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CHAPTER I

INTRODUCTION

1.0 Industrial Training
1.1

Industrial Training Background
Industrial training is one of the important courses in the curriculum for the
undergraduate program of any courses that is compulsory for all students. For
University Kuala Lumpur the student needs to undergo his or her INTRA
(Industrial Training) normally accumulated during the end of third or fourth
year for 6 months. This course is a graduation requirement for the Bachelor
Degree students.

1.2

Industrial Training Objective
The main objective for student to undergo the Industrial Training is to expose
students with the current practice, problems and challenges of real work and a
source of reference. Besides it provide experience for the students to learn
problem solving technique encountered during work and be able to contribute
valuable idea to the organizations. On the other hand it gives opportunities for
the organization to train and identify the credibility of local university
graduates.

1.3

The details of the practical training information are as follows :
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Training Period : June 22nd 2015 to November 30th 2015

1.4

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Company : K K Chow & Partners (Chartered Accountant)

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Location : 2-7-9 to 2-7-12, 7th Floor Menara KLH Business Centre,
No 2 Jalan Kasipillay, off 2 ½ Miles Jalan Ipoh,
51200 Kuala Lumpur

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Department : Audit Department

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Supervisor : Mr. William Chan

The benefits of industrial training

The industrial training program brings benefits to the students itself. The benefit not only on
the technical part but it also shapes a positive attitude towards the field of employment option
in the market.
Firstly, it helps to improve communication skill of the students. While performed the
industrial training, it will help the students to improve their English language and also
increased the level of self-confidence of the student when communicate with the clients and
staff in the office. In addition, this program also help student to communicate well with the
society and it help to complete the audit work in proper way.
Furthermore, this industrial training also helps the student expand their knowledge
and help to practice their academic knowledge in the outside world. This means that the
students are able to gain knowledge while working in the firm in term of information
technology (IT) like Microsoft office, accounting software and also the Microsoft Excel. This
is because sometimes I will use the Microsoft Excel in preparing the audit working papers
and draft the annual report so that the audit process will become more effectively and
efficiently. The work will become efficient because the working paper does not need to
manually calculate and by using Microsoft Excel it will automatically calculate by using
formula.

Besides that, industrial training also will help the student to expose themselves in the
real working environment with the real cases or scenario. This will help the students to
produce a quality of work while performing the work. It also increase occupational
networking opportunities for future used.
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Lastly, this program also will foster a good relationship with the university. Every
student will bring not only their name but their University name also. Thus it will increase the
reputation of their University.

CHAPTER II

PRESENTATION OF K K CHOW & PARTNERS

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2.0 Company Background
2.1 Company profile
Name of Company
Address

: K K Chow & Partners
: 2-7-9 to 2-7-12, 7th Floor Menara KLH Business
Centre, No 2 Jalan Kasipillay, off 2 ½ Miles Jalan

Telephone/Fax No
Industry
E-mail
No of employee

Ipoh, 51200 Kuala Lumpur
03-23812066 / 03-23812166
Auditing
general@kkchow.com.my
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2.2 Location
2-7-9 to 2-7-12, 7th Floor Menara KLH Business Centre,
No 2 Jalan Kasipillay, off 2 ½ Miles Jalan Ipoh,
51200 Kuala Lumpur

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2: Building of Menara KLH 2. Figure 2.3 History of Company 5 | Page .2.1: Maps to K K Chow & Co.2.Figure 2.

Kee Kan Chow who now plays as the mentor for the K K Chow & Partners Groups. design of accounting system and tax planning. the company also carry out the management consultancy services for example preparing the profit and cash flow forecast. The two Audit Managers involve are Mr. the company started with three employees and gradually expanded to the current size of staff approximately more than 20 persons. 2. Moreover. project feasibility studies. the Ministry of Finance has approved the registration of Auditor Company under section 8 of the companies’ act. which offered the Chartered Accountants practice. Chia Hon Shong. The company professional services include essentially statutory audit of limited companies. 1967 in which was established December 1984. profit improvements. Hong Thuan Boon and Mr. After servicing for few years. mergers and take over companies. clubs and associations. In early stage. The company also performs as the tax consultant agent for individuals and companies. the company changed the name to K K Chow & Partners due to the Audit Manager was admitted as a partner of the firm. vision and mission . Then. This company also approved tax agent and consultants under the Income Tax Act. Mr. The name of the company’s name was taken from the founder of the K K Chow & Co itself. in July 1994. 1965 further registered with the Companies Commission of Malaysia. this company was known as the K K Chow & Co.4 6 | Page Company objective. These employees are those whom majority of them possess the relevant professional qualification and experiences. societies and partnership.Formerly. cost reduction studies.

