Internship Report – Aamir Salman Rizwan Chartered Accountants

Internship Report – Aamir Salman Rizwan Chartered Accountants

Acknowledgement
First and foremost, I would like to thank the Almighty ALLAH. Then, I would like to
thank my supervisor, Prof. Dr. Haleema Tariq for his assistance, ideas, and
feedbacks during the process in doing this dissertation. Without his guidance and
support, this dissertation cannot be completed on time.
Secondly, it is a pleasure to express my thanks to all respondents from interviews
and case study for sparing their time to participate in this study. I deeply
appreciate their helpfulness and willingness in providing the useful information
for this study.
Lastly, I wish to express my sincere gratitude to my family for their
encouragement and moral support.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Table of Content
Acknowledgement …………………………………………………………
Executive summary…………………………………………………...……
Introduction ………………..………………………………..………………
Profile …………………………………………………………………
Overview of organization…………………………………………...……
Vision statement…………………………………………………………
Mission statement…………………………………………..………..……
Nature of organization…………………………………………………
Product line/services …………………………………………………………
PEST analysis………………………………………………………
Hierarchy chart…………………………………………..……………
Industry ……………………………………………………………………….
Introduction to departments …………………………………………………
Auditing………………………………………………………………
Taxation…………..……………………………………..……………
Income Tax………………………………………………………………
Sales Tax………………………………………………………………
Consultancy services ………………………………………………………
Corporate services………………………………………………………
SWOT analysis………………………………………………………
Internship Report – Aamir Salman Rizwan Chartered Accountants

Table of Contents
Activities Performed during Internship
Internship at Amir Salman Rizwan Chartered Accountants
Tasks Performed………………………………………………………………..
Week1 …………………………………………………………
Week2………………………………………………………………
Week3 …………………………………………………………………
Week4………………………………………………………………….
Week5………………………………………………………………….
Week6…………………………………………………………………..
Feedback ………………………………………………………………
Conclusion ………………………………………………………
Internship Report – Aamir Salman Rizwan Chartered Accountants

Executive summary

My six weeks Internship Program work term was with the Amir Salman Rizwan.
(Chartered Accountants), Lahore. I was involved in the area of accounts during my
work term, all of which will be outlined in this report. As the main purpose of
internship is to learn by working in practical environment and to apply the
knowledge acquired during the studies in a real-world scenario in order to tackle
the problems using the knowledge and skill learned during the academic process.
There are two major projects that I had a significant role in during my internship
program.

The first project was at Onsole Pvt (Ltd). My task was to count the Stock because
we were doing stock-count there. My task was to
 Count the stock
 Re-count the stock and made a reconciliation sheet
 Audit process
 Show my supervisor what task I did.

The second project was to count the long-term asset because we were doing
asset tagging so my supervisor alongside me count the total fixed asset and later
on we added tag to them
Although I spent a lot of time learning new things, I found that I was well trained
in certain areas that helped me substantially in my projects.
This report concludes with my overall impressions of my work experience as well
as my opinion of the Internship Program.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Introduction to Chartered Accountancy in Pakistan

Institute of Chartered Accountants of Pakistan (ICAP) is a professional

accountancy body in Pakistan. As of 10 December, 2018, it had 9989 members
working in and outside Pakistan. The institute was established on July 1, 1961 to
regulate the profession of accountancy in Pakistan. It is a statutory autonomous
body established under the Chartered Accountants Ordinance 1961. With the
significant growth in the profession, the CA Ordinance and Bye-Laws were revised
in 1983.
In view of globalization of the accountancy profession, the Institute is in the
process of updating the Ordinance and Bye-Laws once again.
The course of ICAP involves a blend of theoretical education and practical training
which run concurrently for a period of 3.5 years and equips a student with
knowledge, ability, skills and other qualities required of a professional
accountant.
The head office of ICAP (Institute of Chartered Accountants of Pakistan) is located
in Clifton Karachi.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Basic Information about Firm

Name Accountant Amir Salman Rizwan (Chartered Accountants)

Year of establish 2012

Owner THREE PARTNER (Amir Salman Rizwan)

Manager Sir, Fahad

Address 359 G3, Johar Town, Lahore

Telephone +92 (42) 3522 0785

Mobile 0321 4816856

Email [email protected]

Area of Services
 Assurance
 Advisory consultancy
 TAX
 Accounts
 Corporate
 HR
Internship Report – Aamir Salman Rizwan Chartered Accountants

History of Amir Salman Rizwan (ASR)

Mr. Ahmad Salman Arshad, having qualified with Grant Thornton Anjum Rahman,
formed Salman Arshad Chartered Accountants in November 2012. Mr. Salman
also served in Grant Thornton Anjum Rahman in managerial role for three years.
As the Firm began to expand its operations, Muhammad Rizwan joined the Firm in
May 2014 and Mr. Ali Jawad Hussain in April 2015 as Directors with the motto to
foster growth and provide high-quality services to a large number of clients. Mr.
Rizwan and Mr. Ali were also previously associated with Grant Thornton Anjum
Rahman as trainees and in managerial role as well, and carry with them huge
experience of assurance and advisory.
In April 2017, Mr. Amir Shahbaz and Mr. Kashif Arif joined the firm as Partners. In
October 2018, Mr. Rizwan became Partner of the Firm. Mr. Aamir, having
qualified with Rahman Sarfraz Rahim Iqbal Rafiq, was also practicing as a Sole
Practitioner in the name and style of A. Shahbaz & Co. Chartered Accountants
since November 2012. Before starting practice, he has also served for three and
half years in a large textile listed company as Company Secretary and Finance
Manager. He has also worked in a cargo group as General Manager Finance for
one year. He is also a renowned educationist in the field of Corporate Laws in
Pakistan.
Muhammad Qasim Ijaz joined A. Shahbaz & Co. in May 2014 as Director. Mr.
Qasim was also previously associated with Grant Thornton Anjum Rahman as
trainee, and carries with him enormous experience of assurance and outsourcing
services. Effective February 01, 2019, Mr. Aamir merged business operations of A.
Shahbaz & Co. with Salman Arshad to form Aamir Salman Rizwan Chartered
Accountants; Mr. Kashif Arif retired from the Firm as Partner after reconstitution.
History of the Firm to date is short but successful and promising. Within four
months of its formation, the Firm obtained Satisfactory Quality Control Review
(QCR) Rating from the Institute of Chartered Accountants of Pakistan.
Internship Report – Aamir Salman Rizwan Chartered Accountants

The Firm also obtained Satisfactory Firm Level Review rating of ICAP in
compliance with the requirements of ISQC 1 in 2016 as soon as ICAP started this
program.
The Firm is an approved Training Organization (TO) of ICAP, and is authorized to
train CA students under ICAP bye-laws. The Firm is also Authorized Training
Employer (ATE) of ICAEW in Pakistan. Effective August 06, 2016, Firm is registered
with Audit Oversight Board. In 2018, the Firm obtained registration of Pakistan
Software Export Board (PSEB).
In June 2016 the Firm became member of Integra International in Pakistan.
Founded in 1994, Integra International has offices in almost every major business
center of the world. Integra International ranked in the top 35 accounting
networks and associations in the world on the basis of gross fees billed. Effective
January 01, 2019, the Firm is exclusive member of MSI Global Alliance in Pakistan.
With a successful track record over more than 25 years, MSI is global association
of over 250 independent legal and accounting firms in more than 100 countries.
MSI Global has 253 members worldwide. In 2017 MSI was awarded Rising Star
Association of the year by International Accounting Bulletin. MSI member firms
have global revenue of USD 1,372 million and ranks 8 among the global
accounting associations in terms of gross fees billed.
The Firm has rapidly expanded into one of the most progressive and professional
service organizations. Our senior team draws on their combined 60-year
experience to find you innovative ideas and solutions.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Firm Information

Name: Amir Salman Rizwan (Chartered Accountants)

Business Type: Partnership Firm

International Affiliation: MSI Global Alliance (ranks 8th among global Accounting
Associations)

Registration:
 Registered with Audit Oversight Board (AOB)
 Satisfactory QCR Rating from ICAP
 Registered with Pakistan Software Export Board (PSEB)
 Approved Training Organization (TO) of ICAP
 Authorized Training Employer (ATE) of ICAEW
 Registered with Federal Board of Revenue (FBR)
 Registered with Punjab Revenue Authority (PRA)
No. of Directors: 2

Total Number of Staff: 30

Internship Report – Aamir Salman Rizwan Chartered Accountants

Vision Statement

“We believe is adding value to your organization and making

mutually long-term beneficial business
relationship
by delivering high quality services
to your organization”

Mission Statement

"Our Mission is to foster decision-making and

public confidence in the Chartered accountancy
profession and commitment to excellence. We
continuously seek good ideas that convert into
positive practical advice for the benefit of our
clients and we respect and recognize the efforts
and skills of our team.”
Internship Report – Aamir Salman Rizwan Chartered Accountants

Nature of Organization
Chartered accountants provide trustworthy information about financial records.
This might involve them in financial reporting, taxation, auditing, forensic
accounting, corporate finance, business recovery and insolvency, or accounting
systems and processes. Generally, they play a strategic role by providing
professional advice, aiming to maximize profitability on behalf of their client or
employer. They work in many different settings including public practice firms,
industry and commerce, as well as in the not-for-profit and public sectors.

