INDUSTRIAL TRAINING REPORT

2013

NAME : SYARIFAH SAFFA’ NAJWA BINTI TUAN BESAR

MATRIC : 1090127

PROGRAM : BACHELOR OF ACCOUNTANCY WITH HONOURS

ORGANIZATION: MOHD NIZARUDDIN & CO

INDUSTRY SUPERVISOR: EN AHMAD SAHRIN BIN HUSSIN

UNIVERSITY SUPERVISOR: DR FUADAH BINTI JOHARI

 INDUSTRIAL TRAINING REPORT 2013
MOHD NIZARUDDIN & CO

ABSTRACT

All final year students at Universiti Sains Islam Malaysia (USIM) are required to undergo an
industrial training as part of their curriculum to complete their four year courses at USIM. In the
six months period, students will be monitored and supervised by the respective industry’s
supervisor as well as university’s supervisor.

Mohd Nizaruddin & Co is one of audit firm has welcomed me to do my industrial training at their
workplace. I did my internship program from 1st February until 12th July 2013 at Kajang for
duration of 24 weeks and I was attached to audit department. My task was to assist audit senior
in auditing. This industry report will describe precisely about the knowledge, experience and skill
gained during the period.

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ACKNOWLEDGEMENT

In the name of Allah, the Most Gracious, the Most Merciful.

First and foremost, I would like to thank Allah for giving me the strength to complete this report.

Here, I would like to take this opportunity to express thanks to all individual involved that had
been supported and helping me in these past six months. I would like to dedicate my
appreciation to my family for their understanding regarding the nature of my work especially to
my father, Tuan Besar Bin Tuan Ngah and my mother, Zabariah Binti Ujang. I would also like to
thank my university supervisor, Dr Fuadah Binti for her support, guidance, monitoring and
encouragement throughout the industrial training. Utterance gratitude to my industry supervisor,
En Ahmad Sahrin Bin Hussin for his supervisions, valuable information and guidance, which
helped me in completing this task through various stages.

I would like to record my gratitude towards all Mohd Nizaruddin & Co members for their
assistance, guidance, support and giving me the space to join the group and dig a priceless
knowledge and experience with them. Their precious cooperation was appreciated during
completing this course.

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TABLE OF CONTENTS

PAGE
ABSTRACT 1
ACKNOWLEDGEMENT 2
TABLE OF CONTENTS 3
TABLE OF ILLUSTRATIONS 4-5
CHAPTER 1: INTRODUCTION

1.1 Objectives of Industrial Training

1.2 Scope of Industrial Training
6-7
1.3 Duration
1.4 Importance of Industrial Training
1.5 Objectives of Report

CHAPTER 2: TRAINING ORGANIZATION

2.1 Organization Background

2.2 History
2.3 Mission 8 - 10
2.4 Vision
2.5 Services
2.6 Organization Chart

CHAPTER 3: ACTIVITIES INVOLVED

3.1 Audit Department

3.2 Accounting Department 11 - 12
3.3 Tax Department
3.4 Company Secretary Department

CHAPTER 4: DISCUSSION
4.1 Benefits
4.2 Subject Learned Related to Work
Environment
4.3 New Things Learned
4.4 Issues Faced 13 - 18
4.4.1 Issue faced by the company
4.4.2 Issue faced by the trainee
4.5 Analysis to Overcome Issues
4.6 Suggestions and Recommendation

CHAPTER 5: CONCLUSION 19
20 - 21
APPENDICES

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TABLE OF ILLUSTRATIONS

Table of audit process

1) When a task received (active company)

Examines the
financial Generate financial
statement statement and send
to tax department for
tax and deferred tax
calculation
Prepare trial
balance and
opening Make related
balance. adjustment

Edit report and

Recalculate send the
depreciation of completed to
fixed assets to Regroup the reviewer
ensure accuracy account based
of depreciation on their general
provided by client group

Prepare hire Key in trial

purchase and balance data
term loan into AXP Audit
schedule Express

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2) Draft of audit report

Prepare draf of audit report

Document that need to be attached along:

