Content of internship report

Chapter 1: introduction
1.1 background of the organization
1.2 vision, mission and the goals of organization
1.3 ownership, nature of type of business
1.4 structure of the organization
chapter 2: accounting and finance practice of the organization SWOT analysis of the organization
2.1 Accounting and finance practice of the organization

2.1.1 Accounting policy and accounting system used by organization

2.1.2 finals department structure and segregation of duties of organization
2.1.3 internal auditing practice of the organization
2.1.4 property administration practice of the organization
2.1.5 the soft wares are other modern technologies used by accountants of the organization
2.1.6 basic problem of the organization during implementation of accounting policies

2.2 SWOT analysis of the organization

2.2.1 strength of the organization
2.2.2 weakness of the organization
2.2.3 threat of organization
2.2.4 Opportunities of the organization

Chapter 3: Activities undertaken during internship

The report should contain in which area of activities students are assigned, the activities they perform
and the problems they face during their internship

Chapter four: Conclusion and Recommendation

4.1 Conclusion
4.2 recommendation
 CHAPTER: ONE
INTR0DUCTION
1.1 Background of the organization

Bank of Abyssinia, one of the private banks in our country was established on February 15, 1996
according to the Ethiopian commercial code of 1960 and licensing and supervision of banking business
proclamation no.84/1994. BOA started its operation with an authorized and paid-up capital of birr 50
million, and birr 17.8 million respectively and with only 131 shareholders and 32 staff.

Currently, employing of art banking technology the bank provides excellent domestic, international and
special banking service to its esteemed and valuable customers. It also strives to serve all economic

Into decades since its established Bank of Abyssinia has registered a significant growth in in paid up
capital and the total asset. It is also attracted money professional staff members. Valuable shareholders
and large customers from all work of life. This performance indicates public confidence in the bank and
reliability and re satisfaction in its service.

Currently employing the state of art banking technology the bank provided excellent domestic
international and special banking service to its streets to serve all economic and service sector via its
every increasing branch network throughout the country

1.2 Vision, mission, and the goals of organization

Vision: to become the leading commercial bank in East Africa, aiming to achieve this by providing
accessible financial services and boosting financial inclusion in Ethiopia.

Mission: To provide excellent financial services by growing its customer base and promoting financial
inclusion through innovative products and customer-focused approach.

Goals of the organization:

 Expand access to banking services for Ethiopians.

 Foster financial inclusion within the Ethiopian market.

 Develop and deliver innovative financial products.

 Strengthen customer loyalty through excellent service.

 Utilize technology to improve accessibility and efficiency.

1.3 ownership, nature of type of business

 1.4 Structure of the organization

Abyssinia bank district structure

district manager

Senior
operation Business
clerical Administrative
manager manager
Assistant

driver SBO officer IT officer HR Officer SBB officer

District manager:
- Leads the district and all branches under his supervision.
- Coordinates all staffs in district office and branch.
- Participate with restrict team in branch opening duties.
- Work with district team in recruiting potential customers.
- cascade Duties and responsibilities to district team and branches.
- Act as Chairperson of district loan approving committee.

Operational manager:

- Mainly focus on district and branch operational issues.

- Control district and branches expenses.
- Participate with district team in branch Opening duties.
- Follow up credit process and apparatus of district discretion limit.
- Work with district team in recruiting potential customers.
- Act as secretary and member of District Law and Approving Committee.

Business manager:
- Develop business activities of the district and branch.
- Communicate and flow up branch to achieve their plans.
- Participates with district team in branch opening duties.
- Work with district team Enrique Recruiting potential customers.
- Evaluate branch performance and appraisal
- Act as member of district loan approving committee.

HR Officer:

- Mainly focuses on recruitment of employees for branches under district

supervision.
- Create relation with HR operations and partnership department up on
arrangements of employees.
- Advertised vacant posts for internal employees using banks^portal.
- Forward vacant posts to HR operations and partnership departments for
external applicants to be advertised by outsource media channels.
- Arrange exam and interview seasons for internal and external applicants.

