Introduction
Studying accounting has been one of my interests since I was a child. Being in accounting classes was really enjoyable from the start. However, although studying the concept in class was interesting, I found it more thrilling to put to work some of the skills that I had learned. I was privileged to get an internship at PWC, one of the big four auditing firm, which I started on January 4th the year 2016. Through this internship, I was exposed to real-life accounting and auditing experiences which I had spent the last several years preparing. As such, this report details the lessons that I learned and the role that my training in accounting and business played in preparing me for such experiences.
Discussion: Lessons Learned
The first few days included an orientation and training on how to use various Information Communication Technologies that the firm uses to deliver its services. Through these activities, I appreciated two key lessons that I had extensively covered in schools namely information management systems and organization behavior. In organization behavior classes, I had learned of the importance of an organization culture. Through these activities, I managed to observe the importance that was detailed in class. First, I observed and affirmed that organization culture is vital in uniting the employees. Although the interns were from different demographic backgrounds, within the first few days, we had developed a great understanding amongst us which was promoted through the shared vision of the organization which had been insisted during the orientation day. Therefore, in order to promote the shared vision, the firm has developed a comprehensive code of conduct which gives direction to the organization thus enabling every employee to remain on task. As a result, each employee is fully aware of their roles and the expectation that the organization has on them (Kummerow and Neil 361). The ability of the employee to fulfill their responsibilities drives the firm to the desired direction which is achieving the shared vision since each employee plays their part. Second, to achieve a shared vision, the firm needs to promote effective communication and define the acceptable behavior within the organization thus limiting instances of conflict and unhealthy competition among employees that could damage the spirit of teamwork. As a result, this created the necessary environment for the employee to coordinate and cooperate with each other in order to realize the shared vision. The code of conduct details the employer expectation in relation to acceptable behavior, therefore, fostering good working relationship between the senior personnel and their juniors and the relationship among junior staff. In addition, the firm embraces office diversity thus offering an integrated environment for all to function.
In Information management systems, I covered various information systems and their importance. However, the classes were limited only to the theoretical perspective. However, upon joining PWC, I interacted with the system in a practical perspective. During the first few days, we were trained on using the firm’s database where we covered aspects in updating the database and querying the database. In addition to the interacting with the PWC database, I had the chance to interact with one of PWC client database where I managed to appreciate theoretical lessons taught in designing databases based on the needs of the users through observing various similarities and differences between the PWC database and the Client database.
While in school, the auditing class covered lessons on compliance with regulatory requirements that are set out. A similar lesson is taught in business ethics and financial reporting classes. However, the specific of compliance are not detailed in these classes. The internship enabled me to appreciate the details of compliance in relation to public limited companies. According to securities and exchange act, all publically trading firm are expected to file form 10-K with the commission. In The Southwest energy audit engagement, my team allowed me to fill up this form which I successfully filled. In this engagement, I carried some research on the process of filling this form where I learned about the duration the form must be filled for the three sets of filers namely large accelerated filers, accelerated filers and all other registrants. Also, I learned that the form must be filed in accordance with the provision of Rule 13a-10 (17 CFR240.13a-10). In addition, when the firm has changed its fiscal year, the firm will file the form in accordance to rule 15d-10 (17 CFR 240.15d-10) (Securities and Exchange Commission n.pag). Further lessons include the application of general rules and regulation in relation to this form, the disclosure in relation to foreign subsidiaries, information relating to employee stock purchase, saving and any other similar plan and integrated report to security holders among other lessons. I also had the chance to audit and correct Paragon Offshore form 10-K as per the partners comment. In addition, I further examined various energy firms to identify their biggest sources of revenues. The activity helped me understand the power in the information found in this form and how various firms complied with the provisions required to file this form.
Undertaking research is another key area that was developed during my internship. In school, we covered various research methods and various paradigms to analyze data. We also covered various methods of gathering information and collecting data. As we carried out the audit on Paragon Offshore, the partner overseeing the audit instructed me to carry out an analysis on various energy firms to identify their largest sources of revenue by examining their form 10-K. The task enabled me to collect relevant data and know how to siphon such specific information from such a large pool of facts relating to a company. In addition, through the interaction with the team members, I learned that through the data collected from form 10-K, PWC will use it in conjunction with other information collected through other means to advise Paragon Offshore on how it is fairing compared to its peers thus assist in improving on Paragon Offshore performance. As such, I appreciated that not only do audit firms offer audit services to their clients but also offer non-audit services such as business advisory and strategy formulation (Charles 13). PWC further enhanced my skills to carry out desktop research. On the 8th week, I was not assigned to any task. However, in the office, I joined a team that was working on a marketing strategy. I was assigned to research and identify various firms that had relocated to Texas, get their CEO names, contacts information, and these firm’s revenues in the previous year then identify any opportunity which could be available to PWC. I came to appreciate the role of ICT in research since I gathered so much information while still seated in the office. Furthermore, through following the marketing project keenly, I learned how to reach out to a potential client through writing and business meeting. As such, I observed the theory covered in communication class and more so on persuasion tactics being applied in a real life situation.
