INTERNSHIP REPORT

SUBMITED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD

OF DEGREE OF

B VOC BANKING FINANCIAL SERVICES AND INSURANCE (BFSI)

FOURTH SEMESTER 2021-2022

By

PUNYA KRISHNA E P

(CRAUBVN035)

INTERNSHIP AT K.M. SHAFEEQ & ACCOCIATES

Chartered Accountants

UNDER THE SUPERVISION OF

Ms. VARNA JOSE

(Asst. Professor, Department of BFSI)

DEPARTMENT OF BFSI

CARMEL COLLEGE, MALA

THRISSUR, KERALA

2020–2023

MS. VARNA JOSE MS. MANEESHA TM

Supervisor Head of the Department

 CERTIFICATE

This is to certify that the internship report entitled “INTERNSHIP AT K.M. SHAFEEQ
& ACCOCIATES is a bonafide record of internship work carried out by PUNYA

KRISHNA E P (CRAUBVN035) in partial fulfilment of Degree of Vocational Studies,

4th Semester Banking Financial Services and Insurance of the Calicut University
under my guidance and supervision.

Ms. Maneesha T M

Head of the Department

Date:

CERTIFICATE

Certified that the internship work entitled “INTERNSHIP AT K.M.SHAFEEQ

& ACCOCIATES Chartered Accountants ” is a bonafide record of internship
work carried out by PUNYA KRISHNA E P (CRAUBVN035) in partial
fulfilment of Degree Of Bachelor Of Vocational Studies, 4 th Semester Banking
Financial Service and Insurance of the University of Calicut.

Submitted for the Viva - Voice Examination held on……...

Internal Examiners External Examiners

 DECLARATION

I, PUNYA KRISHNA E P (CRAUBVN035) hereby declare that the internship report entitled
“INTERNSHIP AT K.M.SHAFEEQ & ACCOCIATES Chartered Accountants” done under
the guidance of MS.VARNA SHINOY, Asst. professor Department Of Vocational Studies of
University Of Calicut, I also declare that this report has not been previously submitted either
in partial or in full for the award of any others degree diploma in this institution/university.

Place: MALA PUNYA KRISHNA E P

Date: (CRAUBVN035)
 ACKNOWLEDGEMENT

I offer my gratitude to good almighty with whose grace I could successfully

accomplish the internship work.

I express my sincere gratitude to my internship guide, Ms. VARNA SHINOY Asst.

professor Department of Vocational Studies , Carmel College Mala for her timely
advice and able to supervision throughout the study and for the preparation of the
internship report.

I would like to express my gratitude to all the faculties in Department of Vocational

Studies, Carmel College Mala, for their consent guidance, encouragement, and
valuable contribution throughout the internship.

Finally, I express my sincere thanks to all my friends and family members for their
cooperation in the preparation of the report.

PUNYA KRISHNA E P

(CRAUBVN035)
 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO

1. INTRODUCTION 1-3

2. INDUSTRY PROFILE 4-5

3. COMPANY PROFILE 6-7

4. JOB DESCRIPTIONS 8-14

5. SWOT ANALYSIS 15-16

6. CONCLUSION 17-18
 CHAPTER 1
INTRODUCTION

1
 INTRODUCTION

An internship is a professional learning experience that offers meaningful, practical work related to
a student's field of study or career interest. An internship gives a student the opportunity for career
exploration and development, and to learn new skills.

The B.voc students of the University of Calicut are required to complete 21days internship as a part
of course curriculum program during the Fourth Semester. Internships are a proven way to gain
relevant knowledge, skills, and experience while establishing important connections in the field. An
internship enables to gain first-hand exposure of working in the real world. It also allows to harness
the skill, knowledge, and theoretical practice learnt in university. Internships provide a nice learning
curve with little experience of the professional world.

During my internship period I joined K.M SHAFEEQ & ACCOCIATES Chartered

Accountants as an intern to know the real functioning of Auditing Firms. The period of internship
was from 25/04/2022 to 23/05/2022. This program provides a platform to develop professional
aptitude, strengthen personal character, and provide a greater door to opportunity.

The most important element of internships is that it integrate classroom knowledge and theory with
practical application and skills developed in professional or community settings. Internship also
brings a wealth of benefits to students, both while completing a degree and when seeking a career
path post-graduation.

Objectives of internship

 extend learning into the work place

 empower to take responsibility for their own learning
 to explore and validate choice of career
 involve businesses in the educational process
 extend theory to application

2
SCOPE OF INTERNSHIP

This study is made as attempt to understand actual working of Auditing Firms and to get in touch
with the work culture and work environment. During the internship, the intern get the opportunity to
become a part of processing financial reports, analysing account statements, releasing invoices, and
vouching of important documents.

LIMITATIONS OF THE STUDY

 Time constrain
 Lack of corporation from the employees of K.M. SHAFEEQ & ACCOCIATES.

3
 CHAPTER 2

INDUSTRY PROFILE

4
 INTRODUCTION

India's services sector has always served the country’s economy well and currently accounting near
about 60 per cent of the gross domestic product (GDP). In this regard, the financial services sector
has been an important contributor.