It officer
- Mainly focuses on information technology issues of branches under the district
authority.
- Give on the spot and remote helpdesk to branches.
- Transfer cases to information technology department if it is above discretion.
Senior banking operation officer: Hunters do these responsibilities given by operation
manager.
Senior banking officer: Handles duties and responsibilities given by business manager

chapter 2: accounting and finance practice of the organization SWOT analysis of the
organization
2.1 Accounting and finance practice of the organization
Banking accounting principles and practices form the backbone of financial stability and transparency in
the banking sector. These principles ensure that bank of Abyssinia can accurately report their financial
status, manage risks effectively, and comply with regulatory requirements.
Understanding these principles is crucial for stakeholders, including investors, regulators, and
customers, as they provide insights into a bank’s health and operational efficiency

The foundation of banking accounting lies in the principle of accrual accounting, which mandates that
transactions are recorded when they occur, not when cash is exchanged. This approach provides a more
accurate picture of Abyssinia bank’s financial position by recognizing revenues and expenses in the
period they are earned or incurred. For instance, interest income on loans is recorded as it accrues, even
if the payment is received later, ensuring that financial statements reflect the true economic activities of
the bank. Another fundamental principle is the concept of prudence, which requires the bank to
exercise caution when making estimates and judgments. This principle is particularly relevant in the
context of provisioning for potential loan losses. By adopting a conservative approach, bank of abyssinia
can avoid overestimating their financial health and ensure that they have sufficient reserves to cover
unexpected losses. This cautious stance helps maintain investor confidence and financial stability.

Transparency is also a cornerstone of banking accounting. Bank of abyssinia is required to provide clear
and comprehensive disclosures in their financial statements, enabling stakeholders to make informed
decisions. This includes detailed notes on the methodologies used for valuing assets and liabilities, as
well as explanations of any significant changes in accounting policies. Enhanced transparency fosters
trust and allows for better comparability across different financial institutions.

The matching principle is another key aspect, ensuring that expenses are recorded in the same period as
the revenues they help generate. This alignment provides a more accurate measure of abyssinia bank’s
profitability and operational efficiency. For example, the costs associated with generating loan interest
income, such as administrative expenses, are recorded in the same period as the interest income itself,
offering a clearer view of the bank’s performance.

2.1.1 Accounting policy and accounting system used by organization

An internship focused on accounting policies and systems used by abeysinia bank can provide valuable
insights into the financial sector.
 Understanding Accounting Policies:
o Regulatory Framework: Learn about accounting standards (IFRS, GAAP) and how they
apply to banking.
o Internal Policies: Study the bank’s specific accounting policies and how they align with
regulatory requirements.
 Accounting Systems:
o Software Familiarity: Gain experience with accounting software commonly used in
Abyssinia bank (e.g., SAP, Oracle Financial Services).
o Data Management: Understand how to manage financial data, including transaction
recording, reconciliation, and reporting.
 Financial Reporting:
o Statement Preparation: Assist in preparing financial statements, including balance
sheets, income statements, and cash flow statements.
 o Compliance Reporting: Learn how banks prepare reports for regulatory authorities and
ensure compliance with financial regulations.
 Internal Controls:
o Risk Assessment: Participate in evaluating the effectiveness of internal controls to
prevent fraud and ensure accurate reporting.
o Audit Support: Support internal and external audit processes by providing
documentation and data as needed.
 Research and Analysis:
o Market Analysis: Conduct research on current accounting trends and best practices in
the banking industry.
o Performance Metrics: Analyze financial performance metrics and contribute to reports
that assess the bank’s financial health.

2.1.2 finals department structure and segregation of duties of organization

Understanding the structure and segregation of duties of Abyssinia bank’s finance department is crucial
for ensuring effective internal controls and reducing the risk of fraud
Department Structure
 Chief Financial Officer (CFO):
o Overall responsibility for the bank’s financial strategy and management.
 Accounting Division:
o Financial Accounting: Prepares financial statements, handles general ledger activities,
and ensures compliance with accounting standards.
o Management Accounting: Focuses on budgeting, forecasting, and performance analysis
to aid management decision-making.
 Treasury Department:
o Manages the bank's liquidity, funding, and investment portfolios. Ensures that cash flow
meets operational needs.
 Financial Reporting Team:
o Prepares regulatory reports, ensures accuracy of financial information, and
communicates with external auditors.
 Risk Management Department:
o Assesses financial risks and ensures that adequate controls are in place to mitigate
them.
 Internal Audit:
o Conducts audits to evaluate the effectiveness of internal controls and compliance with
regulations.
Segregation of Duties (SoD)
Segregation of Duties is a key principle in internal controls, aimed at reducing the risk of error or fraud
by distributing tasks and responsibilities among different individuals
Transaction Processing:
o Initiation: One person initiates transactions (e.g., payment requests).
o Approval: A different individual must approve transactions, ensuring checks and
balances.
 Recording and Reconciliation:
o Recording: One team handles the entry of transactions into the accounting system.
 o Reconciliation: A separate team performs reconciliations to compare recorded amounts
with actual bank statements and balances.
 Reporting:
o Preparation: Financial statements and reports are prepared by one group.
o Review and Approval: Another group reviews and approves these reports before they
are finalized.
 Audit Trails:
o Maintain detailed records of who performed which tasks, providing transparency and
accountability.
Importance of Segregation of Duties
 Fraud Prevention: By requiring multiple approvals and oversight, the risk of fraudulent activities
is significantly reduced.
 Error Reduction: Distributing tasks helps minimize the likelihood of errors since no single person
is responsible for the entire process.
 Regulatory Compliance: Strong internal controls are necessary for compliance with banking
regulations and standards.

