Relevance of Auditing Courses as Manifested in the Accounting Internship

A Research presented to the faculty of the

School of Accountancy, Business and Hospitality
University of Saint Louis Tuguegarao

In Partial Fulfillment
of the requirements for the Degree
BACHELOR OF SCIENCE IN ACCOUNTANCY

MARIANO, MARVIN S.
RAMIREZ, JACOB B.
MATEO, WYNONA AFHEL D.
MORA, RITCHELLE N.
NARAG, MARY GRACE T.

December 2019

Relevance of Auditing Courses as Manifested in the Accounting Internship | 1

 TABLE OF CONTENTS

ABSTRACT 3

INTRODUCTION 3
Research Objective 4
Significance of the Study 5
Conceptual Framework 5
Literature Review 5
Auditing Course
Accounting Internship
Relevant Knowledge and Skills for Present Day Auditors
Research Paradigm 8

METHODS 8
Research Design 8
Locale of the Study 8
Respondents of the Study 8
Data Gathering Instrument 8
Data Gathering Procedures 9
Data Analysis 9

RESULTS 9
Table 1: Profile of the Respondents 9
Table 2: Knowledge and Skills (KS) Learned in Auditing Courses
And Relevant in the Accounting Internship 9
Table 3: Non-technical KS Learned in Auditing Courses
And Relevant in the Accounting Internship 11
Table 4: Technical KS Learned in Auditing Courses
And Relevant in the Accounting Internship 11
Table 5: Non-technical KS Relevant in the Different Area of Assignment 12
Table 6: Technical KS Relevant in the Different Area of Assignment13

DISCUSSION 15

CONCLUSION 16

RECOMMENDATIONS 16

REFERENCES 16

APPENDICES
Research Instrument 18
Letter to Conduct the Study 20

Relevance of Auditing Courses as Manifested in the Accounting Internship | 2

Abstract

The University of St. Louis-Tuguegarao has long been implementing internship

in the Accountancy program particularly sending student interns in auditing firms, this
program has continually grown and has evolved in the past years but the knowledge
and skills acquired in Auditing courses and the relevance of these as manifested in the
accounting internship was not being constantly studied. Accounting educators were
pressured by the industries and profession to generate graduates with knowledge and
skills that meet the changing needs of the working environment. Therefore, this study
aimed to report the findings of thorough study to determine the knowledge and skills
acquired in auditing courses and if these were relevant in the accounting internship, and
the gap in between. A total of 18 respondents who undergone internship in auditing
firms were involved in this study. It was found out that the exposure to the latest
technology and social skills were the main gaps in this study. These knowledge and
skills were not fully learned or developed in the auditing courses but were found to be
relevant in the accounting internship. The rest of the knowledge and skills were
considerably learned in auditing courses and were relevant though in different ranks
during actual work in the accounting internship. Thus, this study would help education
institutions in preparing well-structured auditing programs that would be able to meet
the evolving needs of the auditing firms.

Keywords: knowledge and skills, auditing courses, accounting education, accounting

internship, working environment, relevance

INTRODUCTION

Accounting programs had faced the challenge of preparing the design of

curriculum and course content that should meet the evolving needs of the auditing
profession. This issue appeared convincing in light of assertions that, despite decades
of dialogue, a gap has emerged between accounting education and accounting practice
(Domrowski, 2013). Accounting program providers were challenge for making
graduates in parallel with the expectations of industry and professional accreditation
bodies. However, these expectations were departing from competency focus. In a
competitive working environment, employers were looking for graduates that do not
only have technical skills but as well as soft skills such as the ability to potently
communicate and interact with client needs. Therefore, to best prepare students for the
workforce, accounting internship programs were required for undergraduates to expose
them with the actual work (Heliar, 2009).

Internship was a period of work experience offered by organizations to provide

students exposure of the working environment within a specific industry that was related
with their field of study. During this period, students demonstrated the ability to apply or
used the knowledge and skills they have acquired. It was believed that what was
learned in the curriculum were being put into practice while having the internship
program (Albu,2016).

The program of tertiary institution, colleges, or universities was designed to

produce graduates who will fill into the labor market as accounting lecturers,
accountants, auditors, financial controllers, tax consultants and related services. What
the students learned in the curriculum was the solid bedrock of how they will deal with
the working environment. All the knowledge and skills of auditors needed in the real

Relevance of Auditing Courses as Manifested in the Accounting Internship | 3

practice were believed to be taught profoundly in the curriculum (Yu, 2013). However,
the auditing profession and practice were continually evolving, that is why there was a
need to frequently evaluate the knowledge and skills needed by the auditing profession
and the design of the course content of the universities. It was where internship
programs were necessary to give students firsthand skill development and knowledge
which they cannot get within the confines of the classroom. The classroom environment
alone can and will never be able to provide students with the complexities and problem
analysis involved in the real world. Over the years, auditing had challenged and
transformed the present-day role of auditors, making it timely and important to re-
examine the skills and knowledge required for auditors in today’s time (Siriwardane,
2014). Thus, the objective of the internship was to ensure that accounting students
were exposed to the real world of work and in the process providing feedback to
institutions on the relevance of their learning in connection with their actual work during
the internship (Warinda, 2013).

