Written Practicum Paper

AC 523

2nd semester, S.Y. 2015-2016

Submitted by:

Amores, Vianca Pearl

BSA 4

On The Job Trainee

R.G. Manabat and Co.

Submitted to:

Sir Philip William Marnoch

OJT Adviser

Group 11
Table of Contents
Chapter One: Brief History/Background of the Company/Company Profile

R.G. Manabat & Co. is an auditing and accounting firm that offers financial advisory services. Its areas
of expertise include corporate recovery, debt restructuring, debt recovery, and asset realizations. R.G.
Manabat & Co. was formerly known as Manabat Sanagustin & Co. and changed its name in February
2014. The firm is headquartered in Makati City, the Philippines. R.G. Manabat & Co. is a member firm
of KPMG International.

KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. Commented [VA1]: Remove gray background
The firm operates in 155 countries and have 174,000 people working in member firms around the
world.

R.G. Manabat & Co. is the Philippine member firm of KPMG. It is one of the fastest growing practices
in the Philippines and among the KPMG practices in the Asia Pacific region. KPMG ranks second in
number of top 1000 Philippine corporations audited.]

KPMG adopts a global approach spanning professional disciplines, industry sectors and national
borders. They take pride in imparting knowledge that adds value to their clients' businesses. The
diverse public and private sector backgrounds of the partners and principals, coupled with their
extensive training, and backed up by the wide knowledge resources and network of KPMG
professionals, allows the firm to give real-world solutions to their clients' increasingly complex business
and regulatory issues.

1870- William Barclay Peat joined an accounting firm in London Commented [VA2]: Convert to art

1891- William took it over, as William Barclay Peat & Co.

1877- Accountancy firm Thomson McLintock opened an office in Glasgow

1917- Piet Klijnveld opened his accounting firm in Amsterdam. Later he merged with
Kraayenhof to form Klynveld Kraayenhof & Co.

1925- William Barclay Peat & Co. and Marwick Mitchell & Co. (a firm founded by James
Marwick and Roger Mitchell in New York), merged to form Peat Marwick Mitchell & Company
(later known simply as Peat Marwick).[5]

1979- Klynveld Kraayenhof & Co. (Netherlands), McLintock Main Lafrentz (United Kingdom /
United States) and Deutsche Treuhandgesellschaft (Germany) formed KMG (Klynveld Main
Goerdeler) as a grouping of independent national practices to create a strong European-
based international firm
1987- KMG and Peat Marwick joined forces in the first mega-merger of large accounting
firms and formed a firm called KPMG in the US, and most of the rest of the world, and Peat
Marwick McLintock in the UK

1990- the two firms settled on the common name of KPMG Peat Marwick McLintock

1991- the firm was renamed KPMG Peat Marwick

1997- KPMG and Ernst & Young announced that they were to merge.[7][8] However, while the
merger to form PricewaterhouseCoopers was granted regulatory approval, the KPMG/Ernst
& Young tie-up was later abandoned.[9][1

1999- the name was reduced again to KPMG.[6]

Chapter Two:Weekly Progress Report Compilation

Supervisors

Inclusive Activities Documents Objective/s name, position

Dates and signature

Nov. 10- Orientation Full PFRS To check Jude Vincent L.

Nov. 13 Completing the Disclosure whether there Cruz

disclosure checklist Checklist are deviations Audit Supervisor

Checking the financial in the

statements Complete set of preparation of

mathematical accuracy Financial the financial

Cross-referencing Statements statements to

Proofreading those required

Summary of in the

Findings standards;
 To review the

assertion of the

client with

respect to

presentation

and disclosure;

and

To adhere to

KPMGs quality

policy.
 Completing the Full PFRS To check

Nov. 17- disclosure checklist Disclosure whether there

Nov. 20 Checking the financial Checklist are deviations

statements in the

mathematical accuracy PFRS for SME preparation of

Cross-referencing Disclosre the financial Jude Vincent L.

