A REPORT OF INTERNSHIP TRAINING AT RITS &

ASSOCIATES , CHENNAI

Submitted in partial fulfilment of the

requirements for the award of the degree of

BACHELOR OF COMMERCE

By
EMMANUEL S

(Register No: 1801721036133)

DEPARTMENT OF COMMERCE (SHIFT - II)

MADRAS CHRISTIAN COLLEGE
(AUTONOMOUS) TAMBARAM, CHENNAI – 600
059

February-2021
 DECLARATION

I hereby declare that the internship report entitled “A REPORT OF INTERNSHIP

TRAINING AT RITS & ASSOCIATES , CHENNAI”

is an original work done by me in partial fulfilment of the requirement for the awarding
of the degree of Bachelor of Commerce under the guidance of Prof. D. Jhansi,
Department of Commerce (Shift – II), Madras Christian College, Tambaram, Chennai-
600 059, and the same has not been submitted elsewhere for the award of any degree.

Place:

Chennai

Date:

( EMMANUEL S )
 CERTIFICATE

This is to certify that the internship report entitled “A REPORT OF INTERNSHIP

TRAINING AT RITS & ASSOCIATES, CHENNAI” is a

record of personal work done by MR.EMMANUEL a student of Bachelor of
Commerce (Shift – II), Madras Christian College, Chennai 600 059, during the period of her
study in the academic year 2020-2021. This internship report represents entirely an
independent work of the candidate under my supervision and guidance.

Place:

Chennai

Date:

SIGNATURE OF INTERNSHIP ADVISOR

Place:

Chennai

Date:

SIGNATURE OF EXTERNAL EXAMINER

ACKNOWLEDGEMENT

I first and foremost wish to express my profound thanks to our honourable Principal
P.WILSON for providing me an opportunity to study in this distinguished institute.

I extend my thanks to our most respected Director (Self-financed stream) DR. D.

ROOP SINGH for his constant support and encouragement.

I then wish to extend my sincere thanks to the respectable Head of the Department
DR. NIRMALA MOHAN as her constant encouragement proved a source of unparalleled
inspiration.

I express deep gratitude to my internship advisor PROF. D. JHANSI for the proper
guidance and constant support to carry out this internship report. Her guidance helped me to
overcome all the hurdles. Without her support and help this work could not have been
completed.

My sincere thanks to the officers of RITS & ASSOCIATES , CHENNAI for

allowing me to undergo internship training.

Above all, I thank God Almighty for showering upon me His grace and blessings.

( EMMANUEL S)
 TABLE OF CONTENTS

.
S.NO CONTENTS PAGE NO.

1 CHAPTER – I
7-20
History of auditing

2 CHAPTER – II
21-27
Profile of the firm

3 CHAPTER – III
28-30
Learning Experience

4 CHAPTER – IV
31-53
Consolidation of Reports

5 CHAPTER – V
54-55
Conclusion

6 Bibliography 56-57

CHAPTER 1
HISTORY OF AUDITING
 8

HISTORY OF AUDITING
INTRODUCTION

The term audit is derived from the Latin term ‘audire,’ which means to hear. In early days a person
used to listen to the accounts read over by an accountant in order to check them. He was known as
auditor. Auditing is as old as accounting and there are signs of its existence in all ancient cultures
such as Mesopotamia, Greece, Egypt. Rome, U.K. and India. Kautilya detailed rules for accounting
and auditing of public finances.

Audit is performed to ascertain the validity and reliability of information. Examination of books of
accounts with supporting vouchers and documents in order to detect and prevent error and fraud is
the main function of auditing. The goal of an audit is to express an opinion on the financial or non-
financial areas. Audit safeguards the financial interest of persons not associated with the management
like partners or shareholders, acts as a moral check on the employees and prevents from committing
fraud. However, due to constraints, an audit seeks to provide only reasonable assurance that the
statements are free from material error. In case of financial audit, a set of financial statements are
said to be true and fair when they are free of material misstatements. But recently, argument that
auditing should go beyond just true and fair is gaining momentum in view of recent frauds by high
profile organizations in connivance with the reputed audit firms.

Traditionally, audits were mainly associated with gaining information about financial systems and the
financial records of a company or a business. However, recently auditing has begun to include non-
financial subject areas, such as safety, security, information systems performance, and environmental
concerns. With non-profit organizations and government agencies, there has been an increasing need
for performance audit, examining their success in satisfying mission objectives of business.

