CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF SIWES

The Student Industrial Work Experience Scheme (SIWES) is an essential

component of the curriculum of the Department of Accounting, Faculty of Social

Sciences and Entrepreneurial Studies, Lead City University. It is a partial

requirement for the award of a degree (Bsc) in Accounting. The compulsory

participation in the scheme is effected in the second semester of the 300 level

and during the long vacation.

The industrial attachment is usually for a period of 24 weeks, during which the

students are expected to acquire practical experience to supplement their course

of study in the university. They are also exposed to the real world of work and its

challenges which will prepare them towards their future careers.

It is said to be a supervised program since lecturers from the department are

expected to visit the students at their different places of industrial attachment to

assess the success of the program and the degree of seriousness students

attach to it.

This report is the outcome of the 24 weeks’ practical industrial training I had at

John Edo Aiterebhe & CO Chartered Accountants.

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1.2 OBJECTIVES OF SIWES

Some of the important objectives of the Student Industrial Work Experience

Scheme (SIWES) are as follows:

i. To assess the interest of the student in the occupation he/she plans to

undertake.

ii. To expose the student to work methods not taught in the university and to

provide access to products, equipment, etc not normally available in the

university’s environment.

iii. To provide the students with an opportunity to apply knowledge in real

work situation thereby closing the gap between university work and the

actual practice.

iv. To make the transition from school to the world of work smoothly and to

enhance student contacts for job placement.

v. To enlist and strengthen employer’s involvement in institutional activities

and in the entire educational process of preparing the students for

employment in industry.

vi. To enhance industry’s satisfaction with the graduate of the department and

the university at large.

vii. To enhance interaction and co-operation between the university and the

industries, hence brightening the employment chances of the students

after graduation from the university.

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1. 3 BENEFITS, EXPERIENCE AND MORAL EDUCATION

i. Through my Industrial attachment/training, I have gained some new

experiences in auditing; preparation of schedules, internal control testing,

vouching of source documents which were mostly done electronically.

ii. I also gathered experience in the area of taxation; pay as you earn (PAYE)

tax computations, capital allowance computations, tax reconciliations,

objections and appeals, which had enabled me to have a good grasp of

the field which I would like to specialize in the accounting profession.

iii. Through this attachment, I have generated a good interpersonal

relationship through my interaction with my supervisors and colleagues.

This has assisted me to interact confidently with people irrespective of their

positions.

iv. I participated in some audit assignments which had improved my social life

through interactions with clients and others outside the audit firm.

v. Working in the audit firm has exposed me to a lot of ethical and moral

issues which are inherent in the accounting profession. It has inculcated in

me the need for integrity, accountability and the need to abide by the

various professional standards which are required of professional

accountants.

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 CHAPTER TWO

JOHN EDO AITEREBHE & CO CHARTERED ACCOUNTANTS

2.1 ORGANIZATIONAL BACKGROUND OF THE FIRM

John Edo Aiterebhe & Co was registered in 1990 after obtaining a practicing

licence in the same year from the Institute of Chartered Accountants of Nigeria

(ICAN).

The firm specializes in auditing, accounting, taxation, business recovery and

insolvency practice, business advisory services and consultancy services. The

firm provides a wide range of professional services to companies, non-profit

organizations and individuals.

The partners and the management team are qualified professionals/members of

professional accounting bodies in Nigeria and overseas. Besides being a Fellow

of the Institute of Chartered Accountants of Nigeria, the Managing Partner is a

Fellow of Business Recovery and Insolvency Practice Association of Nigeria

(BRIPAN) and International Federation of Insolvency Professionals (INSOL)

based in Britain. The firm also has other staff currently comprising Chartered

Accountants and graduates at different levels of the Institute’s Professional

Examinations. In addition, the firm has a group of specialized consultants to

perform specific consulting engagements on a job basis.