In public practice firms, chartered accountants provide professional services to

fee-paying clients who might be private individuals or large commercial or public
sector organizations. In commerce, industry and the not-for-profit and public
sectors, they may work in treasury management, procurement, and financial
management or in reporting roles.

Work activities of Chartered Accountant

The role of a chartered accountant can cover many aspects of financial work,
including:

• continuous management of financial systems and budgets

• undertaking financial audits
• Providing financial advice.
Internship Report – Aamir Salman Rizwan Chartered Accountants

In public practice, typical work activities include:

• liaising with clients and providing financial information and advice
• performing tests to check financial information and systems
• advising clients on tax planning and tax issues associated with activities
• maintaining accounting records and preparing accounts and
management information for small businesses
• advising clients on areas of business improvement
• detecting and preventing fraud
In commerce and industry, typical work activities involve:
• liaising with internal and external auditors
• preparing financial statements
• preparing financial management reports
• advising on tax and treasury issues
Internship Report – Aamir Salman Rizwan Chartered Accountants

Product/Services
It is vision of the Firm to provide highest quality services to its clients that
contribute towards clients’ growth as well as the economic growth at macro level.
Therefore, quality, team development and compliance with professional
standards are of utmost importance for the Firm.
We want to express our heartfelt gratitude to our clients for the trust they have
been placing in us. Since 2012, over one hundred and fifty companies have been
our clients. We have proven our expertise and experience in a number of
industries and provided professional services on a number of topics. We give
below a summary of primary services that we offer to our valued clients:
 Accounting and Bookkeeping
 Audit and Assurance
 Business and Financial Advisory
 Corporate Advisory and Compliance
 ERP Implementation
 Human Resource Consulting
 Tax Advisory and Compliance
Internship Report – Aamir Salman Rizwan Chartered Accountants

Accounting and Bookkeeping

Our professional team specializes in accounting, management information and
financial reporting services through its commitment towards enabling the
management to keep up-to-date financial information for its strategic planning
and effective decision making.
Accounts are a valuable source of financial information to help you identify
strengths and weaknesses within your business and support decision making. We
provide assistance with every aspect of your accounts function, from day-to-day
processing to the preparation of annual accounts to meet business, regulatory
and other compliance requirements. We can work with you or with your existing
accounting staff or provide a complete outsourced function, depending on your
requirements.
You can focus on your business operations, while enjoying the peace of mind that
you are meeting your statutory requirements.
Our accounting and booking keeping team provides following services:
 Assistance in Maintaining Books of Account including Data Entry
 Inventory Count
 Outsourcing of Accounting Function
 Preparation of Financial Statements & Consolidation of Financial Statements
 Preparation of Fixed Asset Register
 Preparation of Management Reports
 Training on Accounting Matters
Internship Report – Aamir Salman Rizwan Chartered Accountants

Audit and Assurance

Our audit services include performing audits of financial statements of
corporations, limited companies, partnerships, entities incorporated under special
enactments and societies. We conduct audits of clients as stipulated under the
various laws in Pakistan and also conduct them as special assignments where
requirement of audit is not mandatory. These include management audits,
internal audits including outsourcing and co-sourcing and investigations.
Our experienced team has capabilities to provide audit services to clients ranging
from large multinationals and listed companies to medium sized companies, non-
governmental / non-profit organizations and donor agencies.
In recent times, the only way to provide meaningful assurance services is to focus
on business risks and the quality of processes and controls underlying financial
reporting and management assertions. Therefore, our objective is to work with
our clients to develop practical solutions to enhance business performance.
Our assurance team provides following services:
 Agreed Upon Procedures (AUP) Engagements
 Cost Audit and Analysis
 Forensic Audit and Investigations
 Internal Audit and System Reviews
 Project Audit for Donor Organizations
 Provision of Regulatory and Other Certificates
 Regulatory Audit and Compliance Reviews
 Special Audits and Reviews
 Statutory Audits
Internship Report – Aamir Salman Rizwan Chartered Accountants

Business and Financial Advisory

To help navigate through current business challenges, we provide a
comprehensive range of services in the areas of business advisory and financial
management and have the expertise in a number of highly specialized advisory
areas particularly relevant to businesses in an uncertain economy.
Our business consulting helps organizations to improve their performance
primarily through analysis of existing organization problems and development of
plans for improvement. Our financial consulting services focus on creating and
managing enterprise value. We provide a complete suite of services to support
the CFO from performance measurement to business risk identification, improve
cash flow, streamline processes, measure and manage business performance, and
preparation and review of financial models, feasibilities.
Our advisory team provides following services:
 Budgetary Control
 Business Process Re-engineering (BPR) and Gap Analysis
 Corporate and Project Financing
 Corporate/Family Business Restructuring
 Development and Review of SOPs, Systems and Procedures
 Due Diligence
 Financial Monitoring
 Mergers and Take Overs
 Monitoring and Evaluation
 Pre-Award and Organizational Assessments
 Preparation and Review of Business Plan and Feasibility Study
 Preparation of Family Constitution
 Training on SOP Best Practices
 Transaction Advisory
Internship Report – Aamir Salman Rizwan Chartered Accountants

Corporate Advisory and Compliance

Our corporate advisory team provides the strategic information you need to
assess change and provide an extension to your staff for help with your unique
needs. You will have the knowledge needed to improve the learning curve and
organizational performance.
Our corporate advisory and compliance team provides following services:
 Assistance and Advice in Setting-up of Corporate/Group Structures
 Assistance in Incorporation of Companies/Businesses
 Corporate Technical Advice/Opinions
 Establishing Branch Office in Pakistan
 Liquidation and winding up of Companies
 Listing of Companies on Stock Exchange
 Mergers and Acquisitions
 Secretarial Compliance
 Training on Various Corporate Laws
Internship Report – Aamir Salman Rizwan Chartered Accountants

ERP Implementation
Our objective in providing IT services is to assist you in automating the business
processes of your organization and to resolve the information system glitches to
align your IT function to your strategic goals.
ASR team has experience in handling all aspects of ERP implementation so that:
 Your ERP system is implemented timely;
 You have the information system based on best practices; and
 Your information system provides timely, accurate and meaningful information
for decision making
Internship Report – Aamir Salman Rizwan Chartered Accountants

Human Resource Consulting

In the New Age business world, speed, technology and premium on quality are
the key attributes for success in the corporate sector around the globe. Our Firm
is committed to enhancing corporate organizational capabilities that enable them
to keep ahead of the competition and meet the changing demands of their
business.
Our HR services help our clients create a competitive advantage through effective
use of their human capital. As a well-established professional services firm, our
consultants are experienced in a wide spectrum of human resources consulting
projects.
Our HR team provides following services:
 Annual Performance Evaluations
 Compensation and Benefits Planning
 Drafting and Reviewing Employment Agreements
 Executive Search and Recruitment
 Strategic Planning for HR
 Training and Development
Internship Report – Aamir Salman Rizwan Chartered Accountants

