Assurance Intern handbook For internal circulation only
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Dear New Assurance Intern,
Welcome to S.R. Batliboi. We are extremely delighted that you will be working with us. You have achieved one of the important moments in your career and become a part of a leading organisation to shape your career on your way forward as a professional. Helping you achieve your potential is important to us. We are committed to doing everything we can to help you grow and succeed. We have developed the Intern Handbook which will help you familiarize with our practice and important processes. We encourage you to maximize the benefit by reviewing this handbook. Our vision is to build the finest Assurance practice in the country and we are confident that, with active support from you, we will be able to realize this vision soon. We wish you the very best as you start your journey with us.
Warm regards, Sudhir Soni Raman Sobti National Leader People & Resourcing Leader Assurance Services Assurance Services
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Our Assurance Services We have 49 partners in the Assurance practice as on January 1, 2014. As the name suggests, the assurance service line provides assurance services to clients. This primarily includes audits required by Indian Companies Act 1956 (statutory audits), tax audits required under the Income-tax Act, 1961, and limited review engagements. Audits are conducted by the fellow member firms of S.R. Batliboi, which are S.R. Batliboi & Co LLP, S.R. Batliboi & Associates LLP, S R B C & Co LLP and S. V. Ghatalia & Associates LLP. The firm also provides other assurance and accounting services, which are directed towards supporting stakeholders such as lenders and investors. In addition, these our service offerings also assist management looking at global financial markets, including overseas listings.
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Audits of financial statements and other attest services
Limited reviews
Reports for various securities/stock exchange authorities and regulatory agencies
Certification
US GAAP/ IFRS compilation and conversion advisory
Agreed upon procedures
Revenue Assurance
Re-engineering the Financial Statements Closing Process
Support on Corporate Governance
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Support on process manuals
Vision 2020 Our Global Ambition Our Purpose
Our Ambition
Building a better working world
Be a US$50b distinctive professional service organization
Deliver the highest quality and ECS
Deliver the highest quality in the profession
P ublic Interest C apital markets confidence
# 1 of the Big 4 in Assurance
A ttract and develop talented leaders
$ 17bn of revenue, 20% from SSLs
Our Strategy Focus on winning in the market
Create the highest performing teams
Strengthen global, empower local
Win the audit rotation
Recruit and develop talent
Clear strategic direction
Invest in Ch2 with SSLs
Mobility across geographies and SLs
Empowerment and accountability = alignment
Private Middle Market and Emerging economies
Inclusive, borderless teams
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Delivering Exceptional Client Service in Assurance Exceptional Client Service
Be Connected
Be Responsive
Be Insightful
E nsure our client’s business agenda is at the centre of our service
A nticipate the impact of market trends and regulatory changes for our client
A ddress the issues on our client’s agenda by being relevant and specific
E ngage with our client at the highest level
A lign our teams to our client’s current and future needs
B uild and broaden connections and establish powerful relationships throughout our client’s organisation
G enerate mutual trust through the on-going exchange of transparent feedback
A lign the power off our knowledge and experience to our client’s needs
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P rovide appropriate challenge
Learning & Development in Assurance A successful career isn’t just about following a structured ladder of vertical promotion but about broadening skills, widening roles, engaging in critical projects etc. We are deeply committed to create a worldclass knowledge environment and therefore, the firm has invested very significantly in building our learning needs by offering a range of training programs essential for your professional and personal growth. We encourage you to create and manage your own learning plan. This will allow you to take responsibility of your own learning and development and also contribute to the firm in achieving its vision. We currently offer more than 16,000 courses on our learning management system. You’ll also have a chance to participate in a number of milestone learning events to mark your progress.
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Internship at SRB Internship offers learning experiences outside of the classroom and enhances your academic and career goals. An internship can help you “test drive” a possible career path. It’s the perfect way to connect your academic experience with the professional working world. An experience with us will: • Give a competitive edge • Provide opportunity to network and interact with individuals within your field • Facilitate networking contacts • Provide opportunity to apply what you have learned theoretically • Help develop productive work habits, communication and organisation skills
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Experiences across levels First year First year of internship is the most important time in your career as this is your first interaction with a professional organization. In your first few weeks, you will be trained to perform certain administrative work before you are asked to visit the client place for an audit work.