Most of the professional accountants constantly argued that the auditing course
syllabus was outdated, and this made it challenging for the Accounting program to
produce graduates with the necessary knowledge and skills needed by the profession.
Again, this was evidenced in today’s advertisements for jobs where graduates who
were fresh from tertiary institutions were required to have technical skills particularly in
computer knowledge as well as soft skills. Following the fact that the fresh graduates do
not find it easy into the labor market, it means that there was a gap between theory and
practice (Ayebaofo, 2012). Accounting programs had not kept pace with the changes in
technology and practical accounting. They further reiterated that accounting educators
have failed to restructure their syllabus to reflect changes in the job market for
accountants and auditors (Jansen, 2018).

Given the background presented that auditing courses of educational institutions

should be in line with the ones needed in the industry, this study aimed to determine the
knowledge and skills acquired in auditing courses and the corresponding necessary
knowledge and skills that were relevant during accounting internship while working in
an auditing firm. Moreover, it also aimed to identify the gaps that were continually
emerging between accounting education and accounting practice. This paper was
about the knowledge and skills that the Accounting programs should emphasized to
produce skilled accountants and auditors who should be ready for the actual work.

Research Objectives

The study aimed to determine the relevance of Auditing Courses in the actual work
during Accounting Internship.

Specifically, it sought to achieve the following objectives:

1. To ascertain the relevance of Auditing Courses in the Accounting Internship;

2. To identify the gaps between the knowledge and skills learned in Auditing
Courses and the knowledge and skills needed in the actual work during the
Accounting Internship.

Significance of the Study

The results obtained from this study would be of great importance to the
accounting students for they will be guided with information with regards to their

Relevance of Auditing Courses as Manifested in the Accounting Internship | 4

knowledge and skills acquired during the Auditing Courses and how these skills and
knowledge were relevant during their internship. It was also beneficial to the
Accountancy program faculty for they had a responsibility to teach and to build the skills
and implement curriculum requirements that support a learning environment where
auditing subjects were supported by alignment of action and programs with the ones
needed in the auditing profession. Moreover, the researchers will be able to bridge the
gap between the acquired knowledge and skills in the auditing course and the relevant
knowledge and skills needed in the actual working environment during their internship.
Finally, this research work will be served as a guide and reference to other researchers
conducting similar research work on the same or related topic.

Conceptual Framework

A study conducted by Bonnie Dean: Internship Program Stakeholder Model

IPSM emphasized in supporting the needs of its three stakeholders; the

students, the university and the industry. Tertiary education, students, and
organizational stakeholders were dynamically allied by the connection to learning and
graduate outcomes. It was the combination of these three, through the design and
structure of course content manifested through their knowledge and skills acquired in
their accounting program and the opportunity to apply these knowledge and skills
through internship that better prepare accounting students for their future careers.
Therefore, to best prepare students for the workforce, universities found it important to
collaborate with auditing firms in order for their aspiring accountants and auditors to
learn and develop the necessary knowledge and skills needed in that particular
profession (Dean, 2010).

Literature Review

Auditing Courses

Our society has expected higher education institutions to shoulder the

responsibility for developing the skills of the future auditors which was important for the
auditing profession. Evidence from current course syllabus manifested that auditing
education was being ascertain to be more slowly and less comprehensively than the
demands of both auditing firms and recent events affecting the profession (Peytcheva,
2013). University courses need to be made substantial and well-founded to enable the
accounting students as potential auditors to gain the necessary knowledge and skills
(Popova, 2012).

Auditing firms could administer training programs to develop the capabilities of

auditors in areas where there were significant gaps between their performances and
where accounting students can take steps to acquire and improve their SKAs (Skills,
Knowledge and Attitudes) that they had not learned in school. When both Accounting
programs and organizational host make efforts to improve teaching and learning related
to auditors’ SKAs, students would be prepared on what they have to expect in the
actual work (O’leary, 2012). The ability of higher education institutions to deliver what
the profession expects depends on the academic understanding of the students. This
assumption depends on the curriculum, course content and instructional methods being
used by the institutions where the students were in (Barac, 2016).

Relevance of Auditing Courses as Manifested in the Accounting Internship | 5

 The most important skills, attitudes, and knowledge that were taught and
developed during the formal education of students in auditing courses were problem
solving skills, substantive testing of asset, liabilities and equity, substantive testing of
income and expenses, substantive test of transactions and balances, and reports on
audited financial statement (Siriwardane, 2014). The knowledge based of auditors that
should be taught in universities must be quite wide. The essential skills for an
accounting student to possess were skepticism and professional integrity (Pflugrath,
2010).