2 Vision The company’s vision is to be a choice for an individual’s to love work in with local expertise and international network. providing value added services to the clients and always over achieving client delivery. financial. 2.2. management accounting and tax services to client according to the professional standard.1 Objective The company’s objective is to provide excellent audit.4. our professionals commit their skills world-wide standards and a common work ethic of innovative thinking to develop results for their clients. 2.4.4. 2.3 Mission The company’s mission is to provide quality service through high level thought.5 7 | Page Organizational chart .

Chow Kee Kan (Director) Administration Department Miss Poh ( HR Executive) Staffs Audit Department Mr. Zen Chow (Tax Manager) Staffs . Tan Lee Lee (Supervisor) Staffs 2. William Chan (Audit Manager) Mrs.Mr.6 8 | Page Audit department organization chart Tax Department Mr.

Tan Lee Lee (Supervisor) Senior audit staff Junior audit staff Trainee Students 2.Mr. William Chan Heng Guan (Audit Manager) Mrs. Chow Kee Kan (Senior Partner) Mr.7 9 | Page Company services .

This is to make sure the client information is kept safe and secure.1 Audit and financial services – K. K K Chow & partners also provide financial advice on takeover companies.The practices of the company essentially are structures under three divisions which are audit and financial services. Tan Lee Lee who also qualified auditor and been worked almost 11 years. this services is 10 | P a g e . This is because there are some of the client did not use accounting system to record their transaction and record it manually in books and files. The entire client’s information is kept manually and tags accordingly so the staff can find the relevant documents and forms in the company secretary. restructuring. He is a member of Malaysian Institute of Accountant (MIA) and hold Association of Chartered Certified Accountants (ACCA) certificate. Approximately nine persons consist of senior auditor and junior auditor works currently in this division. it is led by Mr. management consultancy services and tax planning and consultancy services. William Chan Heng Guan. Additionally. and conversion of partnership into the limited companies. The available services that the company provides to the client are documentation of statutory audit not only to the public but also to the private limited companies. He also has a vast knowledge in audit and accounting experiences in tax and management consultancy work for almost 15 years. Therefore.K Chow & Partners For audit division. it’s also provide the purchase investigation and share evaluation. Furthermore. These three divisions are led by very experienced person and possess professional qualification such as Association of Chartered Certified Accountants (ACCA) and member of Malaysian Institute of Accountant (MIA). The accounting system that been used is the USB accounting software and three staff working under this division.7. the financial division also provides accounting services and accounting system set-up. Besides that. 2. He was assist by Mrs.

they also provide recommendation on improvements in internal control system besides designing various types of accounting system that suitable with the client company’s business nature. this division provide register of certificate (ROC) files. 2. Bhd The company also realizes the need to provide relevant and necessary management service in order to help out the client in their business operations.7. Not only that. minutes book and register of members book that 11 | P a g e . the company believed by providing these services it will assist the client to operate their business more efficiently and effectively. this division also offers provision of computerized accounting services such as monthly preparation of profit and loss account. this division also work as advisory for instance in matter of compliance to Company’s legislation in Malaysia. Thirdly.2 Management consultancy services – Active Management Consultant Sdn. Secondly. Some of the services that available are to assist various forms of business registration application for business licenses. like other division. cash-flow statements and working trial balances and opening balance for the clients. Other than that. Secretarial files. This is because not all company is aware of the right procedure in application for business licenses which sometimes requires time and days. policies and guidelines on foreign investment. provide information on Government’s legislation. exchange control regulations and consult with the client in making decision for assets acquisition decision and loans applications. Therefore.quite demanding by the client due to the world today depend on more technologies. this company believes this service will help those individual and groups to establish a company. it also prepare the special reports of profit and loss statements and cash-flow forecasts. Nevertheless. Therefore.