Tax Advisory and Compliance

There is no reason to pay more than you have to. With our expert advice, and our
detailed knowledge of your business, we are ideally placed to identify tax
planning opportunities and take steps to minimize your taxes. We work with the
clients including sole proprietors, limited companies and other corporations to
prepare tax computations, file tax returns, and telling you what tax is due and
when.
Our taxation team provides following services for both direct and indirect taxes:
 Approvals/Exemptions from Tax Authorities
 Business Restructuring from Tax and Regulatory Perspective
 Computation of Tax Liability
 Filing of Tax Returns, Certificates, etc.
 Personal Taxation
 Providing Tax Opinions
 Representation before Tax Authorities, Appellant Tribunal and Hon’ble Courts
 Tax Accounting
 Tax Advisory for Individual Transactions
 Tax Planning
 Tax Registrations including NTN
 Tax Withholding.
Internship Report – Aamir Salman Rizwan Chartered Accountants

PEST Analysis

Political, Governmental, and Legal Forces

Political stability and importance of Business Software & Services sector in the
country's economy.
Risk of military invasion
Level of corruption - especially levels of regulation in Technology sector.
Bureaucracy and interference in Business Software & Services industry by
government.
Legal framework for contract enforcement
Intellectual property protection
Trade regulations & tariffs related to Technology
Favored trading partners
Anti-trust laws related to Business Software & Services
Pricing regulations – Are there any pricing regulatory mechanism for Technology
Taxation - tax rates and incentives
Wage legislation - minimum wage and overtime
Work week regulations in Business Software & Services
Mandatory employee benefits
Industrial safety regulations in the Technology sector.
Product labeling and other requirements in Business Software & Services
Internship Report – Aamir Salman Rizwan Chartered Accountants

Economic Forces
Type of economic system in countries of operation – what type of economic
system there is and how stable it is.
Exchange rates & stability of host country currency.
Efficiency of financial markets
Infrastructure quality in Business Software & Services industry
Comparative advantages of host country and Technology sector in the particular
country.
Skill level of workforce in Business Software & Services industry.
Education level in the economy
Labor costs and productivity in the economy
Business cycle stage (e.g. prosperity, recession, recovery)
Economic growth rate
Discretionary income
Unemployment rate
Inflation rate
Interest Rate

Social, Cultural, and Demographic Forces

Health consciousness
Education level
Attitude towards imported goods and services
Attitude towards Work Leisure and Retirement
Attitude towards saving and investing
Buying habits
Internship Report – Aamir Salman Rizwan Chartered Accountants

Technological Forces
Basic Infrastructure Level
Rate of technological change
Spending on research and development Technology incentives
Access to newest technology
Internet, infrastructure and penetration
Internship Report – Aamir Salman Rizwan Chartered Accountants

Organizational Structure:
The firm is a Partnership between Amir Salman and Rizwan. The structure of the
firm is as following:

Ahmad Salman Arshad FCA

Senior Partner- Assurance and Tax
Salman is Founder of the Firm. He established ‘Salman Arshad’ in November 2012.
As of 1st February 2019, the name of Firm is now ‘Aamir Salman Rizwan’. He is
particularly expert in housing & real estate, power, textile, manufacturing,
pharmaceutical, retail and distribution sectors. His professional experience spans
over a period of more than 13 years.
Salman has established himself as a renowned assurance and tax expert. He is
also member of several committees of the Institute of Chartered Accountants of
Pakistan (ICAP) and Lahore Tax Bar Association (LTBA). He also taught ‘Auditing’ at
Punjab Group of Colleges for a couple of years.
In the past, Salman held managerial position in ‘Assurance Department’ of Grant
Thornton Anjum Rahman for three years. Having worked for a number of years at
GT as an assurance expert, Salman enjoys excellent relations with large national
and multinational clients. At GT, he was considered to have hands-on skills with
GT Assurance tools Audit CARE, GT Explorer and Voyager.
Salman has worked with a large variety of clients such as DG Khan Cement
Limited, Dawood Hercules Chemicals Limited, ICC Textiles Limited, Master Textile
Mills Limited, National Bank of Pakistan, State Life Insurance Corporation of
Pakistan, National Bank Modaraba Management Company Limited, Punjab Seed
Corporation, Punjab Educational Endowment Fund, Allied Bank Limited and First
National Equities Limited. He has also provided services as a financial expert for
Nandipur Power Project. He was engagement partner for a nation-wide specific
cost verification project of EU Delegation to Pakistan and a number of forensic
audits of housing societies on orders of the Hon’ble Supreme Court of Pakistan.
Internship Report – Aamir Salman Rizwan Chartered Accountants

AAMIR SHAHBAZ FCA

Senior Partner- Tax and Advisory
Aamir is Founder of ‘A. Shahbaz & Co.’, which he established in November 2012.
As of 1st February 2019, the Firm is now part of ‘Aamir Salman Rizwan’. He is
particularly expert in food & beverages, IT & telecom, hospitality, power and
textile sectors. His professional experience spans over a period of more than 15
years.
Aamir specializes in tax matters, corporate laws, secretarial compliances, and ERP
implementation. He is also member of several committees of the Institute of
Chartered Accountants of Pakistan (ICAP) and the Lahore Tax Bar Association
(LTBA). He is a long-time lecturer of Corporate Laws at Professionals’ Academy of
Commerce (PAC).
In the past, Aamir held managerial position as ‘Company Secretary and Finance
Manager’ in a large listed textile unit for three and a half years. He also worked as
General Manager Finance in a large cargo group for one year. This variant
experience has equipped him with hands-on experience of information systems,
secretarial and tax matters.
Aamir was previously also associated with Rahman Sarfraz Rahim Iqbal Rafiq.
Some of his significant assignments include ERP implementation at Bundu Khan
Foods (Private) Limited, Business Restructuring and Family Constitution of Bundu
Khan Foods (Private) Limited, ERP implementation at Nishat Chunian Limited,
development of SOPs at Hijaz Social Welfare Society, BPR of Seven Oceans
Enterprises (Private) Limited and BPR of TAQ Group of Companies. He has also
provided taxation services to some CPEC projects such as Sahiwal Coal Power
Plant and Port Qasim. To his credit also goes Corporate Governance training to
executive of Bank-e-Millie Afghan, Afghanistan.
Aamir is Fellow member of ICAP.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Muhammad Rizwan ACA

Partner- Assurance and Advisory
Rizwan played a significant role in growth of ‘Salman Arshad’ along with Salman
after joining the Firm in May 2014. He is Partner of Assurance and Advisory
services. His additional responsibilities include talent management and assurance
quality management of ‘Aamir Salman Rizwan’. He is particularly expert in
housing & real estate, engineering & construction, rice & flour mills, NPO and
public sectors. His professional experience spans over a period of more than 11
years.
Rizwan specializes in systems and procedures, financial reporting, business
planning & analysis and risk advisory. He also writes blogs and articles on a
number of topics including financial reporting and financial management.
In the past, Rizwan held managerial position in ‘Assurance Department’ of Grant
Thornton Anjum Rahman for three years. He has also served as ‘Manager Finance’
in a large real estate housing group. Having worked for a number of years at GT as
an assurance expert, Rizwan developed excellent approach towards assurance
quality and financial reporting. At GT, he was considered to have hands-on skills
with GT Assurance tools Audit CARE, GT Explorer and Voyager.
He has provided services to a large variety of clients such as National Bank
Modaraba Management Company Limited, Allied Bank Limited, Atlas Bank
Limited, Meezan Bank Limited, Hyundai Engineering (Private) Limited, Punjab
Seed Corporation, Eden Group, ICC Textiles Limited, Master Textile Mills Limited,
Walters Power International Pakistan and Punjab Provincial Cooperative Bank
Limited.
He has also provided services in supporting role to Superior Courts in the cases
such as Habib Bank Limited vs Needle Point (Private) Limited and State Life
Insurance Corporation of Pakistan vs Ms. Anwar Gulzar and others. He was also
team leader for a nation-wide specific cost verification project of EU Delegation to
Pakistan and a number of forensic audits of housing societies on orders of the
Hon’ble Supreme Court of Pakistan. He has also worked as a team member in
supervisory role for pre-award assessments of LUMS and WAPDA on behalf of
USAID.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Ali Jawad Hussain