Some areas that you will get to perform • S imple walkthroughs like bank receipts and payments • Simple test of controls mainly around payroll, cash and bank, and procurement with guidance • Primary substantive procedures for areas assigned and execute audit procedures on areas as stated below • Cash & Bank – testing bank reconciliations • Investments – mainly investments in mutual funds, certain specific procedures on investments in subsidiaries
• Operating Expenses (sampling using microstart and vouching the samples selected for operating expenses like travel and conveyance, printing and stationery, staff welfare, etc.) • Other liabilities – checking payments for TDS, PF, ESIC • Share capital – checking register of members, authorized and issued share capital • Payroll in case of small and medium enterprises
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What is expected of me? • Help team members in completion of audit appointment formalities
• Understand GAM and effective preparation of referenced, linked lead sheets
• Learn and use basic excel functions for data analysis (e.g. Vlookup, Sum if, Count if, Pivot etc.)
• Understand the effective use of service delivery tools such as EY Random and Micro Start
• Learn the various internal and external resources (e.g. Assurance database, GAAIT PE, Source one, Assurance home page) in performing the work
• Read the matters stated in “Spotlight” a fortnightly update sent by the firm’s technical team
As part of the audit work performed you should ensure that you perform online documentation of work-papers to enable review on timely basis, communicate the audit issues to seniors and also review the working papers to ensure minimal reruns.
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Second year You would have attended one of the Core skills training and Assurance Intern School by now. Having learnt some of the basic audit procedures and documentation standards in your first year, in the second year of internship you are expected to become involved with wider areas of audit and also be able to execute the tasks assigned with minimal supervision.
Some areas that you will get to perform • Most of the planning and risk identification and Strategy and risk assessment procedures for small companies with guidance from your seniors • W alkthroughs of certain additional areas like procure to pay, payroll, capitalization of fixed assets etc. in case of medium and large engagements
• T est of controls mainly around payroll, cash and bank, fixed assets and procurement independently • Understand the client continuance and acceptance requirements
What is expected of me? • A t this stage of your professional development, you are expected to be able to execute audit procedures as stated below; • Re-perform bank reconciliations • Perform simple analytical review procedures recalculation of rent expense, communication costs, travel costs, communication expenses, power and fuel expenses, commission expenses etc.
• Detailed audit of payroll • F ixed assets additions and disposal testing, Depreciation recalculation/reasonability • Certain current assets loans and advances like security deposits, employee loans/ advances, travel and other advances • Current liabilities – creditors (capital and revenue), other liabilities etc.
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• Draft certain audit issues in SRM and any other deliverable • M anage preparing and sending out confirmations • Tracking and updating confirmation responses • Performing inventory and cash counts • Demonstrate basic knowledge of accounting and auditing standards in the work steps that you perform • U se spreadsheets and process voluminous data in an error-free manner • U se audit tools like Microstart and proactively research and use the knowledge database established by firm • To be able to independently work with junior client staff to obtain the information necessary for executing the assigned audit tasks
• Understand from your seniors the time line and budget for completing your tasks, engage with the client staff and explain the nature of your tasks and work collaboratively to complete your tasks in the allotted budget • Able to communicate the work status effectively to your seniors and start developing the maturity and judgment to know when to escalate any matters • Y ou will be involved in various attest engagements other than statutory audit e.g., certifications, agreed upon procedures, and tax audits. While working on such engagements, you should be able to demonstrate your ability to develop an understanding of the relevant requirements for the tasks assigned and discuss relevant exceptions noted in testing with your seniors on the engagement.
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Third year As you enter the final year of your internship, you are only few months away from becoming a fully qualified professional. The nature of work that you perform is not expected to change substantially from the work that you did in the second year. You will however need to demonstrate your growth by bringing efficiencies, minimizing rework and applying more rigor to the tasks performed be you. You should be able to demonstrate a basic understanding of the client’s business and industry segment and pertinent industry issues.
What is expected of me? •
Seek involvement in more complex areas of the audit which requires use of professional judgment
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Participate in more activities of audit planning and completion e.g. performing general audit procedures, helping with overall analytical review etc.
•
Able to write simple memo or contribute to sections of key audit documentation like ASM, ICFC and SRM explaining the issue and work done in a clear and concise manner
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Able to lead a team of one/two interns for the audit of small company or be able to execute certain tax audit and certification assignments on your own
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Client interaction is an important aspect of being in a professional services organization, and as a senior intern you should continue to build on the established relationships with the client staff and be able to use them to improve on time taken for data gathering to bring efficiency to the work done by you
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All three years of internship are progressive steps towards you becoming a complete professional. You will learn and acquire technical accounting and auditing knowledge and important soft skills like working in a team in a formal work environment, interaction with clients, discipline of meeting deadlines, and verbal and written communication skills.
