Amity School Of Business, Amity University, Noida, Uttar Pradesh

Project Report

On

Auditing And Accounting (Safal & Sons)

A Report Submitted in fulfillment of Summer Internship For The

Bachelor Of Business Administration course (2017-2020) of Amity
University

Submitted To: Submitted By:

Dr Nishant Kumar Hridesh Khurana
Faculty Guide A3906417293
NTCC BBA (GENERAL)
2017-2020
 Faculty Approval
This is to certify that I, Hridesh Khurana, a student of BBA (General) 2017-
2020,Amity School Of Business, Amity University, Noida has worked under
the able guidance and supervision of Dr Nishant Kumar, designated faculty
guide.

This project report has the requisite standard for the partial fulfillment of the
Summer Internship (NTCC) In Bachelor of Business Administration. To the best
of my knowledge no part of this report has been reproduced from any other
report and the contents are based on original knowledge

I am aware that in case of Non-compliance, Amity school of Business is entitled

to cancel the Report.

Signature
Dr Nishant Kumar
(Faculty Guide)
 ACKNOWLEDGEMENT

I Express my sincere gratitude to my faculty guide Dr Nishant

Kumar, for his able guidance, continuous support and
cooperation throughout my project, without which the present
work would not have been possible. My endeavor stands
incomplete without dedicating my gratitude to him, he has
contributed a lot towards successful completion of this project.

I would also like to express my gratitude to my family, friends

for their unending support, and tireless effort that kept me
motivated throughout the completion of the Project.

Yours Sincerely
HRIDESH KHURANA
BBA (2017-2020)
TABLE CONTENTS
 INTRODUCTION
Safal & Sons is a Well-Known Chartered Accountants Firm in India. It was
established in 2006 in Kurukshetra, Haryana. They provide services in Haryana
and other major states of India. Their services include outsourcing of accounts,
auditing, taxation accounting. It is a leading Chartered Accountancy firm
rendering comprehensive professional services. Safal and Associates is a
professionally managed partnership firm. The team consists of distinguished
Chartered Accountants, Corporate Financial Advisors and Tax Consultants. The
Firm represents a combination of specialized skills, which are geared to offer
sound financial advice and personalized proactive services. Those associated
with the firm have regular interaction with the industry and other professionals
which enables the firm to keep pace with contemporary developments and to
meet the needs of its clients.

Other services include company formation, corporate compliance, commencing

business in India, tax due diligence, taxation of expatriates, registration of foreign
companies etc.

They are a team of versatile chartered accountants, tax consultants and financial
advisors in India. They represent an alliance of specialized skills that are used to
provide optimum financial advices and solutions and are committed to provide
consistent, customizable and workable solutions to our clients and strive to
support our services with the highest level of professionalism, efficiency and
technology.

The organization is an association of qualified professionals and experienced

members who are focused in adding value and optimizing the advantages
accruing to the clients. They are one of the oldest Accounting and Auditing firm
in India. They are the finest auditing firm providing comprehensive Accounting
services generally to small corporates.

VISION
To accomplish the assignment through the experience of firm’s partners and
professional staff and also to arrange specific technical expertise from our
associates of various streams of professions.

Audit Procedures In India

General Definition of Audit Process and Procedures:-
Auditing is a significant part of the company’s compliance efforts. Properly executed audits
will enable to identify conduct which may violate the federal and state laws or detect
weaknesses in the claim development and submission process. Audits will also enable to
appropriately target and measure the effectiveness of its educational efforts, ensure that
appropriate corrective actions have been taken and quickly identify problems in the claim
development and submission process which give rise to civil or criminal exposure.

It is a sequential order of steps followed by the auditor in the examination of client records.
The audit process may vary depending upon the nature of the engagement, its objectives, and
types of audit assurance desired. The process includes understanding the particular client’s
environment, conducting the auditing procedures and tests, appraising the audit results, and
communicating the results to the interested parties.

