CHAPTER I

INTRODUCTION

1.0 Industrial Training

1.1

Industrial Training Background

Industrial training is one of the important courses in the curriculum for the
undergraduate program of any courses that is compulsory for all students. For
University Kuala Lumpur the student needs to undergo his or her INTRA
(Industrial Training) normally accumulated during the end of third or fourth
year for 6 months. This course is a graduation requirement for the Bachelor
Degree students.

1.2

Industrial Training Objective

The main objective for student to undergo the Industrial Training is to expose
students with the current practice, problems and challenges of real work and a
source of reference. Besides it provide experience for the students to learn
problem solving technique encountered during work and be able to contribute
valuable idea to the organizations. On the other hand it gives opportunities for
the organization to train and identify the credibility of local university
graduates.

1.3

The details of the practical training information are as follows :

-

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Training Period : June 22nd 2015 to November 30th 2015

1.4

Company : K K Chow & Partners (Chartered Accountant)

Location : 2-7-9 to 2-7-12, 7th Floor Menara KLH Business Centre,

No 2 Jalan Kasipillay, off 2 Miles Jalan Ipoh,
51200 Kuala Lumpur

Department : Audit Department

Supervisor : Mr. William Chan

The benefits of industrial training

The industrial training program brings benefits to the students itself. The benefit not only on
the technical part but it also shapes a positive attitude towards the field of employment option
in the market.
Firstly, it helps to improve communication skill of the students. While performed the
industrial training, it will help the students to improve their English language and also
increased the level of self-confidence of the student when communicate with the clients and
staff in the office. In addition, this program also help student to communicate well with the
society and it help to complete the audit work in proper way.
Furthermore, this industrial training also helps the student expand their knowledge
and help to practice their academic knowledge in the outside world. This means that the
students are able to gain knowledge while working in the firm in term of information
technology (IT) like Microsoft office, accounting software and also the Microsoft Excel. This
is because sometimes I will use the Microsoft Excel in preparing the audit working papers
and draft the annual report so that the audit process will become more effectively and
efficiently. The work will become efficient because the working paper does not need to
manually calculate and by using Microsoft Excel it will automatically calculate by using
formula.

Besides that, industrial training also will help the student to expose themselves in the
real working environment with the real cases or scenario. This will help the students to
produce a quality of work while performing the work. It also increase occupational
networking opportunities for future used.
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Lastly, this program also will foster a good relationship with the university. Every
student will bring not only their name but their University name also. Thus it will increase the
reputation of their University.

CHAPTER II

PRESENTATION OF K K CHOW & PARTNERS

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2.0 Company Background

2.1 Company profile
Name of Company
Address

: K K Chow & Partners

: 2-7-9 to 2-7-12, 7th Floor Menara KLH Business
Centre, No 2 Jalan Kasipillay, off 2 Miles Jalan

Telephone/Fax No
Industry
E-mail
No of employee

Ipoh, 51200 Kuala Lumpur

03-23812066 / 03-23812166
Auditing
general@kkchow.com.my
36

2.2 Location
2-7-9 to 2-7-12, 7th Floor Menara KLH Business Centre,
No 2 Jalan Kasipillay, off 2 Miles Jalan Ipoh,
51200 Kuala Lumpur

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Figure 2.2.1: Maps to K K Chow & Co.

Figure 2.2.2: Building of Menara KLH

2.3 History of Company

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Formerly, this company was known as the K K Chow & Co, which offered the
Chartered Accountants practice. Then, the Ministry of Finance has approved
the registration of Auditor Company under section 8 of the companies act,
1965 further registered with the Companies Commission of Malaysia.
This company also approved tax agent and consultants under the Income Tax
Act, 1967 in which was established December 1984.

The name of the

companys name was taken from the founder of the K K Chow & Co itself,
Mr. Kee Kan Chow who now plays as the mentor for the K K Chow &
Partners Groups.

After servicing for few years, in July 1994, the company changed the name to
K K Chow & Partners due to the Audit Manager was admitted as a partner of
the firm. The two Audit Managers involve are Mr. Hong Thuan Boon and Mr.
Chia Hon Shong.

In early stage, the company started with three employees and gradually
expanded to the current size of staff approximately more than 20 persons.
These employees are those whom majority of them possess the relevant
professional qualification and experiences.

The company professional services include essentially statutory audit of

limited companies, clubs and associations, societies and partnership. The
company also performs as the tax consultant agent for individuals and
companies. Moreover, the company also carry out the management
consultancy services for example preparing the profit and cash flow forecast,
project feasibility studies, profit improvements, cost reduction studies,
mergers and take over companies, design of accounting system and tax
planning.

