javed sarfraz & co (chartered accountants) internship report

June,2014.

Semester 6th

Internship Report

Javed Sarfraz & Co (Chartered Accountants)

2Javed Sarfraz & Co. (Chartered Accountants)

Acknowledgement

First and Foremost, I would like to thank the Almighty ALLAH . Then, I would like to thank my

supervisor, Mr. Ansir Mahmood, for his assistance, ideas, and feedbacks during the process

in doing this dissertation. Without his guidance and support, this dissertation cannot be

completed on time.

Secondly, it is a pleasure to express my thanks to all respondents from interviews and case study

for sparing their time to participate in this study. I deeply appreciate their helpfulness and

willingness in providing the useful information for this study.

Lastly, I wish to express my sincere gratitude to my family for their encouragement and moral

support.


Table of Contents

Details Page #

Acknowledgement ………………………………………………………… 02

Executive summary …………………………………………………...…… 04

Introduction ………………..………………………………..……………… 05

Profile ………………………………………………………………… 06

Overview of organization …………………………………………...…… 07

Vision statement ………………………………………………………… 08

Mission statement …………………………………………..………..…… 08

Nature of organization ………………………………………………… 09

Product line/services ………………………………………………………… 10

PEST analysis ……………………………………………………… 12

Hierarchy chart …………………………………………..…………… 13

Clients name ……………………………………………………………… 14

Introduction to departments ………………………………………………… 15

Auditing ……………………………………………………………… 15

Taxation …………..……………………………………..…………… 20

Income Tax ……………………………………………………………… 20

Sales Tax ……………………………………………………………… 23

Consultancy services ……………………………………………………… 24

Corporate services ……………………………………………………… 24

SWOT analysis ……………………………………………………… 26

Recommendations ……………………………………………………… 28

Conslusion ……………………………………………………………… 29

Refrences ……………………………………………………………… 30


Executive Summary of Internship

My six weeks Internship Program work term was with the Javed Sarfraz & Co. (Chartered

Accountants), Gujranwala. I was involved in the area of accounts during my work term, all of

which will be outlined in this report. As the main purpose of internship is to learn by working in

practical environment and to apply the knowledge acquired during the studies in a real world

scenario in order to tackle the problems using the knowledge and skill learned during the

academic process.

There are two major projects that I had a significant role in during my internship program.

The first project was at Abdul Islam and company and at the Reckitt Benckiser Pakistan. My task

was to study the sale invoices of those companies and record it to on computer through data

entry software. My task was to

Enter sale invoices Match the results with companies record Audit process Maintenances of accounts / book keeping

The second project was to fill income tax returns and sale tax returns. In this project we worked

on some issues regarding Audit trails in such an environment and some solutions were proposed.

Although I spent a lot of time learning new things, I found that I was well trained in certain areas

that helped me substantially in my projects.

This report concludes with my overall impressions of my work experience as well as my opinion

of the Internship Program.


Introduction to Chartered Accountancy in Pakistan

Institute of Chartered Accountants of Pakistan (ICAP) is a professional accountancy body in Pakistan. As of 15 April, 2013 it had 5,943 members working in and outside Pakistan. The institute was established on July 1, 1961 to regulate the profession of accountancy in Pakistan. It is a statutory autonomous body established under the Chartered Accountants Ordinance 1961. With the significant growth in the profession, the CA Ordinance and Bye-Laws were revised in 1983.

In view of globalization of the accountancy profession, the Institute is in the process of updating the Ordinance and Bye-Laws once again.

The course of ICAP involves a blend of theoretical education and practical training which run concurrently for a period of 3.5 years and equips a student with knowledge, ability, skills and other qualities required of a professional accountant.

The head office of the institute is in Clifton, Karachi where it has its own premises. The institute also has regional offices at Lahore, Islamabad, Peshawar, Multan and Faisalabad.

Last five year membership of chartered accountancy in Pakistan is as follows

Year 2006 2007 2008 2009 2010Members 3,86

44,110 4,24

34,709 5,078


Brief profile of Javed Sarfraz & Co (Chartered Accountants)

Name Accountant Javed Sarfraz & Co (Chartered Accountants)

Year of establish 1982

Owner Javed Sarfraz

Manager Ansir Mehmood

Address 7-B First Floor, Trust Plaza G.T. Road, Gujranwala.

