PAC670: PRACTICAL TRAINING REPORT

1.0 ACKNOWLEDGEMENT

Bismillahirrahmanirrahim.

Alhamdullilah, I am very grateful and thankful to Allah S.W.T. for giving me the
opportunity to perform my responsibilities as a trainee and to complete the practical
training report within the stipulated time.

I would like to take this opportunity to express my deepest appreciation to Director

of KTAC & ASSOCIATES SDN BHD, Puan Katijah Binti Abdul Arabi for providing all
facilities and supports to meet my practical training requirements.

Moreover, special thanks to Puan Laili bt Md. Nor @ Ibrahim who has given
guidance, valuable knowledge, useful critics and always kept me on the correct path in
order for me to carry out the practical training smoothly. I also wish to thank KTAC &
ASSOCIATES SDN BHD staff for their cooperation throughout this internship programme.
Their suggestions and ideas have been tremendously valuable for me to apply in every
day work life.

I also would like to express my gratitude to my internship coordinator, Puan

Norazian Hussin who has given guidance and clear instructions before and during my
internship period. Also, special thanks to my visiting lecturer, Puan Nooraslinda Abdul Aris
for taking the time to visit the internship site and evaluate me.

Last but not least, I would like to express my gratitude towards my parents for the
constant encouragement and support throughout the practical training. I would not be here
physically if it was not for both of them.

May Allah S.W.T. reward each and every one of us. Amin.

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2.0 INTRODUCTION

Accounting is summarising of all transactions at one place to reflect a company’s

financial position. As students leaned theories in colleges or universities, it makes them
knowledgeable but unless they know how to apply this knowledge in real scenario or the
real working environment they cannot become a successful accountant. Benjamin Franklin
once said “Tell me and I forget, teach me and I may remember, involve me and I learn”, it
shows that theory is important as it gives us knowledge about the subject but practical
leaning is how that knowledge is applied. Nothing beats practical, hands-on learning when
it comes to understanding a subject and preparing for our chosen career.

Undergoing a six-month practical training or industrial training is mandatory for all

degree students of Universiti Teknologi Mara (UiTM). It is a prerequisite to fulfil the course
in order to complete the degree as well as graduate from the university. The training refers
to work experience that is relevant to professional development prior to graduation.
Besides, practical training also prepares students to face the real working environment
and get acquainted with the organisational structure, business operations and
administration functions.

Practical training is a ladder to golden job opportunities. By undergoing practical

training, students will attain meaningful profession education. In recent years, increasing
number of accounting firms, businesses and companies are using the services of
accounting students as interns, thereby giving career opportunities to the students who
gain real world experience. Practical training helps students to sharpen their skills during
training phase at the accounting firms or other companies. It will give students clarity about
the career and they can choose their stream wisely. Apart from that, practical training also
helps students to perform well and increase their career options through their increases
exposure to firms due to practical training. Last but not least, practical training will help
students to secure a good job in the future. The chances to be hired by the firms or
companies they served during practical training are high as the students had proved their
abilities to perform the tasks given.

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3.0 COMPANY BACKGROUND

KTAC & ASSOCIATES SDN BHD (809591-D) has been established in 2008
(previously known as Kathy Tax & Accounting Consultancy) and located at No. 2-2, 2nd
Floor, Jalan Citra, Plaza Citra, 43000 Kajang, Selangor Darul Ehsan. This company has
four departments which are accounting department, taxation department, GST
department and secretarial department.

This company provides services such as accounting, taxation, secretarial service,

GST accounting and consultancy service to its various clients ranging from personal, sole
proprietorship to a private company. The company consists of six permanent staff and six
practical trainees including me. It operates from Monday to Friday from 9AM to 6PM.

List of Services Provided

a. Accounting

Bookkeeping is one of the accounting services provided by the firm. It involves

recording of daily transactions of the clients into Auto-count system, which is a system
that eases the process of generating the final financial statements. Other than that, the
firm also provides service of restructuring daily transactions from the clients’ manual
records before going through auditing process. Finally, clients can also consult the firm on
how to prepare a proper bookkeeping.

b. Taxation

KTAC & ASSOCIATES SDN BHD offers a wide range of taxation services from
tax planning to consultancy services. They assist clients in tax planning to enable them to
achieve maximum benefits allowed by law. Other than that, the firm also helps clients in
submitting various type of tax returns form and also paying tax instalment and tax charged
on behalf of clients.

c. Secretarial Services

The company also acts as a company secretary. It involves preparing the minutes for
companies’ general meeting and also maintaining the statutory records of client which are
required under Companies Act 1965. It also involves in assisting client in submitting
various forms which are required by Companies Commission of Malaysia (CCM).