The Government of India has introduced reforms to liberalize, regulate and enhance this industry.
At present, India is undoubtedly one of the world's most vibrant capital markets. Challenges remain,
but the future of the sector looks good. The advent of technology has also aided the growth of the
industry. About 75 per cent of the insurance policies sold by 2020 would, in one way or another, be
influenced by digital channels during the pre-purchase, purchase or renewal stages, as per a report
by Boston Consulting Group (BCG) and Google India.

The service sector consists of the soft parts of the economy such as insurance, government, tourism,
banking, retail, education, and social services. In soft-sector employment, people use time to deploy
knowledge assets, collaboration assets, and process-engagement to create productivity,
effectiveness, performance improvement potential and sustainability. Service industry involves the
provision of services to businesses as well as final consumers. Services may involve transport,
distribution and sale of goods from producer to a consumer as may happen in wholesaling and
retailing, or may involve the provision of a service, such as in pest control or entertainment. Goods
may be transformed in the process of providing a service, as happens in the restaurant industry or in
equipment repair. However, the focus is on people interacting with people and serving the customer
rather than transforming physical goods.

5
 CHAPER 3

COMPANY PROFILE

6
COMPANY PROFILE

K.M. SHAFEEQ & ACCOCIATES is a service industry based in PATTAMBI specializing in

accounting terms like income tax, sales tax, audit works and bookkeeping founded in K.M.
SHAFEEQ & ACCOCIATES has team strength of 9 including its founder. We believe in adding
value while serving business and people, professionally. IS the founder of the K.M.SHAFEEQ &
ACCOCIATES.

In its 37 years of operations the firm has expanded its expertise to include sales tax, income tax,
CA, bookkeeping and to provide internship.

VISION

 Be the preferred professional organization, trusted to deliver excellence.

MISSION

 To provide consistent, high-quality services which exceeds expectations.

 To have a practical and problem-solving approach.
 To be responsive and versatile.
 To develop knowledgeable and committed professionals as leaders.

7
 CHAPTER 4

JOB DESCRIPTIONS

8
 FROM THE APRIL 2022 TO MAY 2022

DATE TIME (Am-Pm) WROK DONE DURING THE DAYS

28/04/2022 9.30-5.00 Ledger scrutiny

Balance confirmation with supporting
2/04/2022 9.30-5.00
documents.
Vouching and preparation of financial
6/04/2022 9.30-5.00
statements

9/05/2022 9.30-5.00 Error of commission and error of omission

12/05/2022 9.30-5.00 Examining the system of internal check

Checking the arithmetical accuracy of books
18/05/2022 9.30-5.00
of accounts
Verifying the authenticity and validity of
22/05/2022 9.30-5.00
transactions

Conforming existence and value of assets

23/05/2022 9.30-5.00
and policies

9
 1. LEDGER SCRUTINY
Ledger Scrutiny means the verification of ledger accounts in detail based on the nature and
contents of ledger accounts.
Ledgers broadly classified in to
a) Asset Heads
b) Liability Heads
c) Income Heads
d) Expenses Accounts
Asset heads classified in to
1. Fixed assets
Fixed asset like furniture and fittings, pland and machinery, computer and accessories
should be verified with bills. Also asses the posting of correct head of accounts by using
ledger scrutiny
2. Current asset
Current asset like sundry debtors, advances and deposits can be verified by using sale
invoices and payments received in bank
Liability heads
Liability heads like sundry creditors, other payable accounts can be verified by checking the
bank accounts and also cross verify the same with purchase bills.
Income heads
Income heads like revenue from operation and other income should be verified by using sale
bills and also checks the nature of each income posted in the ledger
Expenses head
Expenses heads like salary, wages, telephone expenses etc. should be verified by each and
every vouchers and check the nature if transactions posted in the each head of accounts.

WORK DONE

Verified the expenses provided for in previous period have been duly adjusted against
payments and not expensed again in the current period
Verified routine periodic expenses have been duly recorded ( eg payroll contracted labor ,
security , canteen , contracted transport , interest ( expense ) , etc. , Utilities viz . rent ,
electricity , telephone , etc. )

Verified relevant prepaid expenses brought over from the previous period have been charged
/ allocated to the current period as applicable.
Verified annual expenses have been duly accounted or provided for ( viz . insurance .
license fees , rates , taxes , annual maintenance contracts , etc. )
Verified transaction entries were made on holidays.
Verified all goods received have been recorded.
Checked cash for negative balance.
Checked inventory for negative balance
10
 2. BALANCE CONFIRMATION WITH SUPPORTING DOCUMENTS
Balance confirmation is one of the methods of collecting audit evidences.
Balance confirmation from outside parties is one the best audit evidences during the
course of audit.
Example like, confirmations from sundry debtors and sundry creditors and outside
parties.

WORK DONE

Balances are confirmed with respective ledgers and collect letter of confirmation from
sundry creditors and debtors for verification

3. VOUCHING AND PREPRATION OF FINANCIAL STATEMENTS

Vouching means the verification of vouchers with supporting documents.