• Cover letter
• 7 copies of directors' signing pages
• Letter of representation
• Engagement letter
• Sample of directors' confirmation balance
• Sample of bank confirmation
• Audit adjustment
• Bill

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CHAPTER 1
INTRODUCTION

1.1 Objectives of Industrial Training

1.1.1 To provide exposure to students to the real working environment.

1.1.2 To enhance knowledge, skills (especially soft skills) and confer experience to student
in industrial organization.
1.1.3 To practice and apply the acquired knowledge in the real working life.
1.1.4 To develop the marketability of the students to be more competitive.
1.1.5 To tighten the relationship between university and the industry.

1.2 Scope of Industrial Training

1.2.1 Observing the whole operation flow of this industry.

1.2.2 Gaining experience in all departments of the industry.
1.2.3 Work as part of team and develop appropriate communication and interpersonal skills.
1.2.4 Apply theoretical concepts and skills into practices.
1.2.5 Develop work attitudes like curiousness, self-confidence, maturity and self-reliance.
1.2.6 Teamwork exercises.

1.3 Duration

The duration of industrial training for Bachelor of Accountancy Program shall not be less
than twenty four (24) weeks. The training must be concluded in second semester of final
year students. The period begins on 1st February 2013 until 12th July 2013.

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1.4 Importance of Industrial Training

1.4.1 It gives first experience to the trainees about the things they will be working on in
future.
1.4.2 It develops the trainees’ personality and understanding of individuals and groups in
working situations.
1.4.3 It enables trainees to expose in corporate world and professional atmosphere.
1.4.4 It gives opportunity for the trainees to explore every aspects of the industry.

1.5 Objectives of Report

1.5.1 To provide verification to university supervisor and industry supervisor that the trainee
has completed all tasks given.
1.5.2 To ensure the report written and the tasks given is tally.

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CHAPTER 2
TRAINING ORGANIZATION
2.1 Organization Background
Name of the Firm : Mohd Nizaruddin & Co.

Established : October 2000

Registration number : AF 1312

Firm Status : 100 % Bumiputra

Staff Strength : Seventeen (17 )

Address : No. 8-3B, 3rd Floor,

Plaza Citra, Jalan Citra,

43000 Kajang,

Selangor Darul Ehsan.

Telephone no. : 03 – 8739 8279

Fax no. : 03 – 8739 2279

E-mail address : mnceaudit@yahoo.com

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2.2 History
Mohd Nizaruddin & Co (MNC) was founded in October 2000 to offer a quality
professional services as offered by the Big 4 International audit firms as well as the local
ones in servicing corporate businesses and individuals.

Together with its associates, MNC provides a complete spectrum of professional

services which cover audit, business advisory, management consultancy, tax, corporate
secretarial, accounting and corporate recovery and insolvency.

In order to serve its client better, MNC approached the latest technology ( eg. e-mail
and web site ), using the MYOB software to do the accounting, using E-pace engagement
software to do the auditing ( without transferring the cost to the client at all ) and keep on
updating with the current accounting standard such as Financial Reporting Standards (FRS)
and Private Entities Reporting Standards (PERS).

Presently, starting from 2007, MNC is using the latest audit software from AXP solutions.

2.3 Mission
We strive in achieving the following mission:

 To become a national firm with the international skills, quality and standard

 Innovative and proactive in servicing clients’ needs

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2.4 Vision
Our principal of practice lies in what we believe in:

 Quality Professionals
Our people set our standards. We hire only the most qualified professionals to
provide the best advice to our clients.

 Personnel Development
We support the people we hire. We invest in their professional development.

 Continuing Growth
We strive for achieving realistic growth of every year.

 Clients Development
We work with not for our clients. We help them understand why and how they need
to change their business strategies at all times.

 Values
We believe success is measured in the value we bring to our clients.

