UNIVERSITY OF ZIMBABWE
FACULTY OF COMMERCE
DEPARTMENT OF ACCOUNTANCY
AN ATTACHMENT REPORT BY
BADZE JOYCE
R109611G
SUBMITTED TO THE UNIVERSITY OF ZIMBABWE AS A PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR HONOURS IN ACCOUNTANCY DEGREE
NAME OF INSTITUTION
BDO Zimbabwe Chartered Accountancy
YEAR 2013
1
DEDICATION
This report is dedicated to the writer’s family and friends. A special feeling of gratitude to her
loving parents whose words of encouragement and push for persistence still rings in her ears.
The report is also dedicated to the writer’s friends who have supported her throughout the
process .Their efforts will always be appreciated.
i
ACKNOWLEDGEMENTS
The writer would like to express her sincere gratitude and appreciation to the University of
Zimbabwe for coming up with this degree program not forgetting the pleasure in giving her a
chance to experience the real world, to be precise the working environment. Special thanks to the
following:
 The faculty of commerce for providing work related learning
 Our industrial liaison officer for helping the writer to secure an attachment place
 Partners at BDO Zimbabwe Chartered Accountants for giving the writer an opportunity
to be attached at their firm.
 The management team at BDO for their willingness to help the writer to understand and
appreciate the auditing profession.
 Articled clerks for being more than generous with their expertise and precious time.
 Clients for providing the required information
 The writer’s family and friends for their unwavering moral support
ii
FOREWORD
This report has been produced as a partial fulfillment of bachelor of commerce honors degree in
accountancy at the University of Zimbabwe. It expresses the practical experience of a student in
a working environment at BDO Zimbabwe Chartered Accountancy during the course of an
industrial attachment.
iii
TABLE OF CONTENTS
DEDICATION
ACKNOWLEDGEMENTS
FOREWORD
TABLE OF CONTENTS
LIST OF ABBREVIATIONS
CHAPTER 1
: EXECUTIVE SUMMARY
CHAPTER 2
: ABOUT BDO ZIMBABWE CHATERED ACCOUNTANCY
CHAPTER 3
: MISSION AND VISION
CHAPTER 4
: BDO ZIMBABWE’S ORGANISATIONAL ACTIVITIES
CHAPTER 5
: SERVICES PROVIDED
CHAPTER 6
: THE AUDIT PROCESS
CHAPTER 7
: STUDENT ATTACHMENT AND DUTIES PERFOMED
CHAPTER 8
: SKILLS DEVELOPMENT
CHAPTER 9
: PERSONAL EVALUATION OF THE INDUSTRIAL ATTACHMENT
CHAPTER 10
CHAPTER11
: RELEVANCE OF THEORY TO PRACTICE
: RECOMMENDATIONS
iv
CHAPTER12
: CONCLUSION
v
LIST OF ABBREVIATIONS
BDO
: Binder, Djiker and Otte
VAT
: Value Added Tax
TOC
: Test of Control
ISA
: International Standards on Auditing
AIC
: Auditor in Charge
NGO
: Non Governmental Organization
PPE
: Property, Plant and Equipment
PM
: Planning Materiality
IAS
: International Accounting Standards
IFRS
: International Financial Reporting Standards
PAYE
: Pay As You Earn
RSN
: Randomly Selected Number
APT
: Audit Process Tool
CAW
: Client Audit Workspaces
CTA
: Certificate of Theory in Accounting
RMM
: Risk of Material Misstatement
1
CHAPTER 1
1.0EXCUTIVE SUMMARY
1.1Introduction
The writer’s period of attachment exposed her to different areas of an accounting firm which
include internal as well as external audit, cash counts, stock take (counts) and tax computations.
The writer also had a chance to use various accounting systems for example syspro 6.1, SAP,
Bellina and pastel.
1.2Objectives
The major aim of this report is to give a summary of a student’s attachment period at BDO
Zimbabwe highlighting or explaining the duties performed by the student, difficulties faced if
they are any and solutions to those difficulties as well as the skills gained. It also aims to give
recommendations to both the University of Zimbabwe and BDO Zimbabwe Chartered
Accountants for improvement of attachment in order to achieve the objectives of attachment.
The information in the report also intends to give a picture of BDO Zimbabwe Chartered
Accountants in terms of its profile, the services offered , market and the environment in which it
operates.
1.3 Introduction to BDO Zimbabwe
The writer started her attachment on the 3rd of September 2012 and its one of the days she will
never forget. There were attaches from various universities as well as first year Articled Clerks.
The Human Resource Manager took them on a tour of the firm introducing them to the Articled
2
clerks, supervisors and Business Service Departments and other members of staff. The writer
was also introduced to the partners and Mr. Kudenga the founder of BDO Zimbabwe also
highlighted to the students what the firm expected from them and what the firm was prepared
to do for students so that the writer may have exposure that she needs in the working
environment. The writer then spent the rest of the week in the audit office familiarizing with
BDO systems, IT and audit manuals.
1.4 FORMAL LEARNING COURSES
The writer had her first formal learning course at BDO Zimbabwe which was conducted at the
Rainbow Towers from the first to 3rd of October 2012.During that week the writer covered most of
the theory related to auditing, history of BDO Zimbabwe, mission, vision, their core values, the role
of an audit assistant and what one has to do to become a chartered accountant. Most of the theory
that the writer covered during induction had already been covered during her second year second
semester auditing module, thanks to the accounting department and the University of Zimbabwe as
a whole. The induction program was very enlightening and gave the writer a clearer picture of what
would be expected of her at BDO Zimbabwe.
The writer had some formal learning courses during the last three months of the year to help her
develop her professional and academic skills. These courses mainly focused on the latest
developments in the application of accounting standards as well as well as how to use the BDO
audit process tool .In other training sessions the writer learnt how to communicate professionally,
the BDO dress code in order to maintain high standards and increase market share in the industry.
The writer was also updated on changes to both auditing and accounting standards and software
3
used by BDO Zimbabwe when auditing. Tests were also written to check whether the students had
understood or not.
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CHAPTER 2
INTRODUCTION
This chapter gives a description of BDO Zimbabwe’s background, the organizational structure as
well as the partners and their areas of responsibility
2.0 HISTORY OF BDO ZIMBABWE CHARTERED ACCOUNTANTS
BDO Zimbabwe Chartered Accountants was formed in 1981 in the city of Harare with only one
branch as Kudenga and Company. It was the first firm of black chartered accountants in
Zimbabwe.
Since then, the firm has never looked back. It is the fifth biggest firm of chartered accountants in
Zimbabwe, with its offices in Harare and Mutare. In 1995, the firm affiliated with BDO Southern
Africa. BDO is an acronym of the Germany founders Binder, Djiker and Otte who formed it in
1963.
BDO Southern Africa is part of BDO International, one of the fifth largest accounting and
consultancy firms in the world. BDO has member firms in over 100 countries and a network of
over 553 offices around the world. BDO Global Co-ordination B.V, incorporated in the
Netherlands with an office in Brussels-Belgium, conducts the network.
Kudenga and company’s affiliation with BDO resulted in a new name (BDO Kudenga and
Company) and in the use of manuals and other specialist services. As part of BDO growth BDO
Kudenga and company in January 2010 changed its name to BDO Zimbabwe Chartered
Accountants. It is a firm with five partners complemented by over two hundred members of staff
5
in the Tax, Accounting, Audit and Information Technology departments. BDO Zimbabwe
celebrated its 30th anniversary in November 2010
It has been structured in such a way that it has two companies BDO Zimbabwe Chartered
Accountancy and BDO Zimbabwe Tax and Advisory Services (Pvt) Ltd. Below is the
organizational structure of BDO Zimbabwe.
BDO Zimbabwe Chartered Accountants
Abridged Organizational Chart
Audit Division
6
Managing
partner
N.Kudenga
HR and
Admin
manager
R. Nyoka
Audit and
training
M.Makaya
and G.
Gwatiringa
Senior
Audit
manager
