CHAPTER IINTRODUCTION
1.1 Background According to Law Number 20 of 2003 the function
of national education is to develop the ability and also to
increase the quality of life and the dignity of Indonesian people
in relation to realization of the national objectives. Accordingly,
the educational program of Faculty of the Economics and Business of
the University of Brawijaya constructed International Undergraduate
Program in Accounting which aimed to produce graduate who ;1. Have
high competency in accounting and basic skils in research to
develop accounting field2. Are able to implement accounting
knowledge in the practice of accounting profession field and in
providing service toward society3. Are able to behave
professionally, ethically, and religiously One of the courses that
should be taken to reach the objective is internship. Internship is
compulsory subject for all Undergraduate Students of Accounting
Department. The course requires students to do internship in a
company or institution that is suitable with the specific field of
study. In the end of this subject, students must make a report
about their activities. Since there are huge differences between in
class learning and site work learning, thus students will have many
difficulties whenever they graduate from university without
experience in working. Therefore students must join the internship
program. Internship program is really helpful for students to give
some basic introduction for working experience in their future. It
also gives students ability to enhance their communication and
teamwork skill. The internship must be done in a CPA Big Four. I
choose Osman Bing Satrio and Eny (Deloitte Touche Tohmatsu Limited
Inc, Indonesia) as my internship field.1.2 Objective The objective
of the internship program is to improve students understanding on
the chosen disciplines through additional knowledge, skills, and
socialization ability. 1.3 Significancea) For Student Enhancing
intellectual and emotional maturity Applying the theoretical
knowledge obtained from the educational program in variety of real
cases faced in the business world and the work environment Sharing
knowledge between students and professional employees such as learn
about PSAK, audit procedure, accounting and also can be corporation
as a team.
b) For Osman Bing Satrio and Eny (Deloitte Touche Tohmatsu
Limited) Efficiency of Human resources, as we know that CPA Big
Four like Deloitte Indonesia needed so many professional employees
to achieve their deadline target especially on peak season.c) For
Economics and Business Faculty Expanding network of CPA Improving
the relevance of the existing curriculum of International Program
in Accounting Department with the business world and the
fieldwork.
CHAPTER IIINTERNSHIP ACTIVITY (1) The author has an opportunity
to conduct the internship in Deloitte Touche Tohmatsu Limited
especially at Japanese Service Group (JSG). The internship period
runs for five months, starting from December 2014 until April 2015.
Since this report is written in the middle of the internship
period, it might not be able to capture the whole internship
experience that I would have obtained in the firm. However, this
report is expected to capture the most important aspects of my
internship so far.2.1 Company Profile Deloitte Touche Tohmatsu LTD
(DTTL) is a world-wide network of professional firm that provides a
wide range of financial service to client companies, including
audit, tax consulting, and financial advisory. Deloitte South East
Asia is a member firm of DTTL which operates in 12
countries/territories in Southeast Asia, and Deloitte Indonesia is
a branch of Deloitte South East Asia.Deloitte Indonesia is
represented by: Osman Bing Satrio & Eny (Registered Public
Accountant) Deloitte Tax Solutions Tax PT Deloitte Konsultan
Indonesia Financial Advisory and Enterprise Risk Services Osman
Bing Satrio & Eny is one of the divisions of Deloitte Indonesia
which specializes in audit and assurance services. As an accounting
student, Author have internship with the audit division of the
firm. Throughout this report, the firm will refer to Osman Bing
Satrio & Eny, the particular audit division of the Deloitte
Indonesia. The firm is divided into several large groups that
specialize in audit with respect to the industry of their clients,
such as consumer business and transportation, Japanese services
group, financial services industries, manufacturing, and energy
companies. The client companies of the firm include big companies
that consist of both public and private companies in Indonesia. As
a professional accounting firm, the company ensures that its staff
have appropriate competence that are required in giving quality
services. Thus, the company provides regular trainings for all of
its staff in all level to ensure that their skills, both technical
and organizational, are improving. Prior to my involvement in an
engagement team, Author also given a one-week training as
preparation before going to the client. During the author
internship period in the firm, Author placed in the Japanese
services group of the audit division of the firm. This group
specializes in giving audit services to clients that are mostly an
affiliate of Japanese companies.