2.4
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Company objective, vision and mission

2.4.1

Objective
The companys objective is to provide excellent audit, financial,
management accounting and tax services to client according to the
professional standard.

2.4.2

Vision
The companys vision is to be a choice for an individuals to love work
in with local expertise and international network, providing value
added services to the clients and always over achieving client delivery.

2.4.3

Mission
The companys mission is to provide quality service through high level
thought, our professionals commit their skills world-wide standards
and a common work ethic of innovative thinking to develop results for
their clients.

2.5

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Organizational chart

Mr. Chow Kee Kan

(Director)

Administration
Department

Miss Poh
( HR Executive)

Staffs

Audit
Department

Mr. William Chan

(Audit Manager)

Mrs. Tan Lee Lee

(Supervisor)

Staffs

2.6
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Audit department organization chart

Tax
Department

Mr. Zen Chow

(Tax Manager)

Staffs

Mr. Chow Kee Kan (Senior

Partner)

Mr. William Chan Heng Guan

(Audit Manager)
Mrs. Tan Lee Lee
(Supervisor)

Senior audit
staff

Junior audit
staff

Trainee
Students

2.7
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Company services

The practices of the company essentially are structures under three divisions
which are audit and financial services, management consultancy services and
tax planning and consultancy services. These three divisions are led by very
experienced person and possess professional qualification such as Association
of Chartered Certified Accountants (ACCA) and member of Malaysian
Institute of Accountant (MIA).
2.7.1

Audit and financial services K.K Chow & Partners

For audit division, it is led by Mr. William Chan Heng Guan. He is a
member of Malaysian Institute of Accountant (MIA) and hold
Association of Chartered Certified Accountants (ACCA) certificate. He
also has a vast knowledge in audit and accounting experiences in tax
and management consultancy work for almost 15 years. He was assist
by Mrs. Tan Lee Lee who also qualified auditor and been worked
almost 11 years. Approximately nine persons consist of senior auditor
and junior auditor works currently in this division. The accounting
system that been used is the USB accounting software and three staff
working under this division.
The available services that the company provides to the client
are documentation of statutory audit not only to the public but also to
the private limited companies. The entire clients information is kept
manually and tags accordingly so the staff can find the relevant
documents and forms in the company secretary. This is to make sure
the client information is kept safe and secure.
Additionally, K K Chow & partners also provide financial
advice on takeover companies, restructuring, and conversion of
partnership into the limited companies. Besides that, its also provide
the purchase investigation and share evaluation.
Furthermore, the financial division also provides accounting
services and accounting system set-up. This is because there are some
of the client did not use accounting system to record their transaction
and record it manually in books and files. Therefore, this services is

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quite demanding by the client due to the world today depend on more
technologies.
2.7.2

Management consultancy services Active Management Consultant

Sdn. Bhd
The company also realizes the need to provide relevant and necessary
management service in order to help out the client in their business
operations. Therefore, the company believed by providing these
services it will assist the client to operate their business more
efficiently and effectively.
Some of the services that available are to assist various forms
of business registration application for business licenses. This is
because not all company is aware of the right procedure in application
for business licenses which sometimes requires time and days.
Therefore, this company believes this service will help those individual
and groups to establish a company.
Secondly, this division also offers provision of computerized
accounting services such as monthly preparation of profit and loss
account, cash-flow statements and working trial balances and opening
balance for the clients. Not only that, it also prepare the special reports
of profit and loss statements and cash-flow forecasts. Other than that,
they also provide recommendation on improvements in internal control
system besides designing various types of accounting system that
suitable with the client companys business nature.
Thirdly, like other division, this division also work as advisory
for instance in matter of compliance to Companys legislation in
Malaysia, provide information on Governments legislation, policies
and guidelines on foreign investment, exchange control regulations and
consult with the client in making decision for assets acquisition
decision and loans applications.
Nevertheless, this division provide register of certificate (ROC)
files, Secretarial files, minutes book and register of members book that

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record all about the directors, shareholders, secretaries, minutes of

annual general meeting, annual return and any documents relating to
extraordinary transaction occur during the financial year.
All the documents and books are not allowed to take out from
their department due to certain reason. Because of that, secretarial
department is a placed where I performed statutory audit. When the
audited accounts were ready and signed by partner, this will be sent to
secretarial department for the submission to Company Commission of
Malaysia (CCM).
2.7.3