2.1.3 internal auditing practice of the organization

An internship focused on the internal auditing practices of a bank can provide a comprehensive
understanding of how to maintain compliance, manage risks, and ensure operational efficiency.
 Understanding Internal Audit Function:
o Role of Internal Audit: Learn how the internal audit department functions within the
bank, including its objectives, scope, and authority.
o Frameworks and Standards: Familiarize yourself with auditing standards (e.g., IIA
Standards) and frameworks that guide the internal audit process.
 Audit Planning:
o Risk Assessment: Participate in the risk assessment process to identify areas that
require audit focus based on factors like regulatory changes, operational risks, and past
audit findings.
o Audit Plans: Assist in developing annual audit plans that outline the schedule and scope
of audits.
 Conducting Audits:
o Fieldwork: Observe and assist in the execution of audit fieldwork, including testing
controls, reviewing documentation, and gathering evidence.
o Interviews: Engage with staff to understand processes and control environments.
 Reporting Findings:
o Drafting Reports: Help draft audit reports summarizing findings, conclusions, and
recommendations for improvement.
o Communication: Learn how to present findings to management and the board of
directors, emphasizing the importance of effective communication.
 Follow-Up and Monitoring:
o Action Plans: Understand how the bank develops action plans in response to audit
findings and how internal audit monitors the implementation of these plans.
o Continuous Monitoring: Explore methods used for ongoing monitoring of controls and
compliance.
 2.1.4 property administration practice of the organization
An internship focused on property administration practices in a bank can provide valuable insights into
how banks manage their real estate assets, including branches, ATMs, and investment properties
 Understanding Property Administration:
o Role of Property Administration: Learn about the functions of the property
administration team, which may include managing leases, overseeing property
maintenance, and ensuring compliance with regulations.
 Asset Management:
o Portfolio Management: Understand how the bank manages its real estate portfolio,
including tracking asset performance and maximizing value.
o Financial Analysis: Assist in analyzing the financial performance of properties, including
operating expenses, revenue generation, and return on investment.
 Lease Management:
o Lease Negotiations: Observe and participate in the process of negotiating lease
agreements for bank branches and other facilities.
o Compliance and Renewals: Learn how the team ensures compliance with lease terms
and manages renewals or terminations.
 Property Maintenance:
o Maintenance Oversight: Gain insights into how the bank manages maintenance and
repairs for its properties, including vendor selection and contract management.
o Sustainability Practices: Explore any sustainability initiatives the bank may have in place
regarding property management.
 Regulatory Compliance:
o Legal and Regulatory Requirements: Familiarize yourself with the legal and regulatory
framework governing property management in the banking sector.
o Risk Management: Learn how the bank assesses and mitigates risks associated with
property ownership and management.
 Reporting and Documentation:
o Record Keeping: Assist in maintaining accurate records of property transactions, leases,
and maintenance activities.
o Reporting: Help prepare reports for management on property performance, occupancy
rates, and maintenance costs.

2.1.5 the soft wares are other modern technologies used by accountants of the organization
An internship focused on the software and modern technologies used by accountants in a bank can
provide valuable insights into how technology enhances accounting practices.
 Accounting Software:
o Enterprise Resource Planning (ERP): Learn about ERP systems (e.g., SAP, Oracle) that
integrate various accounting functions and provide real-time data across departments.
o Financial Management Systems: Familiarize yourself with specialized financial
management software used for budgeting, forecasting, and reporting (e.g., Adaptive
Insights, Hyperion).
  Automation Tools:
o Robotic Process Automation (RPA): Understand how RPA is used to automate repetitive
tasks, such as data entry and reconciliations, improving efficiency and accuracy.
o Workflow Automation: Explore tools that streamline accounting workflows, reducing
manual intervention and speeding up processes.
 Data Analytics:
o Business Intelligence (BI) Tools: Learn how tools like Tableau or Power BI are used to
analyze financial data, create dashboards, and generate reports that help in decision-
making.
o Predictive Analytics: Understand how predictive modeling is employed to forecast
financial trends and assess risks.
 Cloud Computing:
o Cloud-Based Accounting Solutions: Familiarize yourself with cloud platforms (e.g.,
QuickBooks Online, Xero) that allow for real-time collaboration and remote access to
financial data.
o Security Considerations: Learn about the security measures in place to protect sensitive
financial data in cloud environments.
 Electronic Banking Technologies:
o Payment Processing Systems: Understand the software used for processing
transactions, including payment gateways and electronic fund transfers.
o Mobile Banking Applications: Explore the accounting functionalities within mobile
banking apps that enhance customer interactions.
 Regulatory Technology (RegTech):
o Compliance Software: Learn how technology helps banks ensure compliance with
regulations by automating reporting and monitoring requirements.
o Risk Management Tools: Familiarize yourself with software solutions that assess and
manage financial risks.

