AN INTERNSHIP REPORT ON KANDEL S.

& ASSOCIATES

By
Puja Bogati
Roll no: 19032387
P.U Registration No: 2018-2-03-2135

Submitted for the partial fulfillment of the degree of Bachelor

in business administration (BBA)

An Internship Report submitted to:

Boston International College
Pokhara University
Bharatpur, Chitwan

Feb, 2023
INTERNSHIP CERTIFICATE

ii
 ACKNOWLEDGEMENT

I'd want to express my sincere gratitude to Boston International College and Pokhara
University for providing me with the opportunity to use this internship program to test out
my skills. The difficulties, fun, and new accounting knowledge I gained from working on
this report were all really enjoyable. To Mr. Jagadish Timilsina, sir, I would like to convey
my heartfelt gratitude for his assistance in helping me complete this report.

A genuine thank to CA Sumit Kandel sir who have assisted me a lot by giving me his
valuable time and advice for the preparation of this report and also supervising me
throughout my internship period. I would like to record my sincere appreciation and
gratitude towards Mrs. Sushmita Thapa, senior accountant of firm, Mr. Pradip Thapa and
Miss Swekshya Acharya junior internal audit manager of the firm , without whose kind
assistance, my internship program would not have succeeded. The facts and other vital
information provided by them have contributed towards making this project as
comprehensive as possible.

Last but not the least, I would like to express my sincere thanks to all my family members,
friends and well-wishers for their immense support and best wishes throughout the
internship duration and the preparation of this report. I believe that this report will be a
valuable asset not only for academic institution, but will also be useful for all those who
are interested to learn about internship experiences in auditing.

iii
 Executive summary

The report has been written with the intention of providing its reader a clear idea of how
an audit firm deals with the concept of audit procedure. Kandel Associates is one of the
emerging Chartered Accountant firms in Nepal which provides various services like
statutory audit, consultancy, taxation services and many more.

Within the period of internship program, I was assigned as a junior trainee auditor and
assisted auditing of governmental and private enterprises. I have worked in this report
followed by the knowledge that I have gained from working, trainings and my personal
experiences.

The first part of the report consists an introduction, background and description of the
report. The second part of the report contains of Internship program of Kandel & Associates
and in the third I discussed on critical analysis. Last but not the least I tried to focus on
some of the findings that I have found during these period of internship and tried to
recommend some solutions which will minimize the problems that I have mentioned in my
findings. Later, I have tried to draw an overall conclusion of the report.

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 TABLE OF CONTENTS

Contents Page

INTERNSHIP CERTIFICATE………………………………………………………..iii
ACKNOWLEDGEMENT…………………………………………………………….iii
EXECUTIVE SUMMARY……………………………………………………………iv
TABLE OF CONTENTS ……………………………………………………………. v-vi
LIST OF TABLES…………………………………………………………………………...vii

Chapter One
1.1 Introduction……………………………………………………………………….1
1.2 Objective Of Studying The Organization ...............................................................2
1.3 Overview of the Organization ............................................................................... 2-7
1.3.1History of Organizations ..............................................................................4
1.3.2 Nature of the Organization ..........................................................................4
1.3.3Business Volume ..........................................................................................5
1.3.4 Number of Employees .................................................................................5
1.3.5 Product lines………………………………………………………………..…...6
1.3.6 Competitor……..………………….……………………………..………...7
1.4 Organizational structure…………………………..……………………………… 8

1.4.1 Main offices .................................................................................................8

1.4.2 Organizational chart (hierarchy wise) ..........................................................9
1.4.3 Comments on Organizational structure……………………………………….9
1.5 Structure of Your Department………………….………………………………..…9

1.5.1 Department of Hierarchy………………………...…………………………9

1.5.2 Number of employees in your department……………………………..….10

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 CHAPTER Two

2.1 Introduction of the Office .............................................................................10

2.2 Department in which I worked during my internship, supervisor’s name and
job title: .............................................................................................................. 10
2.3 Description of Task ...................................................................................... 11
CHAPTER Three
3. Critical Analysis ............................................................................................. 12
3.1 Critical analysis of the theoretical concepts relating to practical experiences
during internship ................................................................................................ 11
3.2 Reasons of success and failure…………………………………..………….12