D Madhigi
Audit and
Adminstrat
ion
G.Sabaraut
a
Informatio
n
Technolog
y
R.Chuma
Admin
staff
Audit
managers
IT Staff
Audit,IT
and
technical
J. Jonga
Audit Staff
BDO Zimbabwe Tax and Advisory Services (Pvt) Ltd
7
Management
Consultancy
N.Kudenga
Senior Manager
Bussiness Developement
Service
Tax Director
M.Ngorima
Senior manager
Business risk
consultancy
Manager
Consultancy
Consultancy
Staff
Staff
Staff
Mr. Ngoni. Kudenga is the founder and most senior partner of BDO Zimbabwe .He is the
head of each and every department. The other four partners joined BDO Zimbabwe when
the firm was already established namely Mr. J. Jonga, Mr. M. Makaya, Mr. G. Sabarauta
and Mr. G. Gwatiringa. Audit is the major department and they are also involved in other
departments such as tax.
CHAPTER 3
Mission, Vision and Values
3.1 Introduction
8
This section will give a brief explanation of BDO Zimbabwe’s mission, vision and values as well
as the objectives.
3.2 Mission, Vision and Values
Mission
To deliver an exceptional and timely value adding assurance, advisory and tax service to its
clients.
Vision
BDO Zimbabwe’s vision is to advance its position as a leading Zimbabwean auditing, and
management consultancy firm providing quality and exceptional services to its valued clients.
3.2.1 Objectives of the firm
1. To provide world class auditing, accounting, taxation and financial management and
consultancy services to clients.
11. To accelerate the development of indigenous manpower resources in the accounting
profession by using local resources towards self sufficiency.
111. To contribute to the economic development of our economy.
3.2.2 Core Values
 Professionalism
 Innovation
 Excellence
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BDO Zimbabwe focuses on giving the client exceptional service delivery hence giving the
clients the results they need and also creating long lasting relationships that will also benefit the
future generations in taking the profession further
All activities carried out by BDO Zimbabwe rotate around core values and these core values are:
 Client satisfaction
 Team work
 Flexibility
 Continuous growth
 Professionalism
 Maximizing employee potential and quality of life
 Excellency
Client satisfaction
The firm’s major aim is to increase the quality of work in order to keep the client satisfied at all
times. When serving clients' staff is required to maintain a high degree of professionalism. This
means that members of staff should maintain high levels of integrity, objectivity, competence
and exercise due care and skill when handling the clients’ business. From the beginning of this
year the partners were emphasizing on the issue of providing exceptional client service in order
to satisfy as well as attract other clients.
Team work
Teamwork is an integral part of BDO Zimbabwe’s operation. All audit assignments are carried
by groups of two or more members of staff. Each member of staff is allocated a specific section
10
of the audit file. When the assignment is completed, all sections are compiled to make a single
file. Each member has the BDO audit processing tool (APT) and the Auditor in charge create a
CAW for the client being audited. Each member of staff attaches his or her work on the CAW
and answers the audit program as well as signing off the working papers as the Preparer .The
auditor in charge reviews the work and raise queries if they are any, the juniors make corrections
and then the manager reviews again the working papers .After corrections are made the file is
then reviewed lastly by the partner in charge.
The diagram below illustrates the review process of a client’s audit file
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Partner in
charge(h)
Manager in
charge(g)
Supervisor in
charge(e)
Auditor in
charge(f)
Audit
assistant
(a)
Audit
assistant(
b)
Audit
assistant(
c)
Audit
assistant(
d)
The auditor in charge reviews the work of their juniors. Assistant a, b, c and d work on their
different sections, and they come up with an audit file which is firstly reviewed by the auditor in
charge (f), then by the supervisor in charge (e), then by the manager in charge (g) and finally by
the partner in charge (h). Sometimes there is no supervisor in charge, from the auditor in charge
the file goes straight to the manager in charge then to the partner. The partner is the one who
signs the audit file and the opinion on the file. All this is done to ensure that work is done
efficiently.
CHAPTER 4
12
BDO ZIMBABWE’S ORGANIZATIONAL ACTIVITIES
Nature of industry
BDO Zimbabwe is in the auditing field whose main role is to express an opinion on financial
statements of the client based on work carried out during audits. The firm is also involved in
consultancy work, i.e. Tax planning, advice and examination of computations, internal audits as
well as IT audits. Other firms that are in the same industry are Deloitte and Touch, KPF, AMG
Global and KPMG just to mention a few. The firm also trains those who want to be Chartered
accountants
4.1 Corporate culture
a) Rules of professional conduct
The Institute of Chartered Accountants of Zimbabwe which is established under the Chartered
Accountants Act (Chapter 27:02) has laid down certain rules of professional conduct, which are
as follows:
 High levels of integrity, objectivity and independence should be maintained when dealing
with clients.
 When dealing with clients one should be fair and honest and have professed concern for
the client’s best interest.
 Highest technical standards and competence should be maintained to ensure quality of
work and service.
 Behavior should encourage cooperation and good relations amongst members of the
profession and augment the stature of the profession and ability to serve the clients.
13
 In BDO Zimbabwe there is a strict observance of the rules of professional conduct and
any infringement is justly treated.
b) General principles
When conducting an audit the following basic principles must be observed:
 Objectivity: Staff must always be honesty, sincerity and have an unprejudiced attitude in
their approach towards work for all assignments.
 Efficiency: As people always say time is money, staff is required to use time
economically by obtaining audit evidence and assurance in the minimum possible time at
the least possible cost.
 Thoroughness: All work must be done carefully and all means of obtaining audit
evidence and assurance should be exhausted.
c) General culture
According to BDO Zimbabwe’s manual the general culture is made up of the following:
 Conduct on assignments: Staff members are a reflection of the firm so their behavior
should show high standards of the firm.
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 Punctuality: Staff members are expected to be on the client’s premises by 8:00 am
prepared to work and to always follow the standards set by BDO Zimbabwe or when
necessary the client’s.
 Staff movements: Staff must keep the client well-versed of their movements. When
working in the office, staff should let the receptionist know of their movements.
 Dress code: Staff is expected to be smartly and professionally dressed. Male staffs of the
audit are supposed to wear dark colored suits at all times except when they are going for
a stock count or when there is training at the BDO Zimbabwe office. Females are
expected to be dressed accordingly and should always put on a jacket.
 Confidentiality: No member of staff is allowed to reveal matters relating to BDO
Zimbabwe or any client of then firm. Audit files belong to the firm and are supposed to
be treated as confidential at all times.
 Client relations: All interactions with the client should always be friendly and
professional.
 Financial interests: Staff should not have financial interests in any client’s concern. This
is done as to prevent the loss of independence on the part of the auditor as this is likely
affecting the judgment when rendering an audit opinion.
 Briefcases: Staff is supposed to carry files and working papers in briefcases to ensure
safety of working papers, client schedules and other information relating to the client
when travelling to and from the client. However due to increased use of laptops only a