Telephone 055-3259850

Mobile 0322-6002786

Email [email protected]

Area of Services Auditing

Taxation

Management consultancy

Professional consultancy

Corporate services

Financial Analysis

mailto:[email protected]


Overview of the Organization

Javed Sarfraz & Co (Chartered Accountants) is firm of Chartered Accountants registered with Institute of Chartered Accountants of Pakistan in 1982 by Javed Sarfraz (FCA), the member of Institute of Chartered Accountants of Pakistan. The head office of Javed Sarfraz & Co (Chartered Accountants) is 7-B First Floor, Trust Plaza G.T. Road, Gujranwala.

The principal of this Chartered Accountant firm is Javed Sarfraz (FCA). At present time Javed Sarfraz & Co (Chartered Accountants) constitutes 12 staff members. Mr. Ansir Mahmood is manager.

The firm is dealing with Auditing, Taxation, management consultancy, professional consultancy, corporate services. It is one of the leading Chartered Accountancy in Pakistan. Javed Sarfraz & Co (Chartered Accountants) provides clients with valuable information to help them make the right decision at right time with tools such as cash flow, benchmarking, forecasting and much more.

Javed Sarfraz & Co (Chartered Accountants) faces the competition from

1. Asjad & WaqasChartered AccountantsE-4, 1st Floor, Trust PlazaG.T. Road, GujranwalaOff. 3254674, Fax.3255038Email: [email protected] , [email protected]

2. M.A. Chaudhri & Co.Chartered Accountants2/C Trust Plaza, G.T. Road, GujranwalaOff. 3259556, 3822599, 3256258, Fax.3256258Email: [email protected]

3. Ch. Shafaqat & Co.Chartered Accountants3-B, 1st Floor Trust PlazaG.T. Road, GujranwalaOff. 3856796, 0333-8103052Email: [email protected]

4. Ilyas Saeed & Co.Chartered Accountants3-B, Trust PlazaG.T. Road, Gujranwala-52250Off. 3856796, 3843668Email: [email protected]


Vision Statement

“We believe is adding value

to your organization and making

mutually long term beneficial

business relationship

by delivering high quality services

to your organization”

Mission Statement

"Our Mission is to foster decision-making

and public confidence in the

Chartered accountancy profession and

commitment to excellence.

We continuously seek good ideas that convert

into positive practical advice for

the benefit of our clients and

we respect and recognize the efforts

and skills of our team.”

Nature of the Organization


Chartered accountants provide trustworthy information about financial records. This might involve them in financial reporting, taxation, auditing, forensic accounting, corporate finance, business recovery and insolvency, or accounting systems and processes. Generally, they play a strategic role by providing professional advice, aiming to maximize profitability on behalf of their client or employer. They work in many different settings including public practice firms, industry and commerce, as well as in the not-for-profit and public sectors.

In public practice firms, chartered accountants provide professional services to fee-paying clients who might be private individuals or large commercial or public sector organizations. In commerce, industry and the not-for-profit and public sectors, they may work in treasury management, procurement, and financial management or in reporting roles.

Work activities of Chartered Accountant

The role of a chartered accountant can cover many aspects of financial work, including:

continuous management of financial systems and budgets undertaking financial audits Providing financial advice.

In public practice, typical work activities include:

liaising with clients and providing financial information and advice performing tests to check financial information and systems advising clients on tax planning and tax issues associated with activities maintaining accounting records and preparing accounts and management information for

small businesses advising clients on areas of business improvement detecting and preventing fraud

In commerce and industry, typical work activities involve:

liaising with internal and external auditors preparing financial statements preparing financial management reports advising on tax and treasury issues

Product/Service line:


Chartered Accountant firms render various types of services to their clients. According to the

types and nature of the clients. The nature of service also differs from firm to firm, which

includes corporate services, feasibility report, professional consultancy etc. The firm is dealing

with;

Auditing

Taxation

Management consultancy

Professional consultancy

Corporate services.

Auditing:

CA firms provide the services of auditing to their clients. According to the companies ordinance

1984 all the public and private limited companies are required that Chartered Accountant must

sign their accounts. The welfare organization and NGO’s are also required to get their accounts

audited by the Chartered Accountant firm.