3.3 Major Competitors of the Organization………………………………….…12

3.4 Future prospectus of the Organization .......................................................... 13

3.5 SWOT Analysis ............................................................................................ 14
CHAPTER Four
4.1 Conclusion .....................................................................................................15
4.2 Recommendation………................................................................................16
REFERENCES ............................................................................................. 17

vi
 LIST OF TABLES
Title Page

1.1 Firm profile 3

1.2Major industries' receiving services 5

vii
 CHAPTER- One

1.1 Introduction
An internship is a structured work experience related to a student’s major or career goal.
Student of Bachelor have been assigned to perform 45 days internship on a particular
institution and to make an internship report accordingly. The trend of internship has been
continued since the establishment of Pokhara University in the year 1997. Internship is
supervised by a professional in the field. It is an experience that enhances a student’s
academic, career, and personal development. An internship offers you the chance to learn
by doing in a setting where you are supervised by a work-place professional and have the
opportunity to achieve your own learning goals. As per the requirement of BBA program
of Pokhara University, the internship program must conduct by all students. I've always
been curious about how accounting is done in business organizations and what part it plays
in the expansion and improvement of commercial activity. That drove me insane, so I made
the decision to deal with my vision and go closer to my objective. For the purpose of
expanding my knowledge and gaining experience in the field of accounting, I had selected
Kandel S. & Associates. Since I am a student of the Management department, I joined
Kandel S. & Associates to gain exposure to and experience in the actual world of
accounting. This study gave me an opportunity to know and observe the procedures of
auditing. As a Kandel S. & Associates audit student, I was tasked with performing
numerous different companies' audits using services my firm provides. The report will
summarize my in-depth practical knowledge of auditing procedures.

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1.2 Objectives of studying the organization

Lack of experience is a common element in searches for entry-level jobs. If no one will
hire me, how can I gain experience? Get an internship is the straightforward solution. For
young individuals who wish to increase their chances of finding a job and kick-starting
their careers, internships provide a range of advantages. You may develop your portfolio,
get a taste of the working world, and network with people who can advance your career
through internships. This internship has given me the understanding of business and also
about the elements of strategic thinking, planning and implementation, and how these
things are applied in a real-world organization environment. Following are the objectives
that I have in my mind before working as an internee.

1. To gain practical knowledge and exposure to the real business world and develop
conceptual as well as technical skills.
2. To understand how accounting is carried out by business organizations and the part it plays
in the expansion and improvement of commercial activity.
3. To learn book keeping practices of different companies.
4. To adjust with the organization’s atmosphere.
5. To build confidence in order to act successfully in real world.

1.3 Overview of the organization

Kandel S. & Associates is a professional service company with substantial resources and
experience in Financial, Taxation and Accounting Services. It has its office at Parsa,
Chitwan. The firm is providing its financial service among its customer for two years. It
offers a wide range of services that includes Statutory audit, tax audit, performance audit,
due-diligence audit, management audit, accounting outsourcing, certification, internal
audit, assurance, book-keeping services, secretarial services, corporate finance and IT
services. It also provides professional services to organizations across a variety of industry
groups - financial institutions, power and energy, infrastructure, manufacturing and
trading, communication, government, non-profit and philanthropic organizations and
many more.

2
Table 1: Firm Profile
Name Kandel S. & Associates
Address Khairahani- 08, Parsa
Incorporation date Sun, 20-Mrach-2022
Company number 1065
Phone number 9855061332
Email [email protected]

Mission

To provide complete, reliable and high-quality auditing and consulting services to

individuals and institutions.

Vision

The company's vision is to be the best in the business in terms of auditing, accounting, tax
preparation, and business consultancy.

Values

The values of the organization are as follows:

i. Valuing People: Respecting people in all that we do will help us establish and sustain
long-lasting, mutually beneficial relationships with our customers, business
partners, referral sources, vendors, neighbors, and each other.
ii. Building Client Relationships: We strive to earn long-term client loyalty by gaining
a thorough understanding of each client's company and personal objectives. iii.
Upholding Quality and Integrity: We will continue to foster a culture in which
everyone working for our firm makes decisions and acts in accordance with a
commitment to professionalism, quality, honesty, respect, and fairness.