few still carry briefcases since all working papers are no longer hard copies.
15
 Client’s telephone: Staff must not use the client’s telephone for personal purposes
without the consent of the client. All incoming calls should be kept as short as possible to
avoid congestion on the switchboard and cause a cost in time of the client.
4.2) Managing partner
The managing partner is currently Mr. Ngoni Kudenga, the founder of the firm. He manages all
activities of BDO Zimbabwe. He is a former ICAZ president, fellow of CIMA and sits on the
board of many companies
Chartered Accountancy department
Administration and staff partner
Mr. Sabarauta is the administration and staff partner. He is the one who is responsible for staff
issues and he administers all departments. He is a member of ICAZ Review Council which
reviews compliance of firms with International Standards and Quality Control.
Audit and Information Technology Partner
Mr. Jonas Jonga is the audit and IT partner. He manages the changes in audit methodologies as
well as audit processing tools and he works hand in hand with the IT department. He is the one
who makes sure that laptops are enough for the staff. He is a member of ICAZ Technical
committees and BDO Technical Committees in Southern Africa.
Audit Training and Technical Partner
16
The partner in charge was Mr. Martin Makaya and in January this year another partner was
added Mr. Gilbert Gwatiringa. These two are responsible for the training of the staff members on
BDO manual and other training needs. Mr. Makaya has a passion of training, he is a former
lecturer at the University of Zimbabwe and is still lecturing CTA to the students training to be
Chartered Accountants. He sits on the ICAZ Council and chairs the Continuing Professional
Development Committee.
Tax and Advisory Services department
Tax and Advisory Director is Mr. Maxwell Ngorima. He is responsible for any matters relating
to tax, bookkeeping and secretarial services. He is a member of the ICAZ Tax Committee and an
associate of the Institute of Certified Tax Accountants as well as a member of the executive
council.
17
CHAPTER 5
SERVICES PROVIDED
INTRODUCTION
This chapter gives a brief description of the services that are offered by BDO Zimbabwe.
Services provided
The firm offers a wide range of services and some of the services are:
 Auditing of financial statements
 Accounting as regards financial statements , budgets and management control
 Tax planning, advice and examination of computations
 Secretarial services in company formation and legal requirements
 Consultancy, investigations, financial management, profit analysis and business
evaluations
 Information and Technology audit
 Financial advice on mergers , takeovers , cash , budgetary control investment
management
5.1) Auditing and Assurance service
This is the service, which serves to assure the users of financial statements that they are free
from material misstatements. There is a team of specialists which is equipped with
commitment, knowledge, and experience as well as dynamism which is essential in serving
clients. Most of the staff is employed to render this service. The procedures of the audit are
18
governed by International BDO standards hence the audit department has model audit
programs, which are governed by International Financial Reporting Standards (IFRS) and
International Standards of Auditing (ISA).
5.1.1 Methods of auditing
The firm carries out its audit based on a risk based approach. This means that the planning and
execution of the audit are conducted to limit to an acceptable level the firm’s exposure to audit
risk. Audit risk is the risk that the auditor may express an inappropriate audit opinion without
knowing it. It is the function of inherent, control and detection risk
In order to carry out a risk analysis, different financial statements areas (FSA) are identified. The
FSA are groupings of transactions that are similar in nature and function. They are grouped from
trial balance, for example, trade receives. Trade receivables represent the net effect of
transactions relating to the supply and payments of goods and services by customers. Therefore,
trade
Receivables are an FSA, which comprises of customer sales, payments, returns, discounts and
bad debts.
In relation to each FSA we have what we call assertions. The audit procedures are designed in
such a way that the assertions are valid for each of the FSAs with high risk of misstatement. The
table below shows the main audit assertions.
19
Audit
assertions
Existence
Completeness
Accuracy
Valuation
a) Completeness: this is an assumption that no transactions, assets or liabilities have been
omitted in establishing FSA values, in other words all transactions and events that were supposed
to be recorded has been recorded.
b) Existence: This is an assumption that transactions or assets underlying the FSA are genuine,
exist physically or actually took place in the normal course of the business.
c) Accuracy: This is an assumption that the financial data is correct in terms of arithmetic
computation and amounts.
d) Valuation: The assertion assumes that the value of the FSA is stated at a fairly and
appropriately.
5.2 Accounting
An appreciation of accounting is a prerequisite in the field of auditing. As such, accounting is
also another core service offered by BDO Zimbabwe. Work performed in this department
includes the writing of books and records from source documents, drawing financial statements
20
from records already prepared by clients, producing monthly management accounts, cash flows
and budgets.
The accounting department also serves to update clients on the latest developments on IFRS so
that the financial statements are presented in an internationally acceptable way.
5.3 Tax consultancy
BDO Zimbabwe’s greatest strength is also in Tax expertise .It plans and computes corporate tax,
income tax, value added tax and expatriate tax planning for both individuals and companies in
Zimbabwe. It also advises its clients when they have disagreements with the Zimbabwe Revenue
Authority (ZIMRA). The firm has knowledge of tax legislation in Zimbabwe and is of great
benefit to its clients hence delivering exceptional client service. The major client of this
department is Capital Bank.
5.4 Company secretarial services
The firm attends to the proper formation and registration of companies and close corporations. It
also attends to the continuing technical maintenance of minute books, share registers, resolutions
and maintenance of employees’ personal files.
5.5 Information and Technology
BDO Zimbabwe also gives clients IT services; their use of state of the art systems and familiarity
with new auditing technology i.e. computer audit techniques (CAAT) which enables the firm to
carry out computer audits for example auditing a client’s accounting systems i.e. to see if they
21
have any loopholes. This means auditing the efficiency of the systems used by clients. It also
assists clients beyond implementation in the selection of efficient hardware and software.
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CHAPTER 6
THE AUDIT PROCESS
6.1 INTRODUCTION
The chapter gives an in-depth study of the audit process, detailed explanation of what audit is all
about as well as the BDO audit approach or methodology.
6.2 BDO audit approach
The audit approach used by BDO has six phases namely
a) Scoping
b) Identifying and assessing risk
c) Designing audit response
d) Obtaining audit evidence
e) Forming an opinion
f) Reporting
23
The following is a diagrammatic representation of BDO audit approach
Scoping
Identify and assess risk
Design audit response
Obtain audit evidence
Form opinion
Report
The BDO audit approach they adopted is designed to be applied to audits of all entities to ensure
all audits are carried out at a consistent high standard and the size of the client does not affect the
approach adopted. The firm recognizes that each client is different with different risks which
should be addressed in a way which is appropriate to the situation.
24
Scoping
At this phase major concern is about client acceptance and understanding terms of engagement
and it involves the following procedures:

Engagement letters

Materiality

Identifying FSA’s and assertions

Identifying cycles
Identify and assess risk

Preliminary analytical reviews

Understanding the entity

Fraud

Engagement team discussion

Types of audit procedures

Using the work of internal auditors
Obtaining audit evidence

Test of controls (TOC’s)

Substantive Analytical Procedures (SAP’s)

Other Substantive Procedures (OSP’s)
25
Form an opinion

Written representations

File completion

Forming an opinion

Management letters
Report
The report can either be qualified or unqualified. Unqualified reports are issued when the
financial statements are free from material misstatements
6.3 THE AUDIT PROCESS
The audit process involves the following stages:
1) PLANNING
2) EXECUTION
3) COMPLETION
6.3.1 PLANNING
This section is carried out before field work by the auditor in charge of the audit assignment,
who is usually a person of a senior level. Sometimes juniors help the auditor in charge when
there is a lot of work to be done or when its peak period. This section caters for the preliminary
work i.e. the assessment of risk so as to determine the scope of the audit as well as determining
the extent of the substantive procedures to be done. This is also the stage where the internal
controls are assessed. This is where the information about the client’s business is known.
26
6.3.1.1 Terms of engagement
Audit terms are communicated between the client and the auditor in charge (AIC) so as to
minimize risk of misunderstanding between the two parties. This is carried out in the form of an
engagement letter. An engagement letter is a legal requirement which has to be agreed upon and
signed by both parties before the field work commences. It shows acceptance as well as the
nature of work that the auditors are expected to do.
6.3.1.2 Gathering information relating to the client
An audit strategy for a particular client should be based on a clear understanding of the client’s
business and commercial environment. Knowledge of the business helps to identify events,
transactions and practices that may have a material effect on the financial statements which helps
in:

Answering of inherent risk and internal control questionnaires and,

Planning appropriate procedures
Information relating to a client can be obtained from:

Audit working papers of the prior year

Discussion with the client and engagement partner

Memorandum and articles of association

Media
27
6.3.1.3 Risk and assurance
A detailed assessment of the risks that may affect the financial statements is performed. The
three components of audit risks are:
 Inherent risk- It is the risk that a financial assertion is vulnerable to a material
misstatement. It is the risk that the financial statements may contain a material
misstatement due to the nature of the client’s business or industry in which the firm is
operating in.
The inherent risk questionnaire
Inherent risk is assessed through the use of inherent risk questionnaires. There are two inherent
questionnaires which are; abbreviated inherent risk questionnaire and the full inherent risk
questionnaire.
i.
ii.
The abbreviated inherent risk questionnaire. This is used for all clients who are:

Not complex

Nonprofit making organizations
The full inherent risk questionnaire .This is used for all the other clients who do not fall
under the abbreviated inherent risk questionnaire. Each questionnaire is made up of a number of
critical questions designed to identify the existence of factors leading to increased inherent risk.
Questions on the questionnaire are grouped under the following headings:

Management characteristics
28

Engagement characteristics

Operating and industry characteristics
 Control risk – risk that occurs due to poor internal controls or a weak system..
Weak systems and controls increase the risk in which misstatement could occur
and not be detected.
 Detection risk- It is the risk that material misstatements may occur and the
auditor may fail to detect them.
Assessment of the control environment
The control environment reflects the overall attitude, consciousness and actions of management
and or owners concerning the importance of controlling the business. BDO Zimbabwe use walkthrough to see if they rely on the controls. The system is documented i.e. how it works and after
documenting, then a walk through a test of the system is done to see if it is operating as
documented. As this is being made an observation on the weaknesses of the system is done.
If the control environment is more effective, the risk of material misstatement of financial
statements is less. The controls are assessed whether or not they are in line with technological
advancement in the relevant industry and if they can be improved. The ideal control environment
is generally an environment where all controls function well.
Audit approach
To come up with an appropriate audit approach it is necessary to determine Planning Materiality
(MP).
29
Planning materiality (MP) determination
The audit procedures are directed towards detecting material misstatements in the financial
statements.
The objective is to make a preliminary judgment about the level at which misstatements would
become material, so as to come up with audit procedures whose nature and extent would provide
sufficient evidence that the financial statements are free from such material misstatements.
Materiality varies with the nature of the client and there is no percentage or amount which can be
applied to all clients. The following are guidelines on determining materiality.
Category
Guideline
1) Trading entities
1% turnover or 2 % of gross profit
2) Asset based or investment entities.
1% of total assets or 5% of normalized practice
income
3) Non profit making entities.
1% of gross income or 1% of expenditure
6.3.2Execution
Fieldwork
After all the necessary work is done under planning, execution as per plan commences, ensuring
it is carried out by staff that have a level of experience and knowledge relevant for the planned
procedures.
30
During the early months of the writer’s audit, she carried out audits on the following: vouching
of expenses and bank and cash for clients such as TN Harlequin Luxaire, Plan international,
Indozim and Pro wick. As the writer became more confident and experienced, she managed to
handle some of the challenging sections which are usually done by seniors such as trade
payables, accounts receivables, investment, VAT, payroll and inventory for clients like
Zimbabwe Power Company (ZPC), Comarton consultancy and Zimbabwe Mining Development
Company.
6.3.2.1 Working papers
The firm used to have A4 and A3 pads tailored for audit with BDO Zimbabwe logo but now
laptops are being used to create working papers. The A4 pads are only used for stock counts
nowadays. These working papers are attached on the CAW which is created for that client and
they are kept to provide evidence that the auditor conducted the audit with the requisite degree of
care and skill and to support his opinion on the financial statements of the client. Information on
the working papers includes:
 Name of client
 The client’s period end date
 Name of person who prepared it and the date
 Name of the person who reviewed it and the date
 Schedule reference
 Schedule heading
31
 Objective of the working paper
 Source of information on the working paper
 Background i.e. a brief description of what is being audited
 Basis of selection( selection criteria)
 Details of items selected for testing, invoice numbers amount supplier
 Work performed
 Legends
 Conclusion
All working papers should include these before they are put on file. All information obtained
should be documented.
6.3.2.2 Referencing
Referencing is done at all stages. All working papers must carry a reference number, which is
alpha or numeric. The alpha depends on the section that one will be working on. For example
working papers on payroll have a reference S whereas working papers to do with creditors are
referenced H. Each section will have several subsections. Within each subsection there will be
several working papers.
Cross-referencing is done on both working papers (the two) i.e. where it is coming from and
where it is going. Cross-referencing is done in RED
Working papers are arranged in a logical and systematic way so that they are easy to understand
and following through. Lead sheets are attached first and are always on top of other working
papers because one cannot prepare any other working paper without having a lead sheet
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6.3.2.3 Legends
Work performed is shown by means of legends. These legends show what one has agreed his or
her work to (evidence) or whether there was addition, subtraction or multiplication. Although
they are standard letters used as legends, one might need to introduce a new letter now and then
in unusual cases. A key to these letters is given below the audit work ,some of the most common
legends include:
^
- Cast checked
CC
- computation checked
E
- Extension checked
B
- Agreed to the ledger
W
-
Agreed to prior year working papers
All legends must be in GREEN
6.3.2.4 Lead schedule

