampling
Method.
 Show Type of Vouchers: Set this option to Yes to display the Primary
Voucher Type
he Verification of Vouchers report with the above configuration appears as
shown:

The user can press Enter on any Group or Subgroup or Ledger to view
the Ledger Vouchers report for Verification of Vouchers.
F12: Range

Click F12: Range or press Alt+F12 to use the Range Filter option to search the
specific vouchers from the list of vouchers under each Voucher Type.

F12: Configure

Click on F12: Configure or press F12 to modify the default display for the
above report.

 Show Outstanding Sales Orders: Set this option to Yes to view the
Sales Orders which are pending even after the due date.
 Show Cleared Sales Orders: Set this option to Yes to view the Cleared
Sales Orders for the selected Party.
 Show Goods delivered but Orders Not Red: Set this option to Yes to
view the display the Orders for which the Goods are delivered without
Purchase Orders.
 Show Batch Details: Set this option to Yes to display the Batch details
for Items.
 Show Location Details: Set this option to Yes to display the
Location/Go down details for Items.
 Show Forex Transactions: Set this option to Yes to display only the
orders involving the multi-currency.
  Show using Alternate Units: Set this option to Yes to display the order
details in Alternate Unit of Measurement defined for the Stock Item.
 Show Tail Units of Compound Units: Set this option to Yes to display
the order details in Tale unit of compound units defined for the Stock
Item.
 Appearance of Stock Items: Select the appropriate Display Name
Style from the list for stock Items

Ctrl +W: Audit Wig Paper

To view the Audit Working Paper during Auditing, click on Ctrl +W: Audit Wig
Paper or press Ctrl +W keys. The details displayed in Audit Working Paper will
be relevant to report from where it is triggered

F9: In Reports

Click on F9: In Reports or press F9 key to navigate to the default Inventory

Reports like Go down Summary, Movement Analysis, Stock Summary etc.

F10: Act Reports

Click on F10: Act Reports or press F10 key to navigate to the

default Accounting Reports like Balance Sheet, Cash Flow, Trial Balance etc.
F10: Audit Reports

Click on F10: Audit Reports or press Alt+F10 keys to navigate to the

other Audit Reports within Statutory Audit and 44AB Audit (Tax Audit).

Button options in the Verification of Vouchers report

F2: Period

Click F2: Period or press F2 key to change the selected period.

F4: Chg. VT

Click F4: Chg. VT or press F4 to select the required Voucher Type

Press Enter to view the report for the selected Voucher Type.
Overview

One or more receipt records might correspond to an invoice. For example, if the
billing amount on an invoice is 100.00, it might correspond to one receipt
record for 100.00 worth of items, or two receipt records for 50.00 worth of
items. If multiple receipt records correspond to an invoice, you can review a
summary of all corresponding receipt records.
You might receive an invoice adjustment after you create a voucher. The
adjustment might reflect cost changes to a specific item or an error on the initial
invoice. In this situation, you can create a voucher for an invoice adjustment.

Choosing Receipt Records to Match to an Invoice

Navigation

From Stock Based Procurement (G43A), choose Receipts Matching and Posting

From Receipts Matching and Posting (G43A15), choose Match Voucher to

Open Receipt

To create a voucher from an invoice, you must locate the receipt records that
correspond to the invoice and match them to the invoice. For example, if a
supplier has sent you an invoice for 100.00, you must locate and match the
receipt records for the 100.00 worth of items that correspond to the invoice.

The total amount of the receipt records you match to an invoice must equal the
amount on the invoice. For example, if two receipt records correspond to an
invoice and each receipt record is for 200.00, the invoice amount must equal
400.00 to perform a match.

If an invoice reflects a partial order, you can change the quantity or amount of a
receipt record to match the invoice. The system leaves the remaining balance of
the receipt record open. For example, if a receipt record reflects 100 items, but
the invoice amount reflects 50 items, you can change the receipt record quantity
to 50. You can create a voucher for the remaining 50 items at a later time.

The system creates a voucher interactively when you match receipt records to
an invoice.

If you do not record receipt information, you must match purchase order detail
lines to invoices to create vouchers (two-way voucher match). For example, if a
supplier sends you an invoice for 100.00, you must locate and match the
purchase order detail lines that contain the corresponding 100.00 worth of
items.

To prevent employees from changing the Supplier, set the Protect the Supplier
field processing option to 1.

To choose receipt records to match to an invoice

On Match Voucher to Open Receipt (P4314)

Match Voucher to Open Receipt screen/

1. Complete the following fields: o Match Type O Branch/Plant

2. To locate receipt records or purchase order detail lines for a specific purchase
order, complete the P.O. Number field and press Enter.