ORIGIN OF AUDITING

The word “AUDIT” has Latin origins (audio, audire, means listening). During the time
this word has known a lot of definitions and classifications. In general, it is a synonym to
control, check, inspect, and revise.

Auditing existed primarily as a method to maintain governmental accountancy, and

record-keeping was its mainstay.

From the time of ancient Egyptians, Greeks, and Romans, the practice of auditing the
accounts of public institutions existed.
 9

Checking clerks were appointed in those days to check the public accounts. To locate
frauds as well as to find out whether the receipts and payments are properly recorded by
the person responsible was the main objective of auditing of those days.

It wasn’t until the advent of the Industrial Revolution, from 1750 to 1850, that auditing
began its evolution into a field of fraud detection and financial accountability.

Businesses expanded during this period and brought in large scale production, steam
power, improved facilities and better means of communication. This resulted in the origin
of the joint-stock form of organizations.

Shareholders contribute to the capital of these companies but do not have control over the
day to day working of the organization.

Management was hired to operate businesses in the owners’ absences, but the
shareholders who have invested their money would naturally be interested in knowing the
financial position of the company.

So they found an increasing need to monitor their financial activities, both for accuracy
and fraud prevention.

Definition of 'Audit'
Definition: Audit is the examination or inspection of various books of accounts by an auditor
followed by physical checking of inventory to make sure that all departments are following
documented system of recording transactions. It is done to ascertain the accuracy of financial
statements provided by the organisation.

Description: Audit can be done internally by employees or heads of a particular department

and externally by an outside firm or an independent auditor. The idea is to check and verify
the accounts by an independent authority to ensure that all books of accounts are done in a
fair manner and there is no misrepresentation or fraud that is being conducted.

All the public listed firms have to get their accounts audited by an independent auditor before
they declare their results for any quarter.

Who can perform an audit? In India, chartered accountants from ICAI or The Institute of
Chartered Accountants of India can do independent audits of any organisation. CPA or
Certified Public Accountant conducts audits in USA.
 10

There are four main steps in the auditing process. The first one is to define the auditor’s role
and the terms of engagement which is usually in the form of a letter which is duly signed by
the client.

The second step is to plan the audit which would include details of deadlines and the
departments the auditor would cover. Is it a single department or whole organisation which
the auditor would be covering. The audit could last a day or even a week depending upon the
nature of the audit.

The next important step is compiling the information from the audit. When an auditor audits
the accounts or inspects key financial statements of a company, the findings are usually put
out in a report or compiled in a systematic manner.

The last and most important element of an audit is reporting the result. The results are
documented in the auditor’s report.

HISTORY OF AUDITING IN THE WORLD

Earlier practices of auditing though not well documented present proof for the existence
of auditing. Auditing was found to be present in the ancient civilization of China, Egypt
and Greece in the form of ancient checking activities. The checking activities found in
ancient Greece appear to be closest to the present day auditing.

The first recorded auditors were the spies of king Darius of ancient Persia (522 to 486
B.C.). These auditors acted as “the King’s ears” checking on the behaviour of provincial
satraps (a provincial governor in ancient Persia).

In 1494 Luca Pacioli published the book on double entry bookkeeping system of
accounting used by merchants in Venice, Italy. This was the first book on accounting.

Earlier practices of auditing though not well documented present proof for the existence
of auditing. Auditing was found to be present in the ancient civilization of China, Egypt
and Greece in the form of ancient checking activities. The checking activities found in
ancient Greece appear to be closest to the present day auditing.

The first recorded auditors were the spies of king Darius of ancient Persia (522 to 486
B.C.). These auditors acted as “the King’s ears” checking on the behaviour of provincial
satraps (a provincial governor in ancient Persia).

In 1494 Luca Pacioli published the book on double entry bookkeeping system of
accounting used by merchants in Venice, Italy. This was the first book on accounting.
 1
Earlier practices of auditing though not well documented present proof for the existence
1
of auditing. Auditing was found to be present in the ancient civilization of China, Egypt
and Greece in the form of ancient checking activities. The checking activities found in
ancient Greece appear to be closest to the present day auditing.

