UNIVERSITY OF MUMBAI

(2023-2024)

A PROJECT REPORT ON

ROLE OF AUDIT FOR THE PROPER ACCOUNTABILITY OF

COMPANY'S FUNDS

SUBMITTED BY:
HINAL SONDAGAR
ROLL NO.

BACHELOR OF BANKING AND INSURANCE

SEMESTER VI
(2023-2024)

PROJECT GUIDE
RAJU D. GOLE

Sadhana Education Society’s

L.S. RAHEJA COLLEGE OF ARTS AND COMMERCE
Juhu Road, Santacruz (West),
Mumbai- 400054
 DECLARATION

I, HINAL SONDAGAR, the student of Bachelor of Banking & Insurance of Semester VI (2023-
2024) hereby declare that, I have successfully completed the project on ‘‘ROLE OF AUDIT
FOR THE PROPER ACCOUNTABILITY OF COMPANY'S FUNDS’’ for the academic year 2023-
2024. The project is done under the guidance of Mr. Raju D. Gole and this project work is submitted
in the partial fulfilment of the requirements for the award of the degree of Bachelor of Banking and
Insurance.

The information submitted is true and original to the best of my knowledge.

Signature of Student
HINAL SONDAGAR
Roll No.
 CERTIFICATE

This is to certify that Mr / Miss. HINAL SONDAGAR, Roll No.of Bachelor of Banking &
Insurance of the Semester VI (2023-2024) has successfully completed the project on “ROLE OF
AUDIT FOR THE PROPER ACCOUNTABILITY OF COMPANY'S FUNDS’’ under the guidance
of Mr. Raju D. Gole for the academic year 2023-2024.

Mr. RAJU D. GOLE Dr. DEBAJIT N. SARKAR

(Course Coordinator) (Principal)

Mr. RAJU D. GOLE

(Project Guide/Internal Examiner) (External Examiner)
 ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the possibility to complete this
project. I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I am deeply indebted to my project guide Mr. Raju D. Gole from L. S. Raheja College of Arts
& Commerce whose stimulating suggestions and encouragement helped me all the time of research.

I wish to express my gratitude to Mr. Raju D. Gole, The Course Coordinator and to Dr. Debajit N
Sarkar, Principal of L.S Raheja College of Arts & Commerce for their support.

I am thankful to my college library the staff and computer lab staff for providing me with all the
necessary amenities which were of great help during the project.

My subject teachers were also very supportive as they looked very closely at the final version of the
thesis for English style and grammer, correcting both and offering suggestions for improvement.

Above all, I would like to thank my parents, teachers and friends for their patience, love and support
which enabled me to successfully complete my project.
EXECUTIVE SUMMARY
 TABLE OF CONTENTS

Sr. No. Particulars Page No.

1. Introduction 1

2. Objectives of the study

3. Limitations of the study

4. Significance of the study

5. Research Methodology
a. Research Approach
b. Research Design
c. Sampling Design
6. Company Profile

7. Data Analysis and Interpretation

8. Findings

9. Conclusion

10. Recommendations

Bibliography/Webliography and References

Annexure (Questionnaire)
CHAPTER - 1
 INTRODUCTION TO INTERNAL AUDIT

Internal auditing is an independent, objective assurance and consulting activity designed to

add value and improve an organization's operations. It helps an organization accomplish its

objectives by bringing a systematic, disciplined approach to evaluate and improve the

effectiveness of risk management, control, and governance processes. Internal auditing is

a catalyst for improving an organization’s effectiveness and efficiency by providing insight

and recommendations based on analyses and assessments of data and business processes.

With commitment to integrity and accountability, internal auditing provides value to

governing bodies and senior management as an objective source of independent advice.

Professionals called internal auditors are employed by organizations to perform the internal

auditing activity.

Internal Audit is not a discipline of Accountancy; External Audit is related to Accountancy,

but Internal Audit is an entirely separate discipline more closely related to Enterprise Risk

Management. Internal Audit does, of course, cover financial risk amongst its portfolio, but

this is one very minor element of the role. Significant misunderstandings in this area have

resulted in many organisations recruiting accountants with external audit experience to staff

an internal audit function; this is usually detrimental to the quality and completeness of

assurance provided to the Non-Executive Directors/Board, and may, in part, have contributed

to corporate failures where key operational risks that were not directly related to financial

statements remained unidentified and/or unmanaged by the Executive Management. When

IIA and ACCA signed the Global Memorandum of Understanding, IIA President David A.

Richards said, "The IIA and ACCA are both long-standing, highly respected professional

associations, each with members from all around the world. Although we represent two
distinctly different professions, our codes of ethics and perspectives on enhanced

professionalism, ongoing education, and quantifiable research mirror one another."

The scope of internal auditing within an organization is broad and may involve topics such as

the efficacy of operations, the reliability of financial reporting, deterring and investigating

fraud ,safeguarding assets, and compliance with laws and regulations.

Traditionally, internal auditing involved measuring compliance with the entity's policies and

procedures. However, internal auditors are not responsible for the execution of company

activities; they advise management and the Board of Directors (or similar oversight body)

regarding how to better execute their responsibilities. As a result of their broad scope of

involvement, internal auditors may have a variety of higher educational and professional

backgrounds. Developments in internal auditing have moved away from "compliance" which

is a function of management control, towards Risk Based Internal Auditing (RBIA) which

results in monitoring and evaluation of the risk based control framework to manage enterprise

risk. The modern approach seeks to ensure that key risks are identified, a risk appetite is

defined, and controls are instigated in a fit for purpose way to manage risk according to the

risk appetite of the organisation.

Publicly-traded corporations typically have an internal auditing department, led by a Chief

Audit Executive ("CAE") who generally reports to the Audit Committee of the Board of

Directors, with administrative reporting to the Chief Executive Officer.

 Other definitions

The definition above (first sentence of this page) is in essence the IIA's definition. A similar

definition has been developed by the accounting profession and adopted by the government

auditors: the ISA 610 and the INTOSAI’s standard ("ISSAI") 1003 define the Internal

audit function as "An appraisal activity established or provided as a service to the entity. Its

functions include, amongst other things, examining, evaluating and monitoring the adequacy

and effectiveness of internal control."

History of internal auditing

The Internal Auditing profession evolved steadily with the progress of management science

after World War II. It is conceptually similar in many ways to financial auditing by public

accounting firms, quality assurance and banking compliance activities. Much of the theory

underlying internal auditing is derived from management consulting and public accounting

professions.