As beginners in the profession, we understand that you may take time to achieve the desired results. Your seniors understand this and you should seek regular guidance from seniors and implement the same. An important aspect of your performance is that you should be enthusiastic, maintain a positive attitude at work and be willing to learn from every task that you perform. You should also show a high degree of respect for policies and procedures of the firm.
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Performance Management The Performance management & development process (PMDP) is a critical element in our People First strategy. It helps you fulfil your personal potential, and it helps the organization to achieve its strategic goals. Through PMDP you can: • Establish clear work expectations • Receive feedback that will help you develop your competencies and your career • Receive guidance that will help you enhance your performance and satisfy your development needs We’ll work with you closely in the early weeks. You’ll have a counselor, who’ll put time and effort into becoming an expert in you and your career development. They’ll work with you to
consider all the feedback you receive and help you find the career path that will take you in the right direction. The PMDP process consists of three key activities: • Annual Goals and Development Planning • Mid Year review and counselling • Year End assessment and counselling You’ll progress fast because we provide our people with the highest quality feedback and support. Our mentoring program offers a chance for a combination of formal, structured conversations and daily on-the-job discussions. And as your experience here grows, you’ll be able to pass your own knowledge on to new starters.
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Counselling
Counselling
Performance conversations allow you and your counsellor to look back and evaluate your performance by bringing together and considering multiple views. They’re an excellent way to identify where to focus your development efforts — so your next assignment can help you improve your performance further.
In addition to performance reviews, career development conversations are also an important aspect of coaching. These conversations should challenge you to explore your individual interests, aspirations, needs and options. They also create meaningful goals — both from an annual and a longer-term perspective.
Performance Reviews
Career Development
Engagement Evaluations On-the-job coaching Engagement Evaluations are means to provide timely and ongoing feedback at regular intervals. It helps the counselee to assess their -weaknesses and strengths on an engagement wise basis. It is also aimed to assess and record performance on each chargeable engagement during the year and form a key basis of an employee’s overall assessment.
On-the-job coaching conversations are hands-on interactions that occur in the context of daily work, that help you gain a broader perspective, increase clarity and address particular issues and challenges. This practical, ongoing learning will improve your performance and help you get things right, the first time. Working with a colleague who can coach you on a work-related issue will often help you gain deeper insight into your own performance. It’s one of the best ways to pick up gems of practical knowledge that you’ll use time and again.
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Corporate guidelines Confidentiality
Maintaining firm’s security
The internet can be a key channel for both existing and prospective clients and engagements. However, please think carefully before posting anything online – especially confidential firm or client information, or when using social networking sites such as LinkedIn or Twitter. Use our intranet and firm-approved external sites to win business and keep our data secure.
The Firm provides secure IT and physical environments to protect our information. But we all have a role to play to make sure that our security measures are effective by following them carefully. Connect your firm’s computer to the network regularly to enable security updates and back-up processes to run. It is important to memorize and keep passwords to yourself. Also, store documents securely when working at client locations. Report suspicious persons and activities immediately.
Posting information on the Internet
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Using client information Our business is built on trust — trust our clients have in our ability to handle their information securely. Do not speak about client matters to non-firm staff without explicit approval to do so.
Sharing information with others Sharing approved information about firm and the services we offer is key to working effectively and winning new business. Talk to people about the firm and what we do. But consider what you’re saying, who you’re talking to and who else can hear you before you say it. Just take a second to think before you speak or hit the ‘Send’ button. Consider whether email is an appropriate substitute for live conversation; a phone call or meeting may be the best way to communicate when you’re dealing with confidential subject matter. Ensure to encrypt the confidential mails. Check with your Manager if you’re unsure.
Learn what your client’s confidentiality requirements are before you start work. Take only the information that you need from clients and remember to return it, or dispose it securely, when you are finished.
Using a mobile data device Data devices such as a laptop, blackberry, iPhone or iPad are better than ever but just as easy to lose in a busy world. Care must be taken to maintain firm’s assets in proper condition. The users must ensure security against fire, water damage, theft etc. Notify the Risk Management team and the owners of any confidential data as quickly as possible if a device is lost or stolen. Use firm-approved devices to enable you to better connect with your clients and colleagues.