record all about the directors. minutes of annual general meeting. 2. secretaries.K Chow Tax Services Sdn. All the documents and books are not allowed to take out from their department due to certain reason. Other than that. These would include the applications for extensions time for the submission. This includes the employee benefit scheme. takeover of companies and mergers. The scope of the tax services is wide. these firms also provide an advice related with the investments. this firm also provided an advice on tax implications on certain business transaction such as disposal of company’s assets. Bhd.3 Tax planning and consultancy services – K. Additionally. Not only that. amalgamation. this will be sent to secretarial department for the submission to Company Commission of Malaysia (CCM). When the audited accounts were ready and signed by partner. group restructuring and also reorganization. These firms usually provide a service not only to the individuals but also the corporate income tax computations and submission. annual return and any documents relating to extraordinary transaction occur during the financial year.7. installments and appeals. shareholders. These firms also provide an advice to the clients on tax implications of certain business decisions and commercial transactions. ranging from the usual tax compliance work (returns and submission) to assisting clients to identify tax planning opportunities and also structuring their business transactions to maximize tax advantages. secretarial department is a placed where I performed statutory audit. this firm also provides tax planning not only to the corporation but also to the partnership and individual. Because of that. 12 | P a g e .

this firm also faced a lot of experience that there are many business areas that have a potential for tax planning opportunities that have been neglected or not given adequate consideration especially among small and medium businesses. K K Chow is one of the members of Malaysian Institute of Accountants (MIA).Lastly. he also has an experience in assisting clients in the design of 13 | P a g e . investment holdings. He also holds a practicing certificate from Association of Chartered Certified Accountants (ACCA) and is a licensed company auditor under Section 8 of the Companies Act. K K Chow is the managing partner of the firm. advertising. investigation and accounting experience in the various industries includes construction and property development. It is part of their professional practice and as a statutory audit to alert the clients of any potential tax planning opportunities that the firm can assist in maximizing the tax benefits. Chow Kee Kan is also known as Mr. accounting. 2. In addition. cash flow and profit forecast. engineering. He also is an approved tax accountant under the Income Tax Act. trading. he also has an experience in the management consultancy work such as purchase investigation. company’s takeover and mergers. investigation. solicitor firms. Mr. shares valuation. K K Chow has an extensive audit whether external or internal. He also had been involved in a number of investment project start up and implementation involving advising on government policies and guidelines on foreign investments. Not only that. Mr. and management consulting and tax experience in the profession. hotels and others. Furthermore.1 Chow Kee Kan Mr.8 The partners / personnel 2.8. 1967. He has extensive in audit. manufacturing. 1967.

8. investment holding or dealing. He has a vast experience in company secretarial practice and administration and has been in practice for more than 20 years.2 Chow Tuck Him Mr. CHAPTER III 14 | P a g e . he became a qualified full member of Certified Public Accountants (CPA) Australia. identification of management information requirement and assisting clients in the selection of software and hardware for computerization. manufacturing. He graduated from Monash University with a Bachelor of Business and Commerce. Yap Foo Teng is a member of the Malaysian Association of Companies Secretaries. 2. Chow Tuck Him also known as Zen Chow. His career was started with a medium size corporate advisory and service firm managing clients if both private and public companies. He has been involved in the tax compliance and tax advisory works for the various industries ranging from the agriculture. He is a Chartered Accountant by profession and was recognized by the Malaysian Institute of Accountants (MIA).8. Now. He also an associate member of the Chartered Tax Institute of Malaysia that formerly had known as Malaysian Institute of Taxation.3 Yap Foo Teng Mr.accounting and costing systems. association and trade union. 2. foundation. forestation. He had a double major in Accounting & Banking and Finance. franchisor/licensor. He is presently a company secretary of a listed company.

I had also been supervised by the senior and junior auditors in the department. but I also have been given a task to do the tax working paper.2 Audit Assignment Flowchart Assignment - Assigning case Audit Staff - Compiled Working Paper Draft financial statement - Sent for typing Admin 15 | P a g e . 3. So that. Even though I have been attached in audit department.0 Department Background 3. I learnt different things from each of them and it help me to get a clear picture what audit is all about.1 Department attachment Throughout this industrial training. The department is leading by Mr. Tan Lee Lee who are the Manager and Supervisor respectively for audit department. I had been given an opportunity to go out for the external audit with them. I had been attached to the audit department which is the KK Chow & Partners. For example is calculating tax computation and reconciliation and capital allowance schedule. William and Ms.AUDIT DEPARTMENT 3. Besides that.