2.2 Planning Internship Activity The Authors schedule is already
prepared by secretary group. Every person who want to know he or
she schedule is available on staff trak, is like internal services
from Deloitte Touche Tohmatsu Services, Inc. it self to scheduling
every employee. The authors schedule as below Picture 2.1 Author
Schedule
As we know that Author starting the period of internship since
1st December 2014 until 30th April 2015 based on agreement, but the
author starting conduct the Audit process on January 12nd 2014
because Deloitte Touche Tohmatsu Limited has a required that new
hire employee must finished the e-learning process and new hire
training. All those activity starting on 2nd December until 30th
December 2014 .
Picture 2.2 E-Learning History
For New Hire Training conducting on December 15th until 26th
2014. Detailed activity on training new hire as below
2.3 Schedule for New Hire Training
CHAPTER IIIINTERNSHIP ACTIVITY (2)
3.1 PT. TOYO INK INDONESIA PT Toyo Ink Indonesia placed at
Greenland International Industrial Center (GIIC), Block AB No.03.
Desa Nagasari, Serang, Bekasi 17330, Indonesia Phone Number
62-21-5055-4680 Fax: 62-21-5055-4679. The company background or
profile you can access in here www.toyoinkgroup.com The job desk of
author is must documentation five account here, a. Account
Payableb. Accrued Expensec. Tax Payabled. Prepaid Taxe.
Confirmation Control3.1.1 Account Payable (AP) A liability to a
creditor, carried on open account, usually for purchases of goods
and services. When a company orders and receives goods (or
services) in advance of paying for them, we say that the company is
purchasing the goodson accountoron credit. The supplier (or vendor)
of the goods on credit is also referred to as a creditor. If the
company receiving the goods does not sign a promissory note, the
vendor's bill or invoice will be recorded by the company in its
liability account Accounts Payable (or Trade Payables). In auditing
accounts payable and other liabilities, it is important for the
auditors to remember that an understatement of liabilities will
exaggerate the financial strength of a company in the same way as
an overstatement of assets. Therefore, the auditors' substantive
procedures primarily focus on the objective of determining the
completeness of recorded amounts. A number of these procedures
involve inspecting documents related to transactions occurring
during the subsequent period to determine whether these items
should have been recorded as liabilities at year-end. The audit
procedures of Account Payable are; First and must is conducting the
confirmation procedure, usually auditor making a request letter to
vendor about the total amount payable of client. After that the
auditor can make a confirmation control (its related with
confirmation control section) confirmation here is comparing amount
total of client recorded and amount of confirmation from vendor.
Request listing Account Payable which is still outstanding on audit
period. Some company usually divided the listing into two or more
categorize. Such as Account Payable affiliated party, Account
Payable Others, Account Payable Trading and etc. Make a testing
(Auditor Testing) its mean that auditor should recalculate again
the total amount of payable and then make a control for every
recalculation or compare with client recalculation Do a tie up
balance for every listing. Tie up balance in here has a meaning
that auditor must comparing the amount of recalculation listing
with amount of account payable on Trial Balance (TB) Make a Pivot
of Account Payable listing, the purpose of this procedure is to
make easier knowing the amount of payable for each vendor. Also
make a recalculation of term payment from listing AP the purpose is
to know the AP outstanding and AP expired or not yet Make an Aging
Schedule the purpose of this procedure is can help the auditor to
know their already paying their payable or not. If there is the
payable over due date (expired date) its can be the company cant
managing their cash flow very well. Open Invoice and Debit Side
procedures, the purpose of procedure is make sure all the AP
transaction which is still outstanding until the audit period. Open
invoice procedure starting with request all the invoice usually
including with BL ( Bill of Date). The purpose of debit side is
make sure all payment to vendor its really happened. Usually
auditor must request the vendors bank statement. After that the
auditor must checking the completeness and accuracy of their
transactions. Make an overall analytical about increasing and
decreasing every element of payable and explain how those
happened.
3.1.2 Accrued Expense The nature of account from accrued
expenses is represent obligations payable for services received
before the balance sheet date that will be paid in the subsequent
period. Examples include accrued warranty liabilities, accrued
payroll, and accrued pension liabilities. The substantive
procedures to audit these liabilities generally include inspection
of documents, recomputation, and analytical procedures. The
transaction of accrued expense in every company absolutely
different, since these transactions depend on they needed. The
procedure audit of Accrued Expenses are ; Request for their accrued
expenses listing and then the auditor must comparing with TB
amount, request the detailed information about accrued (auditor
must know how the accrued expenses recorded, auditor must asking
about nature of account for every transactions and auditor must
know the basic of transaction of their accrued expense) Make an
overall analytical about increasing and decreasing every element of
accrued expense and explain how those happened.
