internship report jp park joint stock company

INTERNSHIP REPORT JP PARK JOINT STOCK COMPANY

Lecturer & Tutor: Do Thi Van Anh

Hanoi, 2021

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To Hanoi University specially Faculty of Management and Tourism for offering me internship course;

To JP Park JSC’s director Mr Hoang Van Quang for giving me a chance to do internship at his company and prepare this report within the scheduled time;

To General Accountant Mrs Tran Thi Hanh who is taken over as a coach during my internship She had the kindness to accept me in her department and guide me through my internship with advice and feedback despite her busy schedule;

To the two Japanese experts who are Mr Hoshito Yukizawa, Mr Nonoichi Yoshiro for their support and constant supervision which contributed immensely to my personal development Owing to their guidance which was a remarkable force that enabled me to successfully complete the internship program They aided and coached me during my internship by giving me feedback and tips on how to handle and approach situations; To the rest of JP Park JSC staffs for their co- operation and support during the past 6 months when I work with them to collect information preparing for this report

Last but not least, special thanks to all my friends for sharing their experiences, time and commitment particularly during finishing this internship program I am grateful because I have lots of friends who were always stand by my side to assist and support me throughout the course of completing the internship program.

I— Introductfion 1 About JP Park JSC

JP Park JSC (Nippon Kenchiku Kaisha) is a leading company in designing and constructing Japanese gardens with artisans, experts and senior advisors from Japan The firm was established on March 30, 2016 with the enterprise code 0109148170 and approved by the Enterprise Registration Certification of Vietnam Currently the company has | branch located in Ishikawa (Japan) and 2 branches located in Vietnam: Hanoi and Ho Chi Minh City The construction process is directly carried out by Japanese artisans with very strict principles and requirements in their work to ensure the maximum quality of stone, stone lamps, Japanese plants, and Koi fish JP Park has completed many domestic and international projects, such as: Japanese Garden at Vinhome

Riverside Ha Noi, Ciputra Westlake Hanoi, Nam Cuong Villas and Sen River Bac Ninh

MONEE 2o¢er Rezne: HES

JP Park's operations are built on a team of professional and experienced architects and Japanese experts Currently, JP Park has a team of more than 100 staffs (outsource an insource) graduating from domestic and foreign Universities Including:

- 3 Japanese experts: Especially, Mr.Nonoichi, president of the Ishikawa Prefectural Horticultural Association, received the Order of the Emperor of Japan on July 2, 2016

- 9 Masters specialized in economics, accounting, finance,

- All employees are professional and well trained by the company 3 Mission and Core value

As the economy thrives, the requirement for quality of life becomes more urgent than ever! Especially in the current living environment when the green area is getting smaller and smaller JP Park Group Company was born with the mission of "bringing" the best quality living space With a long-term vision and perspective of sustainable development JP Park Group with high quality staff are always encouraged to leverage their experiences and strengths to perform the best quality of services possible to exceed the client’s expectation

The core valued of JP Park Group is reflected through three words:

Passion: We have a tireless ambition to be the best We will help you grow as a business, to develop and carve out success All members of JP Park Group, from leaders to employees, have the responsibility to constantly learn and accumulate experience to improve themselves and their brands, thereby affirming and enhancing Vietnamese brands in the world

Quality: JP Park Group provides synchronous services from design consultation to product selection in accordance with the decoration style We have a professional construction team, committed to ensuring the best progress and quality with high technology

Ethics: JP Park Group takes ethics as the foundation Every member of the company must be

ethical in all actions Be virtuous in all circumstances.