Audit Staff - Call over Audit Manager - First review - Answer first Review Note Question Audit Staff Audit Manager (RE 4) - Acknowledge for clearance on RE 4 - Second typing if there any mistake - Final check - Send for first review (KK) - First review Admin Audit Manager Admin Audit Partner Audit Manager - Acknowledge after go through Review Note Question (RE 3) Audit Staff Admin - Send for second review (KK) - Audit Partner Sent draft and Signing Pages 3.2.1 16 | P a g e Answer second RE 3 - Acknowledge for clearance on RE 3 Case done and will be assign new case new case Explanation of audit flowchart/ audit process .

Purpose of call over is to checking whether the draft report is based on the working papers that had been done. there is audit procedure that auditor have to follow. the auditor will explain the queries answer to the manager and if the manager was satisfied with the answer. After the draft report had been typing and the correction has been made by the administration staff. BHD where I have to do the full set of audit. interpreting and obtain information from the clients during the audit work to meet it audit objectives. the draft will send to the other auditor for call over. Lastly. The administration staff will be sending the draft. if there is audit queries that be issued by the manager the auditor should answer the audit queries. At K. The first audit cases that being given to me is NATWEST MANAGEMENT SDN.An auditor must have their own audit process whether analyzing.K Chow for review. After all of the working papers had been completed or done. the draft annual report will be send to the audit manager for review. the auditor who in charge of the cases will send a draft of the financial statement for review. supervisor will assign the cases to the auditor. During this time. signing pages and client’s documents to the clients for 17 | P a g e . the draft annual report will be send to the K. Thus the work produce will be efficient. The draft annual report will be send to the administration department for another typing. collecting.K Chow & Partners. the complete draft of annual report will be send to the supervisor for review and after that it will send to the administration department for typing. Fourthly. after complete answering all of the queries. Besides if there is any queries that issue by him the auditor need to make adjustment on it or make some improvement. For the fieldwork cases it usually is done by a team that will assign to handle the case. Thus to ensure there is no mistakes when the annual report is being draft to the client. Secondly. If the director does not satisfied with the auditor report the auditor in charge must explain to him. Firstly. This second draft will be send to the manager for final checked. Thirdly. The auditor will be responsible in preparing the audit working papers. After answer the audit queries. The teams usually consist of 3 to 4 people. Call over only can be done by the senior auditor.

SF Shareholders Funds This section is preferably been done prior to fieldwork. Trial Balance should be check against the General Ledger. there are: 1. relevant form resolution for additional allotments made during the period or year. any material significant events and subsequent events must be highlighted. Retained profit reconciliation must be done if the opening balances did not tally with the previous annual report. verify issued share capital with previous balance sheet and latest annual return. Besides.signing. AP Audit Programme This is the Pre Audit step which are the opening balances (Oβ) should be checked and agreed upon with last year audited balance. Other than that. the annual report can be issued. 4. RE Reviews For this section auditors need to do the Audit Confirmation Control Checklist RE 13 and the other will be the usage for the Administration Staff and Manager / Partners review. verify the return of allotments with minutes. 3. CA Current Assets For this part as auditors. There have two audit objectives should 18 | P a g e . 2. they usually has primary responsibility to determine whether management assertions about financial statement are justified. After all the documents had been returned by the clients. The auditors will be provide with the Audit index that they need to follow during doing audit work.

LTL Long Term Liabilities For preparing this section is not too much items. Generally. Plant & Equipment This section have three objective should be test by auditors. 5. valuation and existence. but for the ownership means that the assets must belong to the entity. obtain an analysis of 19 | P a g e . IE Investment & Expenditure carried forward Schedule of information required for this is reconciliation of opening and closing nominal and balance sheet values indicating the basis and particulars of dividends received and receivables. 6. Associated (20-49%) and Holding (50% and above). 9. IS Income Statement items This section represents an operating cost which incurred business. which are ownership.be test. PPE Property. CL Current Liabilities While for this section the auditors needs to check the completeness which is existing transactions are recorded and it deals with whether all transactions should be included in the journals have actually been included. For the valuation and existence is similar with the current assets and liabilities. There have three types of investment which are other investment (1-19%). the basically needs to do one or two items only that are for Interest paid during the year or have outstanding at year end (LTL 1) and for the provision for deferred taxation (LTL 2). for all expenses. 7. 8. For example Motor Vehicle should be under company name not directors or staff of the company. which are whether recorded transactions have actually occurred (Existence) and whether the assets have been included in the financial statements in appropriate amounts (Valuation).

resolutions. This is the first step as an intern student that should know before being exposed to other job.operating costs accounts included in the cost headings disclosed in the financial statements. I learnt how to prepare statutory audit. 20 | P a g e . 3. minutes of meeting. ⃰ Taxation For the taxation items it can be at Current Assets (Tax recoverable) or Current Liabilities (Taxation). Form 44 and any of document or event that occur during the financial year. Things that need to check is the annual general meeting. The main purpose of doing statutory audit is to make sure that the auditors familiar with the client’s nature of business and company business. Others will be filling by the tax agent. The important things that need to highlight when doing statutory audit is to check current year or any up to date document of the client.3 Job assigned and nature of work done During the first week. Form 49.