3.1.3 Tax Payable a) Tax Art 21 Tax Art 21 is tax on income in
the form of salaries, wages, honoraria, allowances, and other
payments received or accrued by an individual taxpayer in the
country in connection with a job or position, services, and
activities. The audit procedure of tax art 21 are : Requesting all
document SSPCP (Surat Setor Pabean Cukai Pajak) documentation all
amount such as gross income, and taxable income Auditor also should
documentation the payment date and report date. It can be shown at
Bukti Penereiman Surat. Make tie up balance procedure, comparing
between listing amount and TB amount After that auditor must
conducting the tie up DPP (Dasar Pengenaan Pajak) usually its
depend on tax payable transaction. Usually for tax art 21 the tie
up expense contribute with expense item such as COGS and OPEX Make
a threshold calculation the purpose of these procedure is to known
the materiality amount of tax art 21. For test of detail (TOD) it
depend on company policy (some company usually cant give the detail
about their employee salary, if there is company want to give
detailed information about it usually their deleted some personal
information such as name of employee and position) Chose sample
using MUS (Materiality Sampling Unit) and then auditor can be
documentation for test of detail about tax art 21. Auditor can
compare between the client recalculation and auditor recalculation.
Make an overall analytical about increasing and decreasing every
element of Tax art 21 and explain how those happened.
b) Tax Art 23 Tax Art 23 is the tax levied on income derived
from capital, delivery services, or prizes and awards, other than
those already levied tax of Art 21. The audit procedure of tax art
23 are ; Requesting all document SSPCP (Surat Setor Pabean Cukai
Pajak) documentation all amount such as gross income, and taxable
income Auditor also should documentation the payment date and
report date. It can be shown at Bukti Penereiman Surat. Make tie up
balance procedure, comparing between listing amount and TB amount
Make an overall analytical about increasing and decreasing every
element of Tax art 23 and explain how those happened.
c) Tax Art 25 Individual Income Tax Article 25 (PPh Pasal 25) is
a type of income tax that is paid monthly in a form of
installments. The purpose of this tax is to lighten the tax burden
of Taxpayers, remembering the tax owed must be settled within one
year. The payment must be settled by the taxpayers themselves, and
cannot be represented by anyone else.The audit procedure of tax art
25 are ; Requesting all document SSPCP (Surat Setor Pabean Cukai
Pajak) documentation all amount such as gross income, and taxable
income Auditor also should documentation the payment date and
report date. It can be shown at Bukti Penereiman Surat. Make tie up
balance procedure, comparing between listing amount and TB amount
After that auditor must conducting the tie up DPP (Dasar Pengenaan
Pajak) usually its depend on tax payable transaction. Make an
overall analytical about increasing and decreasing every element of
Tax art 25 individual and explain how those happened.
d) Tax Art 26 Income Tax Article 26 is imposed from Pengahsilan
tax income derived from Indonesia received or accrued by the
taxpayer (WP) in addition to foreign permanent establishment (PE)
in Indonesia. Requesting all document SSPCP (Surat Setor Pabean
Cukai Pajak) documentation all amount such as gross income, and
taxable income Auditor also should documentation the payment date
and report date. It can be shown at Bukti Penereiman Surat. Make
tie up balance procedure, comparing between listing amount and TB
amount After that auditor must conducting the tie up DPP (Dasar
Pengenaan Pajak) usually its depend on tax payable transaction.
Make an overall analytical about increasing and decreasing every
element of Tax art 26 and explain how those happened.
e) Tax Art 4(2) Requesting all document SSPCP (Surat Setor
Pabean Cukai Pajak) documentation all amount such as gross income,
and taxable income Auditor also should documentation the payment
date and report date. It can be shown at Bukti Penereiman Surat.
Make tie up balance procedure, comparing between listing amount and
TB amount After that auditor must conducting the tie up DPP (Dasar
Pengenaan Pajak) usually its depend on tax payable transaction.