It is auditor technique in gathering auditing evidence to substantiate the reliability of the

accounting records. The auditor evaluates whether the information presented is logical and
reasonable. Examples of auditing procedures are observing assets to verify existence and
amount, collecting independent confirmations from external parties, evaluating internal
control, appraising management’s activities and obtaining management representations. The
audit procedures to be followed on an engagement are indicated in the audit program. The
work papers indicate what has been done on the audit.

The audit firms in India are regulated and guided by the institute of Chartered Accountants
of India. ICAI has suggested and provided the firm with different subjects regarding
auditing. Like others it has suggested auditing procedures that can be followed by the audit
firm in India in its Audit practice manual may be summarized as follows:

Audit Process

1. Planning

2. Collection Of Evidence

3. Controlling and Recording

4. Review and Opinion

Planning

In order to assist in a disciplined approach to planning and to ensure compliance with Indian
Standards on Auditing, the APM provides documentation enabling a record of planning to be
kept, demonstrating the approach adopted for each audit and the reasons for that approach.

Collection of Audit Evidence

The APM Audit records are comprehensive and are designed to deal with the most
eventualities. However it is crucial that the programs are tailored to meet particular
circumstances of the client.

Controlling and Recording

This section provides detailed guidance on the use of the documentation, including the way
in which forms should be completed for the preparation of a well-documented audit file.

Review and Opinion

This section deals with how partner can review the overall audit and form an opinion. APM
provides some checklists which can be used to review the overall performance of the client.

The primary goal of Safal & Associates at the time of involving in any audit engagement is
to provide the opinion on financial statements in accordance with Indian Standards of
Auditing as well as International Standards of Auditing. They also seek to provide auditing
and management consultancy services that are innovative, efficient and most importantly
responsive to the client’s needs.

It is another fact that before starting the audit procedure they present a series of more
procedures. For example audit engagement letter, audit clearance letter, team meeting.
Engagement Procedures

Before discussing the audit procedure followed by Safal & Associates. I will try to focus on
the engagement procedures through which Safal & Associates is engaged/recruited by the
client to perform the audit. Before starting the audit work, some letters are exchanged
between Safal & Associates and clients.

Safal & Associates faces 3 kinds of situations in engagement procedure:

1. Engagement with new client

2. Engagement with existing client

3. Directly appointed by the client

OBJECTIVE
The Objectives To Be Known To Further Get A Deeper Meaning Of This Topic
Are Stated Below:-

1. To comprehend the meaning of Accounting and various types of Accounting.

2. To know the relativity between Accounting and the political environment and
legal environment.
3. To comprehend the relativity between Auditing and Political and Legal
Environment.

4. To apprehend how advanced technologies enable Accountants and Auditors to

satisfy the needs and wants of their clients.

5. To grasp the ways Accountants are highly able to satisfy clients by complying
with the legal boundations.

Scope
I have been assigned to Safal and Associates that gave me tremendous scope to familiarize
with the Audit procedure of the organization. Major parts of scope are pointed below:-

1. Background of the host organization and also their position.

2. Audit procedure, which is followed by the organization for performing any audit.

3. Nature and importance of it has been depicted in the study.

4. Audit methodology of the firm, which is followed by the organization for performing
any audit.

5. Audit administration of the firm, which is followed by the organization for performing
any audit.
RESEARCH METHODOLOGY

1. A questionnaire was prepared to gauge the working environment of the company

2. Survey has been done out of the company covering a wide cross-section of the industry.

3. The questionnaire was presented in one in one interview with each of the respondents.

4. Responses of the concerned persons had been thoroughly analyzed.

5. Conclusions had been arrived at using the response of the concerned persons and not on
questionnaire alone

Particularly where an issue has been the subject of recent press attention, the shutters go up
and there is no way in. All you can do in such circumstances is to give up and try something
else likely to be more productive – you don’t have the time to spend on larger negotiations.
Crucial to the business of initially gaining access is the whole matter of assurances of
confidentiality, anonymity etc. which I consider below. Your stances granted access,
depends on how much of an active participant you want to be in the arena you are observing
– the more obviously committed you are to one particular stance or ideology the more others
will take this into account when revealing their thoughts and actions to you.