With the implementation in the United States of the Sarbanes-Oxley Act of 2002, the

profession's growth accelerated, as many internal auditors possess the skills required to help

companies meet the requirements of the law.

Role in internal control

The role of internal audit is to provide independent assurance that an organization’s risk

management, governance and internal control process are operating effectively. Internal

auditor’s deal with issues that is fundamentally important to the survival and prosperity of

any organization. Unlike external auditors, the look beyond financial risks and statements to
consider wider issues such as the organizations reputations, growth, its impact on the

environment and the way it treats its employees.

Internal auditors have to be independent people who are willing to stand up and be counted.

Their employers value them because they provide an independent, objective and constructive

view. To do this they need a remarkably varied mix of skills and knowledge. They might be

advising the projective running a difficult change programme one day, or investigating a

complex overseas fraud the next.

From very early on in their careers, they talk to executives at the very top of the organization

about complex, strategic issues, which is one of the most challenging and rewarding parts of

their role Internal auditing activity is primarily directed at improving internal control. Under

the COSO Framework, internal control is broadly defined as a process, affected by an entity's

board of directors, management, and other personnel, designed to provide reasonable

assurance regarding the achievement of objectives in the following internal control

categories:

• Effectiveness and efficiency of operations.

• Reliability of financial reporting.

• Compliance with laws and regulations.

Management is responsible for internal control. Managers establish policies and processes to

help the organization achieve specific objectives in each of these categories. Internal auditors

perform audits to evaluate whether the policies and processes are designed and operating

effectively and provide recommendations for improvement.

 Role in risk management

Internal auditing professional standards require the function to monitor and evaluate the

effectiveness of the organization's Risk management processes. Risk management relates to

howan organization sets objectives, then identifies, analyzes, and responds to those risks that

could potentially impact its ability to realize its objectives.

In larger organizations, major strategic initiatives are implemented to achieve objectives and

drive changes. As a member of senior management, the Chief Audit Executive (CAE) may

participate in status updates on these major initiatives. This places the CAE in the position to

report on many of the major risks the organization faces to the Audit Committee, or ensure

management's reporting is effective for that purpose.

Role in corporate governance

Internal auditing activity as it relates to corporate governance is generally informal,

accomplished primarily through participation in meetings and discussions with members of

the Board of Directors. Corporate governance is a combination of processes and

organizational structures implemented by the Board of Directors to inform, direct, manage,

and monitor the organization's resources, strategies and policies towards the achievement of

the organizations objectives. The internal auditor is often considered one of the "four pillars"

of corporate governance, the other pillars being the Board of Directors, management, and the

external auditor.

A primary focus area of internal auditing as it relates to corporate governance is helping the

Audit Committee of the Board of Directors (or equivalent) perform its responsibilities

effectively. This may include reporting critical internal control problems, informing the
Committee privately on the capabilities of key managers, suggesting questions or topics for

the Audit Committee's meeting agendas, and coordinating carefully with the external auditor

and management to ensure the Committee receives effective information.

Nature of the internal audit activity

Based on a risk assessment of the organization, internal auditors, management and oversight

Boards determine where to focus internal auditing efforts. Internal auditing activity is

generally conducted as one or more discrete projects. A typical internal audit project

involves the following steps:

1. Establish and communicate the scope and objectives for the audit to appropriate
management.

2. Develop an understanding of the business area under review. This includes objectives

,measurements, and key transaction types. This involves review of documents and interviews.

Flowcharts and narratives may be created if necessary.

3. Describe the key risks facing the business activities within the scope of the audit.

4. Identify control procedures used to ensure each key risk and transaction type is properly

controlled and monitored.

5. Develop and execute a risk-based sampling and testing approach to determine whether the

most important controls are operating as intended.

6. Report problems identified and negotiate action plans with management to address the

problems.
7. Follow-up on reported findings at appropriate intervals. Internal audit departments
maintain a follow-up database for this purpose.

Project length varies based on the complexity of the activity being audited and Internal Audit

resources available. Many of the above steps are iterative and may not all occur in the

sequence indicated.

By analyzing and recommending business improvements in critical areas, auditors help the

organization meet its objectives. In addition to assessing business processes, specialists called

Information Technology (IT) Auditors review information technology controls.

Internal audit reports.

Internal auditors typically issue reports at the end of each audit that summarize their findings,

recommendations, and any responses or action plans from management. An audit report may

have an executive summary; a body that includes the specific issues or findings identified and

related recommendations or action plans; and appendix information such as detailed graphs

and charts or process information. Each audit finding within the body of the report may

contain five elements, sometimes called the "5 C's":

1. Criteria: What is the standard? The standard may be a company policy or other benchmark.

2. Condition: What is the particular problem identified (difference between criteria and actual
status)?

3. Cause: Why did the problem occur (which control over risk was missing – design

effectiveness failure; or which control did not execute as planned -operating effectiveness

failure)?

4. Consequence: What is the risk/consequence (or opportunity foregone) because of the

finding?

5. Corrective action: What should management do about the finding? What have they agreed

to do and by when?

The recommendations in an internal audit report are designed to help the organization

achieve its goals, which may relate to operations, financial reporting or legal/regulatory

compliance. They may relate to effectiveness (i.e., whether goals were met or compliance

with standards was achieved) or efficiency (i.e., whether the outputs were generated with

minimum inputs).

Audit findings and recommendations also relate to particular assertions about transactions,

such as whether the transactions audited were valid or authorized, completely processed,

accurately valued, processed in the correct time period, and properly disclosed in financial or

operational reporting, among other elements.

Developing the plan of engagements

Internal auditing standards require the development of a plan of audit engagements (projects)

based on a risk assessment, updated at least annually. The input of senior management and

the Board is typically included in this process. Many departments update their plan of

engagements throughout the year as risks or organizational priorities change.

This effort helps ensure the audit activity is aligned with the organization’s objectives, by

answering two key questions: First, what goals are the organizations trying to accomplish in

the upcoming period? Second, how can the Internal Audit Department assist the organization

in achieving these goals?

Internal auditors often conduct a series of interviews of senior management to identify

potential engagements. Changes in people, processes, or systems often generate audit project

ideas.

Various documents are reviewed, such as strategic plans, financial reports, consulting studies,

etc. Further, the results of prior audits and resolution of open issues are considered. The

preliminary plan of engagements is documented and prioritized. Audit resources and

expertise are then considered and a final plan is presented to senior management and the

Audit Committee.

INTERNAL AUDIT IN PHARMACEUTICAL

In pharmaceutical, internal audit of Medicines, Gurgaon, head quarter are carried out by

Internal Audit Department located at Gurgaon ( Haryana) . In respects of rest of the project/

offices of the company, the same is outsourced through Chartered Accountants Firms.