Tax planning and consultancy services K.K Chow Tax Services

Sdn. Bhd.
The scope of the tax services is wide, ranging from the usual tax
compliance work (returns and submission) to assisting clients to
identify tax planning opportunities and also structuring their business
transactions to maximize tax advantages. These firms also provide an
advice to the clients on tax implications of certain business decisions
and commercial transactions.
These firms usually provide a service not only to the
individuals but also the corporate income tax computations and
submission. These would include the applications for extensions time
for the submission, installments and appeals.
Not only that, this firm also provided an advice on tax
implications on certain business transaction such as disposal of
companys assets, amalgamation, takeover of companies and mergers.
Other than that, these firms also provide an advice related with the
investments.
Additionally, this firm also provides tax planning not only to
the corporation but also to the partnership and individual. This includes
the employee benefit scheme, group restructuring and also
reorganization.

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Lastly, this firm also faced a lot of experience that there are
many business areas that have a potential for tax planning
opportunities that have been neglected or not given adequate
consideration especially among small and medium businesses. It is part
of their professional practice and as a statutory audit to alert the clients
of any potential tax planning opportunities that the firm can assist in
maximizing the tax benefits.

2.8

The partners / personnel

2.8.1

Chow Kee Kan

Mr. Chow Kee Kan is also known as Mr. K K Chow is the managing
partner of the firm. He has extensive in audit, investigation,
accounting, and management consulting and tax experience in the
profession. He also had been involved in a number of investment
project start up and implementation involving advising on government
policies and guidelines on foreign investments.
Mr. K K Chow is one of the members of Malaysian Institute of
Accountants (MIA). He also holds a practicing certificate from
Association of Chartered Certified Accountants (ACCA) and is a
licensed company auditor under Section 8 of the Companies Act, 1967.
He also is an approved tax accountant under the Income Tax Act, 1967.
Furthermore, Mr. K K Chow has an extensive audit whether
external or internal, investigation and accounting experience in the
various industries includes construction and property development,
engineering, advertising, investment holdings, manufacturing, solicitor
firms, trading, hotels and others.
In addition, he also has an experience in the management
consultancy work such as purchase investigation, companys takeover
and mergers, shares valuation, cash flow and profit forecast. Not only
that, he also has an experience in assisting clients in the design of

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accounting and costing systems, identification of management

information requirement and assisting clients in the selection of
software and hardware for computerization.

2.8.2

Chow Tuck Him

Mr. Chow Tuck Him also known as Zen Chow. He graduated from
Monash University with a Bachelor of Business and Commerce. He
had a double major in Accounting & Banking and Finance. Now, he
became a qualified full member of Certified Public Accountants (CPA)
Australia.
He is a Chartered Accountant by profession and was recognized
by the Malaysian Institute of Accountants (MIA). He also an associate
member of the Chartered Tax Institute of Malaysia that formerly had
known as Malaysian Institute of Taxation.
He has been involved in the tax compliance and tax advisory
works for the various industries ranging from the agriculture,
franchisor/licensor, investment holding or dealing, forestation,
manufacturing, foundation, association and trade union.

2.8.3

Yap Foo Teng

Mr. Yap Foo Teng is a member of the Malaysian Association of
Companies Secretaries. His career was started with a medium size
corporate advisory and service firm managing clients if both private
and public companies. He has a vast experience in company secretarial
practice and administration and has been in practice for more than 20
years. He is presently a company secretary of a listed company.
CHAPTER III

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AUDIT DEPARTMENT

3.0 Department Background

3.1 Department attachment
Throughout this industrial training, I had been attached to the audit department
which is the KK Chow & Partners. The department is leading by Mr. William
and Ms. Tan Lee Lee who are the Manager and Supervisor respectively for
audit department.
Besides that, I had also been supervised by the senior and junior auditors in
the department. I had been given an opportunity to go out for the external
audit with them. So that, I learnt different things from each of them and it help
me to get a clear picture what audit is all about.
Even though I have been attached in audit department, but I also have been
given a task to do the tax working paper. For example is calculating tax
computation and reconciliation and capital allowance schedule.

