Académique Documents
Professionnel Documents
Culture Documents
Declaration 3
Acknowledgements 4
Executive summary 5
Chapter 1: Introduction
1.1 Introduction 7
Chapter 2: My Experiences
4.1 Conclusions 27
4.2 Recommendations 27
References 30
Appendices 31
I have compiled this report with the help of my weekly progress report, the Kisaka Human
Resource Manual & the Kisaka Assistants’ Audit Manual with some recommendations from the
staff of Kisaka as indicated there in.
I hope that the findings and recommendations in this report shall be used by all stakeholders to
enhance effectiveness of the field attachment programme.
KAMUGISHA VICTOR
BCOM III
I start by thanking the Almighty God for the gift of life, He kept me well & in good health, He
provided for me financially & also for the favor He clothed me with while at Kisaka. Glory be to His
name.
I also acknowledge the unwitting contributions of the entire staff at Kisaka. First to the Partner –
Jobra Mulumba for having given me an opportunity to take on my internship in such a great firm,
Richard the Manager who was responsible for my supervision also played a very big role that can’t
go un-noticed. The Audit Supervisors Rhoda and Gertrude were indeed empathetic & encouraging,
the audit seniors especially Edmund who always gave me an opportunity to work on his team &
also the rest of the auditors including Julius, Carol, Evelyn, Edna, Simon, Mark, Richard, and Kelvin.
May the good Lord bless them for all their efforts.
Finally I also wish to extend my thanks to the University for having introduced the internship
programme to enable us have a hands on experience of the accountancy profession & specifically
to Mr. Anthony Tibaingana for organizing us well i.e. at the College of Business & Management
Science.
On the other hand, there in contains no major challenges except for the little information about
auditing which affected me very much especially at the initial stages of the internship.
Otherwise, as explained in the report, the internship period was a great deal of experience,
learning, & a success to me.
The field report basically covers whatever has transpired in the time I have been at Kisaka
& Company CPA for my internship programme from June 6th to August 26th, 2011. The
report includes detailed information about Kisaka & Company CPA; lessons learnt &
accrued benefits, experiences & more importantly relatedness of the University’s taught
programmes to the field of work. There in contains also the challenges faced, how they
have been overcome & also entails some recommendations to the University & future field
attachment students specifically those who will have their internship programme at Kisaka
& Company CPA since that has been my principal area of training.
By definition, “field attachment” is the field based practical work carried out by staff and
students for the purpose of teaching and /or research in places outside the university
control but where the University is responsible for the necessary safety of its staff,
students and others exposed to their activities.
The major intention of field attachment is to enable me as a student to experience the real
life of work and therefore help me to relate the academic programmes I have studied to an
actual work setting, and thus appreciate their applicability.
To enable me get a hands-on experience, real-life situation which I expect & desire
to work in after my graduation.
To enhance & strengthen linkages between Makerere University & various stake
holders.
1.4 Back ground of the organization of field attachment – Kisaka & Company, CPA.
Kisaka & Company, CPA was set up by two partners Kisaku Mulumba Jobra and Robert
Katuntu during 1999 with Jobra as the full time partner in charge of the day-to-day affairs
of the firm. Both the partners trained and qualified as professional accountants whilst at
Price Water house before it merged with Coopers and Lybrand.
The firm has grown rapidly because of its relentless commitment to quality and its desire
to offer Ugandan businesses quality but affordable professional financial services.
The firm is also aiming at being the biggest local firm comprising of competent Ugandans
that can match the competition of the international firms.
In order to achieve the above vision, the firm recruits and retains intelligent staff who
seem to be in line with the firm’s vision & have gained the requisite knowledge &
experience commensurate to the needs of the firm.
Organizational Values
Independence i.e. taking care not to associate with client representatives in any
way that might raise doubts in the minds of others to their independence.
Assurance; knowledge & courtesy of employees & the firm’s ability to convey trust
& confidence to clients.
Empathy; the firm aims to deliver a product that will prompt or result into a
repeated or retain customer.
Beliefs & practices which members cherish & define & give identity to the organization
Professionalism
All members are required to have professional qualifications i.e. CPA or ACCA plus
others related to the accounting field. In fact there is a policy of employee
sponsorship for these courses upon agreement on special terms & conditions with
the partner. It is still for this same reason that every Friday from 4 – 6 pm the
Courtesy
The members are encouraged to relate politely with the clients, honor them, show
respect and even make compliments where need be.