Internal Audit is an independent department having executives & staff of Finance and

Accounts discipline. Presently the department is headed by GM- Internal audit who reports to

the Director (Finance).

Activities of Internal Audit Department

The scope and areas to be covered by Internal Audit is decided at the beginning of the year

through Annual audit program which is approved by audit committee.

The main areas covered by Internal audit are as follows:-

a) Scrutiny of Contracts and Purchases Proposal awarding contracts and purchase orders.
b) Payment of contractors and suppliers bill.

c) Deduction of sales tax, income tax and deposit thereof.

d) Establishment payment like- salary/ wages, tour claims, medical bill claim, etc.

e) Documentation and payment of advances and recovery.

f) Physical verification of assets.

g) Monitoring of capital work-in-progress.

h) Audit of billing of Medicines, and scrap Manufcturing.

Liaise with Comptroller and auditor General (C&AG) and statutory Auditor

Audit Committee

The audit committee is established with the aim of enhancing confidence in the integrity of

an organization’s processes and procedures relating to internal control and corporate

reporting including financial reporting. Audit Committee provides an ‘independent’

reassurance to the board through its oversight and monitoring role.

Among many responsibilities the boards en trust the Audit Committee with are the

transparency and accuracy of financial reporting and disclosures, effectiveness of external

and internal audit functions, robustness of the systems of internal audit and internal controls,

effectiveness of anti-fraud, ethics and compliance systems, review of the functioning of the

whistleblower mechanism. Audit Committee may also play a significant role in the oversight

of the company’s risk management policies and programs.

Audit Committee has thus become one of the main pillars of the corporate governance system

in Indian public companies. In steering companies through today’s complex business

environment boards are going to need strong leadership from their audit committees.

Expanding the field of vision, clearly defining who’s tracking the company’s risk radar, and

taking a step back to re evaluate its own performance are some of the important steps every

Audit Committee should consider.

This section of the site includes a range of useful publications relating to the audit
committee’s operations and oversight responsibilities.

Internal Audit Mission Statements

The mission of the internal audit is to provide independent and objective assessment and

consulting services to add value and improve the Pharmacy`s operations.

The internal audit accomplishes its objectives by using a systematic, disciplined approach to

evaluate and improve the effectiveness of control, risk management and governance

processes.

Internal Audit Purpose

The purpose of Pharmacy’s internal audit is to determine whether its controls, risks

management and governance process, as designed and implemented by management are

adequate and effective and functioning to ensure;

- Risks are appropriately identified and managed

- Interactions with the various governance groups as needed

- Financial, managerial and operating information is accurate, reliable and timely

- Employees actions are in compliance with Pharmacy’s policies and procedures and

applicable laws and regulations

- Resources are acquired economically, used efficiently and adequately protected

- Plans and objectives are achieved

- Quality and continuous improvement are fostered in the Pharmacy’s control process

- Significant legislative and regulatory issues having impact in Pharmacy’s operations are

recognized and timely addressed appropriately

Scope and Objectives:

The objective of internal auditing is to assist all members of the organization in the effective

discharge of responsibilities by furnishing them with analysis, appraisals, recommendations

and pertinent comments concerning the activities reviewed. The internal auditor is concerned

with any phase of business activity where he/she may provide service to the organization.

This scope involves going beyond the accounting and financial records to obtain a full

understanding of the operations under review. The attainment of this overall objective

involves such activities as;

- Reviewing and appraising the correctness, adequacy and application of accounting ,

financial and other operating controls and promoting effective control at reasonable cost.

- Ascertaining the extent of compliance with established policies , plans and procedures

- Ascertaining the extent to which company assets are accounted for and safe guarded from

losses of all kinds

- Ascertaining the quality of performance in carrying out assigned responsibilities

- Recommending operational improvements

Internal Audit Independence:

Internal auditing is an advisory function having independent status within the organization.

The head of internal audit :-

- Shall be directly responsible to the chief executive/director (finance) and be independent of

any other section, branch or officer, and shall have direct access to all documents, records and

departments/ operations for which a suitable authority letter is to be issued by the chief

executive so that the assignments can be carried out independently

- Shall have no executive powers , functions or duties except those relating to the

management of the internal audit office

- Shall not be responsible for the detailed development and/ or implementation of new

systems but should be consulted during the system development process on the control

measures to be incorporated in new or amended systems , and be advised of approved

variations or new developments.

Internal Audit Responsibilities:

The head of internal audit shall be responsible functionally to the audit committee and

administratively to the chief executive /director (finance) of Pharmacy, for the functional

control of audit activities in relation to:

- Development, implementation and oversight of internal audit methods and procedures

- Development and control of an efficient internal audit program

- Scope and boundaries of audits

- Fulfilling the objectives of internal audit

- Utilizing the internal audit resources to maximize the efficiency and effectiveness of the

internal audit function and Maintenance of appropriate auditing standards

 Internal Audit Authority:

In performing their work, internal auditors have neither direct authority over/ nor

responsibility for any of the activities reviewed. Internal auditors do not develop and install

procedures, prepare records, make management decisions, or engage in any other activities

that could be reasonable construed to compromise their independence or impair their

objectivity.

Therefore, internal audit reviews do not, in any way substitute for or relieve any officials or

staff of Pharmacy from the reassigned responsibilities.

Internal auditors of the organization shall:

- Have access at all reasonable times to all books , documents, accounts, property ,vouchers

,records , correspondence and other data of the organization which are necessary for the

proper performance of the internal audit function.

- Have the right at reasonable times to enter any premises of the organization and to request

any officer to furnish all information and such explanations deemed necessary for them to

form an opinion on the probity of action, adequacy of systems and/ or of controls. The officer

concerned shall respond promptly to such inquiries.

It is incumbent on all the officers and staff that they shall render assistance to the internal

auditors in carrying out their audit duties.

 Relationship with Other Control Functions:

Relationship with statutory auditors:

The head of internal audit is responsible for liaisoning with the audit committee for

coordinating internal and statutory audit efforts to ensure adequate audit coverage, minimize

duplication of audit efforts and achieve synergy of the efforts.

Co-ordination of audit efforts involves;

- Periodic meetings with audit committee and statutory auditors regarding the company`s

audit universe, risk assessment updates, audit plans and the annual audit schedule.

- Periodic meeting`s between head of internal audit , audit committee and statutory auditors

regarding the plans of the statutory auditors and the desired level of direct or indirect

assistance to the audit committee that may be required.