3.2 Audit Assignment Flowchart

Assignment

Assigning case

Audit Staff

Compiled Working Paper

Draft financial statement

Sent for typing

Admin
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Audit Staff

Call over

Audit Manager

First review

Answer first Review Note Question

Audit Staff
Audit Manager

(RE 4)
-

Acknowledge for clearance on RE 4

Second typing if there any mistake

Final check

Send for first review (KK)

First review

Admin

Audit Manager

Admin

Audit Partner

Audit Manager

Acknowledge

after

go

through

Review Note Question (RE 3)

Audit Staff
Admin

Send for second review (KK)

-

Audit Partner
Sent draft and Signing Pages

3.2.1
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Answer second RE 3

Acknowledge for clearance on RE 3

Case done and will be assign new case
new case

Explanation of audit flowchart/ audit process

An auditor must have their own audit process whether analyzing, collecting,
interpreting and obtain information from the clients during the audit work to meet it
audit objectives. The first audit cases that being given to me is NATWEST
MANAGEMENT SDN. BHD where I have to do the full set of audit.
At K.K Chow & Partners, there is audit procedure that auditor have to follow.
Firstly, supervisor will assign the cases to the auditor. The auditor will be responsible
in preparing the audit working papers. For the fieldwork cases it usually is done by a
team that will assign to handle the case. The teams usually consist of 3 to 4 people.
Thus the work produce will be efficient. After all of the working papers had been
completed or done, the auditor who in charge of the cases will send a draft of the
financial statement for review.
Secondly, the complete draft of annual report will be send to the supervisor for
review and after that it will send to the administration department for typing. After the
draft report had been typing and the correction has been made by the administration
staff, the draft will send to the other auditor for call over. Call over only can be done
by the senior auditor. Purpose of call over is to checking whether the draft report is
based on the working papers that had been done. Thus to ensure there is no mistakes
when the annual report is being draft to the client.
Thirdly, the draft annual report will be send to the audit manager for review.
During this time, if there is audit queries that be issued by the manager the auditor
should answer the audit queries. After answer the audit queries, the auditor will
explain the queries answer to the manager and if the manager was satisfied with the
answer. The draft annual report will be send to the administration department for
another typing. This second draft will be send to the manager for final checked.
Fourthly, the draft annual report will be send to the K.K Chow for review. If
the director does not satisfied with the auditor report the auditor in charge must
explain to him. Besides if there is any queries that issue by him the auditor need to
make adjustment on it or make some improvement.
Lastly, after complete answering all of the queries. The administration staff
will be sending the draft, signing pages and clients documents to the clients for

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signing. After all the documents had been returned by the clients, the annual report
can be issued.

The auditors will be provide with the Audit index that they need to
follow during doing audit work, there are:
1. RE

Reviews

For this section auditors need to do the Audit Confirmation

Control Checklist RE 13 and the other will be the usage for the
Administration Staff and Manager / Partners review.
2. AP

Audit Programme

This is the Pre Audit step which are the opening balances (O)
should be checked and agreed upon with last year audited
balance. Retained profit reconciliation must be done if the
opening balances did not tally with the previous annual report.
Trial Balance should be check against the General Ledger.
3. SF

Shareholders Funds

This section is preferably been done prior to fieldwork, any

material significant events and subsequent events must be
highlighted. Besides, verify issued share capital with previous
balance sheet and latest annual return. Other than that, verify
the return of allotments with minutes, relevant form resolution
for additional allotments made during the period or year.
4. CA Current Assets
For this part as auditors, they usually has primary responsibility
to determine whether management assertions about financial
statement are justified. There have two audit objectives should
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be test, which are whether recorded transactions have actually

occurred (Existence) and whether the assets have been included
in the financial statements in appropriate amounts (Valuation).
5. CL

Current Liabilities

While for this section the auditors needs to check the

completeness which is existing transactions are recorded and it
deals with whether all transactions should be included in the
journals have actually been included.
6. IE

Investment & Expenditure carried forward

Schedule of information required for this is reconciliation of

opening and closing nominal and balance sheet values
indicating the basis and particulars of dividends received and
receivables. There have three types of investment which are
other investment (1-19%), Associated (20-49%) and Holding
(50% and above).
7. PPE Property, Plant & Equipment
This section have three objective should be test by auditors,
which are ownership, valuation and existence. For the valuation
and existence is similar with the current assets and liabilities,
but for the ownership means that the assets must belong to the
entity. For example Motor Vehicle should be under company
name not directors or staff of the company.
8. LTL Long Term Liabilities
For preparing this section is not too much items, the basically
needs to do one or two items only that are for Interest paid
during the year or have outstanding at year end (LTL 1) and for
the provision for deferred taxation (LTL 2).
9. IS

Income Statement items

This section represents an operating cost which incurred

business. Generally, for all expenses, obtain an analysis of
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operating costs accounts included in the cost headings disclosed

in the financial statements.
Taxation
For the taxation items it can be at Current Assets (Tax
recoverable) or Current Liabilities (Taxation). Others will be
filling by the tax agent.