Integrity
While at Kisaka & company, CPA; I realized a lot of moral uprightness, honesty &
sincerity among the members. In fact if any one’s behavior causes doubt in respect
to this area, then according to the Kisaka manual they might have to be terminated.
Smartness
At Kisaka & Company, CPA; all members put on smart & descent business wear
while working in the office or at a client’s place. In fact all the gents are always in
ties while the ladies are also very smart & so descent.
PROFESSIONAL STAFF
Partners
Managers
The position of a Supervisor is a stepping stone to managerial position. This stepping stone
is a promotion earned on merit and only those who are considered to have supervisory
responsibilities will be promoted to it. Usually each assignment is staffed by an audit team
comprising a Senior in charge and Assistants. The Supervisor’s role would be to supervise &
guide the Senior in charge on technical and job control aspects of the assignment.
Seniors
These work closely with Supervisors, Managers and Partners. Seniors direct the day to day
execution of their assignments. They usually work on one assignment at a time and are
directly responsible to the Manager or Assistant Manager. They also supervise the work of
Assistants, thus assuming a key role in the firm’s on-the-job training programme. Seniors
must have sufficient knowledge of tax accounting & general business matters to make
constructive suggestions regarding clients’ affairs.
Assistants
The Assistant’s level provides staff joining the firm with an introduction to basic
procedures and gives them the opportunity to appreciate the need to display skill,
judgment & initiative. It is the proper demonstration of these factors which ensures the
quality of work. As experience is gained, they handle more complex accounting and
auditing sections of an assignment. They are responsible to the Seniors in charge of the
assignment. After two years Assistants are given an opportunity to handle small and
medium clients to see whether they are fair and have Senior qualities.
ADMINISTRATIVE STAFF
The professional staff are supported by the administrative staff who manage the firm’s
office services and administrative functions are under the supervision of the partners.
Audit & Business Advisory services currently accounts for the majority of the firm’s
chargeable hours. Most audits are carried out in accordance with the International
Standards on auditing applicable to the prevailing circumstances, the requirements of the
companies act, or with donor funding agreements, and are directed principally at the
expression of an opinion on the financial statements of the clients. A wide range of audit
related services are also offered including project audits, special investigations, acquisition
reviews, value for money audits and corporate finance advice.
These aim at providing clients with a wide range of solutions for their business problems &
they include:
Tax services
The firm provides comprehensive tax services covering all aspects of corporate & personal
taxation. These tax services include the preparation and submission of annual tax returns,
tax planning to minimize clients tax expenses, and review of audit working papers to
ensure that accounting provisions are fairly stated.
The company has access to specialists in company receiverships and liquidations who are
able to offer a comprehensive service to those, principally banks, who seek to recover
loans and advances which are secured on companies.
Secretarial services
The company offers statutory secretarial services to a number of clients dealing with the
maintenance of statutory books and the filing of documents and annual returns with the
registrar of companies.
The overall supervision was done by the audit manager who placed me under the
supervision of the audit supervisor. The audit supervisor then placed me under the
supervision of an audit senior in charge of a particular assignment.
I have enjoyed a very good working relationship with all the members at Kisaka both the
professional and administrative staff. The Kisaka family is so welcoming, people are so
concerned about each other & treasure each other in that when you fail to appear at office
people are quick to inquire whether there is something wrong.
Assignment on AMwA;
The overall assessment on AMwA was fairly good. Victor was conversant with analyzing
expenditure items and income – audit supervisor.
Independence i.e. taking care not to associate with client representatives in any
way that might raise doubts in the minds of others to their independence.
Safeguarding of working papers and other documents i.e. being responsible for
safeguarding and keeping under my control all papers in my possession &
keeping all firm’s working papers & records confidential.
Signing of any reports; this is only restricted to the partners. I have also come
to understand never to assume position of being a judge on issues that are
outside the firm’s scope even if am called upon by the Client staff.
Working papers
Audit files
Standard schedules
I have also come to learn that within each component section, there are
standard schedules that serve to summarize the balances and audit issues
arising from audit work on that component. Some of the more commonly used
standard schedules are listed in appendix 4.