Proofreading Checklist statements to Cruz

Preparation of flowcharts Complete set of those required Audit Supervisor

Financial in the

Statements standards;

Summary of

Findings To provide the

audit team with

Flowchart
a process

flowchart
 Orientation Full PFRS To check

Nov. 24 - Completing the Disclosure whether there

Nov. 27 disclosure checklist Checklist are deviations

Checking the financial in the financial

statements Complete set of statements to Jude Vincent L.

mathematical accuracy Financial those required Cruz

Cross-referencing Statements in the Audit Supervisor

Proofreading Summary of standards;

Findings
Dec. 1- Preparation of Forecasted To present a Angelo Burdeos

Dec. 4 forecasted financial financial financial CFA Research

statements for SMPH statements analysis of S Challenge

nMPH; and Supervisor

Dec. 8- Preparation of Forecasted To present a Angelo Burdeos

Dec. 11 forecasted financial financial financial CFA Research

statements for SMPH statements analysis of Challenge

Forecasted SMPH; and Supervisor

financial ratios To prepare a

basis for

SMPHs

valuation.
Dec. 15 Completing the Full PFRS To check Jude Vincent L.

disclosure checklist Disclosure whether there Cruz

Checking the financial Checklist are deviations Audit Supervisor

statements in the

mathematical accuracy Complete set of preparation of

Cross-referencing Financial the financial

Proofreading Statements statements to

those required

Summary of in the

Findings standards;

To review the

assertion of the

client with

respect to
 presentation

and disclosure;

and

To adhere to

KPMGs quality

policy.

Dec. 21- Completing the Full PFRS To check Jude Vincent L.

Dec. 23 disclosure checklist Disclosure whether there Cruz

Checking the financial Checklist are deviations Audit Supervisor

statements in the

mathematical accuracy PFRS for SME preparation of

Cross-referencing Disclosre the financial

Proofreading Checklist statements to

Preparation of flowcharts those required

 Complete set of in the

Financial standards;

Statements

To review the

Summary of assertion of the

Findings client with

respect to

Flowchart presentation

and disclosure;

To provide the

audit team with

a process

flowchart; and
 To adhere to

KPMGs quality

policy.

Dec. 28- Inventory Count Inventory Count To ascertain Jude Vincent L.

Dec. 29 existence of the

Sheet Cruz
inventories
Audit Supervisor
counted
Inventory Count To observe the
effectiveness of
Attendance
the inventory
count
Inventory Count proceedings
To be able to
Memorandum
provide
evidence in
respect to
 existence and
accuracy
assertions,
such as giving
consideration to
high-valued,
damaged, and
expired items
To provide
reasonable
assessment on
the companys
inventory
system and
control based
on the
evidences
gathered as
inquired,
observed and
 on the series of
test count
performed

Jan. 5- Completing the Full PFRS To check Jude Vincent L.

Jan. 8, disclosure checklist Disclosure whether there Cruz

2016 Checking the financial Checklist are deviations Audit Supervisor

statements in the

mathematical accuracy Complete set of preparation of

Cross-referencing Financial the financial

Proofreading Statements statements to

those required

PFRS for SME in the

 Disclosure standards;

Checklist

To review the

Summary of assertion of the

Findings client with

respect to

presentation

and disclosure;

and

To adhere to

KPMGs quality

policy.
Jan. 12- 15, Completing the Full PFRS To check Jude Vincent L.

2016 disclosure checklist Disclosure whether there Cruz

Checking the financial Checklist are deviations Audit Supervisor

statements in the

mathematical accuracy PFRS for SME preparation of

Cross-referencing Disclosure the financial

Proofreading Checklist statements to

those required

Complete set of in the

Financial standards;

Statements

To review the

Summary of assertion of the

Findings client with

respect to
 presentation

and disclosure;

and

To adhere to

KPMGs quality

policy.
Chapter Three : Assessment of Practicum Program

What have I learned from the experience?

Before my internship, I used to believe that getting good grades will

get me anywhere. However, this experience made me think otherwise.

Yes, doing well in school will definitely help ones career, but attitude is

one of the determinitive factors of ones success. The partners and

managers kept reminding us that when they hire employees, they dont

look for the topnotchers since everyone from USC is talented. What

matters to them is their attitude when dealing with work and clients.