The first recorded auditors were the spies of king Darius of ancient Persia (522 to 486
B.C.). These auditors acted as “the King’s ears” checking on the behaviour of provincial
satraps (a provincial governor in ancient Persia).

In 1494 Luca Pacioli published the book on double entry bookkeeping system of
accounting used by merchants in Venice, Italy. This was the first book on accounting.

HISTORY OF BANKING IN INDIA

The evolution of India's present-day accounting system can be traced back

to as early as the sixteenth century with India's trade links to Europe and central
Asia through the historic silk route. Earlier Indian accounting practices reflect its
diversity as India has many official languages and scores of dialects spread over
numerous states. 1857: The first ever Companies Act in India legislated. 1866:
Law relating to maintenance of accounts and audit thereof introduced. Formal
qualification as auditor was now required. 1913: New Companies Act enacted.
Books of accounts required to be maintained specified. Formal qualifications to
act as auditor were named and a Certificate from the local government was
required to act as an auditor – An unrestricted Certificate to act as auditor
throughout British India and a restricted Certificate to act as auditor only within
the Province concerned and in the languages specified in the certificate. 1918:
Government Diploma in Accounting (GDA) was launched in Mumbai. On
completion of articleship of 3 years under an approved accountant and passing of
the Qualifying examination, the candidate would become eligible for the grant of
an Unrestricted Certificate. 1920: The issue of Restricted Certificates
discontinued. 1930: Register of Accountants to be maintained by the Government
of India to exercise control over the members in practice. Those whose names
found entry here were called Registered Accountants (RA). The Governor
General in Council replaced the local government as the statutory authority to
grant certificates to persons entitling them to act as auditors. Auditors were
allowed to practice throughout India. 1932:
 12
First Accountancy Board was formed. The Board was to advise the
Governor General in Council on matters relating to accountancy and to assist him
in maintaining standards of qualification and conduct required of auditors. 1933:
First examination held by the Indian Accountancy Board. GDAs were exempted
from taking the test. 1935: The first Final examination was held. GDAs were
exempted from taking the test. 1943: GDA was abolished. 1948: Expert
Committee formed to examine the scheme of an autonomous association of
accountants in India. 1949: The Chartered Accountants Act, 1949 passed on 1st
May. The term Chartered Accountant came to be used in place of Indian
Registered Accountants. The Chartered Accountants Act was brought into effect
on 1st July and The Institute of Chartered Accountants of India (ICAI) was born
on 1st July 1949. 4.2 The ICAI, being the premier standard-setting body in India,
constituted Accounting Standard Board (the ‘ASB’) on April 21, 1977, with the
objective to formulate Accounting Standards to enable the Council of ICAI to
establish a sound and robust financial reporting standards framework in India.

TYPES OF AUDITING

1) Internal audit
As the name suggests this type of audit is performed to determine the internal activities of
the company and is carried out by internal or external stakeholders. It is an independent
process which may or may not be reported to the management. The main function of
internal audit is to determine whether or not the internal functions are working properly.

A special investigation, fraud, complaint, or operational review are a few things that are
covered by the internal audit. The general report of internal audit contains an opinion on
feedback along with the list of findings during auditing and its implications on the
working. The final part of internal audit contains recommendations for the findings that
could help benefit the organization. Post-approval from the management the steps may be
applied in the company.

2) External Audit
When an external form is employed to perform auditing, it is known as an external audit.
Services like tax, legal, consulting and sales audit may be performed by external firms.
 It is one of the most common types of audit found in many firms. To stay neutral13 and
unbiased, many companies conduct external audits with third party firms.

Deloitte Ernst and young are renowned names of external auditors. Use of external forms
is very common in large multinationals. The firms follow international standards of
auditing very strictly and maintain a professional code throughout the auditing procedure.
It is ensured that the firm works independently from the client so that if a conflict of
interest of cause proper procedure and action can be taken to change or withdraw the
auditing procedure. External auditors may not stick to external auditing only but some
may offer services for internal auditing also. External auditing is considered to be more
professional when internal auditing. Also, the chances of biased audits are less in case of
external auditing.

3) Forensic Audit
This is a specialized type of audit which is performed by a forensic accountant who is
killed in investigation and accounting both. This is specially used in the cases where
investigations of the report may be used in the court. Forensic auditing acts as proof in
that particular subject matter and hence in this auditing is to be done by specialized
accountant only.