CA firms audit the accounts of their and check all the major books along with subsidiary books

and vouchers with supporting evidence. After this process then they express their opinion upon

the accuracy or inaccuracy of the accounts. They write an audit report and also mention the

various transactions, which are not duly verified. They also write audit report to the management

in which they express any weakness of the management how to control these weaknesses. They

are rendering for such services charges some fees.

Taxation:

The CA firm provides tax services to their clients. Some firms are specially deals in tax. The

client who needs the services regarding to tax pay fee for such services and the auditor gives him

a very useful service by the tax returns.

Management Consultancy:


CA firms provide management consultancy to their clients. In management consultancy include

development and implementation for accounting system, manuals and management information

system. In order to make their management efficient they appoint staff may or may not have a

professional auditor’s qualification. Sometimes the company independent auditors to conduct the

internal audit of their accounts. The auditor checks the system and the policies of the

management along with the books of accounts. The auditor has to report to the management

whether the policy and plans of activities prescribed by them have been implemented, whether

the internal check and internal control established are adequate, whether the actual result are

obtained and varying from the estimates, and to enable the management to achieve the objective

of the company in a planned manner.

Professional Consultancy:

CA firm also provide the professional consultancy services to their clients. When appointed as

consultants, they valuate sick units for the purpose of privatization. Evaluate the reports and bid

documents in respect of the sick projects prepared for the Privatization Commission Government

of Pakistan. CA firm s also provides the professional assistance in the establishment or the

organization.

Corporate Services:

The Chartered Accountant firms are also providing the corporate services in the connection with

the corporate law authority.

PEST ANALYSIS


Political, Governmental, and Legal Forces

Government regulations or deregulations

Changes in tax laws

Voter participation rates

Economic Forces

Interest rates

Money market rates

Availability of credit

Tax rates

Social, Cultural, and Demographic Forces

Number of special-interest groups

Per capita income

Attitudes toward business

Government regulation

Hierarchy Chart


Our Major Clients

Javed SarfrazFCA

Manager Audit

ManagerCorporate

ManagerTaxation

Senior Auditor

Office boy

Peon

Assisstant Auditor

Junior Auditor

Senior Taxation

Junior Taxation

Senior Corporate


Abdul salam & Co.

M.A. Enterprises.

Ansir enterprises.

Yousaf traders.

Mazahar enterprises & steel company.

S.N.M. traders.

Business colleges.

Rizwan Industries.

Ajmal traders.

Al-Kalam Dying (pvt) ltd.

Tony Brothers (pvt) ltd.

Introduction to departments


Auditing

Origin of Auditing

Usually origin of audit is traced to the middle ages, but infect the introduction of large scale production gave birth to audit, after the industrial revolution during the 18th century.

In the beginning there was small-scale production was smaller, the technology was simply and has a low capital. But with the passage of time, these things were all improved and enlarged and thus proper checking of them became very much necessary in the audit.

History of Audit profession in Pakistan

After its emergence on August 14, 1947 of Pakistan adopted the Auditor’s Certificate Rules, 1932 for regulating the audits and accounting profession. Necessary amendments were made in 1950 on the affairs of the accountancy profession were then administered under the Auditor’s Certificate Rules 1950. In the 1950, Registered Accountants Firms formed a private body Knows as “Pakistan Institute Of Accountants” with the objects and ultimate goal of having an autonomous association in the country. So the institute of Chartered Accountants of Pakistan was established on July 01, 1961.

Definition of Audit

The word audit is derived form the Latin word “AUDIRE” which means “To Hear”. In the past whatever the owner of the business suspected fraud, they appoint certain persons to check the accounts. Such persons would hear the accountants what ever they had to say in the connection with the accounts.

The international standards of auditing (ISA) has defined as “ An audit is the independent examination of financial statements or related information of an entity whether profit oriented or not, and irrespective of its size, or legal form, when such an examination is conducted with a view to expressing an opinion thereon”.

OBJECTS OF AUDIT


The Main Object Of Audit Are As Follows.

1- To verify statements:

The auditor has to verify the accounts and financial statements prepared by the clients and his staff. The auditor’s responsibility and respect to his appointment is to verify each and every transaction thoroughly.