If there is anything that the auditor unsure they can ask the staff at the company secretary for further information. cost of sales and expenses items. After performing the working paper. I learn how to prepare audit working paper. background. while I am performing the working for profit and loss items I should prepare sales cut-off test. This test is to make sure that the transaction is occur or exist during the period. Bhd in which situated at the 3rd Floor of the building which is the company secretary. On the other hand. trade and other debtor. This experience will help to build confidence will working with the real environment. I need to prepare preliminary analytical review 21 | P a g e . Furthermore I also working on the profit and loss schedule such as sales. current asset including inventory. Sometimes I have to go for statutory audit which involves outside company secretary. short term funds and amount due from directors. I proceed with the audit planning program which it was prepared to identify client’s key engagement information.The documents can be found or taken from the minutes books and register member books that provided by Active Management Consultant Services Sdn. While being assign with own case. In addition. I have to prepare working paper for fixed asset. Then I should perform a close reference so it can be as evidence for the transactions. Besides the number of invoice should be in sequence so it can ensure that there is no flow of cash for personal benefits. I also being assign to assist senior auditor for field work case. When the supervisor assign to do fieldwork case it increase the communication skills and how to be independent. Besides that the company secretary not only Active Management Sdn Bhd but they have also outside company secretary. principal activity and comments on client acceptance and re-evaluation. Besides I also have to do current liabilities working paper which consist of trade and other creditor and accruals and amount due to director. any prepayments.

The preliminary analytical review illustrates the comparative figure between this year and last year based on revenue. After new draft done typing. who not finalized the cases will double check (call over) the word for the audit report to make sure the report free from error and word mistake. This copy of audited accounts also will be sent to tax department and auditing department. I only need to key in the relevant figure as the AR statement already there with the formula such as the ratio on gross profit margin. Any significant changes or unusual fluctuation should be clarified as remarks. semi senior or junior auditors. I have to amend some of the transaction or provide more supporting documents or amend tax computation as the expenses not allowed always changes like the amount of the professional fees. after preparing all the working paper and completing the assign case. current assets and current liabilities. they will highlight issues or matters that need to be taken into consideration. In audit department. creditor turnover period and current ratio. donation and penalty. this draft will be re-sent to administration staff for typing. cost of sales. Once the manager satisfied with the audit report. Then. I need to submit the complete draft to supervisor for review before send to the administration staff for typing before it will be review by the Manager and Partners. Finally. stock turnover. this working paper and audit report will be reviewed by Partners. they will submit to partner for a last review before re-printing and submit draft to the clients’ company directors after approval from the administrative executive. This auditor should answer all of the queries before the draft can be issue to client. I have to re-submit the working paper to manager for second review before partners review. Then. Usually. 22 | P a g e . Usually partners will come up with one or two queries regarding the matters that are not clear or understood. gross profit. If they do not satisfy.which it includes as a part of the audit planning program. at least one senior. filing fees.

arranged accordingly and sent for final review from partner. The signing pages were sent together with the outstanding matters. two directors of the company need to sign the audit report. reclassification journal entries and director’s remuneration forms. copies of report and financial statements including the original signing pages will be filed before binding. Adjusting Journal Entries (AJE). It does not involve the entire inventory it involves only items that have high value and quality only. we also must record the figure that we had counted and updated it and then compared it with the figure of stock before whether the stocks are high value. the copies of signing pages should be sent to respective directors to get approval for the true and fair view of the audited report and financial statements. obsolesce (not moving) or third party. the report and financial statements are ready to be sent to clients and the audit file can be closed. From this experience I learn how to record and count the inventory in a proper way.Subsequently. The number of inventory should be tally with the number of inventory that has been count by the factory supervisor. then the auditor may reduce the qualified report for the company. I have been briefing by my manager about what is stock take or other name physical inventory count. So this to ensure that there is no theft of asset by the employee. according to standard. I have an opportunity to do the stock take which is held at the THK Power Tools which is located at USJ. After complete this task. When clients sent back all the documents to the company. letter of representation. if the auditor did not satisfied with the existence of stock for the company. Once the partner agreed and satisfied with the arrangement and audit as a whole. 23 | P a g e . At least. All of these documents also should be signed and confirmed by the directors. confirmation of account balances to debtors and creditors. Besides. Other than that. This opportunity will be a good experience for me that I can be used when I work in the real working environment.