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The firm’s clientele which cuts across all sectors of the economy for which the

firm offers wide and varied services include but are not limited to:

Anchoff Strongholds Limited;

Choffan Communications Limited;

Chrome Air Services Limited;

D.D. investments Limited;

Dextron Engineering Limited;

Chrome Consortium;

Guinea Insurance Plc;

21st Century Technologies Limited;

IGIT Telecommunications Limited;

Inland Containers Nigeria Limited;

Lagos State Internal Revenue Service;

Mebco Nigeria Limited;

Nimek Investments Limited;

T Comms Limited;

Triple Logic Telecommunications Limited;

Triton International Co. Limited;

United Parcel Services;

Silion Concepts Limited among others.

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2.2 VISION, MISSION AND CORE VALUES OF THE AUDIT FIRM

2.2.1 Vision of the Audit Firm

To be the leading professional firm offering excellent services to our clients in the

areas of audit, accountancy, tax, insolvency practice and consultancy.

2.2.2 Mission of the Audit Firm

i. To deliver excellent services to our clients through a pool of professionals

who brings unmatched depth of expertise.

ii. To uphold the tenets of diligence, honesty, integrity, courage and

commitment, being the hallmark of the Accounting Profession.

iii. Add value to our human resources through continuous human capital

development.

iv. To turn knowledge into values, beneficial to our clients, individuals and the

society.

2.2.3 Core Values of the Audit Firm

i. Quality

ii. Hard work

iii. Discipline

iv. Teamwork

v. Integrity

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2.3 ORGANIZATIONAL STRUCTURE OF THE AUDIT FIRM

The audit firm, John Edo Aiterebhe & Co Chartered Accountants, has thirty

employees divided into executive and non-executive staff. The affairs of the firm

are spearheaded by the managing partner with assistance from the partners,

who all constitute the management team. The management committee members

have ultimate responsibility for directing the activity of the firm, ensuring that it is

well run and delivering the outcomes for which it has been set up. The

management committee provides leadership to the firm by:

i. Setting the strategic direction to guide and direct the activities of the firm;

ii. Ensuring the effective management of the firm and its activities; and

iii. Monitoring the activities of the firm to ensure they are in consonance with

the founding principles, objects and values.

The managing partner is the highest formal job title given to the senior partner in

charge of the firm's overall practice, management and day-to-day operations.

The managing partner is roughly equivalent to the chief executive officer of a

company in terms of duties and responsibilities. The managing partner has the

responsibility and authority to oversee the firm. The three partners in the firm

report to the managing partner.

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The role of the partners is to represent the organization and provide leadership to

maximize income in their market segment. Partners are required to maintain

leadership roles in the firm and to network for clients. The partners and senior

audit managers are responsible for professional development of the staff in the

firm. They are also involved in the review of the audit carried out by the various

audit teams in the firm. Below the partners are the senior audit managers.

The audit managers are field managers whose responsibilities include leading

the daily onsite audit activities, interacting with the client staff, making expert

observations and managing staff allocated to each audit assignment. They are

usually in charge of the teams assigned for field audit and they report to the

partners.

There are other members of staff who are employed based on their educational

background and ambition and may be fresh graduates. They are divided into

audit, taxation, administration and information technology (IT).

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 CHAPTER THREE

METHODOLOGY

3.1 METHODS ADOPTED IN ACQUIRING PRACTICAL INDUSTRIAL

EXPERIENCE

In order to acquire practical industrial experience during the period of my

attachment in the audit firm, I adopted the following methods:

i. Interviews and Discussions

Through interviews and discussions with the staff of the audit firm,

important information about the firm’s activities, services, historical

background and the organizational structure were obtained.

ii. Observation

This method was used to study some of the activities that went on in the

audit firm such as relationship between workers and clients, workers’

attitudes towards work (e.g. time of arrival and departure) and the

monitoring of staff.

iii. Inspection of Records

I studied files, audit manuals, past audit reports and financial statements to

get acquainted with how auditing was being carried in the audit firm.

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iv. Participation

This method was used to acquire knowledge on the use of various office

equipment (e.g. computer, printer, photocopier, etc), data entry and

analysis, filing of claims (transport and feeding), filing of documents,

arrangement of office, etc.