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Key contacts National Leader – Assurance Services Sudhir Soni
sudhir.soni@in.ey.com
20560
People and Resourcing Leader – Assurance Services Raman Sobti
raman.sobti@in.ey.com
14767
HR Lead – Assurance Services Nidhi Sony
nidhi.sony@in.ey.com
20083
Assurance location HR contacts Delhi & Chandigarh Priyanka Rishi
priyanka.rishi@in.ey.com
11009
Sonali Jagwani
sonali.jagwani@in.ey.com
14536
bhavika.bhatia@in.ey.com
22412
anirban.das@in.ey.com
26088
kalpana.kumaran@in.ey.com
85120
preethaa.g@in.ey.com
48619
vamsi.palakurti@in.ey.com
42322
arundhati.banerjee@in.ey.com
33580
Mumbai Bhavika Bhatia Ahmedabad & Pune Anirban Das Bangalore & Kochi Kalpana Kumaran Chennai Preethaa G. Hyderabad Vamsi Palakurti Kolkata Arundhati Banerjee
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A comprehensive handbook for Assurance Interns is available on the HR Online under the Developing section.
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Our offices
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Ahmedabad 2nd floor, Shivalik Ishaan Near. C.N Vidhyalaya Ambawadi, Ahmedabad-380015 Tel: +91 79 6608 3800 Fax: +91 79 6608 3900 Bengaluru 12th & 13th floor “U B City” Canberra Block No.24, Vittal Mallya Road Bengaluru-560 001 Tel: +91 80 4027 5000 +91 80 6727 5000 Fax: +91 80 2210 6000 (12th floor) Fax: +91 80 2224 0695 (13th floor) 1st Floor, Prestige Emerald No.4, Madras Bank Road Lavelle Road Junction Bengaluru-560 001 Tel: +91 80 6727 5000 Fax: +91 80 2222 4112 Chandigarh 1st Floor, SCO: 166-167 Sector 9-C, Madhya Marg Chandigarh-160 009 Tel: +91 172 671 7800 Fax: +91 172 671 7888 Chennai Tidel Park 6th & 7th Floor A Block, No.4, Rajiv Gandhi Salai Taramani, Chennai-600113 Tel: +91 44 6654 8100 Fax: +91 44 2254 0120 Hyderabad Oval Office, 18, iLabs Centre Hitech City, Madhapur Hyderabad - 500081 Tel: +91 40 6736 2000 Fax: +91 40 6736 2200 Kochi 9th Floor “ABAD Nucleus” NH-49, Maradu PO Kochi - 682 304 Tel: +91 484 304 4000 Fax: +91 484 270 5393
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Kolkata 22, Camac Street 3rd Floor, Block C” Kolkata-700 016 Tel: +91 33 6615 3400 Fax: +91 33 2281 7750 Mumbai 14th Floor, The Ruby 29 Senapati Bapat Marg Dadar (west) Mumbai-400 028, India Tel: +91 22 6192 0000 Fax: +91 22 6192 1000 5th Floor Block B-2 Nirlon Knowledge Park Off. Western Express Highway Goregaon (E) Mumbai-400 063, India Tel: +91 22 6192 0000 Fax: +91 22 6192 3000 NCR Golf View Corporate Tower – B, Near DLF Golf Course Sector 42 Gurgaon–122 002 Tel: +91 124 464 4000 Fax: +91 124 464 4050 6th floor, HT House 18-20 Kasturba Gandhi Marg New Delhi-110 001 Tel: +91 11 4363 3000 Fax: +91 11 4363 3200 4th & 5th Floor, Plot No 2B Tower 2, Sector 126 NOIDA-201 304 Gautam Budh Nagar, U.P. India Tel: +91 120 671 7000 Fax: +91 120 671 7171 Pune C—401, 4th floor Panchshil Tech Park Yerwada (Near Don Bosco School) Pune-411 006 Tel: +91 20 6603 6000 Fax: +91 20 6601 5900
S. R. Batliboi & Co. LLP S. R. Batliboi & Co. LLP is partnership firm of Chartered Accountants, registered with the Institute of Chartered Accountants of India,and having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata – 700016. Š 2014 S. R. Batliboi & Co. LLP Published in India. All Rights Reserved. This publication contains information in summary form and is intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither S. R. Batliboi & Co. LLP nor any of its fellow network firms can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. This publication is meant for distribution internally, to our clients or distributable on specific requests only.