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 1.3.1 Brief history

Kandel S. & Associates is a service company located in Khairahani-08, Chitwan. Kandel

S. & Associates Pvt. Ltd. was established in 2022 AD by its founding director – CA
Sumit Kandel, Mr. Sumit Kandel, the proprietor is member of ICAI & ICAN and have
worked in several other reputed organization situated in & outside Nepal. Mr. Kandel
also hold certificate of B.com & has participated in NFRS training conducted by ICAN.
He has obtained certification of Forensic Accounting and Fraud Determination from West
Virginia University.

Further, He has also completed Audit Virtual Experience from Grant Thornton LLP. His
expertise comprises of taxations & other statutory provisions. He has high experience on
all the sectors. He has worked as an Audit leader in statutory audits of multinational
companies & corporates. He has in depth knowledge of international taxations, Double
taxation Avoidance Agreement (DTAA), Transfer pricing.

He has participated as an Audit leader in various statutory audits of Commercial Banks,

Government Audits, Microfinance, Financial Institutions, Cooperatives, Laghubitta
Sanstha etc. He has developed a framework for reviewing the Internal Financial Control
(IFC) for companies. He has worked with various foreign companies as a Statutory Audit
leader.
The firm provides various services such as: Auditing, Accounting and Bookkeeping,
Corporate law to a wide range of customers. This firm gives its services to corporate
houses, small business.

1.3.2 Nature of organization

Kandel S. & Associates is the service company that provides various counseling and audit
related services to its customers. The firms tailored to meet the customer’s needs which
include basic day-to-day bookkeeping, tax services, auditing, management consulting,
corporate finance, IT services, fraud investigations and in most cases, it also serve as an
outsourced service to provide financial oversight for small business.
4
1.3.3 Business volume

Table 1.2 Major Industry's receiving services:

Manufacturing and Trading
•Engineering
•pipe
•Fabricated products Pharmaceuticals
•Jute goods/garments/textiles, etc.

Financial
•Banking, Finance
•Investment
•Insurance
•Capital Market
•Security Service
•Companies
Commercial services
•Courier and cargo services
•Hospitals
•Hotel

1.3.4 Number of employees

Kandel S. & Associates have the staff strength of 20 staff and many other professionals
with varied background working as consultants on need basis.

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 1.3.5 Product line

The major products and services provided by the firm are auditing, due diligence, account
outsourcing, project management and consulting services which are as follows:

Audit

Auditing is a systematic process of objectively obtaining and evaluating evidence

regarding assertions about economic actions and events to ascertain the degree of
correspondence between those assertions and established criteria and communicating the
results to interested users. The various types of auditing services provided by the
organization are Statutory Audit, Due Diligence Audit, Internal Audit, External Audit,
Financial Audit, Forensic Audit etc. The most common types of audits are briefly explained
below:

• Financial Audits: In a financial audit, the assertions about which the auditor seeks
objective evidence relate to the reliability and integrity of financial and, occasionally,
operating information. This type of audit usually covers the basic set 9 of financial
statements (Balance Sheet, Income Statement, Statement of Cash Flows, Statement of
Changes in Equity and notes to the financial statements)
• Statutory Audit: A legally required review of the accuracy of a company's or
governments’ financial records is what termed as Statutory Audit. The purpose of a
statutory audit is same as the purpose of any other audit - to determine whether an
organization is providing a fair and accurate representation of its financial position by
examining information such as bank balances, bookkeeping records and financial
transactions.
• Due Diligence Audit: Due Diligence is an extensive look at a company in order to make
the best-informed business decision about a company. Due Diligence Audit is that audit
which is carried out in order to find/estimate the actual financial position of the
organization before a large decision is about to take place like mergers and acquisitions,
loan agreement, or when the company's financials are going to be presented to the public.
Due diligence audit includes thorough investigations of the books and records that can
range from asset appraisals to day-to-day transactions. A thorough understanding of

6
 internal controls and its effectiveness also become necessary to ensure the risk for the
business is as low as possible.
• Internal Audit: Internal audit is an independent, objective assurance and consulting
activity designed to add value and improve an organization's governance, risk management
and management controls over: efficiency/effectiveness of operations (including
safeguarding of assets), the reliability of financial and management reporting, and
compliance with laws and regulations.