Each section has an uppermost working paper called a lead schedule or a lead sheet. The
lead schedule is a summary of the underlying documentation in the section and is cross
referenced to the various subsections. Apart from then name of the client ,name of the
preparer and reviewer the lead schedule contains the following:

Comparative figures for prior year(typed in red)
33

Cross referenced to the sub schedules from which the information comes which are
usually the trial balance or the ledger.

Any relevant accounting policy applicable to the section

Columns for adjustments which may be made during the audit
6.3.2.5 Audit programs
A number of audit program is used for auditing clients and each section has its own program .An
audit program is a composed set of guidelines to assist the auditor in the process of auditing a
particular section .The audit program was prepared by BDO and its only a guideline , auditors
encouraged to use their own professional judgment.
After auditing a particular section one has to sign off the program and include references to the
working papers where detailed audit is done. For each section the completed audit program is
filed immediately below the lead schedule but before all other working papers.
6.3.2.6 Files
The firm keeps a permanent and current file. In the current file one would find the current
working papers filed according to sections.
Below are the most sections that constitutes an ideal file at BDO Zimbabwe
Planning section
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A-Property, plant and equipment
B-Investments
C-Inventories
D-Accounts receivables
E-Long term liabilities and directors' loans and emoluments
E2-Other receivables
F-Cash and bank
G- Accounts payable
J-Intercompany and related parties
H-Other payables
K-VAT
P-Statutory matters and reserves
Q-Income
R- Cost of sales
S- Payroll expenses
T-Overheads and other profit or loss items
CC- Financial Statement Position
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GG-Going Concern
DD- Subsequent Events
JJ-Consolidation
VV-Related Party transactions
Completion Section
After completing the groundwork, a checklist is completed. It is in the form of a questionnaire
used to establish that the senior on the job has reviewed all working papers and corrections have
been made. A complete set of financial statements includes;
a. Balance sheet
b. Income statement
c. Cash flow statement
d. Accounting policies and explanatory notes
e. A statement showing either

All changes in equity

Changes in equity other than those arising from capital transactions with
owners and distribution to owners
Audit report
Audit reports can either be one of the following
a) Qualified audit report
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This type of report is written when either or all of the following aspects are noted

The auditors are not given all the information they consider necessary

Proper books of accounts are not kept

The going concern of the company is in doubt

Financial statements do not comply with International Accounting Standards
b) Unqualified reports
This is issued when the financial statements are free from material misstatements
According to ISA 700 there are also modified and unmodified reports
1. Unmodified reports
This is when the auditor concludes that the financial statements are prepared in
accordance with the applicable financial reporting framework.
2. Modified report
This is issued when the financial statements are not free from material misstatements
or when the auditor is unable to obtain sufficient appropriate audit evidence
Management report
After completing audit a management report is produced detailing:
 The problems encountered during the audit though not material to warrant a qualified
audit opinion.
 Weaknesses of the client’s accounting system and how it can be improved.
 How the client can improve its financial position
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The format of the report is as follows:
1. Observation : A detailed explanation of the weaknesses and examples should be cited
2. Risk identified: Possible misstatements that can be caused by the risks above
3. Recommendation: The firm’s recommendation to management so that it can rectify the
situation
4. Management comment: At the bottom of each report a space is left for the client’s
management to put a comment as well as what they intend to do with the
recommendations.
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CHAPTER 7
STUDENT ATTACHMENT AND DUTIES PERFORMED
7.1 Introduction
The writer was attached at an accounting firm so she spent her attachment period in the audit
department. This chapter gives a brief description of sections edited by the writer during her
attachment period as well as the companies that she audited.
7.2Companies audited