Poor System Opportunity Threats 1. Competition among competitors 2. Limited staff and space 3. The quality of services 1. Potential employment 2. Segregation of duties 1. Authorization of data 3. Economic downturn 3. Relationship among the staff 2. Expand the business 3. Unused equipment 2.4. The advance of technologies 24 | P a g e .0 SWOT ANALYSIS Strength Weaknesses 1.

25 | P a g e .K Chow & Partners they were using segregation of duties. The owner should take many consideration and steps so the company will remain competitive in the market.1 Strength a. Each department in the K.1 SWOT Analysis When trying to start up an audit firm.1.K Chow & Co has their own role in performing their work or task. For an example. Chow & Partners there is a useful SWOT analysis that they can use for future development: 4. after completing the draft report the auditor will send their draft to the administration department for typing and further steps that will be take place. For an audit firm like K. It will make the work flow for the entire department becomes more effective and efficiently.K. Segregation of duties At K. all the documents like signing pages and the client management account will be sent to the administration department and they will send all the documents by courier or email. Using a SWOT analysis will help the firm to improve to be a successful company. Thus the auditor can concentrate with the other assign case and the work can be reduced during the peak period.Table 4. Other than that.

This showed that the manager is not biased with their staff.Furthermore. senior auditor also shared their knowledge and experience 26 | P a g e . Besides that. All the documents that is related to the tax department was stored at the tax department store room. b. Besides. Manager play an important role in helping the audit staff so that they feel appreciated and also reduced their stressed while performed the work. It will make the work in the audit department will become more efficient and effective because if there is a problem regarding of tax client can be directly contact to the tax department. In addition the staff involves trainee also. sometimes the audit manager will briefing to the audit staff if there is new thing that is need to be highlight. All the problems during the audit procedures can be solved by shared with the manager. Good relationship between the manager and the audit staff The close relationship between the audit manager and the audit staff will help in improving their work. tax department also play an important role too. So this is the good chance for the trainee to gain some knowledge. So the staff would not make any mistakes.

In the audit department. only audit staff can access all the data. Furthermore the auditor must be responsible for anything happen to the missing of data. If there is any issue among the staff the audit manager will find a solution to the problems. Only an audit staff can be access all the client data. All the data was kept in the systems so that easy for an auditor to do their audit procedure.with the junior auditor and trainee on how to handle uncertain situation that might arise during audit procedures. Furthermore. the audit manager also concern on how the staff performance. Besides. Authorization in access the data For an audit firm. All the data regarding the audit were based on the financial year. all the data that related with the client are very important and cannot be disclose to the third party. Each computer and laptops in the audit department was protected by passwords. So the auditor does not have to worry if there is missing data in their computers. the company also has a good data backup. c. 27 | P a g e . Although trainee is not a permanent staff but still can access all the data in order can do the audit procedures.

This is because the unused equipment can be used in the future. Besides that.5. 28 | P a g e . sometimes the trainee has to take turn using the computers because it is being use by other auditors. For an example. All of the equipment should be handling properly. Unused equipment and resources In the K.K Chow & Partners. there are some of the tables and computers was stored at the store room although all the equipment still functioning.2 Weaknesses a. there is unused equipment although all the equipment still can be functioning. It will take long time to complete the work.1.

c. Thus it will use a lot of space.Furthermore.K Chow & Partners also has a limited staff and space of works. So the other auditor also will be feeling uncomfortable to do their work. b. the company has a limit space and difficult to the auditor to perform a quality of audit works.. 29 | P a g e Poor system . Furthermore. This situation may affect the auditor itself. they need to use a very large space because sometimes the document inside the box. even though auditor have their own place to put their work sometimes the space is not enough because they have to do many cases at one time. if the auditor received an indoor cases. The level of stress that been facing by the auditor will affect the emotion of the auditor and they tend to be confused on what case that they had been done. Limited staff and working space K. As an auditor it is wasting time if they have to come in and out from the store room to find the client documents. For an example. This will affect the quality of worked produce. although audit department has a limited space but if the furniture is being arrange properly the working place will be better. Besides there is a possibility their belongings is being use by the other staff. In addition. For example the auditor has to do so many cases although they still handle another case. In the audit department. one table was shared by 4 peoples and sometimes some of the documents were wrongly taken by other staff.