JP Park Group specializes in providing design and installation services of high-class furniture for

Villas, hotels, apartments, offices, With JP Park, not only providing the functions of using

products but also to meet the overall solution in terms of aesthetics, class, luxury, elegance but still ensure the cost factor

4.3 JPTECH

A field of outstanding technology application in agriculture! A solution for our country's agricultural industry The JP TECH team has researched and launched a hydroponic plant system that can increase productivity without much land and care Especially the demand for clean food sources for big cities But with JP TECH now it is no longer a problem

With the desire to bring to the community the best solutions to serve their lives In any field, JP Park GROUP is committed to always being creative and constantly learning to help the community improve its own quality of life

5 Competitors

Nowadays, there are several landscape garden design companies competing with JP Park in Vietnam, which gain significant market share due to long-time operations and outstanding features For example, LASC — Phan Hoang Gia company, Green Garden company, LSS JSC, that are all reputative and strong competitors

6 Organizational chart

General Director, the top management, is in charge of monitoring and supervising whole system is Mr Hoang Van Quang Following are the heads of departments who are responsible for the daily operation with different functions There are 05 departments such as Marketing,

Accounting, Construction, Designing, and Human Resources.

II - Plan of internship program

As an enthusiast of Japanese culture and an accounting student, I chose a company specializing in construction and Japanese garden design to participate in the internship After researching the market and applying, I was fortunate to be accepted into JP Park Group company My internship prolonged for about six months from January 2021 to June 2021 In my internship tenure I have

performed different works there I have tried my best to enhance my ability and apply the

knowledge that I gained during studies

When I start my Internship session it was the peak season for PKF firm, because it was the fiscal financial year ending of most companies that were client of PKF On my first day at firm, Mr Hiep gave me training session about the Vietnamese legal documents system which include Decree 132/ND-CP prescribing tax administration for enterprises having related-party

transactions specifically, about deductible and non-deductible of affiliate companies and some of

substantial circular such as Circular 200/2014/TT-BTC guiding the corporate accounting system, Circular 78/2014/TT-BTC guiding the corporate income tax, Circular 219/2013/TT-BTC guiding the value added tax, Circular 48/2019/TT-BTC providing guidance on making and settlement of

provisions for devaluation of inventory, losses of financial investments, bad debts and warranty at

enterprises, etc From there he instructed applying these circulars into real case of each client On the next day, we were trained by Mr Ngai on how to examine physically the cash, fixed assets and inventories on the last day of fiscal year Through the training session, he shared his practical experience with us and gave us some techniques of this process He also guided us developing relations with customers, and facing them in all this audit period

During the period of my internship, I preformed the different tasks in different areas of the PKF Co which are the following:

1 The audit process; 2 The audited reports and;

3, The preparation of the audited financial statements IIT — Major Assignments

I started my internship as junior trainee My three months training enabled me learn a lot about accounting, taxation, auditing, management consultancy and corporate affairs Although three

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months is very short period to learn everything and to get perfect in the art of accounting and auditing, working at PKF Co gave me a golden opportunity to learn some valuable things not only about auditing and accounting but also about Corporate Law and Income Tax My work at the firm made my concepts of accounting and auditing very clear The guidance of my colleagues and working papers system of the firm was very helpful and they provided all necessary

information to me

During my internship, I have to follow steps which were directed to me from my supervisor I have different tasks as well as various items in the financial statements to perform which are cash,

receivables, payables, taxes, etc

Some of the responsibilities and duties are for example as the following: 1 North import-export branch

Time to participate in the fieldwork: From January 21, 2021 to January 23, 2021

Location: No 11B Cat Linh, Dong Da District, Hanoi City

The items are assigned during the audit process:

- Cash and cash equivalent: accounts 111, 112, 113, 128

- With Held-to-maturity Investment: I have collected loan contracts, comparing opening and closing balances, estimating loan interest, and classifying short-term and long-term investments;

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- With Financial income and Other income: I have checked reciprocal accounts of 515 and 711

accounts for any arising abnormal account, then analyze the fluctuations between months to

assess unusual fluctuations Additionally, I have inspected liquidation documents with the invoice and tax declaration

2 Thang Loi Hotel Joint Stock Company

Participation period: From February 25, 2021 to February 27, 2021 Location: No 200, Yen Phu, Yen Phu ward, Tay Ho district, Hanoi