Control Schedules
I have also learnt that for those particular tests where the audit programme and
other summary schedules don’t provide adequate explanation of the work
performed, and always where there is a significant matter arising, a control
schedule should be completed. For an example of a control schedule checklist,
refer to appendix 8 while for a control schedule, refer to appendix 9.
While at Kisaka & Company, CPA; I have enjoyed a number of things including the
comfortable working atmosphere, the professional conduct exhibited, the personal touch
placed on me in a number of circumstances but there are 3 major experiences I have
personally enjoyed, i.e.
The morning prayer devotions which are held every Tuesday & Thursday where by all the
auditors come humbly before the presence of God, seek guidance and lift up every one &
every activity to the Lord. This was so good in that every after morning devotion I felt lifted
up & encouraged to step out in wisdom & execute my duties which is not the case in most
organizations.
Field attachment report at Kisaka & Company, CPA Page 21
Continuous Professional Development/Education
The firm provides professional staff with a comprehensive range of formal courses
designed to enhance their understanding of the firm’s approach & methods and their
managerial & interpersonal skills. A timetable is drawn & every member is assigned a
particular subject to present being given ample time for preparation after which he/she
presents on a Friday evening (4 – 6pm) & attending these discussions has created a deep
passion within me for professionalism.
One of the major questions I had in mind while studying was, “Are these things that we
study relevant & applicable to the jobs out there?” I thank God that this question has been
clearly answered during my internship period.
I have actually found out that 90% of the course units we study are indeed relevant &
applicable. The only course unit that I didn’t clearly realize how it was applied in auditing
was the detailed micro & macro theoretical economics we had studied. Otherwise all the
others were evidently being applied.
The principles of preparing financial statements & interpretation of these statements are
the ones as taught in the lecture rooms, after carefully examination of organizations’
Field attachment report at Kisaka & Company, CPA Page 22
human resource manuals, I realized principles that are followed are those expressed in
Organizational Theory, Strategic Management & in Cost & Management Accounting.
When it came to computation of payroll taxes, principles followed where those that were
taught under “Taxation” a course unit taught in 2nd year 1st semester. In fact we were using
the tax act which I had already seen a copy of during class & so it was not strange to me.
During the performance of analytical techniques, we at-times used financial ratios like the
gross profit margin, debtors’ days & creditors’ days whose interpretation was clearly
taught & explained under financial management in 2nd year. This was so helpful in
interpreting the financial position of organizations & greatly useful in provided
recommendations to management.
As an Accountancy Student, I had not seen the relevancy of studying & suffering with
course units of law in my profession. But during the internship period I found out that one
of the major components an auditor must check is COMPLIANCE and the only way this can
be audited is by going through the relevant laws to a particular organization & finding out
whether they really comply with the law. For instance all NGOs we went to had to comply
with the NGO Act & this meant us carefully going through the Act, interpreting the various
sections as well those found in the Companies Act. What helped me most was that I had
this foundation of law from two course units i.e. business law & Company law.
There were times when most members were quite busy with a lot of work at their desk
& because of this couldn’t really get help from them or even inquiring from them when
stuck somewhere.
The way I was able to cope up with this was by summarizing whatever I needed to
ask/inquire in form of documentation & whenever someone could get some space, I
would utilize that opportunity.
Field attachment report at Kisaka & Company, CPA Page 23
The IASs, IFRSs and the Ugandan laws were very many and also not easily interpreted
or understood. For instance I desired so much to really understand IAS 16 about
depreciation but couldn’t get it very well from the IASs.
As for this, some IASs & IFRSs were explained during the CPE & I have at least picked
something while as for the laws of Uganda, I have got more exposure to them during
the external auditing while at the clients’ premises with the help of the seniors on job.
One of the major challenges that I faced especially at the initial stages of the internship
period was the little technical knowledge that I had about auditing since we had not yet
done auditing as a course unit at the University – in fact I didn’t know the major
difference between auditing & accounting.
However, by going through the Assistant’s Audit Manual, I was able to understand the
practical guidance on the aspects of the audit process. I used it as a basis for an
informed discussion with the audit senior as to how a specific task should be
performed.