2.1.6 basic problem of the organization during implementation of accounting policies

An internship focused on the basic problems organizations face during the implementation of
accounting policies in a bank can provide valuable insights into the challenges and solutions in this area.
 Identifying Resistance to Change:
o Observing Employee Attitudes: Participate in meetings or training sessions to gauge
employee reactions to new policies.
o Conducting Surveys: Help design and distribute surveys to assess employee concerns or
resistance.
 Training and Development:
o Training Programs: Assist in the development or facilitation of training programs to
ensure employees understand the new policies.
o Skill Assessments: Participate in evaluating staff skills to identify training needs and
gaps.
 Regulatory Compliance:
o Understanding Regulations: Research relevant regulations and how they impact
accounting policies, helping to ensure compliance.
o Documenting Processes: Assist in creating clear documentation that outlines how
policies align with regulatory requirements.
  Integration Challenges:
o System Compatibility: Help assess existing systems to identify compatibility issues with
new policies.
o Data Migration: Participate in planning for data migration, ensuring accuracy and
completeness during the transition.
 Resource Allocation:
o Budgeting: Learn about budgeting processes related to implementing new policies and
the financial constraints involved.
o Staffing Needs: Analyze staffing requirements to support the rollout of new policies and
systems.
 Communication Strategies:
o Developing Communication Plans: Assist in creating communication materials that
clearly explain new policies to employees.
o Feedback Mechanisms: Help establish channels for employee feedback and questions
about the new policies.
 Monitoring and Compliance:
o Audit Preparation: Observe how the internal audit team prepares for monitoring
compliance with new policies.
o Developing KPIs: Assist in identifying key performance indicators to measure the
effectiveness of the new policies.
 Technology Utilization:
o Assessing Software Needs: Help evaluate existing software and tools to determine if
they meet the needs of new accounting policies.
o Security Measures: Learn about the cybersecurity protocols necessary when
implementing new technologies.

2.2 Swot analysis of the organization

2.2.1 strength of the organization
 Service that are safe and trustworthy and are adapted to the needs of clients
 It prioritized the public interest
 Decentralized working environment
 Innovative culture: It enables Abyssinia to create distinctive goods and services that satisfy the
needs of their clients
 Economies of scale up the cost benefit that Abyssinia bank achieves as a result of size; the bigger the
volume, the greater the benefit
 Technology; due to its superiority ,Abyssinia bank is better able to satisfy
 They are giving good banking service for their society.
 They are giving door to door cash collection and payment.
 They have good team spirit.
 The branch has committed Devoted, discipline it, skilled imployee who respect environmental
culture, norms and language of the society.
 2.2.2 weakness of the organization
 Lack of independently completing some work on team.
 Knowledge gap of stuff skills on bank product especially on digital product and new product of the
bank.
 Lack of good card handing and distributing to customer on time opportunity
 Lack of inebri some work on team therefore waiting for other.

2.2.3 threat of organization

 Increase in labor costs
 Lack of potential of the area especially on fey
 Growing competition
 External business risks
 Existence of money competent other banks and financial institution in the area.
 Lack of society understanding about the modern serving practice
 The society attitude perception toward bank service and serving habit

2.2.4 Opportunities of the organization

The level of income is steadily rising.
 Population grows
 New products and service
 Growing economy
They can achieve their customs base target by using environmental employees wereda office employees
town administration employees, and resources.
 Having large unblocked society in rural and urban areas of the area comparing with the total
population. Etc
 Existence of high cooperation and strong team spirit of the staff.
 Starting from the near time their banks have a good image in front of the public.
 The bank brand great custumes value, having large number of branches being influential financial
institution, and having committed staff is greater opportunity.
 They can use religious badgets Like church mosques etc…

Chapter 3: Activities undertaken during internship

The report should contain in which area of activities students are assigned, the activities they perform
and the problems they face during their internship
665

Chapter four: Conclusion and Recommendation

4.1 Conclusion

4.2 recommendation