- Access to each other’s detailed audit programs, internal controls documentation, and work

papers. Such access is important in order for the internal auditor to be satisfied as to the

propriety for internal audit purposes of relying on the external auditors work and for the

external auditors to be satisfied as to the propriety, for external audit purposes, of relying on

the internal auditors work.

- Communications regarding announcements when audits are scheduled to begin and the

specific audit objectives that have been established

- Exchange of information related to audit observations that may have an impact on the

financial statement of the company and which need to be reported to the company’s audit

committee..
 Relationship with government auditors:

The internal audit department should perform the following tasks while coordinating their

work with the government and statutory auditors;

- Share annual audit plan- the internal audit department should meet the above two agencies

at least once in six months to discuss their plans for the next six months to ensure that there is

no duplication of efforts .

- Share audit issues- during the meetings all three agencies should exchange major audit

issues that they may have observed in the past to help others appreciate the same when they

cover the area in the future.

Relationship with technical operations auditors:

Considering that there is an already existing group of technical officers in Pharmacy that

reports to the directors in respect of technical issues, it should be necessary for the internal

auditors to coordinate their efforts with this group.

They need to share their respective audit plans with one another and identify areas where

duplicity of work could be avoided. Further, the internal audit department should review the

following in respect of the technical audits conducted by this group and comment on the

same;

- Level of implementation of the recommendations made by the technical audit group

- Whether the coverage of the group was adequate and whether they were able to perform all

audits that had been planned.

- How is the group keeping itself updated in respect of the advancements in technology in

respect of operational methodologies?

As with the review of safety auditors, the purpose of auditing the technical audit group is not

to review their decisions or the quality of work that has been done by them but to ensure that

their working is effective and efficient for operational improvement in Pharmacy as a whole.

Approach and methodologies

To identify the areas that used to be audited by internal audit, it is essential to carry out a

relative risk ratings. This exercise will basically provide internal audit with an audit universe

detailing areas that need to be audited and their frequency. This exercise is termed as risk

assessment.

Methodology of risk assessment

The risk assessment methodology includes the following;

(i) Understanding the business objectives- being a senior management team of

Pharmacy, the head of internal audit is well aware of the existing systems, the control

environment and risk factors of each operation / activity in Pharmcy. As a head of the

function, he has access to various reports of Pharmacy, internal publications, reports

issued by internal audit/technical audit, statutory auditor’s govt. auditors and frame up

his perception of various risks associated in each function.

- he should also visit to projects /sites and regularly interact with senior key

functionary or process personnel to assess the risk involved in each project.

- To review of the existing process manuals and available documentations which will

help to develop the risk assessment systems.

(ii) Interaction with senior management- with the objective of preparing risk based

strategy for internal audit interaction with senior management is necessary in order to obtain

an understanding of their perception of the nature of risks and exposures that Pharmacy faces

today and in time to come or in due course.

The areas normally discussed with senior key personnel are;

- Critical challenges faced by Pharmacy.

- Significant risks and exposures

- Control environment

- Technology issues

- Suggested areas of focus for internal audit

Based on the responses the audit universe is modified along with a risk rating for each audit

area.

(iii) Finalization of the audit universe :

Based on the experience and understanding gained during the visits of various

locations/activities and discussions with senior managerial personnel, the audit universe of

the Pharmacy may be finalized. The audit universe contains the list of audit areas to be

covered by the internal audit Department / technical audit department, frequency of each skill

set required for conducting the audits.

On the basis of the audit universe, number of auditors required based on skills and number of

audits required to be carried out in a year, is ascertained.

(iv) Assigning a risk rating to each audit universe process/area;

Risk rating is used to prioritize auditable entities and to estimate the internal audit hours

considered necessary for an internal audit function to address the identified risks.

Risk rating is allotted to each audit area in the audit universe based on interaction with key
personnel, understanding the systems and controls, materiality mapping.

The likelihood rating represents the likelihood of an event or risk, which may occur. The

materiality rating represents the exposure to the organization should the event or risk occurs.

A risk assessment rating for both likelihood and materiality is determined for each audit are a

included in the audit universe.

(v) Assigning frequency for each audit area:

The frequency of each audit is determined based on the likelihood and materiality rating of

each audit.

The following parameters are normally used for arriving the frequency of each audit area.

(vi) Assigning number of auditors, time and skills required for each audit :

The number of auditors, time and skill sets required for carrying out each audit should be

assessed appropriately at the time of preparing audit universe. The assessment is to be based

on the understanding of the business of the company, nature of complexity involved,

locations /activities to be covered, estimated time required for collection of data, time

required for planning the commencement of audit and report writing.

(vii) Estimating systems understanding and documentation-

The auditor should assess the existing systems and documentation work before

begins/commencing the audit work of the department. While carrying out such study, the

following should be looked into- understand departmental philosophy and operating style.

- identify business objectives of the department

- understand existing systems and procedures in the department

- perform risk analysis of the functions performed in the department

- Identify critical areas that needed to be audited

- identify the level of assignment of authority and responsibility

- understand the level of information technology risk management.

CHAPTER -2
 EXECUTIVE SUMMARY

Project title: Report on Internal Audit Functions and its Performance in

Century Life Science Limited

Organization: Century Life Science

Organizational Guide: Mr. Anju Gandhi, Gulshan

Gandhi Duration: 1st July – 31st Aug, 2016 (2 months)

Objectives of the study:

• To measure the overall performance of Internal Audit Department in pharmaceutical

• To study the functions and roles of Internal Audit Department in pharmaceutical

Research Methodology:

The study is based on survey method. The primary data is collected by personal interviews

through structured questionnaires to knowing the views, comments and confidence regarding

the performance of Internal Audit functions in pharmaceutical.

For the purpose of the study executives of different departments were selected and

interviewed.

The secondary data is collected from the books, magazines/ journals ,websites and including

pharmaceutical’s Internal Audit Department office

 Research design :

Sampling plan :In pharmaceutical executive are graded in the increasing rank as A, B, C,
C1, D, E, F, G, H, & I. This survey includes only grade E &F in the core departments of

pharmaceutical. The sample was selected on the basis of Convenience Sampling.

Sample Size: 50

Data source : Both Primary and Secondary data.

Schedule design : A well structured schedule comprising of close ended, multiple choice
and dichotomous questions. Sincere efforts were made to make the schedule simple and

precise. Care is being taken to prepare the schedule according to the structure and format.

The schedule is set according to the objective of the study.

Sample area :

The questionnaire was distributed in 4 major departments of pharmaceutical, (Gurgaon).