the advance of technologies will be the key factor for business success. 5. sometimes the server is down so the auditor has to restart the server in order for it to function again.1. Sometimes.K Chow & Partners. The auditor will have a problem if the server is not function well. This is because a client that received a good service will advertise that audit firm to their friends. For example. It also will make the audit process more efficient. This is because during the peak 30 | P a g e . by adding the value of services also will help in increasing the confident level of the client. Additionally.3 Opportunities a. Furthermore. the server in the audit department is down this will affect the audit work of auditors.K Chow & Partners were based on server. The quality of services The quality of services can be improve by add the value of services. By improving the services can help increasing the amount of clients and also will help in generating the income to the audit firm.All the systems that are used in the K. By using the latest technologies it will help in improving the quality of work at K.

this auditing work only can be done by auditors and any company should hire an audit firm so that can perform all the audit work.period. in the audit department. b.K Chow & Partners have many clients to handle which come from different industries. For an example. Besides that. the company also needs to hire other firm that expert on the other field. This can take a longer time to complete and anyone can make adjustment to the working paper. K. There are several professional bodies that support and help to improve the audit firm industries. Additionally. Thus it will make the performance of the company to operate smoothly c.K Chow & Partners need to use software so that the audit work that has been produce is a good quality. Even the government also encourages young citizens to choose it as a career. Potential employment Due to the high demand in this professional industries will make it as a job opportunity. it is impossible for the auditor to prepare all the working paper manually. 31 | P a g e Expand of the business . Each day the number of register Company slightly increases in the industry they need this specialty so it will help them to increase the level of income. In addition K. they still using manual method in preparing the working papers.

K Chow & Partners has a strong brand name in the industries. since K. Additionally.K 32 | P a g e .K Chow is a very well known in the industries especially in the taxation field. They also offered the same services.K Chow & Partners is Al-Jeffrey & Partners. Some of the clients also prefer to receive the services from a well. He should consider in expanding his business.K. 5.known audit firm because they believe that although they have to pay high audit fee they will receive a good quality of services. So the audit firm has a strong brand name that could attract the new client whether individual or a company.K Chow & Partners.1. They also offered the same services that may affect K. The close competitor for the K.4 Threats a. If K. Competition among industries In Malaysia there is a lot of audit firm in the market. This is because they also held a talk to their clients and other users also.

toll and transportation claim. Economic downturn may arrive from the economic inflation or natural disaster. The economic inflation not only affect to the audit firm but also to the business of the clients. petrol. by having an economic downturn the audit firm will incur more expenses. 33 | P a g e The advance of new technologies . If the clients operate a small business by having an economic inflation it may affect to their business. There are pros and cons by having a competition. the client will be choosing the other audit firm. Every firm should take an initiative to improve their quality of services so that the client would feel satisfied with the work and appoint them as their auditor. Furthermore. Client becomes an important role to the business. c.Chow & Partner do not provide a good quality of services. This is because the source of income for the audit firm is from the service provided to the clients. b. Economic pressure Economic downturn may affect the professional industries. The expenses that derived from the claims by the auditors include the mileages. For an audit firm if the case that usually performed on field work it will incur high cost. Clients can’t generate their own profitability so that they cannot afford to pay for the service..

This facility will affect the audit firm that offered a tax services. This is because the internet facilities were using widely that makes every day work becomes more effective and environmental friendly usage. There 34 | P a g e . This form will be sent directly to the Inland Revenue Board (IRB) and will be processed quickly. the development of new technologies was very fast. There is a lot of accounting software in the market that easy to use. The weakness might be subjective but it could affect the company performance in the future.Nowadays. They only need to hire an expertise person or send their employee for training to get knowledge about the software. CHAPTER IV 5. This is because it’s much easier than fill in manually. This is because the form like CP204 and Form C can be filling by using the internet.K Chow & Partners that they need to improvise so that the company can stay competitive in the market.0 RECOMMENDATIONS & SUGGESTIONS Based on my observation. there is a weakness at K. This development may affect the audit firm. For example software like UBS accounting software and also the Mind Your Own Business (MYOB) software that is easy to get in the market. In additionally. the usage of online form is being using widely.