3.3 Job assigned and nature of work done

During the first week, I learnt how to prepare statutory audit. This is the first
step as an intern student that should know before being exposed to other job.
The main purpose of doing statutory audit is to make sure that the auditors
familiar with the clients nature of business and company business.
The important things that need to highlight when doing statutory audit is to
check current year or any up to date document of the client. Things that need
to check is the annual general meeting, minutes of meeting, resolutions, Form
49, Form 44 and any of document or event that occur during the financial year.
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The documents can be found or taken from the minutes books and register
member books that provided by Active Management Consultant Services Sdn.
Bhd in which situated at the 3rd Floor of the building which is the company
secretary. If there is anything that the auditor unsure they can ask the staff at
the company secretary for further information.
Besides that the company secretary not only Active Management Sdn Bhd but
they have also outside company secretary. Sometimes I have to go for
statutory audit which involves outside company secretary. On the other hand, I
also being assign to assist senior auditor for field work case. When the
supervisor assign to do fieldwork case it increase the communication skills
and how to be independent. This experience will help to build confidence will
working with the real environment.
While being assign with own case, I learn how to prepare audit working paper.
I have to prepare working paper for fixed asset, current asset including
inventory, trade and other debtor, any prepayments, short term funds and
amount due from directors. Besides I also have to do current liabilities
working paper which consist of trade and other creditor and accruals and
amount due to director. Furthermore I also working on the profit and loss
schedule such as sales, cost of sales and expenses items. Then I should
perform a close reference so it can be as evidence for the transactions.

In addition, while I am performing the working for profit and loss items I
should prepare sales cut-off test. This test is to make sure that the transaction
is occur or exist during the period. Besides the number of invoice should be in
sequence so it can ensure that there is no flow of cash for personal benefits.

After performing the working paper, I proceed with the audit planning
program which it was prepared to identify clients key engagement
information, background, principal activity and comments on client
acceptance and re-evaluation. I need to prepare preliminary analytical review
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which it includes as a part of the audit planning program. The preliminary

analytical review illustrates the comparative figure between this year and last
year based on revenue, cost of sales, gross profit, current assets and current
liabilities. Any significant changes or unusual fluctuation should be clarified
as remarks. I only need to key in the relevant figure as the AR statement
already there with the formula such as the ratio on gross profit margin, stock
turnover, creditor turnover period and current ratio.

Finally, after preparing all the working paper and completing the assign case, I
need to submit the complete draft to supervisor for review before send to the
administration staff for typing before it will be review by the Manager and
Partners. If they do not satisfy, they will highlight issues or matters that need
to be taken into consideration. This auditor should answer all of the queries
before the draft can be issue to client.

Usually, I have to amend some of the transaction or provide more supporting

documents or amend tax computation as the expenses not allowed always
changes like the amount of the professional fees, filing fees, donation and
penalty. Then, I have to re-submit the working paper to manager for second
review before partners review. Once the manager satisfied with the audit
report, this draft will be re-sent to administration staff for typing. After new
draft done typing, this working paper and audit report will be reviewed by
Partners. Usually partners will come up with one or two queries regarding the
matters that are not clear or understood.
This copy of audited accounts also will be sent to tax department and auditing
department. In audit department, at least one senior, semi senior or junior
auditors, who not finalized the cases will double check (call over) the word for
the audit report to make sure the report free from error and word mistake.
Then, they will submit to partner for a last review before re-printing and
submit draft to the clients company directors after approval from the
administrative executive.

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Subsequently, the copies of signing pages should be sent to respective

directors to get approval for the true and fair view of the audited report and
financial statements. At least, according to standard, two directors of the
company need to sign the audit report. The signing pages were sent together
with the outstanding matters, confirmation of account balances to debtors and
creditors, letter of representation, Adjusting Journal Entries (AJE),
reclassification journal entries and directors remuneration forms. All of these
documents also should be signed and confirmed by the directors.
When clients sent back all the documents to the company, copies of report and
financial statements including the original signing pages will be filed before
binding, arranged accordingly and sent for final review from partner. Once the
partner agreed and satisfied with the arrangement and audit as a whole, the
report and financial statements are ready to be sent to clients and the audit file
can be closed.
Besides, I have an opportunity to do the stock take which is held at the THK
Power Tools which is located at USJ. I have been briefing by my manager
about what is stock take or other name physical inventory count. From this
experience I learn how to record and count the inventory in a proper way. The
number of inventory should be tally with the number of inventory that has
been count by the factory supervisor. So this to ensure that there is no theft of
asset by the employee. It does not involve the entire inventory it involves only
items that have high value and quality only.
Other than that, we also must record the figure that we had counted and
updated it and then compared it with the figure of stock before whether the
stocks are high value, obsolesce (not moving) or third party.