Method of data

collection:

Primary data were collected by face to face interview with the help of a well structured

questioner and secondary data were collected from books,Magazines /journals, and websites.
 Analysis Technique:
The data collected from the respondents were analyzed using standard statistical methods and

techniques. Pie-charts and Bar diagrams were used to reach at the conclusion. Findings were

made on the basis of analysis. Recommendations were made on the basis of findings drawn

from various data collected.

Limitation
• The survey was limited to few departments in the organization.

• Unavailability of executives in their cabins as they were engaged in fieldwork at that time.

• Sampling error might have occurred because no sample in perfect representation of a give

population unless the sample size equals the population.

• There is a possibility of occurrence of false judgment due to the biased responses by some

of the executive’s staff while giving answers.

• Since the report is based on the primary data and personal interview ,occurrence of personal

biased cannot be ruled out.

Organization is working as a Chartered Accountants firm under the rules and regulations and

code of ethics designed for CA firms by ICAI (The Institute of Chartered Accountants of

India).
 Introduction of the Organization’s Business Sector :-

The Institute of Chartered Accountants of India (ICAI or the Institute) was established as

statutory body on July 1, 1961 under Chartered Accountants Ordinance, 1961 to regulate the

profession of accountancy in the country.

ICAI is governed by the Council which consists of nineteen members. Fifteen members are

elected from amongst the members for a period of four years. The remaining four of the

Council members are nominated by the Government of India.

Vision of the ICAI is:

The profession of Chartered Accountants in India should be the benchmark of professional

excellence upholding the principles of integrity, transparency and accountability.

Mission of ICAI:
Is to achieve excellence in professional competence, add value to businesses and economy,

safeguard public interest; ensure ethical practices and good corporate governance while

recognizing the needs of globalization.

These kinds of firms provide different kinds of professional services like audit, taxation and
management consultancy to its clients.

The Chartered Accountancy course is conducted by the Institute of Chartered Accountants of

India, which has its headquarters in New Delhi, 5 regional offices (Calcutta, Kanpur,
Chennai, Mumbai and New Delhi) and 81 branches under these regional centres.
 EXECUTIVE PROFILE

Introduction of the Internal Audit Organization Century Life Science is one of India’s most

respected pharmaceutical companies and is committed to delivering better health through

superior products. By combining strategic research and expert industry knowledge, our aims

to transform itself into a global pharmaceutical drug company. We are associated with the

pharmaceutical industry since 2003. We are having a strong distributors base with pan India

presence and this bases getting wider on gradually.

Century Life Science Pvt. Ltd provides the highest quality prescription drugs and over-the-

counter medication, pharmacy products, skin care products, vitamins and supplements to our

patients, in addition to other items that improve the health and well being of the entire family

at affordable prices. We pay great attention to confidentiality and privacy when dealing with

customers' healthcare needs. We have fully-trained staff members, including physicians and

pharmacists with several years' experience who answer customers' questions about

prescriptions and over-the-counter medicines.

 Company Details:-

CIN : U24233HR2009PTC038743

Company Name : CENTURY LIFE SCIENCE PRIVATE LIMITED

ROC Code : Roc –Delhi

Company Category : Company limited by Shares

Company Sub Category : Non- govt company

Class of Company : Private

: 100000.0
Authorized Capital(Rs)
: 100000.0
Paid up Capital(Rs)

Director Profile

Director :GULSHAN GANDHI

Director : ANJU GANDHI

 DEPARTMENTS OF CENTURY LIFE SCIENCE

1. Administrative
2. Chemical
3. Sales
4. Purchase
5. Finance & Accounts
6. R & D
7. Medical
8. Planning
9. Transport

10. Training &

Development 11.Security

COMPANY PROFILE

BASANT B. GUPTA & ASSOCIATES was established in the year 1990. It is a leading chartered
Accountancy firm rendering comprehensive professional services which include audit, management
consultancy, tax consultancy, accounting services, manpower management, secretarial services etc.

BASANT B. GUPTA & ASSOCIATES is a professionally managed firm. The team consists of
distinguished chartered accountants, corporate financial advisors and tax consultants. The firm
represents a combination of specialized skills, which are geared to offers sound financial advice and
personalized proactive services. Those associated with the firm have regular interaction with industry
and other professionals which enables the firm to keep pace with contemporary developments and to
meet the needs of its clients.
CORPORATE SERVICES
 ● Incorporation of company

● Consultancy on Company Law matters.

● Planning for Mergers, Acquisitions, De-mergers, and Corporate re-organizations.

● Filing of annual returns and various forms, documents.

● Clause 49 review for compliance with fiscal, corporate and tax laws

● Secretarial Matters including share transfers

● Maintenance of Statutory records

● Consultancy on Public/Rights/Bonus Issue of shares.

● Change of Name, Objects, Registered Office, etc.

AUDIT

Broadly, Audit involves the following:

● In-depth study of existing systems, procedures and controls for proper

understanding. Suggestions for improvement and strengthening.

● Ensuring compliance with policies, procedures and statutes.

● Comprehensive review to ensure that the accounts are prepared in accordance with Generally

Accepted Accounting Policies and applicable Accounting Standards/IFRS.

● Checking the genuineness of the expenses booked in accounts.

● Reporting inefficiencies at any operational level.

● Detection and prevention of leakages of income and suggesting corrective measures to prevent

recurrence.

● Certification of the books of account being in agreement with the Balance Sheet and Profit

And Loss Account.

● Issue of Audit Reports under various laws.

Types of Audits conducted

● Statutory Audit of Companies

● Tax Audit under Section 44AB of the Income Tax Act, 1961.

● Audit under other sections of the Income Tax Act, 1961

● Concurrent Audits.

● Revenue Audit of Banks.

● Branch Audits of Banks.

● Audit of PF Trusts, Charitable Trusts, Schools, etc.

● Audit of Co-operative Societies.

● Information System Audit

● Internal Audits

Objective of the Study

I choose to work with BASANT B. GUPTA & ASSOCIATES During this internship I have

learnt many new skills. Before internship I have only theoretical knowledge about work in

organisation but now I have practical some practical experience of working in organisation.

Now I have knowledge about the organisation’s working environment and how organisations

work and achieve their goals and objectives.

This internship has to gives me 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 organisation environment. Following are the objectives that I have

in my mind before working as an internee.

● To improve communication skills.

● To analyze the business situation.

● To establish high standard in professionalism.

● To learn more than the theoretical knowledge.

● To learn book keeping practices of different companies

● To apply the theoretical knowledge in actual organisation.