2- To discover errors and frauds:

The auditor has to discover errors and frauds, if any, which might have been committed intentionally or unintentionally. Intact it is a very difficult task to discover intentional errors and frauds. Sometimes the clients may not provide actual fact and figure and in such case its is so difficult for the auditor. As a matter of fact this was the primary object of auditing but now it is considered to the secondary object.

3- To prevent errors and frauds

Detection of frauds is considered to be one of the most important duties of an auditor. As a matter of fact originally audit was conducted mainly with a view detect fraud whenever it was suspected. The system of internal check aims at the prevention of fraud. In this way if the staff of the account deportments knows that the accounts prepared by them are subject to audit, they are very careful to see that no fraud or errors is committed.

Types of Audit

There are two types of audit, which are as follow.

1- Internal Audit

Internal audit is the independent appraisal of activity within an organization for the review of accounting, financial and other business practices as a protective and constructive arm of management. It is a type of control, which functions by measuring and evaluating the effectiveness of the other type of controls.

In other words internal audit consists of continuous critical review of financial and operating activities by a staff of auditors functioning as full time salaried employees. Internal audit implies an audit of the accounts by the employees of the business. A separate staff that may or may not have professional audit qualification does the work. The function of the internal auditor is same as that of an auditor.

In addition to that the internal auditor has to see that there is no wastage and the business is carried on efficiently.


In internal audit we prepare a management report. The auditor has to report to the management that the system and policies prescribed by them have been implemented, whether the internal control and internal check established were adequate, whether the actual result obtained were varying from the estimate enable the management top achieve the objective of the company in the planned manner. Impartial qualified chartered accountant do the internal audit. In internal audit the management wish that the auditor discovered as many errors as possible so that they can be efficiently prevented.

2- External Audit

External audit is conducted to report to the shareholders of the company. It is obligatory audit in which the shareholder appoints external auditors. The auditors only check the system and policies of the business. He has only to check the accounts and express their opinion about the accuracy or inaccuracy of the accounts and reports the facts and figures of audit to the shareholders of the company.

Auditing Procedure

An audit planning i.e. an audit plans relating to extent and scope of an audit.

Developing the audit programme i.e. the procedure that are needed to implement the audit plan.

Examination of the accounting system

Evaluation of internal controls

Simple checking of vouchers

Verification of assets and liabilities

Submission of auditor reports

HOW TO CONDUCT AUDIT

The Operation Of Audit


The audit work is operated with the help of the following techniques:

o Ticking.

o Casting.

o Calling Over

o Vouching.

o Verification.

o Reporting.

1. TICKING:

Ticking indicates the placing of a mark against an entry in the book to denote that the auditor has examined it for a certain purpose. Variously shaped marks are used to denote checking of additions, posting, carry-forward, tracing, extraction of balances etc. Ticks are generally put in indelible pencil, although some auditors also use pen and ink for this purpose.

To ensure consistency, most of the good auditors use a tick chart, which is required to be learnt by heart by all the members of the audit staff.

2. CASTING:

Casting refers to the checking of additions of books of accounts and financial statements. It is essential that arithmetical accuracy be checked so that frauds or errors (if any) may be detected. A junior member of audit staff normally does this job. Most of the auditors use mechanical appliances or adding machines to check the casting of the books of accounts.

3. CALLING-OVER:

A sizable part of the work of audit consists in the comparison of entries in two or more books of an entry in a book with its supporting evidence or voucher. This is usually carried out by two clerks, one reading the item to the other. Care should be used to see that the whole of the important detail of each item is checked and not merely the amount. Special care in checking postings to personal ledgers is needed as to names and title of account; otherwise a wrong posting may remain undetected. Clarity in pronunciation is essential. There may be a confusion between ninety and nineteen, Sixty and sixteen and so on. Thus it is advisable to pronounce ninety as ninetie, sixty as sixtie and so on. Similarly when calling out a figure as Rs. 80.90, there should be a pause between 80 and 9, lest it should be understood as 89.

4. VOUCHING:


The function of the voucher is to authenticate an entry and the auditor must satisfy himself that it does this. It must correspond in date and account to the entry in the books. It must be in respect of the entire client and entry must be correctly passed in the books. The act of vouching consists of checking the documentary evidence such as

Invoices Cash memos Bills Receipts Vouchers Minutes

Reference to legal documents etc. as should establish the accuracy and truthfulness of the entries appearing in the books of account, and in those cases where it is not so, the matters are noted for discussion and if the auditor still remains unsatisfied, the outstanding matters are reported to the client.