After complete this task, if the auditor did not satisfied with the existence of
stock for the company, then the auditor may reduce the qualified report for the
company.
This opportunity will be a good experience for me that I can be used when I
work in the real working environment.

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4.0 SWOT ANALYSIS

Strength

Weaknesses

1.

Segregation of duties

1.

Unused equipment

2.

Relationship among the staff

2.

Limited staff and space

3. Authorization of data

3.

Poor System

Opportunity

Threats

1. The quality of services

1.

Competition among competitors

2.

Potential employment

2.

Economic downturn

3.

Expand the business

3. The advance of technologies

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Table 4.1

SWOT Analysis

When trying to start up an audit firm. The owner should take many
consideration and steps so the company will remain competitive in the market. Using
a SWOT analysis will help the firm to improve to be a successful company. For an
audit firm like K.K. Chow & Partners there is a useful SWOT analysis that they can
use for future development:
4.1.1

Strength
a.

Segregation of duties
At K.K Chow & Partners they were using segregation of duties. Each
department in the K.K Chow & Co has their own role in performing
their work or task. It will make the work flow for the entire department
becomes more effective and efficiently. For an example, all the
documents like signing pages and the client management account will
be sent to the administration department and they will send all the
documents by courier or email. Other than that, after completing the
draft report the auditor will send their draft to the administration
department for typing and further steps that will be take place. Thus
the auditor can concentrate with the other assign case and the work can
be reduced during the peak period.

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Furthermore, tax department also play an important role too.

All the documents that is related to the tax department was stored at
the tax department store room. It will make the work in the audit
department will become more efficient and effective because if there is
a problem regarding of tax client can be directly contact to the tax
department.

b.

Good relationship between the manager and the audit staff

The close relationship between the audit manager and the audit staff
will help in improving their work. All the problems during the audit
procedures can be solved by shared with the manager. Manager play an
important role in helping the audit staff so that they feel appreciated
and also reduced their stressed while performed the work.
Besides, sometimes the audit manager will briefing to the audit
staff if there is new thing that is need to be highlight. So the staff
would not make any mistakes. In addition the staff involves trainee
also. So this is the good chance for the trainee to gain some
knowledge. This showed that the manager is not biased with their staff.
Besides that, senior auditor also shared their knowledge and experience

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with the junior auditor and trainee on how to handle uncertain situation
that might arise during audit procedures.
Furthermore, the audit manager also concern on how the staff
performance. If there is any issue among the staff the audit manager
will find a solution to the problems.
c.

Authorization in access the data

For an audit firm, all the data that related with the client are very
important and cannot be disclose to the third party. In the audit
department, only audit staff can access all the data. All the data was
kept in the systems so that easy for an auditor to do their audit
procedure. All the data regarding the audit were based on the financial
year.

Each computer and laptops in the audit department was

protected by passwords. Only an audit staff can be access all the client
data. Although trainee is not a permanent staff but still can access all
the data in order can do the audit procedures.
Besides, the company also has a good data backup. So the auditor does
not have to worry if there is missing data in their computers.
Furthermore the auditor must be responsible for anything happen to the
missing of data.

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5.1.2

Weaknesses

a.

Unused equipment and resources

In the K.K Chow & Partners, there is unused equipment although all
the equipment still can be functioning. For an example, there are some
of the tables and computers was stored at the store room although all
the equipment still functioning.
All of the equipment should be handling properly. This is
because the unused equipment can be used in the future.

Besides

that, sometimes the trainee has to take turn using the computers
because it is being use by other auditors. It will take long time to
complete the work.
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Furthermore, although audit department has a limited space but

if the furniture is being arrange properly the working place will be
better.. In the audit department, one table was shared by 4 peoples and
sometimes some of the documents were wrongly taken by other staff.
b.