The reason for auditing could be anything from fraud to crime or insurance claims or even
a dispute between internal or external stakeholders. Forensic auditing needs to have a
proper planning and execution while following the ethical guidelines of the finances very
strictly. It is not a very popular method of auditing in case of financial statements are of
statutory audit going to the large costs involved. Forensic auditing may only be used in
the cases where it is been made mandatory to perform it.
 1
4
4) Statutory Audit
The auditing that is required by law for local authority about particular financial
statements for a specific type of entities is called statutory audit. The common examples
of statutory auditing are the that all banks’ financial statements are required to be audited
my proper audit firms which are approved by Central Bank. Statutory audit is conducted
only after approval by higher authorities and for the submission to official authorities.

5) Tax Audit

Tax auditing is performed by a tax department of government or designated tax authority.

The tax auditing may be performed as a consequence of a complaint found by the
government or any other whistleblower. The organization need not interact with the tax
authority since the tax auditing is initiated by themselves and the reports and findings are
submitted directly to the government.

6) Information Technology Audit

This audit is performed to check the reliability of security systems and security structures.
This has become very important since most of the transactions are carried out using
information technology. Right from ATM machines to Internet banking where a large
amount of money is transferred via computer auditing of information technology is
crucial for every financial organization. Most of the organizations provide both IT Audit
and financial audit.

7) Environmental Audit
The main objective behind performing an environmental audit is to determine the
resource viability in the environment and how does the large corporation manage it. An
environmental audit is usually done by Lord corporation or nonprofit organization for the
government that is public sector. It ensures that the environment is not damaged beyond a
certain limit because of the organization.
 1
5
8) Compliance audit
It is one of the types of audit that is performed to check the workings of internal policies
and procedures and their compliance with the prescribed laws and regulations is called a
compliance audit. The primary purpose of the audit is to check the correctness of the
internal policies against the standards prescribed by the government or the governing
body in a particular organization.

9) Value for Money Audit

When it comes to determining effectiveness economy and efficiency value for
money audit is the way to check if the resources that are purchased are at good quality
with low cost. If the materials that have been prepared are at the best cost and the best
available material in terms of quality is the objective of value for money audit.

10) Review of Financial Statements

This is a negative engagement in which auditors are engaged to review and report the
financial statements of an organization. In the end, the auditor’s do not express whether
the financial statements are true and correct or not.

11) Financial audit

The analysis for the fairness and correctness of the information which is there in the
financial statements is called financial audit which is also one of the important types of
audit conducted by any firm. It is conducted by a designated CPA firm which is more
often than not an external firm does not have any relation with the organization to be
reviewed.

Financial audits are conducted to know the financial stability of the organization
especially the ones which are in the public domain. this kind of audit is necessarily added
by the government if they find falsification of any kind in the reports. Financial auditing
is also carried out to determine the external stakeholders about the financial viability of
the organization. Financial audit for carried out based on the procedures laid by GAAP.

12) Operational Audit

A detailed analysis and studying of the goals the processes and procedures and the results
that the process will yield is called operational audit. This kind of audit may be conducted
by internal or external auditing from but the intention behind the operational audit is only
to improve the efficiency buy validating the operational steps. The report consists of a
recommendation for steps of improvement that the firm should take in order to
improve operational efficiency.
 1
6
13) Sales Audit
Knowing about the sales processes the man management target reviewing and stock
evaluation comes under sales auditing. Sales audit is performed to determine the nature of
sales that is been brought the number of targets that have been given along with the output
per employee from the sales team.

Sales auditing is very important for the organization to determine whether or not the sales
practice that is being carried out currently is working or not and how could it be
improved. Sales auditing helps in addressing hindrances in Sales processes and tends to
improve profits of the organization and hence it usually performed by external auditors
rather than internal auditors.

The above were all the different types of audit that a business firm uses. Audits help the
company improve and also help the company follow a set protocol. Hence, regular
auditing and regularly acting on the results of the audits is important for the company.
Depending on which department is weak, you can accordingly conduct one of the many
types of audits mentioned above.