3. To locate receipt records or purchase order detail lines for a specific supplier,
complete the Supplier field and press Enter.

4. To enter invoice information, complete the following fields: o Invoice

Number of Invoice Amount of Date of G/L Date of Tax on Taxable Amount
5. Do not press Enter.

You can have the system enter the amount, tax, and taxable amount based on
the receipt records you choose to match to the invoice.

6. To increase or decrease quantities or amounts, modify the following fields: o

Open to Voucher Quantity O Open to Voucher Amount

If you are working with receipt records, you cannot increase the quantity to
reflect an invoice. You must first receive the additional quantity from the Enter
Receipts program. If you increase the amount for a receipt record, the system
creates journal entries to account for the variance.

7.To choose the lines you want to match, complete the following field and press
Enter: o (O) Option 8. Press F9 to repopulate the video with the prior
transaction.

8. Press F9 to repopulate the video with the prior transaction.

9. Press F10 to access Voucher Entry to review the resulting voucher.

Choosing Summarized Receipt Records to Match to an Invoice

Navigation

From Stock Based Procurement, choose Receipts Matching and Posting

From Receipts Matching and Posting, choose Summary Voucher

To create vouchers from invoices, you must locate the receipt records that
correspond to an invoice and match them to the invoice. This can be a time
consuming task if a large number of receipt records correspond to an invoice.

You can summarize receipt records to match them to an invoice. For example,
you receive an invoice for all calendars you have ordered from AAA Office
Supply Company in the last month. You can summarize all receipts records for
the calendars into a single line and match the line to the invoice to create a
voucher. You can summarize records by item, company, currency code, and
cost rule.

This method of creating vouchers is applicable only if you purchase items to

inventory. You cannot use this method to match purchase order detail lines to
invoices (two-way voucher match) or to create vouchers for partial orders. You
cannot change tax information or apply landed costs to summarized lines.

To choose summarized receipt records to match to an invoice

1. Type S in the following field: o Summary/Detail

2. To locate summary receipt records for an invoice, complete the following

fields, as necessary, and press Enter:

o Receipt Date

o Receipt Thru O Branch/Plant

o Match Type O Supplier

o Item Number of Agreement Nor

3. To specify invoice information, complete the following fields: o Invoice

Number of Invoice Amount of Invoice Date O G/L Date O Company

Do not press Enter.

4. To match summary lines to the invoice, complete the following field and
press Enter: o (Option Exit)

If you type 1 in the Option Exit field, the system uses a batch process to create a
single voucher.

If you type 2 in the Option Exit field, the system accesses the Voucher Match
program, from which you must manually match to the invoice each receipt
record that makes up the summary line
Recording Invoice Adjustments

Navigation

From Stock Based Procurement (G43A), choose Receipts Matching and Posting

From Receipts Matching and Posting (G43A15), choose Summary Voucher

You might receive an invoice adjustment that reflects a price change to an item
or an error to a previous invoice. For example, you receive an invoice for 100
items at 10.00 each and later you receive another invoice that adjusts the cost of
the items to 9.00 each. You can create a new voucher that reflects an adjustment
to the previous voucher.

To record invoice adjustments

You might have an agreement with certain suppliers that your receipt records
are sufficient for creating vouchers. When such an agreement exists, the
supplier does not need to send you an invoice, and you can avoid manually
matching receipt records to invoices to create vouchers.

Creating Multiple Vouchers from Receipt Records

Navigation

From Stock Based Procurement (G43A), choose Receipts Matching and Posting

From Receipts Matching and Posting (G43A15), choose Evaluated Receipt

Settlement

You can run the Evaluated Receipt Settlement (P43800) procedure to create
vouchers from receipt records in batch mode. You indicate the receipts for
which the system

Edits for errors

Calculates taxes and discounts

 Creates vouchers

Generates journal entries

You can run Evaluated Receipt Settlement in proof mode to review the receipts
for which the system will create vouch correct them. After you have corrected
any errors, you can run the program in final mode to create vouchers.

After the system creates the vouchers, you work with them as you would with
any standard voucher.

When you run Evaluated Receipt Settlement, the system generates two reports.
If you run the program in proof mode, the first report contains all receipts for
which the system will create vouchers. If you run the program in final mode, the
report contains the voucher number, voucher amount, and so forth, for each
receipt.
The system creates accounts payable offsetting entries when you post the
voucher journal entries to the general ledger. You can set processing option 35
behind the Voucher Match program to automatically submit the post program
(P09800) after you perform a match.

For example, if you create a voucher for 100.00 worth of items that you
formally received, the system creates the following journal entries:

1 Formal Receipts Journal Entries

If you create a voucher for 100.00 worth of items that you did not formally
receive, the system creates the following journal entries.