TN Harlequin Luxaire

Plan International

Comarton consultancy

Indozim

Prowick

Zimbabwe Power Company

ZMDC

Borrowdale Methodist church

ZETDC head office
The following are the sections edited by the writer during her period of attachment and the
approaches used;
7.3T Section-Audit of Expenses
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Audit risk-Overstatement of overheads
Assertions tested
Completeness-Whether all purchases and payments are recorded
Validity-whether all expenditure was authorized properly
Accuracy-correct recording on invoice amounts and amounts paid
Audit approach
The selection was then done using the BDO sampling worksheet. Selections for vouching where
uses the software known as IDEA .The following audit steps were performed on the selected
amounts;
a) Examine invoices, goods returned notes , check cast and extension
b) Check for proper authorization of purchase
c) Check for proper allocation of expenditure
d) If the item is a stock item , trace it to stock records
e) Verify payment by tracing check to the bank statement
Conclusion
After completing the above procedures, all the work was then reviewed by the auditor in charge.
On conclusion when all work has been done satisfactorily, overheads section was then concluded
as not being materially misstated.
7.4 D. Section – accounts receivable
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Objectives
To test for overstatement of debtor balances and understatement test for provision for doubtful
debtors
Assertion tested
a. Completeness – if recorded debtors represent all amounts in the current or not yet
paid by customers.
b. Existence - if recorded debtors represent amounts for which customers are liable.
c. Accuracy – if recorded debtors are appropriately recorded by amount and account in
the underlying financial records.
d. Valuation – if appropriate adjustments are made to record debtors for amounts which
are not expected to be recoverable and changes in foreign currency exchange rates.
Audit approach
A debtor’s list is obtained from the client. Selection is then performed through the list,
sometimes the auditor select high values and low values or high values only and the postal
addresses for the selected debtors are obtained from the client. Positive confirmation letters are
then sent on the client’s letterhead. Should any debtor fail to reply, a second confirmation is sent
again.
If the second confirmation proved to be fruitless a telephone conversation with the debtors would
be conducted. Responses from circularized debtors are then agreed to working papers. Should
any differences exist reconciliation is sort from the debtors. Besides this, analytical reviews of
41
material variations between prior year and current year are done. Staff debtors are circularized
and discrepancies are investigated.
Provision for doubtful debts is audited by reviewing the debtors ageing analysis and assessing
the reasonableness of the provision for doubtful debts provided. The company policy on
provision for doubtful debts is sort and reviewed for reasonableness. Correspondence files are
reviewed to ensure the adequate effort is made to collect the debt.
Cutoffs tests are done to ensure that all credit sales made before year end but not paid by year
end are valued in the debtors list and all those that took place after year end are excluded. Five
invoices or receipts before cutoff date and five after cutoff date are selected. The invoice
number, date, amount and debtors name are recorded. Date of dispatch and date entered into
debtors’ statement are also checked. If not recorded in the correct accounting period an adjusting
journal entry is passed. In addition, five credit notes before and five after cutoff date is selected
and the name, amount, date, year, credit note number and the reason for issue are recorded. The
credit notes are checked for proper authorization.
7.5 F. Section-bank and cash
Objectives
To test bank balances for overstatement and bank overdraft for understatement.
Assertions tested
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a. Completeness-whether all receipts are recorded and deposited.
b. Validity –whether there are no fictitious cheques recorded as receipts for fraudulent
cheque payments are recorded.
c. Accuracy –whether there are no errors in recording receipts or payments
d. Cutoff –whether the receipts and payments are recorded in the correct accounting period.
Audit approach
The first task is to obtain standing authority letters from clients in order to have access to their
bank accounts. The purpose of the standing authority letter is to give permission to the banks to
supply auditors with all the information about their account balances. Confirmation letters are
then prepared by auditors and sent to the banks to confirm directly to the auditors.
Copies of client’s bank reconciliation are obtained and worked on. The casting is checked and
the balances as per bank statement and cash book are agreed to the bank statement and cash book
respectively. This is done to make sure that it is correct and properly done. In addition an
understatement test is carried out for outstanding (unpresented) cheques. The understatement test
is executed as follows;
a) Obtain subsequent bank statements and record all debits above planning materiality up to the
end of the month following the year end.
b) Check if the cheque dates are after year end i.e. valid post year end transactions
c) If not, then trace the amount to the list of unpresented cheques.
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The understatement test is performed to detect whether or not all unpresented cheques are
recorded. Furthermore material amounts on the list of unpresented cheques are selected and the
cheque dates and date through bank are noted. A search for stale cheques is conducted by noting
the date on which they were written. Stale cheques (6 months and above) are written back to the
cash book by debiting and crediting the affected accounts.
Work is done of outstanding deposits. The receipt date and amount, deposit date and date
through the bank are recorded. The receipt amount is traced to the bank deposit slip to ensure
that the amount was deposited in full and in time after year end. In cases where there are delays
in depositing the amount, explanations are sort from the client and assessed for reasonableness.
Funds on deposits are audited by inspecting passbook and certificates. Overdrafts are reviewed to
ensure that the balance is, within the company’s and directors borrowing ability. Where the
overdraft is secured the details thereon are recorded.
7.6 G-Section: Accounts payable
Objectives
To test for potential understatement of accounts payable
Assertion tested
a. Existence – whether recorded amounts relate to genuine accounts payable
b. Accuracy – whether the recorded liabilities have a correct description and amount
c. Completeness-whether all existing liabilities are recorded in accounts.
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Audit approach
An accounts payable list is obtained from the client; balances are agreed to ledger. Some
analytical reviews are performed to obtain reasonableness of the account balances. An accounts
payable age analysis is obtained from the client. All differences between the balance per list and
the account payable ledger is reconciled and the reconciling items are vouched. Group company
balances are separately disclosed and major balances agreed to the accounts receivable list of the
sister company.
A search for unrecorded liabilities is also conducted by;
1. Examining subsequent cash disbursement records
2. Examining first five purchase records after year end
3. Examining first five unprocessed records after year end
4. Examining receiving records immediately prior to year end.
Accruals are audited by examining the underlying documentation and checking for calculations
and consistency of the amounts.
7.7 Leave pay provision
Leave days accrued are agreeing to the leave day register and the rates are agreed to personal
files. Usually recomputations are done and are compared with the client’s computed to check
45
whether the computations of the client are correct. Leave days accrued are checked to ensure that
they do not exceed the maximum, especially for accounting staff.
Specific risk identified
Risk –understatement of creditor balances to show a more favorable working capital position.
Responses – search for unrecorded liabilities using;
a) Unprocessed invoices
b) Subsequent payments
c) Receiving records
7.8 J .Section –Intercompany balances
Objectives
To test intercompany receivables for overstatement and intercompany payables for
understatement
Audit approach
A Schedule of the company’s balances is obtained and debit balances are checked to ensure that
they agree with that company’s credit balance in the same account and vice versa for credit
balances
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7.9 S Section –Payroll expenses
Salaries are audited through observation and vouching or computation.
Computation is performed where there are few employees by multiplying the rates by the
number of months. Vouching is mainly performed where computation is not feasible.
A sample of employees is selected using IDEA through payroll. The following audit steps are
performed
1. Agree basic salary, allowance and overtime to personal files
2. Check for calculation of PAYE, NSSA, AIDS levy and net pay
3. Ensure that statutory deductions are being remitted to the relevant authority on time
4. Verify payment by agreeing net pay to check amount or tracing the amount to the bank
transfer schedule
5. Physically verify the employee
7.10 STOCK COUNTS
The writer also attended stock counts for the following companies:
 ZETDC Head office
 TN Grill
 TN Harlequin Luxaire
The writer observed the counts done by the clients and prepared the following working papers:
47
a) Overstatement test

Select 10 items from the ledger(usually high value items)