● To compare practical aspects with theoretical aspects.

● To make quick decision in real situation.

● To learn how to promote and to conduct research in business area.

● To promote my personal knowledge and professional preparation for future. To

properly integrate my theoretical knowledge and practical work.

● To plan for the future of oneself and learn how to adjust in an organisation.

● To know how to present your recommendations in front of your boss.

● To get knowledge of opportunities and threats while entering into an organisation.

● To get exposure to do a work in an organisation and also known about organisational

behaviour, ethical rules and regulations.

 JOB DESCRIPTION

I have tried my best to enhance my abilities and apply the knowledge that I gained during the

studies. On my first day at firm, chartered accountants Mr. Gaurav Jain gave me training

session about TDS returns and computerised accounting in tally software. Mr. Tarun Kumar

(assistant) also shared his practical experience with me and gave me some techniques of this

process. He also guided me that how to prepare VAT return and creating data in income tax

return preparation software.

Different task that I performed during my internship:

1. Maintenance of accounts/ book keeping.

2. TDS return preparation.
3. VAT returns preparation.

Software used during internship:

1. Compu office
2. Tally software
 Overview of TDS

Tax deducted at source (TDS) is a tax that is deducted from income that a company in

India pays to a recipient or supplier if the income amount exceeds a specific statutory limit

in a financial year.

The types of income that are subject to TDS include:

● Salary.

● Interest and dividends.

● Winnings from the lottery.

● Insurance commission.

● Rent.

● Fees from professional and technical services.

● Payments to contractors and subcontractors.

The withholding amounts for TDS can be deducted from an invoice submitted by a supplier

or from the payment that is issued to the recipient or supplier. Examples of recipients and

suppliers include contractors, providers of professional services, employees, and real estate

landlords. Companies submit a TDS certificate to each supplier on a monthly or yearly

basis. The certificate includes the payments, as well as information about the company and

supplier. Companies must also submit an annual return to the government for each recipient

or supplier for the financial year. TDS certificate can be either Form 16 or Form 26Q-.

Form 16 is the TDS certificate which an individual submits and Form 26Q is the TDS

certificate which a company submits to the tax authorities.

TDS must also be deducted from payments issued to third parties by both corporate and non

corporate entities. The entity must deposit the amount owed for withholding at any of the

designated branches of banks that are authorized to collect taxes on behalf of the

government of India. The entity must also submit the TDS returns, which contain details

about the payments and the challan for the tax deposited to the Income Tax Department

(ITD).

For electronic TDS, companies must generate the Form 26Q for each financial quarter. This

is a statutory requirement for the ITD.

 Process flow of TDS

This process flow shows the steps to charge and remit TDS :-

Createvouchersfor
supplierswithpaystatus%
and applicable tax type

CalculateT D S o n vouch
ers

Issuepaymentsto
suppliers with TDS
amountsd e d u c t e d
Submitmonthlypayment for
TDS to tax authority

UpdateChallan

Generatemonthly
statementsandsubmit
quarterly and
annualreturns

Preparation of VAT returns

At the end of the month or each quarter, you file a VAT return with the tax office, and remit
the VAT due.
Prerequisites
You have carried out the activities described in closing for VAT.

Process

1. You prepare a copy of the sales ledger and the purchase ledger.

The ledgers show the invoices that have been paid and on which VAT is thus due.

The ledgers are for your own reference in the event of a checkup by the tax office.

2. You prepare the VAT return. This consists of two steps.

1. You calculate the total amounts of VAT for each tax code.
2. You print the VAT return.
The system fills out the fields in the VAT return using the totals that you calculated
in the first step.

3. For information about preparing VAT returns for VAT withheld from vendors.

4. You file the VAT return with the tax office and remit the taxes.
 Compu-office online software:-

Tax Solution for professionals to provide end-end management of every stage of the tax life

cycle - from provision to estimates and extensions. returns, audit, amendment and planning.

A solution for

● Income Tax Return

● TDS return

● Service tax return

● Balance sheet & audit report

● VAT returns (HARYANA)

● Checking of assessment orders

● CMA

● Document Management

● Challan

● All other required forms

● Standard letters to clients

● Standard formats of departmental letters

● Office assistance works & mechanism.

● Various types of reporting.

 Features:-

● Single switch board for all software

● Common client information for all software

● Searching of records by Code No., Name PAN, etc.

● Online auto-update of software

● Defining user rights with grouping facility.

● Password protection for individual clients

● Active/De-active of individual party from particular/all software

● Single window/screen to input, edit, view and print.

● Front-view buttons for easy understanding.

● User friendly similar layout of all software.

● LAN compatible

● Various data input validation checks to eliminate errors.

● Easy auto backup of your precious data.

● Option to access from any where in the world.

CHAPTER -3
ANALYSIS, INTERPRETATION,FINDINGS AND CONCLUSION

ANALYSIS OF THE QUESTIONNAIRE

Q.1. Have you ever requested specific Services Of the Internal Audit function ?

OPTION PERCENTAGE
NO. OF RESPONDENT
OF
RESPONDENT

YES 5 15.625%

NO 27 84.375%

TOTAL 32 100.00%

PERCENTAGEOFRESPONDENTS

YES
NO

INTERPRETATION
_ Nearly 85% respondents said No
_ Only 15% respondent request Service Of IA Function
Q.2. How will you judge Pharmacy’s present Internal Audit activities towards
improving the performance of the organization?

LENGTH OF SERVICE IN NO. OF RESPONDENT PERCENTAGE

PHARMCY
OF RESPONDENT

1-5 YEARS 1 3.125%

5-10 YEARS 2 6.25%

MORE THAN 10 YEARS 29 90.625%

TOTAL 32 100%
 SERVICELENGTHOFRESPONDENTSINPHARMACY

1-5YEARS
5-10YEARS
MORETHAN10YEARS

INTERPRETATION

More than 90% of the total Respondents have an experience of more than 10 years of service

in pharmacy.
 FINDINGS
Major findings based on primary data collected from the respondents are stated as follows:

_ Internal Audit Department is an independent department

_ Internal Audit activities averagely improves the performance of the organization

_ The expectations of the internal customers were meet by the internal audit functions

_ Respondents are not fully confident to rely on the conclusions reached or

recommendations made by the Internal Audit function

_ The overall internal control of the organization is improves to some extent by work of
Internal Audit

_ The report issued by IA department helps in improving the performances of the departments

_ The quality of IA report can be rated as average.