The tasks assigned in the audit process:

- Receivables: accounts 131, 138 - Property warranty: accounts 229, 244

- Taxation part: accounts 133, 333

- Payable’s portion: accounts 331, 335, 336, 334 - Operating expenses: accounts 641, 242

Experience gained: During the audit at the Company, I was assigned to audit the above components I was assigned by Mr Ninh to the similar accounts delivered to previous customers Hence, I have been doing the same procedures In addition, there are some new parts:

- With Account receivables: I have compared the opening balance with the audit report of the

previous year, made a confirmation letter, re-evaluated the amounts denominated in foreign currencies, checked cut off and collected payment vouchers after the year end date Since this is

a new practice, I do not have the ability to complete the assigned tasks well, I need to ask everyone in the team about the needed audit procedures then I can have a chance to do it in the

future and with other customers

- With Account payables: I have compared the beginning of the period with the audit report of the previous year and making a confirmation letter

- With Statutory obligations: I have compared the output tax and the input tax arising in the year

on the declaration with the books, thereby identifying the difference

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- With Accrual expenses: I have compared the opening balance, recalculated the prepaid expense allocation sheet, whether the costs are hanging on account 242 or not or the expenses have been fully allocated but still amortization continues during the period, instruments have been classified correctly or in assets, comparing closing balance with the residual value on the account 242 amortization table

3 Truong Son Investment and Construction Joint Stock Company

Participation period: From March 1, 2021 to March 5, 2021

Location: Chau Son Industrial zone, Chau Son ward, Phu Ly city, Ha Nam province

The tasks assigned in the audit process:

- The part of money operation: includes accounts 111, 112 - Advance part: Account 141

- Part of expense: including accounts 641, 642

- Tax section: 133, 333

Experience gained: During the audit at the Company, I was assigned to audit the above components I have somewhat better understood the actual audit process through the above audits Hence, I have been doing the same procedures In addition, there are some new components:

- For the advance payment, I have checked the balance, made a confirmation letter, checked some details in detail, checked whether the deadline for the refund is in accordance with the financial

regulations of the unit or not

- For the expense section: I checked the invoice to see whether my expenses are classified correctly and also check in details all transactions with cash payments of more than 20 million VND spent through the bank and in accordance with the financial regulations of the business, transactions with large arising transactions related to selling and administrative expenses

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4, Translation year-end report into English

In addition, I also took part in translating the Vietnamese audited financial statements into English

version followed to the PKF existing format Obviously, I have learnt new Vietnamese charter of

account by heart I translated step by step each statement in Microsoft Excel I have attached an example of translated the income statement in appendix

IV — Organizational Analysis

1 SWOT analysis 1.1 Strength Management

Generally, PKF Vietnam has built a concrete management system, departments are closely linked with each other under the leadership of Board of Directors helping the company operation effective and efficient significantly

All tasks and duties are clearly and logically divided by departments and divisions The staff are

recruited with high degree of specialization which help the working progress smoothly accelerated, facilitating better performance when the size and type of customers increasing and diversifying by day Currently, PKF Vietnam has two main audit segments: Basic Construction Auditing and Financial Statements Auditing The first department is in charge of a professional director specializing in auditing finished construction works and construction items, and another department specializes in auditing financial statements of manufacturing, servicing and trading

companies, etc

In addition, the online management structure assists the company’s leaders to quickly grasp the company's operations in the period, as well as the current situation that needs to be overcome However, this type of management is only suitable when the company’s scale is not large because there are not many departments PKF’s leadership style is aimed at encouraging working morale, rather than managing with strict regulations, promoting high working efficiency of the whole employees

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Human resources and personnel management