5. VERIFICATION:

When an auditor has couched the entries appearing in the books of account, his duty is not thereby fully discharged. If appointed for audit under the act, he has to report whether or not the balance sheet exhibits a true and correct view of the state of affairs of the company. For this purpose, he should satisfy himself on the following points:

That each asset and liability is correctly valued and correctly stated in the balance sheet. That the assets actually existed at the date of the balance sheet. That they are not property of the business. That they are not suffering from a charge except that disclosed in the balance sheet.

The techniques of audit carried out to achieve the foregoing objectives are known as verification.

6. REPORTING:

After the above steps have been carried out, the auditor will then be required to submit his report. The form and the contents will depend upon several factors, e.g. the legal status of the appointing authority, the contract for the scope of work to be done, whether the audit is being conducted under the companies’ ordinance 1984. Banking companies ordinance 1962, insurance Act, 1938, etc. The points to be considered while drafting a report in respect of sole traders and partnership concerns will be dealt with a length in a separate chapter of this book. However, the form of auditor report to be submitted after the annual audit of accounts of a company has been prescribed as Form 35-A annexed to the companies Rules, 1985.

TAXATION


INTRODUCION:

The rang of CA firm in the area of taxation covers personal and corporate tax planning supplemented by representation on behalf to client before the central board of revenue obtaining clarification etc, and before Assessing and Appellate Authorities.

These services are in follows

Tax planning. Personal taxation. Corporate taxation

At the time of separation the highest and the administrative executive authority for revenue collection in Pakistan is the central Board of Revenue (C.B.R), which was constituted under CBR Act 1924. It is a statutory body appointed by the central government for the purpose of tax collection in the country. The Board consists of few members and all the revenue authorities are subordinate to it. Central board of Revenue is responsible for collection of revenue income come from income tax\, sales tax, wealth tax and excise duty and there are various departments like income tax and sales tax departments for the collection of such taxes.

A Chartered Accountant firm deals in the area of income tax, sales tax and wealth tax on behalf of its clients including individuals, firm and corporation etc, we will discuss tax, income tax, wealth tax and sales tax In separate sections.

Income Tax Sales Tax

These areas are discussed below.

INCOME TAX

Income tax is the major source of revenue collection by C.B.R income tax departments is responsible in the country for the collection of income tax law provides guideline for the proper administration of the whole system.

SOURCES OF income tax law:


1- The income tax ordinance 2001.

2- The income tax rules 2005.

3- The income tax Appellate tribunal1981.

4- Notification issued by Central Board of revenue.

5- Notification issued by federal Government.

6- Circulars, instructions and orders issued by C.B.R

7- Case law i.e. orders of Supreme Court, High court, Income Tax Appellate tribunal, Appellate Audit and Additional Commissioners of Income Tax.

Heads of income (Under section 11)

(1) For the purposes of the imposition of tax and the computation of total income, all income shall be classified under the following heads, namely:

(a) Salary; Section 12

(b) Income from Property; Section 15

(c) Income from Business; Section 19

(d) Capital Gains; and Section 37

(e) Income from Other Sources. Section 39

(2) Subject to this Ordinance, the income of a person under a head of income for a tax year shall be the total of the amounts derived by the person in that year that are chargeable to tax under the head as reduced by the total deductions, if any, allowed under this Ordinance to the person for the year under that head.

(3) Subject to this Ordinance, where the total deductions allowed under this Ordinance to a person for a tax year under a head of income exceed the total of the amounts derived by the person in that year that are chargeable to tax under that head, the person shall be treated as sustaining a loss for that head for that year of an amount equal to the excess.

(4) A loss for a head of income for a tax year shall be dealt with in accordance.


(5) The income of a resident person under a head of income shall be computed by taking into account amounts that are Pakistan-source income and amounts that are foreign-source income.

(6) The income of a non-resident person under a head of income shall be computed by taking into account only amounts that are Pakistan-source income.

For the computation of tax payable assesses may be divided into the following categories.