_ The executives of different departments have only few knowledge on the functions of

Internal Audit Department

CONCLUSION
A Project report on “Internal Audit Functions and its Performance in Century Life Science” is

the topic for my study. It is a brief study of understanding about the IA functions of the

organization.

From the report it can be well identified that the organization has adopted a well and

distinguish Internal Audit functions. The IA department working independently and reporting

to the Audit Committee in a regular basis.

We have felt that the company has come forward to apply new skills and techniques in order

to improve the Functions of IA.

The project work is very beneficial for us and the guidance and support receive from all

during the course of my project was very encourage

Questioner
Respected Sir/ Madam,

As a part of the partial fulfillment of MBA Degree, we the student of Institute of

Management & Technology ( IMT), M.D University, are in process to carry out a study on

the topic “Internal Audit Functions and its Performance in Century Life Science”

So, in this regard, we need your kind cooperation and support with your valuable views on

the topic to do the research. We assure you that the information provided by you shall be kept

strictly confidential and shall be used for academic purpose only. Your help will go a long

way in assisting us to complete our project.

Thanking you.
Yours sincerely,

Please tick off only one answer of the following questions.

1. Have you ever requested specific services of the Internal Audit function?

a) Yes b) No

2. How do you judge Pharmacy’s present Internal Audit activities towards proving

the performance of the organization?

a) Excellent b) Good c) Average

d) Poor e) Very poor

3) Taking into consideration the scope/objectives/structure and responsibilities of the internal

Audit functions, to what extent do you feel that Internal Audit meets expectations?

a) Exceeds Expectations b) Meets Expectations

c) Does not meet expectations

4) How confident are you relying on the conclusions reached or

recommendations made by the Internal Audit function?

a) Completely confident b) Somewhat Confident

c) Not at all confident

5) To what extent do you believe that the work of internal Audit improves the overall internal

control of the organization?

a) Greatly Improve b) S omewhat improves

 Organizational Structure

A hierarchy is an arrangement of items (objects, names, values, categories, etc.) in which

the items are represented as being "above " ,”below," or "at the same level as" one another

and with only one "neighbour" above and below each level. These classifications are made

with regard to rank, importance, seniority, power status, or authority. A hierarchy of power

is called a power structure.

● Partners

● Directors

● Senior Managers

● Managers

● Supervisors

● Senior Trainee Students

● Junior Trainees

Partners are often the founders of the firms. Most of the firms’ names are associated with

the names of partners. They are basically the main parties who issue and sign any report

(specifically audit report) on behalf of the firm. Partners mostly communicate with the
Senior Managers. In other words, the progress of any report and any inquiry is made from
 the Senior Managers and hierarchal structure is strictly followed to avoid any disruption.

Managers are inquired of by Senior Managers and mostly manager manage audit field

works etc. and after field work managers with cooperation of senior managers makes and

finalize any audit report to be issued. Senior Manager is a qualified Chartered accountant

having more than 10 year working experience.

Field work and information collection and implementation of policies by adopting changes

in rules & regulations is the main responsibility of supervisors and trainees. They use

different kind of techniques for error and fraud detection.

BASANT B GUPTA & ASSOCIATES Is having its office in Gurgaon. Almost all the

controls and regulations are dealt at office in Gurgaon. All the offices constitute different

number of departments who basically handle their respective functions. The major

departments include :-

● Audit and Assurance Department:

Firm provides audit and assurance services to wide range of clients which include

performing audits of financial statements of limited companies, NGOs and partnerships.

Firm also performs special assignments which include management audits, internal audits

and investigations. Audit focuses on business issues and the matters that can impact on the

financial statements, whilst also retaining the basic audit procedures that test the

information contained in the financial statements. Services are aimed to comply with the

legal requirements as defined under the various laws and regulations in Pakistan. In doing

so firm not only identify the non-compliances but also assists clients in its rectification,

designing remedial measures and provides guidance to adhere with the laws and

regulations. Firm always end eavour to meet reporting deadlines as set out by the laws and

regulations or as mutually agreed with clients, without compromising the professional, legal

and ethical requirements.

Firm emphasis on delivering high quality services to clients, adding value to their business
 through identification of existing and potential control risks and suggesting best possible

measures in the given circumstances. Firm always place priority in deploying audit teams to

clients who are well equipped with the specific industry knowledge, experience and are

professionally sound.

● Tax & Corporate Department: Firm delivers taxation services to clients and assists

them in obtaining optimal tax benefits available under the laws. Firm also assist clients to

comply with the tax rules and regulations and always keep them updated with the latest

developments and amendments. Tax personnel are qualified professionals, experienced and

knowledgeable. We maintain a comprehensive tax library which always provides ready

references and timely solution in complex situations. Firm provides a comprehensive range

of tax services which includes;

● Preparation and submission of annual tax returns

● Compliance services
● Tax advisory services
● Representation and litigation with tax authorities
● Personal income tax services

In BASANT B. GUPTA & ASSOCIATES same staff is handling with tax matters as
 well as corporate sector. While in corporate firm provides different kinds of services

relating to corporate sector from incorporation to winding up of a Company.

● Computer Department: Department handles the computer related matters and assists

other departments in working properly and efficiently. Department deals with online filing

of income for tax department and finalize audit reports in proper format in a presentable

manner. It deals with networking of computers in office and all other problems which may

be faced by computer users time to time.

● Correspondence Department: It handles with all the correspondence of the firm by

sending the solicited and unsolicited information from time to time. Effectively and

efficiently manage the day-to-day operations of the Correspondence. Interact with clients to

resolve policy and customer issues. Identify trends and remove obstacles in Statement

production and delivery by properly maintaining record of all communication for future

reference.

HR Department: This department is mainly concerned with the recruitment,

 hiring/firing of the firm and this department presents the timely reports on effective

utilization of the resources by the firm

● A purpose of the human resource is to keep the trained employees and recruit new energetic

staff to work. Another purpose of this department is to provide a good working

environment for staff and try to make by facilitating them and arranging some recreational

activities for them. HR knows the real worth of its employees so cares for them and

motivate them to work more efficiently and diligently.

The hierarchy adopted by BASANT B. GUPTA & ASSOCIATES is in accordance with the

legal structure a CA firm shall have. Although the ICAI rules permit of not having the

supervisors and does not make it mandatory having senior manager and manager, yet this

goes as additional benefit for the firm of having such an extensive hierarchy.
CHAPTER - 4
 Overview of Tally ERP 9

Journal entry

Journal Vouchers are used to adjust the debit and credit amounts without involving the cash

or bank accounts. Hence, they are referred to as adjustment entries.

Creating a Journal Entry

Journal entries are usually used for finalization of accounts.