While studying accounting, the course exposes the learner to other subjects other than bookkeeping and auditing process. Accountants are often informed that they should always add value to the decision that the management makes. As such, an accountant should carry out analysis that informs the management on the direction the firm has taken in relation to financial measures and how the accountant foresees the firm performing in the future (Harris and Marco 310). While working on Paragon Offshore, I was involved in developing a financial model for the firm’s balance sheet and income statement for the next five years. The activity put to task various classes I had attended including financial analysis, economics, and financial accounting. Financial modeling requires a thorough understanding of financial accounting since one must understand the component of financial statements. Also, modeling requires the modeler to fully understand the firm’s historical performance which will be used to project the future thus requiring sufficient understanding of financial analysis class. Finally, projecting the future does not only use the past values but examines both the macro and micro-economic environment to see how these factors will affect the firm performance and growth (Sengupta 13). The activity helped me to appreciate the importance of including other non-accounting subjects in the accounting degree thus I appreciated that there are some tasks that require interdisciplinary knowledge to be achieved. In addition, since the forecast was made using a spreadsheet, it became clear how such tools are useful in analyzing information through the use of inbuilt advanced functions that I never thought existed in spreadsheets. I also understood why some employers insist on thorough knowledge of spreadsheets.
In audit classes, we covered the two tests that are used in audit evidence gathering namely the test of controls and substantive testing. In relation to the test of controls, I did not undertake any test of control. However, I observed the experienced auditors undertake this task. On the other hand, when I was working on The Southwest Energy Corporation, I was involved in substantive analytical procedures of accrued interest payable and interest expense account. I was further involved in gathering evidence on all liability and cash account components of the balance sheet. Also, when working with Shell Corporation, I gathered audit evidence on the firm’s payroll and pensions. Further, I conducted flux analysis and lead schedule on Shell. Also, while still working on Shell Corporation, I was involved in drafting the document that the auditor will use in giving the audit opinion. While at it, I interacted with the senior auditors and observed how the audit opinion is generated after weighing the audit evidence gathered. Also, when drafting the opinion document, I learned how the audit firm limits their party liability that could arise from the audit opinion given.
In school, financial accounting classes insisted on the requirement to always adhere to accounting standards. In the US, the said standards are the GAAPs. However, due to the convergence in accounting standards, some firms in the US have started adopting the IFRS. However, during my internship, I never came across a firm using IFRS. As such, most of my experience was in firms that use the US GAAPs thus I appreciated their interpretation and application. However, I felt academia should have an increased focus on standard application as well.
Other skills acquired include networking, community service, teamwork, fair competition, time management, report writing, brainstorming and professionalism among others. The skills are vital in ensuring growth and development as an auditor since my interests are pursuing a career in public accounting. Although some may be taught in school, I realized that for one to succeed, accounting skills alone is not sufficient. One needs people skills in order to complement their skills.
Impact of the internship on Academic Work
The internship has helped me appreciate the theoretical work that I have covered in accounting classes. As such, it has made it clear for me to see the role of academia in practice. School trains on the larger framework that governs practice. As such, through practice, I have managed to acquire the nitty gritty details that I would never cover in school. For instance, school teaches one to exercise professional skepticism while undertaking audit work. However, practice gives you the opportunity to exercise just the right amount of skepticism that will enable me to exercise the necessary due care and also deter me from witch hunt in the name of professional skepticism.
I had the privilege to work for one of the best audit firm in the world. As such, I had a world class on the job training on how to integrate the theoretical skills amassed in school with real world experiences. In addition, my team treated me as one of them and allocated me challenging tasks that allowed me to think and apply my skills. I felt I was part of the team as opposed to a mere observer. The internship was fulfilling and exceeds my expectation.
Works Cited
Charles H. Gibson. Financial Reporting and Analysis: Using Financial Accounting Information. Cincinnati, OH: South-Western College Pub., 2001. Print.
Harris, Peter James and Marco Mongiello. Accounting and Financial Management. New Yolk: McGill, 2006. Print.
Kummerow, Elizabeth, and Neil Kirby. Organizational Culture: Concept, Context, and Measurement. New Jersey: World Scientific, 2014. Print.
Securities and Exchange Commission. "united states securities and exchange commission Washington, D.C. 20549 form 10-k annual report pursuant to section 13 or 15(d) of the securities exchange act of 1934 general instructions." securities and exchange commission. Web. Apr. 2016.
Sengupta, Chandan. Financial Modeling: Using Excel and VBA. Hoboken, NJ: Wiley, 2004. Print.