Accounting Internships

It was true that university education developed the necessary knowledge and
skills of the students that were necessary to prepare a future auditor in his professional
career (Gerken, 2010). However, within audit education, learning through experience
and reflecting on acquired knowledge may result in a deeper learning experience,
where the relevance of the auditing course becomes evident and it created an interest
for the accounting students to learn more through gaining knowledge and applying it to
actual practice. For students in an attempt to improve their understanding by using
concrete knowledge and by attempting to situate learning within the world real view,
internship was training prevalent in today’s education (Zakaria, 2013).

The collaborative responsibility for student education was demonstrated with

the delivery of many responsibilities shared by the industry and academicians. This
collaborative approach with auditing firms was an important instrument in molding the
professionals of the auditing world. Beyond the walls of formal education, students must
engage in the real labor industry as active learners, they have to determine what is to
be learned, how it is to be learned and how to judge whether they have learned it or not.
Therefore, to best prepare students for the workforce, universities found it really
important to collaborate with auditing firms in order for their aspiring accountants and
auditors to learn and develop the necessary knowledge and skills needed in a particular
profession (Dean, 2010).

The development of partnerships with different business environment and the

involvement in making opportunities to facilitate the students’ integration into the
workplace was one of the responses of the schools to bridge the gap between learning
the courses and its actual application. Furthermore, it strived to increase the relevance
of education in order to give graduates with the appropriate competencies in the actual
workplace, to provide opportunities for the development of these competencies, and to
strengthen the relationships between the business environment, education and
research (Albu, 2016).

There were significant benefits for students in understanding the role of

accounting within an organization and its integration into professional network when it
comes to internships. The internship program was also an important factor for students’
overall educational development (Barnwell, 2016). Internship was the main factor that
contributes positively towards enhancing and developing more the knowledge base and
the level of motivation of students in his future career. This experience could be
meaningful and useful in developing student professionally before entering into the real
labor world (Bukaliya, 2012). On the other hand, there’s a little evidence that all
academic competency was being put into practice during internship (Gerken, 2010).

Relevance of Auditing Courses as Manifested in the Accounting Internship | 6

 However, it was suggestive of a failure to exploit the full learning possibility of
internship with respect to those attributes that are commonly valued and taught by
academics. It also argued that the skills and competencies that effectuate in universities
were very useful during the accounting internship (Martin, 2009).

Relevant Knowledge and Skills for Present Day Auditors

Given that new millennium had raised doubts about the trustworthiness and
competency of auditors, resulted in increased demands on auditors’ responsibility and
accountability, and led to more auditing standards and regulations. Instead of relying to
the general knowledge and skills used in prior auditing competencies, these were the
specific knowledge and skills that should be taken into consideration: Assessment of
Inherent, Control, and Detection Risk, Evalauating Internal Control, Reporting on
Audited Financial Statements and Verifying Account Balance and Financial Assesrtions
(Siriwardane, 2014).

Auditing courses should not only focus on technical aspects within the financial
concerns because auditors nowadays should also have superior nontechnical
knowledge such as better client interaction, communication skills, and presentation
skills (Hassink, 2010). However, Firms rely more on technical matters particularly with
the use of technology in processing accounting information. The modern accounting
software had helped in the easy preparation of financial reports. However, Accounting
education had not kept pace with the changes in technology and most of the institutions
curricula had reflected the changes in the real working environment. These issues
continue to create a gap between accounting theory and practice (Armitage, 2010).
Since most companies were using computerized accounting systems to manage their
accounts, it was found to be significant that accounting education program should
incorporate computerized accounting training constantly so that students may practice
from time to time the skills with regard to latest technology (Ayeboafo, 2012).

The manner in which audits were performed and the nature of education and
training that was appropriate for individuals entering the profession in large body of
research related to auditor judgment had raised numerous issues. Auditing issues
worsen the demands placed on auditors and made it increasingly more critical that
issues of auditor judgment and professional integrity be integrated into audit education.
It has shown the need for accounting students to be exposed to a breadth of auditing
standards that was more pronounced in today’s time (Barac, 2016). Auditors do not
merely dwell in a world of technical matters such debits and credits, financial
calculation, and balancing figures, but rather must deal with the more challenging
issues. As early as possible, undergraduates need to develop their self-confidence,
interpersonal interaction, communication, and decision making to cope up with these
challenges. Auditing courses may be best suited to facilitate the development of
necessary analytical skills by embracing current trends in audit practice and exposing
accounting students to complex, realistic, and interactive learning exercises during their
internship which reflect the challenges of the dynamic environment of today’s auditing
world (Utami, 2011).