In this context the questionnaire was not a full-fledged one and was made with an intention
of getting the main information as people don’t have that much time to spare and also a long
questionnaire irritates them. So the questionnaire used in my research was really crisp and
was aimed at getting the required information in the least time, also the questionnaire was
used for primary purposes only.
RESEARCH TOOLS :-

They specify the methods and procedures for conducting a particular study. A research
design is the arrangement of conditions for collection and analysis of the data in a manner
that aims to combine the relevance to their search purpose with economy in procedure.

They are broadly classified into three types as:-

1. Exploratory Research Design

2. Descriptive Research Design

3. Causal Research Design

DATA COLLECTION METHOD:-

The data collection method used in the questionnaire is the Primary Data. The Primary data
means that the data is collected by different techniques like questionnaires, Depth Interviews,
Surveys, Schedules etc. In this project, primary data has been collected by the means of
questionnaire.

1. I have collected Primary information by working with two audit team.

2. Discussing with engagement partner, audit manager, audit staff and articled student.
Limitations of the study

The study is conducted with an objective to make a thorough study of external audit
procedure. I have availed many facilities and faced some obstacles during my study. These
obstacles may be termed as ‘limitations of the study’. These limitations are as follows:-

1. Scheduled time span was not sufficient to cover all information.

2. As an Independent audit firm the information of the case study is not adequate for this
study.

3. To some extent the exact audit procedure is not followed due to time and other constraints.

4. As the internship was the first practical experience, it was not possible for me to know all
and everything of audit procedure.

DATA ANALYSIS

It is a practice in which raw data is ordered and organized so that useful information can be
extracted from it. The process of organizing and thinking about data is key to understanding
what the data does and does not contain. There are a variety of ways in which people can
approach data analysis and it is notoriously easy to manipulate data during the analysis phase
to push certain conclusions or agendas. For this reason, it is important to pay attention when
data analysis is presented and to think critically about the data and the conclusions which
were drawn.

Raw data can take a variety of forms including measurements, survey responses, and
observations. In its raw form, this information can be incredibly useful, but also
overwhelming. Over the course of Data Analysis process, the raw data is ordered in a way
which will be useful. For example, survey results may be tallied, so that people can see at a
glance how many people answered the survey and how many people responded to specific
questions.

In the course of organizing the data, trends often emerge, modeling the data with the use of
mathematics and other tools can sometimes exaggerate such points of interest in the data,
making them easy for the researcher to see. Charts, graphs and textual write-ups of data are
all forms of data analysis. These methods are designed to refine and distill the data so that
readers can glean interesting information without needing to sort through all of the data on
their own.

DATA ANALYSIS PROCESS:-

Once the necessary data is collected, the next task is to aggregate the data in a meaningful
manner. A number of tables are prepared to bring out the main characteristics of the data.
The researcher should have a well thought out framework for processing and analyzing data
and this should be done prior to the collection of data.
It Includes:-

1. Editing- The first task in data processing is the editing. Editing is the process of
examining errors and omissions in the collected data and making necessary corrections in the
same.

2. Coding- It is necessary to carry out the subsequent operations of tabulating and analyzing
data. If coding is not done, it will not be possible to reduce a large number of heterogeneous
data into meaningful categories with the result that the analysis of data would be weak and
ineffective and without paper focus.

3. Tabulation- It comprises sorting of the data into different categories and counting the
number of cases that belong to each category. This is also called universal tabulation. The
analysis based just on one variable is obviously meager. Where two or more variables are
involved in tabulation, it is called vicariate or multivariate tabulation.

4. Analysis- After all the three steps, the most important step is analysis of data.