Make an overall analytical about increasing and decreasing every
element of Tax art 4(2) and explain how those happened.
3.1.4 Prepaid Taxa) VAT (Value Added Tax) Avalue-added tax(VAT)
or alsogoods and services tax (GST)is a form ofconsumption tax.
From the perspective of the buyer, it is a tax on the purchase
price. From that of the seller, it is a tax only on thevalue
addedto a product, material, or service, from an accounting point
of view, by this stage of its manufacture or distribution. The
manufacturer remits to the government the difference between these
two amounts, and retains the rest for themselves to offset the
taxes they had previously paid on the inputs. The purpose of VAT is
to generate tax revenues to the government similar to the corporate
income tax or the personal income tax. The value added to a product
by or with a business is the sale price charged to its customer,
minus the cost of materials and other taxable inputs. A VAT is like
asales taxin that ultimately only the end consumer is taxed. It
differs from the sales tax in that, with the latter, the tax is
collected and remitted to the government only once, at the point of
purchase by the end consumer. With the VAT, collections,
remittances to the government, and credits for taxes already paid
occur each time a business in the supply chain purchases products.
The audit procedures of VAT are; Requesting all document SSPCP
(Surat Setor Pabean Cukai Pajak) documentation all amount such as
gross income, and taxable income Auditor also should documentation
the payment date and report date. It can be shown at Bukti
Penereiman Surat. Make tie up balance procedure, comparing between
listing amount and TB amount After that auditor must conducting the
tie up DPP (Dasar Pengenaan Pajak) usually its depend on tax
payable transaction. Usually for tax art VAT the tie up expense
contribute with sales transactions. Make a threshold calculation
the purpose of these procedure is to known the materiality amount
of VAT. Make an overall analytical about increasing and decreasing
every element of VAT and explain how those happened.
b) Tax Art 22 Tax Income Tax Article 22 is collected byi.
Treasurers Central Government / Local Government, government
institutions and other state institutions, with regard to payment
for goods delivered;ii. Certain agencies, both governmental and
private agencies with respect to activities in the field of import
or other business activities. The object of collectors & Tax
Article 221. Foreign Exchange Bank and the Directorate General of
Customs and Excise (Excise), of the imported goods;2. Directorate
General of Budget (DJA), Treasurer of the Central Government /
Local Government make a payment for goods purchased;3. Enterprises
who make purchases of goods with funds sourced from state spending
(APBN) and / or shopping areas (budget);4. Bank Indonesia (BI),
Bank Restructuring Agency (IBRA), National Logistics Agency
(Bulog), PT. Telekomunikasi Indonesia (Telkom), PT. State
Electricity Company (PLN), PT. Garuda Indonesia, Indosat, PT.
Krakatau Steel, Pertamina and state-owned banks who make purchases
of goods funded either from the state budget and from non state
budget.5. Cement, white cigarette industry, paper industry, steel
industry and automotive industry, which is appointed by the Head of
the Tax Office, the sale of their products in the country.6.
Pertamina and other business entities which are engaged in fuel
type pertamax, pertamax plus and gas, the sale of their products.7.
Manufacture and exporter of forestry, plantation, agriculture, and
fisheries, which is appointed by the Head of the Tax Office, to
purchase materials for industrial purposes or export them from
middlemen. In that case PT Toyo Ink Indonesia suitable with import
transaction (the bold one) so the audit procedure of Tax art 22 are
; Requesting all document SSPCP (Surat Setor Pabean Cukai Pajak)
documentation all amount such as gross income, and taxable income
Auditor also should documentation the payment date and report date.
It can be shown at Bukti Penereiman Surat. Make tie up balance
procedure, comparing between listing amount and TB amount After
that auditor must conducting the tie up DPP (Dasar Pengenaan Pajak)
usually its depend on tax payable transaction. Usually for tax art
Tax Art 22 the tie up expense contributed with import transactions.
Make an overall analytical about increasing and decreasing every
element of Tax art 22 and explain how those happened.
3.1.5 Confirmation Control Confirmation control in here is a
summarized of overall confirmation all accounts such as account
payable, account receivable, sales, purchase, shares, paid in
capital, actuary and etc. The auditor must documentation all
replied even though the confirmation is negative. The audit
procedure of confirmation control are ; Make a confirmation control
format, documentation all element of those format such as
confirmation amount, per book amount, send date, receive date, and
the further explanation about every confirmation if needed. If
there is negative confirmation, auditor should make alternative
procedure. Alternative procedure is comparing the supporting
document of related transactions with client recorded. And based on
that procedure auditor already conduct the completeness and
accuracy procedure of auditing process.