Relevance of Auditing Courses as Manifested in the Accounting Internship | 7

Research Paradigm

Figure1: Paradigm of the Study

The above paradigm used a Venn diagram to identify the knowledge and skills
that were acquired and that were relevant in the actual work during accounting
internship. This aspect was illustrated with the circles that have overlapped. Moreover, it
would also show the gaps in between the knowledge and skills acquired that were not
relevant in the internship and the knowledge and skills that were not acquired but were
relevant in the accounting internship. These gaps were manifested on the part of both
circles that did not overlap with each other.

METHODS

Research Design

The researchers employed the quantitative method in gathering and analyzing

data from the respondents.

Locale of the Study

The study was conducted in University of Saint Louis, Tuguegarao.

Respondents of the Study

The respondents of the study were the 5th year Accountancy Students of
University of St. Louis Tuguegarao City, Cagayan, who undergone or completed
internship in auditing firms in the academic year 2019- 2020. Because of the minimal
number or students who undergone internship in auditing firms, total enumeration was
used.

Data Gathering Instrument

For the gathering of data, the researchers used questionnaires. The content of
the questionnaires regarding the skills were based on the related review literatures and
course learning outcomes of the auditing courses. Part I of the survey questionnaire will

Relevance of Auditing Courses as Manifested in the Accounting Internship | 8

be the profile of the respondents together with the area they were assigned in the
auditing firms. Part II of it was the list of the different knowledge and skills provided by
the researchers based on the review literatures and the course learning outcome of the
auditing courses offered by the school. The respondents would put a mark on the two
separate appropriate columns if they had acquired the listed knowledge and skills and if
these were relevant during their internship. An additional question will be asked from
them about their recommendations regarding the improvement of the internship
program and the course/ curriculum if there was any.

Data Gathering Procedures

The first step in this research was to send a letter to the Dean of School of
Accountancy Business and Hospitality for the approval in conducting the data
gathering. Upon approval, the researchers began administering the questionnaires. The
researchers floated the questionnaires and clarified therein that all data and results
would remain in utmost confidentiality. The researchers used the time allotted for vacant
to avoid distraction of class hours. The students’ responses were given enough time to
answer the questionnaire.

Data Analysis

The profile of the respondents and the data regarding the acquired knowledge
and skills were determined by means of frequency, percentage and rank.

RESULTS

Table 1 Profile of Respondents

Variable Frequency Percent
Sex
Male 10 55.6
Female 8 44.4
Area of Assignment
Auditing 14 77.8
Accounting 9 50.0
Taxation 8 44.4
Management Advisory 7 38.9
Others 5 27.8

Table 1 shows the profile of the respondents. More than half of the student interns were
males and assigned in the Auditing Department.

Table 2 Knowledge and Skills Learned in the Auditing Courses and Relevant in
the Accounting Internship
Learned in School Relevant in Internship
Knowledge and skills
Frequency Rank Frequency Rank
Interpersonal Skills 8 24 17 3
Critical Thinking Skills 17 2.5 17 3
Communication Skills (oral
and written) 11 18 16 5.5

Relevance of Auditing Courses as Manifested in the Accounting Internship | 9

 Problem Solving Skills 18 1 17 3
Presentation Skills 5 25 13 12
Professional Integrity 17 2.5 18 1
Self-confidence and Self-
esteem 10 20.5 16 5.5
Knowledge in Internal
Auditing 9 22.5 10 22.5
Knowledge in External
Auditing 15 4.5 13 12
Preparation of Audit Plan 11 18 9 25.5
Assessing Audit Evidence 12 15 12 16.5
Understanding Client’s
Business 13 11.5 15 7.5
Knowledge in Double Entry
Accounting 14 7.5 13 12
Knowledge on Auditing
Standards 14 7.5 13 12
Knowledge in Risk
Assessment 12 15 12 16.5
Knowledge of the Different
Types of Assurance 13 11.5 11 19.5
Substantive Testing: Income
and Expenses 14 7.5 12 16.5
Substantive Testing: Asset,
Liability, and Equity 13 11.5 14 9
Assessment of Inherent,
Control, and Detection Risk 12 15 9 25.5
Review and Test Inherent
Controls 9 22.5 10 22.5
Reporting on Audited
Financial Statements 13 11.5 12 16.5
Evaluating Internal Control 11 18 11 19.5
Verifying Account Balance
and Financial Assertions 15 4.5 13 12
Interpretation and evaluation
of Financial Statements 14 7.5 10 22.5
Exposure to latest technology
adopted in the workplace
(e.g. Information system/
Auditing in CIS environment) 10 20.5 15 7.5
Project Management Skills 4 26 10 22.5

Table 2 illustrates the different knowledge and skills learned in the Auditing Courses and
the different knowledge and skills needed in the Accounting Internship. This table
consists of both the different non-technical and technical knowledge and skills learned.
It further shows the rank of those knowledge and skills as applied during the Accounting
Internship of the student interns. Majority of the respondents said that these were
developed in the auditing course: Problem Solving Skills, Critical Thinking Skills,