They should hire more qualified and experience staff so that it could reduce the level of stress and workload that being face by the auditor.K Chow & Partners sometimes having a problems so it have to be restart so it can function normally. K. By recruiting new staff it will increase the performance of the auditor where there can focus to their works. All of the unused equipment will be place at the store room. Although the cost will be high and need training but it will help in making the work more effective and also more efficient.K Chow & Partners.K Chow & Partners is limited. chairs and computers. Fourthly.K Chow should consider using a system for auditing. The work will become effective and efficient. On the other hand. if there is a proper arrangement in the file room the client files can be easily to find. This thing happen because all the systems including the photocopier machine was linked 35 | P a g e .K Chow & Partners still use manual working paper. Secondly there is a lot of unused equipment in K. All of the equipment still functioning and can be used. the high quality of work can be produced. the number of staff in K. By having an efficient work flow. Although all of the space is being occupies but with a proper arrangement it can be used.K Chow & Partners. the current server that is being use at K. Firstly. For example table. K. Trainee has to share the table so it will discomfort the trainee while doing their work. Some of the equipment in the office needs an upgrade so the staff will be happy to go to work.is several solution or suggestion that might be useful to be used by K. Thirdly. Because nowadays many company is using paperless system which it will be more effective. This will need a longer time to be complete and the work produce is not efficient.

K Chow and his clients. Next is to strengthen the business K.K Chow should upgrade advertising method. Through this training also I have learned many things as this is the first time I having my internship.K Chow should consider to change to other equipment although it costly. 36 | P a g e .together with the server. With grow of Internet client mostly using search engine to know about the company very well before they appoint them as an auditor. Instead of using brochure and pamphlets they can use website so their potential client can see clearly how the company providing services. On the other hand. This is because some of the client has a mutual relationship with K.K Chow & Partners. Firstly it increases my confidence level to communicate with not only the staff but with other people too. According to the act the client should not have any relationship with the auditor. Lastly. I also manage on how to deal with the clients that have different character and finding the solution to the problems.0 CONCLUSION It was a great opportunity and experience having an internship program at K. Besides working with different people that come from different background gives me different experience and knowledge that I will apply for my future career. I can find there is a conflict of interest between K. This will make the work produce become slower because they have to wait until the photocopier is being function.K Chow itself. K. 6. This will lead to a breach of act as an auditor.

Prentice Hall. Arens. http://www. This is the opportunity for me to learn and grab the knowledge as many as I can that further can be used in the real working environment. 2014. Industrial Training. 2009.com/Market-an-Accounting-Firm 37 | P a g e . In order to give a good reputation of my university I had to find a solution for every conflict that arise within my internship period.Secondly I also manage to discipline myself by following the rules and regulation that had been set by the firm. Without them I cannot complete this internship successfully. Furthermore I had a chance to do full audit like other auditor. Randal. Maju Press 3. A. Kuala Lumpur. the work not only focus in one area only but it involves other area. When the students is being expose to other things the knowledge will be expand then it could give a benefits to the students. Alvin and J. UNIKL. Auditing and Assurance Services in Malaysia. With the help from the senior auditor the task can be complete within the time frame. Elder. It starts from filing the document to the full set of audit. 2. Next is while doing internship. BIBLIOGRAPHY: 1. Lastly I am thankful for the opportunity that has been given to me to do internship with this company and to my supervisor that help me during the internship period. Malaysia.wikihow. So the students will learn how the audit process is being done. https://sites.google.com/site/kevinsommerscareerportfolio1/personal-swotanalysis 4.

html 38 | P a g e .bizbilla. http://auditors.5.com/fetauditingfirms1-in_KUALALUMPUR_Malaysia_9307.

APPENDICES APPENDIX A 39 | P a g e .

40 | P a g e .

Figure 1: Preparing working paper Figure 2: Company secretary documents APPENDIX B 41 | P a g e .

Figure 3: Previous audit file (FILE 1) Figure 4: Tax File APPENDIX C 42 | P a g e .

Figure 5: View Audit Department Figure 6: Doing “STOCKTAKE” APPENDIX D 43 | P a g e .

Figure 6: At Client Office Figure 7: Preparing statutory audit at client place 44 | P a g e .

APPENDIX E  Time Cost Budget  One set of statutory audit form  Audit queries 45 | P a g e .