2.5 Services
 Auditing
 Business advisory
 Management consultancy which consists of business advisory consulting, general
business consulting, cost and productivity, management and operational consulting,
financial consulting, share valuation and IPR valuation, training, corporate recovery
and insolvency and, also turnaround Management

2.6 Organization Chart

Please refer appendices

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CHAPTER 3
ACTIVITIES INVOLVED
3.1 Audit Department
Audit department is often view as the heart of the audit firm. This is due to its responsibility
on overseeing the procedures and accuracy of recordkeeping and accounting functions
within that company. Throughout in this department, I am able to comprehend the actual
processes and procedures involved as I could not get the overview of its whole process
when learnt auditing subject in university. It is essential to have strong foundation in
accounting because it could be difficult to understand the state within company and besides,
it is easier for auditors to detect and prevent any fraudulent happens.

At first, I quite shock the way of auditor works but later, I was able to adapt with their work
and it is understandable that audit is one of the busiest department in audit firm.
Furthermore, I am able to do the audit work under pressure and I managed to handle and
also, complete all the audit work assigned. For instance, I had done five years of audit work
for one company in two days. It absolutely requires me to manage my time effectively, so
that the five years of audited report were delivered to client on time. Apart from that, it really
helps me to be responsible and more focus on work task as any mistakes made may affect
another area in future especially towards to client itself.

3.2 Accounting Department

Accounting department is responsible in handling all financial matters regarding clients’
account. The functions include recording, classifying, summarizing transactions and
business events in monetary terms and interpreting the results obtained. I was engaged in
this department indirectly which means I was not assigned to certain client’s account, but I
am helping another trainee doing client’s account.

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3.3 Company secretary

Company secretary relates with Company Law subject which I have taken this paper on my
5th semester. However, Company Law subject only covers the gist of company secretary
especially from law’s aspect and the clauses. Thus, I barely knew the practicality of their
process as a whole. During these past six month, I have learnt a lot in this area from the
process of incorporation of company, list of directors, shares to be allotted until the
company’s liquidation or insolvency process, For examples, Form 49 has the list and details
of directors such as their identification number and the date of appointed as a director or the
date of their resignation. It is important to know these dates because it will decide which
directors are responsible in signing the audited report for respective financial year. Besides,
I did the statutory audit for task that has been assigned to me.

3.4 Tax Department

As I was mentioned earlier, I was attached to audit department and I did not involve directly
another department except for company secretary department. However, with my
colleague’s guidance, I urge myself to learn about tax especially on tax calculation and
capital allowance schedule. The tax knowledge that I have learnt in 3rd and 6th semester
really facilitates me a lot in terms of the expenses details that are allowable to be deducted
on tax calculation. Besides, one of the new things learnt was deferred tax whereby is about
the future income tax that will be charged on company and it has slightly impact on clients’
financial statement.

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CHAPTER 4
DISCUSSION
4.1 Benefits
There are some benefits as I was attached in this industry.
4.1.1 Applying the theoretical knowledge into practices.
One of the reason I chose audit firm as my training industry is because I wish to
apply the knowledge acquired during studied whereby major of the subjects related
with accountancy overall. This is because sometimes the knowledge acquired
theoretically is not applied practically. Thus, by entering the real working
environment in this industry I can see clearly how the knowledge being practice
and the whole process from the incorporation of company until the final of audit
report for company to be sent to Company Commission of Malaysia (CCM).

4.1.2 Time management

Every work or task assigned has its own goals that need to be achieved. In order to
accomplish each task successfully, we need time management. As we know, time
management is very important to personal life and career success. Industrial
training really facilitates me in enhancing my time management. It teaches me to
manage time effectively, so that the right time is allocated to the right activity. By
having time management schedule, I could prioritize my activities as per their
importance and urgency, so that all the tasks assigned can be completed within
deadlines.

4.1.3 New things learned

Indeed, not all knowledge acquired is applicable in the real industry. However,
there are new things learned during this period that will be discussed later.