If you create a voucher for 100.00 worth of items that you did not formally
receive, the system creates the following journal entries:

2. Informal Receipts Journal Entries

If a variance exists between the cost of goods or services on a purchase order or

receipt record and the cost on the voucher, the system creates journal entries for
the variance. You must specify variance accounts in Automatic Accounting
Instructions. You maintain these types of variance accounts in AAI tables 4330
and 4332.
For example, if you enter a voucher for 80.00 worth of inventory items and the
cost of the items at the time of receipt was 100.00, the system creates the
following journal entries:
3 Formal Receipts Variance Journal Entries

You can review the journal entries that the system creates for a voucher on
Voucher Journal Review. You can review the amount of each entry and the
account to which each amount is debited or credited.
When you create or reverse vouchers, the system displays a voucher number
and batch number on the Voucher Match screen (P4314). You might want to
note these numbers so that you can locate journal entries by batch and document
numbers.

You can distribute a single expense to multiple accounts. For example, you can
purchase 100 reams of paper and distribute the expense of the paper to several
different departments. You can distribute the expense at purchase order entry or
when you create the voucher.
If you distribute an expense at purchase order entry, the system generates the
following journal entries when you create the voucher, based on the accounts to
which you distributed the expense:
Debits the received not vouchered account for each of the distribution
accounts (if you performed a formal receipt)
Debits each of the distribution accounts (if you did not perform a formal
receipt)
For example, you enter a purchase order detail line for 90.00 worth of office
supplies. You distribute the expense equally to three departments (A, B, and C)
at purchase order entry. When the supplier delivers the office supplies, you
enter a formal receipt. The system generates the following entries when you
create the voucher:
4 Equal Expense Distribution Journal Entries

If you did not enter a formal receipt for the office supplies, the system generates
the following entries when you create the voucher:
5 Equal Expense Distribution (No Formal Receipts) Journal Entries

The system credits the Accounts Payable Trade account for 90.00 when you
post the entries described above to the general ledger.
You can distribute or redistribute an expense when you create a voucher. To do
this, you must specify each account that the system is to debit and credit and the
amount of each debit or credit.
For example, you order 90.00 worth of office supplies that you charge to the
office supplies expense account at purchase order entry. At voucher entry, you
want to redistribute the expense equally to three departments (A, B, and C). To
do this, you must specify the debit and credit side of each entry, as follows:
(90.00) Office supplies expense account
30.00 Department A expense account
30.00 Department B expense account
30.00 Department C expense account
[45]

Notice that you must remove the expense from the account on the detail line to
distribute the expense to the three departments.
Based on this example, if you entered a formal receipt for the office supplies,
the system generates the following journal entries when you create the voucher:
6 Specified Accounts Formal Receipts

If you did not enter a formal receipt for the office supplies, the system generates
the following entries when you create the voucher:
 CHAPTER 4: OBSERVATION
‘
Chapter 5: Conclusion and
Suggestion
Learning

 I learned through my training program, that how I can

 Improve communication skills.
 Analyse the business situation.
 Establish high standard in professionalism.
 Learn more than the theoretical knowledge.
 Learn book keeping practices of different companies.
 Apply the theoretical knowledge in actual organisation.
 Compare practical aspects with theoretical aspects.
 Make quick decision in real situation.
 Learn how promote and conduct research in business area.
 Promote my personal knowledge and professional preparation for future.
To properly integrate my theoretical knowledge and practical work.
 Plan for the future of oneself and learn how to adjust in an organisation.
 Know how to present your recommendations in front of your boss.
 Get knowledge of opportunities and threats while entering into an
organisation.
 Get exposure to do a work in an organisation and also known about
organisational behaviour, ethical rules and regulations.

Conclusion

Chartered Accountancy is one of the most prestigious profession in all over the
world. This profession requires to maintain standards and procedures in
conducting audit consultancy, taxation etc. works. International standards on
auditing provides basic guidelines that chartered accountants need to adopt.
Apart from auditing procedures provided by International standards on auditing
(ISAs) every Chartered Accountant firm has some discretion in their audit
procedures depending upon the situation of the respective country and nature of
clients.

In this report, I tried to the best of my knowledge to present the audit procedures
followed by JVJ & Associate. In conducting their audit works. Mainly, JVJ &
Associate. follows the audit procedures set by ICAB in most cases except for
area that requires professional judgment. From my working experiences in JVJ
& Associate. it has been found that in some respects JVJ & Associate. does not
strictly follow the standard of audit procedures.

From the formation of JVJ & Associate. contributes to a great extent in ensuring
the transparency in the presentation of financial statements of various entities of
various of Bangladesh. Proper adoption of standard audit procedures will lead
JVJ & Associate.