As a fourth-year student pursuing a Bachelor of Science in Accountancy degree, I embarked on an internship program provided by Laco Garachico Protacio 8: Co, a Philippine-based audit firm in Lipa City. The first week of my internship at this firm started with a series of meaningful activities. First and foremost, a whole day was dedicated to orientation. As such, the company representative warmly welcomed us and briefly introduced the firm, its people, and the various services it renders to clients. Afterward, we were informed of the company‘s guidelines and subsequently assigned to immediate supervisors. Secondly, my team and I got to experience online mentoring and training from our direct supervisor, which accounted for six hours. Accordingly. appropriate introductions were made, discussions were integrated with relevant concepts, and the tasks were clearly explained before actual enactment.
In keeping with this, our initial tasks involved the summarization and compilation of transactions subject to substantive procedures and the preparation of the BlR form 2316 for the employees of a certain client. Eventually, reviewing the audited financial statements and making appropriate notes and disclosures served as the major tasks for the week. In line with this, the team assisted in preparing documents like cover sheets, the independent auditor’s report, and the statement of management’s responsibility, Overall, we have spent twenty-six hours on the accomplishment of the core and professional tasks, As previously noted, most of the time was spent on performing the assigned core and professional tasks. Together with my team, we gained various lessons that will 5 help us in our future endeavors. For the initial task, the team learned not only the significance of a collaborative and inclusive working environment, but also the relevance of beginning every task with an end in mind to successfully finish and deliver the outputs.
In essence, the main objective for every assignment is to deliver the target output on time without compromising quality. For instance, the primary task, which involved the summarization and compilation of transactions. did not only necessitate teamwork to process several transactions but also required efficient allocation of time and effective delegation of tasks to meet the deadline, which was that same day. Correspondingly, the accomplished task added value to the organization. In panicular, the compiled information helped our direct supervisor and his team effectively conduct substantive testing the next day. Thus, similar to what is being emphasized in audit subjects, we witnessed how the concepts of effectiveness and efficiency play a notable role in carrying out audit procedures. Through the same engagement. the team became knowledgeable about a particular auditing strategy In theory, a full-substantive test is highly recommended for small entities, since they scarcely implement formal internal control procedures.
Yet, it will not always be followed due to voluminous transactions and other inherent limitations Moreover. the current situation also imposes several restrictions on how auditors conduct their tests. Despite all this, it is vital to maintain reasonable assurance throughout the audit process, Hence, our supervisor instilled the importance of due diligence and professional judgment in one of the fundamental processes of auditing, which is searching for source documents, In particular, we were tasked with reviewing the transactions and determining if there were appropriate TIN numbers in the descriptions. Accordingly, the TIN numbers serve as an indication that transactions are supported by appropriate source documents.
As a result, only those without TIN numbers would be subject to substantive tests. Furthermore, these numbers, which prove their utility in tracking tax liabilities, are usually present in BIR forms In school, we have been taught electronic BIR forms and how one can effectively utilize technology to satisfy tax obligations. Yet, many taxpayers still find it burdensome to file such forms and make subsequent payments. Thus, as we prepare BIR form 2316, the importance of maximizing the substituted filing system has been reiterated. As such, employees enjoy the convenience of having their employers file and withhold their taxes. Likewise, the significance of the profession is highlighted as employers heavily rely on the assistance of accountants in processing these tax-related documents and ensuring tax compliance. Lastly, the major task, which involved reviewing the audited financial statements and making appropriate notes and disclosures, is much similar to the practice sets accomplished in our canvas course.
In line with this, the familiarity and experience gained in these course requirements greatly helped us in carrying out the assigned task. In particular, we were trained to obtain an understanding of the client, as to which our supervisor provided much assistance. Upon doing so, we were able to understand the nature of the accounts presented, Likewise, certain verifications were made to ensure that the account titles and their respective classifications suited the nature of the business and transactions of the client. In line with this, the financial statements of both a sole pmprietorship and a corporation were examined, regarding this, the team encountered certain challenges. To be specific, there is inadequate information available for the sole proprietorship, and certain errors require corrections through adjustments. For instance, the client was not able to recognize depreciation expenses for two years, which led to the asset being overstated.
Unlike corporations, sole proprietors do not have a retained earnings account where such overstatements are appropriately accounted for. For this reason, our supervisor directed us to suitably adjust the affected accounts. On the other hand. the financial statements of the client corporation contain complex accounts, which greatly necessitate the presence of supporting documents to help the team understand their nature and appropriate valuationt. In detail, corporations recognize a minimum corporate income tax (MClT) and a net operating loss that may be carried over to three succeeding taxable years. Hence previous reports and calculations are needed to support the current balances. Moreover, as we were presented with a lot of data, professional skepticism and good corroboration of information became vital.
As such, these principles found their application throughout the fulfillment of the tasks Overall, this week’s experience contributed to my growth in three aspects: knowledge, skills, and work ethics. Primarily, additional knowledge was obtained through the mentoring sessions. which mainly involved introductions and exposures to various clients and their respective financial information. Likewise, certain auditing approaches and strategies were imparted, If I handle similar clients in the future, the knowledge and experience gained will certainly aid me in providing services that satisfy their standards. Moreover, witnessing how theories are applied in real-life situations will help me retain significant information that is essential in taking certifications. Besides, it is through these practical engagements that we obtain essential skills. To elaborate, my time management skills, coping skills, and ability to work collaboratively in a team were reinforced.
Finally, my work ethic is enhanced as the engagements require efficiency, effectiveness, and professional skepticism. Additionally, the valuable contribution made to the organization makes the experience more fulfilling. As mentioned, the team was commended for delivering the outputs on time, and it helped the organization efficiently work on a certain engagement. Notably, the principle of maintaining value-added services was greatly manifested in the firmt Furthermore, I highly appreciate the inclusive working environment and the open communication set-up of training interns. With this, I gained the courage to ask questions, request pertinent documents, and ask for follow-ups to ensure the fulfillment of the delegated tasks. Indeed, the valuable skills, strategies, and related principles acquired will effectively guide us in establishing and fortifying our work ethics, competence, and professionalism as we pursue a career in the audit field.