Relevance of Auditing Courses as Manifested in the Accounting Internship | 10

Professional Integrity, Knowledge in External Auditing, Knowledge in Double Entry
Accounting, Knowledge in Auditing Standards, Substantive Testing of Income and
Expenses, Verifying Account Balance and Financial Assertions, Interpretation and
Evaluation of FS. On the other hand, most of the respondents said that these were
relevant in the accounting internship: Interpersonal Skills, Critical Thinking Skills,
Communication Skills, Problem Solving Skills, Professional Integrity, Self-confidence
and Self-esteem, Understanding Client’s Business, Exposure to Latest Technology.

Table 3 Non-technical Knowledge and Skills Learned in the Auditing Courses and
Relevant in the Accounting Internship
Non-Technical
Relevant in
Knowledge and skills Learned in School Internship
Frequency Rank Frequency Rank
Interpersonal Skills 8 6 17 3
Critical Thinking Skills 17 2.5 17 3

Communication Skills (oral and written)

11 4 16 5.5
Problem Solving Skills 18 1 17 3
Presentation Skills 5 7 13 7
Professional Integrity 17 2.5 18 1
Self-confidence and Self-esteem 10 5 16 5.5

Table 3 presents the non-technical skills developed in Auditing Courses and those
relevant in the accounting internship. The top three non-technical knowledge and skills
learned in the Auditing Courses were problem-solving skills, professional integrity skills
and critical thinking skills. The same skills were identified by the majority of the student
interns as relevant in their internship program. However, the interpersonal skills,
communication skills, self-confidence and self-esteem which were identified as relevant
by the student interns were not so much leaned in the Auditing Courses.

Table 4 Technical Knowledge and Skills Learned in the Auditing Courses and
Relevant in the Accounting Internship
Technical
Relevant in
Knowledge and skills Learned in School Internship
Frequency Rank Frequency Rank
Knowledge in Internal Auditing 9 17.5 10 15.5
Knowledge in External Auditing 15 1.5 13 5.5
Preparation of Audit Plan 11 14.5 9 18.5
Assessing Audit Evidence 12 12 12 9.5
Understanding Client’s Business 13 8.5 15 1.5
Knowledge in Double Entry Accounting
14 4.5 13 5.5
Knowledge on Auditing Standards 14 4.5 13 5.5
Knowledge in Risk Assessment 12 12 12 9.5

Relevance of Auditing Courses as Manifested in the Accounting Internship | 11

 Knowledge of the Different Types of
Assurance 13 8.5 11 12.5
Substantive Testing: Income and
Expenses 14 4.5 12 9.5
Substantive Testing: Asset, Liability, and
Equity 13 8.5 14 3
Assessment of Inherent, Control, and
Detection Risk 12 12 9 18.5
Review and Test Inherent Controls 9 17.5 10 15.5
Reporting on Audited Financial
Statements 13 8.5 12 9.5
Evaluating Internal Control 11 14.5 11 12.5
Verifying Account Balance and Financial
Assertions 15 1.5 13 5.5
Interpretation and evaluation of
Financial Statements 14 4.5 10 15.5

Exposure to latest technology adopted

in the workplace (e.g. Information
system/ Auditing in CIS environment)
10 16 15 1.5
Project Management Skills 4 19 10 15.5

Table 4 shows the different knowledge and skills learned in Auditing Courses and those
that were relevant in the Accounting internship. The majority of the respondents said
that these knowledge and skills emerged as learned in auditing courses: Knowledge in
External Auditing, Knowledge in Double Entry Accounting, Knowledge on Auditing
Standards, Substantive Testing: Income and Expenses, Verifying Account Balance and
Financial Assertions, and Interpretation and evaluation of Financial Statements as
shown on the rankings. However, the aforementioned Substantive Testing of Income
and Expenses and Interpretation and Evaluation of FS failed to be relevant in the
internship. Moreover, Understanding Client’s Business, Substantive Testing of Asset,
Liability and Equity, and most importantly the Exposure to Latest Technology have
found to be not learned in the Auditing Courses but were relevant during the Accounting
Internship.