Account Outsourcing

Outsourcing is gaining popularity as a way to reduce financial and operational risks by

making them easier to manage. Keeping this in mind, the firm provides accounting services
to various organizations. Business organizations can alleviate the burden of 10 staying on
top of frequent changes to tax codes and accounting regulations and provide increased
levels of information transparency, visibility of controls and clarity of accountability by
outsourcing of accounting system.

Company Establishment

The firm also extends its services towards establishment of organizations and corporation.
The firm helps in registration in company registrar office as per the company act 2063,
acquiring of certificate of commencement of business, etc.

Tax Management

The firm also helps in tax management for organizations. Organizations can acquire

services like calculation of income tax, management of Value Added Tax (VAT), Tax

Deducted at Source, timely filing and payment of tax to Inland Revenue Department, etc.

1.3.6 Competitors

When it comes to Kandel S. & Associates' competitors, they are other tax or accounting
firms that operate in the same area and offer the same or similar services as Kandel S. &
Associates. There are several competitors of Kandel S. & Associates in Chitwan, some of
whom are listed here.:

7
 i. Vedik Financial Advisor, Bharatour-11
ii. NR Associates, Bharatpur 11
iii. Veshraj koirala, Bharatpur-11 etc.
iv. Sushil & Associates, Chartered Accountant

1.4 Organizational Structure:

1.4.1 Main Office

The office of Kandel S. & Associates is located at Khairahani-08, Chitwan.

1.4.2 Organizational Chart

Kandel S. &
Associates

Administration
Audit department
department

JuniorAssociates

Audit Trainee

8
1.4.3 Comments on the organizational structure.

The firm’s organizational structure is more of a functional organization structure. The

Director, Proprietor himself is in the top most level.

Normally, information and orders flow from top to bottom in a hierarchical order. CA
Sumit Kandel is the Director of the firm. The Administration Department and Audit
Department are the two departments that are immediately beneath the Director. The
Administration department is viewed by the General department. The junior associates and
audit trainee are taken care of by the Audit department.

The size and duration of team depends upon the nature of service offered and the
requirement of the clients. The orders, command and decisions flows from top to bottom
while the reporting is done through bottom to top.

1.5 Structure of your Department

From the director, information is passed to the general department and other staff. Due to
the small size of the workplace, there are no further departments. Each and every employee
is required to do the task assigned by the director.

1.5.1 Department Hierarchy

DIRECTOR

Employee Employee
Employee Employee

Employee

9
1.5.2. Number of employees in your Department
There are altogether 20 working employees in the office, however only six of them perform
daily official works under the close guidance of the Director in the office.

CHAPTER TWO

2. Internship Program:

2.1 Introduction of the office where I worked

I choose to work at the Kandel S. & Associates’ head office which lies in Parsa chowk,
Khairahani-08, Chitwan. Currently, there are six employees in the office. The office's
ambiance was excellent, and the staff members were equally kind. In assisting me through
my internship program, the CAs and staff were of the utmost assistance. Until and unless
an intern is able to complete their task flawlessly without the management, they are
repeatedly shown the exact same material. The working environment was pleasant. The
relationships and communication between the various levels of personnel were positive
and productive. As a result, it is a crucial platform for our future careers. Working as an
intern in this office has largely given me the chance to learn about the practical implications
in our career building.

