Question

I need a Journal Entry for two weeks of Accounting Internship. It can be any type of work done. Please more than 500 words

Answer 1

I had intern as an accountant for two weeks with a global consumer goods company. For the period of two weeks I assisted the managers in the accounting team to help them prepare few reports for the purpose of managerial accounting. It should be noted that managerial accounting is that branch or aspect of accounting in which accounting documents and reports are prepared for the purpose of enabling the management to make better decisions. The reports that I prepared were not meant for external stakeholders of the company but was meant for internal purpose, mainly to aid managers to take business decisions in a more objective manner.

For the first week I was completely involved in identifying, measuring, analyzing and interpreting different accounting related information. I did break even analysis for the different departments of the company and for the company on an overall basis. The company is present in the following segments – personal care products, wellness, home care and sanitation products and food and beverages. I did a break even analysis for all these departments individually and for the company as a whole.

Secondly I did a comprehensive margin analysis for the company and its different product divisions. I had to prepare margins like contribution margin, operation margin and net margin for the different types of products and then benchmark them against the industry standards. The industry margin figures were provided to me through a financial database called Bloomberg. I had to prepare a report to explain the differences in margins of the company and that of the industry. Of particular concern were the segments in which margins of the company was below the margin of the industry and I had to analyze both quantitative and qualitative reasons for this below par performance of my company in terms of margins.

In the second week I was given the task to analyze the internal controls at the organization and prepare a comprehensive report on the same. Internal control is a process which helps an organization achieve its objectives toward operational efficiency and effectiveness. Internal control helps in risk mitigation by detecting and preventing fraud. The components of the internal control process are: (1) The control Environment (2) Risk Assessment (3) Control activities (4) Information and Communication and (5) Monitoring. The control environment refers to the policies and practices as put in place by the top management of a company. The control environment consists of organizational structure, management’s philosophy, HR policies etc. Risk assessment involves identification and analysis of risks. Control activities refer to the policies and procedures that management has established to meet its objectives regarding financial reporting. Information and communication refer to the activities used to record and process an organization’s transactions. Monitoring is the last component of the internal control system. This involves periodic assessment of the quality of internal control process. If the quality is found to be lagging then modifications will have to be made in the internal control systems.

I determined the level of internal control for the organization by analyzing the various processes and functions being done at the organization. My report included suggestions that the organization could use to strengthen its level of internal control. I also reported the processes for which the internal controls were weak and hence had to be immediately reviewed. For instance in one process the clerk alone was recording inventory and I reported that as the clerk had no supervisor there was a problem of assignment of authority and responsibility, which is a part of the control environment component. There was no one above the level of clerk, who is responsible or has the authority to review the clerk’s work. The clerk had a free hand. The possible problem in this situation is that if the clerk lacks integrity and honesty, he is likely to commit a fraud, causing a loss to the physical asset of the company. I recommended the following solutions - a supervisor should be appointed for the clerk to verify all transactions and entries and HR should ensure that clerk and all other employees are honest and trustworthy.

(684 words)