PKF Vietnam always respects the principle that human resources are the decisive factor for the existence, success or failure of the company Consequently, the leaders always pay attention to training and develop skills and experiences for employees in the company The company has established its own Board of Control and Training Committee, in which training is focused on enhancing the qualifications of employees Accordingly, human resource training programs, new major updates, internal seminars are regularly held and the higher-level personnel are significantly experienced in the field of auditing, financial, accounting and consulting The company also focuses on recruiting new personnel, encouraging young employees to have enthusiastic and a desire to have a long-term commitment to the audit profession, especially graduates of accounting and auditing majors belonging specializing universities Moreover, PKF is also on the way to building relationships with universities in Hanoi to ensure resources and labor quality which is considered a new step in the human resources and personnel training of the

company Last but not least, the Board of Directors also facilitates time for staff to learn and

cultivate experience from professional certificates CPA, ACCA, or even Master's program, etc and also give them advance to pay the whole fee

Audit organization

The company follows a certain working paper process which brings the effectiveness and high quality to the audit procedure Regarding performing audits, PKF always closely complies with the Vietnamese Auditing Standards as well as the International Auditing Standards The development of the audit plan and the design of the audit program are done separately, but also ensure a close relationship in which the former results are optimize to save time consuming and insignificant costs incurred and simultaneously create the completed audit plan

The audit program is designed and drafted according to the company's templates In which, working steps are detailed for different items After collecting the necessary information, the auditor will perform the audit program which aids auditors orient what steps to do and ensure the accuracy and consistence of audit process Working papers presented in order from general to detailed, from conclusions to specific audit evidence In each audit profile, the summary page is always in the first place, followed by the audit conclusion page - the audit program - the auditor's

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working papers, and the final document collected from customers It is convenient for users and the auditor to review the problems by a smart arrangement of working papers

In terms of audit documents, PKF Vietnam always go through a set of rules in the audit report preparation and issuing process, including: a comprehensive review of the auditor, board of management, and board of quality; the approval of new audit contract; the commitment to independence; a review of the content of the audit report; approvals for release, review, preparation and archival of audit reports and management letters; accounting and auditing staff development assessment

Reviewing the audit report before being released to ensure the quality of the report Auditors always fully comply with the regulations on the process as well as procedures for reviewing the audit report before being issued

1.2 Weaknesses

Organization and management

A fairly significant limitation to the management organization at PKF Vietnam currently focus

mainly on the stage of customer searching They are mostly old customers and maintained over the years, the number of new customers annually is not really much, and most of them are contracts taken by BOD members

Personnel assignment and employee remuneration

The allocation in the audit team is always ensured in the most reasonable way On the other hand,

due to the current situation of the increasing on new clients while the company's auditors’ human resources have not yet met Thus, there are substantial limitations in arranging the appropriate number of auditors for each job because auditing time for customers are consecutive and persistent

Although there are lots of incentive to attract, maintain stability in human resources and

constantly improve the quality through supplementary courses However, the salary and bonus regime for employees is still underpaid and needs to be raised to match with their performance In terms of conditions for sponsorship and training of professional certificates, it clearly requires

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employees to adhere with the company for at least 2 years, making employees less likely to interest This issue makes contribution to increase the company turnover, etc

Audit program

As mentioned above, the audit teams of PKF Vietnam are still using the existing audit program which bring certain pros, but it also gives rise of the lack of flexibility when auditing specific customer As a consequence, auditors need to adjust necessary procedures to match with the

nature characteristics of the business Furthermore, due to cost and time constraints, PKF

Vietnam has not been able to design a separate audit program for each client in different industries contributing to inevitable obstacles and time-consuming in collecting audit evidence and lower the effectiveness of the audit procedure

Collecting customer information

Accessing and collecting client business information are crucial job with auditing companies

However, due to the time constraints, for traditional clients, PKF Vietnam auditors often rely on

the previous audit records in the prior year, hence they do not focus on collecting additional information in the press, etc Correspondingly, the auditor may omit some important information

that can affect the audit results

1.3 Opportunities

According Foreign Investment Department (Ministry of Planning and Investment), it is estimated that in the first 3 months of 2021 (temporarily as of March 20, 2021), the total foreign direct

investment (FDI) has reached $ 10,13 billion, increased by 18.5% over the same period in 2020