Limited staff and working space

K.K Chow & Partners also has a limited staff and space of works. For
example the auditor has to do so many cases although they still handle
another case. This situation may affect the auditor itself. The level of
stress that been facing by the auditor will affect the emotion of the
auditor and they tend to be confused on what case that they had been
done. This will affect the quality of worked produce.
In addition, the company has a limit space and difficult to the
auditor to perform a quality of audit works. For an example, if the
auditor received an indoor cases, they need to use a very large space
because sometimes the document inside the box. Thus it will use a lot
of space. So the other auditor also will be feeling uncomfortable to do
their work. As an auditor it is wasting time if they have to come in and
out from the store room to find the client documents.
Furthermore, even though auditor have their own place to put
their work sometimes the space is not enough because they have to do
many cases at one time. Besides there is a possibility their belongings
is being use by the other staff.

c.

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Poor system

All the systems that are used in the K.K Chow & Partners were based
on server. Sometimes, the server in the audit department is down this
will affect the audit work of auditors.
The auditor will have a problem if the server is not function
well. For example, sometimes the server is down so the auditor has to
restart the server in order for it to function again.

5.1.3

Opportunities
a.

The quality of services

The quality of services can be improve by add the value of services. By
improving the services can help increasing the amount of clients and
also will help in generating the income to the audit firm.
Additionally, by adding the value of services also will help in
increasing the confident level of the client. This is because a client that
received a good service will advertise that audit firm to their friends.
Furthermore, the advance of technologies will be the key factor
for business success. By using the latest technologies it will help in
improving the quality of work at K.K Chow & Partners. It also will
make the audit process more efficient. This is because during the peak

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period, it is impossible for the auditor to prepare all the working paper
manually. In addition K.K Chow & Partners have many clients to
handle which come from different industries.
For an example, in the audit department, they still using manual
method in preparing the working papers. This can take a longer time to
complete and anyone can make adjustment to the working paper. K.K
Chow & Partners need to use software so that the audit work that has
been produce is a good quality.
b.

Potential employment
Due to the high demand in this professional industries will make it as a
job opportunity. Even the government also encourages young citizens
to choose it as a career. There are several professional bodies that
support and help to improve the audit firm industries. Each day the
number of register Company slightly increases in the industry they
need this specialty so it will help them to increase the level of income.
Additionally, this auditing work only can be done by auditors
and any company should hire an audit firm so that can perform all the
audit work. Besides that, the company also needs to hire other firm that
expert on the other field. Thus it will make the performance of the
company to operate smoothly

c.

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Expand of the business

K.K Chow is a very well known in the industries especially in the

taxation field. This is because they also held a talk to their clients and
other users also.
So the audit firm has a strong brand name that could attract the
new client whether individual or a company. Additionally, since K.K
Chow & Partners has a strong brand name in the industries. He should
consider in expanding his business.

5.1.4

Threats
a.

Competition among industries

In Malaysia there is a lot of audit firm in the market. They also offered
the same services. The close competitor for the K.K Chow & Partners
is Al-Jeffrey & Partners. They also offered the same services that may
affect K.K Chow & Partners.
Some of the clients also prefer to receive the services from a
well- known audit firm because they believe that although they have to
pay high audit fee they will receive a good quality of services. If K.K

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Chow & Partner do not provide a good quality of services, the client
will be choosing the other audit firm.
There are pros and cons by having a competition. Every firm
should take an initiative to improve their quality of services so that the
client would feel satisfied with the work and appoint them as their
auditor.
b.

Economic pressure
Economic downturn may affect the professional industries. Economic
downturn may arrive from the economic inflation or natural disaster.
The economic inflation not only affect to the audit firm but also
to the business of the clients. If the clients operate a small business by
having an economic inflation it may affect to their business. Clients
cant generate their own profitability so that they cannot afford to pay
for the service.. Client becomes an important role to the business. This
is because the source of income for the audit firm is from the service
provided to the clients.
Furthermore, by having an economic downturn the audit firm
will incur more expenses. For an audit firm if the case that usually
performed on field work it will incur high cost. The expenses that
derived from the claims by the auditors include the mileages, petrol,
toll and transportation claim.

c.

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The advance of new technologies

Nowadays, the development of new technologies was very fast. This

development may affect the audit firm. This is because the internet
facilities were using widely that makes every day work becomes more
effective and environmental friendly usage.
There is a lot of accounting software in the market that easy to
use. For example software like UBS accounting software and also the
Mind Your Own Business (MYOB) software that is easy to get in the
market. They only need to hire an expertise person or send their
employee for training to get knowledge about the software.
In additionally, the usage of online form is being using widely.
This is because its much easier than fill in manually. This facility will
affect the audit firm that offered a tax services. This is because the
form like CP204 and Form C can be filling by using the internet. This
form will be sent directly to the Inland Revenue Board (IRB) and will
be processed quickly.
CHAPTER IV