3.2 PT AICA INDONESIA PT. AICA INDONESIA placed at Jl. Ir. H.
Juanda 318 Bekasi 17113, Indonesia. Phone number +62-815 1434 4941
Fax +62-21 880 2807. The company background or profile you can
access at www.aica.co.id. The job desk of author is must
documentation ten account here, a) Test Journal Entriesb) Prepaid
Expensec) Advance Paymentd) Other Assetse) Accrued Expensef)
Equityg) Operating Expense (OPEX)h) Net Operating Income and Net
Operating Expensei) Test of Detail Factory Overhead j) Confirmation
Control
3.2.1 Test Journal Entries (TJE) Given the ability of journal
entries to efficie ntly undermine a financial statement audit,
journal entry testing has become a requirement for external
auditors. Proactive audit committees and internal audit departments
can also benefit from the guidance provided in GAAS. Statement of
Auditing Standard (SAS) no. 99,Consideration of Fraud in a
Financial Statement Audit,states the auditor should design
procedures to test the appropriateness of journal entries recorded
in the general ledger and other adjustments. More specifically, SAS
no. 99 requires the auditor, in all audits, to (a) obtain an
understanding of the entitys financial reporting process and
controls over journal entries and other adjustments; (b) identify
and select journal entries and other adjustments for testing; (c)
determine the timing of the testing; and (d) inquire of individuals
involved in the financial reporting process about inappropriate or
unusual activity relating to the processing of journal entries or
other adjustments. The audit procedure are; Documentation of
financial reporting process related to journal entries and other
adjustments Inquiry of management Identified risk Test of control
activities related to initiating, recording, and processing journal
entries entered in the general ledger Test of control activities
related to recurring and nonrecurring entries recorded directly to
financial statements Deficiencies in internal control Update of
conclusions at period end for test of control activities performed
at interim dates. Note: Since there is restricted related to
company policy about the procedure this transaction so author cant
explain further. 3.2.2 Prepaid Expense A prepaid expense is an
expenditure paid for in one accounting period, but for which the
underlying asset will not be consumed until a future period. When
the asset is eventually consumed, it is charged to expense. If
consumed over multiple periods, there may be a series of
corresponding charges to expense.The audit procedure of prepaid
expense are; Request listing related to prepaid such as insurance
for vehicle, insurance for factory, insurance mess rent, and etc.
Tie up beginning balance and ending balance, comparing the total
amount of beginning and ending with TB amount Auditor should
recalculate again prepaid expenses with amortization and prepaid
outstanding until audit period. Test of total expense, test of
total in here means that auditor should investigate the total of
listing comparing with the total of clients general ledger. Make a
threshold calculation to known the materiality of prepaid expense
After auditor recalculate all that above auditor must doing sum
insured procedure. The purpose of this procedure is to ensure the
sum insured already covered enough to Company's assets. Make an
overall analytical about increasing and decreasing every element of
prepaid expense and explain how those happened.3.2.3 Advance
Payment Any type of payment that is made ahead of its normal
schedule, such as ; paying for a good or service before buyer
actually receive the good or service. Advance payments are
sometimes required by sellers as protection against non-payment.
The audit procedure of advance payment are ; Request advance
payment listing to client, after that make a tie up balance between
the amount of listing and TB amount After that auditor should
conduct the test of detail procedure (TOD) its mean that auditor
must investigate the transaction of advance payment. Checking
whether the clients term of payment different with agreement or
whether there is transaction cant categorize as advance payment.
Investigate also when the good arrived at warehouse (usually if the
good arrived during the audit period it cant be classified as
advance) Make an overall analytical about increasing and decreasing
every element of advance payment and explain how those
happened.