2.2 Department in which I worked during my internship, supervisor’s name and job

title:

As I was new to work in the audit office, firstly I was trained by Internal Audit Manager
Mr. Pradip Thapa. He gave me general idea about purchase and sales record according to
the provided bills. He also trained me about TDS returns and the basic function of the
excel. After the training period of one week, I was sent to Khanepaani Office along with
Senior

10
Audit Manager Mr. Apurva Upadhyaya and Internal Audit Manager Mr. Pradip Thapa
which lies in Bishal Chowk, Bharatpur. At Khanepaani Office I got chance to be familiar
with the bills and government recordings. I have tried my best to enhance my abilities and
apply the knowledge that I gained during the studies. My supervisor Mr. Pradip Thapa
often shared his practical experience with me and gave me some techniques of this process
for motivating me. He also guided me to prepare VAT return, maintenance of account,
manual entry of purchase and sales bill of the goods and so many basic knowledge
regarding the accounting.
At the end my internship, I was placed under the direction of Mr. Abhishek, the internal
audit manager, at a private company called Deepshikha Traders. The company's financial
records were carefully examined by us.

2.3 Tasks/project in internship program

Different task that I performed during my internship:

1. Keeping record of sales and purchase according to the provided bills.

2. Field visit in different business houses to maintain sales and purchase ledger.
3. VAT Returns
4. TDS Return Preparation

CHAPTER THREE

3. Critical Analysis

3.1 Critical analysis of the theoretical concepts relating to practical experiences

during internship.

The report is created as component of 7th semester, BBA, Pokhara University. The
internship program proven to be a beneficial way to learn and experience real workplace
situations firsthand. It turned out to be a valuable platform where we could put the
knowledge, we had learned in class to use in the real world. Through the internship
program, I had the chance to explore the workplace and realize my full potential. The

11
program taught me the value of team work in the workplace. I had a great opportunity to
learn a lot about accounting and auditing during the previous twelve weeks at Kandel S.&
Associates. The major skills and attitudes that I was able to learn during internship period
are as follows:
i. Pressure Handling:
The internship program made me explore my potential and ability to work and study
parallel. Previously, I used to believe being a full time student, it’s a lot of pressure to
balance the study and workload. The internship program made me realize that you are
capable enough to tackle the hurdles and carry your study and work simultaneously. ii.
Team Work
During my internship, it showed me how teams perform and how one team
member's behavior may affect the work and performance of the other team
members. I understood the relevance of what we studied. Synergy advantages were
produced by effective teamwork.
iii. Experience of real-world accounting and auditing practices:
Parrot learning is more prevalent in our educational system. Even in practical
subjects like accounting, we maintain the conventional traditional theoretical
system of learning rather than using real-world examples. Identical real-world
issues were taught to us. I had the chance to learn about accounting and auditing
procedures used in the actual world.
iv. Became aware about general taxation system in the country:
Another important thing I learnt during my internship was about the general
taxation system. I got familiar with various kinds of taxes like Income tax for
individuals and corporate organizations, Value Added Tax (VAT), Tax Deducted
at Source (TDS) that are prevalent in the country. In addition, I became aware about
the installment method of payment of taxes and filing of advance tax and tax returns
for the same.

3.2 Reasons of Success and Failure

The cut-throat competition of the market makes the existing firms more competitive
and creates challenges. To stand out in the market and to please customers is not an

12
 easy task for the firm. Flexible and dynamic strategies to cope up with the changing
times need to be considered. Following are the strategies and reasons for the success
of the organization:
a. Image Building
b. Diverse service
c. Marketing\ Advertising
d. Proper and regular training
e. Well- Devised decision-making system
For the failure, following could be the reasons:
a. Operational Risks
b. Legal compliance
c. Human Error
d. Financial Hurdles

3.3 Major Competitors of the organization

When it comes to Kandel S. & Associates' competitors, they are other tax or accounting
firms that operate in the same area and offer the same or similar services as Kandel S. &
Associates. There are several competitors of Kandel S. & Associates in Chitwan, some of
whom are listed here.:

i. Vedik Financial Advisor, Bharatour-11

ii. Bishnu Regmi, Bharatpur- 10
iii. NR Associates, Bharatpur 11
iv. Veshraj Koirala, Bharatpur-11 etc.
v. Sushil & Associates, Chartered Accountant

3.4 Future Prospects of organization

• It can provide quality service to customer in large number throughout the Nepal by
extending its branches.
• It can introduce a more tech-friendly working environment and minimize human
error.

13
 • It can train a greater number of students about the general concept of performing
auditing and make them capable enough for their career in the field of account.