FUNCTIONS OF AUDITING
Following are the important functions of audit :
1. Study The Accounting System :-
It is the basic function of auditing. In order to determine the nature, timing and extent of
the audit procedures auditor should study the accounting system.
2. Internal Control System :-
It is a process which determines that management policies are carried out according the
accounting principles. This system is very useful to safeguard the interest of the
enterprise. The auditor determines the effectiveness of this system.
3. Vouching :-
This function is essential to determine the accuracy of accounting record. Through audit
those documents can be checked which support and prove the business transactions. All
entries in books of accounts are made on the basis of relevant vouchers.
4. Verification Of Assets :-
It is the function of auditing that it should verify the assets of the business. It is concerned
with the determination of value, ownership and possession of business asset. The auditor
can check the existence of asset.
5. Legal Requirement :-
It is the function of auditing to verify that statements are prepared under the legal
requirements or not. There are various laws like company and income tax ordinance
which are introduced by the govt.
6. Liabilities Verification :-
The liabilities of the business can be verified from the books of accounts. The auditor can
write a letter to the creditors for the verification of liabilities. The auditor must receive the
certificate from the management in this regard.
7. Capital And Revenue :- 17
Auditing should make difference between capital and revenue items. The capital items are
compared to note the financial position of the business. The revenue items are compared
to determine the income. The income and expenses related to many years can be divided
in current and coming year.
8. Valuation Of Liabilities :-
Through auditing value of liabilities can be checked from the books of accounts and other
papers. The auditor can also confirm the value from outside sources. The value of
liabilities is given in the balance sheet by the management but it is the function of
auditing which confirms this value.
9. Valuation Of Assets :-
management gives the value of assets and auditor can apply the accounting principles to
assess the value of assets. The auditor critically examines and takes help from the expert.
10. Reporting :-
Auditing important function is reporting. Auditor is an independent person and it is his
duty to submit his report in writing. If he is satisfied he can present clean report otherwise
he can give qualified report.

GRANTING LICENSES TO AUDITING

Software companies like Microsoft, Adobe, SAP, and Salesforce regularly

conduct audits on companies of all sizes, and interestingly enough it’s more
common than you may think. A recent IBSMA survey revealed small companies
are experiencing more software audits than ever, an increase of almost 40
percent since 2015. With this in mind, here are 6 simple ways to stay prepared
with a few software license management best practices.

1. Implement IT asset management to audit where you stand

The best way to prepare for a software license audit is by actually having an IT
asset management solution in place to add visibility to what’s going on within
your organization’s technology infrastructure. If you’re not aware of how many
licenses you currently have available (and who has one), the process of manually
determining how many you may need in the future can get messy.

2. Detect unauthorized software to remove

While there are numerous benefits of asset management and discovery, one of
them is the ability to view any unauthorized software titles on your network.
Various software publishers police unauthorized use of software, which can pose
a major problem for organizations. It’s not uncommon for the Business Software
Alliance (BSA) to impose fines in excess of $100,000 per infraction on behalf of
companies like Microsoft or Adobe if unauthorized software is found.
 1
3. Know how many licenses you have available 8

Even if you do not have any illegally installed software floating around, you still
need to know how many licenses you have in use across the many products and
subscriptions your team likely uses. With a software license management
solution, you can quickly collect and analyze all the software licenses being used
across your organization. If a software license compliance gap is detected, you’ll
have visibility into how many licenses are missing and can take action to
resolve it – either through license reallocation or by purchasing new licenses.

4. Be proactive with vendor contracts

Staying up-to-date with your vendor contracts is another safeguard for ensuring
you are proactive with what your renewal needs are. Even if you are on auto-
renewal, it’s a good idea to have a policy in place to review where your current
subscription stands and where your needs may change. Another benefit of
software license management software is the ability to view unused licenses in
order to make better forecasting decisions once you have a better understanding
of your existing asset needs. Similarly, if you are planning to add members to
your team and notice a potential shortage of licenses, you can avoid license
sharing by increasing your subscription level ahead of time.

5. Keep good records of your data and subscriptions

Odds are that your organization will be the subject of an audit at some point,
which is why it’s best to have a plan in place ahead of time to help make the
entire process a little less stressful. Having easy access to asset reporting is a
good first step, as well as any documentation you need. It’s also a good idea to
back up your data, including any vendor contracts you have on file that
document your current subscription level, for example.

6. Seek legal counsel before handing over information

If you do receive a letter or notice regarding a software audit, an important
first step is to run everything by your company’s legal team before taking
any action.