3.2.4 Other Asset Other assetsare a grouping ofaccountsthat are
listed as a separate line item in theassetssection of thebalance
sheet, and which contain minor assets that do not naturally fit
into any of the main asset categories. Other assets usually long
term assets other asset also cant classifie as investments,
property, plant, equipment, or intangible assets. The audit
procedure of other asset are ;
In this case the other asset of company are application program
like oracle system, employee loan, and office supply ( it can be
depend on every company how they are categorize their other asset
transactions) Request listing of other asset item make a
recalculation again to make sure the companys recorded Conduct tie
up balance beginning and ending procedure Since the auditor must
investigate further on companys other asset so auditor also
documentation the agreement of application system (oracle) when the
company get the annual maintenance, when the schedule of
implementation system, and etc. Make an overall analytical about
increasing and decreasing every element of other assets and explain
how those happened.
3.2.5 Accrued Expense The nature of account from accrued
expenses is represent obligations payable for services received
before the balance sheet date that will be paid in the subsequent
period. Examples include accrued warranty liabilities, accrued
payroll, and accrued pension liabilities. The substantive
procedures to audit these liabilities generally include inspection
of documents, recomputation, and analytical procedures. The
transaction of accrued expense in every company absolutely
different, since these transactions depend on they needed. The
procedure audit of Accrued Expenses are ;- Request listing for
their accrued expenses and then the auditor must comparing with TB
amount, request the detailed information about accrued (auditor
must know how the accrued expenses recorded, auditor must asking
about nature of account for every transactions and auditor must
know the basic of transaction of their accrued expense) Make an
overall analytical about increasing and decreasing every element of
accrued expense and explain how those happened.3.2.6 Equity Equity
is the value of an ownership interest in property, including
shareholders' equity in a business. Equity or shareholders equity
is part of the total capital of a business. Audit procedures of
equity are ; Inquiry with management about stock issued on audit
period Documentation of Retained Earnings movement Inquiry with
management about the board of management if any changes the board
management member auditor should investigation the supporting
document such as notarial deed or legal reporting of annual meeting
Auditor also requesting the rule of dividend payment. When the
dividend paid, how the disbursement, how many the percentage of
every related parties Summarize the movement of capital stock,
other comprehensive income, retained earnings and total equity
between previous year and current year Make an overall analytical
about increasing and decreasing every element of equity and explain
how those happened.
3.2.7 Operating Expenses (OPEX) Anoperating expense,operating
expenditure,operational expense,operational expenditureorOPEXis an
ongoing cost for running a product,business, or system. Its
counterpart, acapital expenditure(CAPEX), is the cost of developing
or providing non-consumable parts for the product or system.The
audit procedures of OPEX are ; Analyze the item of OPEX and then
separate between test of detail (TOD) or test of total (TOT).
Usually auditor can recognized every item with TOD or TOT is based
on company environment and company recorded. And also the auditor
team should discuss about that. Make a summary of total amount
about TOD total and TOT total. Make a sample size calculation, and
then auditor choose sample using monetary unit sampling (MUS).
After that auditor conducted TOD based on picked sample by MUS. TOD
in here must test the accuracy of every sample transaction and
completeness of the document. TOD also investigated whether the
transaction already vouched to original commercial invoice,
delivery order, or another supporting document. Make sure the
calculation is verified such as the foreign exchange rate already
accordance with the company policy. Check whether payment voucher
already approved by manager or senior accounting. Check the amount
of supporting document agreed with ledger or not and whether the
expense already recorded on proper period or not. And the last
investigated about the amount in recorded already agree with
invoice or not. Auditor also must conduct the TOD procedure on
early and lately cut off OPEX. Using MUS again to pick a sample
after that doing TOD procedure such as TOD OPEX before. Make an
overall analytical about increasing and decreasing every element of
operating expense and explain how those happened.
3.2.8 Other Income and Other Expense Other income is means that
for a company that comes from anything other than its ordinary
operations. Other income includes items such as interest from the
company's bank accounts, profit from the sale of a fixed asset,
foreign exchange and so forth. Other income is not recurring and,
as a result, is not included in some calculations of profit or
loss. Other Expense expenses or losses not related to primary
business operations, such as foreign exchange. The audit procedures
both are; Request listing of both transaction (income and expense
other) conduct tie up procedure comparing amount of listing and TB
amount Conducting audit procedure test of detail (TOD), for pick
sample auditor using monetary unit sampling (MUS) after that doing
TOD as usual. Investigated whether the transaction already vouched
to original commercial invoice, delivery order, or another
supporting document. Make sure the calculation is verified such as
the foreign exchange rate already accordance with the company
policy. Check whether payment voucher already approved by manager
or senior accounting. Check the amount of supporting document
agreed with ledger or not and whether the expense already recorded
on proper period or not. And the last investigated about the amount
in recorded already agree with invoice or not. Make an overall
analytical about increasing and decreasing every element of other
income and expense also explain how those happened.3.2.9 Test of
Detail Factory Overhead (TOD FOH) Factory Overhead is the total
cost involved in operating all production facilities of
amanufacturing business. It generally applies to indirect labor and
indirect cost, it also includes all costs involved in manufacturing
with the exception of the cost of raw materials anddirect labor.