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4.2 Subject Learned Related to Work Environment

4.2.1 Audit and Assurance
As I was attached in audit department, the most related subject with the work
environment are Audit Procedure and Audit and Assurance Services that have
been learnt in 4th and 5th semester. During those semesters, I was learnt about the
basic concepts and theories about auditing but barely know the whole process
involved. Therefore, all knowledge that I have learnt are being practice in Mohd
Nizaruddin & Co. For instance, I ought to do the audit planning at first stage before
proceed to audit engagement so that, my audit work will be accomplished along
with timeline given by my supervisor. Different companies have different materiality
level and have their own risk. Thus, during audit planning, I need to know the
materiality level and risk assessment for company in order to ensure the audit
process will results smoothly.

4.2.2 Accounting
The subject of accounting such as financial accounting, management accounting,
public sector accounting seems to be applied when I had my industrial training.
These subjects develop further understanding of accounting principles and their
application to the financial statement in accordance with IAS and MASB. It also
discusses and provides knowledge of ethics and accounting profession in the real
world. Even though, I was not attached in accounting department, I still need to
know the principles so that, I would know the mistake done by client and able to
make the adjustments for them.

4.2.3 Taxation and Zakat

I have learnt taxation and zakat subject during 3rd and 6th semester. Even though, I
was not attached in tax department, I still have the opportunity to learn how to
prepare tax computation schedule, qualifying expenditure schedule and calculation
of zakat. Besides, I learnt the effect of deferred tax on clients’ account in terms of
management’s obligation to accurately report the true state of company and
management has to make judgments and estimations where necessary. As far I
am concerned, deferred tax is known as future income tax and it has a reasonable
likelihood that the tax difference may be realized in future years.

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4.2.4 Organizational Behaviour

From my observation, I knew that Organizational Behaviour subject is related with
my training environment. By learning this subject, I am able to understand and
adapt with their working environment easily. Moreover, I can see that my employer
did a great role as a leader and this is proven by the management and staff
relations as their relations are very fascinate. The purpose of the manager-staff
relations’ enhancement is to ensure effective communication and to secure
maximum cooperation from staff and motivate them as well as to avoid conflict of
interest within company. There are a lot more things I learnt in this subject
applicable in my training industry.

4.3 New Things Learned

Apart from the subject learned during study, there are some new things I learned from
my industrial training. For instance, I have learnt several software used in this audit firm
which are AXP Audit Express software and MYOB for accounting purposes. Different
audit firm has different needs and they may use different software and as for this
company, we are using AXP audit express software for audit purposes. By using this
software, it facilitates audit work and make day to day tasks easier and it also enable us
to better serve clients. Furthermore, it also helps to reduce cost and increase operational
efficiency of audit engagement. For accounting purposes, we use MYOB software and it
is simple and easy to use as for me as first-timer user.

In addition, I also learnt how to deal with clients since I was assigned to cater all clients
call. Dealing with client that has various attitudes is very challenging. At first, I almost
stuttered while deal with client and sometimes misheard about them. However, I
managed to overcome the problem and it absolutely helps me in enhancing my
confidence level. Therefore, I need to be a calm and wholehearted person in order to
ensure that all clients are comfortable around me and I always need to remember that
well-served client will brings pleasure and satisfaction towards company and client itself.

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4.4 Issues Faced

4.4.1 Issue faced by the company
Time delayed in audit process completion
Time delayed in audit process completion could be occurred regularly due to
insufficient documents provided and also, inadequate number of staff.
Nevertheless, in my case, the tardiness of audit procedures process usually
occurs in second stage which is the review part. Basically, the tasks given need to
be done in one or two weeks before we are able to send the draft of audit report to
client. After completed the audit work, audit report should be reviewed first in
order to ensure there is no unnecessary mistakes made. However, this process
will be delayed due to lateness in reviewing. It is understandable because there is
only one staff that is responsible to review all the report.