Director Assurance
Ali joined ‘Salman Arshad’ in April 2015 and played a pivotal role in growth of the
assurance practice of Firm. He is Director of Assurance services. He is particularly
expert in microfinance, textile, sugar, manufacturing, media & publishing,
petroleum and NPO sectors. His professional experience spans over a period of
more than 11 years.
Ali specializes in systems and procedures, financial reporting, and all types of
assurance services. He is also a seasoned biker, and is active member of a
professional bikers’ community in Lahore namely ‘Cross Rout Club’.
In the past, Ali held managerial position in ‘Assurance Department’ of Grant
Thornton Anjum Rahman for three and a half years. He has also worked as
‘Manager Finance’ for a large wind power project. Having worked for a number of
years at GT as an assurance expert, Ali developed excellent approach towards
assurance engagements and financial reporting. At GT, he was considered to have
hands-on skills with GT Assurance tools Audit CARE, GT Explorer and Voyager.
There are thirty employees working in ASR Chartered Accountants in Tax, HR,
Internal Audit and external Audit.
They report to manager and manager report to Director who are answerable to
the Partners.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Muhammad Qasim Ijaz APFA

Director- Tax and Advisory
Qasim joined ‘A. Shahbaz & Co.’ in May 2014 and played a pivotal role in growth
of tax and outsourcing practice of Firm. He is Director of Tax and Advisory
services. He is particularly expert in textile, manufacturing, media & publishing,
power, construction, hospitality, and foods & beverages sectors. His professional
experience spans over a period of more than 9 years.
Qasim specializes in tax matters, secretarial compliances, systems and
procedures, and bookkeeping services. He is also a researcher on eatery habits of
people in Lahore and operates a Facebook page for disseminating research results
to his page audience.
In the past, Qasim was also associated in senior position with ‘Assurance
Department’ of Grant Thornton Anjum Rahman. Having worked for a number of
years at GT as an assurance adept, Qasim developed excellent approach towards
assurance engagements. Later, he improvised his tax, secretarial and bookkeeping
skills.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Industry
Asset Management
Asset management refers to the process of developing, operating, maintaining,
and selling assets in a cost-effective manner. Most commonly used in finance, the
term is used in reference to individuals or firms that manage assets on behalf of
individuals or other entities.
Importance of Asset Management

1. Enables a firm to account for all of its assets

The process makes it easy for organizations to keep track of their assets,
whether liquid or fixed. Firm owners will know where assets are located, how
they are being put to use, and whether there have been changes made to
them

2. Helps guarantee the accuracy of amortization rates

Since assets are checked on a regular basis, the process of asset management
ensures that the financial statements record them properly

3. Helps identify and manage risks.

Asset management encompasses the identification and management of risks
that arise from the utilization and ownership of certain assets. It means that a
firm will always be prepared to manage any risk that comes its way.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Banking and Securities

Their FSI practice provides tailored solutions for organizations in the banking
and securities industry, as it faces up to the complex issues of today’s global
marketplace. We understand the issues you face. We track the pressing trends
and challenges, and assess the implications for your business.

1. Audit of financial statements in accordance with International Accounting

Standards
2. Assistance with the adoption of International Financial Reporting
Standards (IFRS), including the development of overall plan, training
programs, preparation of necessary resources and financial reporting
system development
3. Audit of financial statements in accordance with International Financial
Reporting Standards (IFRS), US Generally Accepted Accounting Principles
(US GAAP) or other international standards (also as part of IPO
preparation)
4. Quarterly/half-year review of financial statements
5. Services related to floating and placement of securities, including the
preparation of comfort letters.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Others
Apart from asset management and banking factor ASR also deals in several
industries which are as following:

1. Cement Industry
2. Chemicals Industry
3. Insurance
4. Leather
5. Education
6. Engineering
7. Food and Beverages
8. Healthcare
9. Media
10. Microfinance Industry
11. Modarabas
12. Not for Profit (NGO)
13. Oil and Gas
14. Pharmaceutical
15. Plastic Manufacturing
16. Power
17. Public sector
18. Real Estate and Construction
19. Rice and flour mills
20. Sugar Industry
21. Tech Industry
22. Telecommunication Industry
23. Textile Industry
24. Trading
25. Beauty and Salon
Internship Report – Aamir Salman Rizwan Chartered Accountants

Introduction to Departments

AUDITING

3.1. Origin of Auditing

Usually, origin of audit is traced to the Middle Ages, but in fact the
introduction of large-scale production gave birth to audit, after the
industrial revolution during the 18th century.

In the beginning there was small-scale production, the technology was

simple and has a low capital. But with the passage of time, these things
were all improved and enlarged and thus proper checking of them
became very much necessary in the audit that resulted in the great
demand for audit services.

3.2. History of Auditing in Pakistan

After its emergence on August 14, 1947, Pakistan adopted the Auditor’s
Certificate Rules, 1932 for regulating the audits and accounting
profession. Necessary amendments were made in 1950 on the affairs of
the accountancy profession and were then administered under the
Auditor’s Certificate Rules 1950.

In the 1950, Registered Accountants Firms formed a private body

Known as “Pakistan Institute of Accountants” with the objects and
ultimate goal of having an autonomous association in the country. So
the institute of Chartered Accountants of Pakistan was established on
July 01, 1961.
Internship Report – Aamir Salman Rizwan Chartered Accountants

3.3. Definition of Auditing

The word audit is derived from the Latin word “AUDIRE” which means
“To Hear”.
In the past whenever the owner of the business suspected fraud, they
appoint certain individuals to check the accounts. Such persons hear
the accountants whatever they had to say in connection with the
accounts.

The international standards on auditing (ISA) have defined the term

audit as
“An independent examination of financial statements or related
information of an entity whether profit oriented or not, and irrespective
of its size, or legal form, when such an examination is conducted with a
view to expressing an opinion thereon”.
An audit therefore is such an examination of the books, accounts and
vouchers of a business, which will enable the auditor to satisfy himself
that the balance sheet is properly drawn up, and give a true and fair
view of the state of the affairs of the business, and whether the profit
and loss account gives true and fair view of the profit and loss for the
financial period, according to the best of information and explanation
given to him and as shown by the books, and it not, in what respect he
is not satisfied.

From the above definition it as clear that an auditor has not only to see
the arithmetical accuracy of the books of account but also has to go
further and find out whether the transactions entered in the books of
the original entry are correct or not.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Objectives of Auditing

To Verify Financial Statement

The auditor has to verify the accounts and financial statements
prepared by the clients. The auditor’s responsibility with respect to his
appointment as auditor is to verify each and every transaction
thoroughly.

To Discover Errors and Fraud

The auditor has to discover errors and frauds, if any, which might have
been committed intentionally or unintentionally. In fact, it is a very
difficult task to discover intentional errors and frauds. Sometimes there
is possibility that clients may not provide actual facts and figures and, in
such case, it is so difficult for the auditor to detect an error or
misstatement in financial statements.

To Prevent Errors and Fraud

Detection of frauds is considered to be one of the most important
duties of an auditor. As a matter of fact, originally audit was conducted
mainly with a view to detect fraud whenever it was suspected. The
system of internal check aims at the prevention of fraud. In this way if
the staff of the accounts department knows that the accounts prepared
by them are subject to audit, they are very careful to see that no fraud
or errors is committed.
Internship Report – Aamir Salman Rizwan Chartered Accountants

.
Types of Auditing

There are mainly two types of audits:

1. Internal Audit
2. External Audit

Internal Audit
Internal audit is the independent appraisal activity within an
organization, established and provided as a service to the entity. Its
functions include, amongst other things, evaluating and monitoring the
design, implementation and effectiveness of internal control.

In other words, internal audit consists of continuous critical review of

financial and operating activities by a staff of auditors functioning as
full-time salaried employees. Internal audit implies an audit of the
accounts by the employees of the business. A separate staff that may or
may not have professional audit qualification does the work. The
function of the internal auditor is same as that of an auditor.