Table 5 Non-technical Knowledge and Skills Relevant in the Different Area of

Assignment
Non-technical Auditing Accounting Taxation Management Business
Knowledge and (n= 14) (n=9) (n=8) Advisory Process
Skills (n=7) Solutions
(n=5)
F % F % F % F % F %
Interpersonal 14 100 9 100 8 100 6 86 5 100
Skills
Critical Thinking 13 93 9 100 8 100 7 100 5 100
Skills

Relevance of Auditing Courses as Manifested in the Accounting Internship | 12

Communication 13 93 8 89 7 88 5 71 4 80
Skills (oral and
written)
Problem Solving 13 93 9 100 8 100 7 100 5 100
Skills
Presentation 11 79 7 78 7 88 6 86 5 100
Skills
Professional 14 100 9 100 8 100 7 100 5 100
Integrity
13 93 8 89 7 88 6 86 5 100
Self-confidence
and Self-esteem

Table 5 discloses the knowledge and skills relevant in the different areas which the
student interns were assigned in the Auditing firms. In Auditing Department,
interpersonal skills and professional integrity were the highest in percentage according
to their relevance in the accounting internship. However, presentation skills by the
student interns were not so high in percentage than with the other skills. In the area of
Accounting, most of the knowledge and skills were relevant except for presentation
skills. In the area of Taxation, all were considered relevant. In Management Advisory
and in Business Process Solutions all but communication skills were considered
relevant.

Table 6 Technical Knowledge and Skills Relevant in the Different Area of

Assignment
Technical Knowledge Auditin Accountin Taxatio Managemen Business
and Skills g g n t Advisory Process
(n= 14) (n=9) (n=8) (n=7) Solutions
(n=5)
F % F % F F % F %
Knowledge in Internal
9 64 4 44 5 63 4 57 3 60
Auditing
Knowledge in External
12 86 6 67 7 88 5 71 4 80
Auditing
Preparation Of Audit
9 64 4 44 6 75 4 57 3 60
Plan
Assessing Audit
12 86 5 56 7 88 5 71 4 80
Evidence
Understanding Client’s
13 93 7 78 7 88 6 86 5 100
Business
Knowledge in Double
10 71 7 78 7 88 6 86 4 80
Entry Accounting
Knowledge on Auditing
13 93 6 67 8 100 5 71 4 80
Standards
Knowledge in Risk
11 79 5 56 7 88 6 86 4 80
Assessment
Knowledge of the
Different Types of 10 71 5 56 6 75 6 86 4 80
Assurance

Relevance of Auditing Courses as Manifested in the Accounting Internship | 13

Substantive Testing:
11 79 5 56 7 88 5 71 5 100
Income and Expenses
Substantive Testing:
Asset, Liability, and 12 86 6 67 7 88 6 86 5 100
Equity
Assessment of
Inherent, Control, and 9 64 5 56 7 88 5 71 4 80
Detection Risk
Review and Test
9 64 6 67 7 88 6 86 4 80
Inherent Controls
Reporting on Audited
10 71 7 78 7 88 6 86 4 80
Financial Statements
Evaluating Internal
9 64 6 67 7 88 7 100 4 80
Control
Verifying Account
Balance and Financial 10 71 7 78 7 88 6 86 5 100
Assertions
Interpretation and
evaluation of Financial 9 64 6 67 7 88 6 86 4 80
Statements
Exposure to latest
technology adopted in
the workplace (e.g.
13 93 7 78 8 100 7 100 5 100
Information system/
Auditing in CIS
environment)
Project Management
7 50 5 56 5 63 6 86 4 80
Skills

Table 6 presents the relevance of the technical knowledge and skills with respect to the
different area of assignment during the accounting internship. In the area of Auditing,
the most relevant were understanding client’s business, knowledge in auditing
standards and exposure to latest technology with the highest percentage. While in the
area of Accounting, the most relevant knowledge and skills were verifying account
balances and financial assertions, exposure to latest technology, understanding client’s
business, and knowledge in the double entry accounting. On the other hand, the area of
Taxation shows that knowledge of auditing standards and the exposure to latest
technology was the most relevant in that work area. In the area of Management
Advisory where the interns are assigned, knowledge of evaluating internal control and
exposure to the latest technology were the most relevant in that designated area.
Lastly, in the business process solutions area, it shows that the most relevant
knowledge and skills were understanding client’s business, substantive testing of
income and expenses, substantive testing of asset liability and equity, verifying account
balance and financial assertions and exposure to the latest technology. It was seen that
wherever area assigned, the exposure to the latest technology was found to be the
knowledge with the highest percentage in all the areas.

DISCUSSION

Relevance of Auditing Courses as Manifested in the Accounting Internship | 14

 Given the results regarding the non-technical knowledge and skills, a gap had
been pointed out on interpersonal skills, communication skills, presentation skills, and
self-confidence and self-esteem. This suggested a pattern that all non-technical skills
which have a gap were all related to social skills which means that these skills were not
fully developed but were found to be relevant during the actual work as manifested in
the accounting internship. This was in support to Hassink (2014) study, he mentioned
that these skills were the skills found to be necessary in the actual practice in the
auditing profession and should be given emphasis in auditing courses because
students still lack these skills. On the other hand, the rest of the knowledge and skills in
the nontechnical area, were being given the substantial amount of learning as to its
relevance in the actual workplace. These skills and knowledge were developed in
classroom setting administered by the school. So far, the school was doing a great job
of producing graduates with great competence in nontechnical skills such as critical
thinking skills, problem solving skills, and professional integrity, except for the social
skills mentioned previously. According to Utami (2011), auditors do not merely dwell in
the technical section of debit and credit. Interpersonal interaction and communication
should be developed in order to cope up with the working environment. Siriwardane
(2014) and Pfugrath (2011) also mentioned that problem solving skills and professional
integrity were key factors to be possessed by auditors and this was also the findings in
this research.