It was also used in terms of going on field audits to some of our clients,

vouching of their source documents, fixed assets verification, analysis of

their bank statements, bank reconciliations, etc.

I was also involved in some tax computations (PAYE, withholding tax), tax

reconciliations, objections and appeals.

3.2 CHALLENGES

I encountered the following challenges during the period of my industrial

attachment:

i. I submitted applications to several audit firms in Lagos coupled with

personal visits before one audit firm, John Edo Aiterebhe & Co, could offer

me a place for the six months’ industrial attachment.

ii. It was difficult for me to get acquainted with the firm and its environment

within a very short time since the firm did not organize any formal

orientation/induction course for me.

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iii. Busy schedules of staff (who were often on field audits at clients’

premises) made it difficult for them to pay enough attention to industrial

attachment student.

iv. Inadequate number of computers in the audit firm, hence, I had to use my

personal laptop to carry out official assignment.

v. The monthly allowance paid to me by the audit firm was not enough to

cover transport expenses, lunch and incidentals.

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 CHAPTER FOUR

MONTH BY MONTH OVERVIEW OF TASKS

AND RESPONSIBILITIES

4.1 FIRST MONTH

In the first week, my duty was to get acquainted with the files and documents of

the firm’s several clients. There was no formal structure for induction/orientation

and the members of staff advised me that the best way to learn and train myself

was to read files, documents, records, reports, etc in the firmn and ask questions

to know how things were being done there. At the end of the week, I was

informed that I would be participating in an audit assignment the following week,

the details of which were communicated to me.

In the second week, I was a member of the audit team that started the field audit

of Global Scansystems Limited (GSL) in Victoria Island, Lagos. Prior to the

commencement of the audit, we received appropriate briefing and instructions

from the managing partner of the audit firm. On arrival at the company’s

premises, we had a pre-audit meeting with the management of the company at

the company’s boardroom to intimate them of our audit assignment and to solicit

for their co-operation. After the pre-audit meeting, the team leader, a senior

manager in the audit firm, assigned tasks to us based on the audit program.

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In the third week, I was engaged in the examination of samples of documents,

records, etc in respect of sales made by the company in order to detect if there

were irregularities or discrepancies in the accounts. I observed some anomalies

and reported to my immediate supervisor for queries to be raised on the

organization. My supervisor put me through on audit testing and making of

schedules. Thereafter, I carried out audit testing on expenses and I made my

observations and recommendations.

In the fourth week, I continued with the audit testing on the expenses in the

accounts, some of which included salary, training expenses, newspapers,

magazines, stationery, sanitation, cleaning and so forth.

4.2 SECOND MONTH

The second month was spent reclassifying office expenses of Global

Scansystems Limited (GSL) since some of them were not properly classified for

tax purposes. They had to be removed from the affected accounts and posted to

their appropriate account heads.

We also interviewed the relevant members of staff of the company in order to

obtain further information and explanations we considered necessary for the

purpose of our audit.

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4.3 THIRD MONTH

We completed the field audit at Global Scansystems Limited after two months

and we returned back to the office to carry out some desk audit. We started by

creating arch files for the company and demarcating them based on the various

account heads. After that, the files and working papers used during the course of

the audit were allocated to their various account heads in the folders.

Furthermore, the journals which were used to correct all the mispostings and all

other errors in the accounts were compiled and printed, to be included in the

folders which were used. I also prepared lead schedules for the various account

heads.

4.4 FOURTH MONTH

I participated in a second field audit to another company, King & George Nigerian

Limited at Maryland, Lagos. We went through the normal routine, and we started

with a pre-audit meeting to intimate the management staff of the company about

our mission and to solicit for their co-operation during the conduct of the audit.

Due to poor record keeping by the company, we were engaged to not only audit

the company but to prepare their accounts as well. We first started with the

analysis of their incomplete records and accounts. I was mostly involved with

their expenses such as electricity & power, passages & travelling, household

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expenses, telephone & postages, newspapers & periodicals, business promotion,

printing materials, carriage outwards and so forth.

I also conducted cash count of the company’s cash with the account manager. I

also submitted bank confirmation letters as well as their acknowledgement for

our files.