In internal audit a management report is prepared by the internal audit

department. The auditor has to report to the management that the
system and policies prescribed by them have been implemented,
whether the internal control and internal check established were
adequate, whether the actual result obtained were varying from the
estimate enable the management to achieve the objective of the
company in the planned manner. Impartial qualified chartered
accountant does the internal audit. In internal audit the management
wishes that the auditor discovers as many errors as possible so that
they can be efficiently prevented.
Internship Report – Aamir Salman Rizwan Chartered Accountants

External Audit

External audit is conducted to report to the members of the company.

It is obligatory audit in which the members appoint external auditors.
The auditors only check the system and policies of the business. He has
only to check the accounts and express their opinion about the accuracy
or inaccuracy of the accounts to ensure whether financial statements
present true and fair view in all respects and are free from all types of
errors or frauds whether material or immaterial and provides following
type of assurance about the facts and figures of audit to the
shareholders of the company:

• Absolute Assurance
• Reasonable Assurance; or
• Limited Assurance

. Auditing Procedures
Auditor shall perform the following activities while conducting an audit
engagement:

• Preliminary Engagement Activities,

• Determining Materiality,
• Risk Assessment,
• Determining Overall Audit Strategy & Developing Audit Plan,
• Obtaining Audit Evidence,
• Forming Opinion
• Submission of Auditor’s Report
Internship Report – Aamir Salman Rizwan Chartered Accountants

Preliminary Engagement Activities

Before start of each audit, an auditor shall perform following

preliminary engagement activities:
• Perform acceptance and continuance procedures
• Evaluate compliance with legal and ethical requirements
• Establish an agreement on terms of audit engagement

Determining Materiality

“Misstatements, including omissions, are considered to be material if

they, individually or in aggregate, could reasonably be expected to
influence the economic decisions of users taken on the basis of the
financial statements.”

Determination of materiality has much significance during conduct of

an audit as it can have an immense influence on the decisions that users
of financial statements make in capacity of a stakeholder.

. Determining Overall Audit Strategy & Developing Audit Plan

In this phase the auditor determines overall audit strategy and develops
an audit plan to detect any misstatements or fraud in the financial
statements. Adequate planning of audit helps an auditor in the
following ways:
Internship Report – Aamir Salman Rizwan Chartered Accountants

• Helps to organize the engagement to perform it in an efficient and

effective manner.
• Identifies important areas of audit to devote attention.
• Helps to select the engagement team and assign work to them.
• Facilitates direction, supervision and review of work.
• Problems are identified and resolved on timely basis
• Assists in coordination with management, component auditors and
experts.

Risk Assessment

In this phase auditor performs following risk assessment procedures to

obtain understanding of the entity and its internal control:
• Inquires of management and others within the entity
• Observation
• Inspection
• Analytical procedures

Obtaining Audit Evidence

Audit evidence is the information used by the auditor in arriving at the

conclusions on which the auditor’s opinion is based. It can be either
underlying evidence or corroborative evidence.

Auditor shall obtain sufficient appropriate audit evidence from different

sources by performing audit procedures. Audit evidence is necessary to
support the auditor’s opinion and report.

An auditor can obtain audit evidence by performing audit procedures,

from following sources i.e.

1. Internal Source
2. External Source
Internship Report – Aamir Salman Rizwan Chartered Accountants

 Internal Sources
• Checking of accounting records (e.g., through verification, analysis,
re-performance or re-calculations etc.)
• Inquiries or representations from management
• Minutes of meetings

 External Sources
• External confirmations (e.g., from debtors, creditors, bankers,
lawyers)
• Industry data (e.g., inspection of trade and economic journals,
regulatory and financial publications, reports by analysts, banks or
related agencies).
Audit is a very complex process and requires the auditor to remain alert
to the conditions and events that may lead to material misstatements
whether due to error or fraud.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Forming Opinion
Opinion always remains most vital part of the work performed. After
completion of the audit and obtaining sufficient appropriate audit
evidence an auditor has to form an opinion whether financial
statements present true and fair view in all material respects.

Opinions are of following types:

• Unmodified Opinion (Unqualified/Standard opinion)
• Modified Opinions
• Qualified Opinion
• Adverse Opinion
• Disclaimer of Opinion

Submission of Auditor’s Report

After completion of the audit, auditor’s report is submitted to the
members/shareholders of the entity.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Audit Programs
An audit programmed is a written scheme of the exact details of the
work to be done by the auditor and his staff in connection with a
particular audit.
The audit program must be developed with due care and particular
attention should be given to the following.
• Exact scope of duties of an auditor
• Books of original entry and ledger in use
• The system of book keeping employed and its weaknesses
• System of internal check and the extent of its reliability
• Special provisions contained in the legal documents (e.g.,
Partnership Deed, Memorandum and Articles of Association)
affecting the duties of an auditor.
• General nature and routine of the business

Duties and Responsibilities of Students and Principal of CA Firm

The duties and obligations of a student in a CA firm are:

• He will throughout his term of training serve in his principal’s office

on his principal’s business.
• He will not at any time during the said term destroy, cancel, spoil,
embezzle or take copies of books, papers, plans, documents, monies of
his principal, partner or of his clients.
• He will at all times keep the secrets of the principal or his partner or
of their clients.
• He will readily obey and execute the lawful and reasonable
commands of the principal during the said term.
Internship Report – Aamir Salman Rizwan Chartered Accountants

How to Conduct Audit

The audit work is operated with the help of the following techniques:

• Ticking
• Casting
• Calling over
• Vouching
• Verification
• Reporting

Ticking
Ticking indicates the placing of a mark against an entry in the book to
denote that the auditor has examined it for a certain purpose. Variously
shaped marks are used to denote checking of additions, posting, carry-
forward, tracing, extraction of balances etc. Ticks are generally put in
indelible pencil, although some auditors also use pen and ink for this
purpose.
To ensure consistency, most of the good auditors use a tick chart, which
is required to be learnt by heart by all the members of the audit staff.
Casting
Casting refers to the checking of additions of books of accounts and
financial statements. It is essential that arithmetical accuracy be
checked so that frauds or errors (if any) may be detected. A junior
member of audit staff normally does this job. Most of the auditors use
mechanical appliances or adding machines to check the casting of the
books of accounts.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Calling Over
A sizable part of the work of audit consists in the comparison of entries
in two or more books of an entry in a book with its supporting evidence
or voucher. This is usually carried out by two clerks, one reading the
item to the other. Care should be used to see that the whole of the
important detail of each item is checked and not merely the amount.
Special care in checking postings to personal ledgers is needed as to
names and title of account; otherwise, a wrong posting may remain
undetected.
Vouching
The function of the voucher is to authenticate an entry and the auditor
must satisfy himself that it does this. It must correspond in date and
account to the entry in the books. It must be in respect of the entire
client and entry must be correctly passed in the books. The act of
vouching consists of checking the documentary evidence such as;
• Invoices.
• Cash memos.
• Bills.
• Receipts.
• Vouchers.
• Minutes.
Reference to legal documents etc. as should establish the accuracy and
truthfulness of the entries appearing in the books of account, and in
those cases where it is not so, the matters are noted for discussion and
if the auditor still remains unsatisfied, the outstanding matters are
reported to the client.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Verification
When an auditor has vouched the entries appearing in the books of
account, his duty is not thereby fully discharged. If appointed for audit
under the act, he has to report whether or not the balance sheet
exhibits a true and fair view of the state of affairs of the company. For
this purpose, he should satisfy himself on the following points:
• That each asset and liability is correctly valued and correctly stated in
the balance sheet.
• That the assets actually existed at the date of the balance sheet.
• That they are not property of the business.
• That they are not suffering from a charge except that disclosed in the
balance sheet.
The techniques of audit carried out to achieve the foregoing objectives
are known as verification.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Reporting
After the above steps have been carried out, the auditor will then be
required to submit his report. The form and the contents will depend
upon several factors, e.g., the legal status of the appointing authority,
the contract for the scope of work to be done, whether the audit is
being conducted under the Companies Ordinance 1984, Banking
Companies Ordinance 1962, Insurance Act, 1938, etc. The form of
auditor report to be submitted after the annual audit of accounts of a
company has been prescribed as Form 35-A annexed to the Companies
Ordinance, 1984.Modern trends follow the under noted sequence:

• Examination of the Accounting System.