Compare client count with audit count and kardex noting any variance

Verify that the counting staff have stock take instructions

Observe the rest of the stock count
b) Understatement-Same as above but the items selected from the floor
c) Cutoffs –the writer selected last five invoices for both goods received and goods
issued out and verified whether they were posted in the correct period or not
d) Cash count-The accountant counted cash on hand in the presence of the writer and
another witness and they all signed the cash count working paper prepared by the
writer
e) System documentation
This was done for all clients mentioned above and the writer attended some of the stock
counts on her own and prepared the files.
48
CHAPTER 8
SKILLS DEVELOPMENT
8.1 INTRODUCTION
The section highlights the writer’s personal and professional developments during the industrial
attachment.
Skills development
The writers work experience has helped her improve her personal skills in a great way. She has
managed to develop the following key skills competently over the period of her attachment
8.2Skills developed
8.2.1 Decision making
During the audits there are situations when it’s necessary for one to make decisions despite the
level at work. The writer was able to identify problem areas and make recommendations. During
audits some transactions are not fully addressed by audit programmes and one has to develop
additional audit procedures which would bring about audit evidence. One of the situations was
when the writer went to Mutoko Plan International to vouch expenses and to verify assets alone
without the assistance of a senior person.
49
8.2.2 Communication
The writer managed to demonstrate ability to communicate information fluently and confidently
as well as to represent ideas and facts logically; this was all greatly improved because of the
nature of the work which involved a lot of discussions with the client so as to obtain required
evidence. The writer managed to develop communication skills in expressing ideas clearly and
concisely. This was through conducting various audits which are reviewed by the auditor in
charge, manager and partner respectively.ss
8.2.3 Meeting skills
The writer managed to improve on this by attending in-house training meetings and meetings
that were held before starting auditing a client. Some of the skills were developed through
individual preparation, contribution and participation in the meetings.
8.2.4Planning and tracking
This was achieved through meeting deadlines set on the audit. Audits are pre- planned and as
such they have deadlines, therefore the AIC would allocate sections to be covered as well as time
to be spent on each section by each member of the team. This helped the writer to structure and
plan personal work as well as to track and monitor progress against deadlines.
50
8.2.5 Time management
Through clear understanding of objectives the writer managed to work in the time allocated to
her by her seniors. She managed to structure her work so as to fully utilize the time resource in
order to do her work within the required time budgets. Because of pressure during peak periods,
the writer managed to increase the speed of her work to meet deadlines as well as to be accurate
on evidence gathering.
8.2.6 Effective listening
During the writer’s period as an auditor she became a very good listener because she realized
that for one to be able to understand she has to listen first. Through the various audits she
attended she was able to work in different organizational set –ups understating client’s
explanations. The writer was also able to do audit execution as per requirement of discussions
with the audit seniors.
8.2.7 Conflict resolution
In the execution of audits conflicts would occur on treatment of a transactions or issue.
Sometimes conflicts occur with clients and one has to solve them well to avoid frustrating the
client since the client is BDO’s number one priority. This was resolved by looking at a common
goal and working together to reach a targeted goal.
8.2.8 Teamwork
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The nature of an audit work is that it is interrelated, thus the writer was able to initiate and
maintain good working relationships across functional groups. This helped to attain self
motivation in that she could work hard to finish her work and cover other sections in order to
achieve the budgeted time as a team.
8.3 Personal developments
The writer learnt to appreciate, understand and apply IFRS, IAS and ISA. She is now able to
work with less supervision on a given assignment for example she conducted some stock counts
and audits alone without the help of the seniors. At the same time she is able to work under
pressure as she would aim to meet the budgeted time on all audits. Some of BDO Zimbabwe
clients are listed on stock exchange hence the accounts have to be presented to the public before
a given date. This would result in extension of working hours for about 3 to 4 hours or even
more. The writer enjoyed working for such clients as the seniors would end up delegating some
seniors work to the juniors who are willing to learn because of the pressure from the clients.
The writer is now confident even in the absence of her seniors; she is now able to seek
information from the clients as well as explanations without intimidating clients. Before the
writer was attached, she had less knowledge as far as accounting software packages are
concerned, after being attached she got an opportunity to use various accounting software used in
different industries. Some of the examples are pastel, sage, SAP and Bellina
52
The writer was also exposed to auditing software such as Caseware. The writer also managed to
do computerized audits through the use of Caseware which is a software used to prepare lead
sheets by BDO Zimbabwe The writer had a boost in self confidence as there was a direct link
with companies’ ,finance directors, accountants throughout the audits. She also managed to
apply the theory that she leant at college into practice and at the same time understanding the
other technicalities involved. With the training she received and exposure she is now able to
abide by the rules of professional conduct as this is a requirement for the industry.
53
CHAPTER 9
PERSONAL EVALUATION OF THE INDUSTRIAL ATTACHMENT
9.1 Introduction
This chapter highlights the writer’s exposure to different audit client and the weaknesses that the
writer experienced and the strength acquired upon completion of attachment.
9.2 Difficulties of on the job training: It was a hard nut to crack in the beginning as the writer
was working with a deadline and the auditor in charge was working under pressure since it was a
peak period. However with the knowledge obtained at college, assistance from senior auditors,
well designed audit procedures: in house training sessions together with constant review by audit
supervisors, the writer was able to improve, become more confident and above all appreciate the
auditing profession.
9.3 Entertainment and social events: At BDO Zimbabwe the writer was able to travel and see
some resort area such as Kariba dam wall. Above all she had an opportunity to go underground at
Kariba power station as well as staying in some of the most luxurious hotels in Zimbabwe. The
writer also attended weddings of her colleagues as well as BDO Zimbabwe parties during her
attachment.
9.4 Training sessions: At the beginning of the writer’s attachment period, in-house training
sessions were done at least four times a month covering the various sections of the audit file. It
provided a platform for discussions on the changes in IFRS and ISA and proper adherence and
54
application thereof. It also enables one audit staff to share and find solutions on problematic areas
observed during different assignments. The in-house training sessions are an open discussion;
however the audit seniors, supervisors and managers contribute the most on the technicalities
involved.
Below are some of the topics that we covered during the training sessions:
 How to use IDEA and a brief description of how to create a CAW
 How to conduct stock counts and working papers that should be created
 How to audit bank and cash and how to prepare bank confirmations and lawyer’s letters
 How to audit debtors and preparation of debtor confirmation
 How to use BDO’s audit process tool
 Management report writing
 Audit of journals
 What Overstatement test is all about-Ledger to source documents
 What Understatement is all about-source document to ledger
 Lead schedule preparation using Caseware
 Sample selection using IDEA.
 How to provide exceptional client service
Through the training sessions, the writer was able to understand and appreciate the application of
theory into practice through discussion.
55
CHAPTER 10