In addition, I learned that giving up is not an option. An inspiration

of mine is one of the leaders in KPMG. That person didnt do well in

school and had to retake the board exam because of her performance.

However, that person chose not to give up on her dream of becoming a

Certified Public Accountant. Today, she is one of the leaders in KPMG.

I also learned that it is important to treat every single day as a

learning experience. I had the pleasure of spending our last afternoon with

the partner of KPMG Cebu. Hes been in the business a while, yet he was

still talking about all the new and exciting things he was learning every

day. Thats when it hit home that every day, whether youre an intern or

long-standing professional, is a chance to grow. You dont just stop after a

few years in the business. That open-minded mentality, Im realizing, can

differentiate successful, progressive professionals from the rest of the

herd.
 I also learned that I shouldnt be too hard on myself. I have

incredibly high (and often unrealistic) expectations of myself. I push

myself, hard. Yet, through these various working experiences, Ive come

to the understanding that I am, in fact, only human. Im coming to terms

with that fact.

In addition, I learned that these experiences help me test my

comfort zone. Until I really, really shake things up, I never really know

what Im capable of. Sometimes it takes a burst bubble for me to really get

a grasp of my full potential.

On top of those lessons I mentioned, I also learned more about

accounting. By using the disclosure checklist everyday, I learned more

disclosures that could possibly come out in the board exam. I learned

more about PFRS for SMEs, which was not discussed thoroughly when I

was in 3rd year. I also learned how to make a process flowchart, which is

to be used by the audit team. Lastly, I learned that there are preocedures

to be performed before, during, and after the inventory count. These

procedures will help the audit team check the assertion of the client with

respect to completeness, existence, and valuation. I learned that it is really

important that an auditor is observant (especially during inventory counts).

I definitely have learned a lot from my 200 hours working as an

intern. These lessons will help me as I take the board exam and when I

work in an audit firm next year.

 From the many hours Ive spent during my on the job training experience, I

realized that there are so many more things we can learn outside the four walls

of our classroom. However, the knowledge I have obtained so far in my

accounting classes in college have truly helped me in doing the things required in

the office. For example, my foundations in AC503 and AC506 have truly served

as a guidance for me when it comes to the assessing the classification and

correct carrying values of the various accounts. The learnings I have gotten from

my auditing classes, both auditing theory and auditing problems have indeed

helped me a lot especially in terms of filling up the disclosure checklists that were

given to us.

Being an accountant and an auditor is not easy. Aside from being observant,

skeptic and careful, one must be patient and determined. It is essential that we

have a questioning mind as well so that as we carefully trace the many amount,

we can provide findings that are timely and relevant to ensure more accurate and

reliable financial statements.

Aside from that, we were taught how to proofread financial statements and

management reports. When it comes to this area, I was able to apply my

learnings in my current AC521 class when it comes to the proofreaders marks

and the requirements of good technical writing. Effective communication skills

are necessary to every accountants job because we are responsible for dealing

with the users of financial information and the clients as well.

During the inventory count, I have learned so much when it comes to putting

theory into application. There are before, during and after-count procedures

which one must stricly follow. Obtaining the inventory count procedures and the

listing of the inventory from the client company are equally important because

without them, there will be delays in the inventory count itself. The auditor is

present in order to observe the way in which the client counts their inventory.

Hence, we must be alert when it comes to performing sheet-to-floor and floor-to-

sheet procedures. However, the count does not end merely in testing for

completeness and existence. There are also after-count routines which the

auditor must perform because he must ask the client to provide a reasonable

explanation for the discrepancies, if there are any.

Indeed, experience really is the best teacyer. Overall, the things I have

learned from my on the job training are things that will surely equip me not only in

the classroom but in the future as well. I am grateful because I was given the

opportunity to work for a company that helps me grow and become better not

only as an individual, but also as a future CPA.