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d. Goods & Service Tax (GST)

KTAC & ASSOCIATES SDN BHD also provides Goods & Service Tax (GST) services to
assist clients in making payment for GST. GST is a multi-stage tax on domestic
consumption. GST is charged on all taxable supplies of goods and service in Malaysia
except those specifically exempted. A registered person is required to charge GST on his
taxable supply of goods and services made to his/her customers. He is allowed to claim
back any GST incurred on his purchases which are inputs to his business.

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4.0 SUMMARY OF WORK DONE

In KTAC & ASSOCIATES SDN BHD, I was more exposed to accounting and
taxation field. I was also being exposed to secretarial job. The following are the summary
of work done during the internship period:

SDN BHD ENTERPRISE INCOME TAX

1. WANT TO GO HOLIDAY 1. THIAN YUAN PRIMA 1. NARAYANASWAMY

SDN BHD RESTAURANT S/O
2. ARKITEK REKAPUTRA 2. RESTORAN SYAZ PATCHAIMUTHU
SDN BHD CORNER 2. MARIANI BINTI
3. RESTORAN SYAZ 3. RESTORAN SYAZ MAJU AHMAD
CORNER (M) SDN BHD 4. KEDAI RUNCIT NIZARUDDIN
WAWASAN DUA PULOH 3. DEVAN KUMAR S/O
5. THE GREAT AUTO SOMALU
SERVICE
6. SEONG HING TYRE
SALES & SERVICES

ACCOUNTING

The accounting software that is used by this company is known as Auto-count

Professional Accounting which is quite similar to UBS and MYOB software. On my first
day of internship, I was given a list of companies and clients (income tax) that I need to
work on (as stated above). There are two (2) types of company which are Sdn Bhd and
Enterprise.

Procedure to record Client Document

In the first week, I have been taught on how to record Client’s documentation by
using Microsoft Excel. The first step is clarification process based on clients’ source of

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document such as official receipt, bank statement, and cheque buds were given to me as
to classify according to their type of expenses, purchases and sales.

The procedure above was a basic procedure by KTAC in order to record Client
Documentation. Documentation records are very important as it would become an
evidence for the Tax Agent and Client if an Auditor from LHDN wants to audit the
Company.

After the information and amount from the source of document were properly
classified and recorded in the excel sheet, I used the accounting software namely Auto-
count Accounting Professional.

Procedure using Accounting Software

The first step to use Auto-count is to enter opening balance based on accounting
from previous year. In my case, I would enter opening balance from Accounting 2016.
After that, I would record the amount and detail extracted from cheque bud. Such situation
is due to the loss of source of document by client and the client does not provide us with
an adequate source of document. I also need to make bank reconciliation, so it will be tally
with the amount at bank statement. Moreover, I must look at their un-presented cheque to
make sure that there is no double record. Then, I also prepared the Schedule of Capital
Allowances as the working note for Fixed Asset in the Balance Sheet and Tax
Computation.

Based on procedure that I explained above, I was taught on how to use Accounting
Software named Auto-Count. The Software makes the accounting preparation easier and
not redundant. Once I have completed both Worksheet and Auto-Count, I will begin to
prepare Tax Computation.

I have been doing account and computing taxation for enterprises and also private
companies. For private companies, all their accounts and taxations must be audited.
KTAC auditors are Mohd Nizarudin & Co. and also Zamzuri & Co. Therefore, Audit fees,
Secretarial Fees, Accounting charges, Filing fees, Service tax and printing and stationery
charges will be added to clients’ expenses. After send out to the auditor, auditor would
check and review. Then they would give draft and also signing pages to make final review.

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TAXATION

In order to prepare Tax computation, I have been taught on how to compute the
Tax for personal and company. The process of computation of Tax is similar from what I
have learned during Diploma and Bachelor. Moreover, I got the opportunities to fill up
Form C, Form BE and Form B manually.

Procedure computation of Tax for Personal (Income Tax)

1) I have to record client’s relief based on document given.

2) Prepare Tax Computation for client based on Personal relief and deduction.