After the analysis of the accounts, I carried out audit test on those expenses

whose accounts I had analyzed.

Due to their poor record keeping, there were a lot of missing vouchers and

unclassifiable expenses. I created schedules for them and then made the

accountant to acknowledge them to form part of our management letter.

4.5 FIFTH MONTH

We returned back to our office after our one month’s field audit at King & George

Nigerian Limited. I sorted out the files, demarcated the arch files into their various

account heads and filed our working papers according to those heads as well as

created schedules and references for them. I also wrote and compiled the

journals raised during the audit at King & George Nigerian Limited. I was also

involved in the compilation of management letters for the audit based on the work

I did.

Due to the completion of my own duties at King & George Nigerian Limited, I

assisted the other audit team members who had just returned back to the office
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from a field audit at Dextron Engineering Limited in the execution of the jobs

allocated to them. I helped them in confirming their source documents with the

accounts, checking the authenticity of amount transferred between head office

and sites and so on …

4.6 SIXTH MONTH

Since the audit firm is also tax consultant to many companies, I also participated

in handling tax matters of two companies during the sixth month of my industrial

attachment. I was extremely involved in tax computations mostly on pay as you

earn (PAYE) for Global Scansystems Ltd. I also carried out the PAYE tax

computations for Damagix Nigerian Limited as well as made tax reconciliations

since it was claimed that our client was over-taxed. Objection and appeal

procedures were already in progress as at the time I completed my industrial

attachment.

I also assisted the administration staff in the sorting of files of the audit firm,

reorganizing them in alphabetical order, typing and printing out a lead schedule

showing all the files of the organization in alphabetical order for easy

identification.

I also helped the receptionist who was not available for some days in the office to

receive guests, interact with clients and portray the good name and reputation of

the audit firm.

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 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 SUMMARY

I carried out my sixth months’ industrial attachment in Lagos in an audit firm,

John Edo Aiterebhe & Co. Chartered Accountants. The firm specializes in

auditing, accounting, taxation, business recovery and Insolvency practice,

business advisory services and consultancy services. During the period of my

industrial attachment, I actually participated in the field audit of Global

Scansystems Limited and King & George Nigerian Limited. I was also involved in

the handling of tax matters of two companies, namely: Global Scansystems Ltd

and Damagix Nigerian Limited. I also assisted in carrying out administrative

duties in the audit firm such as filing, typing and printing of documents as well as

attending to guests, clients, etc in the absence of the receptionist.

5.2 CONCLUSION

The compulsory supervised student industrial work experience scheme (SIWES)

gives students the opportunity to apply knowledge gained in the university to real

work environment, exposing students to practical work methods not taught in the

university as well as assessing students’ interest in the occupations they plan to

undertake in future. The program should, therefore, be sustained and the period

extended.

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5.3 RECOMMENDATIONS

5.3.1 Recommendations to the Students

I. Students should attach significant importance to industrial attachment as it

enables them to blend academic work with that of the industry.

II. Students should exhibit good character and conduct at their various places

of industrial attachment in order not to tarnish the image of the university.

Furthermore, if the students live up to expectation, their employers would

be encouraged to give opportunities to other students to carry out their

industrial attachment in such organizations in future.

5.3.2 Recommendations to Employers

i. As part of their social responsibilities, organizations should be willing to

accept students to carry out industrial attachment in their establishment.

ii. Organizations accepting students for industrial attachment should ensure

that students are taken through some form of orientation/induction course

to enable them to have enough knowledge about the organization and the

functions they are expected to perform.

iii. Organizations accepting students for industrial attachment should provide

some motivational packages for the students such as allowance to cover

transport, lunch and incidentals.

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5.3.3 Recommendations to the University

i. Since the experience for these few months was enormous I recommend

that the program should be sustained and improved upon.

ii. Based on the students’ reports, the University should prepare a list

(database) of employers who offered students opportunities to serve in

their establishments. Students wishing to go for industrial attachment in

future might find the database useful in their search for organizations that

would be willing to accept them.

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