 My experience with the people around me

After being accepted, the partner in KPMG told us that its not really

important whether we are number one in our class or whether or not our grades

are high enough to become summa or magna. Coming from USC means that we

have been well-trained to study hard and to work hard. Hence, we were chosen

based on our willingness to work and how well they think we are able to deal with

others in the workplace.

From this, I learned that our skills when it comes to human relations is far

more important than just the technical skills we possess and the grades we have

earned in school. This is because these things can be learned over time.

However, attitude is something thats always a part of who we are and its

something that can affect the people around us as well. This is why me and

KPMG share the same perspective. The employees there may not always have

been at the top of their batch but I was able to witness how open they are to

learning and how they channel their humility towards learning more and

becoming more adept at what they are doing.

When it comes to the KPMG employees I have talked to and dealt with at

work, I have gained so much enlightenment which is something I cannot usually

get from people my age or from college students. Especially coming from those

who just recently passed the board exam, they served as a wake-up call for me
to be more prepared when it comes to IRC. They told me how important it is to

keep striving and to be persistent. Failure should not be a hindrance, but an

inspiration to move forward and to try again. Mistakes should not make us feel

ashamed because in the end, nothing will ever be perfect. Like what the partner

said, whats important is that we should always be open to learnings and to

changes that are relevant to the accounting field.

When it comes to my fellow on the job trainees, I can say that I have

formed a special bond with them throughout the course of time. Even if I dont

see them as often anymore, I can say that the memories weve shared are

something that will always be there in our minds and hearts. All six of us were

classmates in third year which is why we pretty much know each other in one

way or another already. However, the hours spent at work and the hours we

spent with each other after made us discover so much more about each other.

Our strengths, weakness, little quirks and differences have brought us so much

closer as we got to know the others better. Through ups and downs, shared

lunches and dinners, we have become like a family. Indeed, I couldnt have

asked for better people to share my OJT experience with.

 The most memorable event during my practicum

The most memorable event during my practicum was the KPMG

Christmas Party we had right before the Christmas break. Before the event, we

were tasked to give a presentation together with my fellow on-the-job trainees.

We decided to present a number which comprised of two songs namely Love

Yourself and 1234. With the little time that we had, we were able to rehearse for

quite a bit and familiarize ourselves with the lyrics.

The Christmas party we had in the office was just a simple gathering with

dinner, games, performances and manito manita. This is because the KPMG

employees already had their Christmas party in Manila together with the

associates from there the previous week. The theme of our party was red, white

and gold. We didnt need extravagant decorations nor fancy plates. We just

simply enjoyed the company that we had and the food that we were blessed with.

The newly hired employees also gave their own song and danced numbers

which we enjoyed as well.

During the event, I witnessed how everyone was so warm and welcoming

with each other and this made me appreciate the people there even more. I also

got to meet and talk to the other employees whom I dont usually get to see

because most of them are out on fieldwork during the times that we are there. I

realized that the length of time they have been in the firm didnt matter because
everyone tried to interact and create a special bond with one another. When it

was time for the games, all were willing to join in and nobody was left behind.

The spirit of enthusiasm and excitement made us feel more like a family. As for

the manito manita, I really enjoyed it because we had to describe the person we

got before giving our gift to them. This made me get to know the rest of the

employees more.

After the event, as we bid goodbye, I felt a sense of gratitude and

fulfillment because this is the first time i saw everyone in the office get together. I

was able to better appreciate the work environment because I came to realize

that these people are not only good when it comes to focusing on their work but

more importantly, they are well-rounded because they have a sense of work-life

balance.

I can say that this is the most memorable day of my practicum because

even if the event occurred after office hours, I was able to discover so much

more about KPMG itself, the partner, the manager and the people behind all

those financial statements. I learned that indeed, the ability to deal well with other

people is far more important than grades or technical skills. Seeing all those

CPAs motivated me that I, too, one day can become like them through hard

work, patience and utmost dedication.

 What I can recommend for the improvement of the Practicum

program

I believe that the number of 200 hours for BSA students, 250 hours of MA

student and 400 hours for AcT students is sufficient for each respective cours.