With the technical section, the major gap was the knowledge of the latest
technology used in the workplace. This supports the study of Ayeboafo (2012) that
accounting education had not kept pace with the changes in technology. Moreover,
according to Armitage (2010), firms rely more on technical matters particularly with the
use of technology in processing accounting information. These findings were also
manifested in this study. Most of the institution’s curricula had not reflected the
technological changes in the job market for accountants. This knowledge constantly
created a gap between accounting theory and practice. In addition, it also exhibited that
understanding clients’ business was relevant in the accounting internship, but it was not
fully learned in the auditing course. The rest of the technical skills and knowledge were
found to be thoroughly learned in the curriculum and were applied in the accounting
internship thus considering them as relevant in the workplace. This was also in
accordance with Albu (2016) that what was learned in the curriculum was being put into
practice while having the internship program. Accounting programs face the challenge
of providing an educational experience for students that meets the evolving needs of
the auditing profession. The researchers found that the Auditing Internship Program of
the University represented a good means of meeting that challenge and transitioning
students from the classroom to the workplace except for the knowledge and skills in
terms of the latest technology and the social skills, these were the major gaps between
the knowledge and skills developed in school and the actual workplace.

CONCLUSION

The researchers therefore conclude that the knowledge and skills that the
student interns learned in their Auditing Courses were relevant in the actual work during
the internship though in different ranks. However, the main gaps were revealed that the
social skills for instance, interpersonal, communication, presentation, self-confidence
and self- esteem were not yet fully developed by the student interns. In terms of
technical skills, the major gap was determined that the student interns were not fully

Relevance of Auditing Courses as Manifested in the Accounting Internship | 15

equipped with the latest technology that was actually needed in the internship. Overall,
the Accountancy program of the University particularly the Auditing Courses has shaped
the student interns in the preparation for the real working environment.

RECOMMENDATION

The above results and discussion have to be considered in light of some of the
limitations of the study. First and foremost, the respondents were considerably smaller
compared to other related studies. It was recommended that future studies should cater
more respondents in order to have more accurate results. Moreover, stakeholders of
accounting education should come together with organizations to make accounting
education more useful in the real working environment. Accounting education program
should collaborate with organizations when designing curriculum. This was because
they could bring their knowledge and skills in shaping what was taught at schools in
bridging the gap between accounting and practice. Lastly, universities must see to it
that the accounting professors should be competent enough in the aspect of information
technology and satisfy the students with the necessary knowledge and skills that the
modern firms need in terms of technology.

References

Albu, N. Calu, D. Guse, G.R. (2016). The role of accounting internships in preparing
students’ transition from school to active life. Accounting and Management
Information Systems, 15(1), 131-153.
Armitage, J. (2010). Changes in the importance of topics in auditing education:
2000‐2005. Managerial Auditing Journal, 23(9), 935-959.
Ayeboafo, B. (2012). The role of Accounting Educators. Journal of Finance and
Accounting, 3(10), 111.
Barac, K. et al. (2016). Factors influencing students’ learning approaches in
auditing. Meditari Accountancy Research, 24(3), 390-413.
Barnwell, S. (2016). Relationship between internships and employment competencies
of degreed professionals who completed a college internship, Walden University
Scholar Works, 2(4), 156-172.
Bukaliya, R. (2012), The potential benefits and challenges of internship programs
in an ODL institution. International Journal on New Trends in Education and
Their Implications, 3(1), 118-133.
Dean, B (2010). Towards Accounting Students Workplace Preparedness:
A Unique Internship Approach. Australasian Accounting, Business and Finance
Journal, 2(1), 47-64.
Gerken, M. (2010). Enhancing the academic internship learning experience for
business education—a critical review and future directions. Learning at the
Crossroads of Theory and Practice, 3(1), 7-22.
Hassink, H. Meuwissen, R. Bollen, L. (2010). Fraud detection, redress and
reporting by auditors. Managerial Auditing Journal, 25(9), 861-881.
Helliar, C. Monk, C. Stevenson, L. (2009). The Development of Trainee Auditors' Skills
in Tertiary Education. International Journal of Auditing, 185-202.
Jansen, E. (2018). Bridging the gap between theory and practice in management
accounting: reviewing the literature to shape interventions. Accounting, Auditing
& Accountability Journal, 31(5), 1486-1509.
Martin, D. Wilkerson, W. (2009). An examination of the impact of accounting internships
on the student attitudes and perceptions. Accounting Journal, 20(2), 205-214.