To pass a Journal Voucher,

Go to Gateway of Tally > Accounting Vouchers

· Click on F7: Journal on the Button Bar or press F7.

For example, there may be entries made for interest accrued or interest due. If you have to

receive Interest from a party, the same can be entered using Journal Voucher.

1. debit the party.

2. Credit the Interest Receivable Account
The Journal entry is displayed as shown:

SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.

CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.
 Allowing Cash Accounts in Journals

Journals are adjustment entries, which do not involve Cash account and Bank account.

However in exceptional cases where the user would like to account Journal entries involving

Cash/Bank Account, Tally. ERP 9 has the flexibility of passing such entries by enabling the

option under F12 configuration.

To enable Cash Accounts in Journal voucher,

·
Set Allow Cash Accounts in Journals to Yes in F12: Configure (Voucher Entry

Configuration).
 To pass a Journal voucher with Cash/Bank Ledger,

1. Go to Gateway of Tally > Accounting Vouchers > Select F7: Journal

2. Press the spacebar at the Debit or Credit field.

The Journal Voucher Screen with Cash/Bank Ledger selection will appear as shown:
 Debit Note Entry

Debit Note is a document issued to a party stating that you are debiting their Account in

your Books of Accounts for the stated reason or vise versa. It is commonly used in case of

Purchase Returns, Escalation/De-escalation in price, any other expenses incurred by you on

behalf of the party etc.

Debit Note can be entered in voucher or Invoice mode.

You need to enable the feature in F11: Accounting or Inventory features.

·
To use it in Voucher mode you need to enable the feature in F11 :Accounting Features - Use
Debit / Credit Notes.

· To make the entry in Invoice mode enable the option F11: Accounting Features - Use
invoice mode for Debit Notes.

To go to Debit Note Entry Screen,

Go to Gateway of Tally > Accounting Vouchers

·
Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.

You can toggle between voucher and Invoice mode by clicking Ctrl+V. Pass

an entry for the goods purchased returned to Supplier A:

 Special Keys for Voucher Narration Field:

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of
the voucher type.

· CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.
 Credit Note Entry

Credit Note is a document issued to a party stating that you are crediting their Account in

your Books of Accounts for the stated reason or vise versa. It is commonly used in case of

Sales Returns.

A Credit Note can be entered in voucher or Invoice mode.

You need to enable the feature in F11: Accounting or Inventory features.

·
To use it in Voucher mode you need to enable the feature in F11

:Accounting Features - Use Debit / Credit Notes.

· To make the entry in Invoice mode enable the option F11:

Accounting Features - Use invoice mode for Debit Notes.

To go to Credit Note Entry Screen:

Go to Gateway of Tally > Accounting Vouchers

1.Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8.

You can toggle between voucher and Invoice mode by clicking Ctrl+V.

Pass an entry for goods sold returned from Customer A:

 Special Keys for Voucher Narration Field:

· ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of
the voucher type.

· CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.
CHAPTER - 5
 LEARNING

I learned through my training program, that how I can

● Improve communication skills.

● Analyze the business situation.

● Establish high standard in professionalism.

● Learn more than the theoretical knowledge.

● Learn book keeping practices of different companies.

● Apply the theoretical knowledge in actual organisation.

● Compare practical aspects with theoretical aspects.

● Make quick decision in real situation.

● Learn how promote and conduct research in business area.

● Promote my personal knowledge and professional preparation for future. To

properly integrate my theoretical knowledge and practical work.

● Plan for the future of oneself and learn how to adjust in an organisation.
● Know how to present your recommendations in front of your boss.
 ● Get knowledge of opportunities and threats while entering into an organisation.

● Get exposure to do a work in an organisation and also known about organisational

behaviour, ethical rules and regulations.

Suggestions

● They have good opportunity to introduce the ISO standards training program

which no other firm is giving to customer.

● Try to adopt new technologies that their competitors are not using.

● Make a network that allows its customers to negotiate with them easily.

● In comparison of BASANT B. GUPTA & ASSOCIATES With its competitors

has an edge to make an accurate and error free report.

● The local economy continues to be strong and we believe our typical clients will

continue to flourish.

● The company has mostly professional educated human resources, which are the

biggest threat for their competitors.

● The BASANT B. GUPTA & ASSOCIATES. Has the facility to give coverage even

the small retailers for income estimation who want to take loan from bank.

● BASANT B. GUPTA & ASSOCIATES strongly needs to improve its network

firms so as to be counted among one of the extensively know firms in UP. The

partner needs to make the best use of their goodwill to bring more client age and

reputation to firm. They need to offer the audit services at most economical cost

with the assured quality services to retain and expand clients.

● The infrastructure and working condition reviews can improve the working

efficiency of the trainees. Audit and Assurance is the tough job. Some motivational

meetings and mentoring exercises would bring good feel among employees for their

work. Time to time financial bonuses or performance incentives will energize the

staff.

● The trainees are not offered extra financial or any other incentive for the extra work

or over time. This causes some sort of mental stings which immediately needs to be
 overcome by the management. The firm, to be more competitive in days to come,

still has room for improvement in Information Technology. As firm don’t have any

of its website to attract customer and their timely feedback as most of the good

firms have their own web and well organized.

● Firm also lacks in marketing perspective as it does not any marketer to market and

introduce their business, firm is getting business only on personal relations of the

partners and other firm personnel. So if firm thinks to improve its business volume it

needs a professional marketer as many other big firms adopted and have complete

marketing department.
 Limitations

They have a small staff with shallow skills base in many areas.

● Less number of staff members.

● Developments in technology change this market beyo --. Ability to adopt.

● Change in government policies and procedures may act as threat for company.

● A small change in focus of large competitor might wipe out any market position

. achive.

● -------------------. Has many competitors. Under certain

circumstances these competitors may act as a major threat for the organisation.
 Conclusion

● is overall one of the profit making and

reputed firm of Etah. The organization since its very first day is devoted to providing

quality services. The detailed and through review of work and clients’ trust shows the

perfection with which it is working.

● The firm has earned a distinction of being placed in the category 'A' in the list of panel

of auditors maintained by State Bank of india. Moreover only these “A” category firms

can audit of listed companies.

● The Institute of Chartered Accountants of India has also carried out the Quality Control

Review and has issued satisfactory QCR report stating that the firm has conducted the

audits of the clients in accordance with International Standards on Auditing.

 Bibliography

In my work I used different webs to collect information/data which includes.

WWW.ICAI.ORG

WWW.WIKIPEDIA.COM

www.computaxonline.com