• Evaluation of Internal Controls.
• Sample Checking of Vouchers.
• Verification of Assets and Liabilities.
• Submission of Auditor’s Report

Auditor’s Report
The auditor's report is a formal opinion, or disclaimer thereof, issued by
either an internal auditor or an independent external auditor as a result
of an internal or external audit or evaluation performed on a legal
entity or subdivision thereof.
The auditor after checking the books and record of the company or any
type organization and after satisfying himself that financial statements
are free from any mis-statement whether due to error or fraud writes
an audit report. The auditor’s report is very essential for users of the
financial statements. The credit institutions, which gives credit to the
company dependent upon the auditor’s reports, similarly the
government institutions which gives donation to the NGOs, depends
also on the auditor’s report.
Internship Report – Aamir Salman Rizwan Chartered Accountants

The typical audit report contains three paragraphs, which cover the
following topics:
• The responsibilities of the auditor and the management of the entity.
• The scope of the audit.
• The auditor's opinion of the entity's financial statements.
An audit report is issued to a user of an entity's financial statements.
The user may rely upon the report as evidence that a knowledgeable
third party has investigated and rendered an opinion on the financial
statements. An audit report that contains a clean opinion is required
by many lenders before they will loan funds to a business. It is also
necessary for a publicly-held entity to attach the relevant audit report
to its financial statements before filing them with the Securities and
Exchange Commission of Pakistan.

Taxation
Introduction
The rang of CA firm in the area of taxation covers personal and
corporate tax planning supplemented by representation on behalf to
client before the central board of revenue obtaining clarification etc,
and before Assessing and Appellate Authorities.
These services are in follows
 Tax planning.
 Personal taxation.
 Corporate taxation
Internship Report – Aamir Salman Rizwan Chartered Accountants

At the time of separation, the highest and the administrative executive

authority for revenue collection in Pakistan is the central Board of
Revenue (C.B.R), which was constituted under CBR Act 1924. It is a
statutory body appointed by the central government for the purpose of
tax collection in the country. The Board consists of few members and all
the revenue authorities are subordinate to it. Central board of Revenue
is responsible for collection of revenue income come from income tax\,
sales tax, wealth tax and excise duty and there are various departments
like income tax and sales tax departments for the collection of such
taxes.
A Chartered Accountant firm deals in the area of income tax, sales tax
and wealth tax on behalf of its clients including individuals, firm and
corporation etc., we will discuss tax, income tax, wealth tax and sales
tax in separate sections.
 Income Tax
 Sales Tax
INCOME TAX
Income tax is the major source of revenue collection by C.B.R income
tax departments is responsible in the country for the collection of
income tax law provides guideline for the proper administration of the
whole system.
Internship Report – Aamir Salman Rizwan Chartered Accountants

SOURCES OF income tax law:

1- The income tax ordinance 2001.
2- The income tax rules 2005.
3- The income tax Appellate tribunal1981.
4- Notification issued by Central Board of revenue. 5-Notification issued
by federal Government.
6- Circulars, instructions and orders issued by C.B.R
7- Case law i.e., orders of Supreme Court, High court, Income Tax
Appellate tribunal, Appellate Audit and Additional Commissioners of
Income Tax.

Heads of income (Under section 11)

(1) For the purposes of the imposition of tax and the computation
of total income, all income shall be classified under the following heads,
namely:
(a) Salary; Section 12

(b) Income from Property; Section 15

(c) Income from Business; Section 19

(d) Capital Gains; and Section 37

(e) Income from Other Sources. Section 39

Internship Report – Aamir Salman Rizwan Chartered Accountants

(2) Subject to this Ordinance, the income of a person under a

head of income for a tax year shall be the total of the amounts derived
by the person in that year that are chargeable to tax under the head as
reduced by the total deductions, if any, allowed under this Ordinance to
the person for the year under that head.
(3) Subject to this Ordinance, where the total deductions allowed
under this Ordinance to a person for a tax year under a head of income
exceed the total of the amounts derived by the person in that year that
are chargeable to tax under that head, the person shall be treated as
sustaining a loss for that head for that year of an amount equal to the
excess.
(4) A loss for a head of income for a tax year shall be dealt with in
accordance.
(5) The income of a resident person under a head of income shall
be computed by taking into account amounts that are Pakistan-source
income and amounts that are foreign-source income.
(6) The income of a non-resident person under a head of income
shall be computed by taking into account only amounts that are
Pakistan-source income.
For the computation of tax payable assesses may be divided into the
following categories.

(a) Individual, Artificial Judicial Person

(b) Registered firm
 Company
 Local Authority
 Cooperative Society
Internship Report – Aamir Salman Rizwan Chartered Accountants

For the purpose of rates of tax, a company may either be a

1. Public Company
2. Private Company
3. Banking Business
4. Modaraba Company

Filling of Return of income Tax

The total income of any person in respect of which such person is
assessable, for an income year exceeds the maximum amount which is
not chargeable to tax under the tax ordinance or who has been charged
to tax in any of the four preceding income years or who owns a motor
vehicle or who subscribes a telephone, or who owns immovable
property with land area 250 sq yards located in the limits of
Metropolitan corporation, municipal corporation, a cantonment board
or Islamabad Capital territory, who has undertaken foreign travel
except for the purposes of Haj, Umrah or ziarat during the year.

Sale Tax
A Sales tax is imposed on the sales of goods and services, it is collected
by the retailer at the point of sales and is computed on a fixed
percentage of the retail price. Sales tax department, which comes under
the central Board of Revenue, is responsible for the collection of sales
tax under the sales tax Act 1990.
Tax Period
Tax period means a period of one month or such other period as the
Federal Government may specify in the official gazette by a notification.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Registration
Every person or entity ho makes a taxable supply in Pakistan in the
course of any taxable activity carried out by him and whose total
turnover from taxable supplies made in any period exceeds Rs. 2.5
million in case of manufactures and Rs. 5 million in case of retailers.

Services of CA firm related to Sales Tax:

1- Chartered Accountants firms provide services to its clients for the

registration under sales tax act 1990.
2- The Central Board of Revenue has also appointed Ghaffor & Co under
section 32(A) of the sales tax act 1990 for the audit of business
concerns.
3- Chartered Accountants firm provides all types of consultancy services
in the area of sales tax.
4- They help their clients in compilation of Sales Tax Return. In a CA firm
sales tax consultants also go for hearing of appeals for refund before
collectorate of sales tax on behalf of its clients. It also appeals for claims
against additional taxes.
Internship Report – Aamir Salman Rizwan Chartered Accountants

CONSULTANCY SERVICES
Chartered Accounts firm provides number of services to its clients i.e.
individuals, firm, corporation, Association of persons etc.
There are some major consultancy services, which is provided by the
Chartered Accounts firm.
 Feasibility report.
 Pre-investment proposals.
 Disinvestment’s report.
Feasibility report is the Pre-investment of forecasting for investments
prepared by a Chartered Accounts firm. Feasibility report is the Pre-
investment planning before the starting of a project. Feasibility report
are prepared to show future investment, costs and applicability of the
plan of a project and forecasting of profits for coming five years and
give report of disinvestments about any firm or Chartered Accountant
firm.
Internship Report – Aamir Salman Rizwan Chartered Accountants

CORPOTATE SECTOR SERVICES

SOME ABOUT SECURITY EXCHANGE COMMISSION OF PAKISTAN (SECP)

The Securities and Exchange Commission of Pakistan has succeeded the

erstwhile Corporate Law Authority, which was an attached Department
of Ministry of Finance. The process of restructuring the Authority was
initiated in 1997 under the Capital Market Development Plan of the
Asian Development Bank (ADB). A Securities and Exchange Commission
of Pakistan Act was passed by the parliament and promulgated in
December 1997. In pursuance of this Act, the Securities and Exchange
Commission of Pakistan, having autonomous status, became
operational from January 1st 1999.
The Act of Securities and Exchange Commission of Pakistan
institutionalized certain Policy decisions relating to the Constitution and
Structure of Commission, its powers and functions giving administrative
authority and financial independence to carry out the reform program
of Pakistan’s capital Market with assistance of Asian Development Bank
(ADB). Powers of the Commission have been delegated to the individual
Commissioners and Appellate Benches, as envisaged in the Act.
The Commission became operational in January 1999, and it has come a
long way since then. The scope of the authority of the commission has
been extensively widened. The Insurance Sector, Non-Banking Financial
companies, Pension Funds have since been added to the purview of the
Commission.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Now the Commission Mandates includes the entire Non-Banking