(a) Individual, Artificial Judicial Person

(b) Registered firm

Company Local Authority Cooperative Society

For the purpose of rates of tax a company may either be a

1. Public Company

2. Private Company

3. Banking Business

4. Moddarba Company

Filling of Return of income Tax

The total income of any person in respect of which such person is assessable, for an income year exceeds the maximum amount which is not chargeable to tax under the tax ordinance or who has been charged to tax in any of the four preceding income years or who owns a motor vehicle or who subscribes a telephone, or who owns immovable property with land area 250 sq yards located un the limits of Metropolitan corporation, municipal corporation, a cantonment board or Islamabad Capital territory, who has undertaken foreign travel except for the purposes of Haj, Umrah or Zuarat during the year.

SALES TAX


A Sales tax is imposed on the sales of goods and services, it is collected by the retailer at the point of sales and is computed on a fixed percentage of the retail price. Sales tax department, which comes under the central Board of Revenue, is responsible for the collection of sales tax under the sales tax Act 1990.

Tax Period

Tax period means a period of one month or such other period as the Federal Government may specify in the official gazatted by a notification.

Registration:

Every person or entity ho makes a taxable supply in Pakistan in the course of any taxable activity carried out by him and whose total turnover from taxable supplies made in any period exceeds Rs. 2.5 million in case of manufactures and Rs. 5 million in case of retailers.

Services of CA firm related to Sales Tax:

1- Chartered Accountants firms provides services to its clients for the registration under sales tax act 1990.

2- The Central Board of Revenue has also appointed Ghaffor & Co under section 32(A) of the sales tax act 1990 for the audit of business concerns.

3- Chartered Accountants firm provides all types of consultancy services in the area of sales tax.

4- They help their clients in compilation of Sales Tax Return . In a CA firm sales tax consultants also go for hearing of appeals for refund before collectorate of sales tax on behalf of its clients. It also appeals for claims against additional taxes.

CONSULTANCY SERVICES


Chartered Accounts firm provides number of services to its clients i.e. individuals, firm, corporation, Association of persons etc.

There are some major consultancy services, which is provided by the Chartered Accounts firm.

Feasibility report. Pre-investment proposals. Disinvestments report.

Feasibility report is the Pre-investment of forecasting for investments prepared by a Chartered Accounts firm. Feasibility report is the Pre-investment planning before the starting of a project. Feasibility report are prepared to show future investment, costs and applicability of the plan of a project, and forecasting of profits for coming five years, and give report of disinvestments about any firm or the Chartered Accounts firm.

CORPOTATE SECTOR SERVICES

SOME ABOUT SECURITY EXCHANGE COMMISSION OF PAKISTAN (SECP)

The Securities and Exchange Commission of Pakistan has succeeded the erstwhile Corporate Law Authority, which was an attached Department of Ministry of Finance. The process of restructuring the Authority was initiated in 1997 under the Capital Market Development Plan of the Asian Development Bank (ADB). A Securities and Exchange Commission of Pakistan Act was passed by the parliament and promulgated in December 1997. In pursuance of this Act, the Securities and Exchange Commission of Pakistan, having autonomous status, became operational from January 1st 1999.

The Act of Securities and Exchange Commission of Pakistan institutionalized certain Policy decisions relating to the Constitution and Structure of Commission, its powers and functions giving administrative authority and financial independence to carry out the reform program of Pakistan’s capital Market with assistance of Asian Development Bank (ADB). Powers of the Commission have been delegated to the individual Commissioners and Appellate Benches, as envisaged in the Act.

The Commission became operational in January 1999, and it has come a long way since than. The scope of the authority of the commission has been extensively widened. The Insurance Sector, Non Banking Financial companies, Pension Funds have since been added to the purview of the Commission.

Now the Commission Mandates includes the entire Non Banking Financial Sector i.e. Investment Financial services, Leasing Companies, Housing Finance Services, Venture Capital Investment,


Discounting Services, Investment Advisory Services and Asset Management Services etc. The Commission has also been delegated powers, which the federal Government had, in regulating various External Service providers that are linked to the corporate sector, like chartered Accountants; rating agencies, cooperate Secretaries and others. So the challenge of the SEC has amplified manifold with the increased mandate it now has.

The major areas in which the services are performed by Chartered Accountant firms are mentioned below:

Rectification and change of company’ s names and company’ management.

Alteration in Memorandum or Articles of Association.