I have greatly improved my confidence especially when dealing with clients. At the
initial stages of the internship period, I was quite fearful & not free with clients but
since along the way I was asking more questions & interviewing various people, I
now don’t fear anymore any client in fact when interacting with them am really so
bold & keen to find out whether there are any reportable findings I can address.
I have also been exposed to the demands and challenges of the work place for
instance making sure that I get up early so that I reach office by 8:00 am, making
sure that am always smart in special business wear with a well knotted neck tie, &
also learning to work with different people of various categories.
I have also got an opportunity to meet & work with potential employers first at
Kisaka & Company, CPA. I have realized that the environment at Kisaka is a very
conducive environment for learning & gaining experience in the accounting field
because I have been dealing with various organizations with different accounting
policies some with even special accounting systems.
This I would say is the greatest benefit I have derived from the field attachment; I
have come to appreciate the beauty of my profession unlike before. I thought
everyone could do accounting or audit. But from what I have found out, auditing is
so technical & highly scientific. We have our own technical jargon & a special code
of conduct. I love auditing!
From my point of view, I really think that the University adequately prepared us for the
field attachment. We were given enough time to look out for any organization of our
choice which avoided cases of being posted in areas where we wouldn’t be comfortable.
This also improved our confidence in searching for opportunities in various organizations
especially with the letter of recommendation from the University & this gave us a feel of
what it means to look for a job.
The field attachment funds were provided in time which enabled me personally to prepare
in time without panicking.
The University Supervisor was friendly, cool to work with and also took another step of
advising me how better to run through the internship period.
I really believe that the University has done her job in this respect.
3.8. Preparedness of the Agency to receive and manage students for field attachment
Given the nature of audit firms with one major department which could suit the field
attachment students i.e. auditing section and the high level of professionalism required,
the way in is so narrow & it is for this reason that Kisaka as a professional auditing firm may
be ready to give an opportunity to 2 – 3 students for training purposes with prior
notification of the Manager or Partner.
In view of the issues highlighted & discussed in the above chapters, I want to thank the
University for having given us an opportunity to participate in internship programme.
There were also some challenges I faced as I explained in section 3.5 but the major
challenge was the little information I had about auditing especially at the initial stages of
the internship. However, by going through the Assistant’s Audit Manual (AAM), I was able
to understand the practical guidance on the aspects of the audit process.
4.2 Recommendations
To the University
The internship programme should start in the holiday of the first semester second
year & then wound up in second holiday second year (i.e. internship in two phases)
because one internship period is not really enough for someone to grasp whatever
the organization is ready to deliver.
I thought of starting right from the first year but the problem with that would be
that the professional/organizational foundation for such a candidate would not be
so strong to survive in a professional working environment.
Field attachment report at Kisaka & Company, CPA Page 27
The two – three months given in one period are just good enough for general
orientation for instance; personally I was able to only cover half of what I was
meant to cover, in fact I had to enter into the first week of the semester before
really winding up.
These organizations are so ready for us but the problem is that the time is not
enough for us to really consume whatever they have prepared for us. It is because
of this that I didn’t go into the common audit procedures e.g. bank reconciliation,
debtors’ circularization, stock count observation, nominal ledger, account
reconciliation, analytical review tests, inspection of statutory books & records, fixed
assets, intercompany, stocks, supplier statement reconciliation, cut-off tests,
management representation letter, the 7-Step approach, to mention but a few. But
rather instead just concentrated on work around working papers.
In such a case where the internship is broken into two periods i.e. holiday of 1st
semester 2nd year & holiday of 2nd semester 2nd year, there could be a draft report
after the first period, a second report after the second period after which they are
combined into one report.
This will greatly minimize on the number of students who take field attachment for
granted. It is one way some people can really be motivated & pushed to work and
prepare for their future/destiny & with this Makerere University shall be able to
achieve her vision i.e. building for the future.
This really goes to those who would love to join Kisaka & Company, CPA for their
field attachment programme. While at Kisaka & Company, CPA;
Take the internship serious. Know that Kisaka is the best place you can ever have
your internship from. You will learn a lot & see a lot even when you are still young.
When stuck, seek help from someone. He/she doesn’t have to be the Supervisor
but anyone in position to help. At Kisaka, every moment is a learning experience.