The RBI grants license to banks for carrying its business. License is also
given for opening extension counters, new branches, even to close down existing
branches.
 19

AUDITING TERMINOLOGIES

Audit:

An audit is “systematic” because it is an orderly, planned, and methodical activity. It is

“independent” because it is conducted by impartial and objective auditors that do not
audit their own work.
An audit is a “documented” process because management system standards require a
documented audit procedure. An audit gathers “evidence” as proof of conformity or
nonconformity.
Audit evidence is evaluated “objectively” based on the facts, not hearsay or opinion. The
evidence is compared to the “criteria”, the applicable requirements, to determine if the
criteria is being met.

Criteria:
The audit criteria are the policies, procedures, or requirements used as a reference
against which audit evidence is compared.

Evidence:

The audit evidence includes the records, statements of fact, or other information which
are relevant to the audit criteria and verifiable.
In my auditing classes, I discuss the “scales of conformity”. On one scale are the
applicable requirements for the area being audited. The other scale contains the different
types of evidence. The auditor’s job is to compare the evidence to the requirements to
determine if the audit criteria are being met or not.
To help the students remember the types of evidence and the different categories of
requirements, I devised two acronyms: DOoRS and LOCkS.

DOoRS represents the forms of evidence:

D = Documents
O = Observations
R = Records
S = Statements
 2
LOCkS represents the types of requirements: 0

L = Legal
O = Organization
C = Customer
S = Standard

These acronyms will help you consider all the applicable requirements and different
forms of evidence when assessing processes for conformity.

Findings:

Audit findings are the results of the evaluation of the collected audit evidence against
audit criteria.
After comparing evidence to the applicable requirements, an auditor may find a process to
be either conforming or nonconforming, or perhaps, an opportunity for improvement.
Unfortunately, auditors often report nonconformities as “findings” when they should say
“nonconformities”.

Conclusion:

The audit conclusion is the outcome of an audit provided by the audit team after
consideration of the audit objectives and all audit findings.
For internal audits, the “conclusion” may be the degree of conformity by functional areas
or standard clauses, or by the types of nonconformity, e.g., failure of intent,
implementation, or effectiveness.
For a third-party audit, the “conclusion” may be expressed as a recommendation for
certification or not.

Client:

The audit client is the organization or person requesting an audit.

Auditee:
The auditee is the organization being audited.

Auditor:
The auditor is a person with the demonstrated personal attributes and competence to
conduct an audit.
Audits are carried out on behalf of a client on an auditee by an auditor.
 2
Program: 1
The audit program is a set of one or more audits planned for a specific timeframe and
directed towards a specific purpose.
An audit program includes all the activities necessary for planning, organizing, and
conducting audits. The program typically includes an annual schedule of audits.

Plan:
The audit plan is the description of the activities and arrangements for an audit.
An audit plan typically includes the agenda for a specific audit within the overall audit
program.

Scope:
The audit scope is the extent and boundaries of an audit.
The audit scope generally includes the physical locations (where), the organizational units
(who), the products, projects, or processes (what), and the time period (when).
Other few other audit terms not defined in ISO 9000:2005 are described below:

Sample:
The audit sample is the random selection of people to interview, activities to observe,
documents to review, and records to examine as a representation of the whole
management system. Based on the uncertainty introduced by sampling, an audit report
may include a disclaimer such as:
“This audit was based on random samples during a relatively brief period of time and
every aspect of the management system was not necessarily covered. Therefore,
nonconformities may exist which have not been identified in this report.”

Objectives:
Audit objectives define what is to be accomplished by the audit. Audit objectives
typically include determining conformity, evaluating effectiveness, and identifying
opportunities for improvement.

Report:
An audit report is a record of the objectives, scope, criteria, findings, and conclusions for
an audit.
 CHAPTER 2

PROFILE OF THE FIRM

 RITS & ASSOCIATES, Chartered Accountants, was established in 2004 which was
designated as "V.SAISELVAM & Co" . The Firm has 6 Partners and a team of about
25 persons. Team RITS consists of qualified, semi-qualified chartered accountants,
cost accountants, company secretary, lawyers, engineers, Article assistant, paid
assistant and others, who are technically competent, well trained, vigorously
incentivized and have in-depth cognizance and opulent experience.