Financial Sector i.e. Investment Financial services, Leasing Companies,
Housing Finance Services, Venture Capital Investment, Discounting
Services, Investment Advisory Services and Asset Management Services
etc. The Commission has also been delegated powers, which the federal
Government had, in regulating various External Service providers that
are linked to the corporate sector, like chartered Accountants; rating
agencies, cooperate Secretaries and others. So the challenge of the SEC
has amplified manifold with the increased mandate it now has.
The major areas in which the services are performed by Chartered
Accountant firms are mentioned below:
 Rectification and change of company’ s names and company’
management.
 Alteration in Memorandum or Articles of Association.
 Issue of shares or filling return of allotment and increase in paid up
capital up.
 Transfer of share from one to other shareholders and management.
 Issue of debentures, which are transfer from thereof.
 Formation of trusts, preparation of trusts deed and related
documentation.
 Preparation of prospectus for public issue.
 Appointment of subsequent chief executives and matters related to
chief executives and
other directors.
Internship Report – Aamir Salman Rizwan Chartered Accountants

 Professional assistance in holding and completion of legal

formalities in case of
extraordinary general, meetings and other board’s proceedings.
 Settlement of disputes as arbitrators or through arbitrators and

 Winding up of companies, companies and complete professional

assistance until complete liquidation process.
Internship Report – Aamir Salman Rizwan Chartered Accountants

• Specimen of Independent Auditor’s Report According to ISA-700

Board of Directors, Stockholders, Owners, and/or Management of
ABC Company,
123 Main St.
Anytown, Any Country

We have audited the accompanying financial statements of ABC

Company, which comprise the statement of financial position as of
December 31, 20XX, and the statement of comprehensive income,
statement of changes in equity and statement of cash flows for the year
then ended, and a summary of significant accounting policies and other
explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of
these financial statements in accordance with International Financial
Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to
fraud or error.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements
based on our audit. We conducted our audit in accordance with
International Standards on Auditing. Those standards require that we
comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
entity's preparation and fair presentation of the financial statements in
order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly,
in all material respects, (or give a true and fair view of) the financial
position of ABC Company as at December 31, 20XX, and (of) its financial
performance and its cash flows for the year then ended in accordance
with Applicable Financial Reporting Framework.
Internship Report – Aamir Salman Rizwan Chartered Accountants

AUDITOR'S SIGNATURE
Auditor's name and address
Date
The auditor’s report shall be dated no earlier than the date on which
the auditor has obtained sufficient appropriate audit evidence.
Internship Report – Aamir Salman Rizwan Chartered Accountants

• Specimen of Independent Auditor’s Report According to (Form 35A

of Companies Ordinance 1984)

We have audited the annexed balance sheet

of ...............................................................as
at.................................and the related profit loss account, cash flow
statement and statement of changes in equity together with the notes
forming part thereof, for the year then ended and we state that we
have obtained all the information and explanations which, to the best
of our knowledge and belief, were necessary for the purposes of our
audit.
It is the responsibility of the company’s management to establish and
maintain a system of internal control, and prepare and present the
above said statements in conformity with the approved accounting
standards and the requirements of the Companies Ordinance, 1984.
Our responsibility is to express an opinion on these statements based
on our audit.
We conducted our audit in accordance with the auditing standards as
applicable in Pakistan. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
above said statements are free of any material misstatement. An audit
includes examining on a test basis, evidence supporting the amounts
and disclosures in the above said statements. An audit also includes
assessing the accounting policies and significant estimates made by
management, as well as, evaluating the overall presentation of the
above said statements. We believe that our audit provides a reasonable
basis for our opinion and, after due verification, we report that—
Internship Report – Aamir Salman Rizwan Chartered Accountants

(a) In our opinion, proper books of accounts have been kept by the
company as required by the Companies Ordinance, 1984;
(b) In our opinion--
(i) The balance sheet and profit and loss account together with the
notes thereon have been drawn up in conformity with the Companies
Ordinance, 1984, and are in agreement with the books of accounts and
are further in accordance with accounting policies consistently applied.
(ii) The expenditure incurred during the year was for the purpose of the
company’s business; and
(iii) The business conducted, investments made and the expenditure
incurred during the year were in accordance with the objects of the
company;
(c) In our opinion and to the best of our information and according to
the explanations given to us, the balance sheet, profit and loss account
cash flow statement and statement of changes in equity together with
the notes forming part thereof conform with approved accounting
standards as applicable in Pakistan, and, given the information required
by the Companies Ordinance, 1984, in the manner so required and
respectively give a true and fair view of the state of the company’s
affairs as at...............................and of the profit/loss, its cash flows and
changes in equity for the year then ended; and
(d) In our opinion Zakat deductible at source under the Zakat and Ushr
Ordinance, 1980 (XVIII of 1980), was deducted by the company and
deposited in the Central Zakat Fund established under section 7 of that
Ordinance.
Signature
[Name(s) of Auditors]
Date.............................
Place..........................
Internship Report – Aamir Salman Rizwan Chartered Accountants

Financial Position
Financial
In the light of the financial statements attached below, the financial
performance of the firm can be judged. Analysis of the statement of
financial position and comprehensive income concludes that the firm
has been doing very well and has a sound financial position. The
operations and activities carried out by Tariq Mir and Co prove
profitable for them.
Looking at the volume of work and the nature of the services all round
my internship tenure (6 weeks), there is no doubt that the organization
has sound financial performance. Moreover, the firm is the auditing and
consultancy firm run/managed by the Chartered Accountants who are
experts in the field of finance. Hence, there are very remote chances of
the firm incurring losses.

Comparison of Financial Statement of Amir Salman Rizwan (2019-2020)

Internship Report – Aamir Salman Rizwan Chartered Accountants

Ratio Analysis
Liquidity Ratios:
• Current Ratio:
Current Assets
2019 2020
Current Asset 4095499 2096992
Current Liabilities 5086226 5164458
0.805 0.406

Interpretation:
Current ratio is a measure of liquidity of an organization at a
certain date. Ideal ratio is 2:1. The current ratio of Tariq Mir and Co of
the past two years is very close to the ideal ratio which is a good sign
for the organization.
Internship Report – Aamir Salman Rizwan Chartered Accountants

SWOT Analysis
SWOT ANALYSIS OF Aamir Salman Rizwan (CHARTERED ACCOUNTANTS)
A SWOT analysis (alternatively SWOT matrix) is a structured planning
method used to evaluate the strengths, weaknesses, opportunities and
threats involved in a project or in a business venture.
SWOT Analysis is a useful technique for understanding Strengths and
Weaknesses, and for identifying both the Opportunities and Threats.
A SWOT analysis can be carried out for a product, place, industry or
person. It involves specifying the objective of the business venture or
project and identifying the internal and external factors that are
favorable and unfavorable to achieve that objective.

• Strengths: characteristics of the business or project that give it an

advantage over others.
• Weaknesses: characteristics that place the business or project at a
disadvantage relative to others.
• Opportunities: elements that the project could exploit to its
advantage.
• Threats: elements in the environment that could cause trouble for
the business or project.
Identification of SWOTs is important because they can inform later
steps in planning to achieve the objective.
First, the decision makers should consider whether the objective is
attainable, given the SWOTs. If the objective is not attainable a different
objective must be selected and the process repeated.
Internship Report – Aamir Salman Rizwan Chartered Accountants

During my internship in Aamir Salman Rizwan Chartered Accountants I

have gathered a lot of information through observation and on the job
training in practical environment that enabled me to carry out SWOT
analysis of Aamir Salman Rizwan. Chartered Accountants that will
highlight the areas of threats and weaknesses and provide information
to invest more effectively on the areas of opportunities and strengths.