Factoryoverheadalso includes certain costs such asquality
assurancecosts, cleanup costs, and propertyinsurance premiums. The
audit procedures of TOD FOH are; Analyze the overall item at cost
of goods sold and then pick the item which is need to conducting
further of TOD. After that conduct the tie up balance comparing
between total amounts of TOD with the TB amount. Make a sample size
calculation Pick sample with monetary unit sampling (MUS) after
that auditor can conduct TOD procedure. Investigated whether the
transaction already vouched to original commercial invoice,
delivery order, or another supporting document. Make sure the
calculation is verified such as the foreign exchange rate already
accordance with the company policy. Check whether payment voucher
already approved by manager or senior accounting. Check the amount
of supporting document agreed with ledger or not and whether the
expense already recorded on proper period or not. And the last
investigated about the amount in recorded already agree with
invoice or not. Make an overall analytical about increasing and
decreasing every element of TOD FOH also explained how those
happened.
3.2.10 Confirmation Control Confirmation control in here is a
summarized of overall confirmation all accounts such as account
payable, account receivable, sales, purchase, shares, paid in
capital, actuary and etc. The auditor must documentation all
replied even though the confirmation is negative. The audit
procedure of confirmation control are ; Make a confirmation control
format, documentation all element of those format such as
confirmation amount, per book amount, send date, receive date, and
the further explanation about every confirmation if needed. If
there is negative confirmation, auditor should make alternative
procedure. Alternative procedure is comparing the supporting
document of related transactions with client recorded. And based on
that procedure auditor already conduct the completeness and
accuracy procedure of auditing process.
CHAPTER IVCONCLUSION AND SUGGESTION
4.1 Conclusion The internship period runs for five months,
starting from December 2014 until April 2015. Since this report is
written in the middle of the internship period, it might not be
able to capture the whole internship experience that author would
have obtained in the firm. However, this report is expected to
capture the most important aspects of my internship so far. As a
trainee, author responsibilities and functions are similar with
those of Associate I. The difference between the two is that
Trainee position is for staff that has not graduated yet, while
Associate I are staff that has graduated with a minimum of Bachelor
degree. The responsibility given to author during the internship is
to assist the other engagement team members in performing audit
procedures in the audit of the firms client. The audit procedures
are being done to give assurance that companys financial statement
is free from material misstatement. The overall responsibility
given to the author as an audit trainee is being a part of an audit
team that involves in a project of audit service for a client
company of the firm. So far, I have been involved in two audit
engagements from which Author have learned new knowledge, as well
as technical and organizational skills. Through this report, author
would like to share some of my valuable experiences from the
internship. During the two months of interning, author found that
the jobs and tasks given to author are quite the realization of
what author learned in the university. Experiencing first-hand the
work in the field of author study is a very valuable opportunity
for author since it would be able to prepared to work after
graduating from the university. While there are challenges that
author have to overcome during work. This internship also teaches
author a lot of new things that author would never have obtained in
the university. This internship has allowed author to improve skill
as student and prepared author to build author future career as in
accounting field.4.2 Suggestion4.2.1 Students who want to have
internship experience at CPA big Four especially at Deloitte Touche
Tohmatsu Limited Inc, Must know about financial accounting well,
auditing theory and auditing practice. Be able to operating the
Microsoft office especially excel program4.2.2 For Deloitte Touche
Tohmatsu Limited Inc, Author opinion about this company is so far
so good. About their corporation between partner, manager,
assistant manager, senior, and associate until trainee. The
comfortable of work field also nice. Engagement audit team feel
like brotherhood and sisterhood. Management time about our deadline
can handle well even though the deadline pressure very high but it
doesnt matter as well as the team can be collaboration and can be
professional team.
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