The Firm is predicated at Chennai (Head office) the capital of Tamil Nadu, India. It has
an astronomically immense office premises, spread over two floors, consisting of
state-of-the-art infrastructure. The firm has invested in a well equipped Library,
which ascertains that the staff is abreast of all changes and developments in the
pertinent domain of the vocation. It operates in a consummate computerized
environment.

SERVICES

• Direct Taxation

• Indirect Taxation(Goods & Services Tax (GST) /CUSTOMS)

• Import / Export (customs)

• Project Consultancy services

• Project Loan & Other Loans

• Internal Audit

• Management Consultancy

• Internal Control System Audit

RITS & ASSOCIATES provides excellent articleship training to the students

 Has 6 partners

 Branches in all over Tamilnadu

 Well equipped library

 Reading room Facility

 Excellent infrastructure

 Working hours as per ICAI rules & regulations

 Handsome pay-package

Taxation service

• Filling of Income tax return for individuals, firms/LLP, companies, trust or HUF

• To obtain Permanent Account Number (PAN) and TAN number online/offline.

• Tax Planning/Specific advice on taxation

• Rectification, revision or appeal of income tax orders.

• Representation before Income Tax Authority for Scrutiny Cases.

• Income tax Appeals before CIT (Appeals) and ITAT

• To follow up income tax refunds.

• To get the clearance certificate for going abroad

• Consultancy in TDS matters

• Certificate for claiming Export exemption

• Advance tax computation

• Designing / restructuring salary structure to minimize tax burden

• Providing regular updates on amendments, circulars, notifications & judgments

• Special expertise in search, seizure and prosecution litigation

• Opinions on the various double tax avoidance agreement related issues

• Other Compliances as per Income Tax Act.

For Non-Resident Indians (NRI)

• Regulations as to Operating bank accounts, repatriation of Income earned in India and

Special RBI schemes for returning NRIs.

• Regulations as to investments in shares and debentures, mutual funds, government

securities and bank deposits and its taxation.

• Procedure for purchase and sale of immovable properties in india and renting them out.

• Procedure to file the return of income and obtain tax exemption certificate and PAN

• Replies to any queries on Indian Taxation, FEMA and RBI Procedures and Approvals.

• Obtaining Permission for repatriation of assets/income and assistance in compliance of

repatriation procedures.

• Inheritance of assets by NRI from residents in India and Non Residents.

• Tax Treaties

• Establishment of Branch Office In India and outside India

• Taxation of NRIs carrying on business in india and outside india.

• Advance Rulings

• Issuance of securities in india.

• Investment advisory services in india in shares, securities, mutual funds and properties.

• Opening and operating banking accounts and any specific schemes for NRI.

GOODS AND SERVICES TAX (GST)

A. Central Goods and Services Tax (CGST)

B. Integrated Goods and Services Tax (IGST)
C. State Goods and Services Tax (SGST)

Services

• Registration of assessees/ Tax Planning

• Disclosures and submissions to Department

• Compliance of procedural aspects

• Computation of monthly/ quarterly payment of tax/ duties

• Return verification / filing of returns

• GST review and audit/ Special Audit

• Review of systems and procedure before Departmental audit

• Assistance during Departmental audit

• Opinions/ Clarifications

• Transaction planning and structuring

• Guidance on understanding of effect of budget/recent changes on activities

• Filing of Refund claims of GST

• Departmental representation

• Assessment

• Reply to Show Cause Notice (SCN)

• Representation before Adjudicating Authority

• Drafting of representation at Appellate Forums

• Facilitation to Advocates at High Court/ Supreme Court

• Other related Services

Import-Export (Customs)

• Registration of Exporter/Importer

• Obtaining IEC Number from Regional Licensing Authority

• Customs BIN ( Business Identification Number )

• Registration With Export Promotion Councils ( Only for Exporters )

• Setting up of the most suitable type of business.

• Decision on the mode and type of operations.

• Naming the business

• Selecting channels of distribution

• Negotiating and explaining risks in international trade

• Processing an export order ( i.e entering into an export contract : export documentation )

• Obtaining Export Finance

• Foreign Collaborations and Joint Ventures

• Arranging Finance for exports

• Advising on availing of financial incentives.