3.5 SWOT analysis

The SWOT analysis highlights an organization's strengths and weaknesses as well as the
opportunities and threats coming from the outside world. It focuses attention on both areas
where things are going well but could be improved and areas where things are not going
well and how to turn them around. The major findings from the SWOT analysis of Kandel
S. & Associates are listed below:

Strengths

i. Skilled, experienced employees with specialized qualifications such

as Certified Public Accountants, or CPAs.
ii. A great reputation of trust, integrity and competence. iii.
Provides Flexible working hours to its employees. iv.
Good networking skills of the Director.
v. Its only one Audit firm in the Locality. vi. The firm is
generally available to the clients on short notice.

Weaknesses

i. Lack punctuality
ii. It’s a newbie in the market
iii. Weak IT Department iv. Poor marketing
v. Lack strategic planning
vi. Miscommunication among its employees

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Opportunities

i. To be able to not only grow with our clients but in many cases to lead clients’ growth.
ii. The need for advisory services is expanding very rapidly
iii. The accountant usually finds out early on about personal or professional services
that a client needs, enabling firm to enter that space.
iv. The colleges provide a steady stream of entry-level personnel and, as firm add
services, it can draw the people it need from the colleges (a threat could be a
declining number of students enrolled in accounting programs).

Threats

i. Economic condition of a country

ii. Changing laws and regulations
iii. Threat of substitution
iv. Threat to lose reputation
v. Information delays and leakages
vi. Political Instability
vii. Rapid Growth of technology

CHAPTER FOUR

4.1 Conclusion

To conclude, Kandel S. & Associates is a professional service company with substantial

resources and experience in Financial, Taxation and Accounting Services. It has been
offering its consumers high-quality services for nearly a year. Additionally, Kandel S. &
Associates is constantly available to welcome new employees, train them, and place a job
for them. For me, working with Kandel S. & Associates was a wonderful experience. There
was a very friendly atmosphere at work, and the personnel was always willing to provide

15
a hand. The company is expanding rapidly thanks to its skilled and experienced employees,
teamwork, and the customers' trust in their service.

However, there are few things that the firm need to overcome to establish itself in the
competitive environment. It lacks the strategic planning to perform the tasks, as there occur
timely pressure within the staff due to the in availability of necessary data in time. It seems
that the employees of the firm need regular training and workshops for the proper
functioning. The firm really need to consider this matter in order to achieve further success
in the field of auditing. Another thing I noticed is that the staff are not satisfied with the
salary that they are provided with. However, employee turnover ratio is comparatively low
because of flexible working hours and a comfortable working environment. Since the firm
is new in the market, it should grab all the opportunities .And it needs to work hard in this
matter in order to achieve further success in the field of auditing.

4.2Recommendations

With reference to the conclusion and the SWOT analysis drawn out above following
recommendations can be sorted out:

i. Firm lacks in marketing perspective as it does not have any marketer to market and
introduce their business, firm is getting business only on personal relations of the
partners and other firm personnel. So if firm thinks to improve its business volume
it needs a professional marketer as many other big firms adopted and have complete
marketing department.

ii. It can show the better career opportunities to the employees and provide fair
remuneration as per their ability to retain the talented employees.

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Eyden. T.(2012, Octuber 22). Who Are Your Real Competitors? Accountingweb.
https://www.accountingweb.com/aa/auditing/who-are-your-real-competitors

Bhattarai. A.(2021,May 9). Tax Deducted at Source (TDS) rates in Nepal for 2077/2078
(UPDATED). Bizsewa. https://bizsewa.com/tax-deducted-source-tds-rates-nepal/
Kishnan. A.(2021, November 21). Bookkeeping – Definition, Importance, Types &
Methods. Books. https://www.zoho.com/books/guides/the-basics-of-bookkeeping.html

Mendlowitz. E.(2021, December 20). Voices Art of Accounting: Accounting firm SWOT
analysis. Accounting today. https://www.accountingtoday.com/opinion/art-ofaccounting-
accounting-firm-swot-analysis

Websites: https://npl.databasesets.com/company-all/company/140130

https://vedikadvisors.com.np/ https://medium.com/@tally_97442/what-is-the-

tally-why-it-is-used-fbc2885e0e70

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