5.0

RECOMMENDATIONS & SUGGESTIONS

Based on my observation, there is a weakness at K.K Chow & Partners that they need
to improvise so that the company can stay competitive in the market. The weakness
might be subjective but it could affect the company performance in the future. There

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is several solution or suggestion that might be useful to be used by K.K Chow &
Partners.
Firstly, the number of staff in K.K Chow & Partners is limited. They should
hire more qualified and experience staff so that it could reduce the level of stress and
workload that being face by the auditor. By recruiting new staff it will increase the
performance of the auditor where there can focus to their works. The work will
become effective and efficient.
Secondly there is a lot of unused equipment in K.K Chow & Partners. All of
the unused equipment will be place at the store room. For example table, chairs and
computers. All of the equipment still functioning and can be used. Although all of the
space is being occupies but with a proper arrangement it can be used. Trainee has to
share the table so it will discomfort the trainee while doing their work. Some of the
equipment in the office needs an upgrade so the staff will be happy to go to work. On
the other hand, if there is a proper arrangement in the file room the client files can be
easily to find.
Thirdly, K.K Chow & Partners still use manual working paper. This will need
a longer time to be complete and the work produce is not efficient. K.K Chow should
consider using a system for auditing. Because nowadays many company is using
paperless system which it will be more effective. Although the cost will be high and
need training but it will help in making the work more effective and also more
efficient. By having an efficient work flow, the high quality of work can be produced.
Fourthly, the current server that is being use at K.K Chow & Partners
sometimes having a problems so it have to be restart so it can function normally. This
thing happen because all the systems including the photocopier machine was linked
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together with the server. This will make the work produce become slower because
they have to wait until the photocopier is being function. K.K Chow should consider
to change to other equipment although it costly.
Lastly, I can find there is a conflict of interest between K.K Chow and his
clients. This is because some of the client has a mutual relationship with K.K Chow
itself. This will lead to a breach of act as an auditor. According to the act the client
should not have any relationship with the auditor. Next is to strengthen the business
K.K Chow should upgrade advertising method. Instead of using brochure and
pamphlets they can use website so their potential client can see clearly how the
company providing services. With grow of Internet client mostly using search engine
to know about the company very well before they appoint them as an auditor.

6.0

CONCLUSION

It was a great opportunity and experience having an internship program at K.K Chow &
Partners. Besides working with different people that come from different background gives
me different experience and knowledge that I will apply for my future career. Through this
training also I have learned many things as this is the first time I having my internship. Firstly
it increases my confidence level to communicate with not only the staff but with other people
too. On the other hand, I also manage on how to deal with the clients that have different
character and finding the solution to the problems.

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Secondly I also manage to discipline myself by following the rules and regulation that
had been set by the firm. In order to give a good reputation of my university I had to find a
solution for every conflict that arise within my internship period. Furthermore I had a chance
to do full audit like other auditor. This is the opportunity for me to learn and grab the
knowledge as many as I can that further can be used in the real working environment. With
the help from the senior auditor the task can be complete within the time frame.
Next is while doing internship, the work not only focus in one area only but it
involves other area. When the students is being expose to other things the knowledge will be
expand then it could give a benefits to the students. It starts from filing the document to the
full set of audit. So the students will learn how the audit process is being done.
Lastly I am thankful for the opportunity that has been given to me to do internship
with this company and to my supervisor that help me during the internship period. Without
them I cannot complete this internship successfully.

BIBLIOGRAPHY:
1. A. Arens, Alvin and J. Elder, Randal, 2009, Auditing and Assurance Services
in Malaysia, Malaysia, Prentice Hall.
2. UNIKL, 2014, Industrial Training, Kuala Lumpur, Maju Press
3. https://sites.google.com/site/kevinsommerscareerportfolio1/personal-swotanalysis
4. http://www.wikihow.com/Market-an-Accounting-Firm
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5. http://auditors.bizbilla.com/fetauditingfirms1-in_KUALALUMPUR_Malaysia_9307.html

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APPENDICES

APPENDIX A

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Figure 1: Preparing working paper

Figure 2: Company secretary documents

APPENDIX B

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Figure 3: Previous audit file (FILE 1)

Figure 4: Tax File

APPENDIX C

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Figure 5: View Audit Department

Figure 6: Doing STOCKTAKE

APPENDIX D

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Figure 6: At Client Office

Figure 7: Preparing statutory audit at client place

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APPENDIX E
Time Cost Budget
One set of statutory audit form
Audit queries

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