Please make sure that you are always smart. Remember that you are an auditor, a
financial inspector & a policeman.
Please always attend the CPEs; you learn a lot from these sessions & at the same
time enjoy them.
In case of any problem, talk to the manager; he is always willing & ready to listen to
you, encourage you & support you.
Try as much as possible to be at peace & friendly with everyone. This will help you
so much in cases where you need help.
Please make sure you don’t miss the morning devotions because they will help you
knit your heart with the rest of the members.
Kisaka aims at being the biggest local firm comprising of competent Ugandans who
can match the competition of the international firms.
Some of the basic values are openness, integrity, smartness & professionalism
At the start, the IASs were very many & complicated to understand as well as the
laws of Uganda. However, for the IASs, more light was thrown during the CPE
sessions as well as the laws of Uganda especially the Companies Act, the Income
Tax Act, the NGO Act and the Accountants Act were I realized & appreciated the
significance of ICPAU.
Review of the audit process i.e. preliminary engagement activities, planning, execution,
review & completion, and reporting – by the Partner.
Objectives of each of the above stages in the audit process – by the Partner.
Points for partner’s attention who places special emphasis on materiality with the help of
‘FACTS’ i.e. Findings, Amounts, Client’s Opinion, Thy Opinion, & Schedule Reference – by
the Partner.
Discussion of some standards especially under review & completion i.e. IAS 220, 230, 520,
560, 570, & 580 – by the Partner.
REFERENCE SECTION
Lead Schedule
O
Component Conclusion
OS1
Summary of component significant errors
OS2
Audit Programme
OS3
Control Weaknesses Summary
OS4
Detailed Planning Documentation
OS5
Final Audit Papers
O 1 - 99
Matters for Partner’s attention Sometimes referred to as “final notes.” These are
summaries of those matters of such importance that a
decision by a Partner or Manager is required. Examples
may include significant unresolved audit points, questions
of accounting principle, uncertainties (including matters of
judgment), and presentation or disclosure points.
Summary of the unadjusted items This is sometimes referred to as the “overs and unders
schedule.” It shows the cumulative effect of all errors
identified, and thereby helps the reviewer to consider their
materiality both individually & collectively in relation to the
financial statements as a whole.
Summary of significant matters Schedule should indicate the correcting double entry
(displayed in the form of a journal adjustment needed to
correct the error), describe the nature of & reasons for the
error, and refer to any supporting schedules.
LEAD SCHEDULE
SALES LEDGER
CONTROL O2 154,032 222 154,254 139,120 15,134 +11
LESS:
BAD DEBT
PROVISION O5 (3,288) (222) (3,510) (2,829) (681) +24
Work performed; this documents the facts that the work carried out was in accordance
with the work programme. If any additional work was required (e.g. because of additional
risk factor whilst performing the work) this should be documented here.
Matters Arising; all significant matters, unadjusted errors and control weaknesses should
be summarized here. Alternatively, significant matters arising may be noted on the face of
the component conclusion schedule.
Conclusion
Here we are concluding on 5 things;
i. The assertions are valid
ii. The balances are fairly stated
iii. They conform with GAAP’s
iv. They are prepared on a consistent basis to last year
v. The systems provide an adequate basis for the preparation of the component
conclusion schedule.
Statutory Accounts
Nominal ledger
Trial Balance
Object of Test
Is it precise?
Is it achievable?
What is the test trying to achieve? (what sort of test is it?)
What could I conclude on the test?
Base Document
Sample Selected
Work Done
Conclusion
Be honest (it is possible to say that the object of Test has not been achieved)
Be brief (“object achieved”)
Put it on the same page as the object of Test (easier to review)
Object of Test
To accumulate audit evidence that additions to property & equipment are genuine
and have been correctly recorded in the fixed assets register.
Base Document
Sample Selected
Work Done
As summarized on J4
Matters Arising
The fork lift track purchased from Germany for Dm 58,000 has been recorded at a
cost of $ 58,000. The acquisition should have recorded at a cost of $ 20,000 (applying the
conversion rate of Dm 2.9 / $ 1). The adjustment has been noted on JS2. No further assets
Conclusion
Object achieved.