3) Calculate Tax Payable for Client’s based on Tax Table.

Procedure computation of Tax for Company

1) Record the Net Profit/Loss from Auto-count (Software)

2) List down the Non-Allowable Expenses: - Calculation must be (1/3 from NAE)

3) Deduct the Capital allowance and relief (Enterprise only)

4) Calculate Tax Payable for company based on Tax Table.

Once tax computation is complete, I will prepare two booklets which each consists
of Statement of Declaration, Profit and Loss Account, Balance Sheet, Tax Computation,
Notes to the Account and Capital Allowance Schedule. This booklet is to be sent to client
and when the client receives the booklet, my work is done and the client is ready to be
billed.

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5.0 STRENGTHS AND WEAKNESSES

5.1 Strengths

There are a lot of strengths that can be discussed during my internship in KTAC &
ASSOCIATES SDN BHD. First of all, this company gives the opportunity to students to do
internship programme in their company without any requirement because they really want
to help students to gain knowledge and experience.

Other than that, this company has different types of services that I can learn. One of
the benefits that I gained from this company is it helps to improve my understanding of
fields that I had learned during diploma and degree studies such as accounting, taxation
and secretarial. This training also helps to enhance my problem solving skills. Throughout
the accounting process, I am able to think critically, logically, creatively and analytically in
the application of knowledge and suggest possible solutions to accounting issues.

Besides that, it also improves my communication skills. During this internship period,
I have been communicating with clients by phone and having face-to-face discussions.
Moreover, the company believes in me and treats me as its own staff. All the senior staff
have been a great help as they constantly give advices and explanation regarding any
enquiries. Practical trainees also have their own workstation which is great. Last but not
least, this company has CCTV for safety of clients’ documentation as well as staff
belonging.

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5.2 Weaknesses

Despite being a well-established company, KTAC & ASSOCIATES SDN BHD has
their own weaknesses.

In KTAC & ASSOCIATES SDN BHD, it has a small number of staff as they have to
serve a lot of clients which I am sure it will get a little out of hand during peak periods. The
working space is also small which makes it difficult and uncomfortable when clients come
to deliver documents or have discussions.

It is also difficult to trace client’s record (Microsoft Excel) which were done from
previous years as they were not compiled nor being kept in one folder/PC. Also, those
documents are exposed to corruption as several PCs do not have anti-virus software. Last
but not least, some of the equipment in this company is not functioning well such as
several PCs cannot connect to WiFi and the punch card machine is ten minutes late
compared to the exact time.

Regardless of these problems, I do think they do not hinder me from completing my

task. I do hope this company will find ways to overcome these identified problems.

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6.0 RECOMMENDATION

I recommend this company to maximise its small office space and hire more staff
in order to serve clients better. It also should increase its number of supervisors as one
supervisor cannot supervise six interns at once. A supervisor should only supervise two
interns at once in order to produce good results.

This company also needs to sort clients’ records (Microsoft Excel) and compile
them accordingly as it would make it easier for someone else to find the records. Each PC
also needs an anti-virus software in order to protect important files from being corrupted.

Besides that, each PC should be able to connect to WiFi as it would be easier for
employees/interns to get their job done without having to use someone else’s PC.

All in all, I am content with the company’s environment and the treatment I received
from the director and staff. They are very friendly and they do not hesitate to share their
knowledge and working experience.

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7.0 CONCLUSION

The wealth of knowledge and experience that I have gained during this internship
period has helped me to get a clearer picture of the career path in the accounting
professions. Some knowledge and experience gained had not been taught in the
university and it is offered in practical training sessions as university teaching sessions
are more emphasis on theoretical basis.

Other than that, the practical training has also enabled me to cultivate a good
relationship between the company’s staff and I. Our good rapport has given me the
opportunity to form a relationship with off-campus professional staff as well as gain the
exposure to the real working environment. I was able to improve my communication and
interpersonal skills during this training. I could work independently with minimal
supervision and manage my time very well.

Finally, it is clear that practical training programme needs to be continued as a

compulsory subject in the completion of the undergraduate programme. In addition, the
practical training is able to provide a wide range of practical training experience and
knowledge for students to apply in the real working environment. It also helps to embrace
a positive attitude among students to prepare for a more challenging future.

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8.0 APPENDICES

Clarification Process
Example of Worksheet (Microsoft Excel)

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Accounting Software (Auto-Count)

Example of record in Software

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