There are so many strong points and benefits coming from the practicum

program offered to us by the University of San Carlos. For instance, it is good

that we are given the option to choose whether we want to work in a public,

government, education or private firm. We are also given the freedom to choose

a certain company we want to work in. Although we are provided with a standard

format for the application letters, we are able to become more independent

because we, ourselves, are the ones who personally apply for the company and

face the scheduled interviews.

However, having strong points also comes with weaknesses and these are some

of the things I would like to point out. I agree with what our manager said

regarding the timing of our on-the-job training. Usually, the busy season starts

during January which is why it would be better if we start during those months so

that we would be able to learn more and do more. Especially for us, BSA

students who are only required to finish 200 hours, most of us are already done

by January which is also when the busy season starts.

I would like to recommend that the list of accredited companies by updated by

whomever is in charge. This is because some of the companies that were listed

do not have the same address, telephone number or even contact person. The

names of the companies should also be up to date because for example, when

we sent our letter to KPMG, we did not know that their firm name is not longer

Manabat Sanagustic and Co. It was already changed to R.G. Manabat and Co.

Hence, we had to immediately changed our application letter right there and

then.

Lastly, I would like to mention _____________________

 My advice to those who will take their practicum in the near future

Having learned so many things from my on the job training experience, there

are also so many lessons which I would like to impart to those who will be taking

their practicum in the near future.

First of all, one must carefully choose the kind of industry they want to work

and the specific company they want to work with so that they can start printing

their application letters before the first day of signing by the OJT adviser.

However, you must contact the companies you want to apply for before finalizing

your application letter because like what happened to us, we didnt know that the

addressee no longer worked for the firm anymore and the company name was

also changed to a new one.

Second, one must be quick and alert in submitting application letters to the

respective firms because like in KPMG, they only interviewed the ones who

turned in their applications on the first day. There are 400 of us and there arent

as many companies on the list. Some of the firms do not have enough time and

they also do not have enough space to accommodate everyone who wants to

work there.

Third, when called for an interview, one must carefully prepare so that their

nerves will not get to them. Nevertheless, be yourself but set yourself apart from

the others. Know what makes you special and tell them what you have and are
willing to offer. Keep in mind that grades arent only what they look at. Because

they interview a lot of students in one day, it is important that you create a lasting

impression. Be polite and be confident but be humble as well.

Fourth, being the best version of yourself does not stop when you are

accepted. From the first day of work to the last, keep the Carolinian fighting spirit

and the dedication to work. Be open to new learnings and to constructive

criticism. Do not be afraid to make tiny mistakes and to ask questions. Volunteer,

interact and always be willing to lend a helping hand to anyone in the firm. Treat

everyone equally and with respect. Be on time and once youre there, maximize

your time. Take every task as an opportunity for growth. Learn as much as you

can not only from your supervisor, but from your fellow employees and co-

workers as well.

Fifth, remember that your OJT requirements do not stop when you step

outside of the office. Do not forget to make your weekly journals and time

budgets because it is essential that you be punctual in submitting these. Take

note of what you have done each day and what you have learned from it.

Lastly, do not treat your OJT as a stressful kind of work or merely a course

requirement. Treat it as a learning experience which will surely help you in the

future. Enjoy and learn to love what you are doing because once you do enjoy

like I did, you will no longer be counting the remaining hours you have left and
you in the end, you will be so much more fulfilled with what you have

accomplished.
 Chapter Four : Pertinent Documents

Application Letter naa kato ato gi photocopy sa office

Acceptance Letter WALA

Weekly Progress Report we need to go to office

pa and submit

Parents/Guardians Certification of

Waiver/Permission wala na signan ni sir tejana?

idk asa akong ing ani

Student Information Sheet to be made (kinsa

naay sketch sa company hahaha huhu)

MOA (2 copies) - naa

Completed Time Budget - naa

Practicum Daily Attendance Record its in KPMG

office but vianca, charles, steven and mimi need to

sign

Certification of Completion of Practicum Hours

wala

Performance Evaluation Sheet (sealed in an envelope)

naa with sir jude

Accdg to the practicum manual, we need long size clearbook also para didto

ibutang tanan I think