Relevance of Auditing Courses as Manifested in the Accounting Internship | 16

O'Leary, C. (2012). Semester‐specific ethical instruction for auditing students.
Managerial Auditing Journal, 27(6), 598-619.
Peytcheva, M. (2013). Professional skepticism and auditor cognitive performance in
a hypothesis-testing task. Managerial Auditing Journal, 29(1), 27-49.
Pflugrath, G. Bennie,N. Chen, L. (2010). The impact of codes of ethics and
experience on auditor judgments. Managerial Auditing Journal, 22(6), 566-
589.
Popova, V.(2012). Exploration of skepticism, client‐specific experiences, and audit
judgments. Managerial Auditing Journal, 28(22), 140-160.
Siriwardane, H. (2014). Skills, knowledge, and attitudes important for present day
auditors. International Journal of Auditing, doi:10.1111/ijau.12023.
Utami,W. Priantara,D. Manshur, T. (2011). Professional Accounting Education in
Indonesia: Evidence on Competence and Professional Commitment. Asian
Journal of Business and Accounting, 4(2), 93‐118.
Warinda, T. (2013), Accounting students’ evaluation of internship experiences from a
skills perspective. International Journal of Asian Social Science, 3(3), 783-799.
Yu, S. Churyk, N. Chang, A. (2013). Are students ready for their future accounting
careers: insight from observed perception gaps among employers, interns, and
alumni? Global Perspectives on Accounting Education, 10, 1-15.
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accounting student motivation. State University of Jakarta Journal, 1(1), 53-64.

Research Tool

Dear Respondent,

In partial fulfillment of our requirements in Research II, we the BS Accountancy

students is conducting a study entitled Relevance of Auditing Courses as

Relevance of Auditing Courses as Manifested in the Accounting Internship | 17

Manifested in the Accounting Internship. The purpose of the study is to ascertain the
relevance of Auditing Courses in the area where they are assigned and to identify the
gaps between the knowledge/skills learned in Auditing Courses and the
knowledge/skills needed by the industry.
Rest assured that data collected will remain absolutely confidential and will be used
on academic purposes only. We anticipate our thanks in the support you will extend to
our endeavors. Your participation in this study will be significantly appreciated. We look
forward for your most honest response on this humble matter. Thank you very much.

Respectfully yours,

Marvin S. Mariano
Jacob B. Ramirez
Wynona Afhel D. Mateo
Ritchelle N. Mora
Mary Grace T. Narag
Researchers
Noted By:

Mr. Rommel Royce V. Cadapan, CPA, MBA, LPT

Research Adviser

SURVEY QUESTIONNAIRE

I. Profile of Respondent
Name: _______________________________________________(Optional)

Sex: Male Female

Area of Assignment in the Auditing Firm:

Relevance of Auditing Courses as Manifested in the Accounting Internship | 18

 (You can check more than one)

Auditing
Accounting
Taxation
Management Advisory
Others: (Please specify) _____________________________________

II. Knowledge and Skills Acquired in Auditing Courses that are Relevant
in the Accounting Internship

Put a check mark in the 2nd column if you acquired the knowledge/skills in your
Auditing Courses and also in the 3rd column if the knowledge/skills were relevant in
your accounting internship.

Knowledge/
Skills Relevant in
Knowledge and Skills learned in the
Auditing Internship
Courses
Interpersonal Skills
Critical Thinking Skills
Communication Skills (oral and written)
Problem Solving Skills
Presentation Skills
Professional Integrity
Self-confidence and Self-esteem
Knowledge in Internal Auditing
Knowledge in External Auditing
Preparation Of Audit Plan
Assessing Audit Evidence
Understanding Client’s Business
Knowledge in Double Entry Accounting
Knowledge on Auditing Standards
Knowledge in Risk Assessment
Knowledge of the Different Types of Assurance
Substantive Testing: Income and Expenses
Substantive Testing: Asset, Liability, and Equity
Assessment of Inherent, Control, and Detection
Risk
Review and Test Inherent Controls
Reporting on Audited Financial Statements
Evaluating Internal Control
Verifying Account Balance and Financial
Assertions
Interpretation and evaluation of Financial
Statements

Relevance of Auditing Courses as Manifested in the Accounting Internship | 19

 Exposure to latest technology adopted in the
workplace (e.g. Information system/ Auditing in
CIS environment)
Project Management Skills

Others: (Please specify)

1._____________________________________
2._____________________________________
3._____________________________________
4._____________________________________
5._____________________________________

III. What are your recommendations, if any to improve the internship program
and the course/curriculum?

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

Verified By:

Mrs. Marie Jean Mendezabal

Research Statistician

Relevance of Auditing Courses as Manifested in the Accounting Internship | 20