(Hoang, 2021) Consequently, the auditing sector in general and PKF Vietnam specifically will have such great opportunities to attract more potential clients Compared to other local competitors, PKF has more comparative advantages as a franchise brand giving them more chance getting the contracts in the market Additionally, more and more company intend to be listed and capitalized which need assurance service, bringing a great deal of contracts accompanying with revenue for PKF Vietnam

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1.4 Threats

It is expected that the Revolution 4.0 can be affect to the whole enterprise especially small and

medium one like PKF Vietnam In terms of analysis tool, when KPMG and Deloitte have used a

predictive analytics tool to analyze a huge volume of accounting data, helping to quickly localize and focus on analyzing data areas, PKF Vietnam are still use sampling method as the traditional way This technology helps to increase the quality of the audit, while reducing the execution time by dozens of times Moreover, another big4 PwC is also using robotic process automation for its

audit work which can be done automatically by robots about 45% of the work, saving about $2

trillion globally (CUC, 2020) It is urgent that PKF Vietnam should invest and apply new hitechno in their system otherwise they can not keep pace with other players

2 Operational problems

Operational process plays a crucial role in an audit company The implementation of efficient and effective procedure has several advantages including an appropriate price to the client or even an increase in sales revenue As I mentioned in the above part, PKF Vietnam currently gets into trouble on how to ultimate human resource effectively in each hands-on job Through several direct interview with official staffs, I have realized that they are struggling with the problem of applying the whole working process for each job assigned Because of limitation on price of small and medium enterprises, they have not enough of time and effort for all procedure of working papers regarding these companies and tend to skip certain parts In fact, with the small old customers, they usually optimize the prior reports with some updated information which can reduce time The reason why they react like this is that the working paper system does not work effectively where they do not have a good plan to carry out such items in the financial statements

Furthermore, PKF’s system is mostly worked manually on Excel which are actually time

consuming More than that, when other big4 companies are currently implementing and upgrading to high-tech system where machinery and equipment solve significant tasks It is

undeniable that we are in 4.0 revolution and turning to 5.0 soon, we cannot take advantage of

such traditional and conventional on the whole system like the present one In my perspective, PKF should invest and learn more from other companies regarding technology which help them keeping pace with the world current situation generally, does not obsolete and working more productive

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3 Suggested solution

Company management

Due to limitations in the number of customers together, establishing a department specializing in media, image promotion, customer search and acquisition is essential to improving the company's business performance If the company cannot open a separated marketing department, it can attract clients indirectly via its staffs by creating a remuneration policy that encourages each employee in the company to find customers, thereby earning commissions for every contract that

they are the middleman

Personnel assignment and employee remuneration

Due to the limited number of auditors, the company encountered many difficulties in allocating personnel for audits Moreover, the company has a plan to expand consulting services in the coming time, thus it is necessary to have a plan to recruit and train a new auditor to meet the actual needs of the company, ensuring both quantity and quality Concurrently, the company also needs to promote regular training, improve the expertise and professional ethics for auditors’ team

It is essential to improve the quality of auditor in an auditing company, thus PKF Vietnam need to pay more attention on human resources The relocation of experienced employees and certified

auditors is a prolonged problem for the company Although for every year, the company has new

recruits to fill the human shortage, but this is only a temporary solution Because auditing is a job that requires experience and professional so that although newcomers are capable, they still camnot meet the all-job requirements To tackle this situation, the company should have a policy

of remuneration for worthy employees, especially those who have a lot of contributions to the

company

Income plays as an indispensable factor in human resource because it is associated with the direct benefit of employees Moreover, it also becomes a competitive advantage in attracting employees within other auditing companies Therefore, the Company should have a reasonable and fair

salary policy for all employees The salary payment must be consider basing on the working

capacity, contribution level and working time of each person 16