4.4.2 Issue faced by the trainee

Lack of supervision
Lack of specific knowledge and experience is one of the problems faced by me as
the trainee in this industry. As I was attached in audit department, I am required to
do audit field at clients’ workplaces. It is good for us, trainees to experience the
flow of audit field and we would be exposed with the way of work in other
workplaces. Nonetheless, most of the time, the audit field that attended by me and
another trainee is not accompany by senior. By not having a senior to guide us, it
could lead the wastage of time as we are lack of specific knowledge and
experience. Thus, we are quite distorting which step that we should be done first.
Furthermore, we are quite unfamiliar with the proper way to do an audit field that
relates to clients’ nature of business. Thus, the process of documents or evidences
collection could be disrupting without knowing the proper way.

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4.5 Analysis to Overcome Issues

4.5.1 Time delayed in completion of audit process
The punctuality and work’s eminence are very important in any industry and
workplace. As I am concerned, it is impracticality for one staff to review all the
report especially when there are urgent tasks that need to be review. More
mistakes could be happened because some things may overlook. The possibility
of errors may happen in next stage be able to be higher. As a result, the
professionalism of auditor and name of audit firm could be tarnished if the higher
authorities able to detect those unnecessary mistakes.

This situation had happened before whereas Company Commission of Malaysia,

the higher authorities discovered the erroneous client company’s number which
stated on audited report. This error should not take place as we could avoid these
by thorough assessment on audited report. Therefore, in order to overcome this
problem is to add more staffs in this review stage at least two persons, so that the
operations and process will become smooth. However, my employer did not
prefer with this indication.

4.5.2 Lack of supervision

Mohd Nizaruddin & Co often receives students that had undergone the industrial
training as it certainly has the allocation for practical students in its operations’
guidelines. The management should notice the structured training plan is needed
as it is an essential to train all those trainees. Besides, the supervision on trainees
should be enhanced because we are quite unfamiliar with the whole of audit
process. The will to learn more and the trust given to solve the problems is one of
advantages by putting us, trainees in different situation but, the supervision and
guidance should be attached along.

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On the other hand, the implications of job done without being supervised leads to
bigger predicament. The time wastage could be happened as we as trainees are
not being supervised and guided especially during audit field. Besides that, the
accumulation of sufficient appropriate evidence to support opinion issued could be
disturbing as we may overlook the related evidence and barely knew types of
documents should be included. Therefore, sufficient supervision is needed along
with proper planning and training schedule will be conducted.

4.6 Suggestions and Recommendations

4.6.1 Manual Assessment Method

In my opinion, the system used now for industrial training (e-Li) is not very effective
for certain circumstances. For instance, the practice of daily log report in system.
The weakness I found is that it needs for internet connection. In certain workplaces
does not have any internet connection. Thus, for my supervisor to access my
report is very difficult. They do not want to review it at home. Besides, it also
difficult for the trainee that do not have internet connection at their home to update
the report everyday. Thus, I recommend to update the report manually in the log
book is better because the trainees can immediately update their work once they
accomplished.

4.6.2 Application of English Language in the industry.

From my observation, Mohd Nizaruddin & Co only use Malay Language in their
daily conversation. Thus, I would like to suggest for them to use English language
in practice as English is the international language. I believe with the changes, the
quality of services can be improved apart from expanding their business
opportunity

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CHAPTER 5

CONCLUSION

It was a great opportunity for having an industrial training program at Mohd Nizaruddin
Co which situated at Kajang. It give me valuable knowledge, great working experience
and precious remembrance. The effort to attached me in audit department broaden my
experience and knowledge to get the idea of whole auditing process which it covers all
area from company secretary, accounting and calculation of tax and how these all
interrelated between each other. During this period, the most challeging time I had is
when I have to fix my mistake and faced with customer’s dissatisfaction. However, I
knew that this is the best lesson I got and feels the satisfactions after I can overcome the
problems one by one with my own effort. In a nutshell, I extremely believe this industrial
training give a lot of benefits to the trainees in whatever field they enter to strengthening
and improve their skills and knowledge acquired during studied.

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APPENDICES

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Figure 2: Audit work flow

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