RELEVANCE OF THEORY TO PRACTICE
10.1 Introduction
The industrial attachment proved useful to the writer as it contributed to her intellectual
development. It gave her platform to link theory learnt from college with the actual hands on
experience.
The writer would like to pass her appreciation to the University of Zimbabwe for coming up with
a degree programme that has developed a unique insight in commerce and industry. The
knowledge obtained from the university equipped the writer with skills that she managed to
apply during her work related learning period. Some of the areas applied are;
 The writer is now able to check whether organizations are complying with IFRS that
apply to them.
 With accounting information systems the writer is now able to prepare some working
papers with formulas on Microsoft Excel.
 The legal requirements of various organizations were covered under company law and
practices. The writer was also able to inspect rights and ownership of assets
 In communication skills she appreciated the report writing techniques which the writer
used when she was writing management reports as well as verbal and non verbal
communication which is appropriate when communicating with clients .
 From the writers auditing knowledge she is now able to vouch expenses, identify
weaknesses in a system as well as the process of planning and audit execution.
56
 Using the knowledge obtained from intermediate financial accounting the writer
managed to apply the following into practice in compliance with International
Accounting Standards (IAS) and International Financial reporting( IFRS) when she was
preparing financial statements for the client.
 IAS 1 presentation of financial statements
 IAS 2 inventories
 IAS 12 income taxes
 IAS18 Revenue
 IAS 19 Employee benefits
 IAS 36 Impairment of assets
 IAS 37 Contingency liabilities
 IAS 40 Investment property
57
CHAPTER 11
RECOMMENDATIONS
11.1 Introduction
This chapter highlights recommendations to the University of Zimbabwe and BDO Zimbabwe on
the way forward to enable on to reach self actualization in the field of accountancy.
11.2 BDO Zimbabwe
a) Laptop conditions
Most of the work at BDO Zimbabwe is done using laptops but most of the laptops have batteries
that do not last for more than 30 minutes. The firm should acquire batteries for the old laptops as
well as chargers because at some point 2 or even 3 people will be sharing one charger. This will
enable the staff to carry out their work faster and avoid data loss when there is load shedding
during audit.
b) Training before audit engagements
Although there are training sessions at BDO Zimbabwe they are usually held when the students
have started auditing already. It is vital for new employees in the audit department to have a brief
training before they engage with the client. The process of selection to begin an audit is highly
random and unstructured to the extent that juniors would not have basic knowledge of what they
are about to work on. The writer therefore recommends BDO Zimbabwe managers to begin with
a meeting that enables juniors to have an understanding of client operations as well as an
explanation of what audit is all about
58
c) Limited scope Audits for students
All students should carry out at least one small audit alone to ensure that they grasp all the basic
concepts and technicalities of auditing, or they should be given some of the difficult sections that
are audited by the most senior staff. This will give them greater exposure to all procedures of an
audit from the planning stage of the audit assignment through to the completion stage.
d) Office setup and security
Office set up and security should be improved to minimize the loss of important files and items
of staff. The lockers in the audit office no longer have keys so if one has files from the client
they may be stolen or one can access the information and use it for their personal purposes which
may result in conflicts with the client because of lack or loss of confidentiality. To improve on
security of immovable property the firm needs to introduce access cards for safe keeping of
confidential information and property.
e) Network setup
The firm is still using the traditional method of accessing internet using cables. However the
cables are very few and it’s very difficult for staff members especially students to access and
send their mails, most of which are for business purposes with the client. The printer is also
difficult to access as it is accessed using internet and therefore printing of important documents
such as client’s financial statements in time becomes a challenge. There is also another issue of
synchronizing with the auditor in charge which also need internet. The firm should consider
using wireless connector in the audit office to enhance efficiency of the staff.
59
11.3 University of Zimbabwe
a) Conduct more practical’s in computer related modules.
The world today is technologically advancing at a faster rate; almost all businesses are
now
computerized in the commercial industry. This means the academic knowledge in accounting
should strongly be backed up by computer literacy. Though the university has been excellent in
equipping the students on how to use excel as well as formulas more emphasis should also be
given on computer software. Students should be exposed to a variety of accounting software to
enable speed and accuracy in preparation of financial statements.
b) Communication between the University and the organizations
The communication between the University of Zimbabwe and the organizations should be
improved. This would help the organization to clarify issues on certain aspects for example
some managers do not have a clear idea of the reason why the evaluations reports are done
quarterly and their importance and when the student is facing challenges or problems that they
feel the University should intervene.
c) Assessment visits
In order for the industrial attachment to be run professionally, assessment visits should be at least
twice so as to closely monitor the performance of students on attachment. Lecturers visiting the
students should notify the students in time so that those who have out of town audits will be
available and disturbances of the client’s work may be minimized.
d) Taxation module
60
It is crucial that this course be introduced for part two students. Taxation is an unavoidable
business expense and hence accounting students should familiarize with this module early in
their studies. The writer had problems in calculating capital gains and deferred tax .She also had
a challenge when her auditor in charge gave her VAT section to audit. This should be one of the
major core courses
61
CHAPTER 12
CONCLUSION
Whilst the writer was at BDO Zimbabwe she was thrilled to be able to apply almost all theory
that she learnt at the University of Zimbabwe in courses like Information Systems, Financial
accounting (11), Management and Costing accounting, Auditing and communication skills.
She also learnt to be very responsible as she was supposed to represent BDO Zimbabwe and its
image wherever she was; she also understood that when addressing clients one has to be
respectful as she is the ambassador of the firm. Responsibility is the ability to do quality work in
the absence of the supervisor and the seniors and it’s a necessary tool to be applied by the juniors
in order to gain the trust of the seniors as well as the auditor in charge.
The writer is grateful to all the staff members at BDO Zimbabwe for their support and
willingness to assist her whenever she needed help. She also managed to share with students
from other universities as well as clients knowledge gained from the University of Zimbabwe for
example how to use excel, selection of appropriate accounting software, and appropriate
financial disclosures amongst others.
The writer’s appreciation also goes to the University of Zimbabwe for introducing the work
related learning programme that has enabled her to be equipped with skills and knowledge of the
real business world. Industrial work related learning brought a lot of exposure and experience in
the writer’s career and a clear understanding that networking, passion, hard work and patience
pays.
62
In a nutshell the work related learning was really a great achievement towards the establishment
of her career path that can achieve outstanding results. Now the writer is ready to accomplish her
dreams and the appreciation goes to BDO Zimbabwe as it was a great experience
63
Bibliography
1) A.F Millichamp,(2004),Auditing,7th Edition
2) BDO Zimbabwe manual
3) Companies Act chapter 24:03
4) IFAC (2010),International Accounting Standards
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AUDIT SUPERVISOR:
………………………………….
SIGNATURE:
…………………………………
DATE:
…………………………
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