The SWOT analysis conducted in respect of Aamir Salman Rizwan.

Chartered Accountants is as under:

Strengths
• Operating in the major city of Pakistan i.e.; Lahore
• It enjoys the status of a QCR rated firm by ICAP.
• Friendly working environment.
• Has a good audit team.
• Good reputation among customers.
• Have the required skills set to conduct all types of Audits
.
Weaknesses
• They have a small number of staff to be deputed on any audit
assignment.
• Has low market presence as compared to their competitors.
• Infrastructure and working space of the firm needs improvement.
• No centralized system controlled by Head Office.
• Not well acquainted with advancement in technology.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Opportunities
• In the prevailing competitive working environment, the firm has
many future opportunities for success by improving their working
methods.
• Adoption of new technologies that competitors are not using.
• Providing of services of Financial Oracle widely used in the field
under automated environment.
• Make a strong network that allows clients to communicate easily.
• Facilitation to give coverage even to small retailers.
• Establishing more branches in other cities
.
Threats
• It has many other competitors operating in the market.
• Change in ICAP policies can act as a threat to the firm.
• Developments in technology may change this market beyond firm’s
ability to adapt.
• Change in government policies that may act as a threat to the firm’s
survival.
• Change in accounting methods may render the audit team ineffective
to perform prudently
Internship Report – Aamir Salman Rizwan Chartered Accountants

Internship at Aamir Salman Rizwan. Chartered Accountants

Being a student of B.COM (hons) I choose to work with Aamir Salman

Rizwan Chartered Accountants, Lahore as an audit trainee, located in
Johar Town Town, Lahore. During this internship I have learnt new
skills. Before internship I had only theoretical knowledge about work in
an organization. Now I have knowledge about the organization’s
working environment and how organizations work and achieve their
goals and objectives in line with their policies. This internship has
enabled me to grasp the understanding of business and also about the
elements of strategic thinking, planning and implementation and how
these things are applied in a real-world organizational environment.
Following are the objectives that I had in my mind before working as an
internee:

• Analyze the business situation.

• Learn about the internal and external audit.
• Learn more than the theoretical knowledge.
• Learn book keeping practices of different companies.
• Apply theoretical knowledge in actual organization.
• Learn about the organizational structure in place in Pakistani
companies.
• Increase my personal knowledge and professional preparation for
future.
• Plan for the future and learn how to adjust in an organization.
Internship Report – Aamir Salman Rizwan Chartered Accountants

• Know how to present recommendations.

• Get knowledge of opportunities and threats while entering into an
organization.
• Get exposure to do work in an organization and also know about
organizational behavior, ethics, rules and regulations.

Tasks Performed During Internship

Chartered Accountancy sector is the most growing sector of Pakistan so
it was a great opportunity for me to have internship in Aamir Salman
Rizwan Chartered Accountants which is a good firm in this regard. In my
internship tenure (6 Weeks) I have worked in audit department. I have
tried my best to enhance my abilities and apply the knowledge that I
gained during the studies.
Following is the explanation of what I did in my 6 weeks at Aamir
Salman Rizwan Chartered Accountants.

Week 1
During the first week at Aamir Salman Rizwan the manager of the firm
showed me the office and introduce me to the related staff. He told me
about the firm and what do they do, he also assigned me a task to check
the monthly financial statement of Toni & Guy Johar Town Branch.
After reviewing the Johar town Branch they started to give me monthly
statements of all the branches in Lahore. Finally at the end of one week
I under the supervision of my senior made the monthly statement of
Toni and Guy for the month of July. I finally learned how to update the
files using MS-Excel
Internship Report – Aamir Salman Rizwan Chartered Accountants

Week 2
Start of week 2 was full of work they started giving me small tasks to
see how quickly I was learning, they assigned me journal entries of one
of their clients. During the week 2 they also sent me for cash count at
Dream Home Society Near Behria Town Lahore. During cash count I got
to know about many things how to cut off the last bank statements and
cash ledger and how to mark cut-off to the last checkbooks use by the
company.
Week 3 & Week 4
Week 3 was very tiring and hectic, the firm finally assigned me a long
assignment and sent me along with 3 other persons to Stock-take at
Onsole Private Limited Near Kasur. It was a task that took 7 days to
complete. We had to count the raw material store of the company.
We completed our task very efficiently and did as my supervisor told me
to do. After completing the stock take me alongside with my group
made a reconciliation statement about the stock that is actually there
and the stock that their computer is showing.
Week 5
Week 5 spent in office doing small tasks like proof reading of monthly
statements of Tony & Guy’s several branches. The manager showed me
tutorial of how to learn MS-Excel quickly and efficiently. I also learn how
to do check referencing week 5
Internship Report – Aamir Salman Rizwan Chartered Accountants

Week 6
Week 6 was also very tiring as I was assigned a task at Kansai Paints
Private Limited which is located in Sundar Industrial Estate Lahore. Me
alongside with my senior was assigned to a task called Fixed asset
verification, Fixed asset verification or Asset Tagging. Asset tagging
allows companies to assign a unique identifier to each asset. Printed
with barcodes, asset tags eliminate the need for manual data entry,
enabling accurate and efficient inventory tracking and streamlined
documentation of activities such as maintenance and repairs. By
tracking each asset’s location, maintenance history, usage, and other
details, companies can simplify record-keeping and streamline reporting
for accounting and tax purposes.
This task took me more than 7 days but I was agreed to work more days
because I was learning a lot from this.

Key Observation
The most important thing I found noticeable was the behavior of the
firm’s functionaries with the new employee/trainee. They were highly
cooperative, proactive and their attitude was highly commendable.
Every employee in the hierarchy interacted with me in a friendly
atmosphere and I received good deal of co-operation and friendly
behavior from all the employees, including Junior Associates and Senior
Managers.
During internship period, I never felt that they are treating me or any
other employee like a stranger rather their behavior was quite friendly
with all. This denotes that
Internship Report – Aamir Salman Rizwan Chartered Accountants

Aamir Salman Rizwan Chartered Accountants is an equal opportunity

employer. I really feel very lucky to receive such kind of treatment and
behavior from other employees. I think that for such kind of friendliness
and rapport, there is great role of informal talks. The firm also provides
opportunity of interaction to all employees with each other to share the
experience gained in the different organizations. This step alone is a
great opportunity for the new comers like me to get acquainted with
the organization, it’s policy and its employees
.

FEEDBACK
Feedback to the organization
I am very much delighted and thankful to the organization for allowing
me to do internship in their organization. I got the platform to have
exposed on the auditing processes and enhance my knowledge and
ideas. I am grateful for providing me such opportunity. I would also like
to provide some suggestions and recommendation which I believe that
it would enhance the quality of its services to the clients.
Internship Report – Aamir Salman Rizwan Chartered Accountants

Conclusion
Aamir Salman Rizwan. Chartered Accountants is overall one of the well
reputed firms of Pakistan. The firm since its very first day is devoted to
providing quality services to their clients. The detailed and thorough
review of work and clients’ trust shows the quality of performance
which the firm is strictly adhering to. The Institute of Chartered
Accountants of Pakistan has also carried out the Quality Control Review
(QCR) and has issued a satisfactory QCR report stating that the firm has
conducted the audits of its clients in accordance with the International
Standards on Auditing (ISAs).
Chartered Accountancy is one of the most respectable professions in
Pakistan but it is quite amazing that CA trainees (during article-ship) are
getting very low stipend even when compared to the remuneration
paid to the unskilled persons. There is an urgent need to revise the
stipend paid to the trainees.
There are a huge number of Chartered Accountants firms in Pakistan
who are licensed by ICAP to practice the profession. However, a few,
top, big-sized firms capture most of the audit market in Pakistan with
all the large companies and corporations and multi-nationals. Due to
this very reason almost every student endeavor to have internship in
big Chartered Accountants firms which is not possible. Moreover, the
rest of the CA firms with a few, smaller, local companies to audit, less
business is left for smaller Chartered Accountants firms which is big
blow to the revenue generated by the smaller firm that is why they are
shy to accept new trainees probably due to resource constraints.
Resultantly the sufferers are the students.