Following are the type of vouchers:

1. Cash vouchers
2. Bank vouchers
3. Sales vouchers
4. Purchase vouchers
5. Journal vouchers

Preparation of financial statements means the preparation of balance sheet, profit and loss
statements and other notes for the financial year ending March31 st.

WORK DONE

Ensured that accuracy of transactions.

Ensured Authenticity of transactions.
Ensured Proper classification of accounts.
Checked Voucher should be properly numbered serially and arrangement of vouchers
accordingly.
Every checked voucher should be tick marked with sign.
Ensured that amount of receipt should be same in words and in figure.
Ensured that Period of payment should be there on receipt.
Checked and investigated the books of accounts if they are in the name of Director,
Manager, Partner or any other employee of the company.

11
 Verified that proper certification of voucher should be there by any responsible officer of the
company.
Investigate about missing vouchers in file if any.

4. ERROR OF COMMISSION AND ERROR OF OMISSION

Error of commission means posting of one party’s payment in the ledger account of
other party. E.g.: Mr. ANVI’s payment maybe wrongly accounts under the Mr. SANU’s
account.
Error of omission means that a transaction maybe omitted to post in the ledger account.

WORK DONE

Verification of Errors of omission is done defined as those errors that result from a partial
or complete omission of a transaction from the account books.
Verified the errors of omission occur due to mistakes on the part of the accountant in
recording the transaction.
Ensured Errors are rectified in errors of omission by simply rewriting the entry.

Checking of Errors of commission are done that occur due to incorrect recording of
transactions in the account books.
Ensured the errors rectified in errors of commission by either debiting or crediting the
incorrect account and posting to the correct account.

5. INTERNAL CHECK
Internal check means the activity done by one person can be automatically verified by
another person within the organization.
This is a procedure set up by the organization itself to find out the errors in a timely manner.

WORK DONE

Checked by implemented on day-to-day transactions

Checked operate continuously as a part of the system

The work of each person is complementary to the work of another.

6. ARITHMETICAL ACCURACY OF BOOKS OF ACCOUNTS

Verification of arithmetical accuracy can by using the method of totaling the ledger accounts
and also verifying the opening and closing balances

12
WORK DONE

 In order to test the arithmetical accuracy of ledger prepared a statement called trial balance
7. AUTHENTICITY AND VALIDITY
Verification of authenticity and validity of transaction can done by verifying the who is
authorized person for a transaction and also verify approval from the top management is
obtained before making each and every activity or transactions.

WORK DONE

Confirmed that assets are properly accounted for in the books of accounts.

8. EXISTANCE AND VALUE OF ASSETS

Existence of assets can be verified by using physical verification fixed assets with asset
ledger.
Value of assets can be verified by checking the depreciation and method and rate of
depreciation

WORK DONE

Valuation of Assets or asset valuation is a process of determining the present market value
of the assets of the business as shown in the balance sheet of the company based on
universally accepted accounting principles.

All the information such as the description of the asset, classification, location, quantity,
purchase cost, date of purchase, details of revaluation, rate of depreciation, accumulated
depreciation, depreciation for the current year, etc. are clarified and verified information
mentioned in the asset record.

Verified the documentation of asset movements.

Verified that description of a manufacturer, serial number, and model.

13
 CHAPTER 5
SWOT ANALYSIS

14
 SWOT ANALYSIS

A SWOT analysis is a term used to describe a tool that is effective in identifying your Strengths and
Weaknesses, and for examining the Opportunities and Threats you face. While it is a basic,
straightforward model, it has been a popular business practice for many years because it helps
provide direction and serves as a basis for the development of business plans. It accomplishes this
by examining the strengths (what an operation does well) and weaknesses (what an operation does
not do well) in addition to opportunities (potential favorable conditions for an operation) and threats
(potential unfavourable conditions for an operation). Once completed, the SWOT analysis can help
determine if the information indicates something that will assist the operation in achieving its
objectives (a strength or opportunity), or if it indicates an obstacle that must be overcome or
minimized to achieve desired results (weakness or threat).

STRENGTH

 Better customer relation

 Skilled employees
 Low salary and Benefit Overhead
 Quick to Respond to Market Changes
 Light weight and flat hierarchy resulting quicker decision making

WEAKNESS

 K.M.SHAFFE & ACCOCIATES had only few employees, therefore the current employees
might feel some pressure in work
 Existing work load to high

OPPORTUNITIES

 Rise in income
 Need to increase Market Share
 Could Convert existing Products For New Markets Existing work load to high
 Internship in K.M SHAFEEQ & ACCOCIATES provides an opportunity to the interns to
understand the working environment.

THREATS

 Competitors Offer the same Products

 Cost of Technology investment
 Uncertain economy
 Business partners has little loyalty

15
CHAPTER 6

CONCLUSION

16
 CONCLUSION
From this internship I gained a lot of information about how make a complete creative. I have the
opportunity to apply acquired knowledge to real work experiences, witnessing firsthand the day-to-
day job duties they can expect to encounter in their chosen field. In addition to learning the
specialized skills of a particular field, transferable skills such as communication, teamwork, and
computer proficiency are also obtained in an internship. I had a great semester working at, K .M
SHAFEEQ & ACCOCIATES.

17