• Advising on availing of fiscal incentives and special schemes

Auditing Services

• Statutory Audit

• Tax Audit

• Internal, Management and Operational Audit

• Concurrent Audit

• Income and Expenditure Audit

• Bank Audit

• Stock and Debtors Audit

• Revenue Audit

• Certification Work

• Physical verification of fixed Fixed Assets

• Audit of PF trusts, charitable trusts and schools

• Audit of co-operative societies

• Information System Audit

• Special Audits - Investigations and Fraud Detection.

• Audit of Bank Borrowers ( Non-Corporate Entities )

 PROFILE OF THE BRANCH

NAME OF THE FIRM : RITS AND ASOCIATES

NAME OF THE BRANCH : ANNA NAGAR BRANCH

NAME OF THE MANAGER : MR. MATHI

NUMBER OF STAFF : 30
IFSC CODE : IOBA0001447

MICR CODE : 60002007

ADDRESS : No. 16/148,3rd Floor,V.V. Koil

street, Thiruvalleswarar Nagar, Thirumangalam,Chennai - 600 040
DISTRICT : CHENNAI
STATE : TAMIL NADU
PHONE NUMBER : 044 – 49526946
 CHAPTER 3

LEARNING EXPERIENCE
 LEARNING EXPERIENCE

The intern started his internship training in RITS AND ASSOCOATES

located in anna nagar on 1st febuary 2021. The intern has got wider opportunities
to work and gain experience from the staff. 20 days of internship was split up into
three weeks and the intern worked in different departments. It was a great experience
to learn from all the people. During all this time, the intern had learned not only the
various aspects of finance but also most importantly, the intern could understand the
essence of right attitude and team work. Under the leadership and guidance of the
manager, the intern learned about various functions of each department, which is
explained in detail below:

FIRST WEEK

During the first week of training, the intern learned about the various auditing
processes and functions starting from the basic terms. The manager introduced the
intern to all the staff in the firm. The intern was asked to go through the history and
the major functions. The head of GST Department had taught the intern to update
the GST registers. The intern was taught to login the GST portal and segregating
the bills in each category.

SECOND WEEK

During the second week of internship, the intern had an opportunity to work in
the income tax department. The intern was asked to follow up with the Import Data
Processing and Monitoring System and write the name of each company/organization
who was dealing with the income tax into the register maintained. The intern was
taught that the primary responsibility of the companies is to submit the details of
Bills.
THIRD WEEK

During the third week of internship the intern was shifted to the
trading section. There the intern had learned about the stock markets and so on.
Also, the intern was taught how to fill the demat account. The intern helped the
staff in checking the value of the stock in vaious markets outside india. The
intern was asked to calculate profit or loss at the end of the day when stock
market closed .
 CHAPTER 4

CONSOLIDATION OF REPORTS
CHAPTER – 5
CONCLUSION
 CONCLUSION

The intern had successfully completed twenty days of internship at RITS AND ASSOCIATES
(CHARTERED ACCOUNTANTS), This training period served as a good platform as the intern
could learn about various auditing activities and the overall functioning of the auditing firm.
Welcoming staff and the space they had created provided the intern with full o p p o r t u n i t i e s
to learn a lot of things. The primary objective of this internship is to gather a real-life working
experience to put theoretical knowledge in practice.

The employees were so supportive and helped the intern in the learning process. It was a great
platform for the intern to understand the entire structure and working of Auditing institutions. The
intern understood that for working of any industry in a successful manner, satisfaction of customer
is of utmost importance

The intern could work in different department: Income tax and Goods and services which provided
a great exposure. The intern was able to acquire practical skills like tax deduction system, data
analysis and recording the books of accounts. In conclusion, this internship has given the intern new
insights and motivation to pursue a career in core finance department
BIBLOGRAPHY
 BIBLOGRAPHY

1. Meaning and definition of auditing

https://www.rcvacademy.com/auditing-introduction/

2. Origin and growth of auditing

https://www.iedunote.com/auditing-origin-evolution

3. History of auditing

https://www.oreilly.com/library/view/interpretation-and-
application/9781119973782/OEBPS/9781119973782_epub_ch_01.htm

4. Types of audit
https://naaa.gov.in/en-IN/history-IA-
AD.html#:~:text=History%20of%20Indian%20Audit%20%26%20Accounts,from%20the%2
0East%20India%20Company.&text=The%20detailed%20accounting%20functions%20were,
and%20Accounts%20Order%20of%201936

5. Profile of auditing firm

https://www.ritsca.com/