Issue of shares or filling return of allotment and increase in paid up capital up.

Transfer of share from one to other shareholders and management.

Issue of debentures, which are transfer from thereof.

Formation of trusts, preparation of trusts deed and related documentation.

Preparation of prospectus for public issue.

Appointment of subsequent chief executives and matters related to chief executives and

other directors.

Professional assistance in holding and completion of legal formalities in case of

extraordinary general, meetings and other board’s proceedings.

Settlement of disputes as arbitrators or through arbitrators and

Winding up of companies, companies and complete professional assistance until

complete liquidation process.

SWOT Analysis


Strengths

Long standing clients

Quality staff

Focused workforce

Excellent Business Ethics

Supportive management

Cooperative environment

Name basis with large percentage of clients

Good Relationships with Tax officers

Flexible work environment

Controlled growth

Organization gives opportunity for career path

Weaknesses

Due to lack of audit staff only 2-3 audits can be carried at a time

No Company Website

More emphasis on business Taxation Services rather than audit

Limited knowledge of markets outside Gujranwala

Shared office, no separate departments in the office

Dependability of staff

Strict Policy for absenteeism among employees causing dissatisfaction

Opportunities


Create an interactive web-site

Firm can get more audit services from clients if proper marketing techniques are applied

Add additional high quality audit and tax services to drive additionalbusiness

New more efficient staff

Consolidation of offices

Better Computer equipment and accounting soft wares for staff

Hire 1 or 2 audit staff

Growth markets

Threats

Competition hiring staff

Day by day increasing Competition in taxation and audit markets

Turnover of customers to other firm’s

Loss of audit clients due to lack of audit team members

Firm might be outdated due to lack of technology and employee’s technological orientation

Recommendations for the Improvement of Organization


During the course of my internship I had a chance to view Javed Sarfraz & Co (chartered

Accountants) firm’s possible problems and upon my careful observation during work and based

on facts and my judgments I am being able present the recommendations for improvement in the

organization.

The Firm should develop an efficient marketing department.

Works which are pending over a long period of time should be given preference and done

as quickly as possible.

More emphasis should be on Auditing services rather than Taxation.

New forms of technologies should be introduced to the firm.

New and energetic employees should be hired with blend of experienced one’s.

Audit team should be expanded to get more audit services from clients.

Audit department should perform audits of companies in the specified time limit.

Potential clients should be targeted through proper channels.

Team work should be encouraged for success of the firm.

CONCLUSION


Internship at Javed Sarfraz & Co. (Chartered Accountants) was a good start of my professional

experience. The friendly attitude of personnel has convinced me to work with such a dynamic

environment, where peace and creativity are the key elements in driving the organization towards

its success. This organization has professional oriented vision of doing business so the purity

which lies in their ambiance is enough to impress any prospective business professional. Javed

Sarfraz & Co. (Chartered Accountants) since its formation in 1982 has really come a long way

through and has achieved a lotin this very short span. The firm has a great name in its industry

and market value. The operations of firm are purely transparent and the services offered by this

firm are in conformity with their business principles and corporate ethics. The firm has great

variety of professionals who have enabled this firm to earn the repute that it is enjoying now

days. It still has room for improvement and the steps to improving in the industry are quite

simple and need dedication on behalf of partners and employees.I would like to thank Javed

Sarfraz & Co. (Chartered Accountants) firm Staff and fellow interns especially my Internship

supervisor Mr. Ansir Mehmood (Manager), and Mr. Ejaz Ali (Assisstant auditor) and everyone

at the firm who made these last six weeks of internship, an ultimate learning experience for me.

References


Saeed, Prof. Dr. Khawaja Amjad (1993), Auditing: Principles and Procedures, Lahore:

Institute of Business Management.

Jhonson, G., whittington, R. and Scholes, K. (2009), Exploring corporate stratrgy with

MyStrategyLab, Financial Times/Printice Hall.

Kotler, P., Keller, K.L., Brady, M., Goodman, M., and Hansen, T. (2009), Marketing

Management, Pearson Education.

Aguiler F.J. (1967), Scanning the Business Enviornment, Macmillan.

The Official Website of SECP

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chartered accountancy

chartered accountants

chartered accountants9

internship reportjaved

outside pakistan

sale tax returns

income tax returns

reckitt benckiser pakistan